Report of The Auditor General 2016

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REPUBLIC OF GHANA

2016

REPORT OF THE
AUDITOR-GENERAL
THE PUBLIC ACCOUNTS OF GHANA
MINISTRIES, DEPARTMENT AND OTHER
AGENCIES (MDAs)
FOR THE FINANCIAL YEAR ENDED
31 DECEMBER 2016
This report has been prepared under Section 11
of the Audit Service Act, 2000 for presentation
to Parliament in accordance with
Section 20 of the Act.
Daniel Y. Domelevo
Auditor-General
Ghana Audit Service
7 August 2017

This report can be found on the Ghana Audit Service


website: www.ghaudit.org
For further information about the
Ghana Audit Service, please contact:
The Director, Communication Unit
Ghana Audit Service Headquarters
Post Office Box MB 96,
Accra.
Tel: 0302 664928/29/20
Fax: 0302 662493/675496
E-mail: [email protected]
Location: Ministries Block 'O'
© Ghana Audit Service 2017
TRANSMITTAL LETTER

Ref. No. AG./01/109/Vol.2/104

Office of the Auditor-General


Ministries Block ‘O’
P. O. Box M. 96
Accra

Tel. (0302)662493
Fax (0302)675496

7 August 2017

Dear Mr. Speaker,

SUBMISSION OF AUDITOR-GENERAL’S ANNUAL


REPORT ON THE PUBLIC ACCOUNTS OF GHANA,
MINISTRIES DEPARTMENTS AND OTHER
AGENCIES (MDAs)
FOR THE YEAR ENDED 31 DECEMBER 2016

The Article 187(2) of the 1992 Constitution empowers me


to carry out the audit of the Public Accounts of Ghana and
to report thereon to Parliament.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


i Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
2. Based on that mandate, it is my honour to submit
to the House of Parliament my report on the audit of
Ministries, Departments and Other Agencies (MDA’s) of
Central Government and the courts for the year ended
December 2016.

3. I humbly request that the report be laid before


Parliament for its consideration.

4. I extend my appreciation for the continued


support of the Public Accounts Committee of Parliament
and the House towards the review of my reports and the
discharge of my functions and responsibilities as the
Auditor-General of Ghana.
Yours Sincerely,

DANIEL YAW DOMELEVO


AUDITOR-GENERAL

THE RIGHT HONOURABLE SPEAKER


OFFICE OF PARLIAMENT
PARLIAMENT HOUSE
ACCRA
Annual Report of the Auditor-General on the Public Accounts of Ghana –
ii Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
TABLE OF CONTENTS

Page
Transmittal letter
Introduction 1
Audit objectives 2
PART I
Summary of irregularities 7
PART II
Summary of findings and recommendations by MDAs 15
PART III
Ministry of Finance 27
Ministry of Education 61
Ministry of Health 114
Ministry of Food and Agriculture 158
Ministry of Interior 174
Ministry of Youth and Sports 203
Ministry of Employment, Labour Relations, Youth
and Employment Agency 204
Ministry of Foreign Affairs and Regional Integration 215
Judicial Service 226
Ministry of Defence 243

Annual Report of the Auditor-General on the Public Accounts of Ghana –


iii Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Ministry of Trade and Industry 245
Ministry of Local Govt. and Rural Development 250
Ministry of Justice and Attorney General 260
Ministry of Water Resources, Works and Housing 266
Ministry of Roads and Highways 271
Ministry of Power 277
Ministry of Gender, children and Social Protection 279
Ministry of Chieftaincy and Traditional Affairs 281
Ministry of Information and National Orientation 282
Ministry of Tourism, Culture and Creative 284
Ministry of Lands and Natural Recourses 285
Other Agencies 292

Annual Report of the Auditor-General on the Public Accounts of Ghana –


iv Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
AUDITOR-GENERAL’S ANNUAL REPORT ON THE
PUBLIC ACCOUNTS OF GHANA, MINISTRIES
DEPARTMENTS AND OTHER AGENCIES (MDAs)
FOR THE YEAR ENDED 31 DECEMBER 2016

EXECUTIVE SUMMARY
Introduction
I have in accordance with Article 187(2) of the 1992
constitution conducted the audit of the accounts of the 22
Ministries and their Departments and Agencies for the
financial year ended 31 December 2016 and present
herewith the results of the audit. The report contains
significant issues and matters that I wish to bring to the
attention of the Parliament.

2. The audit was conducted in accordance with


international auditing standards and best practice noting
that the public financial management system of Ghana is
underpinned by relevant legislative and administrative
guidelines such as the Financial Administration Act 2003
(Act 654), the Financial Administration Regulations 2004,
the Public Procurement Act 2003 (Act 663), the Audit
Service Act 2000 (Act 584), the Stores Regulations of 1984

Annual Report of the Auditor-General on the Public Accounts of Ghana –


1 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
etc. and the accounting instructions of Department and
Agencies approved by the Controller and Accountant-
General in consultation with the Auditor-General.

Audit Objectives
3. The overall objective of the audit and reporting to
Parliament is to determine whether:
 Proper records and books of accounts were
maintained
 The accounts had been properly kept
 All public monies due had been fully
accounted for
 And rules and procedures applicable were
sufficient to ensure an effective check on the
assessment, collection and proper allocation of
the revenue.
 Monies had been expended for the purposes
for which they were appropriated and the
expenditures had been made as authorized.
 Programmes and activities had been
undertaken with due regard to economy,

Annual Report of the Auditor-General on the Public Accounts of Ghana –


2 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
efficiency and effectiveness in relation to the
resources utilized and results achieved

Scope
4. Based on the above objectives, internal control and
the Internal Audit functions were reviewed to assess the
risk associated with the management and utilisation of
public recourses to determine if there had been fairness
and integrity in administrative decision making and in
dealing with the stakeholders.

Audit approach
5. In preparing this report, it is necessary to establish
a certain background to the findings, conclusions and
recommendations that had been made in the report.

6. For the purpose of our audit we sought to


understand the cycle of financial control within the Public
Financial Management (PFM) system. The flow is that
Revenues are raised in the form of taxes grants, loans and
other finances and these are deposited in the Consolidated
Fund.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


3 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
7. Expenditures to be made from the revenue paid
into the Consolidated Fund are to be approved by
Parliament in an Appropriation Act; and without this
authority any expenditure made from the fund is
considered irregular and illegal.

8. The Government or Executive take the initiative to


prepare a national budget based on revenue expectations
and government policy direction for the year and presents
this to Parliament for approval.

Outcomes/Benefits expected
9. The following are general and relevant outcomes
or benefits to the audited entity and all stakeholders that
are expected to be associated with the audits.
 The audit leads to Accountability
 There is enforcement of financial discipline
 The audit leads to prevention of fraud, waste
and abuse
 The process promotes best practice

Annual Report of the Auditor-General on the Public Accounts of Ghana –


4 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
 The audit process assists in achieving good
governance and check or safeguard against loss
misuse and damage to properties.

10. However all instances of breach of financial


discipline and malfeasances could not be guaranteed as
identified in the audit process, although the audit
examination were planned and conducted to the extent
necessary for the effective performance of our work such
that there were reasonable chance that infractions would
be detected.

General comments on irregularities in the report


11. The irregularities represent either losses that had
been incurred by the State through the impropriety or lack
of probity in the actions and decisions of public officers or
on the other hand, the savings that could have been made,
if public officials and institutions had duly observed the
public financial management framework put in place to
guide their conduct and also safeguard national assets and
resources.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


5 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
12. I have therefore included in this report my
conclusions and recommendations intended to improve
and further deepen effective public financial management
and controls within MDAs.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


6 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PART 1

SUMMARY OF IRREGULARITIES
I have summarised the financial weaknesses and other
irregularities under seven broad categories as follows:
 Tax Irregularities
 Cash Irregularities
 Outstanding debts/loans
 Payroll Irregularities
 Contract Irregularities
 Rent payment Irregularities and
 Stores/Procurement Irregularities.

Audit Results
2. The overall financial impact of weaknesses and
irregularities identified in the course of my audit
amounted to GH¢2,165,542,375.14. A summary table is
provided below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


7 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Irregularity GH¢ US$ EURO UAE NAIRA SAUDI JAPAN TOTAL
ARD RYLS
(GH¢ (GH¢ (GH¢ (GH¢ (GH¢ (GH¢ (GH¢)
4.17760 4.3405) 1,1544) 72.93) 3.60) 0.0355)
Tax 42,478,111.05 92,110.00 825.00 42,866,490.70
Cash 1,986,825,425.57 1,024,711.80 30,544.74 1,075.00 855,370.00 2,053,622,215.68
Loans 1,823,656.70 675,651.50 4,825.00 59,502,706.00 6,775,974.47
Payroll 4,378,233.86 866.41 4,281,994.51
Stores/Pro- 35,940,445.43 35,940,445.43
curement
Rent 7,147,108.08 455,312.00 9,049,219.49
Contract 13,006,034.86 13,006,034.86

Total 2,091,599,015.55 2,247,785.30 32,236.15 1,075.00 855,370.00 4,825.00 59,502,706.00 2,165,542,375.14

Cash irregularities – GH¢2,053,622,215.68


3. Total cash irregularities noted during the period
amounted to GH¢2,053,622,215.68 which was 95% of the
total irregularities. These irregularities which cut across
MDAs were attributable to the underlisted incidences
among others:
 Unapproved/unjustified disbursement
 Dishonoured cheques
 Unaccounted revenue
 Unsupported payment vouchers
 Unauthorised transfers
 Funds to bank not credited
 Unpresented payment vouchers
 Payment of public funds into personal bank
accounts
 Belated/non-lodgement of public funds
 Unaccounted funds
 Misapplication of funds
 Unauthorised use of IGF

Annual Report of the Auditor-General on the Public Accounts of Ghana –


8 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
4. Included in the total cash irregularity of
GH¢2,053,622,215.68 was an amount of
GH¢1,561,434,333.31 which was withdrawn from the
petroleum revenue accounts without the knowledge of
TOR management.

5. I recommended that heads of MDAs should


continue to strengthen their controls over the collection
and disbursement of cash and other funds and ensure
strict adherence to the provisions of FAA, 2003 (Act 654)
and FAR, 2004 (LI 1802), etc.

Tax irregularities – GH¢42,866,490.70


6. Included in this tax irregularity was 100 registered
VAT traders who filed their returns at the MTO and STO
but owed a total of GH¢11,934,957.00 as at December 2015.

7. The irregularities could be traced mainly to failure


on the part of the Ghana Revenue Authority to collect tax
revenue and also apply measures and sanctions stipulated
in Sections 135(2) and 136 of the Internal Revenue Act,
2000 (Act 592) for tax administration.

8. I recommended that GRA management should


strengthen monitoring and supervision of the work of
subordinate staff and other schedule officers.
Management should also take steps to improve efficiency
in tax administration and collection and follow up on
Annual Report of the Auditor-General on the Public Accounts of Ghana –
9 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
overdue taxes while applying sanctions as prescribed by
the tax laws.

Stores/Procurement irregularities – GH¢35,940,445.43


9. Stores and procurement irregularities noted
during the period amounted to GH¢35,940,445.43.
Included in this irregularity was an amount of
GH¢23,450,000.49 involving procurement of 46,600 units
of Street lighting Lamps from Vision and Sports
Enterprise by the Ministry of Local Government, but was
not paid for after delivery on 18 July 2016.

10. These irregularities were due mainly to failure on


the part of MDAs to follow procurement procedures
prescribed in the Public Procurement Act by failing to
obtain required number of quotations, splitting of
procurement contracts and exceeding authorised
thresholds.

11. I recommended the strengthening of supervision


and monitoring by heads of MDAs as well as ensuring
strict compliance with the provisions of the Public
Procurement Act 2003, (Act 663) and other regulations.

Payroll irregularities – GH¢4,381,994.51


12. Payroll irregularities amounting to
GH¢4,381,994.51 was recorded during the period under
review. This was due mainly to payments of unearned

Annual Report of the Auditor-General on the Public Accounts of Ghana –


10 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
salaries to separated staff as a result of delays in deleting
their names from the payroll as well as delay in
transferring unclaimed pensions and salaries to
Government chest by the banks.

13. I recommended for the intensification and


coordination between Finance and Human Resource Units
within MDAs in their responsibility for payroll
management, prevention and recovery of unearned
salaries paid to unauthorised personnel.

Outstanding loans/debts – GH¢6,775,974.47


14. A significant amount of this irregularity of
GH¢6,775,974.47 was a support in the form of agricultural
inputs such as certified seeds, fertilizers, herbicides and
vehicles to motivate farmers expand their farms which the
farmers had failed to pay.

15. I recommended that stringent measures should be


taken to ensure total recovery of all outstanding
loans/debts.

Contract irregularities – GH¢13,006,034.86


16. Contract irregularities noted during the period
under review amounted to GH¢13,006,034.86 which
included GH¢12,476,152.86 as contract sum for six projects
awarded by Department of Urban Roads, Accra. It also
covered abandoned projects, delay in the execution,
Annual Report of the Auditor-General on the Public Accounts of Ghana –
11 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
shoddy constructional works and non-execution of works
after payment of mobilisation.

Rent irregularities – GH¢9,049,219.49


17. Out of the total irregularity of GH¢9,049,219.49, I
identified a total indebtedness of GH¢6,657,597.90 by
institutions and 18 individuals in respect of ground and
staff rent in the Sekondi Metropolis.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


12 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Ministry Tax Cash loans
Of GH¢ US$ EURO GH¢ US$ EURO UAE NAIRA GH¢ SR. JPY US$
AED
Finance 31,082,735.56 92,110.00 825.00 1,800,092,898.31
Education 63,621.44 1,830,780.25 9,265.00
Health 2,127,427.69 1,226,961.13 496,534.39
Food & Agric. 2,452.95 1,536,751.24 686,772.30
Interior 1,108.00 275,010.00 492,965.01
Youth & Sports 2,154.00 59,580.00 1,000,000.00

Employment 2,555.79 56,482,699.48


Foreign Affairs 12,629.00 30,544.74 1,075.00 855,370.00 4,825.00 59,502,706.00

Judicial 10,356.11 49,652,520.24 675,651.50


Service
Defence 21,881.00
Trade 2,115,129.17 4,380.00
Local Govt. 440,035.00
Justice & 68,944,512.64 232.80 10,100.00
Attorney Gen.
Petroleum
Water 915,403.90 11,850.00 42,940.00
Resources
Roads & 2,147,630.99 1,720,031.66
Highways
Power
Gender 6,739,602.53 238,023.40
Chieftaincy
Information 276,584.99
Tourism 19,467.00
Lands & 14,089.00
Natural Res.
Other Agencies 1,261,533.15 80,700.00
Total 42,478,111.05 92,110.00 825.00 1,986,825,425.57 1,024,711.80 30,544.74 1,075.00 855,370.00 1,823,656.70 4,825.00 59,502,706.00 675,651.50

Annual Report of the Auditor-General on the Public Accounts of Ghana –


13 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Ministry of Payroll Stores/Pro- Rent Contract GRAND TOTAL
curement
EURO GH¢ GH¢ GH¢ US GH¢ GH US$ EURO UAE AED NAIRA SA JPY

Finance 49,462.77 3,154,086.50 1,834,379,183.14 92,110.00 825.00


Education 33,375.00 3,611,020.33 89,649.00 5,637,711.02
Health 231,173.85 4,827,811.78 69,281.00 7,200.00 8,979,189.84 7,200.00
Food & Agric. 6,777.12 26,611.80 10,570.00 2,269,935.41
Interior 145,875.98 32,266.50 364,040.00 1,311,265.49
Youth & Sports 61,734.00 1,000,000.00
Employment 3,619,327.50 60,104,582.77
Foreign Affairs 866.41 12,629.00 31,411.15 1,075.00 855,370.00 4,825.00 59,502,706.00
Judicial Service 7,314.79 49,670,191.14
Defence 21,881.00 675,651.50
Trade 196,501.17 2,740.00 2,318,750.34
Local Govt. 23,470,985.49 23,911,020.49
Justice & Attorney 478,143.21 69,432,755.85 232.80
Gen.
Petroleum
Water Resources 448,112.00 958,343.90 459,962.00
Roads & Highways 53,045.07 12,916,385.86 16,837,093.58
Power
Gender 6,977,625.93
Chieftaincy 45,486.65 45,486.65
Information 276,584.99
Tourism 19,467.00
Lands & Natural Res. 28,078.46 12,135.00 6,657,597.90 6,711,900.36

Other Agencies 7,302.15 279,158.17 45,619.18 1,674,312.65


Total 866.41 4,378,233.86 35,940,445.43 7,147,108.08 455,312.00 13,006,034.86 2,091,599,015.55 2,247,785.30 32,236.15 1,075.00 855,370.00 4,825.00 59,502,706.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


14 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PART II

SUMMARY OF SIGNIFICANT FINDINGS AND


RECOMMENDATIONS
MINISTRY OF FINANCE
18. Controller and Accountant-General procured store
items to the tune of GH¢2,339,980.00 in excess of their
immediate requirement. These stores were likely to be
consumed between 3 and 15 years.

19. We recommended that management should follow


all due process in procuring stores to avoid over stocking.

GHANA REVENUE AUTHORITY CUSTOMS


DIVISION – TEMA OIL REFINERY COLLECTION
Unsubstantiated debits to the petroleum accounts –
GH¢1,561,434,333.31
20. Between January and September 2015 an amount
of GH¢1,561,434,333.31 was debited to the petroleum
revenue account at the Bank of Ghana without the
knowledge of TOR management, hence no explanation
was provided for the withdrawal.

21. The Accountant of TOR’s failure to prepare


monthly bank reconciliation statements resulted in the
loss.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


15 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
22. We recommended that the Accountant should
prepare monthly reconciliation statement to enable
prompt action taken on such deviations.

23. Meanwhile the withdrawal should be investigated


and officials involved in the act sanctioned.

Non transfer of revenue by GCB and Ecobank


GH¢238,515,125.76
24. Revenue collected by GCB and Ecobank through
the GC-Net operations, on behalf of the Ghana Revenue
Authority (GRA) Customs Division totalling
GH¢77,857,778.07 and GH160,657,347.69 respectively were
not transferred to the consolidated fund at Bank of Ghana.

25. We recommended that management of collection


banks should strictly comply with the agreement on the
transfers.

GRA – PREVENTIVE SECTION


26. Our examination disclosed that pecuniary
penalties amounting to GH¢691,353.11 imposed on 38
vehicles imported into the country were not paid by the
importers concerned.

27. We recommended that management should


investigate the cause for non-payment of the full penalties.
The officer who authorised the release of the vehicles

Annual Report of the Auditor-General on the Public Accounts of Ghana –


16 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
without the payment should be made to refund the
amount and be sanctioned.

GRA – DOMESTIC TAX REVENUE OFFICE


Outstanding Income/Corporate Taxes GH¢6,806,899.00
and US$61,506.00
28. Our review of 1,555 selected tax files from 10
Domestic Tax Revenue Offices in the Greater Accra
Region showed that, 549 Companies, Business Entities and
individuals owed an amount of GH¢6,806,899.00 and
US$61,506.00 in corporate and individual income taxes for
the 2015 year of assessment.

29. We urged management to increase its enforcement


role to collect all the outstanding tax revenues.

Outstanding PAYE – GH¢5,798,942.00


30. We observed that 526 employers including 9
Directors did not remit Pay As You Earn (PAYE)
deductions of GH¢5,798,942.00 to the Commissioner-
General for the 2015 year of assessment.

31. We urged the Commissioner-General to recover all


the outstanding PAYE together with appropriate penalties
from the defaulters.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


17 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Outstanding withholding tax GH¢3,423,600.00 and
US$25,842.00
32. Our random examination of tax files showed that,
107 companies who presented audited accounts for the
2015 year of assessment failed to withhold taxes of
GH¢3,423,600.00 and US$25,842.00 on audit, legal,
consultancy, professional fees, goods and services.

VAT Debtors – GH¢11,934,957.00


33. Our review disclosed that 100 registered VAT
traders who filed their returns at the MTO and STO owed
a total of GH¢11,934,957.00 in taxes as at December 2015.

34. We recommended that management should take


prompt action to recover the unpaid tax balances.

Dishonoured cheques – GH¢533,596.00, €825.00 and


US$4,762.00
35. Our review of the Returned Cheques Register
revealed that 124 taxpayers who issued cheques totalling
GH¢533,596.00, €825.00 and US$4,762.00 for the settlement
of their taxes were dishonoured by their respective banks.

36. We urged management to pursue the taxpayers


involved to settle the outstanding taxes with penalties.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


18 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF EDUCATION
37. Management of Ghana Education Service, Krachi
West failed to present 83 payment vouchers with a face
value of GH¢293,669.58 for audit.

38. We recommended that the District Accountant Mr.


Peter Ayitey should be surcharged with the amount
involved.

39. Unretired imprest of GH¢74,889.99 released to 10


officers to undertake various official duties were not
accounted for.

40. We recommended that management should


compel the officers to retire the imprest or have the
amount charged to their personal account as advances and
deducted from their monthly salaries.

MINISTRY OF FOOD AND AGRICULTURE


VETERINARY SERVICE DIRECTORATE
Unpaid compensation to 34 farmers under Avian
Influenza programme – GH¢1,448,157.02
41. Our audit disclosed that as at December 2016, 34
Farmers whose poultry farms and farm products were
destroyed between May and October 2015 had not been
paid a total compensation of GH¢1,448,157.02.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


19 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
42. We advised management to ensure that the
outstanding amount of GH¢1,448,157.02 be paid to the
affected farmers to compensate for the loss.

MOFA – EJURA/TAMALE
Failure to recover loans from block farmers
GH¢656,225.30
43. Our audit disclosed that 121 farmers who were
granted loans in a form of farm inputs between 2013 and
2015 farming seasons were indebted to the tune of
GH¢656,225.30 even though the loan agreement spelt out
that recovery was to be completed within 12 months, the
beneficiaries had defaulted in the repayment.

44. We recommended that management should


involve organisations with the experience of debt
collection in the recovery of the amount of GH¢656,225.30
from the farmers involved.

MINISTRY OF INTERIOR
GHANA NATIONAL FIRE SERVICE
Non- recovery of rent advance – GH¢364,040.00
45. Rent advance of GH¢364,040.00 granted to 5,200
fire officers had remained outstanding for over 10 months
without recovery. We urged management to pursue full
recovery from the beneficiaries.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


20 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA IMMIGRATION SERVICE, KOFORIDUA
Unearned salaries – GH¢89,789.68
46. Two ex-employees of Ghana Immigration Service,
Koforidua were wrongfully paid a total salary of
GH¢89,789.68 for three months.

47. This resulted in a wrongful payment of a total


salary of GH¢89,785.68 for three months. This pattern of
payment indicated a deliberate practice on the part of
Controller & Accountant-General.

48. We recommended full recovery of the amount


from the Controller and Accountant-General.

MINISTRY OF EMPLOYMENT AND LABOUR


RELATIONS
DEPARTMENT OF SOCIAL WELFARE,
BOLAGATANGA
Unretired Imprest – GH¢92,315.50
49. Management of Department of Social Welfare,
Bolgatanga paid an amount of GH¢92,315.50 as imprest to
seven officers to undertake official assignments which was
not retired.

50. We recommended to management to treat this as


an advance and be recovered from the officers.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


21 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
JUDICIAL SERVICE
COMMERCIAL COURT ACCRA

Understatement of revenue GH¢21,033,516.07


51. Two cashiers at the commercial court in Accra,
understated total collections in the revenue and deposit
cash books by GH¢20,893,095.83 and GH¢140,420.24
respectively resulting in understatement of
GH¢21,033,516.07 in the cash book.

52. We recommended that regular reconciliation


should be carried out to unearth and correct such
occurrences.

MINISTRY OF LOCAL GOVERNMENT AND RURAL


DEVELOPMENT
BIRTH AND DEATHS REGISTRY, WA
Diversion of Government funds into private accounts -
GH¢224,760.00
53. The registrar at the Births and Deaths Registry, Wa
collected revenue of GH¢224,760.00 and paid the amount
into his private account instead of the approved bank
accounts.

54. We recommended that the amount should be


refunded by the officer with interest.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


22 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF HEALTH
HEADQUARTERS
Failure to pay withholding Tax – GH¢2,122,577.69
55. We noted that a total amount of GH¢2,122,577.69
withheld as tax for the year ended 31 December 2015, was
not remitted to the Ghana Revenue Authority (GRA).

56. We recommended that Management should


impose the applicable penalty on the outstanding balance
and also ensure to comply with the 15 days ultimatum.

KORLE BU TEACHING HOSPITAL


Payment of judgment debt – GH¢245,277.00
57. We noted that management paid a total amount of
GH¢245,277.00 as judgment debt to twenty-five employees
of the hospital who were wrongfully dismissed by the
Hospital Board.

58. Management should ensure that critical decisions


and actions of this nature on employees are well
considered legally to avoid court actions.

Retirement package paid to Prof. Afua Hesse, retired Ag.


Chief Administrator
59. We noted that a retired Director of Medical
Services and Ag. Chief Administrator, Prof. Efua Hesse
was paid retiring awards comprising cash of
GH¢51,096.74 and a VW Passat car. The package was not

Annual Report of the Auditor-General on the Public Accounts of Ghana –


23 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
supported by the officer’s conditions of service, the
Hospital’s past practice or retiring packages paid by other
teaching hospitals in the country.

60. We recommended that management should


recover the amount of GH¢51,096.74 from the retired
officer and retrieve the vehicle for official valuation and
the officer made to pay for it. Otherwise, the Chairman of
the Board, the Ag CEO, and the Director of Finance who
approved and made the payment should be held liable.

CENTRAL MEDICAL STORES - GREATER ACCRA


REGION
Unpresented payment vouchers – GH¢482,792.71
61. We noted that fifteen payment vouchers with a
total face value of GH¢482,792.71 were not presented for
our review.

62. We recommended that the Finance Officer should


refund the amount of GH¢482,792.71.

Indebtedness of Health Institutions to the Central


Medical Stores - Greater Accra Region– GH¢15,113,563.53
63. We noted that 99 Health institutions owed the
Central Medical Stores (Greater Accra Region) a total
amount of GH¢15,113,563.53 in respect of Drug and Non
Drug health products sold to them, as at September 30,
2015. We recommended and Management agreed to

Annual Report of the Auditor-General on the Public Accounts of Ghana –


24 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
improve the debt recovery system to facilitate the recovery
of the outstanding amount.

Indebtedness of National Health Insurance Authority to


various Health Directorates – GH¢10,640,921.29
64. We noted during our audits that 24 Health
Directorates were owed GH¢10,640,921.29 by the NHIA as
at 31 December 2015.

65. We recommended that the Management of


NHIA should reimburse the Institutions to ensure
continuity of the services rendered by the facilities.

Unearned salary – GH¢231,173.85


66. We noted that twenty-Six officers between
October 2011 and January 2016 were paid unearned
salaries totalling GH¢231,173.85.

67. We recommended that Management should


pursue recovery of the amount or convert it as an advance
and charge it to their personal account which would be
deducted from their salary or entitlement.

EFFIA NKWANTA REGIONAL HOSPITAL


Mammogram and other hospital equipment abandoned
for four years
68. Our audit of the hospital’s assets register disclosed
that 14 boxes of various sizes of mammogram and digital

Annual Report of the Auditor-General on the Public Accounts of Ghana –


25 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
x-ray equipment meant for breast cancer x-rays and other
complex x-rays respectively donated to the Hospital by
MOH in November 2013 had still not been installed. Some
of the components were exposed to the vagaries of the
weather at the Hospital’s snacks shop.

69. We urged management to expedite action on the


installation of the machines so that both the patients and
the hospital would benefit from its use.

OTHER AGENCIES
GOVERNMENT SECRETARIAT SCHOOL, TAMALE

School fees not accounted for – GH¢126,345.00


70. The Principal of the Government Secretarial
School, Tamale used unauthorised receipts to collect
school fees amounting to GH¢161,750.00 from 243
students and disclosed only GH¢35,405.00 in the books of
accounts leaving GH¢126,345.00 not accounted for.

71. We recommended that The Principal should


refund the amount of GH¢126,345.00 to the school and
punitive action taken against him.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


26 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PART III

MINISTRY OF FINANCE
HEADQUARTERS
Unearned salaries – GH¢3,953.74
72. Regulation 297(1b&f) of the Financial
Administration Regulations, 2004 (L.I. 1802) requires that,
“A head of department shall cause the immediate
stoppage of payment of salary to a public servant when
that public servant has been absent from duty without
leave or reasonable cause for a period stipulated in the
administrative regulations of the establishment or died.”

73. We observed that, a total unearned salary of


GH¢3,953.74 was paid to two employees after they had
separated from the Ministry as shown below:

Name Of Staff Exit Deletion Reason For Monthly Total


Staff ID Date Date Separation Gross Amount
Salary GH¢
GH¢
Kroduah 111797 27/2/15 30/4/15 Death 2,314.04 2,314.04
James
Quarcoo 57532 30/3/15 31/5/15 Vacation of 819.85 1,639.70
James Post
Total 3,953.74

Annual Report of the Auditor-General on the Public Accounts of Ghana –


27 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
74. We noted that whilst the separation was due to
circumstances beyond the control of management, the
payments were stopped within two months after the
causative events.

75. We observed, however, that since the payments


were stopped 20 and 21 months after the separation, no
action had been taken by management to recover the
unauthorised payments.

76. At the instance of the Audit the said amount of


GH¢3,953.74 was refunded without interest to BOG
Suspense Account on 19/1/2017, 21 months after the
stoppage without Treasury Counterfoil Receipt (TCR) to
acknowledge the payment.

77. Management should obtain Treasury Counterfoil


Receipt (TCR) from the Controller and Accountant
General to authenticate the payment.

INSTITUTE OF ACCOUNTANCY TRAINING (IAT),


Occupation of Government land without tenancy
agreement
78. Section 65 of the Financial Administration Act,
2003 (Act 654) provides that no transfer, lease or loan of
property owned by Government shall be made to any
person except in accordance with the appropriate law for
that purpose.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


28 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
79. We observed that, portions of the Institute’s land
at Adenta had been occupied by three private persons
who had erected containers and wooden structures
without authority for the operation of the following:
i. bookshop
ii. photocopying services
iii. catering services.

80. We however noted that no tenancy agreement had


been signed with the school neither were there records to
confirm the following:
i. how long the businesses had occupied public
land?
ii. the terms and conditions of their occupancy.

81. According to management, the businesses which


provided essential services to the students were on a trial
basis hence the omission.

82. We therefore recommended that management


should:
i. sign tenancy agreement with the operators,
stating the rent payable monthly and the
duration of the contract.
ii. ensure that the Institute received full value for
the whole period for the use of the land.
iii. maintain adequate records on the occupancy to
enhance transparency.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
29 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Poor custody of library books
83. Heads of departments or institutions and all public
officers entrusted with public office or any related duties
are to apply, in the discharge of such duties, rules and
procedures, sufficient to control and safeguard public
property.

84. We observed that, since the Institute relocated to


Adenta, in February 2015, the prescribed furniture and
fittings required to hold stocks of library books had not
been procured. Contrary to the requirements of standard
practice in a functional library, 3,878 books, covering
various disciplines of Diploma study and leisure reading
were stacked on the bare floor.

85. Furthermore, per memorandum dated 26 June


2014, management requested GH¢32,430.00 from the
Ministry of Finance to pay for the cost of providing
shelves and other furniture for the library. We did not
sight any response from the Ministry and the library
books still remained on the floor.

86. As a result of the conditions in the library, students


and lecturers were unable to access information from the
books.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


30 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
87. We recommended and management agreed to
follow up on the request for funds from the Ministry to
furnish the library.

PUBLIC ACCOUNTS
Store Purchases in excess of requirements –
GH¢2,339,980.00
88. Regulation 0102(d) of Stores Regulations 1984
states that “Stockholdings are at all times kept to an
economic minimum consistent with the maintenance of an
effective service level”.

89. We however noted during our examination of


the store ledger and the physical stocktaking that, some
bulk items were procured and packed in the stores. We
further observed that, these items, some of which are
listed below were not likely to be consumed between 3 to
15 years.
Items Stock Total Quantity Balance Value Estimate
As At Issued GH¢ d Years
Dec. Between Dec. Of
2014. 2014 And Dec. Usage
2016
Temporal 303,448 39,400 264,048 129,385.52 7 years
Jacket

Payslips 14,140 Nil 14,140 2,219,980 3 years


F.E Jacket 11,770 800 11,000 5,390 15 years
Total 2,339,980.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


31 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
90. In our view, the excessive procurement led to lock
up of funds which could have been used to achieve other
objectives.

91. We therefore advised Controller and Accountant-


General to follow all due process in procuring stores to
avoid over stocking.

Value Books Supplied prior to Award of Contract


GH¢803,758.00
92. Section 30 (1) of the Public Procurement Act
(Amendment Act 2016) Act 914 states that, “In tender
proceedings, acceptance of the tender and entry into force
of the procurement contract shall be carried out in
accordance with Section 65 of this Act. In the other
methods of procurement, the manner of entry into force of
the procurement contract shall be notified to the suppliers
or contractors at the time those proposals, offers or
quotations are requested”.

93. However, our review of the payment vouchers and


contract files for the period January to September 2016
revealed that, some value books were delivered to stores
before the award of contract signed with the suppliers.
Details shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


32 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Award SRA Date PV. Payee Details Qty. Gross
Date Date Paid No.
Ordere Amount
d
30/03 08/10 4/10/2 328431 Compu- Printing and 100,000 100,000.00
/2016 /2015 016 print supply of
Limited Biometric
Passport
Application
Forms
20/05 04/01 4/10/2 328441 Derisco Printing and 180
/2016 /2016 016 Company Supply of Pre-
boxes 30,240.00
Ltd Paid Tolls,
Stickers for GHA
1/12/ 30/10 04/10/ 328425 Bestas Printing and 200
2015 /2015 2016 Press supply of Levy
68,950.00
Limited Returns for GTA
1/12/ 30/10 04/10/ 328425 Bestas Printing and 2,500
2015 /2015 2016 Press supply of Levy
?
Limited Invoice for GTA
01/9/ 17/12 04/10/ 328438 TG Print Printing and 39,200
2015 /2014 2016 Engineerin supply of KMA
287,168.00
g Ltd Market Porter
Tickets GHø0.20
01/9/ 17/12 04/10/ 328438 TG Print Printing and 16,800
2015 /2014 2016 Engineerin supply of KMA
?
g Ltd Market Porter
Tickets GHø0.30
23/03 07/07 04/10/ 328423 TG Print Printing and 20,000 70,000.00
/2016 /2015 2016 Engineerin supply Toll
g Ltd Tickets for Senchi
Ferry
20/05 02/02 04/10/ 328421 Bestas Printing and 100,000 100,000.00
/2016 /2016 2016 Press supply of
Limited Biometric
Passport
Application
Forms
12/02 19/01 04/10/ 328420 Shine Printing and 30,000 77,400.00
/2016 /2016 2016 Prints supply of Food
Company Certificates for A.
Ltd M. A
12/02 29/10 04/10/ 328419 Shine Printing and 200,000 70,000.00
/2016 /2015 2016 Prints Co. supply of Old
Ltd Annual Returns
for Companies
Total 803,758.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


33 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
94. We therefore urged management to comply with
the law to ensure effective stock control management.

95. There should also be an annual procurement plan


based on minimum stock levels to avoid instances of
receiving supplies before actual contracts are awarded.

GHANA REVENUE AUTHORITY –


CUSTOMS DIVISION
TEMA OIL REFINERY COLLECTION
Unsubstantiated debits to the petroleum account –
GH¢1,561,434,333.31
96. Our audit revealed that between January and
September 2015, a total of GH¢1,561,434,333.31 was
debited to the Petroleum Revenue Account No.
101813131461585 at the Bank of Ghana but the Accountant
of TOR, could not provide explanation for the
withdrawals from the account.

97. Secondly, the failure of the accountant to prepare


monthly bank reconciliation statement resulted in the loss
to TOR.

98. We recommended that management should


investigate the matter from bank of Ghana and take
appropriate action to correct the anomaly.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


34 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
99. In addition to the above, the accountant should
prepare monthly reconciliation statements and take
prompt action to correct such deviations.

100. Additionally, management should strictly comply


with Regulation 2(g) of the Financial Administration
Regulations 2004, (LI 1802) to enhance transparency and
accountability.

Non-transfer of revenue by collection banks (GCB and


Ecobank) – GH¢238,515,125.76
101. Revenue collected by GCB Bank and Ecobank
through the GC-Net operations, on behalf of the Ghana
Revenue Authority (GRA), Customs Division totalling
GH¢77,857,778.07 and GH¢160,657,347.69 respectively
were not transferred to Bank of Ghana for periods ranging
between seven and 19 months.

102. Delay in the transfer of revenue had denied


government the opportunity to utilize the funds.

103. We recommended that management of collection


banks should comply strictly with the agreement on the
transfers.

Unpaid Tax by Zen Petroleum – GH¢3,071.40


104. Our audit revealed that ZEN Petroleum lifted
13,500 litres of PMS with tax liability of GH¢5,791.39 but

Annual Report of the Auditor-General on the Public Accounts of Ghana –


35 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
declared and paid GH¢2,719.99 resulting in a short
payment of GH¢3,071.40 as detailed below:

Lifting Declaration Product Qty. Tax Tax Tax


Period Payable Paid Outstanding
915/April/15 42015181876 PMS 13500 5,791.39 2,719.99 3,071.40

105. This resulted from manipulation of some taxes by


the OMC which exempted them from paying some of the
levies.

106. We urged management to ensure that the unpaid


amount was fully recovered from Zen Petroleum in
addition to the penalties involved.

Default in rescheduled payment – Petro Afrique Oil Gh.


Ltd. – GH¢957,336.02
107. The rescheduling conditions as stated by
Rescheduling of Customs duties letter with reference
number H/DUTY/13 dated 20 August, 2015 to Petro
Afrique Oil Ghana. Ltd. stated that, “The post-dated
cheques are bank guaranteed, for the reschedule of duty
payment agreement between the Ghana Revenue
Authority and Petro Afrique Ghana Ltd.”

108. In the event of default, this arrangement shall be


nullified and the facility withdrawn. In that case any
outstanding balance would become payable immediately

Annual Report of the Auditor-General on the Public Accounts of Ghana –


36 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
and Customs Division would then use every available
means including forfeiture of assets to recover the debt”.

109. Our audit of the Petroleum Revenue Collection at


TOR revealed that Petro Afrique Oil Ltd defaulted in all of
its rescheduled instalment payments of GH¢957,336.02 for
the period 30/9/2015 - 29/2/2016.

110. The Division failed to implement the above


conditions to recover the revenue from Petro Afrique Ltd.

111. The Tema Oil Refinery Customs outfit could not


explain what accounted for the default.

112. We recommended that management should


recover the amount with interest or invoke the forfeiture
clause.

PREVENTIVES SECTION
Detained vehicles released without full payment of
penalties – GH¢691,353.11
113. We noted that 38 vehicles which were imported
into the country were detained for non-payment of duties
and taxes.

114. Our examination of the relevant supporting


documents on the vehicles revealed that overage and
pecuniary penalties amounting to GH¢ 691,353.11 were

Annual Report of the Auditor-General on the Public Accounts of Ghana –


37 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
imposed on the vehicles. Although these charges were not
settled, the vehicles were released to their owners thereby
denying the State of this revenue.

115. We recommended that management should


investigate the cause for non-payment of the full penalties.
The officers who authorised the release of the vehicles
without the payment should be made to refund the
amount and be sanctioned.

GHANA REVENUE AUTHORITY –


DOMESTIC TAX REVENUE OFFICES
Outstanding income/corporate taxes – GH¢6,806,899.00
and US$61,506.00
116. Our review of 1,555 selected tax files from 10
Domestic Tax Revenue Offices in the Greater Accra
Region showed that, 549 Companies, Business Entities and
individuals owed an amount of GH¢6,806,899.00 and
US$61,506.00 in corporate and income taxes for the 2015
year of assessment as shown below:

No. Tax Office Files Taxpayers/ Amount Amount


selected Files with Outstandin Outstand
for outstanding g (GH¢) ing
review taxes US$
1. Adabraka MTO 100 36 1,589,161.00 61,506.00
2. Agbogbloshie 164 14 144,093.00
MTO
3. Kaneshie MTO 45 4 28,398.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


38 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
4. Legon MTO 50 28 2,090,220.00
5. Osu MTO 111 6 98,697.00
6. Spintex MTO 169 26 449,469.00
7. Adabraka STO 172 42 440,222.00
8. Kaneshie STO 337 253 1,387,917.00
9. Mataheko STO 266 71 265,215.00
10. Weija STO 141 69 313,507.00
Total 1,555 549 6,806,899.00 61,506.00

117. Section 135 (2) of Act 592 states that, “tax that has
not been paid when it is due and payable may be sued for
and recovered in any court by the Commissioner-
General”.

118. We urged Management to increase its enforcement


role to collect all the outstanding tax revenues.

119. Management responded that, the companies


which were indebted to the GRA had been served with
demand notices for recovery.

Outstanding PAYE - GH¢5,798,942.00


120. Section 143(2b), of the Internal Revenue
Amendment Act 669, provides that ‘a person who fails to
remit tax withheld on the due date is liable to pay a
penalty of 30% where the delay is over three months.’

Annual Report of the Auditor-General on the Public Accounts of Ghana –


39 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
121. Contrary to the above, we observed that, 526
employers including nine Directors did not remit Pay As
You Earn (PAYE) deductions of GH¢5,798,942.00 to the
Commissioner-General for the 2015 year of assessment as
shown below:
No. Tax office Number of Amount
firms owing outstanding
PAYE (GH¢)
1. Adabraka MTO 34 2,539,614.60
2. Kaneshie MTO 10 246,345.62
3. Legon MTO 14 341,148.68
4. Spintex MTO 16 262,378.81
5. Adabraka STO 6 20,521.20
6. Kaneshie STO 387 2,118,097.97
7. Mataheko STO 59 270,835.08
Total 526 5,798,941.96

122. We urged the Commissioner to recover all


outstanding PAYE together with appropriate penalties as
required by Section 143 of Internal Revenue Amendment
Act 669.

Outstanding withholding tax – GH¢3,423,600.00 and


US$25,842.00
123. Section 84 of Internal Revenue Amendment Act,
Act 814 provides that ‘where a contract is entered into
Annual Report of the Auditor-General on the Public Accounts of Ghana –
40 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
between payee and a resident person for the provision of
goods and services exceeding 500 currency points, the
person making the payment shall withhold tax on the
gross amount.’ Section 88(1) also require that where
withholding agent failed to withhold tax it is personally
liable to pay to the Commissioner-General the amount of
tax which has not been withheld.

124. Our random examination of tax files showed that,


107 companies who presented audited accounts for the
2015 year of assessment failed to withhold taxes of
GH¢3,423,600.00 and US$25,842.00 on audit, legal,
consultancy, professional fees, goods and services as
provided in the table below:

No. Tax Office No. of companies Amount not Amount not


who did not withheld withheld
withhold taxes GH¢ US$
1. Adabraka MTO
30 796,311.35 25,841.56
2. Kaneshie MTO 2 26,936.66
3. Legon MTO 1,530,680.00
19
4. Osu MTO 12 53,492.79
5. Spintex MTO 32 961,110.17
6. Adabraka STO 6 7,557.56
7. Mataheko STO 47,510.98
6
Total 107 3,423,599.51 25,841.56

Annual Report of the Auditor-General on the Public Accounts of Ghana –


41 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
125. Lack of understanding of the provisions in the tax
law led to the failure of withholding agents to withhold
taxes on payments made. The failure to withhold taxes
from payments made denied the Consolidated Fund of
timely inflow of funds for national development.

126. Management explained that, until a conclusion


was reached on expenses lumped together in the accounts
submitted; withholding taxes cannot be surcharged. This
assertion, however, was not supported by Section 84 of
Act 814.

127. We recommended that, Management should


educate the withholding agents to comply with the
provisions of the Act.

VAT debtors - GH¢11,934,957.00


128. Section 31(2) of the VAT Act states that, any
amount shown on an invoice as tax on a supply of goods
or services shall be recoverable as tax due from the person
issuing the invoice, whether or not-
a. The invoice is a tax invoice issued under this Act
or in accordance with regulations made under
this Act or;
b. An amount of tax is chargeable on the supply; or
c. The person issuing the invoice is a taxable person

Annual Report of the Auditor-General on the Public Accounts of Ghana –


42 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
129. During our review of the traders files, and the
ledger balances, we observed that 100 registered VAT
traders who filed their returns at the MTO, and STO owed
a total of GH¢11,934,957.00 as at 31 December, 2015. We
have provided the details in the table below.

No. Tax Office No. of Outstanding Tax


Traders (GH¢)
1. Adabraka MTO 5 4,610,162.51
2. Kaneshie MTO 5 486,877.67
3. Legon MTO 56 5,465,202.89
4. Osu MTO 2 225,229.06
5. Spintex MTO 24 1,135,934.38
6. Adabraka STO 2 1,756.86
7. Weija STO 6 9,793.41
Total 100 11,934,956.78

130. We were of the view that, the failure to apply the


laws on debt recovery by Management resulted in such
outstanding tax liabilities.

131. During the period in which the tax remained


outstanding, Government was denied the needed revenue
to complete its planned development programme.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


43 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
132. We recommended that Management, in the future
should take prompt action to recover the outstanding tax
balances.

133. Management responded that a special tax force


had been formed to pursue the collection of the
outstanding balances.

Outstanding rent tax – GH¢144,383.00


134. Regulation 16 (1) of Internal Revenue Regulations
2001, LI 1675, as amended by LI 2208, provides that,
where an individual receives rent income from any
residential or commercial premises, the Commissioner-
General may calculate tax on rent income at 8% on gross
rent income in the year of assessment.

135. We noted during the examination of rent files that,


102 landlords/ladies were indebted to the Ghana Revenue
Authority in the sum of GH¢144,383.00 as at 31 December,
2015. Details are provided below:

No. Tax Office No. of tax payers Amt. (GH¢)


1. Kaneshie MTO 3 2340.00
2. Adabraka STO 30 60,971.07
3. Kaneshie STO 27 40,001.61
4. Mataheko STO 42 41,069.89
Total 102 144,382.57

Annual Report of the Auditor-General on the Public Accounts of Ghana –


44 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
136. Lack of adequate data on rented properties or
apartments hindered the collection of the rent taxes.

137. We recommended that, Management should


provide the necessary logistics and data on rented
properties or apartments to the Domestic Tax Offices to
enable them collect the taxes. We further, recommended
that, Management should liaise with the District
Assemblies to tap into the property rate database to
identify houses and their usage for tax purposes.

Dishonoured cheques - GH¢533,596.00, €825.00 and


US$4,762.00
138. Our review of the Returned Cheques Register
revealed that, 124 taxpayers who issued cheques totalling
GH¢533,596.00, €825.00 and US$4,762.00 for settlement of
their taxes were dishonoured by their respective banks
due to lack of proper mandate or inadequate funds. The
breakdown is shown below:

No. Tax Office Number of Amount


cheques GH¢
1. Adabraka MTO 3 185,626.73
3. Legon MTO 54 266,271.29
4. Osu MTO 17 20,368.12
5. Adabraka STO 27 16,023.59
Annual Report of the Auditor-General on the Public Accounts of Ghana –
45 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
6. Mataheko STO 5 18,735.25
7. Weija STO 18 26,570.97
Total 124 533,595.95

139. Section 143(1) of Internal Revenue Amendment


Act 669 of 2004 stipulates that, a person who fails to pay
tax, including an amount treated by this Act as if it were
tax, on or before the due date for payment is liable in a
case where the failure is for period exceeding three
months to pay a penalty equal to 20% of the tax payable in
addition to the tax unpaid. Also the issuance of dud-
cheques is a criminal offence under the Criminal Offences
Act of the country. (Section 313 (a) of Act 29 of 1960).

140. We urged Management to pursue the taxpayers


involved to settle the outstanding taxes in accordance with
Section 143 of Act 669. We also advised Management to
accept only bankers draft from the defaulters.

GHANA REVENUE AUTHORITY, DOMESTIC TAX


DIVISION – DENU
Uncompetitive Procurement – GH¢7,821.50
141. Section 43 (1) of the Public Procurement Act, 2003
(Act 663) states that “The procurement entity shall request
quotation from many suppliers or contractors as
practicable, but from at least 3 different suppliers.”

Annual Report of the Auditor-General on the Public Accounts of Ghana –


46 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
142. Our review of the procurement management
revealed that goods and services amounting to
GH¢7,821.50 were purchased without alternative
quotations from other prospective suppliers.

143. Due to this we were unable to determine whether


management obtained value for money in the
procurement of the goods and services.

144. We entreated the Chief Revenue Officer to comply


with the Public Procurement Act.

MUNICIPAL TREASURY - ASHANTI


Unaccessed warrants – GH¢115,357.99
145. During the year 2016, the Controller and
Accountant-General’s Department, Kumasi and Offinso
Municipal Treasury received warrants totalling
GH¢474,959.82 from the Ministry of Finance on behalf of
18 MDAs. A total amount of GH¢382,174.83 was
disbursed while the remaining GH¢92,784.99 was
unaccessed. As a result, all planned programmes and
activities could not be carried out by the MDAs.

146. Similarly, seven Departments received warrants


totalling GH¢23,073 from Suhum/Nsawam Municipal
Treasury. Three departments received warrants totalling
GH¢11,482.00 representing the first and second quarter
allocation of funds for 2016. The related funds were
Annual Report of the Auditor-General on the Public Accounts of Ghana –
47 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
however not credited to the accounts of the beneficiary
departments.

147. We noted that the inability of the MDAs to access


funds allocated to them was due to late release of
warrants by the Ministry of Finance.

148. We recommended that in future, warrants should


be released earlier to enable MDAs access funds to carry
out planned programmes and activities before the year
ended.

GHANA REVENUE AUTHORITY (GRA)


SMALL TAX OFFICE – TAKORADI
Dishonored cheques – GH¢16,086.75
149. Regulation 32(1) of the FAR 2004 requires heads of
department to recover the value of any dishonoured
monetary instrument from the person who issued the
instrument.

150. We noted that, 16 cheques totalling GH¢24,685.96


issued by tax payers for the settlement of their tax
liabilities were dishonoured by their respective banks.
Though these tax payers were notified of the dishonoured
cheques, they failed to issue new cheques to clear their
indebtedness until audit raised the issue before a total of
GH¢8,599.21 was recovered leaving GH¢16,086.75
outstanding.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


48 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
151. The lapse was attributed to management’s failure
to take necessary recovery measures to recover the
amount. We urged management to initiate actions that
would ensure the timely and effective collection of taxes.

Outstanding Corporate and Income Tax – GH¢515,063.75


152. Section 134(1) of the Internal Revenue Act, 2000
(Act 592) requires that tax assessed shall be due on the
date on which the person assessed is served with a notice
of assessment. Also, Section 134(2d) states that “Tax due
in any assessment shall be paid by the person assessed, in
any other case within 30 days from the date of service of
the notice of assessment.”

153. Our review of Taxpayer files disclosed an


outstanding Corporate tax of GH¢397,225.24 by 81
Companies and GH¢64,231.10 by 29 individuals during
the 2015 fiscal year.

154. The anomaly was due to the failure of the


compliance unit of the Service to serve Demand Notices
on defaulting tax payers and failure of management to
adopt proactive measures in recovering taxes from
defaulters. At our instance Management recovered an
amount of GH¢15,578.20 from various organisations
leaving an unpaid balance of GH¢443,905.14.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


49 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
155. Similarly our review of 91 rent tax files showed an
outstanding tax liabilities of GH¢75,439.65 out of which
GH¢6,281.04 was recovered at the instance of the audit
leaving GH¢69,158.61 unpaid.

156. We recommended that management through the


compliance unit of the Service, reviewed taxpayers’ files
regularly and seek the assistance of the Metropolitan
Assembly in tracing relocated companies and entities so as
to recover all outstanding tax liabilities.

GHANA REVENUE AUTHORITY – AKIM ODA


Failure to pay withheld taxes – GH¢4,000.00
157. Management of Akim Swedru Senior High School
failed to remit a total withheld tax of GH¢4,000.00
contrary to Section 87 (1) of the Internal Revenue Act, 2000
(Act 592) resulting in the management of the Ghana
Revenue Authority, Akim Oda issuing a Demand Notice
to the school.

158. The delay in settlement of the withheld taxes was


due to weak supervisory control over the work of
Accountant by the Headmaster resulting in the State being
denied the amount to fund the execution of development
programmes and projects.

159. We urged management of GRA to ensure that the


amount of GH¢4,000.00 was recovered from the
Annual Report of the Auditor-General on the Public Accounts of Ghana –
50 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
management of the School and also undertake intensive
education campaign on the tax system.

Tax defaulters – GH¢7,226.88


160. Section 1(1) of the Income Tax Act, 2015 (Act 896)
states that “Income Tax is payable for each year of
assessment by: (a) a person who has chargeable income
for the year and (b) a person who receives a final
withholding payment during the year”.

161. Our review of a sample of registered taxpayers


files reviewed showed that contrary to Section 1(1) of the
Income Tax Act, 2015 (Act 896), seven taxpayers owed the
State a total amount of GH¢7,226.88 in taxes due as at 30
June 2016.

162. We advised management to recover the


GH¢7,226.88 from the defaulters and further ensure
effective tax education and other measures aimed at
facilitating efficient tax collection.

DOMESTIC TAX REVENUE DIVISION – DORMAA-


AHENKRO
Tax arrears not recovered – GH¢250,557.40
163. Section 149 of the Internal Revenue Act 2000, (Act
592) states that “A person who without a reasonable
excuse fails to pay a tax including an amount treated by
this Act as if it were a tax on or before the due date for

Annual Report of the Auditor-General on the Public Accounts of Ghana –


51 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
payment commits an offence, and is liable on summary
conviction”.

164. Contrary to the above, our review of the records


on entities and individuals tax files in Dormaa Ahenkro
revealed that 110 entities and individuals failed to pay
assessed taxes amounting to Gh¢113,368.53 to the
Commissioner-General for the period 2014 and 2015
because the District Tax officer of Dormaa failed to carry
forward the previous tax arrears.

165. Similarly the Berekum District Tax Manager failed


to carry forward assessed taxes of 96 individuals and
entities totalling GH¢137,188.87 between 2011 and 2015.

166. The Tax Officer’s failure to effectively supervise


the work of the Assessment Tax Officer to ensure that
entities and individual outstanding taxes were carried
forward deprived the State, tax revenue needed for
development.

167. We recommended that the District Tax officer


should proactively collect all the outstanding taxes due
from individuals and entities amounting to GH¢250,557.40
without further delay, failing which the appropriate
disciplinary action should be taken against him.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


52 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MUNICIPAL TREASURY – NSAWAM
Payment of unearned salaries – GH¢17,952.84
168. Management of the Treasuries are enjoined to
ensure prompt transfer of funds into the Main Controller
and Accountant-General’s Suspense Account in Accra in
line with Departmental Accounting Instructions as
specified in Regulation 294 of the FAR, 2004 (LI 1802).

169. Contrary to the above management failed to


delete the name of Mr. Opare Kofi (a deceased pensioner)
from the payroll and also to notify the Akwapim Rural
Bank Limited – Nsawam to transfer unearned pensions
payments totalling GH¢3,184.80 made to him between
March 2016 and December 2016 into the Consolidated
Fund.

170. Again Mr. Simon Kwaku Gadase a deceased


retired staff had a total amount of GH¢7,025.76 paid into
his bank account with Mumuadu Rural Bank Limited
(Suhum) between January 2016 and December 2016. The
bank delayed transfer of the amounts into the Suspense
Account for periods ranging between one and six months.

171. Similarly a total unearned net salary of


GH¢7,742.28 was paid into the bank accounts of Mr. Yaw
Asante, a teacher at Tettenku L/A Primary in the
Ayensuano District, Suhum who retired in June 2016 as
July – December 2016 salaries. Mr. Yaw Asante had since
Annual Report of the Auditor-General on the Public Accounts of Ghana –
53 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
withdrawn the total amount in addition to his gratuity
and monthly pension.

172. Management’s failure to promptly transfer the


unearned salaries/pensions to chest accounted for the
omission resulting in funds sitting idle in the Suspense
Accounts.

173. We advised management to ensure that the total of


GH¢17,952.84 was recovered and remitted without any
further delay and furthermore to liaise with the banks to
regularly ensure that all unclaimed Salaries/Pensions
were remitted into the CAGD’s Suspense Account.

DISTRICT FINANCE OFFICE – KWABENG


Payment of unearned pension – GH¢23,638.41
174. Regulation 297(1f) of the Financial Administration
Regulations, 2004 (LI 1802) requires a head of department
to cause the immediate stoppage of the payment of salary
to a public servant when that public servant dies.

175. Our review of the Ghana Government Pensioners’


payroll disclosed that the names of four deceased
pensioners continued to reflect on the Treasury Voucher
for periods ranging from 11 to 12 months after their death
resulting in the payment of GH¢23,638.41 as unearned
salaries contrary to the above regulation. Management
was yet to delete the names from the payroll as at the end
Annual Report of the Auditor-General on the Public Accounts of Ghana –
54 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
of February 2017. We also noted that the amount was still
intact in the respective bank accounts of the deceased
officer.

176. The District Finance Officer’s ineffective


monitoring and evaluation of the Pension Payrolls and
consequent delay in deleting the names of deceased
pensioners accounted for the anomaly.

177. We urged the District Finance Officer to ensure


that the names of the deceased pensioners were deleted
from the pensioners’ payroll and further liaise with the
management of their respective banks to ensure that the
amount of GH¢23,638.41 and any subsequent payments
made to them were promptly paid to Government chest.

YILO KROBO MUNICIPAL TREASURY


Un-authorised payment – GH¢11,750.00
178. The Municipal Treasury officer made five separate
disbursements totalling GH¢11,750.00 to four payees on 21
December 2016 towards fuel, repairs and maintenance,
T&T and office consumables.

179. The disbursements were, however, not authorised


by the Municipal Coordinating Director (MCD) contrary
to Part IX Section 3 of the Financial Memoranda for Local
and Urban Councils which states that “payment warrants

Annual Report of the Auditor-General on the Public Accounts of Ghana –


55 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
shall be certified by the officer authorised by the Council
to incur expenditure”.

180. The irregularity was due to the MFO’s failure to


effectively supervise the work of the schedule officer to
ensure that payments were duly authorised by the MCD.

181. We urged management to ensure that the MCD


authorised all payments, failing which the amount of
GH¢11,750.00 should be recovered from the Finance
Officer.

Payment without Works Order and Certification –


GH¢1,805.50
182. Management made two disbursement totalling
GH¢1,805.50 on repair works on official vehicles and office
equipment without supporting the PVs with Job Request
Orders specifying the services/activities requested and
the rates/prices chargeable contrary to Regulation 1522 of
Stores Regulations, 1984 which requires that before any
repairs are carried out, works order should be issued to
the service providers to ensure satisfactory work
performance with a view of promoting value for money.

183. The lapse was due to ineffective internal controls


exercised by Management which could result in the
service providers presenting inflated bills for payment.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


56 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
184. We urged management to ensure that heads of the
various Departments and Units obtained approval
/authorization from the Transport Officer and the
Municipal Coordinating Director for Work Orders relating
to all vehicles and office equipment meant for repairs
before payments were effected.

Payments without Warrants – GH¢6,332.00


185. The Minister of Finance and Economic Planning in
his presentation of the 2012 budget to Parliament in
November 2011, directed that effective January 3, 2012 all
payments (including DDF) should be supported by a
Warrant duly endorsed by the District Budget Officer
(DBO) and the Co-coordinating Director.

186. Management however paid a total amount of


GH¢6,332.00 to the Municipal Director and two firms in
respect of local travel cost, fuel and a Notebook Laptop
computer in December 2016. There was however, no
Warrants supporting the three disbursements in
contravention of the directive.

187. The lapse was attributed to management’s


disregard for the directive which could result in
unbudgeted payments and misapplication of funds.

188. We urged management to adhere strictly to the


directive on Warrants whenever a request was made by
Annual Report of the Auditor-General on the Public Accounts of Ghana –
57 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MDAs in order to promote effective public financial,
management practices.

Fuel and Lubricants not accounted for – GH¢2,527.00


189. Part XII, Section 60 of the Financial Memoranda of
District Assemblies and Regulation 1604 of the Stores
Regulations, 1984 requires that a log book is maintained
for each vehicle and particulars of receipt of fuel and
lubricants are to be recorded in on a daily basis. In
addition particulars of journeys undertaken and the
officers using the vehicle as well as kilometric reading are
to be recorded in it.

190. We, however, noted that management of


Department of Social Welfare, Ministry of Food and
Agriculture and Town and Country Planning failed to
ensure that three drivers logged fuel and lubricants
purchased and valued at GH¢2,527.00 into their respective
log books contrary to the above quoted regulations.

191. The irregularity was due to failure of the heads of


Departments to ensure that the drivers made the relevant
entries in the log books; a situation which could be abused
through diversion and unauthorised use of the vehicles.

192. We urged management to ensure that the drivers


accounted for the fuel purchased, failing which, the

Annual Report of the Auditor-General on the Public Accounts of Ghana –


58 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
authorising and approving officers should be made to
refund the total amount of GH¢2,527.00.

MUNICIPAL TREASURY – ASAMANKESE


Payment vouchers not receipted – GH¢3,857.00
193. Regulation 39(2c) of the FAR, 2004 (LI 1802) states
that the head of the Accounts Section of a department
shall control the disbursement of fund and ensure that
transactions are properly authenticated to show that the
amounts are due and payable.

194. Management however made disbursements of


GH¢3,857.00 on 23 December 2016 to the Municipal
Engineer of Feeder Roads and the Municipal Director of
Town and Country Planning. The payees, did not,
however, provide official receipts or written
acknowledgement of receipt of the amounts to support the
payments.

195. The failure of the MFO to ensure that the said


payees signed all amounts claimed and/or issued official
receipts, where applicable, resulted in the anomaly; a
practice which could lead to payments to non- existing
persons or diversion of unclaimed amounts.

196. We advised management to ensure that the named


beneficiaries issued official receipt(s) or written
acknowledgement of receipt of the amounts to regularise

Annual Report of the Auditor-General on the Public Accounts of Ghana –


59 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
the payments, failing which they should be made to
refund the amount involved to chest.

CENTRAL TONGU DISTRICT ASSEMBLY


TREASURY
Unclaimed salaries and pension – GH¢3,917.78
197. During our review of the Bank Statement on
Suspense account for unclaimed salaries and pension in
Amuga Rural Bank, Adidome, a total balance of
GH¢3,917.78 was declared to have been paid to
Government chest.

198. No evidence was provided to support the transfer


of GH¢3,917.00 to the Controller and Accountant-
General’s suspense account in Bank of Ghana, Hohoe.

199. Delays and non-monitoring of unclaimed salaries


in the suspense account may deny the Government access
to such monies to be used on other developmental
activities.

200. We urged the DFO to collect Treasury Counterfoil


Receipt (TCR) from the Regional Directorate of Controller
and Accountant-General’s Department as evidence of the
transfer to government chest and inform our office.

201. The District Finance Officer responded that, based


on our observation management had written to Controller

Annual Report of the Auditor-General on the Public Accounts of Ghana –


60 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
and Accountant-General to make the Treasury Counterfoil
Receipt (TCR) available for our examination immediately
the amount was cleared on the account.

MINISTRY OF EDUCATION
NATIONAL INSPECTORATE BOARD
Unearned salary – GH¢29,692.58
202. A review of the salary vouchers revealed that Mr.
Agbessi Kennedy John, a lead Inspector was paid an
amount of GH¢22,958.34 as salary for December 2015
instead of GH¢4,589.16 with his two months arrears
inclusive. As a result, Mr. Agbessi was overpaid by
GH¢18,369.18.

203. According to management, Mr. Agbessi failed to


refund the overpayment of GH¢18,369.18 despite two
official requests made to him. Furthermore, a letter dated
11 February, 2016 to Controller and Accountant- General
for the recovery of the said overpayment yielded no
results.

204. Similarly, Mr. Dakurah Thomas Aquinas a Senior


Superintendent II, of Jirapa Education Service who had
vacated post since August 2015 continued to receive salary
up until May 2016 totalling GH¢11,323.40. The staff
applied for study leave with pay to further his education
but the application was not approved by the Regional
Director of Education – UWR.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


61 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
205. We recommended that Mr. Dakurah Thomas
Aquinas and Mr Agbesi Kennedy John should be made to
refund the total unearned salary of GH¢29,692.58 to chest
and submit evidence of payment to the Audit Service for
verification.

GHANA EDUCATION SERVICE


TEACHER EDUCATION DIVISION – ACCRA
Indebtedness of Colleges of Education – GH¢438,965.40
206. Regulation 2(d) of FAR 2004 requires the head of
department to secure the due and proper collection of
government revenue collectable by the department within
the terms of instructions issued.

207. However, available records showed that as at


31/12/16, 17 Colleges of Education in the Greater Accra
Region owed the Teacher Education Division an amount
of GH¢438,965.40 for the purchase of textbooks, learning
manuals, syllabi and training services rendered for
Untrained Teacher Diploma in Basic Education (UTDBE).

208. Non-availability of funds was cited as the cause of


the debt.

209. In our view the accumulation of debts over the


years could affect the operation of the fund and therefore
deprive students of learning materials in future.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


62 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
210. We recommended to management to put in place
strict measures to curb the anomaly including
withholding supplies to defaulting schools.

MODEL NURSERY SCHOOL


Unauthorised operation of school by PTA
211. Act 654, Section 65 of the Financial Administration
Act (FAA) 2003, specifies that “no transfer, lease or loan of
Government property shall be made to any person except
in accordance with the appropriate law for the time being
in force for the purpose.” The GES Guidelines recognize
the PTAs as private associations which can organize
activities to raise funds to support the running of schools
but must be guided by the following:
a. Since PTA use the school system to collect
funds, these funds should be treated as public
funds in line with existing financial regulations.
b. PTAs are to prioritize their projects and work on
one project at a time.
c. Director-General shall not approve more than
two projects in one academic year.
d. PTAs levies should be within approved limits.

212. However our audit revealed that financial


operations at the school had been taken over by the PTA
without recourse to above stated guidelines and further
noted the following lapses:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


63 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
i. That out of the 31 teaching and non-teaching
staff; eight including the Accountant were
employees of the PTA.
ii. That payment vouchers were printed on PTA
letter heads.
iii. That the PTA Chairman authorised and as well
approved payments.
iv. PTA chairman was the sole signatory to bank
account for all funds collected, including PTA
dues which formed only 5% of the total
revenue received.
v. Being a practicing school for the National
Nursery Teacher Training Centre, the
Accountant neither reported to the Head of
Training Centre nor the Regional Education
Office which was supposed to oversee
activities at the facility.

213. The above irregularities were attributed to GES


management’s failure to ensure that the Regional
Education Office supervise activities at the school.

214. The lack of managerial control by the GES in our


view, could lead to both misapplication of funds and
misuse of state properties by the PTA.

215. We advised management to instruct the current


Headmistress to take charge of the school and regulate
Annual Report of the Auditor-General on the Public Accounts of Ghana –
64 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
activities of the PTA by ensuring that the prescribed
guidelines were adhered to in order to safeguard State
properties and resources.

Operation of unauthorised bank account


216. Regulation 18 of the FAR 2004 (LI 1802) states that
“A department that has a legislative approval to retain all
or portion of Internally Generated Funds (IGF) collected
must first lodge the retained IGF in gross into the
department’s operational bank account designated by the
Controller and Accountant-General before disbursements
are made.”

217. Contrary to the above requirement, we observed


that fees, levies and other revenue generated by the school
were rather lodged into the PTA account which had a sole
signatory of the Chairman while only admission fees was
paid into the school’s own account.

218. The above occurred because management of GES


failed to enforce rules and regulations pertaining to the
operations of such schools.

219. The situation therefore empowered the PTA to


disburse from the account without adhering to laid down
rules and regulations.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


65 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
220. We recommended that henceforth all monies
collected be paid into the school’s designated account
under strict supervision of the Regional Education Office.

COMPUTER SCHOOL SELECTION PLACEMENT


SECRETARIAT (CSSPS)
Duplicated unsold scratch cards – GH¢1,206,588.00
221. We observed that between 2010 and 2012 a total of
645,900 scratch cards were printed by Jokwat Printing
Press to be used by Junior High School students to enable
them print their placement forms.

222. Out of the 645,900 scratch cards, 174,698 were sold,


leaving a balance of 471,202 valued at GH¢1,206,588.00
which could not be sold due to duplication by the printer.
These were sent to GES stores on 14 March 2014 for safe
keeping.

223. By a memo dated 5 March, 2014, the former Head


of CSSPS indicated that the unsold cards would be used
by the 2014/2015 B.E.C.E candidates but were not used.

224. According to the current Head of CSSPS, there was


duplication of scratch cards which therefore necessitated
its return to the stores.

225. Failure to use the cards for its intended purpose


may result in a loss of GH¢1,206,588.00 to the state.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


66 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
226. We recommended that the total cost should be
recovered from the approving authorities at GES.

Absence of fire-fighting equipment and disaster


recovery plan
227. Regulation 1305 of Stores Regulations, 1984 states
“it shall be the duty of all officers in charge of depots or
stores; generally to ensure that adequate firefighting
equipment is provided and that such equipment is
regularly tested, at least once a year.

228. A physical inspection of the premises of the CSSPS


revealed that there were no fire extinguishers to combat
any fire outbreak. We further discovered that there were
also no smoke detectors and neither was there a disaster
recovery plan to protect their expensive equipment and
other assets.

229. In our view, absence of smoke detectors and fire


extinguishers could lead to loss of lives and properties in
case of any fire outbreak. This could also affect the
country’s educational system in case there is disruption in
the placement of students into the Senior High Schools
system.

230. We recommended to management to strictly


adhere to the regulation by procuring fire extinguishers
and fire alarms to safeguard lives and properties while
Annual Report of the Auditor-General on the Public Accounts of Ghana –
67 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
staff should be trained on the use of the fire fighters.
Management was also urged to put in place a disaster
recovery plan to protect such sensitive national assets.

REGIONAL EDUCATION OFFICE – GREATER


ACCRA
Funds not fully Accounted for by NGOs – GH¢24,174.10
231. Regulation 53 of the FAR (2004) (L.I. 1802)
stipulates that “official cash balance shall not be used for
any private purpose including the encashment of cheque”.
The Donor’s (UNICEF) Policy Guidelines also specifies
that funds should be used according to what has been
approved in the “Annual Work Plan. “

232. Contrary to the above requirements, we observed


that an amount of GH¢24,174.10 out of a total of
GH¢128,545.00 released to some Non-governmental
organisations (NGOs) through the Greater Accra Regional
Education Office as a support for the mobilization of
Senior High Schools in the region on Ebola and Cholera
were not fully accounted for. Below are the details.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


68 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Name of NGO Amount Amount Diff.
Released Accounted For
(GH¢) (GH¢) GH¢
Christian 65,559.00 39,722.70 19,797.00
Council of
Ghana
Light 24,977.00 20,600.00 4,377.00
Foundation
Needy 34,009.00 34,009.00 -
Foundation
Total 125,545.00 94,331.10 10,039.20

233. We attributed the irregularity to lack of


supervision and monitoring of the organisations by the
Implementing Partner.

234. This could however lead to erosion of confidence


reposed by the Donors in the State.

235. We urged management to ensure refund of


GH¢24,174.10 by the NGOs to UNICEF.

GHANA EDUCATION SERVICE


NINGO – PRAMPRAM DISTRICT
EDUCATION SERVICE
Unreceipted capitation grants – GH¢138,938.18
236. During our examination of the Capitation Grant
records, we noted that payments totalling GH¢138,938.18
made to various Schools within the district were without
Annual Report of the Auditor-General on the Public Accounts of Ghana –
69 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
any form of acknowledgement and signed pay list. This
contravened Regulation 16(a) & (b) Part VI, of the
Financial and Accounting Instructions for Schools, Offices
and Units and Regulation 39 (2) of the FAR, 2004.

237. We advised that the District Accountant should


obtain official receipts from the beneficiary Schools to
acknowledge receipt of the funds or the total amount be
refunded to chest.

Unsupported payment vouchers – GH¢33,047.00


238. We noted during examination of the payment
vouchers that a total of GH¢33,047.00 paid for various
activities were not properly acquitted with expenditure
records. This contravenes Regulation 39(2c) of the
Financial Administration Regulations 2004 (L.I. 1802). We
could not as a result ascertain the authenticity of the
transaction.

239. We urged management to produce the relevant


documents to authenticate the transactions, failing which
the GH¢22,047.00 should be recovered from the
Accountant and the District Director.

Unretired Imprest - GH¢9,860.00


240. Various payments totalling GH¢9,860.00 advanced
to some officers to undertake specific programmes had

Annual Report of the Auditor-General on the Public Accounts of Ghana –


70 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
not been accounted for, contrary to Regulation 13(c) of the
Financial Administration Regulations 2004 (LI 1802).

241. We recommended that management should


prevail on the officers concerned to either account for the
imprest or refund the amount to the District coffers.

Wrongful Deduction of Bank Charges on Capitation


Grants GH¢1,072.81
242. A directive was issued and signed by the Ag.
General Manager; Mrs. Doris Wunu, to all GCB Bank
branches dated 5 October 2010, and copied to the Director-
General of Ghana Education Service - Accra, waiving bank
charges on all Capitation Grants account with GCB Bank
branches throughout the country. This was to take effect
from 2011 Academic Year until further notice.

243. We, however, noted that the Tema Main Branch of


GCB Bank made deductions from the capitation grants
between August 2014 and April 2016 to the tune of GH¢1,
072.81, as bank charges, contrary to the directive.

244. We recommended that management should draw


the attention of the Tema Branch of GCB Bank to the
directive and ensure a refund of the wrongful deductions
to chest.

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71 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
REGIONAL EDUCATION OFFICE, HO
Abandoned unserviceable vehicle
245. Regulation 1608 of stores Regulations 1984 states
inter alia that government vehicle shall be parked in
garages provided for them at close of work.

246. Our review of records disclosed that an


unserviceable vehicle Toyota Hilux No. GV2530 – Y
belonging to GES Regional Office-Ho was parked at
Asukwakwa premises.

247. The lapse was due to unavailability of funds to


repair the vehicle and also the Regional Director’s failure
to tow the vehicle to the office.

248. The condition of the vehicle could deteriorate


faster with higher risk of pilfering the parts as the vehicle
continued to be parked outside the service premises.

249. We advised management to source for funds for


repair works or seek approval to auction it.

250. Management accepted our recommendation for


compliance and stated that the Toyota Hilux GV-2530Y
was duly put under the supervision of the Headmaster of
Asukawkaw SHS. Furthermore, management vide letter
No. GES/VR/76/Vol.11/43 of 14 December, 2016 is

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72 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
seeking funds from Volta Regional Coordinating Council
to repair the vehicle.

Payment of Judgement Debt – GH¢45,474.00


251. Regulation 12 of the FAR, 2004 (L.I. 1802) states
that “A person entrusted with custodial duties for public
and trust moneys shall protect 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”.

252. Our examination of payment vouchers revealed


that on 12/02/2016 an amount of GH¢45,474.00 was paid
from the GES, Regional office Culture Account at G.C.B
Bank, Ho, to Blessed Company Ltd. This was in response
to a Garnishee Order (NISI) from the High Court of
Justice, Ho.

253. Management however explained that the Volta


Regional Education office in April, 1997 awarded a
Contract to Messrs. Blessed Company Limited for the
construction of a Guest House. Though the project was
completed the contractor was not paid owing to lack of
funds. The case was taken to court and the judge awarded
cost against GES-Headquarters through Garnishee Order.

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73 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
254. The judgement debt could have been avoided if
officials at post were diligent.

255. We recommended that a thorough investigation


should be conducted and any officer found to have
negligently caused the judgment debt should be
surcharged.

GHANA EDUCATION SERVICE – KPANDO


Motor bike Debtors – GH¢7,815.00
256. Regulation 110 of the FAR, 2004, L.I. 1802, requires
the Head of department to ensure that advances granted
are fully recovered in accordance with appropriate
agreement.

257. The Directorate created a Motorbike Revolving


Scheme to ensure that staff of the Directorate benefit from
a hire-purchase agreement for the purchase of motorbikes.
The monthly installment were to be made for a period of
two years starting from 2011. As at the time of writing this
report, eight officers were indebted to the scheme to a
total of GH¢7,815.00 as detailed below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


74 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Name Date Date of Cost of Amount Balance
Taken last Bike Paid
Payment
Tsuiatofe 31/01/11 27/11/12 1,620.00 670.00 950.00
Stephen
Safo 31/01/11 24/12/15 1,410.00 1,260.00 150.00
Charity
Jerry 1/06/12 14/09/16 2.000.00 1.620.00 380.00
Nyame
Adom
Eric Fiah 1/06/12 24/06/16 2.000.00 1,270.00 730.00
Shittor 06/09/13 07/06/16 2.040.00 730.00 1,310.00
Micheal
Yaokumah 06/09/13 10/08/15 2.340.00 1,683.00 657.00
Selorm
Bansah K. 06/09/13 10/08/15 2.340.00 1,690.00 650.00
Samuel
Kedike 11/09/14 15/02/16 5,375.00 2,388.00 2,988.00
Franklin
Total 19,126.00 11,311.00 7,815.00

258. This anomaly deprived others from benefiting


from the scheme which was meant to motivate staff.

259. The default in payment was a pointer to eminent


collapse of the Scheme.

260. We recommended to management to take steps to


recover the moneys or block their salaries to compel them
to pay back.

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75 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
261. Meanwhile, Management had written to the
individual staff concerned for refund.

GHANA EDUCATION SERVICE – TUMU


Outstanding advances – GH¢1,450.00
262. Regulation 104 of the Financial Administration
Regulations 2004 states that a head of department
authorised to administer a class of advances shall ensure
that advances are duly recovered in accordance with the
regulations or agreement relating to them.

263. Our examination of the staff advances/loans


ledger of the Ghana Education Service – Tumu revealed
that four employees continued to owe the Directorate an
amount of GH¢1,450.00 being advances granted them as
far back as 2014, as detailed below:

Date of Received Payee Amount


GH¢

2014 Zuwera Adama 300.00


2014 Gan Godfred 50.00
2014 Ibrahim Abdul Kadu 100.00
16/09/15 Robert Yelman 1,000.00
Total 1,450.00

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76 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
264. We noted that the Accountant’s failure to enforce
the provisions of Regulation 104 of the FAR 2004, as the
cause of the irregularity, a situation that had denied the
GES of GH¢1,450.00 from carrying out its planned
activities since 2014.

265. We urged management to take immediate steps to


recover the outstanding advances from the affected
employees or the amount recovered from the authorising
officer.

GHANA EDUCATION SERVICE – KRACHI WEST


Unpresented Payment Vouchers – GH¢293,669.58
266. Regulation 1(1) of the Financial Administration
Regulations (FAR) 2004 (LI 1802) provides that “Any
public officer who is responsible for the receipt, custody
and disbursement of public and trust money shall keep
proper records of all transactions and shall produce
records of the transactions for inspection when called
upon to do so by the Minister, the Auditor-General, the
Controller and Accountant-General or any officers
authorised by them”.

267. During our audit of the financial records of the


Directorate, we noted that 83 payment vouchers
amounting to GH¢293,669.58 were not presented for audit
in flagrant disregard of the regulation quoted above.

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77 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
268. The overall effect was that the audit could not
authenticate the payments, hence created doubt about the
expenditure.
269. Mr. Peter Ayitey, the District Accountant
responded that most of the unpresented vouchers were
raised during his predecessor, the Late Mr. Emmanuel
Kpogli’s period as Accountant of the Directorate.

270. We recommended that the schedule officer, Mr.


Ayitey, should search for the PVs and make them
available to this office for audit scrutiny, failing which the
supervising Director should refund the amount involved.

Misapplication of GPEG funds – GH¢94,272.20


271. Section 2.2(a) of the Project Implementation
Manual of the Ghana Partnership for Education Grant
(GPEG) states in part that,”… for each tranche of funds
received by a District, they are expected to prepare a work
plan to support the disbursement. The work plan is based
on the approved programme of work (APW). These work
plans should comply with the following: The activities
should have been catered for under the GPE Funding in
the Approved APW. Activities which are not listed in the
Approved APW should not be covered under this
programme.”

272. Contrary to the above, we observed from


expenditure records that, a sum of GH¢94,272.20 was used
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December 2016
to pay for programmes and activities which were either
not in the Annual Programme of Work (APW) or part of
the menu of activities for the District Grants.
273. The practice was not only irregular, but also sends
wrong signals to the Donors who were likely to
discontinue any such donations in future.

274. We recommended that, the District Directors,


Budget Officer and Accountants in the persons of Messrs.
Michael K. Gbologah, Abdul Mumin Hammed Imoro,
Emefa Afari, and Peter Ayitey should be jointly held
accountable for the amount misapplied. Furthermore, the
District Director should ensure the early refund of the
money to the GPEG Account.

Unretired imprest – GH¢74.889.99


275. We noted that a total of GH¢62,052.59 released to
eight officers for various official duties were not
accounted for.

276. The omission contravened regulation 283 (b) of the


Financial Administration Regulations (FAR) 2004 (L.1.
1802) which categorically states that, “Special Imprests,
issued for making a particular payment or group of
payments which must be fully retired by the date
specified in the approval to operate the imprest.” Also
paragraph 4.10 of the Project Implementation Manual of
the GPEG requires funds to be accounted for within a
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79 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
period of three working days after the performance of an
activity.

277. We blamed the omission to management’s failure


to pursue the payees to account for the funds.

278. Similarly, two Supervisors of Lambussie GES


failed to account for GH¢12,837.40 out of a total of
GH¢13,622.40 released to them for programmes,
monitoring and evaluation.

279. We advised management to ensure that the


officers concerned fully accounted for the monies involved
or converted into an advance and charged to their
personal account.

280. Management responded that they will ensure the


supervisors concerned fully account for the differences.

Maintenance of auctioned vehicle – GH¢29,117.00


281. Our audit revealed that vehicle No. GV 1416 Q
was auctioned on 12 August 2008 to Mr. Buadi Alexander.
The Regional Director directed that the vehicle should be
transferred to the buyer, Mr. Buadi Alexander.

282. Examination of payment vouchers revealed that


GH¢29,117.00 was used to repair the same vehicle after it
had been auctioned. Our enquiry revealed that the District
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80 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Director, Mr. Gabriel S. Kploanyi failed to hand over the
vehicle to Mr. Alexander Buadi.

283. We recommended that the cost incurred on the


repair work should be recovered from the former Director
Messrs. Gabriel S. Kploanyi and his accomplices. Also, the
vehicle should be handed over to the new owner.

Unremitted tax – GH¢2,373.65


284. Section 87(1) of Internal Revenue Act, 2000 (Act
592) states that, “… a withholding agent shall pay to the
Commissioner a tax that has been withheld or that should
have been withheld under this Subdivision within 15 days
after the end of the month in which the payment subject to
withholding tax is made by the withholding agent.”

285. Contrary to the above, the Directorate failed to


remit tax of GH¢2,373.65 withheld from a payment of
GH¢47,473.00 made to Paramount Service for the supply
of six motor bikes, 100 bags of cement and 30 packets
roofing sheets.

286. We recommended that the Directorate should


remit all withheld taxes to GRA to avoid sanctions.

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81 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
DISTRICT EDUCATION OFFICE – AKATSI
Payment Vouchers Not Pre-Audited – GH¢166,381.00
287. Section 16(3) of the Internal Audit Agency Act,
2003 states that “An internal audit unit established shall in
accordance with this Act and standards and procedures
provided by the Agency, carry out an internal audit of its
MDA or MMDA and shall submit report on the internal
audit it carries out to the Director-General of the Agency.”

288. Contrary to the above provision, we observed that


payment vouchers raised to pay GH¢166,381.00 were not
subjected to pre-audit before payment.

289. We urged management to ensure that pre-auditing


duties are effectively performed.

290. Management reiterated that necessary measures


are being put in place to ensure that payment vouchers are
pre-audited before payments are effected.

GHANA EDUCATION SERVICE – NKWANTA


Un-receipted payments – GH¢21,096.00
291. An amount of GH¢21,096.00 was paid as school
fees on behalf of 72 Untrained Teachers Diploma in Basic
Education (UTDBE). No official receipts were issued by
the beneficiary School, Peki College of Education to
substantiate the payment, contrary to Regulation 39(2c) of
the FAR 2004 (LI 1802) which states that “the head of

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82 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
accounts section of a department shall control the
disbursement of funds and ensure that transactions are
properly authenticated to show that amounts are due and
payable”.

292. We recommended to management to follow up for


the official receipts to authenticate the payment.

GHANA EDUCATION SERVICE JIRAPA


Failure to Obtain Receipts in Support of Payment made -
¢372,651.96
293. Regulation 39(2c) of the Financial Administration
Regulations (FAR) provides that, “the head of the
Accounts Section of a department shall control the
disbursements of funds and ensure that transactions are
properly authenticated to show that amounts are due and
payable”.

294. We, noted that six disbursements totalling


GH¢372,651.96 were made without the corresponding
official receipts to support the payments. The authenticity
of these payments could therefore not be confirmed.

295. We urged the District Director to either


authenticate the transaction by obtaining the relevant
receipts to support the expenditure or be held liable and
accordingly surcharged with the amount.

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83 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA EDUCATION SERVICE – GWOLLU
Unreceipted Payments – GH¢22,140.00
296. Regulation 39(2c) of FAR, 2004 stipulates that ‘the
head of the accounts section of a department shall control
the disbursement of funds and ensure that transactions are
properly authenticated to show that amounts are due and
payable.’

297. We observed that a total amount of GH¢22,140.00


was paid to the Director General of GPEG vide PV. No.
08/05/16 of 26/05/16.

298. However, this payment was not acknowledged


with the relevant official receipt to authenticate the
payment.

299. In the absence of an official receipt, we were


unable to confirm whether the transaction took place place
or not.

300. We requested that the relevant supporting


documents should be obtained from the Director- General
of GPEG to properly acquit the payment or the total
amount of GH¢22,140.00 should be recovered from the
authorising officer.

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84 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Failure to withhold tax - GH¢869.20
301. In violation of Section 87(1) of Internal Revenue
Act 2000 (Act 592), the Accountant failed to withhold 5%
tax of GH¢869.20 on total payment of GH¢17,384.00 made
to some suppliers and service providers.

302. We urged management to ensure that in future the


Accountant should withhold taxes from payees of goods
and services and remit the Commissioner, Ghana Revenue
Authority with the amount.

GHANA EDUCATION SERVICE – WA


Monies not Accounted for – GH¢17,114.00
303. Regulation 39(2) of the FAR, 2004 (LI 1802)
requires that the head of the accounts section of a
department to control disbursements of funds and ensure
that transactions are properly authenticated to show that
amounts are due and payable.

304. Notwithstanding the above requirement, we noted


that out of a total amount of GH¢38,546.00 released for the
payment of various activities, GH¢17,114.00 was short
accounted for.

305. Monies not accounted for may not have been used
for their intended purposes.

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85 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
306. We therefore recommended that the payees who
failed to account for funds should be held liable.

Misapplication of Funds – GH¢52,808.00


307. Regulation 179(1) of the Financial Administration
Regulations, 2004 (LI 1802), stipulates that “Except as
provided for in the Financial Administration Act, 2003,
(Act 654), and these Regulations, a head of department
may not authorise payment to be made out of funds
earmarked for specific activities for purposes other than
those activities.”

308. We noted that management used a total amount of


GH¢52,808.00 meant for the payment of earmarked
activities stipulated under the Sports and Cultural
accounts for payments on recurrent expenditures.

309. The misapplication of GH¢52,808.00 could prevent


the institution from carrying out the activities for which
the budget was approved.

310. We therefore recommended that the amount


should be transferred back to their appropriate accounts.

311. We further advised the Regional Director to desist


from misapplying funds.

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86 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
312. Management stated that there are efforts to
transfer the funds into their appropriate accounts.

GHANA EDUCATION SERVICE – JIRAPA


Procurement without Alternative Quotations –
GH¢154,105.44
313. Section 43(1) of the Public Procurement Act, 2003
(Act 663) states that, “the procurement entity shall request
quotations from as many suppliers or contractors as
practicable, but from at least three different sources.”

314. On the contrary, we noted for the period under


review that the Directorate, without prior approval of the
Public Procurement Authority, made various
procurements amounting to GH¢154,105.44 without
obtaining alternative quotations.

315. We recommended that the Regional Director


should ensure that all future contracts are competitive and
transparent in order to obtain value for money.

GHANA EDUCATION SERVICE – LAMBUSSIE


Procurement without Tender GH¢45,000.00
316. Section 47(1&2) of the Public Procurement Act
requires procurement entities to invite tenders or to
prequalify tenders, or an invitation to prequalify to be

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87 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
published in at least two newspapers of wide national
circulation.

317. Contrary to the above, we observed that, a contract


for the supply of Dual Desks involving GH₵45,000.00 was
not published in two newspapers of wide national
circulation even though the contract sum was above the
threshold required for NCT.

318. Management’s inability to ensure that, the contract


received wider publication rendered the contract non-
competitive.

319. We therefore recommended that, in future


contracts, the provisions in Act 663 should be complied
with to obtain value for money to which management
agreed.

METROPOLITAN EDUCATION OFFICE – KUMASI


Failure to Renew Annual Operational Licenses –
GH¢16,540.00
320. It is the Metro Education policy that all private
schools operating within the Kumasi Metropolis pay
annual operational license fee of GH¢20.00.

321. We however noted that out of 960 registered


private schools operating in the metropolis, only 133
renewed their license fee of GH¢2,660.00 up to 31

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88 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
December 2016, leaving 827 with an indebtedness of
GH¢16,540.00.

322. Management explained that the office lacked


logistics such as transport and fuel to enable schedule
officers go to the schools to enforce payment of the
operational license fees.

323. We recommended that punitive measures should


be put in place to control recalcitrant private school
operators to renew their operational licenses annually.
Additionally, management should recover the
outstanding amount of GH¢16,540.00 from the defaulting
schools.

GHANA EDUCATION SERVICE – NEW EDUBIASE


Revenue not accounted for – GH¢60,475.10
324. Regulation 1 of FAR, 2004 (LI 1802) states that, any
public officer who is responsible for the conduct of
financial business on behalf of the Government of Ghana
the receipt, custody, and disbursement of public and trust
moneys or for the custody, care and use of public stores
shall keep proper records of all transactions and shall
produce records of the transactions for inspection.

325. On the contrary, we noted that, an amount of


GH¢38,475.10 collected in November 2015 as printing fees
from schools which participated in BECE examinations in
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89 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
the district, had not been accounted for by the
examination committee.

326. Again, the Fomena GES Directorate disbursed a


total amount of GH¢37,000.00 from the GETFUND
projects to pay registration fees of 2016 BECE candidates
instead of parents of the pupils.
327. At the instance of the Audit, Management
refunded GH¢15,000 leaving a difference of GH¢22,000.00.

328. The cause for the lapse was that the examination
committee handled the collection and disbursement of the
fees without keeping proper records on them.

329. Funds earmarked for specific activity such as


printing of examination papers could be misappropriated
if proper records were not kept.

330. We recommended that the District Director should


ensure that, the Committee members accounted for the
printing fees by maintaining proper records and
providing expenditure details.

GHANA EDUCATION SERVICE – FOMENA


Unsupported payments – GH¢11,000.00
331. Regulation 39(2c) of FAR, 2004 requires that the
head of the accounts section of a department shall control
the disbursement of funds and ensure that transactions are
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90 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
properly authenticated to show that amounts are due and
payable.

332. Contrary to the above, we observed that a total


amount of GH¢5,500.00 was paid in September 2015 via
voucher No. 04/09/15 for the supply of roofing sheets by
Yaw Fosu Enterprise but no official receipt was obtained
by the accountant in support.

333. Similarly, We observed that the Obuasi GES


Accountant made total payments of GH¢5,450.00 for
refreshment and others in July and August 2015 but failed
to obtain and attach expenditure particulars such as
receipts, invoices and others to four payment vouchers
contrary to Regulation 39 (2c) of FAR, 2004.

334. The lapse occurred because the accountant failed


to insist on the collection of the receipt from the payee.

335. This anomaly could result in payments for


expenditure not incurred leading to loss of funds.

336. We recommended that the official receipts be


obtained and attached to the payment voucher failure of
which the amount be recovered from the Accountant.

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91 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Non-Competitive Procurement – GH¢99,486.99
337. Section 43(1) of the Public Procurement Act 2003,
Act 663 requires the procurement entity to request
quotations from as many suppliers or contractors as
practicable but at least three different sources.

338. We however, noted that payments for goods and


services totalling GH¢99,486.99 made by the four
Directorates of GES as shown below were without
alternative quotations, neither did Management seek
approval from the PPA to engage in sole sourcing as
required by Act 663.

District Office Amount (GH¢)


GES Obuasi 11,873.99
Navrongo Municipal Education 15,645.00
GES Binduri 65,854.00
District Education Office, Zebilla 6,150.00
99,486.99

339. We recommended to management of the


Directorates to ensure strict compliance with Section 43(1)
of the Public Procurement Act 2003 (Act 663) as the
practice could not enhance value for money.

Failure to obtain VAT invoices/receipts GH¢37,722.50


340. All government departments are enjoined by
Regulation 183(4) of the Financial Administration

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92 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Regulations 2004, (LI 1802) to procure goods and services
from only VAT registered persons in order to generate
revenue for the State.

341. Our audit of the GPEG account disclosed that


management disbursed funds totalling GH¢37,722.50 on
refreshment, servicing of computers and others from non-
VAT registered entities, thereby avoiding the payment of
VAT to the State.

342. We recommended to management should ensure


strict adherence to the provisions in the Procurement Act.

Failure to obtain VAT receipt from the GRA –


GH¢6,060.73
343. Section 19(1) of the Value Added Tax Act, 1998
(Act 546) states that ‘a taxable person shall on making
taxable supply of goods and services issue to the customer
or the person supplied, tax invoices in such forms as shall
be prescribed by regulations.’

344. Contrary to the above provision, we noted that


management of the Directorate paid GH¢6,060.73 as VAT
on purchases totalling GH¢34,634.27 but failed to obtain
VAT receipts to cover the payment.

345. To avoid loss of revenue to the State, we


recommended that management should obtain the VAT
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93 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
receipts from the suppliers, failing which the amount
should be recovered from the Accountant.

DISTRICT EDUCATION OFFICES


Misapplication of the Culture and sports funds –
GH¢64,459.00
346. Regulation 39(1) of the Financial Administration
Regulations, 2004 (LI 1802) stipulates that “A head of
department shall ensure that moneys are utilized in a
manner that secures both optimum value for money and
the intention of Parliament.”

347. We noted during our audit that management of six


GES District Offices disbursed a total amount of
GH¢64,459.00 from the Culture and Sports accounts as
staff advances, T&T and electricity credit vehicle repairs
which were not related to cultural and sports activities as
shown below:

District Amount Purpose of expenditure


GH¢
Obuasi 13,900.00 Gen. Administration
Sandema 7,299.00 Staff Advances
Navrongo 5,579.00 Payment of conf. fees & Staff
Paga 8,341.00 Vehicle repairs
Bolga 1,020.00 Gen. Administration
Koforidua 28,320.00 Vehicle repairs
64,459.00

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94 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
348. This was due to lack of funds in the administrative
accounts to support the Management of the District
offices.

349. The practice could undermine the purpose of the


sports fund which was to promote both cultural and
sporting activities in educational institutions in the
districts.

350. We recommended for reimbursement of the total


amount misapplied and to ensure strict compliance
henceforth.

DISTRICT EDUCATION OFFICE


Inappropriate procurement method – GH¢1,284,858.94
351. Schedule 3(1) of the Public Procurement Act, Act
663 provides that procurement for goods valued between
GH¢20,000.00 and GH¢200,000.00 shall be by National
Competitive Bidding (NCB).

352. On the contrary we noted that, management of


Paga and Fumbisi Education Directorates made
procurements totalling GH¢479,630.68 and GH¢805,228.26
respectively from 18 different suppliers without subjecting
it to National Competitive Bidding even though the total
value of each supply exceeded the minimum
GH¢20,000.00 as provided for in schedule 3(1) of Act 663.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


95 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
District Office No. of Amount
Suppliers (GH¢)
District Education, Office – 13 805,228.26
Fumbisi
District Education Office – 5 479,630.68
Paga
18 1,284,858.94

353. The procurements were therefore not competitive


and could lead to the Service not obtaining value for
money.

354. We recommended to management to henceforth


subject such procurements to National Competitive
Bidding process. Management should also take the
appropriate sanctions against the officers who caused the
lapse as recommended by Act 663.

DISTRICT EDUCATION OFFICE – PAGA


Breaking of procurement lot – GH¢299,450.00
355. Section 21 of the Public Procurement Act, Act 663,
2003 stipulates 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.

356. Contrary to the above regulation, we noted that


procurements for the supply of 1,130 dual desks valued at

Annual Report of the Auditor-General on the Public Accounts of Ghana –


96 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GH¢299,450.00 was divided into parts and awarded to
four different suppliers as detailed below.
PV Date Award Details Payee Amount
no. Date GH¢
GPEG
04/16 13/6/16 25/11/15 205 Samwaf 54,325.00
Dual Establishment
desks
06/16 13/1/16 25/11/15 220 Woledam 58,300.00
Dual Ent.
desks
12/16 19/1/16 16/11/15 400 Trans –Ecort 106,000.00
Dual company ltd
desks
13/16 26/2/16 25/11/15 305 Abdul 80,825.00
Dual Rahman ltd
desks
Total 1,130 299,450.00

357. The situation was attributed to Management view


that one Supplier would not be able to supply all the
quantity required within the deadline when given the
whole contract.

358. The situation where contracts were divided among


suppliers could result in the service not obtaining value
for money in the procurements.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


97 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
359. We urged Management to desist from the practice
and ensure compliance with the PPA.

GHANA EDUCATION SERVICE REGIONAL OFFICE,


BOLGATANGA
Payments without works order and Job Certification –
GH¢38,188.30
360. Section 16(1) of the Financial Administration Act,
2003 (Act 654) stipulates that payment shall not be made
for work done, goods supplied or services rendered
whether under a contract or not in connection with any
part of the public service unless in addition any other or
certificate that is required. The head of government
department or any officer authorised by the head of
department certifies that the work has been performed,
goods supplied or services rendered and that the price
charged is according to the contract.

361. We noted contrary that, management made


disbursements on six payment vouchers totalling
GH¢38,188.30 for repairs of official vehicles without works
order and works certificate to attest that the works were
properly done.

362. The practice could also lead to unsatisfactory


works and payment for work not done.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


98 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
363. We urged management to provide jobs order and
certificate of satisfactory work done failing which the
amount be recovered from the Accountant.

BAWKU WEST DISTRICT EDUCATION OFFICE,


ZEBILLA
Un-substantiated payment vouchers – GH¢6,148.89
364. The Binduri District of Ghana Education office
failed to fully substantiate three paid vouchers amounting
to GH¢6,148.89 with receipts contrary to Regulation 39(2c)
of the Financial Administration Regulations, 2004.

365. The irregularity could lead to payment of


fictitious/non-existence debts as well as misappropriation
of funds.

366. We recommended that Management should


ensure that payment vouchers were fully supported with
official receipts failure which the amount be recovered
from the Accountant and the Director.

Transacting Business with Non VAT registered entities-


GH¢12,390.00
367. Regulation 183(4) of the Financial Administration
Regulations (FAR, 2004) states that a Head of department
shall purchase Government store items from only Value
Added Tax (VAT) registered persons or entities and any
department that requires an exemption, strict for any
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99 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
special case shall apply to the Minister with the necessary
justification.

368. We noted that the Binduri District Education Office


purchased VAT items from Non-VAT entities amounting
to GH¢ 12,390.00 contrary to Part VI regulation 183(4) of
Financial Administration Regulations.

369. The failure to deal with only VAT registered


entities/persons deprived the government the VAT
revenue of GH¢12,390.00 needed for national
development.

370. We urged management to ensure that, subsequent


procurement were made from only VAT registered
persons

REGIONAL NON-FORMAL EDUCATION DIVISION -


BOLGA
Disbursements without supporting documents –
GH¢3,550.00
371. Regulation 39(2c) of the Financial Administration
Regulations, 2004 (LI 1802) stipulates that the head of the
accounts section of a department shall control the
disbursement of funds to ensure that transactions are
properly authenticated to justify the payments made.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


100 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
372. We however, noted that, Management made
payments totalling GH¢3,550.00 on three vouchers from
IGF account without supporting the vouchers with the
relevant receipts, invoice, attendance sheets and other
statements of accounts to properly authenticate the
payments.

373. We attributed the anomaly to the laxity on the part


of the Regional Accountant to properly scrutinise the
vouchers.

374. In the absence of the relevant supporting


documents, we could not ascertain whether the funds
were actually used for the purposes intended.

375. Failure to provide official receipts and relevant


supporting documents could result in duplication of
payments and to illegitimate persons or entities.

376. We recommended to management to support the


payment vouchers with the appropriate expenditure
documents, failure of which the amount of GH¢3,550.00
should be recovered from the Accountant and the
Authorising Officer.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


101 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA EDUCATION SERVICE – YENDI
Failure to obtain VAT invoice for VAT paid –
GH¢1,343.59
377. Regulation 21(1) of the Value Added Tax
Regulations which states: “a taxable person shall in
accordance with subsection (1) of section 41 of the Act, on
supply of taxable goods or service to a customer issue to
the customer a tax invoice.”

378. Our audit of Girl Pass Account of the Ghana


Education Service at Yendi however revealed that the
Accountant failed to obtain VAT invoice/receipt from
suppliers to support VAT component of GH¢1,343.59 for
supplies worth GH¢7,677.66.

379. The lapse was caused by the failure of the


Accountant to ensure that VAT invoice/receipt was
obtained to account for the VAT paid.

380. The situation led to a loss of tax revenue totalling


GH¢1,343.59 to the State.

381. We recommended that the Accountant obtained


the VAT Invoices from the suppliers or the amount be
refunded by him.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


102 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Payments without official receipts – GH¢24,551.59
382. Contrary to Regulation 39(2c) of the Financial
Administration Regulations, 2004 (L.I. 1802), we noted
that management failed to obtain official receipts to
authenticate three disbursements of Capitation Grants for
the 3rd term of 2014/2015 academic year totalling
GH¢24,551.59 made to various Basic Schools in the District
due to weak supervision over the work of the Schedule
Officer responsible for processing such payments.

383. This situation could result in diversion of funds to


the detriment of the beneficiary schools.

384. We advised management to pursue the Basic


Schools involved to provide official receipts for the
releases totalling GH¢24,551.59. We also urged
management to institute control measures to ensure
prompt submission of official receipts to avoid a
recurrence of the issue.

Payments without official receipts – GH¢20,587.11


385. Regulation 39(2c) of the Financial Administration
Regulations, 2004 (L.I. 1802) stipulates that ‘‘the head of
the accounts section shall control the disbursement of
funds and ensure that transactions are properly
authenticated to show that the amounts are due and
payable’’.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


103 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
386. We noted that management failed to obtain official
receipts to substantiate five disbursements of Capitation
Grants totalling GH¢20,587.11 which were made to
various Basic Schools in the District through five banks
due to weak supervision over the work of the Schedule
Officer responsible for processing such payments; a
situation which could result in diversion of funds to the
detriment of the beneficiary schools.

387. We advised management to ensure that the


affected Basic Schools provided official receipts in
acknowledgement of the amount of GH¢20,587.11.

388. We also urged management to strengthen controls


over the work of the schedule officer to prevent a
recurrence of the anomaly.

REGIONAL EDUCATION OFFICE – KOFORIDUA


Failure to transfer headquarters portion of capitation
and special levies to the Director- General of Education –
GH¢163,252.28
389. The Ghana Education Service (GES) Policy for
disbursement of Capitation and Special Levies provides
for the transfer of a portion of the Capitation Fees and
Special Levies to the Director-General at Headquarters.

390. Management of the Regional Education Office,


Koforidua, however, contravened the policy by failing to

Annual Report of the Auditor-General on the Public Accounts of Ghana –


104 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
remit to the Director- General, Headquarters’ portion of
Capitation and Special Levies (Sports and Culture) of
GH¢163,244.95 out of a total collection of GH¢208,211.98
from Directors and Heads of Senior High Schools for the
period 1/1/2016 to 31/08/2016. This situation denied the
GES Headquarters timely use of the amount of
GH¢163,244.95 for programmed activities.

391. The Accounts Officer attributed the lapse to non-


receipt of funds from Headquarters for Goods and
Services that compelled the office to fall on the amount to
fund operations.

392. We recommended that the Regional Director


should remit the total amount of GH¢163,244.95 to the
Director-General and also ensure that the Regional Office
was allocated with the requisite funds to finance
operations.

EDUCATION SERVICE – AKWATIA


Impropriety in Award of Contracts – GH¢44,175.00
393. Section 35(1) of the Public Procurement Act, 2003
(Act 663) states that “A procurement entity shall procure
goods, services or works by competitive tendering except
as provided in Section 35(3) which states that “If the
procurement entity uses the method of procurement other
than competitive tendering, it shall include in the record

Annual Report of the Auditor-General on the Public Accounts of Ghana –


105 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
required a statement of the grounds and circumstances on
which it relied to justify the use of that method”.

394. Contrary to the above provisions, our review of


awards of the contract procedures disclosed that there was
no signed contract documents for the supply of building
materials costing GH¢44,175.00 meant for the construction
of a 3-Classroom Block and Bridge at Amarkom L/A and
Sekyikrom which management paid for on 2 February
2015.

395. We advised that management should ensure


compliance with the Procurement Act in the award of
future contracts to achieve value for money.

Unacquitted Payment Vouchers – GH¢54,022.73


396. Regulation 39 (2c&d) of the FAR, 2004 (L.I, 1802)
states that “The head of the accounts section of a
department shall control the disbursement of funds and
ensure that transactions are due and payable and any
order for disbursement that does not meet these
requirement is rejected”.

397. We noted that fourteen payment vouchers


totalling GH¢54,022.73 were not properly acquitted
contrary to the above regulation.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


106 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
398. The lapse was due to lack of supervision by
management to ensure that payment vouchers were
properly acquitted; a situation which could result in
misuse of funds by payees, and/or payment for
goods/services not supplied or delivered.

399. We urged management to ensure that expenditure


documents were provided to authenticate payments;
failing which the Spending Officer/Accountant should
refund the amount involved to chest.

Items not routed through Stores – GH¢82,565.56


400. Regulation 183(3) of the FAR, 2004 (LI 1802) states
that “A head of department shall be accountable for the
proper care, custody and use of Government stores from
the time of acquisition until they have been used or
otherwise disposed of in accordance with these
Regulations”.

401. Contrary to the above, our review of the payment


vouchers disclosed that purchases of store items worth
GH¢82,565.56 were not routed through store records due
to management’s weak internal control measures, a
situation which could result in diversion of stores.

402. In the circumstances, we were unable to determine


whether the items were purchased and used in the interest
of the beneficiaries.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
107 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
403. We advised management to ensure that the items
were covered with store records or refund the amount
involved to chest.

NON-FORMAL EDUCATION DIVISION – NSAWAM

Vehicle taken away from the division’s premises


without authority
404. Regulation 2(h) of the FAR, 2004 (LI 1802) enjoins a
head of government department to be responsible for the
proper care; custody and economic use of government
assets and stores used by the department.

405. Our audit disclosed that a Nissan pick-up vehicle


with registration number GV 575W allocated to the
Division to facilitate operations was taken away from the
premises of the Division on 3 November 2016 by Mr. Mark
Anthony Frimpong (an Auctioneer) of Frimsco Mart and
Mr. Sylvester Aidoo, the Eastern Regional Accountant to
an unknown destination. We did not sight any letter
authorising the diversion of the said vehicle from the
Division.

406. We noted the indifferent attitude of the Municipal


Coordinator to make a follow up to the Regional Office to
ascertain the authority for the transfer, a situation which
could lead to loss of the vehicle to the Division and the
State.

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108 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
407. We urged management to officially notify the
Regional Office to locate and produce the vehicle for
official use, failing which the Municipal Coordinator
should be held accountable for the vehicle.

Unconfirmed lodgments of proceeds from auction into


the appropriate bank account – GH¢670.00
408. Regulation 13(a) of the FAR, 2004 states that “A
head of department shall undertake custodial duties from
the time moneys are paid to a collector to the time when
the moneys are lodged into the Consolidated Fund.

409. We however noted that five broken down motor


bikes belonging to the Division were auctioned by Mr.
Mark Anthony Frimpong (an Auctioneer) of Frimsco
Mart-Accra and Mr. Sylvester Aidoo the Eastern Regional
Accountant of the Division without any authorization
from the Office of the Chief of Staff. There was also no
evidence that the amount of GH¢670.00 realised from the
auction sale was paid into the appropriate accounts by the
auctioneer contrary to Regulation 13(a) of the FAR, 2004.

410. The irregularities which were due to


management’s failure to ensure compliance with proper
procedures for the auction of public properties and
accounting for the proceeds led to the loss of the revenue.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


109 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
411. We recommended that, management should
provide authorization from the Office of the Chief of Staff
for the auction of the motor bikes as well as evidence that
the proceeds had been lodged into the designated bank
account failing which the two should be sanctioned.

ASUNAFO SOUTH DISTRICT EDUCATION


DIRECTORATE
Unsupported payments – GH¢5,970.00
412. Regulation 39(2c&d) of the Financial
Administration Regulations require the Head of the
accounts section to control disbursement and to ensure
that transactions are properly authenticated to show that
the amounts are due and payable and any disbursement
that does not meet the requirement is rejected.

413. Management of the Directorate however, made


two payments under the Ghana Global Partnership for
Ghana Grant in respect of monitoring, totalling
GH¢5,970.00 but failed to provide monitoring reports as
well as signed list from circuit supervisors to show that
the amount was actually used for the intended purposes.

414. Payments not properly substantiated could result


in payment for services not rendered to the directorate.

415. We recommended that in the absence of the


relevant supporting documents such as receipts, invoices

Annual Report of the Auditor-General on the Public Accounts of Ghana –


110 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
signed list etc. the amount should be refunded by the
Director and the Accountant.

Unpresented payment voucher-GH¢7,433.43


416. Regulation 1(2) of the Financial Administration
Regulations (FAR), 2004 (LI 1802) states that “A public
officer who fails to keep or produce any records under
Sub regulation (1) is in breach of financial discipline as
defined in Regulation 8(1).

417. Contrary to the above, the Accountant failed to


produce a payment voucher used in disbursing
GH¢7,433.34 with cheque No. 578200 of 06 September
2016 for District Adolescent Reproductive Health
activities.

418. Total disregard for the regulations could result in


misappropriation or diversion of funds.

419. In the absence of the payment voucher, the District


Director and the Accountant should be surcharged with
the amount involved and sanctioned in accordance with
Regulation 8(1) for breach of financial discipline.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


111 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MUNICIPAL EDUCATION DIRECTORATE –
KINTAMPO
Unearned salary – GH¢3,682.62
420. Regulation 297(1e) of the Financial Administration
Regulations states that “A head of department shall cause
the immediate stoppage of payment of salary to a public
Servant when that public servant has retired or
separated’’.

421. Our examination of the validated salary payment


vouchers disclosed that, Mr. Adu Gyamfi Isaac, a Senior
Superintendent II of the Directorate, who retired on 1 July,
2016 was paid two months unearned salary of
GH¢3,682.62.

422. Failure on the part of management to take action


for the deletion of the name from the payroll resulted in
the anomaly thereby causing the State to lose the amount.

423. We recommended to management to recover the


amount from Mr. Adu Gyamfi and pay same to
Government’s Salary Suspense Account and have his
name deleted from the payroll.

Failure to withhold tax – GHȼ2,861.77


424. Section 84(2) of the Internal Revenue Amendment
Act 814 provides that, where a withholding tax agent pays
a sum to another person for supply of goods and services

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112 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
which exceeds GH¢500.00, the person making the
payment shall withhold tax on the gross amount.

425. On the contrary, our review of the payment


vouchers revealed that the Accountant failed to withhold
tax amounting to GH¢2,861.77 from payments totalling
GH¢93,392.50 made for goods and services.

426. This omission denied the State an amount of


GHȼ2,861.77 as tax revenue which could have been used
to support the Government’s developmental programmes.

427. We recommended that management should ensure


strict compliance with the law.

NKORANZA NORTH DISTRICT EDUCATION


DIRECTORATE – BUSUNYA
Payments not accounted for – GH¢2,700.00
428. Regulation 39(2c) of the Financial Administration
Regulations (FAR), 2004 (LI 1802) provides that “the head
of the accounts section of a department shall control the
disbursement of funds and ensure that transactions are
properly authenticated to show that the amounts are due
and payable”.

429. On the contrary, our audit disclosed that a


payment voucher with a value of GH¢2,700.00 raised to
pay for goods and services was not substantiated with the

Annual Report of the Auditor-General on the Public Accounts of Ghana –


113 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
appropriate expenditure documents such as receipts,
invoices and honour certificates to authenticate the
transactions.

430. We attributed the lapse to ineffective supervision


on the part of the Accountant.

431. In the absence of relevant documents we


recommended that the total amount involved should be
recovered from the Accountant.

MINISTRY OF HEALTH
HEADQUARTERS
Failure to pay withholding Tax – GH¢2,122,577.69
432. Section 87(1) of the Internal Revenue Act 2000, Act
592 enjoins withholding agents to pay withheld tax to the
GRA within 15 days after the end of the month in which
the payment subject to withholding tax was made.

433. Contrary to the above we noted that a total


amount of GH¢3,283,768.54 withheld as tax for the year
ended 31 December 2015, was not remitted to the Ghana
Revenue Authority (GRA).

434. Delayed payments, apart from attracting penalty,


could deprive the State of timely inflow of funds. At the
instance of the audit, GH¢1,161,190.85 was paid to the
GRA leaving a difference of GH¢2,122,577.69 outstanding.

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114 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
435. We recommended that Management should
ensure strict compliance with the 15 days ultimatum.

KORLE BU TEACHING HOSPITAL


Payment of judgment debt – GH¢245,277.00
436. We noted that management paid a total amount of
GH¢245,277.00 as judgment debt to 25 employees of the
hospital who were wrongfully dismissed by the Hospital
Board.

437. The cost was imposed by the High Court in its


judgment in 2014. Details are shown below:

No. Name Date of Amount


judgement paid
(GH¢)
1. Mark Talongo 27/07/14 36,284.24
2. Kofi Andoh ,, 32,327.20
3. Joseph Aryee ,, 31,145.32
4. Solomon Lomotey ,, 26,100.54
5. MamunaAmadu ,, 4,663.65
6. Abdullah Ibrahim ,, 7,663.88
7. Wodza John Savant ,, 7,663.88
8. Cubu Gilbert ,, 7,019.08
9. Kuma Geoffrey ,, 1,166.79

Annual Report of the Auditor-General on the Public Accounts of Ghana –


115 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
10. Adesu Stephen ,, 1,201.38
11. Torto Joseph ,, 1,201.38
12. Hammond George K. ,, 1,036.71
13. AtawitherAmanga ,, 1,201.38
14. Kumbah Jones Ninfa ,, 1,201.38
15. AdombireAtolae ,, 1,036.71
16. Sintim Kwame George ,, 1,201.38
17. JomoAkurugu ,, 1,036.71
18. MahamaSie ,, 1,036.71
19. Quaye Joseph Agoe ,, 1,036.71
20. Awudi James ,, 1,201.38
21. Aryee Lawrence ,, 1,201.38
22. Sanni Salami ,, 1,036.71
23. MbawiniYakubu ,, 1,201.38
24. OwusuNyarko Isaac ,, 1,067.07
25. Nelson Memorkpor 28/11/14 74,344.18
Total 245,277.13

438. Regulation 39(1) of FAR, 2004 states that a head of


department shall ensure that moneys are utilized in a
manner that secures both optimum value for money and
the intention of Parliament.

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116 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
439. Payment of the judgment debt was an avoidable
and wasteful expenditure which could have been utilized
in the improvement of health care delivery at the hospital.

440. Management should ensure that critical decisions


and actions of such nature on employees are well
considered legally to avoid court actions.

Procurement of sub-standard Out Patient Department


(OPD) forms – GH¢18,260.93
441. Our audit disclosed that, 100 booklets each of
outpatient forms 3 and 4, respectively, valued at
GH¢18,260.93, and procured from Kenweko Enterprise as
far back as 16 December 2013 could not be used by the
hospital.

442. The items were packed on the opened corridor in


front of the Child health stores. We observed that the
quality of the items did not meet the specifications of the
hospital and therefore, could not be used.

443. Follow up on the transactions showed that, the


company involved was registered as dealer in wood
products, bamboo, doors nails and not stationery.

444. Store Regulation 0502(d) states that when goods


are received by a depot it is necessary to check that the
goods are in accordance with the specifications laid down

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117 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
when the order was placed. In case of any doubt
assistance should be sought from the officer who placed
the order.

445. Management however ignored the poor quality of


the items and made full payment for the items they could
not use.

446. The procurement of the sub-standard items had


resulted in wasteful expenditure and loss of public funds.

447. We recommended that Management should cause


the Procurement Officer, Accountant and the storekeeper
to refund the cost of the OPD forms amounting to
GH¢18,260.93.

Outstanding debtors – GH¢106,729.44


448. As at 31 December 2015, the debtors figure for
Korle Bu Hospital stood at GH¢110,925.44 as shown in the
table below:
BMC Staff Social Sundry Paupe Death Abscon Total
welfare (Transfer) rs ders Amount
Polyclini 4,196.00 - 1431.00 655.00 1,024.00 - 7,306.00
c
Accident 15,977.72 53,452.72 - 5,669.05 - 75,099.49
Centre -
Surgical - - - - - 3,386.05 3,386.05
Medical 516.30 1,995.05 16,569.16 - - 6,053.39 25,133.9
Total 4,712.30 17,972.77 71,452.88 655.00 6,693.05 9,439.44 110,925.44

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118 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
449. Our follow up indicated that GH¢4,196.00 had so
far been recovered leaving GH¢106,729.44 outstanding.

450. Regulation 17(1) of FAR requires that the head of


department shall ensure that all Non Tax Revenue is
efficiently collected.

451. We therefore urged management to pursue


recovery of all overdue debts. Also, security should be
improved at the wards to reduce the incidence of
absconding

Rent in arrears – US$7,200.00


452. As at 31 December 2015, the rent indebtedness of
four banks which operated the Automated Teller Machine
(ATM) on the premises of KBTH stood at US$7,200. The
banks were Standard Chartered, GCB Bank, SG SSB, and
Fidelity.

453. Regulation 17(1) of FAR requires a head of


department to ensure that all Non Tax Revenue was
efficiently collected.

454. Delays in collecting rent from these banks on due


dates could result in revenue hold up.

455. We recommended that the Acting Director of


Finance should consistently remind the banks of their
Annual Report of the Auditor-General on the Public Accounts of Ghana –
119 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
indebtedness when due and pursue recovery of the
current outstanding rent of US$7,200.00.

Misappropriation of revenue – GH¢15,700.00


456. Regulation 15(1) of the FAR, 2004 states that any
public officer or revenue collector who collects or receives
public and trust moneys shall issue official receipts for
them and pay same into the relevant Public Fund Bank
Account within twenty-four hours of receipt except in
exceptional circumstances to be identified by the Minister.

457. We however noted that, in August and October


2015, three Revenue Collectors, namely, Benard Ashong,
Dodoo and Carl Kweku Richardson, failed to account for
total revenue of GH¢15,700.00.

458. The supervisor did not inform the Head of Finance


when the Revenue collectors failed to account for the
amount collected. This shows inadequate supervision over
the revenue collectors.

459. Failure to account for the monies collected could


result in loss of revenue to the hospital.

460. We recommended that the Director of Finance


should recover the revenue of GH¢15,700.00 from the
three revenue collectors and should also be sanctioned.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


120 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
CENTRAL MEDICAL STORES - GREATER ACCRA
REGION
Unpresented payment vouchers – GH¢482,792.71
461. Regulation 1(a) of the FAR, 2004 requires a public
officer responsible for the conduct of financial business on
behalf of the Government of Ghana to keep proper records
of all transactions and produce them for inspection when
called upon to do so.

462. Contrary to the above, 15 payment vouchers with


a total face value of GH¢482,792.71 were not presented for
our review:

Date Ref Account Amount


Number Type GH¢
7/1/15 905924 Drug 44,156.25
7/1/15 Drug 41,650.00
12/1/15 905849 Drug 42,074.50
6/1/15 0053 Drug 54,324.60
0054 Drug 77,500.00
0055 Drug 49,533.00
0057 Drug 99,834.97
2/1/2015 605170 PSO 10,000.00
5/1/2015 605110 PSO 1,839.99

Annual Report of the Auditor-General on the Public Accounts of Ghana –


121 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
8/1//15 605120 PSO 300.00
8/1/2015 605120 PSO 232.40
8/1/2015 605121 PSO 10,049.00
8/1/2015 605119 PSO 49,958.00
13/1/15 605115 PSO 460.00
13/1/15 605101 PSO 880.00
Total 482,792.71

463. Even though entries were made in the cash book


we could not authenticate the payments made without the
vouchers and their supporting documents.

464. We recommended that the Finance Officer should


refund the amount of GH¢482,792.71.

Unretired imprest – GH¢19,545.00


465. We observed that, a total amount of GH¢19,545.00
was paid to the former Coordinator of the Interim
Management Committee, Alhaji Inua Yusif on 4 May 2015
as imprest to conduct debt recovery activities/
reconciliation in five regions. There was no evidence of
expenditure statement and a report on how the money
was utilised as at 31 December 2015.

466. The above omission contravened Regulation 288(1)


of the FAR, 2004 which states that imprest shall be retired
Annual Report of the Auditor-General on the Public Accounts of Ghana –
122 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
at the close of the financial year and any imprest not
retired shall be adjusted to a personal advance account in
the name of the imprest holder.

467. The situation had the potential of depleting the


account of the Central Medical Stores.

468. We recommended that Management should


compel the Coordinator Alhaji Inua Yusif to refund the
money.

Indebtedness of Health Institutions to the Central


Medical Stores, Greater Accra Region –
GH¢15,113,563.53
469. Regulation 2(d) of the FAR, 2004, enjoins the head
of department to secure the due and proper collection of
government revenue collectable by the department.

470. We noted that 99 Health institutions owed the


Central Medical Stores (Greater Accra Region) a total
amount of GH¢15,113,563.53 in respect of Drug and Non
Drug health products sold to them on credit as at
September 30, 2015.

471. The above condition was occasioned by existing


weak debt recovery programme.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


123 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
472. If the condition is not controlled it could impact
negatively on the cash flow position of the unit which
could hinder the ability of the Central Medical Stores to
re-stock items to meet the needs of other Health
institutions.

473. We recommended and Management agreed to


improve the system to facilitate the recovery of the
outstanding amount.

REGIONAL HEALTH DIRECTORATE – KUMASI


Outstanding advances – GH¢293,724.61
474. We noted during our audit of the Regional Health
Directorate that the following advances had remained
uncollected for a long period spanning between two
months and 4 years. Below are the details.

Date Description Amount


GH¢
31/10/2011 Judgement Debt 6,164.00
29/07/2014 Director General – Ghana 5,776.00
Health Service
14/09/2014 Ghana Health Service 143,920.00
Headquarters
18/03/2014 DDPS (Obstetric-TRNG) 2,200.00
29/05/2014 Golden Tulip 949.44
02/11/2015 Project Five Alive 7,177.75
07/08/2015 AG-DDPH 30,000.00
Annual Report of the Auditor-General on the Public Accounts of Ghana –
124 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
18/08/2015 Regional Nutrition Officer 1,000.00
02/10/2015 Deputy Director Clinical Care 3,420.00
31/12/2015 Mechanical workshop 93,117.42
Total 293,724.61

475. The Directorate’s funds may be tied up in


receivables which could lead to cash flow difficulties.

476. We recommended that Management should


recover all the advances and subsequently ensure that
loan deductions are made at source or standing orders
should be set up before advances are approved to ensure
that repayment terms are met.

REGIONAL MEDICAL STORES –


ASHANTI REGION

Indebtedness to Regional Medical Stores –


GH¢13,868,069.07
477. Regulation 2(d) of the FAR, 2004 enjoins the head
of department to secure the due and proper collection of
government revenue collectable by the department.

478. Our review of the debtors ledger of the Regional


Medical Stores revealed that Health Centres, other
hospitals under the Ghana Health Service and private
Health Care Centres in the Ashanti Region owed the

Annual Report of the Auditor-General on the Public Accounts of Ghana –


125 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Regional Medical Stores a total amount of
GH¢14,347,099.50 as at 31 December 2015.

479. Inability to recover advances could negatively


impact on the cash flow position of the Regional Medical
Stores.

480. We recommended to Management to intensify


efforts to recover the total debt of GH¢14,347,099.50 and
also introduce an effective advance recovery mechanism
to ensure that all future advances granted were recovered
promptly.

481. At the instance of the audit, an amount of


GH¢479,030.43 was collected, leaving a balance of
GH¢13,868,068.07.

482. Management indicated that they had set up a team


to visit and recover the debts when NHIA reimburses the
health facilities.

Indebtedness of National Health Insurance Authority to


various Health Directorates – GH¢10,640,921.29
483. We noted during our audits that 24 Health
Directorates were owed GH¢10,640,921.29 by the NHIA as
at 31 December 2015.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


126 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
484. This contravenes Regulation 38(1) of the National
Insurance Regulations, 2004, (L1 1809) which stipulates
that a claim for payment of health service submitted to a
scheme should be paid within four weeks after receipt of
the claims from the health care facility unless there is a
legal impediment. The details are shown below:

No. Name of BMC Amount GH¢


1. Atwima Nwabigya District 1,069,757.75
Health Directorate
2. Amansie West District Health 58,799.72
Directorate
3. Kwabre East District Health 536,435.06
Directorate
4. Kumasi Metro Health 158,474.52
Directorate
5. Bekwai Municipal Hospital 1,057,976.43
6. Manhyia Government Hospital 939,011.02
7. Nyinanyin Government 227,205.90
Hospital
8. Tano North District Health 274,943.77
Directorate
9. Central Region Ewim Polyclinic 55,943.70
10. Apedwa Health Centre 126,466.94
11. Enyiresi Government Hospital 76,806.95
12. Somanya Polyclinic, 65,644.00
Somanya
13. Bunso Health Centre 30,488.66
Annual Report of the Auditor-General on the Public Accounts of Ghana –
127 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
14. Regional Hospital, Bolgatanga 915,367.07
15. Bolgatanga Municipal Health 146,554.82
Directorate (Mhd)
16. Jomoro District Health 406,149.54
Directorate
17. Enchi District Hospital 1,364,241.54
18. Kpandai District Hospital 290,277.77
19. Adansi North District Health 582,853.98
20. Adansi South District 109,877.27
Directorate
21. Ejura Sekyeredumase District 188,634.85
Health Directorate
22. Kwaman Health Centre 12,971.05
23. Sene District Hospital 850,684.98
24. Essikado Government Hospital, 1,095,354
Sekondi
Total 10,640,921.29

485. We recommended that the Management of


NHIA should reimburse the Institutions to ensure
continuity of the services rendered by the facilities.

BEKWAI GOVERNMENT HOSPITAL


Abandoned hospital project
486. We noted that a project which was scheduled for
completion in October 2011 had been abandoned by the
Contractor at about 80% stage of completion. The
Annual Report of the Auditor-General on the Public Accounts of Ghana –
128 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Government of Ghana as part of its policy for the Health
Sector reforms embarked on decentralization
programmes, which focused on political, administration
and fiscal management of public-private partnership for
service delivery and economic promotion.

487. In harmony with the above objective, the Ministry


of Health on 22/06/2010 awarded a contract to CONSAR
Limited at a contract sum of GH¢18,606,188.94 to construct
a Municipal hospital under the Health Service
Rehabilitation Project (HSRlll), jointly financed by
ADF/TAF Nordic Development Fund and the
Government of Ghana.

488. The project was aimed at improving maternal


health, reducing maternal and child mortality, combating
HIV/AIDS, Malaria prevention and controlling endemic
diseases.

489. Completion of this project on time could go a long


way to enhance the Healthcare delivery in the
Municipality.

490. Management indicated that it did not know the


details of the agreement since the contract was awarded in
Accra by the Ministry of Health.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


129 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
491. We recommended that Management should
intensify efforts by liaising with the Ministry of Health to
complete the project.

NURSING AND MIDWIFERY TRAINING SCHOOL –


OFFINSO
Indebtedness to a supplier – GH¢210,765.08
492. We noted that the School’s indebtedness to a
supplier, Ebekae Limited as at 31 December, 2015 stood at
GH¢210,765.08.

493. This is in contravention of Regulation 2(e) of the


FAR, 2004 which states that “the head of a government
department shall request, commit, order, receive and
make payments for goods and services within the funds
appropriated to the department and in accordance with
these Regulations and any other enactment”.

494. The inability of the school to pay off this debt


could affect the credit worthiness of the institution and
most suppliers would not like to transact business with
the School.

495. We recommended to management to take


reasonable steps to pay off the debt.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


130 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Non – deduction of 5% withholding tax – GH¢4,850.00
496. Our examination of the payment vouchers (PVs)
disclosed that management paid a total amount of
GH¢97,000.00 on three PVs to two contractors for work
executed without deducting 5% withholding taxes
amounting to GH¢4,850.00. Details are provided below:

Date PV No. Name of Details Amount 5% Tax


Payee (GH¢) (GH¢)
24/8/2015 1467906 Ebekae part payment 24,000.00 1,200.00
Limited for construction
of hostel facility
16/9/2015 1467992 Ebekae part payment 30,000.00 1,500.00
Limited for construction
of hostel facility
25/9/2015 297920 Duo-Style part payment 43,000.00 2,150.00
Engineering for the
Ltd construction of
Assembly Hall
Complex
Total 97,000.00 4,850.00

497. This contravened Section 84(2) of the Internal


Revenue Act, 2000, (Act 592) as amended by Act 814
which enjoins any person making payment of GH¢500.00
and above to suppliers of goods and services to withhold
tax of 5% on the gross amount paid.

498. Failure to deduct and remit withholding taxes


could deprive the government of revenue.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


131 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
499. We urged management to recover the withholding
tax from the suppliers and remit same to the
Commissioner, GRA without further delay.

Payment into vehicle revolving fund – GH¢153,955.96


500. Our examination of payment vouchers from four
hospitals disclosed that an amount of GH¢153,955.96 was
paid in instalments into the MOH revolving fund account
at Ecobank, Ridge West branch towards the acquisition of
vehicles as shown below:
No. Region Institution Amount
Paid GH¢
1. Ashanti Obuasi Government 42,480.00
Hospital
2. Ashanti Ejura Municipal Hospital 34,319.89
3. Brong Yamfo Health Centre 29,365.62
Ahafo
4. Central Twifo Praso Hospital 47,790.45
Total 153,955.96

501. Six to eight months after payment had been made


into the fund, the vehicles had not been supplied to the
various institutions to enhance their health delivery.

502. Regulation 12 of the FAR 2004 requires a person


entrusted with custodial duties for public and trust
moneys to protect public and trust moneys against

Annual Report of the Auditor-General on the Public Accounts of Ghana –


132 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
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.

503. Management of the revolving fund had been


advised to purchase the vehicles for the respective
institutions as contained in their agreement, failing which
the contributions should be refunded to the institutions.

Imposition of judgment debt – GH¢4,970.02


504. Our examination of the payment vouchers
disclosed that the Ashanti Regional Director of Health
Services per letter No. KGDWSE/HC of 18/5/15, signed
by Dr. Alexis Nang-Beisuba, instructed all Health Centres
and BMC’s in the Districts and Municipalities to pay to the
Region a specific amount to defray a judgment debt
imposed by a court on Disease Health Centre for
mishandling a patient during surgery performed by a
Medical Officer. However, there was no letter sighted
from the Ministry of Health to take such decision for
implementation. Details are as below.

Date PV No. Payee Particulars Amount


GH¢
09/06/15 1473538 RMD Contributions 4,970.02
towards RHA
Judgment debt

Annual Report of the Auditor-General on the Public Accounts of Ghana –


133 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
505. Regulation 169(1) of the FAR, 2004 states that a
head of department shall inform the sector Minister or
appropriate authority immediately of any circumstances
that are likely to affect materially the budgetary results
either through revenue and expenditure or other receipts
and payments of the department.

506. This decision by the Regional Director could lead


to BMCs making unbudgeted expenditures.

507. We recommended that the Regional Director


should obtain an approval from the Minister before such
expenditures are incurred in future.

Double payment of transfer grant – GH¢1,843.11


508. We noted during our examination of payment
vouchers that an amount of GH¢1,843.11 was paid to
Maxwell O. Darko (Accountant) as transfer grant for his
transfer from Atwima Nwabiagya District Health
Administration to Nyinanyin Hospital in 2013, which had
already been paid to him in the same year he was
transferred to the hospital resulting in double payment.

509. Regulation 39(2c) of the Financial Administration


Regulations (FAR), 2004 (LI 1802) require the head of the
accounts section of a department to control disbursement
of funds and ensure that transactions are properly
authenticated to show that amounts are due and payable.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
134 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
510. We recommended to management to ensure that
the excess amount of GH¢1,843.11 was recovered from
Maxwell O. Darko.

Unearned salary – GH¢231,173.85


511. Contrary to Regulation 297(1) of the (FAR), 2004,
we noted that 26 officers who separated from their
institutions between October 2011 and January 2016 were
paid unearned salaries totalling GH¢231,173.85 as shown
below:
No. Region Institution No. of Period Amount
Persons GH¢
1. BrongAhafo College Of 1 Dec.2014 – 86,735.22
Health Dec. 2015
Research –
Kintampo
2. Greater Dansoman 1 Oct.2011- 39,936.64
Accra Polyclinic Sept. 2015
3. Greater Pantang 11 June 2015 – 18,392.03
Accra Psychiatric Jan. 2016
Hospital
4. Greater Ridge 1 Feb.2012- 29,120.00
Accra Hospital Accra Sept. 2015
5. Greater Ridge 6 21,287.43
Accra Hospital Accra
6 Volta Anfoega 1 Dec. 2014- 3,919.35
Catholic Dec. 2015
Hospital
7. Western Asanta Health 2 28/10/2015 3,900.00
Assistants
Training
School
8. Ashanti Agona 3 March 2015 27,883.18
Hospital Jan. 2016
Total 26 231,173.85

Annual Report of the Auditor-General on the Public Accounts of Ghana –


135 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
512. We recommended that Management should
pursue recovery of the amount or convert it as an advance
and charge it to their personal account which would be
deducted from their salary or entitlement.

Unrecovered advances – GH¢110,610.92


513. Regulation 110 of the Financial Administration
Regulations, 2004 (LI 1802) specifies that a head of
department, or the officer to whom the duties of the head
of department have been delegated, shall ensure that
advances issued are duly recovered in accordance with
the appropriate agreement.

514. Our audit of nine institutions in 2015 disclosed


that 308 members of staff had not paid advances totalling
GH¢110,610.92 granted them some dating as far back as
2006 as shown below:
No. Region Institution Type of No. Period Amount
advance of
staff
1. Brong Sunyani Salary 64 36,994.92
Ahafo Regional
Hospital
2. Brong Regional 12 31/12/2013 26,080.00
Ahafo Health
Directorate

3. Brong Tano North 3 5,250.00


Ahafo District
Health
Directorate

Annual Report of the Auditor-General on the Public Accounts of Ghana –


136 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
4. Central Twifo Praso Staff - 31/12/2012 3,710.00
Hospital advances
5. Greater Korle- Staff 200 31/12/14 170,548.22
Accra buTeaching Advances
Hospital
6. Greater Accra Salary 2 2,020. 00.
Accra Psychiatric
Hospital
7. Upper Wa Regional Staff 1 01/05/2012 3,100.00
West Health advance
Directorate
8. Northern Regional staff 12 01/01/2008 16,945.00
Medical advances
Stores

9. Ashanti Nurses 14 11/10/13- 16,511.00


and 26/10/2015
Midwifery
Offinso
308 110,610.92

515. We recommended that management should


pursue recovery and strengthen the controls on the
advances to avoid any loss in future.

TWIFO PRASO HOSPITAL


Disbursement without supporting documents
GH¢32,975.50
516. Our review of the payment vouchers (PVs)
revealed that four PVs used in disbursing GH¢32,975.50
for various expenditure items were not supported with
payee’s official receipts and invoices to authenticate the
payments.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
137 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
517. This contravenes Regulation 39(2c) of Financial
Administration Regulations 2004 which states that “The
head of the accounts section of a department shall control
the disbursement of funds and ensure that transactions are
properly authenticated to show amounts are due and
payable”.

518. We recommended that the accountant should


provide the relevant supporting documents to
authenticate the transactions, failing which the amount
should be recovered from him.

REGIONAL MEDICAL STORES, KOFORIDUA


Unpaid creditors – GH¢4,245,829.81
519. Best financial management practice requires
regular payment of debts owed to win the trust and
confidence of creditors to ensure continuous credit
facilities.

520. Contrary to the above, we noted that the Regional


Medical Stores owed the Central Medical Stores and other
Companies a total amount of GH¢14,488,105.78 as at 31
December, 2015 in respect of drugs and non-drugs bought
on credit.

521. At the instance of the audit an amount of


GH¢10,242,275.97 was paid leaving a balance of
GH¢4,245,829.81.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


138 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
522. We urged management to redeem the remaining
indebtedness to the creditors so as to salvage the
credibility of the organisation.

ACCRA PSYCHIATRIC HOSPITAL


Misapplication of drug fund – GH¢19,600.00
523. Regulation 179(1) of the FAR, 2004 states “Except
as provided for in the Financial Administration Act, 2003,
(Act 654), a head of department may not authorise
payment to be made out of funds earmarked for specific
activities for purposes other than those activities”.

524. Contrary to the above, we noted that Management


misapplied GH¢19,600.00 from the drug fund for the
payment of gas and airtime allowances to hospital
management committee members as shown below:

Date PV No CHQ Amount


No GH¢

06/08/2015 1264101 932575 4,200.00


01/10/2015 1264104 932579 1,200.00
01/10/2015 1264110 932582 1,200.00
21/05/2015 1344501 932574 13,000.00
Total 19,600.00

525. Such act could deplete the drug fund and


adversely impact on healthcare delivery at the hospital.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
139 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
526. We recommended that management should
refund the amount of GH¢19,600.00 to the Drug fund and
desist from misapplying the Fund for non-drug purposes.

Corporate institutional debtors – GH¢713,608.84


527. One hundred and ninety-seven Corporate bodies
defaulted in the settlement of their indebtedness of
GH¢713,608.84 to five hospitals for services rendered
during the period under review as shown below:

Names of Name of Last Amount


debtors Creditor payment (GH¢)
date
Royal Pantang 8 April 2016 4,672.86
Aluminium Psychiatric
System Ltd. Hospital
Kofi Ababio & -do- 5 April 2016 1,711.21
Sons Ltd.
China Water -do- December 3,237.70
Electrical 2012
Company
Ghana Prisons Effia Nkwanta 31/12/2014 43,058.03
Service Regional
23 Corporate Ridge Dec. 2015 6,152.80
Bodies Hospital
Ghana Water Essikado 31 Dec.2015
Company Govt. Hosp. 14,154.00
Prisons Essikado 31 Dec.2015
Service Govt. Hosp. 26,034.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


140 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
168 Central 31 Dec.2015 614,588.24
Institutions Mechanical
Workshop -
Greater Accra
Region
Total 713,608.84

528. Regulation 2(d), of the FAR, 2004 enjoins the head


of department to secure the due and proper collection of
government revenue collectable by the department.

529. Management was advised to explore effective


ways to collect the overdue debts for the smooth running
of the facilities.

NATIONAL CENTRE FOR RADIOTHERAPY AND


NUCLEAR MEDICINE (NCRNM),
Patient Debtors – GH¢42,030.00
530. Our review of the patient debtors’ ledger disclosed
that as at 31 December 2015, 146 patients owed the Centre
various fees totalling GH¢86,170.00.

531. This contravenes Regulation 17(a) of FAR, 2004


which states that a head of department shall ensure that
all Non-Tax Revenue (NTR) is efficiently collected. The
Centre risk losing substantial revenue to bad debts.

532. At the instance of the audit, Management


recovered an amount of GH¢44,140.00, leaving
GH¢42,030.00 yet to be settled.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
141 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
533. We recommended that the Director should an
effective debt recovery system in place to recover all
outstanding debts.

534. Management indicated that since most of the


patients continued to undertake review/treatment the
accounts office would contact them for recovery of
thedebt.

WA REGIONAL MEDICAL STORES


Outstanding corporate debtors – GH¢1,710,291.85
535. Our review of the financial records of the Regional
Medical Stores, Wa disclosed an outstanding receivable of
GH¢7,031,337.02 as at 31 December 2015 for both drugs
and non-drug items from 50 institutions.

536. Regulation 17(a) of the FAR, 2004 states that a


head of department shall ensure that all Non-Tax Revenue
(NTR) is efficiently collected.

537. This situation could negatively impact on the cash


flows of the Regional Medical Stores as funds to procure
drugs and non-drugs could be locked up in unrecovered
debts.

538. Management was able to recover an amount of


GH¢5,321,045.17 during the audit leaving an unpaid
balance of GH¢1,710,291.85.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


142 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
539. We recommended to management to pursue
recovery of the outstanding amount.

EFFIA NKWANTA REGIONAL HOSPITAL


Mammogram and other hospital equipment abandoned
for years
540. Section 1 of the Accounting, Treasury and
Financial Reporting, Rules and Instructions of the
Ministry of Health (MOH) requires that the MOH and its
Agencies may receive donations in the form of Fixed
Assets, Inventory or Cash. Donations meant for specific
purposes or to augment government financing generally
are to be issued and used for their intended purpose. For
fixed assets it shall be recorded in the assets register and
embossed for identification.

541. Our audit of the hospital’s assets register disclosed


that 14 boxes of various sizes of mammogram and digital
x-ray equipment meant for breast cancer x-rays and other
complex x-rays donated to the Hospital by MOH in
November 2013 had still not been installed. Some of the
components were exposed to the vagaries of the weather
at the Hospital’s snacks shop.

542. Non-installation of these important and expensive


equipment put patients at a disadvantage, loss of revenue
to the hospital for non-usage, deterioration due to
exposure to the weather and the risk of obsolescence with
the passage of time.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
143 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
543. We urged management to expedite action for the
installation of the machines so that both the patients and
the hospital could benefit from their use.

544. Management indicated that it had contacted the


Head of Clinical Engineering Unit of the Ghana Health
Service on countless occasions for the installation of the
equipment but the response had always been that it was
not yet the turn of Effia Nkwanta Hospital.

Missing motor bike


545. We noted that the Transport officer, Mr. Samuel
Ezaoh, continuously took the Directorate’s Nanfang Motor
Bike with chassis no. LAYJCK2898AK62134, but without a
registration number to his place of residence without
authority from the District Health Director. On 1 January
2015 the motor bike was stolen from his house and had
since not been found.

546. We recommended that, the District Health


Director should surcharge Mr. Samuel Ezaoh with the
replacement cost of the motor bike and be sanctioned.

Student debtors – GH¢385,923.47


547. We noted during our review of the student’s
debtor’s ledger that, an amount of GH¢385,923.47 was
outstanding in the name of 315 students as at the time of

Annual Report of the Auditor-General on the Public Accounts of Ghana –


144 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
audit some dating as far back as 2014. Details are shown
below:

Date Institution Name Bal. as 31


Dec. 2015
(GH¢)
31/12/14 Asanta Health 8 Students 16,343.00
Assistants
Training School
School of 96 students 247,108.95
Hygiene, Tamale
Korle-Bu 200 students 113,246.52
31 /12/ 15 NMTC, Offinso 11 students 9,225.00
Total 315 students 385,923.47

548. Regulation 110 of the Financial Administration


Regulations (FAR), 2004 (LI 1802) requires head of
department, or the officer to whom the duties of the head
of department have been delegated in accordance with
regulation 109 (delegation of administering authority), to
ensure that advances issued are duly recovered in
accordance with the appropriate agreement. Furthermore,
Regulation 17(a) of the FAR, 2004 states that a head of
Department shall ensure that all Non-Tax Revenue (NTR)
is efficiently collected.

549. These may adversely affect the cash flow of the


institutions thus denying them of the much needed funds
for their operational activities.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
145 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
550. We recommended that management should
pursue recovery of the outstanding amount.

KORLE-BU TEACHING HOSPITAL


Retirement package paid to Prof. Afua Hesse, retired Ag.
Chief Administrator
551. Section 37(6) of GHS/TH Act, 1996 (Act 525)
requires the members of a Teaching Hospital Board
(KBTH) to hold office on such terms and conditions,
including the payment of such allowance as the Minister
may, on the recommendation of the Minister of Finance,
determine.

552. Contrary to the above we noted that a retired


Director of Medical Services and Ag. Chief Administrator,
Prof. Efua Hesse was paid retiring awards comprising
cash of GH¢51,096.74 and a VW Passat car. The package
did not have the Minister’s approval and was not
supported by the terms and conditions of service of the
Hospital. It did not also conform to retiring packages paid
by other teaching hospitals in the country.

553. We recommended that management should


recover the amount of GH¢51,096.74 from the retired
officer and retrieve the vehicle for official valuation and
the officer made to pay for it. Failing which the Chairman
of the Board, the Ag CEO, and the Director of Finance

Annual Report of the Auditor-General on the Public Accounts of Ghana –


146 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
who approved and made the payment should be held
liable.

554. Management indicated that it contacted the


Intercity STC Company Limited who valued the Passat car
at GH¢34,400.00 to be sold to the retired officer as per the
MOH Transport Policy.

Irregular release of duty post vehicles to separated


directors
555. Section 37(6) of GHS/TH Act, 1996 (Act 525)
requires the members of a Teaching Hospital Board
(KBTH) to hold office on such terms and conditions,
including the payment of such allowance as the Minister
may, on the recommendation of the Minister of Finance,
determine.

556. In contravention of the above provision, the Board


of KBTH at its 56th meeting decided to refund two years’
instalment payments made by six Directors on cars
acquired through the MOH Vehicle Revolving Fund to the
officers, treat the vehicles as duty post vehicles, and allow
them to take the vehicles away for free when they
separated from the Hospital. In this regard two separated
directors viz. Mr. T. A. Mahmud, former Director of
Human Resource and Mr. E. Anan Kakabaah, former
Director of Finance were allowed to take their vehicles
away for free.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
147 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
557. We recommended that the Board and management
should seek retroactive approval from the MOH or the
policy should be reversed and the vehicles recovered from
the former directors.

558. Management had since valued the cars at


GH¢34,400.00 each and intended to collect the amounts
from the former Directors in accordance with Ministry’s
Transport Policy.

Irregular appointment and payments to Mr. Godfred


Ahianyo (Non-Executive Board member) –
GH¢118,461.00
559. Regulation 39(1) of the Financial Administration
Regulations (FAR) requires a head of department to
ensure that moneys are utilized in a manner that secures
both optimum value for money and the intention of
Parliament.

560. Our audit however disclosed that the Board


Chairman, Mr. Edward Annan, irregularly appointed a
non-executive Board member, Mr. Godfred Ahianyo, to
head a three-member committee to “audit various
processes at the Directors and other Sub-BMCs in the
Hospital” with effect from 1/12/12 for a period of one
year. Subsequently, net payments, variously described as
allowances, salaries (with market premium) and advances
totalling GH¢118,461.04 were made to Mr. Godfred

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148 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Ahianyo between 4/1/13 to 22/5/14. An official vehicle
was also allocated to the officer.

561. We did not see any terms of reference for the


Committee and names of the other members of the
Committee, neither did we see evidence of actual work
done. As a result, we considered the payments to Mr.
Ahianyo as unnecessary drain on the Hospital’s resources.

562. We therefore recommended that all payments


made to him should be recovered. In the event that
management was unable to recover the amount, the Board
Chairman, Mr. Edward Annan and the Ag. Chief
Administrators, Prof. Efua Hesse and Rev. A. O. Botchway
should be held liable for the payments made.

563. Management stated that, subsequent to the audit,


the vehicle allocated to Mr. Ahianyo had been retrieved.
However, the amount was yet to be recovered.

Appointment and payment of acting allowances and


salaries to Ag Chief Administrator, Rev. Albert O.
Botchway, without appropriate basis - GH¢81,669.82
564. Section 39(2) of Act 525 states “Where the Chief
Administrator is temporary incapacitated from the
performance of his functions under this Act, the Board
may authorise any senior employee of the Teaching

Annual Report of the Auditor-General on the Public Accounts of Ghana –


149 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Hospital to perform those functions for the duration of the
incapacity”.

565. We noted during the audit that after the retirement


of former Ag. Chief Administrator, Prof. Efua Hesse on 13
September, 2013 the Board Chairman, Mr. Edward Annan,
asked Rev. Albert Okpoti Botchway, a non-executive
Board member, to step in as Ag. Chief Administrator, a
role he performed until July 2014.

566. Subsequent to this, total allowances and salaries


(although Rev. Botchway was not an employee of the
Hospital) amounting to GH¢81,669.82 was paid to him
between 23/10/13 and 23/6/14.

567. Efforts to obtain Rev Botchway’s appointment


letter to justify these payments were not successful as
management could not produce it. If the most senior
executive director already on salary had been asked to act
as Chief Administrator, management would have avoided
the payments made to Rev. Botchway.

568. In the absence of the appointment letter to support


the payments made to Rev. Botchway, we recommended
that management should recover all allowances and
salaries paid to him.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


150 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Payment of unapproved board sitting allowances:
GH¢30,000.23
569. Section 37(6) of GHS/TH Act, 1996 (Act 525)
requires that the members of a Teaching Hospital Board
shall hold office on such terms and conditions, including
the payment of such allowance as the Minister may on the
recommendation of the Minister of Finance determine.

570. We observed that the KBTH Board approved


increases in Board allowances and made payments in
arrears totalling GH¢67,577.75 on 29/5/14 to 17 members
without recourse to the Ministers of Health and Finance.

571. We therefore recommended that the Board should


seek retrospective approval from the Minister of Finance
through the Minister of Health, or the total payment of
GH¢67,577.75, and any subsequent unapproved payments
made, should be refunded. We further advised the Board
and management to stop payment of the new rates until
the Minister of Finance formally approved of them.

572. Management had so far recovered an amount of


GH¢37,577.22 from the Board members, leaving a balance
of GH¢30,000.23 yet to be recovered.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


151 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Unlawful appointment of private auditing firm:
GH¢81,000.00
573. Section 11(1) of the Audit Service Act, 2000 (Act
584) states that, “The public accounts of Ghana and of all
public offices, including the courts, the central and local
government administrations, of the Universities and
public institutions of like nature, of any public corporation
or other body or organisation established by an Act of
Parliament shall be audited and reported on by the
Auditor-General”.

574. Contrary to the above, we noted during the audit


that, based on the Minister of Health’s letter number
MOH/OM/24 of 12 June 2014, the Board Chairman of
KBTH appointed AD and Associates, a private Chartered
Accountant, to carry out forensic audit of the 24 Hour
Pharmacy (reference letter number
KBTH/CAS/B2/14/16 dated 2 July 2014). An audit fee of
GH¢81,000.00 was agreed and paid to the firm. Among
other irregularities, the appointment was made without
recourse to the Auditor-General and the engagement was
not subjected to competitive bidding.

575. Since the appointment was unlawful, we


recommended that the amount paid should be recovered
from the firm or the Minister, the Board Chairman and the
Chief Executive who were involved in the transaction
should be held liable to refund the amount.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
152 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Procurement of vehicle for acting Chief Administrator:
GH¢199,000.00
576. Regulation 39(1) of FAR, 2004 requires heads of
departments to ensure that moneys are utilised in a
manner that secures both optimum value for money and
the intention of Parliament.

577. Our audit however revealed that management


paid an amount of GH¢199,000.00 to acquire an Audi A6
car for the use of the Ag. Chief Administrator. The
procurement was not in the Hospital’s 2014 approved
Procurement Plan and Budget, and also there was no
evidence that it was approved by the Board. We further
noted that the Ag. Chief Administrator, Rev. Albert O.
Botchway appropriated the vehicle to himself by getting it
registered in his personal name and used it for two and a
half months after purchase before reverting it into the
Hospital’s name.

578. We recommended that the Chief Administrator


should ensure that all procurement of goods, works and
services were done in accordance with the Public
Procurement Act, 2003 (Act 663).

Annual Report of the Auditor-General on the Public Accounts of Ghana –


153 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Uncollected revenue from patients’ guarantors-
GH¢169,556.00
579. We noted that between January and December
2014, fees totaling GH¢169,556.40 owed by 450 discharged
patients had not been recovered from their guarantors.

580. This was due to lack of properly documented


policy or arrangement by management with regards to
payment schedules and enforcement of the liability clause
in the guarantee agreement. This situation exposed the
hospital to loss of revenue.

581. We recommended that the Director of Finance


should notify the guarantors of their liabilities. In the
event of failure to settle their indebtedness, management
should institute legal action against them to recover the
overdue debts totalling GH¢169,556.48.

Uncollected revenue from absconders and others –


GH¢144,774
582. We noted that absconders and the Social Welfare
owed the KBTH GH¢144,773.97 as at 31 December 2014 as
unpaid bills for treatment of patients. Ineffective debt
collection measures and relaxed security arrangements at
the wards contributed to this situation.

583. In line with Regulation 17 of the FAR, 2004 we


asked management to institute effective debt collection

Annual Report of the Auditor-General on the Public Accounts of Ghana –


154 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
measures and improve security at the wards to reduce the
incidence of absconding.

MINISTRY OF HEALTH – HEADQUARTERS


Wrongful payment of renovation cost on rented
accommodation
584. The Ministry of Health signed a Tenancy
Agreement with Vital International Foundation on 6th
August 2009 for an 18-room apartment at House no. 22,
Koowulust Zoti, Lartebiokorshie, Accra, for a two-year
period subject to renewal. The property was rented to
house a Chinese Medical Team.

585. Although the rent contract did not require the


lessee to pay for capital works on the property, the
Ministry wrongfully paid an amount of GH¢69,281.07 to
the landlord on 25/4/14 for capital works which included
demolition and alterations, block works, roofing etc.

586. The payment was made based on the instruction of


the Director of Administration II, Mr. Hamidu
Adakurugu, who did not exercise the necessary due
diligence.

587. This payment was contrary to Regulation 39(1) of


FAR, 2004 which requires a head of department to ensure
that moneys are utilized in a manner that secures both
optimum value for money and the intention of Parliament.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


155 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
588. We therefore recommended to the Chief Director
to contact the landlord, Vital International Foundation, to
convert the amount of GH¢69,281.00 into additional rent
advance.

GHANA HEALTH SERVICE HEADQUARTERS


Garnishee order on imprest account at Ecobank
589. We noted during our review that, Ghana Health
Service Headquarters imprest account Number
0134404640302 at Ecobank with an account balance of
GH¢108,870.00 was garnisheed on 22 January, 2013 due to
failure of Ghana Health Service to comply with a court
order issued by The Superior Court of Judicature in the
High Court of Justice (Industrial/Labour Division) of
Ghana, reference Suit number INDL/99/11 between
LETICIA ASIEDU – KOTWI (Plaintiff) AND THE
DIRECTOR–GENERAL, GHANA HEALTH SERVICE
(Defendant). Details of the judgment were as follows;
a. Payment of all outstanding remuneration
including salaries, allowances and others from
1 October 2009.
b. Payment of interest (20.5%) on (a) above at the
prevailing bank rate and at simple interest with
effect from 31 October 2009 to date.
c. Payment of compensation of GH¢2,000.00 for
distress and loss of dignity arising from the
Defendant’s discriminatory treatment of the
Plaintiff.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
156 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
d. Payment of GH¢2,000.00 to the Plaintiff as
general damages; and
e. Payment of costs of GH¢2,000.00 to the Plaintiff.

590. The Director General, Ghana Health Service being


the Judgment Debtor, failed to comply with the court’s
judgment neither did he file an appeal.

591. This infringes on Regulation 39(1) of FAR, 2004


which stipulates that a head of department shall ensure
that moneys are utilized in a manner that secures both
optimum value for money and the intention of Parliament.

592. The Service was therefore denied access to the


funds in the account for administrative activities. Also the
Service risks payment of huge interests, so long as it
continues to default in servicing the debt.

593. We recommended that the Director-General


should ensure compliance with the Court verdict to avoid
further payment of cumulative interests and also to secure
optimum use of the imprest account.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


157 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF FOOD AND AGRICULTURE
VETERINARY SERVICES DIRECTORATE

Unpaid compensations to 34 Farmers under Avian Influenza


Programme – GH¢1,448,157.02
594. Based on the WHO and FAO guidelines on
compensation payments to affected farmers, under the AI
Program, Management recommended payment of 90% of
the current market value of poultry farms and farm
products destroyed from May to October 2015.

595. Out of the 63 outbreak sites or farms affected, only


27 were compensated with an amount of GH¢1,141,216.94,
leaving GH¢1,448,157.02 unsettled as at December 2016.

596. The lapse may be attributed partly to the failure of


the programme management team to ensure that the
affected farmers were adequately and appropriately
compensated.

597. The failure of Management to pay the


compensations to the affected farmers resulted in serious
repercussions on the program, such as;
 Delay in reporting outbreak cases,
 Refusal of farmers to report outbreak cases
 Pushing infested birds into the food chain
(market) to save losses, hence resulting in
continuous and further spread of the disease.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


158 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
598. We advised Management to ensure that the
outstanding amount of GH¢1,448,157.02 is paid to the
affected farmers to curtail or prevent further spread of the
disease.

MINISTRY OF FOOD AND AGRICULTURE


REGIONAL OFFICE – SEKONDI
Failure to recover rent – GH¢10,570.00
599. Our review of records at the Regional Agric Office
disclosed that in October 1998 management entered into
agreement with Duratech Fibre Glass Ltd for renting of its
Fertilizer Depot at Essipon for a monthly fee of GH¢30.00
to GH¢50.00 per month, renewable every three years and
re-negotiated after the fifth year.

600. We however observed that management of


Duratech Fibre Glass Ltd reneged on their obligations in
the contract resulting in cumulative rent arrears of
GH¢10,570.00 as detailed below:
Period No. of Rate Amount
Month GH¢ GH¢
1 May 1998 - 31 October 1998 6 30.00 180.00
1 November 1998 - 31 October 36 40.00 1440.00
2001
1 November 2001 - 31 October 24 50.00 1200.00
2003
1 November 2003 - 30 155 50.00 7750.00
September 2016
10,570.00
Annual Report of the Auditor-General on the Public Accounts of Ghana –
159 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
601. Management’s laxity in taking legal action against
the company for recovery had denied the State of revenue
for development.

602. We recommended to management to take legal


action to recover the rent arrears of GH¢10,570.00 with
interest from the company.

Unregistered lands at Bonsaso


603. Our review of the Assets Register disclosed that in
2000 the entity acquired 27.67 and 57.97 acres of land for
coconut nursery and coconut plantation respectively at
Bonsaso because the Lands Commission had delayed in
processing the document submitted to them.

604. Since lack of appropriate documentation on the


lands could result in disputes and loss of property, we
recommended to management to take appropriate steps to
get the lands registered to avoid any future litigation and
loss of property.

MINISTRY OF FOOD AND AGRICULUTRE


DISTRICT OFFICE – SEKONDI
Fuel purchases not accounted for – GH¢8,341.80
605. Stores Regulation 1604 requires that fuel
purchased should be accounted for by recording them in a
vehicle log book.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


160 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
606. Management however failed to produce log books
for the Department’s official vehicles for audit.

607. Consequently, fuel purchased amounting to


GH¢8,341.80 could not be accounted for. The amount
comprises GH¢6,741.80 for the Department’s official
vehicle (GV 1489 - U) and GH¢1,600.00 for the Veterinary
Services Department.

608. We recommended that in the absence of the


vehicle log books and evidence of usage the amount of
GH¢8,341.80 should be refunded by the Accountant to
chest.

MINISTRY OF FOOD AND AGRICULTURE –


TARKWA
Payment of unearned salaries – GH¢6,777.12
609. Regulation 297 and 298 of the FAR, 2004 require a
head of department to cause the immediate stoppage of
payment of salary to a public servant when that public
servant has been absent from duty without leave,
resigned, retired or died.

610. Management however failed to cause the stoppage


of the salaries of Mr. Arhin Philip, a Technical Officer at
the Department of Agric, Tarkwa who vacated his post in
February 2015 resulting in payment of GH¢12,608.98 as

Annual Report of the Auditor-General on the Public Accounts of Ghana –


161 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
unearned salaries covering the period February 2015 to
June 2016.

611. At the instance of the audit, the ex-employee


refunded GH¢5,831.86 through the Societe Generale Bank,
Tarkwa branch leaving a balance of GH¢6,777.12.

612. We recommended that the outstanding amount of


GH¢6,777.12 should be recovered from Mr. Arhin with
interest at the prevailing bank rate or the Municipal
Director and his Accountant surcharged with the total
amount involved.

MOFA – EJURA
Failure to recover loans from block farmers –
GH¢173,453.30
613. Regulations 2(d) and 104(c) of FAR, 2004 require
that the head of government department shall ensure that
due and proper collection of Government revenue
collectable by the department within the term of any
enactment or of instructions issued or approved by the
Controller and Accountant General. Also, the head of
department shall ensure that advances are duly recovered
in accordance with the regulations or agreements relating
to them.

614. We noted that a total of GH¢242,112.50 was


disbursed by the Ejura Municipal Directorate of Agric. to

Annual Report of the Auditor-General on the Public Accounts of Ghana –


162 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
39 block farmers in the form of farm inputs under the
block farms programme during the 2013 farming season.

615. This loan facility was payable after the farming


season, which meant that at the end of 2013 farming
season management should have recovered the amount in
full.

616. Similarly the Manso Nkwanta District Agriculture


Office between 2010 and 2013 granted loans to 6
individual farmers and Anidaso Farmers Group in the
form of farm inputs amounting to GH¢43,565.00 with the
view of increasing their output.

617. We noted that the loan agreement spelt out that


recovery was to be completed within 12 months. Out of a
total loan of GH¢43,565.00, only GH¢7,710.00 or 17.7
percent was recovered from the beneficiaries of the facility
leaving a balance of GH¢35,855.00 or 82.3 percent unpaid
as at 31 December 2016.

618. In relation to the Ejura Block Farmers, our audit


revealed that, out of the total loan of GH¢242,112.50
disbursed, only GH¢104,514.20 was recovered leaving
GH¢137,598.30 outstanding as at 31 December 2016.

619. The beneficiaries’ reluctance to pay, lack of


capacity on the part of management to pursue recovery of
Annual Report of the Auditor-General on the Public Accounts of Ghana –
163 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
the outstanding loan and failure of the Ministry to take
legal action against the defaulting farmers accounted for
the long delay in recovering the outstanding balance.

620. We recommended to management to involve


organisations with the experience of debt collection to
assist in the recovery of the amount of GH¢173,453.30
from the farmers involved.

FOOD AND AGRICULTURE


Payments without official receipts – GH¢29,375.20
621. Regulation 39(2c) of Financial Administration
Regulations 2004 (LI 1802) states that the head of the
accounts section of a department shall control the
disbursements of funds and ensure that transactions are
properly authenticated to show that amounts are due and
payable and any order for disbursements that does not
meet these requirements is rejected.

622. Contrary to the above provisions, we noted that


five payment vouchers raised for the payment of
GH¢22,835.02 made to the Nabdam District Agricultural
Development Unit were not supported with official
receipts to authenticate the transactions.

623. Similarly a total amount of GH¢6,540.18 was paid


by MOFA Agona Ashanti on three separate vouchers in
respect of Travel and Transport (T&T) allowances,

Annual Report of the Auditor-General on the Public Accounts of Ghana –


164 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
workshops without supporting document like T&T claim
sheets, invoices, reports and letters inviting officers for the
workshops contrary to Regulation 226 of FAR, 2004.

624. The anomaly was caused by the Accountant’s


failure to comply with the above regulations for not
obtaining official receipts to cover the payments.

625. In the absence of the official receipts, we could not


ascertain whether the funds were actually released to the
payees.

626. Management should therefore obtain official


receipts to authenticate the payments, failing which the
amount involved be surcharged against the District
Director and the Accountant.

Payments not fully accounted for – GH¢17,643.02


627. Regulation 39(2c&d) of the Financial
Administration Regulations 2004 (LI 1802) states “The
head of the accounts section of a department shall control
the disbursements of funds and ensure that transactions
are properly authenticated to show that amounts are due
and payable; and any order for disbursements that does
not meet these requirements is rejected.

628. We noted on the contrary that, out of an amount of


GH¢85,153.92 released to District Director to perform
Annual Report of the Auditor-General on the Public Accounts of Ghana –
165 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
various assignments and programmes, only GH¢69,655.90
was accounted for with relevant receipts and statements of
account leaving GH¢15,798.02 unaccounted for.

629. Similarly at Bolga Regional Agric. Unit 6 an


amount of GH¢14,310.00 was released for various
expenses out of which only GH¢12,465.00 was accounted
for by way of receipts and statements of account leaving a
balance of GH¢1,845.00 unaccounted for.

630. We attributed the situation to the failure on the


part of the Accountant to exercise supervisory and
monitoring controls over the payees in ensuring that
funds were timely accounted for.

631. This practice could lead to misappropriation and


misapplication of funds with the consequent losses to the
Ministry.

632. We recommended to management to ensure that


receipts and invoices were obtained to support the
payments, failing which the sum of GH¢17,643.02 should
be recovered from the payees.

DISTRICT AGRICULTURE OFFICE – BAWKU


Misappropriation of revenue – GH¢585.00
633. Regulation 15(1) of the Financial Administration
Regulations, 2004 (LI 1802) stipulates that, “Any public

Annual Report of the Auditor-General on the Public Accounts of Ghana –


166 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
officer or revenue collector who collects or receives public
and trust moneys shall issue official receipts for them and
pay some into the relevant Public Fund Bank Account
within twenty-four hours of receipt except in exceptional
circumstances to be identified by the Minister”.

634. Contrary to the above, Mr. Sulley Fuseini, a


revenue collector of the Department collected total
revenue of GH¢17,797.00 between February and
September 2016 but banked GH¢17,212.00 leaving a
difference of GH¢585.00 unaccounted for.

635. We attributed the lapse to ineffective supervision


over the revenue collector’s collection and banking
activities by management.

636. This resulted in loss of funds to the Ministry of


Food and Agriculture and Government.

637. We recommended to management to ensure


recovery of the amount from Mr. Sulley Fuseini into the
appropriate Bank account.

REGIONAL AGRIC UNIT - BOLGA


Unsupported payment vouchers – GH¢40,991.00
638. Regulation 39(2c) of the Financial Administration
Regulations 2004 (LI 1802) requires the head of accounts to

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167 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
always ensure that transactions are properly authenticated
to show that amounts paid are due and payable.

639. On the contrary, we noted that 14 payment


vouchers used in disbursing GH¢40,991.00 were not
supported with the relevant receipts, invoices, memos and
other statements of account to properly account for the
payments.

640. Failure on the part of the Accountant to obtain


receipts and other documents to acquit the vouchers and
laxity on the part of the Accountant to properly securitize
vouchers to ensure that all payments were properly
acquitted accounted for the lapse.

641. This could result in duplication of payments and


or to non- existent persons and entities.

642. We recommended to management to surcharge the


Accountant and the Regional Director with the amount
involved.

Failure to remit tax – GH¢1,260.65


643. Contrary to Section 87(1) of the Internal Revenue
Act, 2000 (Act 592), we noted that management failed to
remit withholding tax totalling GH¢1,260.65, deducted
from 11 payment vouchers to the Domestic Tax Division
of the Ghana Revenue Authority.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
168 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
644. We attributed this to lack of commitment on the
part of management in ensuring compliance with Internal
Revenue Service Act.

645. The inaction of the Regional Accountant denied


the Government the use of the unremitted amount for the
pursuit of government financial business.

646. We recommended to management to remit


GH¢1,260.65 to the Domestic tax Division of the Ghana
Revenue Authority.

METRO AGRICULTURE DEVELOPMENT UNIT,


TAMALE
Failure to recover loan granted under EDAIF Project –
GH¢482,772.00
647. The EDAIF farm project is a government of Ghana
initiative which provides support in the form of
agricultural inputs such as certified seeds, fertilizers and
herbicides to motivate farmers expand their farms. The
cost of the inputs were to be paid by beneficiaries after
harvest. The facility was for one farming season.

648. Our audit disclosed that 76 farmers owed an


amount of GH¢485,862.00 for agricultural inputs supplied
to them in 2015. Further checks revealed that only
GH¢3,090.00 had been retrieved so far with an
outstanding amount of GH¢482,772.00.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


169 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
649. This lapse occurred because the Metro Director
failed to incorporate recovery clauses in the EDAIF farm
project agreement.

650. As a result, the EDAIF project was denied of


revenue of GH¢482,772.00 which could have been
reallocated to other farmers.

651. We recommended that management should take


steps to recover the said amount from the defaulters and
also ensure that farmers who previously defaulted did not
benefit from any subsequent supplies of agricultural
inputs.

Missing bags of urea fertilizers in stores – GH¢18,270.00


652. Section 32(2) of the Financial Administration Act,
2003 makes the head of department responsible for
government stores held within the department for the due
performance of duties in relation to the government
stores.

653. Our examination of the stores records revealed a


total of 1,069 bags of Urea fertilizers received from the
Regional Agriculture Department Unit was added to an
opening balance of 107 to make a total of 1,176 bags of
urea fertilizers for distribution. The stores ledger revealed
that a total number of 1,031 bags were distributed to
farmers leaving 145 bags at a unit cost of GH¢126.00
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170 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
unaccounted for. This resulted in a total loss of
GH¢18,270.00 to the Unit.

654. This lapse occurred because the Metro Director


responsible for stores safety failed to supervise the
operations of the store-keeper.

655. We recommended that the Metro Director should


ensure that the fertilizers are retrieved and accounted for,
failing which the Metro Director and the store keepers
should be surcharged with the amount involved.

DISTRICT AGRICULTURAL DEVELOPMENT UNIT –


AGONA NSABA
Failure to deduct 5% withholding tax – GH¢1,192.30
656. Section 84(2) of the Internal Revenue Act 2000, (Act
592) requires among others that tax should be withheld
from payments made to a resident person for goods and
services in excess of fifty currency points.

657. We noted that the Accountant, Mr. Tweneboah


Dwenti failed to deduct a total amount of GH¢1,004.95 as
5% withholding tax from total payment of GH¢20,099.00
made to Suppliers as shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


171 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Date P.V. Details Payee Amount 5% Tax
No. GH¢
01/11/ 1/11/ Purchase of Nancy Agro 7,915.00 395.75
15 15 14 pcs of Chemical and
knapsacks, Farms Ent.
282pcs of
cutlasses, 10
boots, 4
wheelbarrow
s, 11 trays,
14pans
03/12/ -do- Cost of 10 Evergreen Ltd. 2,350.00 117.50
15 boxes of
weedicides
03/12/ -do- Cost of 14 Sir Charles 1,584.00 79.20
15 radio, 14 Electrical Ent.
lamps, 14
shovels, 1
foam
mattress
04/06/1 2/6/ Cost of Nancy Agro 2,250.00 112.50
5 15 Glyphosate Chemical and
Farms Ent.
04/06/ 2/6/ Ploughing Nancy Agro 3,000.00 150.00
15 15 Chemical and
Farms Ent
04/06/ 2/6/ Harrowing Nancy Agro 3,000.00 150.00
15 15 and raging Chemical and
Farms Ent
Total 20,099.00 1,004.95

658. Furthermore, the Accountant on three occasions


deducted a withholding tax totalling GH¢187.35 from
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172 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
payments to Suppliers but failed to remit the amount to
the Commissioner.

659. We urged the Municipal Director to ensure that


the Accountant remitted the sum of GH¢187.35 to the
GRA.

DISTRICT DIRECTORATE OF AGRIC – SAMPA


Outstanding Loans – GH¢30,547.00
660. Regulation 110 of the Financial Administration
Regulations, 2004 stipulates that a head of department or
the officer to whom the duties of the head of department
have been delegated shall ensure that advances issued are
duly recovered in accordance with the appropriate
agreement.

661. We noted that the District Director of MOFA,


Sampa was able to recover and pay to chest an amount of
GH¢33,634.00 out of a total amount of GH¢53,181.00
advanced to 195 farmers in the 2010, 2011 and 2012
farming seasons leaving a balance of GH¢30,547.00 as
shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


173 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Year No. of Amount Amount Amount
farmers Recovered Outstanding
GH¢ GH¢ GH¢
2010 104 24,473.00 11,648.00 12,825.00
2011 59 18,129.00 3,966.00 14,163.00
2012 32 10,579.00 7,020.00 3,559.00
Total 195 53,181.00 33,634.00 30,547.00

662. The District Director’s failure to do proper


assessment on the farmers’ ability to pay and ineffective
loan recovery mechanism denied other prospective
farmers from benefitting from the facility.

663. We recommended to management to put in place


pragmatic measures to recover the outstanding loans of
GH¢30,547.00 to enable other farmers benefit from the
facility.

MINISTRY OF INTERIOR
High Cost on Internal Security – GH¢26,100.00
664. Regulation 25 of the Financial Administration
Regulations 2004 requires that “A head of department
shall ensure that moneys are utilised in a manner that
secure both optimum value for money and intention of
Parliament”.

665. Contrary to the above, we noted that an amount of


GH¢26,100.00 was paid to Magnum Force Security

Annual Report of the Auditor-General on the Public Accounts of Ghana –


174 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Company Limited for providing internal security to the
Ministry of Interior which could have been done by the
Ghana Police Service at no cost.

666. This expenditure on the private security was a


drain on the Ministry’s scarce resources since the whole of
internal security apparatus was under the Ministry.

667. We urged management to rather rely on the Ghana


Police Service to provide internal security for the Ministry.

Failure to Obtain Requisite Quotations – GH¢18,342.50


668. Section 43(1) of the Public Procurement Act 2003,
(Act 663) requires that procurement entity shall request
quotations from as many suppliers or contractors as
practicable but at least three different sources when
making purchases in order to obtain the most competitive
price for its goods and services.

669. In contrast, four payment vouchers covering a sum


of GH¢18,342.50 for purchase of goods and services were
made without quotations from at least three different
suppliers, neither did management seek approval from
the Procurement Authority to do sole sourcing. Details are
shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


175 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PV No. & Item Payee Amount
Date GH¢
604/15 of Payment for 100 Service Emal GH 3,290.00
03/02/15 Charter Ltd.
569/15 of Payment for 1000 Emal GH 7,520.00
09/01/15 Christmas Cards and Ltd.
500 Unit Call Cards
565/15 of Spraying Conference Vard 1,762.50
31/12/14 Room Furniture Systems
606/15 of 4 Tyres (285/65/17) x 2 Infinity 5,770.00
04/02/15 tyres (255/70/18) Tyres GH
Ltd.
Total 18,342.50

670. This practice could deprive the Ministry of


obtaining fair pricing in the procurement of goods and
services.

671. We urged management to ensure that quotations


were always obtained from different suppliers to enable
the Ministry benefit from competitive pricing in future.

GREATER ACCRA REGIONAL POLICE


HEADQUARTERS
Poor Structure Maintenance
672. We observed that the building occupied by the
Alpha Swat unit, the cells and the armoury had developed
various cracks with the electrical wiring system in the

Annual Report of the Auditor-General on the Public Accounts of Ghana –


176 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Regional Orderly Room hanging in the air causing risk to
police personnel.

673. Lack of maintenance culture on the part of the


Ghana Police Service occasioned the irregularity.

674. In our opinion the structure had become a


deathtrap not only to police personnel but to inmates of
the cells. Again, the situation at the Regional Orderly
Room exposed the personnel and valuable items to danger
in the event of fire outbreak.

675. We urged management to consult headquarters for


rehabilitation of the building to save lives.

CENTRAL MOTOR TRANSPORT AND TRAFFIC


DEPARTMENT (MTTD) – POLICE ACCRA
The Need for Clamps and Database System
676. As part of the mandated responsibilities, the
Central Motor Traffic and Transport Department is to
ensure the effective management and control of road
traffic and offences. One of the means to reduce, if not
eliminate road offences, is to clamp vehicles of recalcitrant
drivers.

677. We noted that, with advancement in technology,


the Department had no Database System to track vehicles.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


177 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
678. Similarly, at the Accra Regional Police
Headquarters, Nima and Tesano Divisional Headquarters
there were no electronic database on licensed firearms and
their renewals.

679. Available information on firearms and their


renewals were in voluminous hard copies which dates
back to 30 years and above, causing congestion in the
record rooms.

680. We urged management to liaise with headquarters


to install databases for firearms and tracking of vehicles,
and also procure clamps to control road traffic and
criminals for effective control management.

ACCRA EAST DIVISIONAL HEADQUARTERS –


KPESHIE
Failure to Record Donated Motor Bikes into the Store
Records
681. Regulation 1512 of the Store Regulations 1984
requires that a file shall be opened for each major item of
plant and machinery received and all correspondence
including papers which deals with expenditure relating to
it shall be kept in the file.

682. Contrary to the above, four motor bikes donated to


the Teshie and Nungua Police Stations by the then
Member of Parliament for the area, Hon. Benita Sene

Annual Report of the Auditor-General on the Public Accounts of Ghana –


178 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Okity-Duah were neither recorded in the store records nor
embossed with Police Identification mark.

683. This could lead to diversion of the bikes for private


use.

684. We urged management to ensure that the motor


bikes were recorded in the store records and embossed.

BAATSONA POLICE DIVISIONAL


HEAQUARTERS – BAATSONA
Abandoned Motorbikes
685. Regulation 9 of Police Service Regulations, 1971 (LI
704) stipulates that property that come into the custody of
the Police if not claimed within two months shall be
disposed of through public auction and the proceeds paid
as follows: 75% into the Consolidated Fund and 25% into
the Ghana Police Welfare Fund.

686. On the contrary, we found that nine Motorbikes


and a Nissan Saloon Car have been abandoned at the
Sakumono Police Station for over a year. These motor
bikes were damaged beyond identification and economic
repairs and are occupying useful economic space at the
Station. The details are presented in a table below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


179 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
No Make of Motor Bike Registration No. Date of
Accident
1 Honda Motorbike Missing number 2015
plate
2 Royal Motorbike Missing number 2015
plate
3 Black motorbike M-09-GW 423 2015
(make/brand not
identified)
4 Black motorbike M-13-GR 1444 2015
(make/brand not
identified)
5 Black motorbike Missing number 2015
(make/brand not plate
identified)
6 Black motorbike M-11-GR 6234 2015
(make/brand not
identified)
7 Blue motorbike Missing number 2015
(make/brand not plate
identified)
8 Red motorbike Missing number 2015
(make/brand not plate
identified)
9 White motorbike Missing number 2015
(make/brand not plate
identified)
10 Nissan Saloon Car GE 6552-Z 2015

Annual Report of the Auditor-General on the Public Accounts of Ghana –


180 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
687. To avoid further deterioration in economic value,
we advised management to refer the issue to a Board of
Survey for further action.

GHANA POLICE SERVICE WA


Cash Exhibit not Accounted for – GH¢15,000.00
688. Part 1 Regulation 15(1) of the Financial
Administration Regulations, 2004 (LI 1802) stipulates that,
“any public officer or revenue collector who collects or
receives public and trust 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.”

689. Our review of the Regional CID records revealed


that, cash exhibit of GH¢15,000.00 was received from a
suspect, Mr. Francis Yelfora by investigator, D/Sgt. Micah
J. Arthur who was later transferred to Tepa in the Ashanti
Region. D/Sgt. Micah Arthur indicated in the Loss Stolen
Recovered Property Register that the late Regional Crime
Officer, Mr. Daniel Kwantwi, authorised the release of the
amount of GH¢15,000.00 to Mr. Francis Yelfora, the
rightful owner. However, Mr. Francis Yelfora had not
signed as having received the money.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


181 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
690. We recommended to the Regional Commander to
ensure that D/Sgt. Micah Arthur was invited to properly
account for the exhibit amount.

Expenditure without Payment Vouchers – GH¢5,885.00


691. Regulation 1(b) of FAR, 2004 (LI 1802), states that
“any public officer who is responsible for the receipt,
custody and disbursement of public and trust moneys,
shall keep proper records of all transactions and shall
produce records of the transaction for inspection when
called upon to do so by the Minister, the Auditor-General,
the Controller and Accountant-General or any officer
authorised by them.”

692. The Accountant at the Police Clinic failed to raise


payment vouchers to support an amount of GH¢5,885.00
allegedly disbursed.

693. We advised the Regional Commander to recover


the amount from the Accountant.

GHANA POLICE SERVICE – TUMU


Non replacement of riffles
694. Police Standing Instructions Order 96(3) requires
that arms which require repairs shall be dispatched to
officer commanding depot through the superior officer in
charge of the District.

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182 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
695. We observed during our review at the Tumu
police station that six 37 MM SMGs riffles which were sent
to Wa, the Regional Command to be forwarded to Accra
for repairs since September 2008 had neither been repaired
nor replaced as detailed below:

No. Riffle No.


1. 37 MM SMG 12026
2. 37 MM SMG 12099
3. 37 MM SMG 12249
4. 37 MM SMG 13087
5. 37 MM SMG 13124
6. 37 MM SMG 12079

696. Failure to repair or replace the arms resulted in the


reduction of the arms available to the station. This lapse
meant that some officers could go on patrol duties without
arms and might be exposed to danger.

697. Management in response said the SMG riffles were


no longer in use by the Service and had requested for
replacement with AK 47 riffles to ensure effective security
patrols in the District.

698. We recommended that the District Commander


should impress upon the Police Administration to hasten
the replacement of the SMG riffles with AK 47 riffles to
ensure effective security patrols in the District.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
183 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
DIVISIONAL POLICE HEADQUARTERS – WENCHI
Fuel purchases not accounted for-GH¢11,964.00
699. Regulation 1604 of Store Regulations, 1984, states
that, a vehicle Log Book shall be maintained for each
vehicle and shall always be carried on the vehicle.
Journeys undertaken shall be recorded and full particulars
of receipts of fuel, oil and lubricants shall be entered up
daily in the Log Book by the driver. Recordings in the Log
Book shall be made in duplicate. All journeys recorded in
the Log Book shall be certified by the officer using the
vehicle.

700. We however observed that, fuel allocated to the


Nkoranza, Kintampo, Dormaa Ahenkro, Techiman
District and Yeji Commands totalling GH¢11,964.00
during the period under review, were not accounted for in
the respective vehicle log books.

701. We could therefore not ascertain whether the fuel


was actually purchased and used in the interest of the
Service.
District Unrecorded Fuel (GH¢)
Dormaa Ahenkro 2,364.00
Techiman 2,000.00
Nkoranza 4,400.00
Kintampo 4,800.00
Yeji 400.00
Total 11,964.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


184 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
702. In the absence of the appropriate documentation to
authenticate the payments, the amount should be
recovered from the respective Commanders.

DIVISIONAL POLICE COMMAND – DORMAA


AHENKRO
Un-receipted remittances – GH¢33,440.00
703. Regulation 28(1) of the Financial Administration
Regulations, LI 1802 of 2004 states that a collector who is
satisfied that money tendered is in order, shall issue an
original receipt to the payer.

704. We noted that between September 2015 and


August 2016 a total amount of GH¢12,640.00 received as
imprest for fuel and GH¢20,800.00 for guard duties was
not receipted with official receipts contrary to the
regulation stated above.

705. Failure of the Police administration to post a


paymaster caused the anomaly which could be abused by
both Berekum and Dormaa to the detriment of the Service.

706. We recommended that the Dormaa Divisional


Commander should liaise with Headquarters, Accra to
have a Divisional paymaster posted to the Division to help
streamline the accounts.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


185 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA POLICE SERVICE – TECHIMAN
Failure of the MTTD to keep register for unclaimed
properties
707. Regulation 139(1) of the Police Service Regulations,
CI 76 of 2012 provides that the officer in charge of a police
station shall keep at the station a register in which shall be
entered a description of property which is in the
possession of the Police Station where the owner of the
property could not be ascertained or no order of a Court
had been made in respect of the property.

708. On the contrary, the Station Officer of Motor


Traffic and Transport Department (MTTD) failed to record
80 unclaimed vehicles, motor bikes and motor tricycles
parked at the MTTD office in a Station Register. The items
had also created congestion at the Station and no action
had been taken on their disposal.

709. We recommended that a register should be opened


to record and control the items and appropriate action
taken to decongest the yard.

GHANA NATIONAL FIRE SERVICE –


HEADQUARTERS
Non Recovery of Rent Advances – GH¢364,040.00
710. Regulation 113(1) of the Financial Administration
Regulations, 2004 requires that recoveries from official
salaries shall commence from the salary of the next

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186 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
complete month after the month in which the advance
was made.

711. Contrary to the above regulation, management on


the 10 of March, 2015 disbursed a total amount of
th

GH¢364,040.00 from the Rent revolving fund to 5,200


officers in the 10 regional offices through the Regional
Commanders as rent advance. There was no input for
recoveries from the salaries of the beneficiary personnel
after 10 months of disbursement as detailed below:

Rent Revolving Fund Disbursement In 2015


Number Of Amount
Region
Beneficiaries GH¢
Greater Accra 1,130 79,100
Central 590 41,300
Eastern 673 47,110
Ashanti 640 44,800
Western 411 28,770
Upper West 243 17,010
Tema 479 33,570
Fats 82 5,740
Brong Ahafo 580 40,600
Volta 372 26,040
Total 5,200 364,040.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


187 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
712. Management’s failure to ensure recovery of the
amount could deny others from benefitting from the
facility.

713. We urged management to comply with the


regulation and ensure that the
GH¢364,040.00 was fully recovered from the beneficiaries.

Unearned salaries - GH¢46,320.94


714. Regulation 297(1) of FAR, 2004 (LI 1802) mandates
a head of department to cause the immediate stoppage of
salaries of public servants who absent themselves from
duty without reasonable cause, or completely separate
from the department as a result of criminal conviction,
retirement, resignation or death.

715. We noted during our review of the input forms


that in the year 2015 a total of GH¢46,320.00 was paid as
unearned salaries to six separated staff as detailed below:

Name Rank Staff Mode of Date of Date of Duratio Salary Total


No. separation separa deletion n GH¢ GH¢
tion
Evelyn ADOII 833838 Deceased 9/14/ 12/31/ 3 2,547.40 7,642.20
Essien 2015 2015 Months
Dauda STNOI 9.2E+08 Voluntary 8/1/ 2/3/ 5 1,843.44 9,217.20
Mahama Retirement 2015 2016 Months

Mensah ADOI GF 10070E Voluntary 10/30/ 1/31/ 3 3,467.44 10,402.32


Kweku Retirement 2015 2016 Months
Victor
Amedro GOI 9800014L Medical 8/11/ 12/31/ 4 1,843.44 7,373.76
Doris Retirement 2015 2015 Months

Annual Report of the Auditor-General on the Public Accounts of Ghana –


188 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Abdulai LA 200631B Dismissed 6/3/ 2/1/ 8 331.31 2,650.48
Fuseini 2015 2016 Months

Cornellus SUB/ 99000461 Deceased 8/15/ 2/2/ 6 1,505.83 9,034.98


Yao Tsey OP 2015 2016 Months
Tamakloe
Total 11,538.86 46,320.94

716. Management’s delay in deleting the names of the


six officers from the payroll resulted in the infraction.

717. The inaction of management had resulted in a loss


of public funds.

718. We advised management to promptly recover the


amount from the officers by charging it against their
gratuities.

Failure to obtain land title for properties


719. Best practices require adequate documentation on
all properties to ensure complete ownership.

720. Our audit at the Estate Unit of Ghana National Fire


Service revealed that, lands owned by the Service had no
documents as proof of ownership.

721. This situation could lead to encroachment and loss


of properties which could also be a drain to the resources
of the Service.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


189 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
722. We recommended that the lands should be duly
registered in the name of the Service.

723. Management accepted our recommendation and


responded that steps were under way to ensure that all
properties owned by the Service were duly registered as
soon as funds were received.

GHANA PRISONS HEADQUARTERS


Indebtedness to Agriculture Revolving Fund –
GH¢419,085.14
724. Regulation 179(1) of FAR, 2004 (LI 1802), states
that “except as provided for in the Financial
Administration Act, 2003 (Act 654) and these regulations,
a head of department may not authorise payment to be
made out of funds earmarked for specific activities for
purposes either than those activities”.

725. Contrary to the above, we observed during our


review of Agriculture Revolving Fund for the Ghana
Prisons Headquarters that the Service borrowed an
amount of GH¢192,077.00 from the fund during the year
2015. This increased the outstanding debt of
GH¢227,008.14 from previous years to a total of
GH¢419,085.14 as at 31 December 2015.

726. Continuous borrowing from the Agriculture


Revolving Fund was attributed to the failure of

Annual Report of the Auditor-General on the Public Accounts of Ghana –


190 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Government to meet the Service’s total yearly budget
allocations and delays in releasing the already inadequate
funds.

727. The routine borrowing from the fund defeated the


purpose of the scheme since funds were not readily
available for agricultural activities due to delays in
releasing fund to agricultural stations.

728. We urged Management to strictly observe


stipulated regulations or apply to Ministry of Finance for
approval to maintain part of the fund as a supplement to
ration funds from Government.

GHANA PRISONS SERVICE - YEJI


Unpaid Medical bills – GH¢19,515.88
729. During the audit we sighted demand notice from
St. Mathias Hospital, Yeji dated 11 March 2016 to the
Camp demanding an amount of GH¢27,277.61 being cost
of medical services rendered to inmates from January 2011
to December 2015.

730. However, our reconciliation revealed that the


actual indebtedness was GH¢19,515.88 and not
GH¢27,277.61.

731. Failure to diligently reconcile bills submitted could


result in paying for medical services not received.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
191 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Additionally, the long delay in settling the debts could
result in the Hospital cutting services to the Camp and
taken legal action as well.

732. We therefore recommended to management to


liaise with the head office for the settlement of the debt of
GH¢19,515.88.

PRISONS SETTLEMENT CAMP – DUAYAW


NKWANTA
Indebtedness to VRA/NED and Duayaw Nkwanta
Community Water Development- GH¢135,229.42
733. We noted from the audit that the Camp owed
water and electricity bills of GH¢13,041.20 and
GH¢122,188.22 respectively.

734. Management intimated that head office failure to


settle the bills resulted in the outstanding debt.

735. The non-payment of electricity and water bills


could lead to disconnections from the services to the
Prison Camp which could be a potential security threat in
managing inmates.

736. We recommended to management to liaise with


the headquarters for the early payment of the outstanding
bills to avoid disconnection and its related problems.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


192 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Escapees from prison
737. Part 17, Clause 122 of the Prison Regulations of
1958 states that ‘‘the keeper of Prison shall take every
precaution for preventing escapes. He shall see that the
cells, bars, locks, bolts, and fastenings are examined every
day, and that nothing capable of being used to facilitate
escape shall be left or kept without proper safeguards
against such use’’.

738. Also, Part 22, Clause 180 of the same regulation


states that ‘‘No prisoner shall be allowed to pass the line
of escort; and should a prisoner attempt to escape, the
escort should call upon him to halt, and, if he refuses, shall
fire at him below the waist; but, if a prisoner reports that
he requires to use the latrine screen, he may be permitted
to do so in the charge of one of the escort’’.

739. Contrary to the regulations quoted above, we


noted that three prisoners escaped from lawful custody
and reports made to the police for investigations.

No. Name of Period Period Date of Prisoner’s Last place Officer Esco Rank
Prisoner to be served escape Number before in rt
served escape charge No.
of
Escort
1. Abdul 24 4 2/8/16 SYM/116/16 Farm Nicholas 6158 Chief
Fatawu mths. Months, CP plantation- Tei
office
30 Days Koforidua- Channor
Tano North r
district
2. Augustine 24 4 31/05/16 SYM/45/16 Outside Frank 9081 L/CP
Asomah mths Months, CP labour Agyapo
L
Ahinful 10 Day’s ng

Annual Report of the Auditor-General on the Public Accounts of Ghana –


193 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
3. Yaw 14 2 29/4/16 SMY89/2016 Koforidua Ennin 8425 Serge
Mensah mths Months, Farm-Tano Amank
ant
7 Day’s North wa Alex
4 Kwame 24 10/7/15 - - - - -
Issac mths.
5. Kwadwo 12 15/3/15 - - - - -
Nsia mths.

740. We also noted that two other convicts, Kwame


Isaac and Kwadwo Nsia, who were sentenced on 10/7/15
and 15/3/15 for 24 and 12 months respectively, were not
delivered to the Sunyani Prison to serve their jail terms.

741. We recommended that management should liaise


with the police to speed up with the investigation to get
the three escapees back into prison custody. Subsequently,
prison escorts should be more vigilant to avoid future
occurrences.

No title deeds for 194.90 acres of land for the Settlement


Camp
742. Regulation 272 of Financial Administration
Regulations, 2004 (LI 1802) requires the maintenance of
legal documents including title deeds for the purpose of
establishing ownership of any property.

743. Contrary to the provision quoted above, our


review of records disclosed that the Service had no title
documents covering 194.90 acres of land as shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


194 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Koforidua Farm land 144.90 acres
Koforidua Prison Camp Settlement Land 50 acres

744. The absence of the legal title deed on the camp


lands and absence of fence walls could increase
encroachment resulting in litigation which could affect the
development of the camp.

745. We urged management to obtain the title deeds


and other legal documents for the camp’s lands.
Furthermore, management should fence the boundaries of
the Prison’s land to avoid encroachment.

GHANA PRISONS SERVICE-FEMALE (SUNYANI)


Unearned salaries – GH¢9,769.36
746. Regulation 297(1) of the Financial Administration
Regulations, 2004 (LI 1802) stipulates that a head of
department shall cause the immediate stoppage of
payment of salaries to a public servant when that public
servant has been absent from duty, on leave without pay,
resigned , retired or died.

747. We however observed during our examination of


the mechanized payment vouchers that Mrs. Grace
Adams vacated post in December 2015 but was wrongly
paid up to June 2016, unearned salaries totalling
GH¢9,769.36.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


195 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
748. Management’s continued approval of payment of
her salary through the E-PV salary validation system
resulted in the anomaly which deprived the State of the
funds.

749. We urged management to contact the bankers of


the staff, to transfer the total amount of GH¢9,769.36 into
the Controller and Accountant- General’s Suspense
Account, failing which the amount should be recovered
from the Accountant and Camp Commander.

GHANA IMMIGRATION SERVICE


13 Interdicted Officers
750. Public Services Commission letter dated 6 April
2009 on guidelines for interdiction state among others that
‘…within a maximum period of three months, appropriate
decisions should be taken to lift officers on interdiction or
else terminate the appointment of the officers involved”.
751. Contrary to the above directive, we noted that 13
officers of Ghana Immigration Service had for various
offences committed, been on interdiction for more than a
year as detailed below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


196 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Officers On Interdiction
Staff Name Rank Station Date of
No. Interdiction
IS/3038 Richard Atiso AICO I Obuasi 19/1/2015
AICO
IS/5317 Prince A Addo II HQ 6/2/2015
IS/3262 Jeffrey Tetteh ICO Paga 23/2/2015
ASST.
IS/S2222 Collins Appiah INSP HQ-VPERV 23/2/2015
IS/2342 Nathan Kpegbah ICO HQ 13/7/2015
IS/4667 Joseph Amponsah AICO I HQ-Stores 13/7/2015
IS/3963 Courage Ghandih AICO I HQ-Africa 13/7/2015
IS/3132 Francis Quaicoe AICO I Tema 13/7/2015
IS/1610 Emmanuel Voryee AICO I HQ-Provo 27/7/2015
Mary V Agyeman-
IS/3410 Duah AICO I HQ-Africa 27/7/2015
IS/2616 Edward A Boateng ICO HQ-Stores 27/7/2015
Awal Salifu AICO
Mohammed II ENF 9/12/2015
Maurice Acquah AICO I ENF 11/12/2015

752. Since officers on interdiction are to be paid fifty


per cent of their monthly salaries until the case is
determined, management should facilitate the early
completion of investigations and take timely decision on
them.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


197 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
753. We urged management to ensure that the fate of
these officers was determined on time to relieve the
officers from undue hardship.

GHANA NATIONAL FIRE SERVICE, DABOASE


Delay in concluding investigations on two interdicted
drivers
754. Two drivers of the Service in the persons of FM
Walter Eshun and STNO1 Lipton Joe Ansah were placed
on interdiction on 18/07/14 pending the final
determination of a case involving the alleged pouring of
salt into the engine of a fire tender with registration
number FS 113 which had rendered the vehicle
unserviceable.

755. The drivers had been on half salaries for the past
two years while the tender had been grounded for the
same period.

756. We advised management to expedite action on the


investigations and take appropriate sanctions against the
offenders to serve as deterrent to others. Meanwhile,
management should take steps to repair the vehicle.

GHANA NATIONAL FIRE SERVICE – SUHUM


Fuel purchased not accounted for - GH¢1,960.00
757. Regulation 1604 of the Stores Regulations, 1984
requires drivers of official vehicles to record fuel and

Annual Report of the Auditor-General on the Public Accounts of Ghana –


198 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
lubricants purchased in a vehicle log book indicating the
receipt and utilization of the fuel.

758. Contrary to the above, the Service procured fuel


worth GH¢1,960.00 for a fire tender with registration
number FS 533 without recording same in the log book.

759. In the circumstances, we could not confirm


whether the fuel purchased was used in the interest of the
Service.

760. We urged management to ensure compliance to


enhance sanity in future.

REGIONAL FIRE SERVICE – BOLGA


Failure to renew fire safety certificates - GH¢6,400.00
761. Regulation 4 of the Fire Precaution (Premises)
Regulation, 2003 (LI 1724) enjoins holders of fire safety
certificate to renew their licenses annually.

762. On the contrary, the Regional Fire Service failed to


ensure that 13 Guest Houses renewed their fire safety
certificates since 2011, resulting in their indebtedness of
GH¢6,400.00 to the Station.
763. We recommended that management should
compel the defaulters to renew their certificates and have
the appropriate fees paid.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


199 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA PRISONS SERVICE – TARKWA
Tarkwa Prisons Service indebtedness – GH¢73,879.87
764. We noted that the Prisons Service rented
residential accommodation for officers but had failed to
pay rent of GH¢109,440.00 due the landlords as at 30 June
2016. At the instance of the audit in December 2016, the
Service paid an amount of GH¢48,240.00 leaving a balance
of GH¢61,200.00.

765. Furthermore, the Service owed the Tarkwa


Municipal Hospital a total amount of GH¢12,679.87 from
October 2014 to May 2016 in respect of medical services
offered to inmates.

766. According to management, the debt accumulated


due to non- release of funds from the Prisons
Headquarters.

767. The situation could compel the respective


landlords to eject the officers from their rooms which
could affect work performance. The hospital had also
threatened to withdraw health care services.

768. We recommended to management to seek funds


from headquarters to pay all outstanding bills to enhance
their image.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


200 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
TAMALE CENTRAL PRISONS
Inadequate funding for technical and vocational training
for prisoners
769. The Ghana Prisons Service as part of its mandate
under the 1992 Constitution of Ghana, exists to perform
the following functions:
a. Safe custody of prisoners
b. Welfare of prisoners
c. Reformation and rehabilitation of prisoners.

770. However, the Tamale Central Prisons was unable


to effectively discharge such mandate effectively because
workshops for reformation and rehabilitation of prisoners
were in deplorable state and needed to be revamped to
serve such purposes.

771. Inadequate funding from Government was the


cause of the situation.

772. Absence of necessary skills for ex-convicts to


generate income for survival could cause some prisoners
to go back to their nefarious activities after their release.

773. We recommended that Management should seek


adequate funding from Government to resource the
training workshops of the prisons to enable prisoners
acquire special skills before their release.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


201 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA IMMIGRATION OFFICE- KOFORIDUA
Unearned salary – GH¢89,785.68
774. Regulation 304 of FAR, 2004, (a) (L.I. 1802) states
“A head of department or a head of management unit
shall examine and certify the personal emolument
payment vouchers to ensure that only staff belonging to
the unit are on the payment vouchers.”

775. Our review of the payroll records disclosed that


although management declared Messrs Emmanuel
Winfred Quansah and Nicholas Quartey, who were ex-
employees of the Service as “Unknown” when the Service
payroll was validated, the names continued to appear on
the March, May and November 2016 salary vouchers.

776. This resulted in a wrongful payment of a total


salary of GH¢89,785.68 for the three months.

777. We recommended that management should


impress on the Controller and Accountant- General to
delete the names of the ex-staff from the payroll.
Furthermore, management should instruct their bankers
to promptly transfer the amounts involved into the
Consolidated Fund or recover same from the Controller
and Accountant General staff in charge of pay roll.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


202 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF YOUTH AND SPORTS

Unsupported Payments – US$1,000,000.00


778. Regulation 39 of the Financial Administration
Regulations (FAR) 2004, LI 1802, states that “the head of
accounts section shall control disbursement of funds and
ensure that they are due and any order for disbursement
that does not meet these requirement is rejected”.

779. We observed that two payments totalling


US$1,000,000.00 made to National Sports Authority (NSA)
by the Ministry of Youth and Sports for Ghana’s
participation in the All African Games in Congo
Brazzaville were not supported with relevant expenditure
returns such as signed claim sheets, hotel bills and official
receipts. Details are shown below:
Date PV. No Chq Amount Purpose Payee
No US$
24/03/16 - 43375 800,000.00 Accountable National
funds Sports
released for per Authority
diem
food,
accommodation
for Ghanaian
Contingent
who participated
in All
African Games

Annual Report of the Auditor-General on the Public Accounts of Ghana –


203 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
16/09/16 39/2015 433786 200,000.00 Additional USA
accountable (Rev. Otoo)
funds for per
diem, food
accommodation
for the remaining
period per SOS
call from Congo
Total 1,000,000.00

780. According to the Ministry, the amount was part of


the financial year’s allocation to the NSA. The NSA
Accountant failed to ensure that relevant supporting
documents were provided to authenticate the
disbursement.

781. To ensure proper accountability and effective


control over the use of government funds, we advised
management to ensure that NSA accounted for the
$1,000,000.00 received or be surcharged with the amount.

MINISTRY OF EMPLOYMENT AND LABOUR


RELATIONS YOUTH EMPLOYMENT AGENCY
Understatement of SSF-contribution - GH¢107,718.28
782. Section 3(3) of the National Pensions Act, 2008 (Act
766) states that, Out of the total contribution of 18.5%, an
employer shall within 14 days from the end of each month
transfer the following remittances to the mandatory
schemes on behalf of each worker:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


204 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
a. Thirteen and half percent (13.5%) to the first tier
mandatory to basic National Social Security
Scheme; and
b. Five percent (5%) to the second tier mandatory
occupational pension scheme.

783. Between January and December 2015, a total of


GH¢1,927,693.79 representing staff SSF contribution (1st
and 2nd tier pension -18.5%) was collected, out of which
GH¢1,819,966.51 was remitted to fund managers (SSNIT
and GLICO) leaving an outstanding amount of
GH¢107,727.28 as shown below:
Period Collections Remittances Balance
GH¢ GH¢ GH¢
Jan-Dec 2015
1st Tier (SSNIT) 1,421,545.79 1,375,235.35 46,310.44
2nd Tier (GLICO) 506,148.00 444,731.16 61,416.84
1,927,693.79 1,819,966.51 107,727.28

784. Management indicated that, the difference was as


a result of some staff having problems with their SSNIT
identification numbers.

785. Non remittance of SSF deductions to fund


managers or delayed remittances could impact negatively
on workers’ pension computation.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


205 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
786. Management promised to rectify the problems and
have the difference remitted.

Direct Debit – GH¢56,390,383.98


787. Regulation 2 of FAR, 2004 (LI 1802) requires all
heads of department to control and manage efficiently all
financial resources under their control.

788. The Ministry of Finance in September, 2015 caused


Bank of Ghana to transfer an amount of GH¢56,390,383.98
from the account of Youth Employment Agency to the
Ministry without their knowledge.

789. There was no documented contractual agreement


concerning the withdrawal and reimbursement.

790. We requested management to pursue


reimbursement of GH¢56,390,383.98. The Ministry of
Finance indicated its commitment to refund the amount.

Unearned Salary - GH¢5,574.12


791. Regulation 297(1) of FAR 2004, (LI 1802) requires a
head of department to cause the immediate stoppage of
payment of salary to the public servant when the public
servant has retired, resigned or vacated post.

792. A staff of the Youth Employment Agency, Ms


Gloria Edusei who resigned from active service in June,

Annual Report of the Auditor-General on the Public Accounts of Ghana –


206 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
2015 had her July and August, 2015 salaries of
GH¢3,998.00 paid to her account at Agricultural
Development Bank.

793. Similarly, Mr. Simon Sowu (staff number: 73762)


of the Labour Department, head office, Accra who died in
active service on 4th September, 2016 had his September
and October 2016 salaries of GH¢1,576.12 paid to his
account at ADB Adabraka branch.

794. Management’s failure to ensure prompt deletion of


the names from the payroll after separation resulted in the
payment of the unearned salaries.

795. Management also failed to instruct their bankers to


withhold and pay to government chest all unearned
salaries.

796. We recommended that management should


recover the unearned salaries to chest.

NATIONAL YOUTH EMPLOYMENT-SEKONDI


Unsupported payments-GH¢53,110.00
797. Regulation 39(2c) of the Financial Administration
Regulations, 2004 requires heads of accounts to control
disbursement of funds and also ensure that the
transactions are properly authenticated and amounts due
are payable.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
207 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
798. Our review however disclosed that, management
disbursed an amount of GH¢53,110.00 on 21 payment
vouchers to District offices but failed to support the
vouchers with receipts and other expenditure details to
authenticate the payments.

799. The lapse was due to Accountant’s failure to


ensure that all paid vouchers were adequately supported
with the necessary expenditure details.

800. Payments made without the relevant details raised


doubt as to the authenticity of the disbursements.

801. We requested management to provide the


expenditure details to authenticate the payments or
refund the amount.

Payments without authority notes-GH¢6,470.80


802. Financial Administration Regulations, 2004
Regulation 43 states that ‘’ A payment shall be made only
to the person or persons named on the payment voucher
or their representatives duly authorised in writing to
receive the payment’’.

803. Contrary to this regulation, our review disclosed


that a total amount of GH¢6,470.80 allegedly paid to 10
District Coordinators between August 2010 and
September 2012 as imprests and expenses during training
Annual Report of the Auditor-General on the Public Accounts of Ghana –
208 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
programmes were received on their behalf without
authority notes.

804. The omission could be attributed to a deliberate


attempt on the part of the Accountant to misapply funds
from the Agency’s Account.

805. We therefore recommended that management


should surcharge the Accountant with the amount.

NATIONAL YOUTH EMPLOYMENT AGENCY,


DABOASE
Failure to deduct 10% tax – GH¢2,154.50
806. Section 116(1a)(ii), of the Income Tax Act, 2015
(Act 896) requires that an employer shall withhold 10% tax
from the payment of allowances to an employee and remit
same to the Commissioner-General.

807. Between 17 June 2016 and 19 August 2016,


management paid a total amount of GH¢21,540.00 as
allowances to seven facilitators but failed to deduct 10%
tax component of GH¢2,154.00 to be remitted to the
Commissioner. Details are provided below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


209 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Date Facilitator Amount 10%
(GH¢) ded.
17/06/16 Dr. Dolf Kofi Badu 3,465.00 346.50
Sutherland
17/06/16 Patrick Freeman 3,465.00 346.50
Eweh
17/06/16 Kunamsi Iddrisu 3,465.00 346.50
17/06/16 Ebenezer 3,465.00 346.50
AglahTamakloe
17/06/16 Mamatayakubu 715.00 71.50
17/06/16 Darko Joe Christian 715.00 71.50
19/06/16 Dr. Dolf Badu 1,500.00 150.00
Sutherland
19/08/16 KunamsiIddrisu 1,500.00 150.00
19/08/16 Sheila 1,500.00 150.00
AmpaduOkyere
19/08/16 Ebenezer 1,500.00 150.00
AglahTamakloe
19/08/16 MamataYakubu 250.00 150.00
Total 21,540.00 2,154.00

808. We urged management to recover the total amount


of GH¢2,154.00 from the facilitators and remit same to the
tax authority, failing which the authorising and paying
officers should be held liable for refund of the amount.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


210 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
LABOUR DEPARTMENT, HEAD OFFICE, ACCRA
Unpaid workmen’s compensation claims –
GH¢3,506,035.10
809. Section 35 of the Labour Law provides that,
“Compensation shall be paid to the workman or his
dependent within three months (90 days) within which
compensation must be paid when the employer is notified
of his liability to pay compensation”.

810. Our review disclosed that between 2014 and 2016,


182 workers from 23 institutions had their workmen’s
compensation claims totalling GH¢3,506,035.10 remained
unpaid due to lack of funds as detailed below:

No. Institutions No. of Amount


claimants GH¢
1. Ghana Police Service 90 1,246,889.66
2. Ghana Education Service 27 575,736.22
3. Ghana Prisons Service 4 120,020.81
4. Judicial Service 2 100,088.12
5. Commission On Human 14,895.63
Rights And Administrative 1
Justice
6. Department Of 1 65,793.33
Community Development
7. Department Of Social 4 90,983.69
Welfare
8. Electoral Commission 3 60,290.56
9. Environmental Health 1 20,748.35
Annual Report of the Auditor-General on the Public Accounts of Ghana –
211 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
10. Forestry Commission 1 7,883.52
11. Ghana Broadcasting 1 11,969.52
Corporation
12. Ghana Statistical Service 1 17,290.29
13. Ghana National Fire 1 187,696.57
Service
14. Ghana National Service 1 44,883.99
Scheme
15. Lands Commission 1 29,923.32
16. Ministry Local 6 130,831.89
Government
17. Ministry Of Food And 7 183,181.05
Agriculture
18. National Commission For 3 43,796.87
Civil Education
19. Ghana Health Service 22 483,573.00
20. Public Workers 2 35,909.76
Department
21. Head Of Civil Service 1 11,969.33
22. Birth And Death Registry 1 17,953.99
23. Labour Department 1 3,725.63
Grand Total 182 3,506,035.10

811. The delay in paying the compensation had caused


untold hardships to the claimants most of whom were
physically incapacitated and out of jobs.

812. The continued delay could result in litigation and


payment of judgment debt.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


212 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
813. We urged management to request for funds from
Ministry of Finance to pay all outstanding claims.

814. Management noted our recommendation for


compliance and further stated that the claims had been
forwarded to the Ministry of Finance for further action.

NATIONAL LABOUR COMMISSION

Failure to transact business with VAT registered persons


– GH¢2,555.79
815. Regulation 183(4) of FAR, 2004 (LI 1802) 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 Minister with the
necessary justification.

816. Management paid GH¢14,604.57 on five different


vouchers for the purchase of items from non-registered
VAT companies without VAT deductions of GH¢2,555.79.

817. We recommended to management to institute


proper measures to forestall the reoccurrence of the
anomaly in future.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


213 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
DEPARTMENT OF SOCIAL WELFARE,
BOLGATANGA
Imprest not accounted for – GH¢92,315.50
818. Regulation 288(2) of FAR 2004 stipulates 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).”

819. We however noted that 10 payment vouchers raised


to pay an amount of GH¢92,315.50 to seven officers to
undertake official assignments were not accounted for.

820. Failure on the part of the imprest holders and the


Accountant to take the required action accounted for the
lapse.
821. In the absence of relevant documents to retire the
imprest we could not determine whether the monies were
actually used in the interest of the Department.

822. This situation could result in misappropriation by the


imprest holders thereby affecting the cash flow position of
the Department.

823. We recommended to management to ensure that


the imprest was retired, failing which the GH¢92,315.50
should be treated as an advance and recovered from the
Officers.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


214 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF FOREIGN AFFAIRS AND REGIONAL
INTEGRATION WASHINGTON MISSION
Outstanding security deposits – $3,329
824. The Washington Mission rented a residential
accommodation situated at No. 14929 Habersham Circle,
Silver Spring, MD, 20906 from Mrs. Rita Jain for a staff. A
condition in the tenancy agreement compelled
management to make a security deposit of $2,500
refundable to the Mission on the expiry of the agreement.
The amount was to be deposited in an interest bearing
account that inured to the benefit of the Ghana Mission.

825. We noted that, when the occupant vacated the


premises, instead of the landlady, Mrs. Rita Jain,
refunding a total amount of $2,500.00, only $1,971.00 was
refunded to the Mission. The outstanding amount of $529
plus the interest element were not recovered from the
landlady. Meanwhile, Myfing Technical Services was
contracted by the Mission to rehabilitate and restore the
facility to its original condition at a contract sum of
$700.00.

826. Similarly, a security deposit of $2,800 made by the


Mission on behalf of a staff for accommodation located at
13 Autumn Ridge Court, Silver Spring, was also not
refunded to the Mission.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


215 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
827. The deposit plus interest were to be refunded to
the Mission after the expiration and vacation of the
premises. No documentary evidence was sighted to
confirm a refund from the landlord.

828. We requested management to pursue recovery of


the total outstanding security deposit of $3,329 together
with the interest.

TOKYO MISSION
Ghana’s indebtedness to M/S Lotte Co. Japan –
¥59,502,706
829. Available records at the Mission, disclosed that the
Government of Ghana owed a Japanese Company M/s
Lotte Company, Japan Limited an amount of ¥59,502,706 as
balance of mortgage loan obtained for the purchase of a
residence for the Head of Mission.

830. We also noted that management on several


occasions, issued request letters to the Ministry of Foreign
Affairs and Regional Integration for funds to be released
to service the loan.

831. As part of the agreement, Lotte Co. LTD. had the


option to take over the property itself, if the loan remained
unpaid for a long time, or to auction it and deduct what is
owed them; not to mention a further 6% per month levy
on monthly mortgage sum, in case of default.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


216 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
832. Management however, stated that the principal
sum left to be paid was ¥58,095,517.12.

833. Default payments could lead to extra cost by way


of interest payment. Furthermore, non-compliance with
the terms of the contract could result in repossession by
the creditor.

834. We urged management to confirm the amount and


also step up its efforts to have this long outstanding issue
settled to avert any possible embarrassment.

RIYADH MISSION
Overpayment of salaries to staff – €866.41
835. To ascertain the appropriateness of the recordings
in the Euro account, the Audit team reconciled the
accounts and noted that the under mentioned two officers
were overpaid salaries totalling €866.41 as shown below:

Name Month Amount Amount Over


in CB/ Credited paymen
Voucher to t-
€ Account €

H.E. Alhaji Said Dec.2014 7,021.46 7,174.00 152.54
Sinare
-do- Jan. 2015 7,021.46 7,174.00 152.54
Sub-Total 305.08
Edith Hajara Dombo Jan. 2015 3,562.85 3,623.87 61.02
-do- Feb.2016 3,562.85 3,623.87 61.02
Annual Report of the Auditor-General on the Public Accounts of Ghana –
217 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Edith Hajara Dombo Mar. 2015 3,562.85 3,623.87 61.02
-do- Apr. 2015 3,562.85 3,623.87 61.02
-do- May. 2015 3,562.85 3,623.87 61.02
-do- June. 2015 3556.76 3,629.93 73.17
-do- July. 2015 3,562.85 3,623.87 61.02
-do- Aug. 2015 3,562.85 3,623.87 61.02
-do- Sept. 2015 3,562.85 3,623.87 61.02
Sub-Total 561.33
Grand Total 866.41

836. The cause of the over payment was an over stated


figure on the cheques issued to pay salaries which were
not detected because of the Accounting Officer’s failure to
update and reconcile the accounts monthly.

837. We recommended for the recovery of the total


amount of €866.41 from the two officers else the
Accountant should be surcharged with the amount.

Unrecovered salary advance – SR 4,825.00


838. A review of the expenditure records of the Mission
disclosed that Abdul Ganiyu Abin Dogo, a driver at the
Jeddah Consulate was paid SR 4,825.00 on PV No. 0599932
of 11/12/14 as salary advance. We noted that the amount
had not been recovered.

839. The above anomaly occurred because the


Accounting Officer failed to effect monthly deductions
from the salaries of the officer.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
218 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
840. This contravened Section 174 of the FSAI which
states that it is the duty of the controlling officer to see
that regular deductions are made from an officer’s salary
to clear any advances outstanding in the officer’s name in
accordance with the terms under which the advance was
granted.

841. Failure to recover advance was likely to affect the


financial operations of the Mission which could lead to
loss of funds.

842. We therefore recommended for the recovery of the


amount from the officer which was accepted by
management.

TEHRAN MISSION
Undeveloped plot of land at Islamabad-Pakistan
843. We noted that the Mission had an undeveloped
plot of land at the Diplomatic enclave in Islamabad which
was given by the Capital Development Authority of that
city in perpetuity since 8 June 1973.

844. Correspondence from the Honorary Consul in


Islamabad indicated that at various times, the Embassy of
Malaysia had encroached on the land compelling the
Mission to report to the authorities to have the situation
reversed.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


219 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
845. The Embassies of France and Canada had also at
different times, expressed interest in possessing the land.
Furthermore, correspondence from the Honorary Consul
indicated that owners of the land, Capital Development
Authority of Islamabad had threatened to repossess the
land if construction work did not commence.
Management suggested fencing the land as a temporary
solution to secure it.

846. Delay in developing the land was caused by the


Mission not putting enough pressure on the Ministry for
funds to commence work.

847. The Mission risks losing the land to other


Diplomatic Missions if construction work was not started
soon.

848. We recommended that Management should


ensure that the €160,000 or GHȼ769,600 approved in the
2016 budget was released to enable construction of the
fence-wall to start.

Failure to account for revenue collected by Dr. Shadid


Rashid Butt, Honorary Consul General – €9,490.00
849. Section 68 of Foreign Service Accounting
Instructions, 1960 requires all revenue collectors to pay all
moneys collected to the Sub-Accountant at least once a
month.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


220 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
850. We observed from a statement presented by Dr.
Shadid Rashid Butt, an Honorary Consul General in
Islamabad and supported by duplicate General
Counterfoil Receipts that between the period 1 April and
31 August 2015, consular fees of €9,490 was collected as
shown below:

Date GCR Nos. Amount €


April 0967861-0967872 1,080.00
May 0967873-0967884 1,170.00
June 0967885-0967897 1,090.00
July 0967898-0967957 960.00
August 0967958-0968012 5,190.00
Total 9,490.00
Source: GCRs

851. The Honorary Consul General however, was yet to


pay the €9,490.00 collected to the Accounting Officer.

852. We urged management to recover the amount.

BRUSSELS MISSION
Payments without Supporting Documents – €21,054.74
853. Section 109 of the Foreign Service Accounting
Instructions (2003) states “vouchers should contain
particulars of claims or service and a summary of
supporting documents so that each voucher with its
supporting document constitutes a self-explanatory
whole’’.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
221 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
854. Contrary to the above requirement, we observed
that payments totalling €21,054.74 made on four payment
vouchers were without supporting documents to
authenticate the transactions. Below are the details:

PV. No. Date Purpose Payee Amount Remarks


(€)
BR0004171 22/12/1 Payment of Mr. Mark 2,834.74 To provide
4 freight Entsie freight
invoices
and
custom
documents
for
verification
BR0004611 2/06/15 Hotel H.E. Mr. 3,840.00 To provide
accommodation Morgan hotel bills
for HOM @ Brown
384.00 per night
for 10 nights
BR0004611 2/06/15 Hotel Mrs. Nana 3,380.00 To provide
accommodation Kraah Ansah hotel bills
for MC @ 338.00 Adjei
per night for 10
nights
Nov. 14- Payment of H.E. Mr. 11,000 To provide
Aug. entertainment Morgan supporting
2015 allowance Brown document
Total 21,054.74

855. We advised management to provide the


supporting documents or cause the beneficiaries to refund
the money.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


222 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
856. Management accepted to contact the officers for
the needed documents.

DUBAI MISSION
Payment on behalf of stranded Ghanaians – AED 1,075
857. Our examination disclosed that Management in
August 2015 paid an amount of AED 2,075.00 on behalf of
two stranded Ghanaians who were recruited from Ghana
to the Emirates to serve as house maids.

858. We further observed that one Mr. Kennedy


Agyapong the brother of the stranded Ghanaian allegedly
brought the ladies to be sold as maids. He was however,
later declared wanted by the Dubai Police for defrauding
the Maid Services Agency.

859. Management upon request for refund, received an


amount of AED1,000.00 on 1 April, 2016 from Mr.
Agyepong as part payment leaving AED1,075
outstanding.

860. We therefore, advised Management to contact Mr.


Agyapong for the settlement of the difference outstanding.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


223 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
HAVANA
Expenditure on trip to Panama not accounted for –
US$9,300.00
861. We noted that management released an amount of
US$9,300.00 among other expenditure items vide cheque
no. 5020464-3, and payment voucher no. 006 dated 5 Nov
2015 to three individuals on official visit to Panama for
presentation of credentials, but failed to account for the
under-listed expenditure granted them as at 30 November
2015.
Name Hotel Meals – Rental of Imprest Total –
Accommodation – US$ transport – US$ US$
US$
H. E. John (350x5)=1,750.00 (200X6)=1,200.00 (200X6)=1,200.00 1,500.00 5,650.00
Tia Akologu
Bilingual (180x5)=900.00 (100x6)= 600.00 0 0 1,500.00
Secretary
Frederick D. (250x5)=1,250.00 (150X6)=900.00 0 0 2,150.00
Boakye
Total 3,900.00 2,700.00 1,200.00 1,500.00 9,300.00

862. Management’s failure to insist on proper


accountability of the funds released just after returning
from the trip caused the irregularity.

863. We recommended that the officers concerned


should be made to produce the necessary receipts to
authenticate the expenditure, failing which they should be
made to refund the amount.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


224 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
ABUJA
Purchase of Air tickets for 6 delegates not reimbursed –
₦855,370.00
864. Foreign Service Regulations 186 states that “Where
an imprest is necessary, the Head of Chancery should
apply to the Controller & Accountant General through the
Ministry of Foreign Affairs for an imprest. The purpose
for which the imprest is required should be stated in the
application.”

865. We noted that Management purchased Air tickets


at the cost of ₦855,370.00 for six delegates who attended
the late President John Evans Atta Mills memorial lectures
on 21 July, 2015.

866. Instructions on the memo authorising the payment


stated that the amount of ₦855,370.00 would be
reimbursed by the Office of the President; which at the
time of the audit in October 2015 had not been done.

867. We therefore advised Management to make


necessary consultation with the Office of the President to
ensure that the Mission was reimbursed with the total
amount of ₦855,370.00.

868. Management said they had forwarded a letter to


the Chief of Staff requesting for refund to the Mission.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


225 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
JUDICIAL SERVICE
Deposits invested without authority - GH¢26,605,080.70
869. Order 18 of C.I. 47, High Court (civil procedures)
Rules 2004, states that, monies paid into the court are to be
held in accordance with orders of the court.

870. Contrary to Constitutional Instrument 47 (CI 47),


deposits held in court by Ecobank amounting to
GH¢26,605,080.70 was invested by management without
the orders of the courts.

871. Interest earned on these investment were credited


to the Service deposit interest account held at HFC Bank.

872. Investing deposits without court order could result


in loss of funds.

873. We recommended that, management should take


steps to rectify the anomaly.

Misapplication of 15% retention funds – GH¢168,326.02


874. Section 5(c) of the Retention of Funds Act 2007, Act
235 states that, Internally Generated Funds shall not be
used for the payment of salaries, staff benefits and other
allowances except where the allowances are directly
related to the provision of services that will lead to
increase revenue.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


226 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
875. The Judicial Service utilised an amount of
GH¢135,530.02 from the IGF account to pay staff
compensation and GH¢32,796.00 as salary advance to two
senior staff of the Service.

Description Cheque Date Amount Payee


No GH¢
Salary 100113 19/02/15 16,398.00 H/W Abass
advance Adams
Abubakari
Salary 100087 10/09/15 16,398.00 H/W
advance Stephen
Kumi
Total 32,796.00

876. Management explained that, such advances were


paid to employees when salaries were delayed.

877. While H/W Abass Abubakari Adams was yet to


refund GH¢16,398.00, H/W Stephen Kumi’s advance of
GH¢16,398.00 was used to set off his one year rent
allowance without any evidence.

878. We recommended that, management should


recover all outstanding advances or charge it to their
personal accounts.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


227 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
COMMERCIAL COURT
Understatement of revenue – GH¢21,033,516.07
879. Regulation 2(a) of FAR, 2004 (LI 1802) states that,
the head of government department shall manage and
operate the department’s accounting systems, so as to
ensure the accountability of all officers transacting such
business and facilitate the efficient discharge of such
business.

880. Two cashiers at the Commercial Court in Accra


inadvertently understated total collections in the revenue
and deposit cash books by GH¢20,893,095.83 and
GH¢140,420.24 respectively resulting in a total
understatement of GH¢21,033,516.07.

881. The situation occurred as a result of the Accounts


unit’s failure to carry out regular reconciliation exercise.

882. We recommended that there should be regular


preparation of bank reconciliation statement to avert the
recurrence of the above anomaly.

Failure to pay withholding taxes collected to the Ghana


Revenue Authority – GH¢9,409.91
883. Section 87(1) of the Internal Revenue Act, 2000 (Act
592) states that subject to Sub Section (2), a withholding
agent shall pay to the Commissioner a tax that has been
withheld or that should have been withheld under this

Annual Report of the Auditor-General on the Public Accounts of Ghana –


228 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
subdivision within fifteen days after the end of the month
in which the payment subject to withholding tax is made
by the withholding agent.

884. Between February and December 2015


management failed to remit taxes withheld amounting to
GH¢9,409.91.

885. We recommended that management takes


appropriate steps to pay these taxes withheld to the GRA
for our verification.

MUNICIPAL MAGISTRATE COURT, HOHOE


Misappropriation of Revenue - GH¢19,978.10
886. Regulation 15(1) of the Financial Administration
Regulations 2004 (LI 1802) states that “Any public officer
or revenue collectors who collects or receives public and
trust moneys shall issue official receipts for them and pay
them into the relevant Public Fund Bank account within
twenty four hours.

887. Madam Theresa Tetteh, HFC Bank cashier


received a total amount of GH¢45,208.20 as revenue and
deposit between November 2013 and January 2015. Out of
the total amount collected, she lodged GH¢33,065.60 and
misappropriated GH¢12,142.60 as shown below.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


229 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Type of Period Total Amount Difference
Collection Collection Banked GH¢
GH¢ GH¢
Revenue Nov. 33,950.20 25,168.60 8,781.60
2013 -
Jan. 2015
Deposit Nov. 11,258.00 7,897.00 3,361.00
2013 –
Jan. 2015
Total 45,208.20 33,065.60 12,142.60

888. Similarly, Madam Theresa Tetteh,


misappropriated revenue of GH¢7,835.50 collected
between November 2013 and January 2015 from
Municipal Circuit Court, Hohoe as shown below:

Type of Period Total Amount Difference


Collection Collection Banked GH¢
GH¢ GH¢
Revenue 2013 - Jan 32,705.50 25,177.00 7,528.50
.2015
Deposit 2013 - Jan 21,628.00 21,321.00 307.00
.2015
Total 54,333.50 46,498.00 7,835.50

889. Management’s failure to prepare bank


reconciliation statement resulted in the non-detection of
the embezzlement.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


230 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
890. We advised the Registrar to recover the amount
with interest from the HFC Bank and make
recommendation to the bank for action to be taken
against, the cashier, Madam Theresa Tetteh.

MUNICIPAL CIRCUIT COURT, HOHOE


Failure to transfer moneys into Judicial Service Accounts
by HFC & NIB Banks – GH¢25,104.40
891. An agreement between the Ministry of Finance,
Accra and HFC Bank states that all revenue and deposits
collected by the bank on behalf of the Judicial Service
should be banked in their local branches and transferred
to Judicial Service revenue and deposit accounts
respectively with Bank of Ghana, at Accra.

892. Our audit disclosed that HFC bank failed to


transfer a revenue and deposit of GH¢9,071.10 into
Judicial Service accounts after the expiration of the
contract on 31 May 2014.

Accounts Type of Accounts No. Balance as at


Name Collection 31 May 2014
GH¢
Revenue Revenue 5101110000083991 8,585.10
Account
Deposit Deposit 1050335803238 486.00
Accounts
Total 9,071.10

Annual Report of the Auditor-General on the Public Accounts of Ghana –


231 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
893. Similarly, a total revenue and deposits of
GH¢16,033.30 lodged into the Court's account at National
Investment Bank, Hohoe between February and August
2015 was not transferred into the Judicial Service Accounts
as at 31 August 2015.

Bank Type of Accounts No Amount


Accounts GH¢
N I B. Revenue 1104054083301 7,498.30
Hohoe Accounts
N I B. Deposit 1104054084001 8,535.00
Hohoe Accounts
Total 16,033.30

894. We attributed the anomaly to management’s


failure to ensure that all monies were transferred by the
HFC. and NIB to the Judicial Service account after the
expiration of the contract.

895. We therefore recommended that the Registrar


should ensure that the banks transferred the amount with
interest into Judicial Service account.

896. Furthermore, monthly reconciliation statements


should be prepared to correct all anomalies therein.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


232 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
DISTRICT MAGISTRATE COURT – TUMU
Unauthorised Payments – GH¢4,800.00
897. Regulation 2(f) of FAR, 2004 (LI 1802) states that
the “head of government department shall receive and
order the disbursement of any trust money for which the
head of department has been appointed as administering
authority by or under any enactment or agreement.”

898. In compliance with the provision noted above,


refunds made from deposit to plaintiffs were made on the
authorization of the Registrar. Our audit however,
disclosed that funds totalling GH¢4,800.00 were made to
judgement creditors without the authorisation of the
Registrar.

899. We therefore recommended to the Registrar to


regularise the payment to avoid abuse in the future.

JUDICIAL SERVICE - SEKONDI, TAKORADI


Transfer to undisclosed account – GH¢542,260.69
900. Regulation 16(c) of FAR, 2004 (LI 1802) states that
”A head of department shall monitor and ensure that all
Non-Tax Revenue lodged into the transit bank accounts
are promptly transferred into the main Consolidated Fund
bank account”.

901. Our review of the bank reconciliation statement


disclosed that, Zenith Bank Ghana Ltd collected a total

Annual Report of the Auditor-General on the Public Accounts of Ghana –


233 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
revenue of GH¢469,829.84 on behalf of the Commercial
Court between February 2015 and June 2016, and
transferred GH¢297,939.59 to undisclosed account leaving
a difference of GH¢171,890.25 outstanding.

902. Similarly the Home Finance Bank (HFC) between


May 2014 and January 2015 received a total revenue of
GH¢244,321.10 on behalf of the Court which was later
transferred to an unknown account.

903. Management could not disclose the authority and


destination of the transfer while the remaining amount
was yet to be transferred to the Consolidated Fund.

904. The practice could result in the diversion of


government revenue for other purposes.

905. We therefore recommended to management to


investigate the authority and destination of the transfer for
further action. Meanwhile the outstanding amount of
GH¢171,890.25 should be transferred into the
Consolidated Fund.

JUDICIAL SERVICE-SEKONDI
Withholding tax not remitted – GH¢946.20
906. Section 87(1) of the Internal Revenue Act, Act 592
states that “A withholding agent shall pay to the
Commissioner a tax that has been withheld within 15 days

Annual Report of the Auditor-General on the Public Accounts of Ghana –


234 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
after the end of the month in which the payment subject to
withholding tax is made by the withholding agent”.

907. Contrary to the above regulation, our audit


disclosed that out of 5% withholding tax of GH¢2,624.80
deducted from a total payment of GH¢52,496.00 made to
service providers only GH¢1,678.60 was remitted to the
Domestic Tax Revenue Division of the Ghana Revenue
Authority (GRA) leaving a balance of GH¢946.20.

908. We recommended to management to remit the


amount to the Commissioner-General of Ghana Revenue
Authority.

Payment of Unearned Salaries – GH¢4,292.29


909. Our examination of the Electronic Salary Pay
Vouchers (ESPV) for the court employees disclosed that
two registrars who went on retirement in December 2014
(Anthony B. Bowuah) and April 2015 (Mr. Simpon K.
Morkoley) had a total unearned salary of GH¢4,292,29
paid into their respective Bank accounts.

910. The lapse occurred due to management’s failure to


promptly notify their Bankers to transfer the unearned
salaries to chest.

911. We recommended to management to write to the


banks of the separated staff, to transfer the unearned
Annual Report of the Auditor-General on the Public Accounts of Ghana –
235 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
amount to government chest or have the amount
recovered from the beneficiaries.

CIRCUIT COURT - TAKORADI HARBOUR AREA


Revenue not accounted for – GH¢44,384.25
912. Part II Section 2(a) of the Revenue collection
Agreement with Government of Ghana, states that “the
bank shall on each business day during the regular
working hours of the assigned MDA, collect Government
Revenue in local and foreign currencies from the premises
of the assigned MDA and deposit same into the
designated Account.”

913. Our examination of Circuit Court revenue cash


books disclosed that, a total amount of GH¢159,872.65 was
deposited with the HFC Bank between January and
December 2014 but only GH¢134,539.20 was lodged in the
remittance account of the bank. The difference of
GH¢25,333.45 was not transferred into the designated
account at the Bank of Ghana.

914. Similarly, total revenue of GH¢544,931.71


deposited with the Zenith Bank between February 2015
and August 2016 had only GH¢522,880.91 transferred into
the remittance account at the bank, leaving a difference of
GH¢19,050.80 unaccounted for by the bank.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


236 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
915. The anomaly occurred because management failed
to monitor and ensure complete adherence to the
implementation of the revenue collection agreement,
which denied the State the needed revenue.

916. We recommended to management to ensure that


the total amount of GH¢44,384.25 was accounted for by
the banks (HFC & Zenith banks), and transferred to the
designated account at the Bank of Ghana without any
further delay and this office informed for verification.

917. Management again stated in response that,


headquarters was responsible to ensure that all transfers
were fully made.

DISTRICT COURT-DROBO
Unearned Salaries – GH¢3,022.50
918. Regulation 297(1) and 298(1&2) requires that, ‘A
head of department shall cause the immediate stoppage of
payment of salary to a public servant when that public
servant has retired or died.’

919. We however noted that Ms. Mariama Karim a


cleaner, resigned in June 2013 but her name continued to
appear on the Court’s payroll up to August 2014 resulting
in the payment of unearned salary of GH¢3,022.50.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


237 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
920. Management’s failure to ensure the immediate
stoppage of the salary resulted in the anomaly.

921. We recommended that the total amount should be


recovered, failing which the amount should be recovered
from the Registrar.

Revenue not accounted for – GH¢1,375.00


922. Regulation 15(1) of FAR, 2004 (LI 1802) states that
“any public officer or revenue collector who collects or
receives public and trust moneys shall issue official receipt
for them and pay same into the relevant Public Fund
Bank Account within twenty four hours of receipt except
in exceptional circumstances to be identified by the
minister''.

923. Contrary to the above, the former


Registrar/Cashier of the court, Mr. Gabriel K. Kyeremeh
collected a total amount of GH¢1,375.00 as deposits but
failed to account for it as shown below:

Receipt No & Date Payee Station Amount


(GH¢)
7926193 of 01/03/13 Kyeremeh Djan Drobo 600.00
7926194 of 01/03/13 Paster Ben Drobo 200.00
Aboagye
7926195 of 04/03/13 Bonna De-graft Drobo 35.00

Annual Report of the Auditor-General on the Public Accounts of Ghana –


238 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
7926196 of 04/03/13 Justice Ankomah Drobo 200.00
7926197 of 05/03/13 Obeng Thomas Drobo 40.00
7926198 of 05/03/13 Asomah Gabriel Drobo 100.00
7926199 of 07/03/13 Kwaku Apiah Drobo 50.00
Agyei
79261200 of 07/03/13 Kwabena Opoku Drobo 150.00
Total 1,375.00

924. Laxity on the part of management to effectively


supervise the work of the Cashier resulted in the
misappropriation.

925. We recommended to management to recover the


amount from Mr. Gabriel K. Kyeremeh with interest.

COMMERCIAL COURT - SUNYANI


Transfer of Revenue to an Unknown Account –
GH¢1,170.761.40
926. Regulation 15(1) of the Financial Administration
Regulations 2004, stipulates that, any public officer or
revenue collector who collects or receives public and trust
moneys shall issue official receipt for them and pay same
into the relevant public fund account within twenty – four
hours of receipt except in exceptional circumstances to be
identified by the minister.

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239 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
927. Contrary to the above, we noted that between
October 2015 and September 2016, the Commercial court
Registrar transferred a total amount of GH¢893,281.90
from the revenue account to an unknown account without
official receipt to acknowledge the amount.

928. Similarly the Sunyani Magistrate Court B Registrar


made a standing order of GH¢277,479.50 from the Court’s
revenue account to an unknown account without official
receipt or advice acknowledging receipt of the funds into
the said account. Additionally we could not determine the
ownership of that account since there were no names or
indication on the ownership of the account.

929. The practice could lead to diversion and


misappropriation of funds.

930. We recommended that Management should


investigate to ascertain ownership of the accounts and
obtain official receipts in acknowledgment of the funds,
failing which the amount should be recovered from the
officials responsible for the transfers and also be
sanctioned.

MAGISTRATE COURT ‘B’, SUNYANI


Revenue not Accounted for GH¢17,449.30
931. Regulation 15(1) of the Financial Administration
Regulations 2004 (LI 1802), provides that any public
Annual Report of the Auditor-General on the Public Accounts of Ghana –
240 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
officer or revenue collector who receives public and trust
moneys shall issue official receipts for them and pay same
in to the relevant public fund account within twenty four
hours of receipt except in exceptional circumstances to be
identified by the Minister.

932. We noted on the contrary that between January


and December 2015, the court Registrar collected a total
revenue of GH¢164,922.37 and paid GH¢149,712.07 to
bank, leaving GH¢15,210.30 unaccounted for.

933. Similarly between October 2015 and September


2016, the commercial court Registrar issued General
Counterfoil Receipts totalling GH¢907,432.90 to support
payments in respect of fees lodged by clients. However,
only GH¢905,193.90 was lodged at the bank leaving a
difference of GH¢2,239.00 not accounted for.

934. We recommended that the Registrars should


account for the total shortage of GH¢17,449.30 and
appropriate sanctions taken against him.

Unauthorised transfers from Deposit Account to


Unknown Claimants – GH¢19,485.50
935. Judicial Service directives on procedures for
payment of deposit claims as contained in a circular with
reference number JS/NTR/TI/018 dated 2/3/15 require
that an application for refund of deposit shall be directed
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241 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
to the Registrar of the relevant court and the application
shall consist of a written application from the claimant or
his/her counsel and a court order. The registrar shall
forward the application to the court cashier and the
cashier shall attach duplicate General Counterfoil Receipt
(GCR) issued in respect of the deposit, duplicate pay in
slip, court payment vouchers (CPV) and return the
completed application to the Registrar for onward transfer
to the Regional Administrator for payment.

936. On the contrary, our audit disclosed that a total


amount of GH¢19,485.50 was transferred out of the
deposit account to pay unknown claimants without a
court order.

937. The Registrar explained that he had written to the


Regional Administrative officer on 8 August 2015 about
the illegal transfers but had not received any response.

938. Lack of effective controls and coordination


between the court and the Regional Administrative
Officer over the deposit account resulted in the anomaly
which is a recipe for diversion of public funds.

939. We recommended that the Registrar should liaise


with the Regional Administrative Officer and the National
Investment Bank, Sunyani for the recovery of the amount
of GH¢19,485.50 into the deposit account.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
242 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF DEFENCE

Non-deduction of withholding tax on sitting allowance –


GH¢21,881.00
940. Our review of Euroget-De Invest and the
GAF/UN Peace Keeping Committee Accounts disclosed
that, the Ministry paid sitting allowances totalling
GH¢21,881.00 to members of the Project Implementation
Unit (PIU) and GAF/UN Peace keeping Committee and
their supporting staff but failed to subject the payment to
10% withholding tax.

941. The inaction of management contravenes Section


84(1b) of Internal Revenue Act, 2000 (Act 592) which
requires that “where a resident person, other than an
individual, pays fees, emoluments, and any other benefit,
including a benefit referred to in section 53, to a resident
director, manager, or board member of a company or
body of persons, the person making the payment shall
withhold tax on the gross amount of the payment at the
rate prescribed in Part IV of the First Schedule.

942. The effect is that such practice deprives the


consolidated fund the needed inflows of revenue for
development programmes.

943. We advised management to comply with the tax


laws and ensure that sitting allowances are subjected to

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243 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
tax in line with Section 84(1b) of the Internal Revenue Act,
2000 (Act 592).

944. Management admitted the anomaly and promised


to take immediate steps to resolve the lapse.

AIR FORCE
Unrecovered advances – US$675,651.50
945. Regulation 110 of the Financial Administration
Regulations, 2004 (LI 1802) states that “A head of
department, or the officer to whom the duties of the head
of department have 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”.

946. Regulation 111 of FAR, 2004 also places


responsibility for recovery of advances on the head of
department.

947. In contrast to the above Regulation, we noted that


between January 2014 and August 2016, the Air Force
Headquarters advanced funds for official foreign travels
and courses of Air Force personnel on behalf of the
General Headquarters GHQ (Training). The total amount
involved was US$675,651.50. However, as at the time of
audit no refund had been made.

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244 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
948. We further observed that the advance was
occasioned by late and irregular release of funds by GHQ
(Training). We therefore advised Management to ensure
full accountability of the amount.

MINISTRY OF TRADE AND INDUSTRY

Judgement Debt – GH¢1,944,062.15


949. Ministry of Trade and Industry (MOTI) incurred
judgement debt of GH¢2,114,062.15. This was as a result
of management’s failure to fulfill contractual obligation
with Enege Kakum (supplier) and Mrs. Esther Ofori,
former chief executive officer of the Ghana Trade Fair
Authority (GTFA).

950. The Ministry intervened by paying GH¢170,000.00


out of the total amount to prevent the sale of the
administration block of the Ghana Trade Fair Authority
(GTFA). A total balance of GH¢1,944,062.15 remained
outstanding as at the time of writing this report.

951. The details of the judgement debts are as shown


below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


245 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Name Plaintiff Suit Offence Judgement Debt Amount Outstandin
GH¢ paid g Debt
GH¢ GH¢
Mrs. Former Suit Ghana On 24/03/2014, 120,000.00 1,081,901.60
Esther Chief against Trade the court
Ofori Executive the Fair awarded a
Officer of Ministry Authorit principal sum of
(GTFA) of Trade y GH¢1,201,901.60
and (GTFA)
Industry was
. unable
to pay
her end
of
service
benefits
and trip
allowanc
es.
Enege Supplier Suit Failure GH¢912,160.55 50,000.00 862,160.55
Kakum against to pay (€212,130.36)
Ghana for
Trade aluminu
Fair m shell
Authorit scheme
y Ltd
(GTFA)
Total 2,114,062.15 170,000.00 1,944,062.15

952. We recommended that the Ministry of Trade


should take steps to honour the debt obligation.

GRATIS FOUNDATION
Imprest not fully accounted for – GH¢1,067.02
953. Regulation 288(1) of Financial Administration
Regulations (FAR) 2004, states “Imprest shall be retired at
the close of the financial year and any imprest not so
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246 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
retired shall be adjusted to a personal advance account in
the name of the imprest holder”.

954. Contrary to the above regulation, our review of


payment vouchers of the Gratis Foundation at Tamale
revealed that the Accountant failed to fully account for an
amount of GH¢1,067.02 granted as imprest.

955. We recommended that the Accountant retired the


imprest as stipulated by the Regulation or the amount be
treated as an advance in his name.

Overdue Salary Advance – GH¢4,350.00


956. Regulation 110 of the Financial Administration
Regulations, 2004 (LI 1802) states: “It is the duty of the
head of department or the officers to whom the
administration of advances have been delegated to ensure
that advances issued are duly recovered in accordance
with the appropriate agreement.”

957. Our audit disclosed that salary advance


amounting to GH¢4,350.00 granted to four staff of Gratis
Foundation, Tamale as far back as January 2013 had still
not been recovered as detailed below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


247 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Name of staff Date loan Amount Date of Amount Outstanding
was taken taken repayment paid Balance
GH¢ GH¢ GH¢
Kaleem 27/7/13 1,800.00 27/12/2013 600.00 1,200.00
Haruna
Adjei 12/11/2013 800.00 200.00 600.00
Amponsah
Adjei 2015 2,100.00 400.00 1,700.00
Amponsah
Maxwell 15-Jan 1,000.00 Sept.& 200.00 800.00
Bosompem Aug. 2015
Seidu Abdul- 22/05/15 300.00 250.00 50.00
Razak
6,000.00 1,650.00 4,350.00

958. Management’s failure to effectively supervise and


enforce recovery caused the lapse.

959. Failure on the part of management in recovering


the outstanding advance indicated weak cash
management system on the agency’s finances. The
outstanding amount if not recovered, could deny other
staff the opportunity to benefit from the scheme.

960. We recommended to management to effect


deduction from the salaries of the defaulters to settle the
debts.

Unaccounted fuel purchases – GH¢2,740.00


961. Regulation 1604 of the Stores Regulations, 1984
states that “A vehicle log book shall be maintained for

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248 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
each vehicle and shall always be carried in the vehicle”.
Journeys undertaken shall be recorded and full particulars
of receipts of fuel, oil, and lubricants shall be entered up
daily in the book by the driver. Recording in the log book
shall be made in duplicate. All journeys recorded in the
log book shall be certified by the officer using the vehicle.”

962. Our review of transport management at GRATIS


Foundation at Tamale revealed that, fuel purchased to the
tune of GH¢2,790.00 during the period under review was
not accounted for in the vehicles log books.

963. Failure on the part of management to ensure


proper accountability resulted in this lapse.

964. We could therefore not confirm whether the fuel


purchased was used in the interest of the Foundation.

965. We requested management to comply with the


regulation and also request the Spending Officer to refund
the amount.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


249 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF LOCAL GOVERNMENT AND
RURAL DEVELOPMENT
Non – Payment for Supplies of Street Lighting Lamps –
GH¢23,450,000.00
966. A contract signed on 24 July 2015 between the
Ministry of Local Government and Vision and Sports
Enterprise requested the latter to supply 46,600 units of
die cast street lighting lamps at a cost of GH¢32,620,000.00
to be distributed to 216 Metropolitan, Municipal and
District Assemblies.

967. We however noted that, no payment was made to


the supplier after delivering 33,500 units of the street
lamps valued at GH¢23,450,000.00 on 18 July 2016.

968. We recommended that payment for the supplies


should be made to prevent the possibility of judgment
debt.

969. Management confirmed submitting the documents


to the Administrator of the District Assembly Common
Fund for payment.

DEPARTMENT OF PARKS AND GARDENS, HO


Unearned Salaries – GH¢76,275.02
970. Regulation 297 of the Financial Administration
Regulations, 2004, (LI 1802) states that “A head of
department shall cause the immediate stoppage of

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250 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
payment of salary to a public servant who has either
resigned or separated from the department.

971. Our review of the mechanized payment vouchers


disclosed that nine members of staff who separated from
the department between January 2013 to October 2014
were paid unearned salaries of GH¢76,275.02. Below are
the details.
Name Staff Rank Date of Period Amount
No. Separation unearned
GH¢
Florence 71767 Asst. Chief 04/04/2013 May 2013- 14,206.97
Krah Tech. Asst. Oct. 2014
Paulina 71770 Asst. Chief 04/07/2013 Apr. 2013- 11,528.94
Owu Tech. Asst. Oct. 2014
Prosper 70663 Asst. Chief 10/07/2013 Aug. 2013- 11,198.59
Amehame Tech. Asst. Oct. 2014
Oberko 718155 Sup. Head 01/01/2013 Feb. 2013- 8,967.39
Joseph Gardener Oct. 2014
Isaac 718140 Technical 17/07/2013 Aug. 2013- 7,917.74
Ankuge Assistant Oct. 2014
Fuji 41123 Asst. Chief 31/12/2013 Jan. 2014- 7,760.54
Comfort Tech. Asst. Oct.2014
Deletsu 740333 Gardener 07/01/2013 Feb 2013- 7,466.83
Esenam Oct. 2014
Vivor 41113 Asst. Chief 08/12/2013 Jan-June 5,509.89
Christine Tech. Asst. 2013, April
2014
Michael 718160 Technical 1,718.13
K.Mensah Assistant
Totals 76,275.02

972. The Regional Landscape Designer’s failure to


forward the necessary input forms to the Controller and

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251 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Accountant General’s Department for their names to be
deleted resulted in a loss of GH¢76,275.02 to the State.

973. We urged the Regional Landscape Designer to


recover the unearned salaries together with any other
payments from the affected officers.

BIRTHS AND DEATHS REGISTRY, WA


Diversion of Government funds into Private Accounts
GH¢224,760.00
974. Our review of the Registry’s records revealed that
the Registrar failed to lodge a total revenue of
GH¢224,760.00 into the approved bank account. Plan
Ghana, an NGO on 25 January 2015 released the amount
for registration of 10,000 child births in deprived districts
in the Upper West Region.

975. The Registrar, Mr. Francis Kupo, failed to issue


official receipt for the fees and rather lodged the amount
into a private welfare account number 20014010988-01 at
the National Investment Bank, Wa.

976. We recommended that the amount should be


refunded by Mr. Francis Kupo and should be sanctioned.

Bulk Fuel Purchased not Accounted for GH¢4,021.49


977. Regulation 0618 and 0619 of the Stores Regulations
1984 states that ‘it may become necessary for departments

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252 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
to hold working stocks in the form of small stores in
tactical locations to meet day to day requirements’.

978. The Registry purchased fuel worth GH¢4,021.49


from the Controller and Accountant-General’s fuel station
without maintaining a register to control the stock as
provided in the regulation.

979. We recommended that a register must be


maintained to control fuel purchases to enhance
accountability.

Unearned Salaries – GH¢120,226.15


980. Regulation 297 of the Financial Administration
Regulations 2004, (LI 1802) enjoins heads of departments
to cause the immediate stoppage of salary to a Public
Servant when the public servant is absent from duty
without leave or reasonable cause for a period as
stipulated in the administrative regulations of the
establishment.

981. Our payroll audit of the Registry revealed that six


officers who went on compulsory retirement and a
deceased officer were paid unearned salaries totalling
GH¢120,226.15 into their respective bank accounts as
detailed below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


253 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
No. Staff Staff ID Bank Unearned No. of Retirement
Name No. Salary Months Date
GH¢
1. Jamani 0000023181 SSB- 37,266.04 32 Dec 2010
Kugbea Wa
2. Salifu 0000023152 ADB- 10,762.83 4 Aug 2014
Abudl- Wa
Rahaman
3. Bawah 0000040769 SSB- 23,891.48 19 May 2013
Stevens Wa
4. Moses 0000078426 GCB- 9,242.16 20 Dec 2010
Ali Wa
5. Bagah 0000101754 ADB- 10,547.19 11 Aug 2013
Edward Wa
6. Panta 00000010006 SSB- 15,561.90 17 Nov 2012
Adams Wa
7. Abongo 0000070877 SSB- 12,954.55 27 Dec 2010
Kwaku Wa
Total 120,226.15

982. This resulted in loss of funds to the State.

983. Management failed to draw the attention of the


Controller and Accountant-General’s Department to
delete the names of the officers from the payroll and also
to inform the banks to transfer the unearned salaries to
suspense account hence the anomaly.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


254 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
984. We recommended that the Registrar should
recover the amount of GH¢120,226.15 from the officers
concerned.

BIRTHS AND DEATHS REGISTRY, SEKONDI


Unconfirmed bank transfers by HFC Bank, into
Consolidated Fund Bank Account – GH¢175,860.00
985. Our review of revenue records and bank
statements disclosed that a total revenue of GH¢175,860.00
collected by the Registry between 16 March, 2016 and 1
September, 2016 was paid to HFC Bank Limited, Takoradi
(a transit bank). However, management could not provide
evidence to support the transfer of the said amount into
the Consolidated Fund Bank Account.

986. The situation could result in the payment of


government revenues into unauthorised accounts leading
to loss of funds to the State.

987. We urged management to provide the requisite


records to support the transfer of the amount of
GH¢175,860.00 into the Consolidated Fund to authenticate
the transaction else the amount should be refunded.

Unearned interest on delayed transfer – GH¢459.00


988. Paragraph 2.2 of the Government of Ghana
revenue collection agreement between the Ministry of
Finance and HFC Bank (Ghana) Limited on the

Annual Report of the Auditor-General on the Public Accounts of Ghana –


255 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
onsite/daily revenue collection programme requires that
all daily collections shall be transferred into the
designated account within 48 hours and any portion
thereof retained by the bank after this period, the bank
shall be liable to pay interest to Ministry of Finance at the
current 91-day treasury bill rate.

989. Our review of revenue records disclosed that the


Registrar deposited a total revenue of GH¢58,800.00 with
the HFC Bank limited between 16 March and 29 April
2016.

990. Contrary to the above agreement, HFC bank


delayed transfer of the amount to the designated account
for 12 and 13 days till 13 May 2016 without paying the
requisite accrued interest of GH¢459.00 as shown below.

Date Deposit Transfer Days T-Bill Interest


(GH¢) (GH¢) deferred rate payable
(91 day) GH¢

16/3/16 14,480.00 - 13 22.8710% 117.00


31/3/16 17,400.00 - 13 22.8710% 141.00
15/4/16 15,420.00 - 12 22.8710% 115.00
29/4/16 11,500.00 - 12 22.8710% 86.00
13/5/16 - 58,800.00 -
Total 58,800.00 58,800.00 459.00
Source of rates: Bank of Ghana official website. 14 September, 2016

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256 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
991. The bank deprived government of the needed
fund for development.

992. We urged management to ensure that HFC Bank


paid the total interest element of GH¢459.00 as penalty for
the delayed transfer.

Fuel purchases not accounted for – GH¢16,964.00.


993. Regulation 1604 of the Stores Regulations 1984
states that ‘A vehicle logbook shall be maintained for each
vehicle and shall always be carried on the vehicle.
Journeys undertaken shall be recorded and full particulars
of receipts of fuel, oil, and lubricants shall be entered up
daily in the logbook by the driver. Recordings in the
logbook shall be made in duplicate. All journeys recorded
in the logbook shall be certified by the officer using the
vehicle’.

994. Contrary to the above provision, we observed that,


fuel valued at GH¢11,484.00 procured by the Tamale
Regional Birth and Death Registry and GH¢5,480.00 by
National Youth Council, Tamale, were not accounted for
in the vehicle logbooks.

995. We could not ascertain whether the fuel was


actually purchased and used in the interest of the Service.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


257 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
996. We recommended that the alleged fuel purchased
should be accounted for.

BIRTH AND DEATH REGISTRY, TAMALE


Payments not supported with Vouchers – GH¢8,940.00
997. Public Financial Management Act, 2016 section
7(1) states that a principal spending officer of a covered
entity shall ensure the regularity and proper use of money
appropriated in that covered entity.

998. Contrary to the above, we observed that


management of Birth and Death Registry at Tamale
disbursed an amount of GH¢8,940.00 without payment
vouchers to support the transactions.

999. This lapse was attributed to management’s


disregard to the relevant Regulation regarding public
spending.

1000. We recommended that management should


refund the money.

BIRTHS AND DEATHS REGISTRY – AKIM ODA


Failure to issue General Counterfoil Receipts to
acknowledge revenue collections – GH¢12,766.00
1001. Regulation 15(1) of the Financial Administration
Regulations, 2004 (LI 1802) stipulates that ‘Any public
Officer or revenue collector who collects or receives public

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258 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
and trust moneys shall issue official receipts for them and
pay same into the relevant Public Fund Bank Account
within twenty four hours of receipt.’’

1002. Contrary to the above, a revenue collector at the


Department collected revenue of GH¢12,766.00 for the
issuance of Births and Deaths Certificates without issuing
official receipts to the applicants.

1003. The total cash collections was allegedly sent to the


Registrar at the Regional Office, Koforidua for the
issuance of Treasury Counterfoil Receipts. However, no
Treasury Counterfoil Receipts were produced to
acknowledge the alleged payments to the Regional
Registrar.

1004. We recommended a refund of the amount from the


revenue collector and the regional registrar.

BIRTHS AND DEATHS REGISTRY – SUHUM


Charging of unapproved rates/fees – GH¢17,250.00
1005. Regulations 25 and 27 of the FAR, 2004 require all
heads of Government institutions that generate revenue to
charge prescribed fees for services performed.

1006. We noted that the Registrar at the Births and


Deaths Registry charged an amount of GH¢50.00 for a
Birth Certificate from 575 clients instead of the approved
Annual Report of the Auditor-General on the Public Accounts of Ghana –
259 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
fee of GH¢20.00. The revenue collector however paid in
GH¢11,500.00 to cover the total service rendered to the 575
clients. The difference of GH¢17,250.00 was not accounted
for.

1007. Lack of public knowledge on the requirements for


acquiring a Birth Certificate and fees payable accounted
for the practice.

1008. We advised the Registrar to boldly display the


prescribed fees payable by applicants at the entrance of
the office premises to enhance public education. The
registrar should also refund the unapproved collections of
GH¢17,250.00 to Government chest.

MINISTRY OF JUSTICE AND ATTORNEY


GENERAL’S DEPARTMENT

Failure to account for funds by EOCO – GH¢250,000.00


1009. Our review of the payment vouchers, disclosed
that an amount of GH¢250,000.00 was released to EOCO
by Ministry of Justice on payment voucher No 40854
dated 31/12/15 without any documents stating the
purpose for which the amount was released, neither did
EOCO account for the amount of GH¢250,000.00 received
from the Ministry of Justice.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


260 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1010. We recommended that the amount of
GH¢250,000.00 should be accounted for by EOCO.

Use of GOG funds as IOU – GH¢10,100.00


1011. Funds budgeted and released for activities and
programmes of the Ministry of Justice, was given out as
IOUs to eight staff members as detailed below:
No Date PV No Amount Payee
GH¢
1. 15/09/15 0676560 500,00 Angelina
O. Oppong
2. 20/08/15 067660 300.00 Nicolas
Ashi
3. 17/09/15 0676703 2,500.00 Emmanuel
Yeboah
4. 17/09/15 0676712 200.00 Christian
Botchway
5. 05/10/15 067660 600.00 Suleiman
Abdulai
6. 02/11/15 0676826 3,000.00 Mrs.
Aboagye
7. 18/11/15 0676862 2,000.00 Charles
Mensah
8. 10/12/15 0666929 1,000.00 Emmanuel
Kodua
Total 10,100.00

1012. Management did not provide any evidence of


recovery from the staff.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


261 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1013. We recommended that management should desist
from granting IOUs which had not been budgeted for and
ensure recovery of the amount from the beneficiaries.

GoG funds kept in dormant bank accounts –


GH¢137,064.24
1014. Our review of cash management procedures
disclosed that, the Ministry had four bank accounts which
had been dormant between one and four years, as detailed
below:

No. Account Account Balance Last


Name Number GH¢ withdrawal
1. HIPC account 1018631534098 116,648.49 Since 2013
2. Private Sector 1018631534031 0.00 Since Jan
Dev’t 2015
Strategy
Pooted Fund
3. Ministry of 1018631534074 18,857.98 Since 2012
Justice
Common
wealth Law
Minister
Account
4. Ministry of 1015631534099 15,257.77 Since August
Justice 2014
Royalty Cedi
Account
Total 137,064.24

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262 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1015. Management failure to comply with CAGD
directives to maintain a single treasury account accounted
for the lapse.

1016. We urged management to consider the closure of


these dormant accounts and transfer the balances to
government chest.

Failure to seek cabinet approval before paying


judgement debt of GH¢67,380,718.20
1017. The Ministry of Finance Budget Implementation
Instructions 3.8 state that, Judgement Debt Payment pose
a significant risk to effective budget implementation.

1018. As part of measures to implement the new


guidelines issued by government to ensure sanity in the
payment of Judgement Debt and settled claims, all
Judgement Debt claims exceeding GH¢10,000,000.00
should be submitted to cabinet for approval prior to final
settlement and payment.

1019. The Attorney-General may however, authorise


settlement of claims up to the upper limit of
GH¢10,000,000 and that MDAs which incur Judgement
Debt by their action or inaction will bear the full cost of
servicing these debts from their approved budget.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


263 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1020. Our review of the bank statement of the Ministry
disclosed that, a payment of GH¢67,380,718.20 (direct
debit) was made to Construction Pioneers as judgement
debt on behalf of the state without any reference to cabinet
as detailed below:
Date Payee Amount
20/02/15 Construction Pioneers 42,820,418.48
01/04/15 Construction Pioneers 24,560,299.72
Total 67,380,718.20

1021. The Ministry could not provide any


documentation with regards to the Court Judgement.

1022. Management’s failure to investigate the cause of


the direct debit for appropriate action resulted in the
anomaly.

1023. We recommended that all payment above the


threshold be referred to cabinet for approval.
Management should also obtain the court judgement and
all relevant documents to authenticate the payment.

REGISTRAR GENERAL’S DEPARTMENT


Failure to disclose revenue collected – GH¢13,605.20 and
US$232.80
1024. Our review of records at the Estate Unit of the
Registrar-General Department disclosed that, deductions
effected from the estates of claimants, as service charges
Annual Report of the Auditor-General on the Public Accounts of Ghana –
264 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
totalling GH¢17,006.54 and US$291.10 were not
transferred into the main revenue accounts of the
department, but was retained in the Estate accounts.

1025. The State was denied the use of GH¢13,605.20 and


US$ 232.80 representing 80% share of the total amount
collected.

1026. We recommended that the revenue be transferred


into the main accounts of the department for the
government share to be credited and the financial
statement adjusted to reflect same.

Financial Assistance to Ministry of Justice and Attorney


General’s Department – GH¢1,163,125.00
1027. A total amount of GH¢1,163,125.00 was released
by the Registrar-General Department from its retention
fund as financial assistance to the Ministry to meet urgent
expenditures on conferences and seminars.

1028. Officials of the Registrar-General Department


could not explain the legal basis upon which the releases
were made to the Ministry.

1029. The Ministry failed to account for the funds


received from the Registrar-General Department.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


265 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1030. We recommended that the Ministry should
account fully for all funds received.

Fragmentation of procurement – GH¢478,143.21


1031. Section 21(5) of the Public Procurement Act, 2003,
(Act 663) 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 in the public procurement Act.
1032. Our review of procurement procedures disclosed
that, the department made fragmented procurement of
stationery, amounting to GH¢478,143.21. This could lead
to uncompetitive prices and loss of discount on bulk
purchases.

1033. We recommended that management should


strictly adhere to the provisions in the Procurement Act.

MINISTRY OF WATER RESOURCES, WORKS AND


HOUSING
Default in rent payment – (UNDP Flats) – US$448,112
1034. Regulation 17 of the Financial Administration
Regulations, 2004 (LI 1802) states that, “A head of
department shall ensure that all non-tax revenue is
efficiently collected.”

1035. Our audit revealed that 39 occupants of UNDP


flats in Cantonment, Accra comprising companies and

Annual Report of the Auditor-General on the Public Accounts of Ghana –


266 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Civil Servants were in rent arrears totalling US$448,112.00
as at 31 December 2015.

1036. We noted (a) ineffective rent collection machinery;


(b) hesitancy of management to eject the defaulting
tenants; and (c) poor supervision by the Estate Unit which
had responsibility for the allocation of Government
bungalows including the UNDP flats as the causes of the
default.

1037. We recommended that the Chief Director should


recover all rents due and take appropriate action to eject
all defaulting tenants.

Outstanding Loans to Staff - GH¢42,940.00


1038. Regulation 17 of the FAR 2004, (LI 1802) requires
among others, that all non-tax revenue (IGF) be paid into
the Consolidated Fund Account except in the case
retained under an enactment.

1039. Our audit revealed that an amount of


GH¢42,940.00 was paid from the IGF to staff as loans
between the period Jan to Dec, 2015.

1040. We recommended that management should


recover the total amount of GH¢42,940.00 from the
affected officers and pay same into the Consolidated
Fund.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
267 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Unauthorised disbursement of IGF - GH¢701,895.00 and
US$11,850.00
1041. Regulation 17 of the FAR 2004 LI 1802 requires
among others, all non-tax revenue be paid into the
Consolidated Fund Account except in the case of IGF
retained under an enactment.

1042. The Ministry collected a total IGF of


GH¢1,623,895.00 between January and December 2015 as
renewals and classification fees but failed to pay same into
the Consolidated Fund.

1043. Meanwhile, GH¢922,000.00 representing 57% of


the collection was lodged into the Consolidated Fund
whilst GH¢701,895.00 representing 43% was utilized by
the Ministry under Administrative, Service and Capital
Expenditures without authorisation from the Ministry of
Finance.

1044. Similarly, the Ministry utilized US$11,850.00 from


the UNDP Flat rent collection without authority.

1045. Management explained that lack of budgetary


releases from the Ministry of Finance accounted for the
resort to use IGF in order to keep the Ministry running.

1046. We urged management to stop spending from the


IGF and seek authorisation from the Ministry of Finance
Annual Report of the Auditor-General on the Public Accounts of Ghana –
268 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
before incurring expenditure from the account.
Furthermore, management should reimburse the IGF
account after receiving their budgetary allocation.

WATER AND SANITATION DEVELOPMENT BOARD


– KETE-KRACHI
Consumers’ indebtedness GH¢161,745.00
1047. Regulation 2(d) of the FAR, 2004 (LI 1802)
provides that “The head of government department shall
secure due and proper collection of government revenue
collected by the department within the terms of any
enactment or of instructions issued or approved by the
Controller and Accountant-General”.

1048. On the contrary, our review disclosed that an


amount of GH¢161,745.00 was owed by consumers to the
service provider as at 31 May, 2016.

1049. Consumers’ failure to pay their bills and laxity on


the part of management led to the build-up of the debts.

1050. The Ghana Prisons Service, Krachi alone owed


over 42% of the total debt.

1051. We recommended to management to recover all


arrears including that of the Prisons Service.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


269 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PUBLIC WORKS DEPARTMENT-TAKORADI
Underpayment into the Consolidated Fund Account –
GH¢51,763.90
1052. Section 3 of the Retention of Fund Act, 2007, Act
735 states that MDAs specified in the first column of the
Third Schedule may raise or receive moneys in respect of
the performance of its functions, and retain out of moneys
raised or received, the percentage stipulated in the second
column of the Schedule.

1053. We noted that the Department collected a total


revenue of GH¢379,662.98 as internally generated fund
from rental and consulting services between 2014 and
2016.

1054. Per the retention of Funds Act, 2007 (Act 735), the
department was required to pay into the consolidated
fund account, 50% of revenue generated amounting to
GH¢189,831.49 and keep the remaining amount for its
operational activities.

1055. The department in the three financial years,


transferred only GH¢39,502.00 into the Consolidated Fund
and utilized the difference of GH¢150,392.49 on recurrent
expenditure without the approval of the Ministry of
Finance.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


270 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1056. The action of management contravenes the
directives of Act 735 of 2007 and denied the Government
the expected revenue for developmental programmes.

1057. We recommended that Mr. Francis Adu-Gyamfi


the Regional Engineer of the department should be held
liable for the unauthorised expenditure of GH¢150,392.42
meant for the Consolidated Fund Account.

MINISTRY OF ROADS AND HIGHWAYS

DRIVER AND VEHICLE LICENSING AUTHORITY


Failure to obtain VAT invoices in respect of payments –
GH¢1,679,068.87
1058. Section 19 of the Value-Added Tax Act, 1998, Act
546 states that ‘a taxable person shall on making taxable
supply of goods and services, issue to the customer or
person supplied, tax invoices in such forms as shall be
prescribed by regulations.’

1059. Our review of the Authority’s financial records


disclosed that between January and December 2015,
management paid GH¢11,288,522.86 for 34 transactions
(inclusive of a VAT component of GH¢1,679,068.87) but
failed to obtain VAT receipts to cover the payments.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


271 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1060. Management did not comply with the tax laws to
compel issuance of the VAT invoices before making
payments to the recipients.

1061. We advised the Director of Finance to ensure that


VAT invoices totalling GH¢1,679,068.87 are obtained from
the 24 business entities involved.

Failure to withhold taxes on purchases and allowances –


GH¢468,562.02
1062. Section 84(1) of the Internal Revenue Service, Act
2000 (Act 592) requires a person or an employer making
payment of fees, commission or emoluments etc. to a
resident person to withhold tax on the gross amount of the
payment at a rate of 10% as prescribed in part IV (a) of the
first schedule of the Act.

1063. We noted that between January and December


2015 a total payment of GH¢10,964,175.53 was incurred.
While GH¢10,929,175.53 was spent under goods and
services, GH¢35,000.00 was paid as allowances.

1064. Meanwhile, the withholding tax component of


GH¢465,062.02 and GH¢3,500.00 respectively were not
deducted.

1065. Non-deduction of withholding taxes deprives


Government of revenue.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
272 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1066. We advised management to comply with the tax
laws.

DEPARTMENT OF URBAN ROADS –


HEADQUARTERS, ACCRA
Abandoned projects - GH¢12,476,152.90
1067. Clause 58.2 (a) of the condition of contract states
that fundamental breaches of contract shall include (a) The
contactor stops work for 28days when no stoppage of
work is shown on the program and the and the stoppage
has not been authorised by the Project Manager.

1068. Our visits to some selected project sites revealed


that 6 projects valued at GH¢12,476,152.90 had been
abandoned and the contractors had failed to resume work
despite several warnings issued to them by the
consultants supervising the projects.

1069. This had not only denied the communities and


other users of good access roads; but is also likely to call
for upward review of the cost of the project taking into
account inflationary trends.

1070. We recommended to Management to terminate the


six contracts and re-award them. Management promised
to act on it.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


273 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
HYDROLOGICAL SERVICES DEPARTMENT
Abandoned projects – GH¢440,242.96
1071. We noted that the Construction of Reinforced
Concrete Rectangular Drain at Goaso in the Brong Ahafo
Region was awarded to Messrs Buoku at a sum of
GH¢1,230,715.20 on 21/11/2011. The contractor was
expected to commence work on 6/12/2011 and end on
6/05/2012.

1072. Our scrutiny revealed that the contractor received


mobilization of GH¢492,286.08 and also GH¢81,378.85 for
part of actual work done. This brought the total payment
to GH¢573,664.93 covering 35% of the work.

1073. Records showed that the contractor worked up to


only 20% of the project costing GH¢259,851.52 and
abandoned the project. After the contract period had
expired and the contractor had ignored several warning
letters and in-between reminders, management
terminated the contract.

1074. Further scrutiny of the agreement between


Hydrological Services Dept. and Messrs Buoku Ventures
Ltd. disclosed that a penalty sum shall be paid to
Government by the contractor, Messrs Buoku Ventures in
the event of any breach of agreement on the part of the
contractor.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


274 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1075. Management imposed a penalty sum of
GH¢126,429.55 representing 15% of the total cost of the
project on the contractor for breaching the agreement and
caused a refund of GH¢313,813.41 paid for no work done
to bring the total recoverable amount to GH¢440,242.96.

1076. Management by way of recovering the amount


wrote two letters to Messrs Star Assurance Co. Ltd, Surety
for Messrs Buoku Ventures for refund of the amount of
GH¢440,242.96.

1077. To ensure the continuation of the project, we urged


management to use legal means to recover the total
amount of GH¢440,242.96 from either the contractor or the
guarantor without further delay and blacklist the
contractor.

URBAN ROADS – GOASO


Unaccounted Payments – GH¢2,370.00
1078. Regulation 39(2c) of FAR, 2004 (LI 1802) stipulates
that “the head of account section of a department shall
control the disbursement of funds and ensure that
transactions are properly authenticated to show that
amounts are due and payable”.

1079. Our review disclosed that four payment vouchers


covering expenditure of GH¢2,370.00 for goods and
services, were not supported with the relevant
Annual Report of the Auditor-General on the Public Accounts of Ghana –
275 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
expenditure documents such as receipts, invoices, activity
reports and other expenditure details to substantiate the
payments.

1080. We attributed this anomaly to failure on the part of


the Accountant to ensure that the vouchers were duly
supported with the necessary expenditure documents.

1081. We recommended that in the absence of the


necessary documents, the total amount should be
refunded by the Accountant and the Engineer.

Unaccounted Fuel Purchases – GH¢7,960.00


1082. Section 35(2a) of the Financial Administration Act,
2003 (Act 654) stipulates 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.

1083. Management however could not provide evidence


of usage of fuel and other lubricants totalling GH¢7,960.00
purportedly purchased during the period in their vehicle
logbooks. As a result, we could not confirm whether the
fuel was used in the interest of the office.

1084. In the absence of entries in the vehicle logbooks,


the amount of GH¢7,960.00 should be recovered from the
Engineer and the Accountant.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
276 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF POWER
Payment of Unearned Salaries – GH¢53,045.07
1085. Regulation 297(1) of the Financial Administration
Regulations, 2004 (LI 1802) states that “A head of
department shall cause the immediate stoppage of
payment of salary to a public servant when that public
servant resigned, retired or died.”

1086. We noted that, between February 2014 and


February 2015, a total of GH¢53,045.07 was paid to nine
officers who either resigned or vacated post as shown in
the table below:

Staff Name Position Date of Month Amount


I.D Separation GH¢
137063 Isaac Eshun Dep. Dir. 27/02/2014 March, 14- 30,639.77
Dec 2015
69727 Afra C. Nii Driver GD 1/3/2015 March-Dec 3,094.41
III 2015
735780 William Assistant 1/9/2014 Sept 14 – 3,175.76
Anthony Eng. June 2015
759661 Yaa De-Rex Assistant 1/8/2014 Aug, 14 – 5,803.78
Tanor Eng. Aug 2015
764623 Atta Junior Assistant 24/02/15 March – Aug 3,229.75
Amoako Int. 2015
Asare Auditor
619540 Benjamin Head man 1/12/2014 Dec 14 – Aug 444.00
Kwame Labourer 2015
Amanetey
883014 Delali Assistant 28/02/2015 March – Aug 2,219.20
Aboachie Eng. 2015

Annual Report of the Auditor-General on the Public Accounts of Ghana –


277 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
802641 Hanson Assistant 20/02/15 March – Aug 2,219.20
Monney Eng. 2015
928718 Hafiz Sule- Assistant 28/02/15 March –Aug 2,219.20
Braimah Records 2015
Officer
53,045.07

1087. Failure of the head of the HRD to notify the


Controller and Accountant-General to delete the names of
the affected staff resulted in this lapse.

1088. We advised management to take steps to delete the


names of the affected staff from the payroll and also to
recover the amount involved from the separated staff.

Vehicles not covered by title documents


1089. Regulation 6 of the Road Traffic Regulations of
1974, requires that any vehicle bought or change hands
should to be transferred to the new owner with all the
necessary documents.
1090. Our review of the transport management system
of the Ministry disclosed that 44 vehicles were captured
on the records of the Transport Unit, however, change of
ownership was not effected.

1091. This control weakness was attributed to


management’s failure to safe guard government
properties and to ensure that ownership of the vehicles
were changed.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


278 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1092. In the absence of the change, the ownership of the
vehicles remained in the name of the dealers, Toyota
Ghana Ltd. and others.

1093. We therefore recommended that management


should take steps to regularise ownership of the vehicles
to forestall future litigation.

MINISTRY OF GENDER, CHILDREN AND


SOCIAL PROTECTION

Judgement debt – GH¢236,023.40


1094. The Ministry in September 2013 purchased dress
making tools and equipment at a cost of GH¢250,750.00
from PC Dot Print Company Ltd. However, the Ministry
failed to effect payment as at 2015.

1095. This compelled the company to demand the


money through the court.
1096. The court ruled in favour of the company and
awarded a judgement debt of GH¢236,023.40 as interest
on the cost.

1097. Management’s failure to pay for the items after


supply resulted in the judgement debt.

1098. We advised management to ensure prompt


payment of supplies to avoid future judgement debt.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


279 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Unpaid withholding tax – GH¢6,739,602.53
1099. Contrary to Section 87(1) of the Internal Revenue
Act, 2000 (Act 592) management, between July 2015 and
December 2015, withheld a total tax of GH¢6,739,602.53
but failed to remit same to the Commissioner, Domestic
Tax Division of GRA.

1100. According to management, the fund was retained


in the account for recurrent expenditure due to
insufficient funds to cover payments due caterers.

1101. We recommended to management to remit the


Commissioner -General of GRA, the tax of
GH¢6,739,602.53.

JUNIOR GIRLS’ CORRECTIONAL CENTRE, BOYS’


REMAND HOME SHELTER FOR ABUSED CHILDERN
SOUTH LABONE GIRLS’ VOC. TRG. SCHOOL
OF THE DEPARTMENT OF SOCIAL WELFARE
ACCRA
Abandoned Vehicle No.GT 8527-X at a Private Garage
1102. Our review of asset registers of the Department
disclosed that an official Pick-Up Nissan vehicle with
registration No. GT8527X which was sent for repairs had
been abandoned at a private garage at Ho, since June 2012.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


280 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1103. Regulation 1608 of Stores Regulations 1984 states
inter alia that government vehicles shall be parked in
garages provided for them at the close of work.

1104. Management explained that the vehicle had been


left at the garage due to lack of funds to pay for the cost of
repairs.

1105. To prevent pilferage of essential parts of the


vehicle, we recommended to management to source for
funds from Headquarters (Ministry) to finance the repair
works, or seek approval from the authorities concerned to
auction the vehicle to avoid total loss of value.

MINISTRY OF CHIEFTAINCY AND


TRADITIONAL AFFAIRS
Failure to record fuel purchased in vehicle log books –
GH¢45,486.65
1106. Stores Regulation 1604 requires that, “A log book
shall be maintained for each government vehicle in which
journeys undertaken as well as full particulars of receipts
of fuel, oil and lubricants are recorded. Additionally,
under regulation 1605, the head of department should
ensure that the rate of consumption of fuel and oil is
computed monthly, in miles per gallon/ kilometer per
liter and recorded in the log books.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


281 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1107. We however, observed that fuel worth
GH¢45,486.65 comprising fuel coupons of GH¢39,920.00
and cash purchase of GH¢5,566.65 were not captured in
the log books of 21 official vehicles and two motor bikes of
the Ministry.

1108. We therefore, could not confirm the authenticity of


fuel worth GH¢45,486.65 purportedly bought and
consumed by the vehicles and motor bikes and whether
the vehicle were exclusively used for official duties.

1109. To ensure proper accountability of fuel usage, we


advised management to strictly ensure that log books
were properly maintained and updated regularly. We also
urged management to regularise the purchase and
consumption of fuel worth GH¢45,486.65 in the log books.

MINISTRY OF INFORMATION AND NATIONAL


ORIENTATION

GHANA BROADCASTING CORPORATION-


KOFORIDUA
Indebtedness to GBC – GH¢272,584.89
1110. Regulation 2(d) of Financial Administration
Regulations, 2004 (LI 1802) requires a head of government
department to secure the due and proper collection of
government revenue collectable by the department.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


282 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1111. Our review of the Debtors’ Ledger of Ghana
Broadcasting Corporation (GBC), Koforidua disclosed that
165 individuals and organisations owed the Corporation a
total amount of GH¢272,584.89 for services rendered.

1112. Management’s failure to pursue legal action to


recover the amounts after the issuance of the Demand
Notice resulted in the outstanding debt.

1113. We recommended that management should take


legal action to recover the amount.

Dishonoured Cheques – GH¢4,000.00


1114. Regulation 32(1) of the Financial Administration
Regulations, 2004 (LI 1802) states “A head of department
shall recover the value of any dishonoured monetary
instrument from the person who issued the instrument.”

1115. A Unibank Cheque No. 000035 of GH¢4,000.00


issued by Unique plus Health Care on 8 February to GBC
SUNRISE FM to pay for services rendered was
dishonoured.

1116. Management’s failure to pursue legal action to


recover the amounts after the issuance of the Demand
Notice accounted for the lapse thereby depriving the
Corporation the needed revenue.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


283 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1117. We urged management to institute legal action to
recover all debt owed with interest.

MINISTRY OF TOURISM, CULTURE AND CREATIVE

ARTS CENTRE FOR NATIONAL CULTURE (CNC),


TAMALE
Non transfer of Internally Generated Funds (IGF) into
Consolidated Fund Accounts – GH¢19,467.00
1118. Section 1 of the Retention Funds Act, 2007 (Act
735) requires Regional Centers for National Culture to
retain 50% of their IGF and remit the remaining 50% to the
Consolidated Fund (CF) account.

1119. Our audit disclosed that the Centre for National


Culture at Tamale collected a total IGF of GH¢38,934.00
between January and December 2016 but transferred only
GH¢700.00 (3.6%) instead of GH¢19,467.00 into the CF and
expended GH¢18,767.00 on recurrent without approval
from the Minister of Finance.

1120. We recommended that the expenditure incurred


without the Minister’s approval should be disallowed
and surcharged against the Spending Officer.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


284 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
MINISTRY OF LANDS AND NATURAL RESOURCES

LAND VALUATION BOARD – DENU


Unearned Salary – GH¢9,163.17
1121. Regulation 297(1) of the FAR, 2004 (LI 1802_ states
“A head of department shall cause the immediate
stoppage of payment of salary to a public servant when
that public service resigned, retired or died”.

1122. Contrary to the above regulation, we noted during


our payroll audit that a total amount of GH¢9,163.17
covering 13 May 2015 to January 2016 was paid as
unearned salary to Mr. Edwin Simpler Addor’s account
with the Agric Development Bank, Denu Branch. Mr.
Addor with ID No. 4163 retired from the Land Valuation
Board with effect from 12 May, 2015.

1123. Management’s failure to closely monitor the


payroll led to the situation and this could result in a
financial loss to the State.

1124. We recommended and Management agreed to


retrieve the amount from the gratuity of Mr. Addor.

LANDS COMMISSION-SEKONDI
Non-payment of rent – GH¢6,657,597.90
1125. The Operational Manual of the Lands
Commission, Chapter V Section 5.4 (a) states among

Annual Report of the Auditor-General on the Public Accounts of Ghana –


285 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
others that,’’ the Commission shall take proactive steps to
collect rents in respect of its estates”.

1126. Examination of rent registers of the occupants of


State lands revealed that a number of institutions and 18
individuals were indebted to the Government an amount
of GH¢6,642,389.90 in respect of ground rent and
GH¢15,208.00 as staff rent.

1127. We urged management to adopt stringent


measures, including court action, to recover the arrears of
rent from the individuals and institutions concerned.

Overpayment of salary – GH¢18,915.29


1128. Regulation 292(1) of FAR, 2004 (LI 1802) states that
“ Every head of department shall keep records of all
personnel emolument of staff employed in the
department, in a form that ensures that the rates
authorised for payments are not exceeded’’.

1129. Contrary to the regulation, personal files and


Electronic Salaries Payment Vouchers examined revealed
that, three staff of the Commission, Nana Adjei Manu,
Ernest Okyere and Grace Baaba Yeboah who were
employed on 28 December, 2012 received salaries of
higher rank officers. As a result a total unearned salary of
GH¢18,915.29 was paid to them as shown in the table
below:
Annual Report of the Auditor-General on the Public Accounts of Ghana –
286 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Name Actual Real Amount Difference
Rank Salary Paid GH¢
GH¢ GH¢
Ernest Driver Gd 12,684.02 15,380.78 2,696.76
Otchere II
Nana Adjei Admin. 42,782.75 51,627.59 8,844.84
Manu Officer
Grace Baaba Steno. Gd 1 12,081.96 19,455.65 7,373.69
Yeboah
67,548.73 86,464.02 18,915.29

1130. Management explained that the anomaly occurred


during their appointment and mechanisation of salaries
and that Head Office was fully aware and steps were
being taken to streamline the anomaly.

1131. We urged management to restore them to their


correct salary scale and also recover the amount of
GH¢18,915.29 from the affected persons and pay same into
the Controller and Accountant- General’s Suspense
Account.

LANDS COMMISSION, TAMALE


Revenue collected not fully accounted for – GH¢2,234.00
1132. Regulation 28(1) of the Financial Administration
Regulations 2004 (LI 1802) requires that “A collector who
is satisfied that money tended is in order, shall issue an
original receipt to the payer and shall deal with the

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287 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
duplicate and triplicate copies as required by the
departmental Accounting Instructions.”

1133. Our examination of revenue collectors cash books


at the Land’s Commission, Tamale revealed that a total
revenue of GH¢2,234.00 was short accounted for by Mr.
John Tamaklor as shown below:
Date of GCRs Amount Amount Difference Treasury
Collection No. Collected Paid GH¢ Receipt
GH¢ GH¢ No.
24/04/15 53606 175.00 75.00 100.00 52768
24/04/15 53607 205.00 105.00 100.00 52768
25/08/15 772716 60.00 40.00 20.00 57323
11/3/2015 110605 1,500.00 - 1,500.00 -
27-10/02/15 0127093-97 434.00 - 434.00 -
17/02/15 50921 220.00 40.00 80.00 -
Total 2,594.00 360.00 2,234.00

1134. This was due to weak supervision and irregular


checks on the revenue collectors which affected efficient
revenue accountability.

1135. We urged management to ensure that the officer


concerned refunded the amount.

Inappropriate mode of selecting consultant –


GH¢4,550.00
1136. Section 66(3a) of Public Procurement Act 2003,
(Act 663) State “Where direct invitation is necessary for
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288 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
economic and efficiency reasons, the procurement entity
with the approval of the Board may apply the provisions
of subsection (1) and (2) where the services to be procured
are available only from a limited number of consultants, if
it invites expressions of interest from all these
consultants”.

1137. The Tamale Regional Lands Commission made


single source procurement by paying GH¢4,550.00 to Ace
Consult for consultancy services without putting it to
tender. We also noticed that the Commission did not seek
for approval from the Public Procurement Authority
before embarking on the process of sole sourcing.

1138. We advised management to comply with the


provisions in the Public Procurement Act.

Fuel purchases not accounted for – GH¢2,135.00


1139. Regulation 1604 of the Stores Regulations 1984
states “A vehicle log book shall be maintained for each
vehicle and shall always be carried in the vehicle”.
Journeys undertaken shall be recorded and full particulars
of receipts of fuel, oil, and lubricants shall be entered up
daily in the book by the driver. Recording in the log book
shall be made in duplicate. All journeys recorded in the
log book shall be certified by the officer using the vehicle.”

Annual Report of the Auditor-General on the Public Accounts of Ghana –


289 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1140. We observed that fuel worth GH¢2,135.00
purchased by the Tamale Regional Lands Commission for
official use was not recorded in the vehicle log books.

1141. Management’s failure to effectively supervise the


duties of the drivers resulted in the anomaly.

1142. Non-adherence to the provisions above made it


difficult to confirm the authenticity of the payments.

1143. We recommended that management should


provide evidence of the use of the fuel purchased, failure
of which the amount be recovered from the spending
officer.

GEOLOGICAL SURVEY DEPARTMENT, TAMALE


Withdrawals not accounted for – GH¢5,800.00
1144. Section 13(a) of the Audit Service Act, 2000 (Act
584) states that “The Auditor-General shall examine in
such a manner as he thinks necessary, the public and the
government accounts and shall ascertain whether in his
opinion Moneys have been expended for the purpose for
which they were appropriated and the expenditures have
been made as authorised”.

1145. Our examination of the bank statement disclosed


that withdrawals totalling GH¢5,800.00 were made by the
Tamale Regional Geological Accountant, Ms. Bintu
Annual Report of the Auditor-General on the Public Accounts of Ghana –
290 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Fatimah Gomda but failed to record in the cash book,
neither did she raise payment vouchers to support
disbursement as shown below:

Date Cheque Amount


No GH¢
17/7/15 631181 3,000.00
17/7/15 631182 600.00
17/7/15 631183 2,000.00
11/8/16 631185 200.00
Total 5,800.00

1146. We recommended that the amount should be


recovered from the Accountant.

Payment not fully accounted for – GH¢6,055.00


1147. Regulation 39(2c) of FAR, 2004, (LI 1802) states
that “the head of the Accounts section of a department
shall control the disbursements of funds and ensure that
transactions are properly authenticated to show that
accounts are due and payable”.

1148. Four payment vouchers raised to pay an amount


of GH¢6,725.00 were not fully accounted for with the
necessary receipts and invoices as shown below:

Annual Report of the Auditor-General on the Public Accounts of Ghana –


291 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Date PV No Details PV Amount Diff.
Amount Accounted GH¢
GH¢ GH¢
GSD/02/16 Electricity 440.00 390.00 50.00
bought
1/7/16 GSD/19/16 Maintenance 485.00 280.00 205.00
of vehicle
6/1/16 Goods and 3000.00 - 3000.00
Services
4/7/16 Goods and 2800.00 - 2800.00
Services
Total 6,725.00 670.00 6,055.00

1149. This could result in payment for non-existent


transactions.

1150. We recommended that the Accountant should


refund the difference of GH¢6,055.00 not accounted for.

OTHER AGENCIES

KOFI ANNAN CENTRE OF EXCELLENCE IN ICT


Revenues not transferred into the Consolidated Fund –
GH¢ 1,717,661.66
1151. Regulation 17 of the Financial Administration
Regulations, 2004 states that a head of department shall
ensure that all Non-Tax Revenues are immediately lodged
into the Consolidated Fund bank accounts except in the
case of Internally Generated Funds retained under an
enactment and monitor and ensure that all Non-Tax
Revenue lodged into the transit bank accounts are

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292 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
promptly transferred into the main Consolidated Fund
bank account.

1152. Our review of cash management revealed that


total revenue of GH¢1,717,661.66 collected as IGF during
the period 1/1/2015 to 31/12/15 was lodged into the
Center’s operations account. We further observed that
only GH¢30,800 representing 1.8 % was transferred into
the consolidated fund.

1153. We also noted that management incurred its


administrative, service and capital expenditures from this
collection without authorization from the Ministry of
Finance. This in our view constituted total disregard for
the regulation and a breach of financial discipline.

1154. We recommended that management should


recover the GH¢1,717,661.66 wrongly lodged in the
operations account and pay same into the Consolidated
fund.

1155. Management explained that the funds were used


to pay for utilities, internet access, security, janitorial
services and replacement of vital equipment when
releases were not forth coming.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


293 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
CIVIL SERVICE TRAINING CENTRE
Outstanding debts not recovered – GH¢48,600.00
1156. Regulation 110 of the Financial Administration
Regulations, 2004 (LI 1802) states that, a head of
department or the officer to whom the duties of the head
of department have been delegated shall ensure that
moneys owed the institution or department are duly
recovered.

1157. We observed that Management failed to recover


fees charged totalling GH¢48,600.00 for organizing
training programmes for MDAs.

1158. We recommended to Management to collect the


debt from the beneficiary MDAs.

Unpresented payment vouchers – GH¢57,859.50


1159. Regulation 1 of the Financial Administration
Regulations, 2004, (LI 1802) states that, ‘Any public officer
who is responsible for the conduct of financial business on
behalf of the Government of Ghana, the receipt, custody
and disbursement of public and trust moneys, shall keep
proper records of all transactions and shall produce
records of the transactions for inspection when called
upon to do so.’

1160. The Centre paid a total amount of GH¢57,859.50 to


individuals and organisations for various activities on 14

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294 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
PVs but the Accountant failed to present the PVs for audit
examination.

1161. We therefore could not vouch for the veracity of


the transactions.

1162. We recommended to management to ensure that


the Accountant submitted the vouchers for audit
examination or make good the amount of GH¢57,859.50.

PV not supported with minimum of three quotations –


GH¢9,218.97
1163. Section 43(1) of the Public Procurement Act 2003,
Act 663 requires the procurement entity to request for
quotations from as many suppliers or contractors as
practicable, but from at least three different sources.

1164. The Centre procured goods and services worth


GH¢9,218.97 from suppliers and service providers. We
however noted that, the officer in charge of procurement
did not obtain at least three quotations from different
suppliers to support the three vouchers covering the
payments, neither was approval sought from the
Procurement Authority to engage in sole sourcing.

1165. This practice which was a breach of the provisions


in the Procurement Act and could lead to procurement at
uncompetitive prices.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


295 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1166. We advised management to enforce compliance
with the requisite provision to the PPA in future.

PUBLIC SECTOR REFORM SECRETARIAT


Unretired imprest – GH¢32,100.00
1167. Imprest shall be retired at the close of a financial
year and any imprest not retired shall be adjusted to a
personal advance account in the name of the imprest
holder.

1168. We observed that management granted imprest


totalling GH¢32,100.00 to eight members of staff to
perform activities on behalf of the Secretariat. However,
the eight officers failed to account for the amount at the
end of the audit period.

1169. Failure of management to enforce accountability


by the affected officers resulted in this lapse.

1170. We recommended that management should


convert the imprests into salary advance in the name of
the affected officers and recover same from their salaries.

Unreceipted payments – GH¢22,373.75


1171. Regulation 39(2) of the Financial Administration
Regulations, 2004 (LI 1802) requires heads of account
sections of departments to control the disbursements of

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296 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
funds and ensure that transactions are properly
authenticated to show that amounts are due and payable.

1172. Management paid a total amount of GH¢22,373.75


to six suppliers and service providers for goods and
services supplied. We however noted that the Accountant
did not support the payment vouchers with official
receipts of the payees.

1173. In the absence of the receipts, we could not


confirm whether the service providers have received
payments for their services.

1174. We recommended to management to demand the


receipts from the payees to complete the transactions.

1175. Management attributed the cause of this anomaly


to direct payment to suppliers through the GIFMIS
platform which did not see the need to bring receipts for
payment made.

Unpresented payment Vouchers – GH¢16,838.55


1176. Regulation 1(b) of the Financial Administration
Regulations, 2004 (LI 1802) states that; any public officer
who is responsible for the receipt, custody and
disbursement of public and trust moneys shall keep
proper records of all transactions and shall produce

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297 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
records of the transactions for inspection when called
upon to do so.

1177. The Secretariat paid a total amount of


GH¢16,838.55 for various activities undertaken during the
period. The Accountant however did not submit the three
payment vouchers covering the payments for audit to
ascertain the genuineness or otherwise of the transactions
they covered.

1178. We attributed the anomaly to improper records


keeping by the schedule officer.

1179. The absence of the payment vouchers denied the


audit the opportunity to establish the authenticity of the
payments.

1180. To ensure accountability and transparency, we


recommended to management to locate and submit the
vouchers for our examination or the amount involved
should be refunded by the Accountant.

Unearned Salary – GH¢1,521.56


1181. Regulation 297(1&2) of the Financial
Administration Regulations, 2004 (LI 1802) states that, A
head of department shall cause the immediate stoppage of
payment of salary and all other payments to a public
servant when that public servant has resigned or retired.’
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298 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1182. Mr. George Wobill, with a staff Identity number
49036, went on compulsory retirement on 30 October 2015
but was continually paid unearned salaries totalling
GH¢1,521.56 for the months of November and December
2015.

1183. Management attributed the lapse to the Controller


and Accountant-General’s failure to discontinue the
payment of salary when input for deletion was prepared
and submitted for further action.

1184. Unearned salary paid to a retired or resigned staff


if not recovered constituted a loss to the State.

1185. We therefore recommended to management to


recover the amount of GH¢1,521.56 from the retired
officer.

VOLTA REGIONAL CO-ORDINATING COUNCIL


Misapplication of Funds – GH¢ 960,700.29
1186. Contrary to the Ministry of Local Government and
Rural Development’s guidelines on MMDAs share of the
Common Fund that 60% of the allocation should be spent
on General Administration and 40% on Monitoring and
Evaluation by the Regional Planning Co-ordinating Unit
(RCPU), management failed to comply and spent only
7.5% of the share of the Common Fund on Monitoring

Annual Report of the Auditor-General on the Public Accounts of Ghana –


299 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
during the period August 2015 to July 2016 as shown
below:
S Date Period Total 40% Share Actual Variance
R. for the Allocation for Amt. spent
N fund Received monitoring GH¢
o.
1. 28/08/ 2nd Qtr. 447,900.41 179,160.16 50,000.00 129,160.16
2015 2015
2. 03/11/ 3rd Qtr. 471,342.71 188,537.08 50,000.00 138,537.08
2015 2015
3. 26/11/ 3rd Qtr. 432.,758.95 173,103.58 - 173,103.58
2015 2015
4. 04/01/ 4th Qtr. 441,991.84 176,991.84 70,000.00 106,991.84
2016 2015
5. 17/6/ 1st Qtr. 657,999.58 263,199.83 50,000.00 213,199.83
2016 2015
6. 19/7/ 2nd Qtr. 499,269.51 199,707.80 - 199,707.80
2016 2015
Totals 2,951,263.00 1,770,757.81 1,180,700.29 960,700.29

1187. Management attributed the cause of the deviation


to insufficient receipt of the allocation resulting in huge
outstanding debt under Administration which needed to
be settled to avoid legal tussle.

1188. We recommended that management should


refund the total amount of GH¢960,700.29 to the RPCU
from the Council’s subsequent releases.

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300 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Missing vehicles
1189. Regulation 183(3) of FAR, 2004 (LI 1802) requires
that, “A head of department shall be accountable for the
proper care, custody and use of government stores from
the time of acquisition until they have been used or
otherwise disposed of in accordance with the regulation”.

1190. Our physical inspection of vehicles owned by the


Volta Regional Coordinating Council disclosed that an
official Land Rover vehicle with registration number GT
8935 R got missing from a workshop when it was sent for
repairs on 29/10/09 and had since not been retrieved.

1191. Similarly, a Rover Saloon car with registration


number. VR 133-V and a Nissan Patrol with registration
number GT 382 – 13 got lost from the pool.

1192. According to the Transport officer the Rover


Saloon Car had been with a retired Director in Accra for
the past two years and had refused to return it. The
Nissan patrol was also sent to Ashanti Region for official
assignment but got broken down and had still not been
returned.

1193. We attributed the anomaly to laxity in vehicle


controls and ineffective supervision by management on
the transport officer.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


301 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1194. We urged management to report the matter to the
Police to investigate the whereabouts of the vehicles and
retrieve them for the Council. Also management should
ensure that proper controls and supervision mechanisms
were put in place to prevent future occurrence.

1195. According to Management a board of survey met


on the vehicle and they were waiting recommendations
for action to be taken. The matter was still under
correspondence.

Rent Arrears – GH¢40,579.18


1196. Occupants of government bungalows/
flats/quarters are expected to pay 10% of their basic salary
as rent in accordance with Ministry of Finance circular
number 133385/05/06/NTR CADG of 15/5/ 2006.

1197. A review of records on government


bungalows/flats/quarters at the Volta Regional
Coordinating Council disclosed that 35 occupants owed a
total amount of GH¢40,579.18 as rent for the period July
2015 to August, 2016.

1198. Management’s failure to compel occupants to


honor their rent obligations were the cause of the
anomaly. Under the circumstances funds could not readily
be made available for the rehabilitation of the bungalows/
flats/quarters.
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302 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1199. We urged management to adopt stringent
measures to recover the arrears and also ensure that
appropriate inputs were submitted to Controller and
Accountant- General’s Department to deduct rent due at
source from salaries of staff. Again the maintenance of a
proper database, monthly reconciliation with payroll
records and effective monitoring to ensure payment of
rent by occupants were recommended.

REGIONAL ENVIRONMENTAL HEALTH UNIT – HO


Unreceipted payments – GH¢ 53,578.00
1200. Regulation 39(2) of the Financial Administration
Regulations, 2004 (LI 1802), requires heads of account
sections of departments to control the disbursements of
funds and ensure that transactions are properly
authenticated to show that amounts are due and payable.

1201. Contrary to the above Regulation, the


Environmental Health Unit of the Volta Regional
Coordinating Council made payments on five vouchers
amounting to GH¢99,460.00 and provided receipts for
only GH¢45,882.00 leaving a difference of GH¢53,578.00
unaccounted for.

1202. We could not confirm whether the amounts were


received by the payees involved.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


303 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1203. We urged the Environmental Health Officer
(REHO) to ensure that official receipts were obtained from
the service providers to enhance transparency and
accountability. Failing which the REHO should be
surcharged with the total amount involved.

1204. Management therefore requested the


Environmental Health Officer to account fully for the
money since the programme had been completed.

MANAGEMENT SERVICES DEPARTMENT


Payment vouchers not supported with official receipts –
GH¢2,018.06
1205. Regulation 39(2) of the Financial Administration
Regulations, 2004 (LI 1802) requires heads of accounts
section of departments to control the disbursements of
funds and ensure that transactions are properly
authenticated to show that amounts are due and payable.

1206. Our examination of Payment Vouchers disclosed


that the Accountant did not support three vouchers used
in disbursing GH¢2,018.06 with official receipts. The
payments were allegedly made to Ghana Water Company
Limited between April 2015 and December 2015.

1207. Not supporting the vouchers with relevant receipts


did not give sufficient assurance that the payments made
were in the interest of the department.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


304 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1208. The schedule officer explained that Ghana Water
Company Limited did not issue receipts to the
Department because the amount was erroneously credited
to a wrong account.

1209. Management confirmed that GWSL delayed the


issuance of the receipts due to technical error and that the
receipt would be issued as soon as the anomaly was
rectified.

1210. We recommended to management to urge the


schedule officer to obtain the receipts from Ghana Water
Company Ltd., failing which the amount should be
refunded by the Accountant.

PUBLIC SERVICES COMMISSION


Purchase of vehicle without tender – GH¢268,450.00
1211. Section 47(2) of the Public Procurement Act, 2003,
Act 663 states that, the invitation to tender or invitation to
prequalify shall also be published in at least two
newspapers of wide national circulation.

1212. The Commission in September 2015, procured two


pickup vehicles at a total cost of GH¢268,450.00 from
Japan Motors Trading Company Limited.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


305 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1213. Our audit however disclosed that, management
did not publish the invitation to tender for the contract in
any two newspapers of wide national circulation.

1214. The schedule officer explained that one publication


was made in the Ghanaian Times newspaper and the
other was placed on the Commission’s website.

1215. We were of the view that the provision in the Act


stipulates that; invitation to tender should be published in
at least two newspapers of wide national circulation and
not websites.

1216. The required procurement process was therefore


not followed and there was also the risk that the
Commission would not benefit from good quality vehicles
at competitive prices.

1217. We recommended to management to ensure that


at all times provisions in the Procurement Act were duly
followed to ensure value for money.

Outstanding rent and utility charges not collected –


GH¢1,600.00
1218. The Commission rented part of its premises to one
Madam Rosemary Abbey to operate canteen services to
the general public. The two parties agreed that Madam
Rosemary Abbey (the tenant) would pay GH¢400.00 as
Annual Report of the Auditor-General on the Public Accounts of Ghana –
306 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
monthly rent and cost of utilities. The agreement was to
take effect from September 2015.

1219. We noted that the tenant defaulted in the payment


of both rent and utility charges to the tune of GH¢1,600.00
and the Commission did not ensure collection of the
outstanding amount. The amount was in respect of the
period from September 2015 to December 2015.

1220. According to the Accountant management had on


several occasions reminded Madam Rosemary Abbey to
settle her indebtedness to the Commission but to no avail.

1221. We recommended to management to ensure the


recovery of the amount of GH¢1,600.00 from the tenant.
We also advised on prompt collection of rent and utility
charges in future. We again advised management on the
need for an upward review of rent and utility charges to
reflect the current economic trends.

1222. In response, management stated that they had


reviewed the rent upwards to GH¢600.00 a month
effective January 2016 while attempts are being made to
recover the outstanding debt of GH¢1,600.00.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


307 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
GHANA METEOROLOGICAL AGENCY - WA
Stolen Computer – GH¢1,500.00
1223. Regulation 183(3) of the Financial Administration
Regulations, 2004 (LI 1802) states that “a head of
department shall be accountable for the proper care,
custody and use of government stores from the time of
acquisition until they have been used or otherwise
disposed off”.

1224. Inventory check revealed that one Dell Computer


valued at GH¢1,500.00 was stolen from the Office on 7
October 2015.

1225. Although management had reported the loss to the


Regional Police Command, Wa, as at the time of our audit,
the Police had not been able to arrest the suspect.

1226. We advised management to follow up and ensure


that the Regional Police Command apprehended the
perpetrator or the Municipal Meteorological Officer Mr.
Samuel Gyekye be surcharged with the cost of the
computer.

1227. Again, we advised the Regional Meteorological


officer to strengthen security measures at the Agency in
order to avoid the recurrence of this incident.

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308 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1228. The Police assured Management of intense
investigation into the matter and would inform them
accordingly of any development on the matter.

GEOLOGICAL SURVEY DEPARTMENT (ACCRA)


Payment of Unearned Salaries – GH¢5,780.59
1229. Mr. Nana Oppong Adjei, a staff of Geological
Survey Department, vacated post in November, 2014 but
was continually paid unearned salaries totalling
GH¢5,780.59 for the periods December 2014 to June 2015.

1230. We recommended full recovery of the unearned


salaries from the officer.

1231. Management in response stated that the


Department had written to the Ghana Commercial Bank,
Gulf House to pay all monies accrued into Mr. Oppong
Agyei’s Account into the Controller and Accountant
General’s Suspense Account. The bank was yet to furnish
the Department with the outcome.

NATIONAL COMMISSION FOR CIVIC EDUCATION


– BOLGATANGA
Unsupported payments – GH¢21,820.00
1232. Regulation 39(2c) of Financial Administration
Regulations, 2004 (LI 1802) states that the head of the
accounts section of a department shall control the
disbursements of funds and ensure that transactions are

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309 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
properly authenticated to show that amounts are due and
payable and any order for disbursements that does not
meet these requirements is rejected.

1233. Contrary to the above regulation, we noted that


the Regional Municipal office made payments totalling
GH¢18,240.00 on two vouchers without official receipts,
invoices and statements of claim to authenticate the
transactions.

1234. The anomaly was caused by management’s failure


to ensure that official receipts, invoices and statements of
claims were obtained to support the payments.

1235. Similarly, out of GH¢18,652.00 released on four


payment vouchers, only GH¢15,062.00 was accounted for
by way of receipts and invoices leaving a difference of
GH¢3,590.00 unaccounted for.

1236. In the absence of the expenditure supporting


documents, we could not ascertain whether the funds
were actually released to the payees.

1237. We recommended to management to surcharge the


Accountant with the amount.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


310 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
COMMUNITY DEVELOPMENT – KOFORIDUA
Rent Defaulters – GH¢3,440.00
1238. Occupants of Government Bungalows/flat
/quarters are expected to pay 7% and 16% of their basic
salary towards rent in accordance with Ministry of
Finance Circular No. MFCMU/of 21 August 2001 and
133385/05/06 NTRCAGD of 15 May 2006.

1239. The Department’s Rent Register disclosed, that


two staff members who occupied the Department’s
housing facilities defaulted in the payment of rent
amounting to GH¢3,440.00 for periods ranging between 10
and 22 months due to management’s failure to vigorously
pursue recovery of the rent from tenants as required
under the Circular.

1240. The lapse denied the department access to funds


which could have been used to fund maintenance and
repair works on such housing facilities.

1241. We advised management to recover the arrears of


rent from the defaulters and put in effective measures to
ensure prompt payment of rent by tenants.

GOVERNMENT SECRETARIAL SCHOOL, TAMALE


Failure to disclose revenue – GH¢126,345.00
1242. Regulations 19(1) of the Financial Administration
Regulations, 2004 requires the head of department to fully

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311 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
disclose all non-tax revenue (fees) collected, lodged or
retained to the Auditor- General.

1243. We noted that the Government Secretarial School


at Tamale had a student population of 243 with an
expected revenue of GH¢161,750.00 to be generated by
way of sale of admission forms, school fees and other
charges. Management however, disclosed only
GH¢35,405.00 in the books of accounts leaving
GH¢126,345.00 not accounted for as shown below:

No. of Reg. App. Sch. Total Grand


Students Form Forms Fees Fees Total
(a) (b) (a*b)
Hostel 85 - 200.00 200.00 17,000.00
Mattress 40 - - 50.00 50.00 2,000.00
1st Year 70 - 60.00 400.00 460.00 32,200.00
2nd Year 93 350.00 - 400.00 750.00 69,750.00

Intermediate 80 - 60.00 450.00 510.00 40,800.00


Total 161,750.00
Less:
Registration
Paid 35,405.00
Balance 126,345.00

1244. The anomaly occurred because the Principal used


unauthorised receipts to collect fees without the
involvement of the School’s Accountant even though
Management had in stock of CAGD’s General Counterfoil
Receipts (GCRs) for use.
Annual Report of the Auditor-General on the Public Accounts of Ghana –
312 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
1245. This act of financial indiscipline was a deliberate
attempt to suppress the School’s funds for personal
benefit, a situation that had made the School to lose
revenue for its activities.

1246. We therefore recommended that


a. The principal should refund the amount of
GH¢126,345.00 to the school and punitive action
taken against him.
b. Fees and other forms of charges must be
collected by the Accountant to ensure proper
accountability.
c. CAGD’s GCRs must be the only medium for
collection of fees from students.

Annual Report of the Auditor-General on the Public Accounts of Ghana –


313 Ministries, Departments and Other Agencies (MDAs) for the year ended 31
December 2016
Mission
Statement
The Ghana Audit Service exists

To promote
· good governance in the areas of transparency,
accountability and probity in the public financial
management system of Ghana

By auditing
· to recognized international auditing standards, the
management of public resources

And
· reporting to Parliament

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