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REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA:
PUBLIC BOARDS, CORPORATIONS AND OTHER STATUTORY INSTITUTIONS
FOR THE PERIOD ENDED 31 DECEMBER 2020
REPUBLIC OF GHANA
Our Vision To become a world- c lass Supreme Audit Institution, d e l i v e r i n g p r o f e s s i o n a l , excellent, and cost effective auditing Service.
REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA: PUBLIC BOARDS, CORPORATIONS AND
OTHER STATUTORY INSTITUTIONS FOR THE PERIOD ENDED
31 DECEMBER 2020
This report has been prepared under Section 11 of the Audit Service Act, 2000 (Act 584) for presentation to Parliament in accordance with Section 20 of the Act.
Johnson Akuamoah Asiedu Acting Auditor-General Ghana Audit Service 31 May 2021
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 2021
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 iii
TABLE OF CONTENTS Para(s) Page(s)
Transmittal Letter 1-6 vii-viii
Contributing Audit Firms ix-x
Audit opinion 21-27 7-8
PART III
No. Ministry Para(s) Page(s) Ministry of Energy
1. Electricity Company of Ghana 278-358 67-87 2. Northern Electricity Distribution Company 359-394 87-92 3. Volta River Authority 395-422 93-98 4. Volta River Authority Health Services Ltd 423-475 98-106 5. Bulk Oil Storage and Transportation
Company Limited 476-619 107-129
6. Bui Power Authority 620-649 129-135 7. Ghana National Petroleum Corporation 650-691 135-142 8. National Petroleum Authority 692-705 142-145 9. Unified Petroleum Price Fund 706-720 145-148 10. Public Utilities Regulatory Commission 721-748 148-154
Ministry of Finance 11. Venture Capital Trust Fund 749-770 154-157 12 Securities and Exchange Commission 771-785 158-160 13. National Lottery Authority 786-807 161-165 14. Bank of Ghana 808-848 165-171 15. Ghana Publishing Company Limited 849-866 172-174 16. Ghana Deposit Protection Corporation 867-875 175-176
Ministry of Education 17. Ghana Academy of Arts & Sciences 876-903 177-182 18. National Service Scheme 904-933 182-188 19. University of Cape Coast 934-973 188-197
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020iv
20. University of Ghana 974-1058 197-217 21. University of Professional Studies 1059-1070 217-221 22. University of Education, Winneba 1071-1089 221-226 23. University of Development Studies 1090-1107 226-229 24. Ghana Education Trust Fund 1108-1124 229-232 25. National Film and Television Institute 1125-1133 233-234
Ministry of Health 26. Food and Drugs Authority 1134-1159 234-239
Ministry of Lands and Natural Resources 27. Lands Commission 1160-1186 239-243 28. Songor Salt Project 1187-1196 243-245 29. Administrator of Stool Lands 1197-1214 245-248 30. Forestry Commission 1215-1234 248-251
Ministry of Food and Agriculture 31. Ghana Cocoa Board 1235-1403 251-295 32. Irrigation Company of Upper Region
Limited 1404-1426 295-299
33. Grains and Legumes Development Board 1427-1435 299-300 34. National Food Buffer Stock Company
Limited 1436-1517 300-331
35. Ghana Irrigation Development Authority 1518-1526 332-333 Ministry of Justice and Attorney General’s Department
36. Economic and Organized Crime Office 1527-1534 333-340 37. General Legal Council 1535-1599 340-351
Ministry of Communication 38. Ghana Post Company Limited 1600-1656 351-364 39. National Communications Authority 1657-1713 364-378 40. Ghana Investment Funds for Electronic
Communications 1714-1722 378-381 Ministry of Tourism, Creative Arts & Culture
41. Du-Bois Centre 1723-1732 381-382 42. Kwame Nkrumah Memorial Park 1733-1745 382-384 43. Centre for National Culture 1746-1748 385-385
Ministry of Interior 44. National Disaster Management
Organization 1749-1794 385-393
45. Social Security and National Insurance Trust
1795-1940 393-429
Ministry of Transport
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 v
46. Ghana Shippers Authority 1941-1971 430-437 47. Government Technical Training Centre 1972-1984 437-440 48. PSC Tema Shipyard 1985-2018 440-447 49. Ghana Civil Aviation Authority 2019-2040 447-451 50. Ghana Railway Company Limited 2041-2060 451-454 51. Ghana Maritime Authority 2061-2094 455-462 52. Ghana Ports and Harbour Authority 2095-2142 463-471 53. Ghana Airport Company 2143-2163 472-475
Ministry of Trade and Industry 54. Exim Bank 2164-2201 475-481 55. Ghana Standards Authority 2202-2252 481-489 56. Ghana Supply Company Limited 2253-2268 489-492 57. Ghana Free Zones Authority 2269-2307 492-497
Ministry of Information 58. New Times Corporation 2308-2351 498-510 59. Graphic Communications Group Limited 2352-2375 510-514
Ministry of Works and Housing 60. Public Servants Housing Loan Scheme
Board 2376-2408 515-522
61. Tema Development Company Limited 2409-2425 522-525 62. Architectural and Engineering Services
Limited 2426-2459 526-531
63. Greater Accra Metropolitan Area Sanitation and Water Project
2460-2468 531-533
64. Ghana Water Company Limited 2469-2495 534-538 65. Water Resources Commission 2496-2534 538-545
Ministry of Environment, Science and Technology Innovation
66. Institute of Scientific and Technological Information (CSIR)
2535-2544 545-549
67. Building and Road Research Institute 2545-2553 549-550 68. Animal Research Institute (CSIR) 2554-2567 551-553 69. Food Research Institute (CSIR) 2568-2576 553-554 70. Ghana Grains Development Project 2577-2586 555-556 71. Plant Genetic Resource Research Institute
(CSIR) 2587-2595 556-558
2596-2604 558-559
73. Soil Research Institute 2605-2618 560-562 74. Forestry Research Institute of Ghana 2619-2627 562-563 75. Institute of Industrial Research (CSIR) 2628-2641 564-566
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020vi
76. Ghana Atomic Energy Commission 2642-2651 566-567 77. Nuclear Regulatory Authority 2652-2666 568-570
Ministry of Roads and Highways 78. Department of Feeder Roads 2667-2672 570-576 79 Ghana Highway Authority 2673-2700 576-580
Ministry of Local Government and Rural Development
80. Ministry-Head Office 2701-2708 581-583 81. Institute of Local Government Studies 2709-2728 584-589
Extra Ministerial Agencies 82. National Population Council 2729-2751 590-594 83. Ghana Aids Commission 2752-2773 594-598
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 vii
TRANSMITTAL LETTER
P O Box MB 96 Accra
GA-110-8787
31 May 2021
Dear Rt. Hon. Speaker,
REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GHANA: PUBLIC BOARDS, CORPORATIONS AND
OTHER STATUTORY INSTITUTIONS FOR THE PERIOD ENDED 31 DECEMBER 2020
I have the honour to submit my audit report on the Public Accounts of Ghana-Public Boards, Corporations and other Statutory Institutions to you to be tabled in the House pursuant to Article 187 (5) of the 1992 Constitution and Section 20(1) of the Audit Service Act, 2000 (Act 584).
2. The report has been structured into three parts. Part I provides an overall summary of significant findings and recommendations; Part II is a summary of findings and recommendations in respect of each Sector Ministry and their respective Public Boards, Corporations and other Statutory Institutions, while Part III gives the full details of my findings and recommendations.
3. Mr. Speaker, this report highlights the significant findings arising from my audit of the financial operations of Public Boards, Public Corporations and other Statutory Institutions in accordance with Section 13 of the Audit Service Act, 2000 (Act 584). This includes details
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020viii
of financial irregularities identified, and resulting from breakdown of internal controls. The report also provides recommendations, where appropriate, and which implementation, it is reasonably assumed, would help rectify identified weaknesses in the financial management control systems.
4. Being aware of the extent of my reliance on others to produce my report, I would like to thank my staff and the contracted Audit Firms for the invaluable assistance provided to enable me prepare this report.
5. I am also grateful to the Chief Executives, Chief Finance Officers and the staff of the various Institutions for their cooperation during the audits.
6. Finally, I would like to thank the Public Accounts Committee for their continued confidence and support for my work by reviewing my reports and reinforcing my recommendations to the Public Boards and Corporations for purposes of prudent management of the public purse.
Yours faithfully,
THE RT. HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA.
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 ix
Contributing Audit Firms
• PWC Ghana
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020x
• Robert Azu & Partners
• V T Consult
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 1
REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA-PUBLIC BOARDS, CORPORATIONS AND OTHER STATUTORY INSTITUTIONS FOR THE YEAR
ENDED 31 DECEMBER 2020
Introduction
The audit of the accounts of Public Boards, Corporations and other Statutory Institutions for the period ended 31 December 2020 has been conducted in accordance with Article 187(2) of the 1992 Constitution of the Republic of Ghana.
2. The objective of the audit is to express an opinion on the accounts submitted to me by each Public Board, Corporation and other Statutory Institutions for my examination.
3. I also evaluated the adequacy of the system of internal controls, compliance with relevant legislations, stated accounting policies and applicable financial rules and regulations of these organisations.
4. Matters raised in this report are among those which came to my notice during the period ended 31 December 2020. The observations and recommendations arising out of the audits were discussed with Managements of the affected Institutions and comments received, where appropriate, have been incorporated in this report. The report is in three parts:
• Part I provides a summary of the significant audit findings and recommendations;
• Part II provides the significant findings and recommendations according to Sector Ministries; and
• Part III deals with the details of findings and recommendations
Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 20202
PART I SUMMARY OF SIGNIFICANT FINDINGS AND
RECOMMENDATIONS 5. Presented in table 1 is the financial impact of these irregularities according to their nature.
Table 1: Summary of financial irregularities for the period ended 31 December 2020
NO Type of Irregularity % Amount
(GHC) Amount (US$)
6 Stores Irregularities
0.09 11,591,519.21 11,591,519
7 Contract Irregularities
PART I SUMMARY OF SIGNIFICANT FINDINGS AND
RECOMMENDATIONS 5. Presented in table 1 is the financial impact of these irregularities according to their nature.
Table 1: Summary of financial irregularities for the period ended 31 December 2020
NO Type of Irregularity % Amount
(GHC)
Amount
(US$)
Amount
2 Cash Irregularities 14.02 774,120,122.70 178,565,395.67 1,802,692,515
3 Payroll Irregularities 0.07 9,574,765.27 9,574,765
4
Procurement
5 Tax Irregularities 0.23 29,158,475.63 7,500.00 29,201,677
6 Stores Irregularities 0.09 11,591,519.21 11,591,519
7 Contract Irregularities 0.7 86,103,819.66 642,946.67 89,807,321
Sub-total ($€£) 918,285,771.95 647,815.00 464,963.13
Total 100 7,558,425,350.23 5,289,509,703.59 4,576,359.50 3,661,212.68 12,856,172,626
Table 1 shows that, the total irregularities stood at GH¢12,856,172,626 which included US$918,285,771.95 converted into Cedis at the prevailing exchange rate of GH¢5.7602 to the US$1 as at 31 December 2020, €647,815.00 converted into Cedis at the prevailing exchange rate of GH¢7.0643 to the €1 as at 31 December 2020 and £464,963.13 converted into Cedis at the prevailing exchange rate of GH¢7.8742 to £1 as at 31 December 2020.
78%
14%
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Table 1 shows that, the total irregularities stood at GH¢12,856,172,626 which included US$918,285,771.95 converted into Cedis at the prevailing exchange rate of GH¢5.7602 to the US$1 as at 31 December 2020, €647,815.00 converted into Cedis at the prevailing exchange rate of GH¢7.0643 to the €1 as at 31 December 2020 and £464,963.13 converted into Cedis at the prevailing exchange rate of GH¢7.8742 to £1 as at 31 December 2020.
Table 2: Comparative Analysis of Irregularities from 2016-2020 (figures rounded to the nearest cedi) No. Type of
Irregularities 2016 GH¢
2. Cash Irregularities
3. Payroll Irregularities
4. Procurement Irregularities
5. Tax Irregularities
6. Stores Irregularities
7. Contract Irregularities
Total 718,085,208 12,002,880,339 3,007,258,924 5,468,398,431 12,856,172,626
6. The total irregularities figure of GH¢718,085,208 for 2016 increased to GH¢12,002,880,339 in 2017. The irregularities declined by GH¢8,995,621,415 in 2018 to GH¢3,007,258,924. However, the total irregularities increased by 81.8% from the 2018 figure of GH¢3,007,258,924 to GH¢5,468,398,431 in 2019. During the period ending 31 December 2020 the total irregularities recorded a 135% or GH¢7,387,774,195 rise from GH¢5,468,334,006 in 2019 total irregularities figure to GH¢12,856,172,626 in 2020. This was occasioned mainly by a surge of GH¢5,207,442,576 or 107% in outstanding debtors/loans/recoverable component of the total irregularities for the period ending 31 December 2020.
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Outstanding Debts/ Loans Recoverable - GH¢10,067,170,560
7. These irregularities represent trade debtors, staff debtors and outstanding loans. Included in this figure is an amount of GH¢5,487,969,144.11 due from customers for power supplies in respect of Forex Power Sales, Local Power Sales, Mines Power Sales, Other Local Power Sales, Government MDA’s Power Sales, and other Power Related Recoverables as at 31 December 2019. Absence of effective debt collection policies, non-existence of credit controls to recover the debts and Management’s indifferent posture towards loan recovery contributed significantly to these anomalous conditions. Also, improper maintenance of records on debtors, the absence of debtors’ ageing analyses, non-documentation of agreements stipulating the terms and conditions of loans, failure to ensure that loans are repaid and Management’s non-compliance with rules and regulations accounted for these irregularities.
8. I recommended that Management of Public Boards, Corporations and other Statutory Institutions should strictly adhere to rules and regulations with regards to debts management. They should also put in place proper policies for the management of loans and other receivables as well as ensuring that loans and debts are repaid on due dates to avoid or minimise the occurrence of bad debts.
Cash Irregularities - GH¢1,802,692,515
9. Cash irregularities related to the misapplication of funds, non- retirement of imprest, payments not authenticated, payment of Board Allowances to Council Members without Ministerial approval, cash locked up in non-performing investments. Out of the total figure of GH¢1,802,692,515 cash irregularities, GH¢442,730,876.74 represented cash locked up in non-performing investment by SSNIT. These occurred as a result of poor oversight responsibility and non- existent controls. Other contributory factors were finance officers’ failure to properly file and keep records, Management’s failure to ensure the security and safety of vital documents, non-maintenance of returned cheque registers, Management’s inertia in complying with procedures stipulated in the Public Financial Management Act, and poor accounting systems.
10. I therefore urged the Managements of the Public Boards, Corporations and other Statutory Institutions to strengthen
supervisory controls over their finance officers, and ensure that they adhere to the provisions of the Public Financial Management Act, 2016 (Act 921). I also recommended the authentication of all payment vouchers, prompt payment to bank and full retirement of accountable imprest on due dates.
Payroll Irregularities - GH¢9,574,765 11. These lapses were caused by the failure of Management to exercise due diligence, and the laxity of officers in charge of payroll validation in reviewing payment vouchers to ensure salaries were paid to only those who were entitled as well as payroll related irregularities. They were also caused by Management’s failure to notify banks to stop the payment of unearned salaries. The Controller and Accountants- General’s Department also did not promptly delete names of separated staff when notified to do so. In other instances, Management also did not transfer statutory deductions in respect of SSF contribution. Contained in the total irregularity of GH¢9,574,765 is an amount of GH¢4,168,263 attributed to Ghana Railway Company Limited in respect of outstanding 1st and 2nd tier pensions contribution due from Management of Ghana Railway Company Limited to SSNIT and other pension scheme managers.
12. I advised the Management Teams of the affected Institutions to promptly notify the bankers of the separated staff to withhold and pay to Government chest all unearned salaries. I also recommended that officers in charge of payroll should exercise due care in the discharge of their duties as well as ensuring that 1st and 2nd tier contribution for their employees are promptly and regularly transferred to the various pension schemes.
Procurement Irregularities – GH¢846,134,269 13. These irregularities occurred as a result of Managements’ non-compliance with the provisions of the Public Procurement Act 2003, (Act 663). Out of the total irregularities, US$39,000,000.00 (GH¢224,647,800) represented award of contract without following due processes by Management of Bulk Oil Storage and Transportation Company Limited (BOST).
14. I once again recommended that Managements of the various Institutions should undertake procurement transactions strictly in accordance with the provisions of the Public Procurement Act as amended.
Tax Irregularities – GH¢29,201,677
15. The Tax irregularities related to failure to pay statutory tax deductions on due dates, and non-deduction of applicable taxes. They also related to transacting business with non-VAT registered persons or entities. Out of the total tax irregularities of GH¢29,201,677,] an amount of GH¢12,449,542 is attributed to Architectural and Engineering Services Limited (AESL) for unremitted P.A.Y.E and VAT deducted.
16. I recommended that the Finance Officers should strictly adhere to the tax laws to ensure that all tax revenues are promptly collected and paid to the applicable revenue agencies.
Stores Irregularities - GH¢11,591,519
17. These irregularities include non-documentation of store items, lack of awareness of officers assigned to store duties and inadequate supervision. Included in the sum of GH¢11,591,519 is an amount of GH¢11,581,019 worth of electrical materials that were given out on loan to eight (8) beneficiary Companies. These materials were issued out between 2014 and 2018 without any specific terms of agreement.
18. I recommended the strengthening of controls over store management and accounting, and also recommended strict adherence to Rules and Regulations that govern the effectual conduct of public financial business.
Contract Irregularities – GH¢89,807,321
19. These mainly relate to delay in construction projects in the various Public Boards, Corporation and other Statutory Institutions.
20. I therefore urged Managements to strengthen controls over contracts and ensure that funds are available in order to engender speedy completion of earmarked projects.
Audit Opinion
21. The financial statements submitted for validation presented financial information in accordance with applicable statutory provisions, and my office was satisfied in all material respect that the financial statements complied with stated accounting policies of Government and is in accordance with generally accepted accounting
standards and essentially consistent with that of the preceding year.
22. In my opinion all the financial statements presented a true and fair view of the financial positions as at 31 December 2020, and financial performance of the organisations for the period ended 31 December 2020 except the Institute of Local Government Studies and General Legal Council who had a qualified opinion expressed on their financial statements.
Accounts Submission
23. All the audited entities presented their financial statements for audit except National Communications Authority, Bulk Oil Storage and Transportation Company Limited (BOST), Institute for Scientific and Technological Information (INSTI) and Du-Bois Centre who did not submit their financial statements for audit during the time of our reviews and as such my office could not form an opinion on the financial statements of these four institutions. However, in the case of Ghana Technical Training Centre (GTTC) my office could not express opinion on its financial statements because they were submitted late.
Conclusion
24. As part of the processes of good governance, I urged the appointing Authorities to ensure that Board of Directors are constituted promptly for organisations having none. The absence of Governing Boards tends to delay the signing of the financial statements resulting in avoidable delays.
25. The operational results and financial positions of the Public Corporations and other Statutory Institutions during the period under review, could have been healthier if there had been effective supervision of schedule officers.
26. I reiterated my advice to Managements to strengthen their Internal Audit Units to ensure effective and efficient internal control systems.
27. I also recommended that Managements should establish and strengthen the Audit Committees within the organisations in accordance with Sections 86 to 88 of the Public Financial Management Act, 2016 (Act 921) to ensure that audit recommendations are duly implemented.
PART II SUMMARY OF SIGNIFICANT FINDINGS AND
RECOMMENDATIONS MINISTRY OF ENERGY
ELECTRICITY COMPANY OF GHANA
28. ECG lost 2,649.08 GWh which represents 24.30% of power purchased from the power producing companies to system losses. We advised Management to determine losses which are due to technical and commercial challenges so as to deploy measures to reduce those losses.
29. We noted that ECG incurred expenses to the tune of GH¢182,576,235.15 as capacity charge by Cenit Energy for the twelve months in 2018. However, Cenit supplied only 300.00kWh and 2,220,900.00kWh in August and December respectively for the full year. We advised Management to ensure that exit clauses are considered extensively before signing contracts.
30. We noted during our audit that ECG has not established an Audit Committee. The Board Sub-committee on Finance performs oversight responsibilities of Audit Committee function. We advised Management to establish Audit Committee in accordance with the Public Financial Management Act, 2016 (Act 921).
31. We noted that Management procured prepayment meters and conductor 265sq.meters amounting to GH¢59,161,964.56 between 2014 and 2016. However, these items were not issued till the time of our inspection on 8th August 2019. We recommended to Management to ensure that the prepayment meters and conductors are issued out to the users failing which the amount involved should be recovered from the officers who engaged in the procurement.
32. We noted that electrical materials amounting to GH¢11,581,019.21 were given out on loan to eight (8) beneficiary Companies. These materials were issued out between 2014 and 2018 without any specific terms of agreement. We advised Management to pursue for the returns of these materials or the parties concerned should be made to pay for the cost of materials as considered appropriate before the materials become obsolete.
33. We noted during our audit that 17 transformers were damaged
within 2010 and 2013. We were unable to ascertain the basis upon which the transformers with an average useful life of 35 years could be damaged without use. We recommended to Management to safeguard assets procured and ensure that the faulty transformers are repaired or the Procurement Officers and Operations Directorate should be held responsible.
34. We noted during our review of store summary report that total amount of GH¢3,214,526.18 and GH¢1,746,094.89 were classified as stock surplus and shortage respectively. Management should strengthen supervision to safeguard assets. Meanwhile, Management should expedite action to produce the Committee’s report for our review.
Accra West Regions
35. We noted from Accra West Region that the value of materials actually transferred from stores to the dedicated or rechargeable jobs were higher than ECG estimates made to the customers. As a result, ECG made losses amounting to GH¢179,647.23 for materials provided on rechargeable jobs. We advised Management to ensure that the engineers estimate should be on materials only whiles the accounts section does the costing of the materials to avoid recurrence of the loss of materials for dedicated jobs.
36. We noted during our audit that 16 Special Load Tariff (SLT) Companies in the region had not paid their debts amounting to GH¢27,857,498.59. We recommended to Management to expedite action on the legal proceedings to recover the debt. Management is urged to ensure that the Companies do not reconnect the meters secretly.
Strategic Business Unit – Ashanti Region
37. We noted that the value of materials actually transferred from stores to the dedicated or rechargeable jobs were higher than ECG estimates made to the customers. As a result, ECG made losses amounting to GH¢140,084.74 for materials provided on rechargeable jobs. We advised Management to ensure that the engineers estimate should be on materials only whiles the accounts section does the costing of the materials to avoid recurrence of the loss of materials for dedicated jobs.
NORTHERN ELECTRICITY DISTRIBUTION COMPANY (NEDCo)
38. We noted that total collections of GH¢1,743,877.02 lodged at the Tisuugtaaba Community Bank Ltd and GN Bank Ltd were not transferred to GCB Power Sales and Security Deposit accounts at the end of every month in accordance with the policy of Northern Electricity Distribution Company (NEDCo). We recommended that Management should take the necessary steps to recover the locked- up funds without delays.
39. We noted that, 43,884 post-paid customers (CBMS) transferred onto the Prepaid Meters (PPM) have a total outstanding debt of GH¢28,527,939.96 as at 31 December 2019. We recommended that Management should develop an instalment payment plan for the customers and deduct it at source whenever the customers purchase credit at the sales outlets.
40. A review of the Internal Audit report for 2019 disclosed that Mr. Gilbert Buree a principal accounts clerk in Yendi did not lodge into the bank account, cash collection amounting to GH¢302,571.86 as at 30th January 2019. We recommended that Gilbert Bruce should be made to refund the amount of GH¢302,571.86 with interest at the Bank of Ghana prevailing rate.
VOLTA RIVER AUTHORITY
41. Advances and prepayments for goods and services in the sum of GH¢43,301,466.10 were not retired as at 31 December 2019. We recommended that the advances and prepayment for goods and services must be monitored to ensure that they are properly and fully accounted for immediately a task is completed failing which the Principal Spending Officer shall be held liable for any unaccounted advances.
42. A total amount of GH¢131,302.74 was paid by the Authority to 71 Officers as salary advances. This amount remained unrecovered as at 31 December 2019 even though the beneficiaries separated between 2013 and 2017. We recommended that, all outstanding loans and advances should be deducted from the end of service benefits and properly accounted for in the books of accounts failing which the amount should be recovered from the approving officers.
43. Our review of the Authority’s receivables reconciliation and ledgers disclosed a total amount of GH¢5,487,969,144.11 due from customers for power supply as at 31 December 2019. We recommended that, Management of the Authority should intensify its efforts and improve its debt recovery strategies to recover the outstanding receivables.
VOLTA RIVER AUTHORITY HEALTH SERVICES LIMITED
44. A review of the Hospital receivables reconciliation disclosed a total amount of GH¢21,575,271.57 due from customers for various health services rendered as at 31 December 2019. We recommended that Management of the Hospital should intensify its efforts and improve its debt recovery strategies in order to recover the outstanding receivables.
45. A total amount of GH¢244,340.00 out of GH¢367,800.00 paid to Dr Paul Ofori-Atta, a representative of MOTEC-Life UK, on implant and Hospital fees charged from healthcare services were without adequate supporting documents. We recommended that Management should provide us with original invoices from the supplier and acknowledgement of official receipt from MOTEC-LIFE UK.
46. A review of incorporation documents obtained from the Registrar General’s Department revealed that Raymond John Lartey wholly owns Volta River Authority Health Services Limited with 500,000 shares. We recommended that the Board should ensure that the shares are transferred immediately to Volta River Authority.
47. Our audit disclosed that, the Hospital has no Service Level Agreement with Volta River Authority. We recommended that Management should ensure that a Service Level Agreement is signed with the Authority.
48. Contrary to Regulation 102 of the Public Financial Management Regulations, 2019 (L.I. 2378), advances and prepayments of the Hospital for goods and services totalling GH¢343,261.20 was not retired as at 31 December 2019. We recommended that the unretired advances should be adjusted in the personal name of the Principal Spending Officer or the holder of the imprest or the ultimate recipient of the imprest as appropriate and recovered.
BULK OIL STORAGE AND TRANSPORTATION COMPANY LIMITED (BOST)
49. Management of BOST contracted America Tank and Vessel Inc. (AT&V) in July 2006 to supply storage tanks and pipelines and ship same to Ghana. As at October 2020 a total sum of US$5,129,170.05 had been spent on the project. However, the storage tanks were supplied and installed leaving the Pipelines yet to be shipped to Ghana. We recommended that Management justify the delays in bringing the pipeline to Ghana for installation and take immediate action to prevent further delays.
50. Management approved the total payment of GH¢30,442,551.00 in excess of the amount budgeted for. We recommended to Management to justify the misapplication and further advised to desist from such act and operate within approved budgets.
51. We noted that Management used Bulk Road Vehicles (BRVs) in conveying products from Akosombo to Buipe instead of making use of its Barges, which could have saved the company a total amount of GH¢393,253.24. We urged Management to provide justification for the non-usage of the barges.
52. Management was unable to collect debt amounting to GH¢446,845.00 owed by four Bulk Distribution Companies (BDCs). We urged Management to ensure that all debts due the Company are promptly collected.
53. We noted that Management awarded a contract amounting to US$39,000,000.00 to Rolider Company in June 2015 for the construction of its Head office complex prior to approval by PPA for a Restricted Tendering in December, 2015. We recommended to Management to provide the supporting documentations and various approval letters from the appropriate approving authorities and further follow the procedures as enshrined in Section 90 of Act 663 as amended.
54. Management awarded contract amounting to US$5,129,170.05 through Restrictive Tendering method but did not seek approval from the Central Tender Review Committee (CTRC). We recommended that Management should regularise the transactions by seeking retrospective approval from the CTRC, failing which sanctions shall be applied.
55. We noted that, procurement activities totalling GH¢242,496.45 were not part of the approved and revised procurement plan of BOST. We recommended to Management to regularise the transactions by seeking retrospective approval from the Entity Tender Committee.
56. Management paid twenty-four (24) staff who were on secondment for more than a year a total amount of GH¢6,611,240.97 contrary to the Collective Bargaining Agreement of BOST. We entreated Management to justify the payment. Also, affected officers should immediately be recalled or cease payment of their salaries.
57. We noted that Management paid an amount of GH¢151,987.00 covering a period of 41 months. This payment was in respect of half salary paid to an interdicted staff. We recommended to Management to take steps in bringing the matter to a close to avoid additional cost to the Company.
58. Management seconded ten staff members to unrelated institutions contrary to the Collective Bargaining Agreement of BOST. We recommended to Management to justify their action and immediately recall the staff concerned or cease payment of their salaries.
59. We noted that two contract works with a total contract sum of GH¢6,582,731.55 were abandoned. Management should make funds available to the contractors, to enable them complete the projects.
60. Management did not occupy an administrative block completed and handed over accordingly by the contractor at a contract sum of GH¢1,785,419.60. We advised Management to immediately put the facility to use to avert any unforeseen circumstances.
61. We noted that, construction works on the Head Office Complex and seven other contracts with a total contract sum of GH¢43,454,345.00 were unduly delayed. We recommended to Management to ensure that funds and other needed resources are committed towards the completion of the delayed projects.
62. We noted that variation of GH¢1,291,613.00 on the Bolgatanga BRV car park was not approved by the Entity Tender Committee (ETC) and without formal contract amendments or addendum. We urged the Procurement Department and the Works Unit to seek retrospective approval from the ETC.
63. Management did not enter into contract agreement with 3 service providers despite their engagement with the company for the supply of services to the tune of GH¢1,207,991.62 and US$642,946.67. We recommended that Management should formalise the contract with these service providers and make available the contract documents for our review.
64. Management could not readily make available three Title Deeds covering BOST landed properties. We recommended that Management should obtain the title deeds for the affected landed properties.
65. We noted from our visit to Savelugu that ‘test boxes’ installed on the Buipe-Bolgatanga Petroleum product pipelines (B2P3) were said to be stolen or removed. We urged Management to resource the depot to enable them clear the ROW and replace the missing heads and the stolen test boxes.
66. Our visit and review of reports indicated that Savelugu depot has not transferred product as a booster station from November 2016 till date. As a result, PMS Products had been held in the pipelines for the period. We recommended to Management to make the Bolgatanga Depot operational to enable the product to be pushed.
67. We noted that barges 1 and 2 at Akosombo depot have been decommissioned for maintenance since June 2013. Management is encouraged to pursue the maintenance of the two (2) barges to further enhance the strategic agenda of products reserves countrywide.
68. A visit to the Akosombo depot disclosed that, the facility did not have discharge meters installed to efficiently measure the products discharged for onward distribution to Buipe depot. We recommended to Management to consider the installation of the meters at the discharge point to receive and measure products efficiently.
69. Our visit to six depots disclosed that no security surveillance unit was available whilst CCTV Cameras installed in some depots were not functioning. Management should review and factor the setting up of the security surveillance unit at the depots to enhance the overall security of the facilities.
70. We noted that all depots rely on manual process in measuring stock levels in the respective tanks instead of automating the gauging system. We recommended that Management should consider the
acquisition and automation of the Tank Gauging System with related accessories as part of the depot upgrade to facilitate efficient stocktaking.
71. We noted that all guest houses belonging to BOST need maintenance works. We advised Management to conduct structural integrity test on the buildings and take action on the outcome to make them habitable.
72. We noted during our visit to Mami Water depot that the facility has not been operational since June 2010 due to lack of maintenance works. We urged Management to expedite action on the maintenance works in order for the depot to be operational.
73. We noted that, the Board of Governors did not approve six essential policy documents for the Company. We recommended to Management to impress on the Board to approve the policy documents for its immediate implementation.
74. Our interactions with the Head of ICT disclosed that the BOST has not registered with the Data Protection Commission as a Data controller. We urged Management to as a matter of urgency take the necessary steps to register with the Data Protection Commission as a data controller and consequently appoint a data supervisor to ensure data is protected from unauthorized use.
BUI POWER AUTHORITY
75. We noted that, monthly invoices to ECG are not settled within the required sixty (60) days resulting in a relatively huge outstanding debt of US$386,878,949.46 as at 31 December 2019. Management should ensure that previous and subsequent debt are collected on time in order to improve the liquidity position of the Authority to enable it carry out its operations effectively.
76. We noted that GRIDCo is indebted to BPA to the tune of US$41,010,518.71 from 2013 to the time of the audit in 2019 and BPA allegedly indebted to GRIDCo in the sum of GH¢5,658,577.58 but the Authority has since 2013 not disclosed this indebtedness in the accounts. Management of BPA should also make stringent effort to ensure early ruling on this matter by the PURC.
77. We noted that the Authority had failed to recognise a provision for the likely decommissioning of the Dam in future. The
authority should get a written representation from government on its commitment to fund future decommissioning of the dam should the need arise.
GHANA NATIONAL PETROLEUM CORPORATION
78. We noted that charges totalling US$815,000 were on the Corporation’s NIB account for which the Corporation was unable to determine the basis for them. We recommended to the Corporation to obtain adequate explanation and supporting details from Bank of Ghana for the charges.
79. We identified significant receivables due from Government of Ghana and other Government related Agencies, with no evidence of a repayment plan. We recommended to Management to intensify their efforts in collecting these overdue balances.
80. We noted during our review that although GNPC recorded an incidence of cyber-attack during the prior year (2017), no vulnerability and penetration test was performed during the 2018 financial year. We recommended that management should ensure continuous performance of vulnerability and penetration tests to identify possible loopholes in the internal network security and beef up the network security accordingly.
81. A number of GNPC projects totalling US$9,552,178 and GH¢976,673 appear to have been stalled, but with little progress over time. We recommended that Management should consider the cash flow position and ensure that resources are available to complete the projects.
Procurement Issues 2015-2018
82. Management of Ghana National Petroleum Corporation (GNPC) in contrast of Article 181(5) of the 1992 Constitution signed and awarded five (5) international business contracts totalling US$34,165,235.15 and £464,963.13. to five foreign suppliers or contractors using Single- Source method in four of those transaction and in one instance used the Restricted Tendering method without seeking for the necessary Parliamentary approvals. We recommended that Management of GNPC should be sanctioned in accordance with Section 92 of the Public Procurement Act, 2003 (Act 663) as amended for breaching the Public Procurement Law.
83. Contrary to the Section 42(1b) of the Public Procurement Act, 2003 (Act 663) as amended we noted that the Ghana National Petroleum Corporation (GNPC) used the request for quotation (RFQ) method in procurements of goods with contract values that exceeded the threshold for RFQ. We urged Management to always observe the tenets of the Public Procurement Law. Meanwhile the officials who sanctioned the transactions (the Chief executive, Head of Finance and the Head of Procurement) should be sanctioned in accordance with Section 92 of Act 663 as amended.
84. We noted that GNPC in May, 2015 procured Desktop Computers, Laptop Computers, Geo-Workstations, UPS, and Monitors for Workstations from Perfect Business Systems through Single Source arrangement without obtaining the requisite approvals from the Board of the Public Procurement Authority and that of the Ministerial Tender Review Board (MTRB). We recommended for the appropriate sanctions in accordance with Section 92 of the Public Procurement Act, 2003 (Act 663) as amended to be meted to the Management of GNPC for breach of the procurement law.
85. In disregard for Clause 2 & 3 of Article 187 of the 1992 Constitution as well as Section 33 (1) of the Audit Service Act, 2000 (Act 584), our request to review some procurement related records and documents were not met by Management of GNPC. We advised Management to retrieve the document involved and forward them for our audit review. Failure of which, sanctions should be invoked against Management in accordance with Section 98 of the PFM Act 2016, for financial indiscipline.
NATIONAL PETROLEUM AUTHORITY – 2019
86. We noted that the Governing Board approved a payment of Ten million Ghana Cedis (GH¢10,000,000.00) to the Government without any document from the Minister approving a dividend policy upon which the Board made the provision. We recommended that the Authority should ensure compliance with the Regulations of L.I. 2378 whiles seeking approval from the Ministry of Finance and or Parliament for the retention of funds.
UNIFIED PETROLEUM PRICE FUND
87. We noted that receivables from Oil Marketing Companies and Liquified Petroleum Gas Marketing Companies totalling GH¢14,702,905.29 were outstanding in the books for more than 120 days instead of 10 days provided in the Policy of the Fund. We recommended that Management should ensure the timely vetting of monthly returns within 15 days as per the policy. Management should ensure that payments are received from OMCs within 10 days as per the credit policy.
PUBLIC UTILITIES REGULATORY COMMISSION
88. The PURC Act, 2010 (Act 800), as amended, stipulates percentages of levies to be paid to the Commission by Ghana Grid Company Limited (GRIDCo) and Ghana National Gas Company (GNGC). We noted during our audit that the recovery rates of these levies continue to deteriorate over the three-year period from 2016. We recommended to Management to continue to strengthen its consultative arrangements with GRIDCo and GNGC.
89. We noted that, Funds earmarked for specific activities and programs thus Pro-Poor Water, Energy Commission and Rural Electrification were not correctly allocated as prescribe by the PURC Act, 2010 (Act 800). We recommended to Management to evaluate current terms of allocating funds received aimed at ensuring a much equitable modality for the consideration and approval of the Commission’s Board.
90. Management failed to secure Lands allocated to the Commission in Kumasi, and Takoradi by the Regional Coordinating Councils in contravention of Section 52 of The Public Financial Management Act, 2016 (Act 921). We recommended to Management to liaise with the various Regional Security Councils to secure the lands and to obtain the required legal documents.
MINISTRY OF FINANCE VENTURE CAPITAL TRUST FUND
91. African University College of Communication Limited failed to make payment on the agreed amount of GH¢4.7million as a buy- out of Activity Venture Capital Trust Fund’s 30% stake in AUCC, denying the Trust Fund its share of GH¢1,410,000.00 (40%) as per the agreement on the distribution of returns amongst the shareholders of Activity Venture Finance Company (AVCF). We entreated Management of the Trust Fund to pursue AVFC to ensure the recovery of GH¢1,410,000.00 (40%) of their share in AUCC.
92. The Trust Fund which became operational in 2006 is unable to effectively execute its mandate as the driving force of the private sector of the Ghanaian economy since the National Reconstruction Levy Act, 2001 (Act 597), its primary source of funding, was repealed in early 2007. Since the abolishment of the National Reconstruction Levy Act, the Trust Fund has had to rely on the Ministry of Finance for irregular and inadequate funding till date. We urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund. Furthermore, in the interim, the Board of Trustees together with Management should push for the release of the budgetary allocation reserved for the Trust Fund.
93. We noted that Ministry of Finance is unable to meet the Trust Fund’s annual operational budget since the abolishing of the National Reconstruction Levy Act, 2001 (Act 597). We urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund.
SECURITIES AND EXCHANGE COMMISSION
94. Two former staff of the Commission who resigned in 2015 and 2016 financial years respectively had an outstanding loan of GH¢15,788.16 as at the end of the year 2019. We recommended to Management to ensure that the outstanding balance is collected or considering the circumstances of seeking approval from Parliament for the write-off through the Board.
NATIONAL LOTTERIES AUTHORITY
95. We noted that there were several Law suits pending at the various Law Courts with most demanding various sums of monies from the Authority. The Authority should endeavour to avoid such law suits in the future. Meanwhile efforts should be made to mitigate the effects of the present position with respect to the law suits.
BANK OF GHANA
96. Bank of Ghana subordinated loan receivable from ADB of GH¢150 million assigned to Financial Investment Trust (FIT) and expensed in the books of the Bank. The Bank interest in FIT’s was also not reported in FIT’s financial statements for the year ended 31 December 2018. Again, the Trust has not been consolidated by Bank of Ghana since its results are considered immaterial to the Bank. We recommended to Management to ensure that clear reporting lines are established for FIT to the Bank. The operations of FIT should be monitored and its results consolidated with those of the Bank when required.
97. Three (3) letters of credit (LC’s) established on behalf of Ghana Railway Development Authority in 2014 and Ministry of Transport and Communication has outstanding as at 31 December 2019 US$7,043,340 and US$21,354,000 respectively. We recommended that, Management should follow up with the relevant agencies to settle the outstanding amounts.
98. We noted that there were no schedules detailing outstanding transactions for other payables and accruals balances, and cheques making up Bankers clearing balance of GH¢37,409,166. We recommended to Management to assign the responsibility for reconciling ledger accounts to specific individual. The process should be independently monitored to ensure compliance.
GHANA PUBLISHING COMPANY LTD.
99. Management received monthly supply of fuel at varying sums to the tune of GH¢215,281 for the year under review in addition to the payment of commuting (fuel) allowance through the payroll system. We recommended to Management to provide the basis for this expenditure and regularize it through proper approval by the appropriate approving authorities, failing which the Ghana Publishing
should cease allocating such fuel and Management staff be made to refund the amount of GH¢215,281.
100. The Company contracted five service providers for the provision of various services without selecting them though a procurement method to ensure fair competition and achievement of value for money. We recommended to Management to strictly comply with the Public Procurement Act, 2003 (Act 663) as amended in its procurement activities to avoid sanctions.
MINISTRY OF EDUCATION GHANA ACADEMY OF ARTS & SCIENCES
101. We noted that Royal MAK Hotel and Catering Services was indebted to the Academy to the tune of GH¢1,056,652.73 for the use of the Academy’s building facility. We recommended that the Principal Spending Officer should engage the Royal MAK Hotel and Catering Services to put up a payment plan to recover the debt and possibly to reach a consensus on the actual needs of the Hotelier so as to free the part of the facility that they may not need.
102. Management of the Academy did not take any remedial action when it came to their notice that the newly built office complex had various defects. We urged Management as a matter of urgency to rectify the defects and our office notified.
103. We noted that an officer who retired on 25th December 2016 received one month of an unearned salary of GH¢10,008.43. We recommended that Management should recover the amount and pay same to Government chest and obtain a Treasury Receipt to support the payment.
104. We noted that one driver, Emmanuel Ennin without authority moved one of the official vehicles and got involved in an accident. We urged Management to take steps to pursue Mr. Emmanuel Ennin for the repair of the vehicle, failure of which Management will be held liable.
NATIONAL SERVICE SCHEME, 2018-2019
105. We noted that the accounts department could not produce five (5) booklets of General Counterfoil Receipt Books (GCR) issued to Cashiers and Schedule Officers at the Farms and offices for our audit. We recommended that the Head of Accounts and the Principal Spending Officer retrieve the GCR from the Officers failing which, Section 96 (1) (d) of the Public Financial Management Act, 2016 (Act 921) shall apply.
106. Our examination of payment vouchers for the period under review disclosed that payment vouchers totalling GH¢69,510.00 paid to staff members for various activities were without signed claim sheets as acknowledgement of receipt by the payees. We admonished the Director of Finance to provide claim sheets signed by the payees
as proof of their acknowledgement of receipt of the payments made to them for our verification, failing which the above stated amount will be recovered from the authorizing and approving officers.
107. Our review of the Scheme’s Property Register disclosed that it has no legal title to the bungalows and parcel of lands at Airport Residential Area, Ashongmang Estate, Adjiriganor, Haatso, Bortey Mann, Adenta SSNIT Flat Medie and Papao, Haatso (West Legon) several years after their acquisition. We urged Management to take necessary steps to ensure that the ownership of these Bungalows and Lands are secured.
UNIVERSITY OF CAPE COAST-2019 108. Contrary to Section 7 of the Public Financial Management Act, 2016 (Act 921) the University could not access its funds of GH¢9,123,532.57 invested with First Banc and Gold Coast Fund Management whose licenses were revoked by the Securities and Exchange Commission (SEC). We recommended that Management should pursue recovery of their investments from the receivers of First Banc and Gold Coast Fund Management through the Security and Exchange Commission.
109. We noted that 14 projects valued at GH¢78,928,271.14 fully funded from Internally Generated Fund have been delayed for periods ranging between 2 and 8 years. Seven (7) out of the projects were between the completion’s stages of 87% and 99%. We recommended that the Management of the University should ensure early completion of the projects to save the projects from further deterioration.
110. The University did not have legal title to 5 of its properties valued at GH¢8,580,000 belonging to the School of Medical Sciences. Though the properties are occupied by the School of Medical Sciences and form part of the University assets in the 2019 financial statements. We recommended Management take immediate steps to secure title deeds for the affected properties in order to avoid losses that may arise as a result of disputes.
111. Management of the University did provide the tenancy agreement between the University of Cape Coast and Ghana Hostels Limited for the occupancy of 5.009 acres of the University’s land. We recommended to Management to provide any Memorandum of Understanding or Rent Agreement between the University and Ghana Hostel Limited for audit review.
UNIVERSITY OF GHANA College of Basic & Applied Sciences (CBAS)
112. Our physical verification of teaching and learning equipment at the College’s laboratory showed that some of the equipment were not functioning and others are in obsolete. We recommended that Management should secure funds to ensure timely repairs and replacement of non-functioning equipment to enhance teaching and learning
University of Ghana Hospital
113. We noted that the University Hospital did not ensure and enforce collection of debt amounting to GH¢1,164,599.82 owed by various entities who benefited from medical services of the Facility. We recommended that Management should strengthen its oversight functions on medical services rendered and timely enforce collection of all outstanding receivables at an agreed default interest rate to improve the Hospital’s cash flow.
114. We noted that the UG Hospital did not have a comprehensive document such as administrative, procurement and human resource manuals to provide clear policies and procedures to promote efficiency and overall effectiveness in the general administration and management of the Hospital. We recommended that Management should establish and document internal policies and procedures, in alignment with the general public legal framework of providing quality health care service delivery, to guide the general management and administration of the Hospital.
College of Health Sciences
115. We noted that the College Administration and School of Medicine and Dentistry (SMD) invested a total amount of GH¢456,199.08 in Liberty Asset which, is not a commercial bank and does not meet any minimum capital requirements of Bank of Ghana. We recommended that Management should strengthen its investment oversight activities on treasury management and ensure strict adherence to the policy instruction on investments. Again, Management should take steps to redeem its investment with Liberty Asset.
Noguchi Memorial Institute of Medical Research
116. We noted that an amount of GH¢1,152,819.00 was advanced to various Officers at NMIMR upon request to undertake a number of activities remained unretired as at the end of 2018. We therefore recommended that, Management should establish clear timelines for the retirement of imprest and failure should warrant the withholding of the imprest amount from the affected staffs’ salary. Again, Management should ensure that the outstanding amount of GH¢1,152,819.00 are recovered from the respective officers.
117. We noted that NMIMR did not have an International Organisation for Standardisation (ISO) accreditation to be able to perform laboratory studies in conducting research into communicable and non- communicable diseases and provide high end laboratory diagnostic, monitoring and surveillance services in support of national public health public relations. Hence, NMIMR continuous to rely on services of other vendors to perform diagnostic and laboratory studies. We recommended that Management should ensure that NMIMR take steps to obtain the requisite ISO accreditation and engage a diagnostic expert to provide such services internally.
118. We noted that NMIMR did not have a funding strategy or dedicated research reserve to provide underlying financial resources to undertake research activities for effective structural transformation of our socio-economic environment except over reliance on the benevolence from development partners. We recommended that Management should establish a research fund to provide sustainable dedicated resources towards research activities.
Accra City Campus
119. We noted that a total amount of GH¢182,176.39 was paid as monthly responsibility allowance to various categories of staff without approval in addition to their regular responsibility paid via their respective pay slips. Also, a total amount of GH¢119,370.77 was paid as 13th month salary (or annual bonus) to compensate staff inconvenience during the same period. We recommended that Management should stop the payment of the monthly responsibility allowance and take the necessary steps to obtain approval from the College Provost and Vice Chancellor or University Council failing which the total amount of GH¢182,176.39 shall be recovered from the affected beneficiaries.
120. We noted that UG (on behalf of Accra City Campus) awarded a contract to Wilkado Construction Limited on 15 August, 2014, at the sum of GH¢6,284,703.19, to complete the construction of administration block and lecture theatre at Accra City Campus within twenty-four (24) months. However, works have not been completed despite the fact that UG procured building materials at the cost of GH¢188,641.72 to assist the Contractor (Wilkado Construction Limited) to complete the Lecture Theatre. We recommended that Management should take steps to review the contract terms and conditions as well as take steps to request Wilkado Construction Limited to submit an active performance bond to complete the outstanding works.
Physical Development and Municipal Services Directorate
121. The Articles of Agreement between the University and Messrs Fuldako Furniture Company Limited provided for the supply and installation of science laboratory hardware at a contract sum of GH¢777,791.50 within eight (8) weeks after contract award on the 8 August, 2016. However, we noted that as at November 2019, the installation works have not been completed despite continuous reminder of the deliverable timelines. We recommended that Management should take steps to review the contract terms and conditions as well as take steps to request Messrs Fuldako Furniture Company Limited to complete the outstanding works.
UNIVERSITY OF PROFESSIONAL STUDIES (UPSA) Financial Management Issues
122. We noted that an amount of GH¢280,338.80 spent from the Internally Generated Fund were not supported with the relevant documentations like receipts, invoices, signed claim sheets, reports and other expenditure related documents to authenticate the transactions. We admonished the Director of Finance to ensure that the unsupported payment vouchers are properly acquitted, failing which the amounts involved should be refunded by the authorising and paying officers.
UNIVERSITY OF EDUCATION, WINNEBA
123. We noted that 13 bank accounts at Winneba, Kumasi and Mampong campuses have been inactive for past couple of years and will be treated as Dormant by the Banks. We recommended to Management to either close these bank accounts or ensure the active use of them as soon as possible.
124. We noted that the University had invested a total of GH¢1,876,960.75 with Akyempim Rural Bank which were not rolled over nor repaid on maturity date which fell on 30th September, 2016. We recommended that every effort should be made to retrieve all monies invested in Akyempim Rural Bank together with the accumulated interest.
UNIVERSITY FOR DEVELOPMENT STUDIES
125. We noted that Dr. Joshua Caleb Dagadu, a former Chief ICT Assistant of the University, who signed a bond with the University to return after completion of a course abroad sponsored by the University has refused return to the University. We recommended that the University takes the necessary action to ensure that an amount of GH¢78,723.26 representing the salaries he earned during the study period is recovered from him.
GHANA EDUCATION TRUST FUND (GETFund)
126. An amount of GH¢10,000,000 which was invested with SIC- FSL with expected date of maturity as 22 November 2018 has still not been recovered in contravention of Regulation 51 of the Public Financial Management Regulations, 2019, (L.I. 2378). We advised Management to pursue diligently the agreed payment schedule and to engage SIC-FSL constructively to ensure timely repayment.
MINISTRY OF HEALTH FOOD AND DRUGS AUTHORITY
127. We noted that, six former staff of the Authority who became separated by way of resignation and retirement in 2018 and 2019 were paid salaries, leading to an unearned salary of GH¢32,840.35. We recommended that Management should recover the total amount of GH¢24,451.86 in 2018 and GH¢8,299.35 in 2019 pay same to Government chest and obtain a Treasury Receipt to support the payment and our office notified for verification, failing which the authorising officer may be made to pay the total sum of GH¢32,840.35 back to chest.
MINISTRY OF LANDS AND NATURAL RESOURCES LANDS COMMISSION (CONSOLIDATED)
Survey and Mapping Division
128. We noted that the Division paid 4 separated staff an unearned salary of GH¢20,673.70. We recommended that Management should recover the amount from the separated staff and our office notified for verification 30 days upon the receipt of this Management Letter.
129. We noted that Survey and Mapping Division established and run a school (Ghana School of Survey and Mapping) for training of surveyors without any legal frame work or regulations. We recommended that effort should be made to regularize the existence of the school immediately for its aims and objectives to be achieved.
130. Our audit review disclosed that, the accreditation given to the Ghana School of Survey and Mapping by the National Accreditation Board to run its programmes has expired since 2015. The school continued to run its programme as usual without renewal of the programme’s accreditation. We recommended that efforts should be made to renew the accreditation of the school. This will also help to avoid any penalty that may be imposed on the school by National Accreditation Board.
SONGOR SALT PROJECT
131. We noted that contrary to Regulation 15(1) of the Financial Administration Regulations, 2004, (L.I. 1802) that cash received from customers were not lodged in designated bank accounts of the Project within twenty-four (24) hours but was instead used to finance operational activities of the Project. We advised Management to strictly comply with the above legislation as this will provide an audit trail for funds received and help avoid misapplication of such funds.
132. We noted Management paid a total amount of GH¢127,500 to IMC members as fuel and lunch allowances for their monthly meetings but failed to deduct PAYE taxes. We advised Management to ensure all allowances are consolidated and the appropriate PAYE taxes should be withheld and paid to GRA as stipulated by Act 896.
FORESTRY COMMISSION
133. Contrary to Section 91(1) of the Public Financial Management Act, 2016 (Act 921), the Commission has not been able to recover an over aged debt balance of GH¢6,116,037.54. We recommended to Management to use legal means in retrieving monies owe them to boost the Commission’s liquidity.
134. A total imprest of GH¢53,080.00 granted to staff had not be accounted for as at the time of audit. The lapse had occurred due to the weakness in internal control procedures by Management. We recommended that staff should be made to retire the imprest failing which the amount should be adjusted to their personal advance accounts.
MINISTRY OF FOOD AND AGRICULTURE GHANA COCOA BOARD
Head Office
135. Management of the Board did not establish a contributory insurance scheme for cocoa, coffee and shea nuts farmers as stipulated in the Section 26 of the Ghana Cocoa Board (Amendment) Law, 1991 (P.N.D.C.L 265). We urged Management to engage all the stakeholders, to ensure that the Scheme is established as mandated by the Law in order to provide pension security for these farmers.
136. Our analysis of the last Six (6) years Income and Expenditure statements of the Board indicated that Management did not transfer part of its profit into the consolidated fund as prescribed by the (P.N.D.C.L 265). We recommended that Management should put in measures to reduce cost in order to earn profits at the end of its financial year, in order to make payment into the consolidated fund.
137. Management did not transfer GH¢2.5 million to a Depreciation Reserve Account with a commercial bank as mandated by the Section 28 of Ghana Cocoa Board (Amendment) Law, 1991 (P.N.D.C.L 265). We urged Management to create the Depreciation Reserve Account as mandated by the Law to ensure that the Boards’ expenditure on fixed assets and other equipment is spent within the Fund Accounts.
138. Management of the Board could not provide supporting documents for a total amount of GH¢3,561,358.19 recorded in the books as liabilities (Loans and Grants). We recommended to Management to provide the supporting documents such as the Loan agreements, Memorandum of Understanding between COCOBOD and Ministry of Finance on all the grants a for our review.
139. The Board of Directors did not seek Parliamentary approval to write-off GH¢23.96 million being the value of Expired Chemicals and Fertilizers from the books of COCOBOD. We urged Management to seek retrospective Parliamentary approval for the write off failing which the value shall be recovered from the Board of Directors in accordance with Section 18(b) of the Audit Service Act, 2000 (Act 584).
140. As at 30th September, 2019, a total amount of GH¢1.29 million stood in the records of the Board as balances of advances made to 17 Licence Buying Companies (LBCs) for purchase of Jute Sacks. These
balances were in the books of the Board prior to the 2016/2017 financial year. We recommended that the Managers of these LBCs should be located and the amount recovered from them to avoid loss of funds.
141. The Fidelity bank reconciliation statements for the 2018/2019 financial year for Farmers Scholarship Trust showed double payments to fifteen (15) schools amounting to GH¢235,623.20 as at 30 September 2019. We recommended to Management as a matter of urgency to recover the amounts from the various schools.
142. The Board delayed the monthly Tier 1 contribution payment to Social Security and National Insurance Trust (SSNIT) resulting in accumulated penalty on unpaid and delayed SSF contributions of Gh¢3.74 million as at October 2019. We recommended that Management should ensure prompt payment of SSNIT contributions in accordance with Act 766 to avoid further penalty charges.
143. The Board through court judgement lost GH¢2.27 million in respect of interest and cost charges for delayed payment of contract sums. We urged Management to exercise due diligence and follow the required procedures in the discharge of their contractual obligations to avoid future losses.
144. Two officers sued COCOBOD for unlawful dismissal as they were alleged to have extorted funds from farmers for the distribution of free fertilizers. Our further review also indicates that eleven (11) other officers also sued the Board for wrongful dismissal which were pending in court. We recommended to Management to seek legal advice from the Legal Service Unit of the Board to ensure that due diligence and required procedures are followed before dismissing officers.
145. A total of GH¢998,255.14 accountable imprest granted to 34 officers to undertake various activities was not accounted for by the officers at the end of the financial year. We recommended that the outstanding amount should be accounted for by the affected officers, failing which the amount should be adjusted to a personal advance account in their names.
146. Twenty-four (24) Companies who were granted seed funds to purchase cocoa failed to repay a total of GH¢97.0 million to the Board. We urged Management to recover the amount from the banks
that issued the guarantees for the affected Companies, failing which the approving and authorising officers should be made to refund the amount.
147. Management employed 28 staff to Manager and Director grades between January 2014 and December 2017 without the approval of the Board of Directors. This contradicts Section 8.4 of the Cocoa Board Policy. We urged Management to desist from this practice in all future engagements. We further recommended that Management should seek retrospective approval from the Board of Directors to rectify the anomaly.
Cocoa Health and Extension Division (CHED)
148. Management granted imprest amounting to GH¢349,635.73 to 28 officers to undertake various activities, however the total imprest granted remained unaccounted for as at 30 September 2019. We recommended that the outstanding amount should be accounted for by the affected officers, failing which the amount should be adjusted to a personal advance account in their names.
Seed Production Division (SPD)
149. Three thousand and thirty-eight (3,038) unit of chemicals allocated to three SPD Cocoa Stations for 2018/2019 season had expired and bloated. We recommended that a Board of Survey should be convened without delay to dispose of the items to avoid explosion and free up space for the storage of other items.
Cocoa Research Institute of Ghana (CRIG)
150. Investments totalling GH¢7.5 million being Provident and Rent Funds invested with GN bank have been locked up. We recommended that Management should liaise with the financial house to retrieve the monies, failure of which, the issue should be referred to the legal department for further action.
151. We noted that ten residential staff quarters project being undertaking by Cocoa Board have been abandoned since 2011 due to non-availability of the contract documents for effective monitoring. We urged Management to liaise with Head Office to get the team all the documents covering the contracts for our scrutiny.
152. We noted that Bungalow No. 13 renovated by Ghana Cocoa
Board and handed over to the Institute have various defects including; faulty door locks, leakage in the sewage system, unpainted areas and improperly fixed doors. Management was urged to recall the contractor to site to rectify the defect, failing which the retention money should not be paid to the contractor.
Cocoa Clinic – Accra
153. Twenty-one (21) officers of the Clinic did not retire a total advance of GH¢114,115.50 granted them to undertake various activities. We urged Management to ensure that the amount is adjusted to the personal advance accounts in the officers’ names in accordance with the Public Financial Management Regulations, 2019 (L.I. 2378).
154. Contrary to Section 91 of Public financial Management Act, 2016 (Act 921), Management did not collect a total of GH¢8.7 million owed by 159 Corporate clients in respect of Health Care Services rendered to them. We recommended that Management should put in place stringent effort to recover the funds.
Regional – Kumasi
155. We noted that 20 tenants occupying Cocoa Board’s properties owed a total of GH¢354,709.26. Contrary to the Section 91 of Public Financial Management Act, 2016 (Act 921). We urged Management to intensify its effort to recover the debts.
IRRIGATION COMPANY OF UPPER REGION LIMITED (ICOUR)
156. We noted that out of the 3,340 hectares of irrigable land at both Tono and Vea project sites only 15.29% representing 509.30 hectares was utilized by farmers for the 2019/2020 dry season with the remaining 2,830.70 hectares left unutilized. We urged Management to liaise with the Ministry of Agriculture to obtain adequate funds to rehabilitate the Vea project site and that, adequate provisions should be made to maintain the facilities.
157. We noted that even though the Company has maps for both the Tono and Vea Schemes they have not physically demarcated the areas to protect the lands earmarked for the projects and to prevent encroachment. We recommended to Management to engage the relevant state authorities to demarcate these areas.
NATIONAL FOOD BUFFER STOCK COMPANY LIMITED(NAFCO)
158. We noted that 1,670 bags of rice purchased during 2016 financial year valued at GH¢149,115 was not accounted for in the stock report of that year and 3,231 bags of rice in stock valued at GH¢242,325 got damaged in 2017 due to a heavy downpour. We recommended that the Storekeeper should justify the reason for non-inclusion of the 1670 bags of rice in the stock report or refund the related amount of GH¢149,115. Management should also seek appropriate approval for the disposal of the unwholesome rice.
159. We noted that NAFCO did not apply the 7.5% tax rate on DMT Collateral Services expenses of GH¢135,000 incurred during the period, leading to a loss of tax amount of GH¢7,215.00. We recommended that management should review all payments made and compute WHT at 7.5% and effect payment of the difference to the GRA.
NATIONAL FOOD BUFFER STOCK COMPANY LIMITED(NAFCO)
160. We noted that a total amount of GH¢482,360.00 for various expenses incurred were without adequate supporting documents, like receipts, signed sheets etc to account for them. Management should obtain receipts, signed sheets and other relevant documentation from the payees as an evidence of executing the activities to account for the expenditures.
161. Management contracted a consultant for warehouse renovation works without obtaining other quotations to ensure fair competition. Management also advanced an amount of GH¢150,000 to the consultants for renovation of warehouses (Yendi and Tamale) instead of the actual cost of the renovation of GH¢15,000 without any report to justify the disbursement of the GH¢150,000. We recommended that Management should ensure that procurement procedures are duly followed by obtaining a minimum of three quotations for new services to be obtained from consultants. Management should also provide the consultancy report justifying the disbursement of GH¢150,000 advance granted to the consultant or recover the amount from him.
162. Management procured white maize and other supplies totalling GH¢12,347,402.97 from 43 unregistered and unlicensed Companies,
leading to loss of registration and license fees of GH¢64,500.00. We recommended that Management should collect the registration and license fees of not less than GH¢64,500.00 from the 43 entities and update the list of suppliers accordingly.
163. Operational advances amounting to GH¢16,980.00 which were brought forward from 2016 and an advance of GH¢2,000 granted to staff in February 2016 had not been retired and refunded as at the end of 2017 and as at the date of our review in August 2019. Management should implement measures to ensure that advances not accounted for in a timely manner are recovered from benefits/ salaries of defaulting employees.
NATIONAL FOOD BUFFER STOCK COMPANY LIMITED (NAFCO) 2018
164. We noted that amount totalling GH¢333,050.00 relating to expenses incurred on various activities were not adequately supported with third party documentations such as receipts and signed sheet to account for them. Management should obtain receipts, signed sheets and other relevant documentation from the payees as an evidence of executing the activities to account for the expenditures.
165. Management procured white maize and other supplies totalling GH¢30,360,044.00 from 56 unregistered and unlicensed sampled Companies leading to loss of registration and license fees of GH¢84,000. We recommended that management should collect the registration and license fees of not less than GH¢84,000 from the 56 entities and update the list of suppliers accordingly.
166. We noted that NAFCO does not maintain comprehensive sub- ledger records for debtors thereby making tracking and collection of debts ineffective. Management should ensure that sub-ledger accounts are maintained for individual customers and ensure that the outstanding debts are promptly collected.
NATIONAL FOOD BUFFER STOCK COMPANY LIMITED (NAFCO) 2019
167. We noted that the Company made total payments of GH¢1,924,699.52 without the approval and authorisation of both the Senior Finance Officer and the Chief Executive Officer and this was in clear violation of Regulation 82 of the Public Financial
Management Regulations, 2019 (L.I. 2378). We recommended that all payment vouchers must be duly authorised and approved by the Chief Executive Officer and the Senior Finance Officer.
168. We also noted that Management disbursed funds totalling GH¢1,976,047.47 on twenty-nine (29) payment vouchers without adequate supporting documents. We recommended to Management to ensure that adequate supporting documents are attached to the payment vouchers or the amount of GH¢1,976,047.47 be recovered from the approving and authorising officers.
169. We noted that Management did not deduct and pay withholding taxes amounting to GH¢150,681.26 from various payments made for goods and services purchased during the year. We recommended that Management should pay the tax amount of GH¢150,681.26 that should have been withheld in accordance with Section 117 of the Income Tax Act, 2015 (Act 896).
MINISTRY OF JUSTICE AND ATTORNEY- GENERAL’S DEPARTMENT
ECONOMIC AND ORGANISED CRIME OFFICE Head Office
170. A total amount of GH¢425,109.00 was credited as receipt in the 2018 Bank Statement of Account 2 from Ghana Revenue Authority (GRA) without any evidence of authorization thus violating Section 47 of Public Financial Management Act 2016. We recommended to Management to seek Parliamentary approval for the receipt of this amount from GRA failing which the amount of GH¢425,109.00 should be pai

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