The Auditor-General of the Republic of Ghana Johnson Akuamoah Asiedu has disclosed causes of GH¢8,243,954 Payroll Irregularities in the audit of the accounts of Public Boards, Corporations and other Statutory Institutions for the period ended 31 December 2021.
The office of the Auditor-General has conducted the audit in accordance with Article 187(2) of the 1992 Constitution of the Republic of Ghana.
According to the Auditor-General, the objective of the audit was to express an opinion on the accounts submitted by each Public Board, Corporation, and other Statutory Institutions for his examination.
Causes of Payroll Irregularities
Johnson Akuamoah Asiedu has explained that, Payroll Irregularities were caused by many factors.
The Payroll Irregularities were caused by the following.
1. Failure of Management to exercise due diligence, and the tolerance 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.
2. Management’s failure to notify banks to stop the payment of unearned salaries.
3. Failure of the Controller and Accountant-General’s Department to promptly delete names of separated staff when notified to do so.
4. Management’s failure to transfer statutory deductions in respect of PAYE taxes and SSF contributions.
5. Contained in the total irregularity of GH¢8,243,954 is an amount of
GH¢2,992,444 attributed to Ghana Broadcasting Corporation in respect of avoidable pending judgement debt due to the termination of appointment of a
former Director-General, judgement debt for the failure to pay long service award to employees, payment of unearned salaries and the late payment of 1st and 2nd
tier pension contributions.
Recommendations to address Payroll Irregularities
1. The Auditor-General of the Republic of Ghana Johnson Akuamoah Asiedu had 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.
2. He 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 contributions for their employees are promptly and regularly transferred to the various pension schemes.
3. The Auditor-General also recommended that regulatory bodies should exercise due care regarding decisions involving on termination of appointments