Over ¢505m spent on unauthorized payments, misapplication, budget overruns – Audit Report

Money (Ghana current notes)
Money (Ghana current notes)

The Auditor-General of Ghana Johnson Akuamoah Asiedu has cited a Cash Irregularities of GH¢505,800,397 as an amount of money spent for the period of 2021.

According to the Audit Report of 2021, the Cash irregularities is related to the misapplication of funds, budget overruns, payments not authenticated and payment of Board Allowances to Council
Members without Ministerial approval.

The Audit Report further said, out of the total figure of GH¢505,800,397 cash irregularities, GH¢230,700,424.38 represented unbudgeted expenditure by Ghana Cocoa Board on the principal repayment of a ten-year loan with Bank of Ghana (BOG) which was not included in the approved budget for 2019/2020 financial year.

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These occurred because of poor oversight responsibility and non-existent controls.

Other contributory factors of Cash Irregularities were;

1. finance officers’ failure to properly file and keep records

2. Management’s failure to ensure the security and safety of vital documents

3. Non-maintenance of returned cheque registers

4. Management’s inertia in complying with procedures stipulated in the Public Financial Management Act and

5. Poor accounting systems.

Auditor-General’s Recommendations on Cash Irregularities

The Auditor-General has therefore urged the Management teams 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).

He also recommended the
authentication of all payment vouchers, prompt payment to bank and full retirement of accountable imprest on due dates.

SOURCE: Coverghana.com.gh

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