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REPUBLIC OF GHANA

PUBLIC BOARDSSSDDRRAOBCILBUUPP

201555102

REPORT OF THE AUDITOR-GENERAL

THE PUBLIC ACCOUNTS OF GHANA –

PUBLIC BOARDS, CORPORATIONS AND

OTHER STATUTORY INSTITUTIONS

31 2015FOR THE YEAR ENDED DECEMBER

This report has been prepared under Section 11of the Audit Service Act, 2000 for presentationto Parliament in accordance withSection 20 of the Act.

Richard QuarteyAuditor-GeneralGhana Audit Service21 December 2016

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]: Ministries Block 'O'

© Ghana Audit Service 2016

Repport of the Auditor-General on the Accounts on the public accounts of Ghana –

Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 i

TABLE OF CONTENT

Para Page(s)

Transmittal letter vii

Contributors x

Introduction 1-4 1

PART I

Summary of significant findings and recommendations 5-21 3

Audit opinion 22-29 10

PART II

Summary of findings and recommendations by

Ministries 30-232 13

PART III

No. Departments

Ministry of Energy

1. Ghana National Petroleum Corp. 233-260 64

2. Petroleum fund 261-273 71

3. Ghana Cylinder Manufacturing Co. Ltd. 274-282 73

4. National Electrification Scheme 283-314 76

5. Energy Commission 315-340 82

6. Energy Commission – Energy Fund 341-347 87

7. Bui Power Authority 348-370 89

8. Ghana Atomic Energy Commission – Sect. 371-379 94

9. National Nuclear Research Inst. – GAEC 380-388 97 10. Radiation Protection Inst. – GAEC 389-397 99

11. Graduate Sch. Of Nuclear & Allied Sciences 398-406 102

12. Biotechnology & Nuclear Agric. Research Inst. 407-415 104 13. Radiological & Medical Sciences Research Inst. 416-423 107

14. Ghana Grid Company Limited 424-442 109

15. Unified Petroleum Price Fund 443-451 113

16. Volta River Authority 452-470 115


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 ii

17. Northern Electrification Distribution Co. Ltd. 471-483 120

Ministry of Finance

18. Securities & Exchange Commission 484-499 123

19. Cocoa Marketing Company (GH) Limited 500-522 126

20. Ghana Cocoa Board 523-554 132

21. Social Security & National Insurance Trust 555-575 139

22. Public Procurement Authority 576-609 144

23. National Lottery Authority 610-631 150

24. Ghana Education Trust Fund 632-645 154

25. Students’ Loan Trust Fund 646-664 157

26. National Insurance Commission (NIC) 665-673 161

27. Fire Maintenance Fund (NIC) 674-689 163

28. Motor Compensation Fund (NIC) 690-698 167

29. Venture Capital Trust Fund 699-737 169

30. Bank of Ghana 738-745 176

31. Ghana Investment Promotion Centre 746-773 178

Ministry of Education

32. University of Health & Allied Sciences 774-796 184

33. University of Education – Winneba 797-808 189

34. GIMPA 809-826 192

35. National Accreditation Board 827-864 196

36. Ghana Institute of Journalism 865-914 204

37. Institute of Local Government Studies 915-927 215

38. National Board for Professional & Technical

Examination (NABTEX) 928-963 218

Ministry of Trade & Industries

39. Ghana Standards Authority 964-988 227

40. Export Trade, Agricultural Industrial

Development Fund (EDAIF) 989-1036 232


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 iii

41. Ghana Free Zones Board 1037-1053 246

42. Songor Salt Project 1054-1073 250

43. Ghana Trade Fair Company Limited 1074-1087 254

44. Ghana Export Promotion Authority 1088-1118 257

Ministry of Environment, Science & Technology

45. Building and Road Research Institute 1119-1131 264

46. Oil Palm Research Institute, Kusi-Kade (CSIR) 1132-1140 267

47. Root and Tuber Crops Project (CSIR) 1141-1152 270

48. Soil Research Institute (CSIR) 1153-1170 272

49. Soil Research Institute, Kwadaso-Kumasi 1171-1187 276

50. Forestry Research Institute (CSIR) 1188-1201 280

51. Animal Research Institute (CSIR) 1202-1211 283

52. Food Research Institute (CSIR) 1212-1235 285

53. Science & Technology Policy Res. Institute 1236-1245 290

54. Plant Genetic Resources Research Inst. (CSIR) 1246-1254 292

55. Inst. For Scientific & Technical Inst. (CSIR) 1255-1263 294

56. Environmental Protection Agency (EPA) 1264-1277 297

57. National Environmental Fund (EPA) 1278-1286 300

58. Crops Research Institute (CSIR) 1287-1300 303

Ministry of Health

59. Ghana Aids Commission 1301-1308 306

60. Global Fund Round 8 (GAC) 1309-1316 308

61. National Health Insurance Authority 1317-1390 310

62. Food & Drugs Authority 1391-1405 330

63. Pharmacy Council 1406-1427 333

64. Ghana College of Physicians & Surgeons 1428-1443 339

65. Nursing & Midwifery Council 1444-1485 352

Ministry of Transport

66. Ghana Railways Development Authority 1486-1504 353


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 iv

67. Ghana Civil Aviation Authority 1505-1513 357

68. Ghana Maritime Authority 1514-1524 359

Ministry of Roads and Highways

69. Ghana Highways Authority 1252-1540 362

70. GHAPOHA – Wa Transport &

Transit Facilitation Proj. (WATTFP)

IDA Credit No. 4439 – GH 1541-1545 365

71. GRA (Customs Division) Wa Transport

& Transit Facilitation Proj. (WATTFP)

IDA Credit No. 4439-GH 1546-1551 367

72. Transport Sector Project (TSP)

Govt. of Ghana (Conso) Fund Component 1552-1559 370

Ministry of Water Resources, Works & Housing

73. Tema Development Corporation 1560-1576 372

74. State Housing Company Limited (SHC) 1577-1602 375

75. Water Resources Commission 1603-1611 381

76. Architectural & Engineering Services ltd. 1612-1620 383

Ministry of Information

77. New Times Corporation 1621-1429 386

Ministry of Communication

78. National Communications Authority 1630-1651 388

79. Ghana Publishing Company Limited 1652-1665 394

80. Ghana Post Company Limited 1666-1683 397

81. Postal & Courier Services Regulation Comm. 1684-1692 401

Ministry of Food and Agriculture

82. Irrigation Development Authority 1693-1706 403


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 v

83. Program for the Promotion of Biennial

Crops in Ghana (AFD Loan No. CGH6008.02M

Grant No. CGJ6008.02M and KfW Loan

BMZ – No. 2005 65572) 1707-1728 407

84. CORAF/WECARD Competitive Projects

Sustainable intensification integrated crops

Small ruminant production systems in West

Africa-Ghana (SILCSRP-W/A-GH) 1729-1742 412

85. CORAF/WECARD Competitive projects

Plantain (No. CW/03/01 CP/C0/09-1.3) 1743-1752 415

86. CORAF/WECARD competitive projects

Yellow rice – mottle virus (RYMV) Proj.

No. CW/03/01 CM/V/09) 1753-1765 417

87. CSIR-CRI CORAF/WECARD W/A Seed

Program (WASP) (No. AID-624-A-R-0007) 1766-1775 421

88. National Buffer Stock Company Ltd. 1776-1801 423

89. Rural Enterprises Porgram International

Fund for Agric. Devt. (Loan No. 841 GH) 1802-1821 429

Ministry of Employment, Labour & Manpower

90. National Pension Regulatory Authority 1822-1858 434

91. National Vocational Training Institute 1859-1874 441

Ministry of Justice and Attorney General

92. Copyright office 1875-1902 445

93. Economic & Organised Crime Office (EOCO) 1903-1936 451

94. Legal Aid 1937-1953 459

Ministry of Toursim, Culture & Creative Arts

95. Ghana Tourist Board 1954-1980 463

96. Abibigromma Theatre Company 1981-1998 468

97. Kwame Nkrumah Memorial Park 1999-2010 472


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 vi

98. National commission on Culture 2011-2019 476

Ministry Of Land and Natural Resources

99. The Office Of The Administrator Of Stool Lands 2020-2034 478

100. Minerals Commission 2035-3043 481

101. Precious Minerals Marketing Co. Ltd. 2044-2054 484

Ministry of Youth & Sports

102. National Sports Authority 2055-2107 487

Extra Ministerial Agencies

103. Financial Intelligence Centre 2108-2116 498

104. Electoral Commission 2117-2135 500

105. State Enterprise Audit Corporation 2136-2144 505

106. National Population Council 2145-2164 507

107. Internal Audit Agency 2165-2173 512

108. Kofi Annan International Peace

Keeping Training Centre (KAIPKTC) 2174-2187 514


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 vii

Ref. No. AG.01/109/Vol.2/98 Office of the Auditor-General

Ministries Block ‘O’

P. O. Box MB 96

Accra

Tel.: (0302) 662493

Fax: (0302) 675496

21 December 2016

Dear Mr. Speaker,

REPORT OF THE AUDITOR-GENERAL ON THE

PUBLIC ACCOUNTS OF GHANA – PUBLIC BOARDS,

CORPORATIONS AND OTHER STATUTORY INSTITUTIONS

FOR THE YEAR ENDED 31 DECEMBER 2015

I have the privilege to forward my audit report on the Public Accounts

of Ghana-Public Boards and Corporations to you to be tabled in the

House in pursuant to Article 187(5) of the 1992 Constitution.

2. As usual, the report has been structured into three parts. Part I

provides overall summary of significant findings and

recommendations and 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 Parts III gives the full details of my findings and

recommendations.

TRANSMITTAL LETTER


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 viii

3. Mr. Speaker, this report highlights the significant findings

arising from my audit of the financial operations of Public Boards,

and Corporations and other Statutory Institutions in accordance

with Section 13 of the Audit Service Act of 2000 (Act 584). It includes

details of financial errors and irregularities arising out of the

breakdowns of internal controls and provides recommendations,

where possible to rectify the weaknesses identified in the financial

control systems.

4. 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 in preparing this report.

5. I am also grateful to Chief Executives, Chief Finance Officers

and their staff for their cooperation during the conduct of 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, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 ix

Public Boards and Corporations for purposes of prudent

management of the public purse.

THE RT. HON. PEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE

ACCRA

Yours faithfully,

RICHARD Q. QUARTEY AUDITOR-GENERAL


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 x

Contributors

Egala, Atitso & Associates

Ernst & Young

Kwame Asante & Associates

P K F

James Quagraine

PWC

Deloitte & Touche

Opoku, Andoh & Co

Benning, Anang & Partners

K P M G

Kwesie & Partners

Lobban Hyde

Boateng, Offei & Co.

AADS Consult

Asafu-Adjaye & Partners

Osei Kwabena & Associates

State Enterprises Audit Corporation

AKUS Consult

Veritas Associates

Ahima-Adonteng & Associates

EU Asare & Co.


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 xi

Osei Owusu-Ansah & Associates

Ofori Anom Consult

Andah & Andah

Sammy Tsahey & Associates

Robert Azu & Partners

Baker Tilly Andah & Andah

Morrison & Associates

O.A.K Chartered Accountants

Asamoa Bonsu & Co

Issifu Ali & Co

Global Auditor

Donaldy Associates

JOP Consult

Baah, Quartey & Associates

Adom Boafo & Associates


Public Boards, Corporations and Other Statutory Instns. for the peiod ended 31 Dec. 2015 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 2015

Introduction

In accordance with Article 187(2) of the 1992 Constitution of

the Republic of Ghana the audit of the accounts of the Public Boards,

Corporations and other Statutory Institutions for the period ended

31 December 2015 have been conducted.

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

financial 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 2015. 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 of the report provides overall summary of significant

findings and recommendations arising from my audit of the

financial operations of Public Boards and Corporations and

other Statutory Institutions.

Part II of the report highlights the significant findings and



recommendations made in respect of each Sector Ministry and

their respective Public Board and Corporation and Statutory

Institutions.

Part III of the report gives the operational results and financial

position as well as the full details of financial errors and

irregularities arising out of the breakdowns of internal

controls and provides recommendations, where possible to

rectify the weaknesses identified in the financial control

systems.



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 2015.

No Type of Irregularities

% Amount (GH¢)

Amount USD (US$)

Amt. Euro (€)

Amt. GBP (£)

Total Amount (GH¢)

1 Outstanding Debtors/Loans Recoverable charges

82.33 2,705,086,348 2,705,086,348

2 Cash Irregularities

6.02 197,922,326 3,874,372 2,300,163 11,846 222,227,944

3 Payroll Irregularities

0.04 1,424,941 1,424,941

4 Procurement Irregularities

0.02 568,322 568,322

5 Tax Irregularities

11.49 377,410,669 377,410,669

6 Stores Irregularities

- 58,845 58,845

7 Contract Irregularities

0.10 3,271,981 504,750 5,186,245

Total 100.0 3,285,743,432 4,379,122 2,300,163 11,846 3,311,963,314



6. Table 1 shows that, the irregularities in monetary terms

totalled GH¢3,311,963,314 which included US$4,379,122 converted

into Cedis at the prevailing exchange rate of GH¢3.7925 to the US$1

as at 31 December 2015, €2,300,163 converted into Cedis at the

prevailing exchange rate of GH¢4.1499 to the €1 as at 31 December

2015 and £11,846 converted into Cedis at the prevailing exchange

rate of GH¢5.6235 to the £1 as at 31 December 2015.



Table 2: Summary of Financial Irregularities according to Sector Ministries

Outstanding

Debtors /

Loans / recoverable

Charges

Cash

Irregularities

Payroll

Irregularit

ies

Procureme

nt

Irregularit

ies

Tax

Irregularit

ies

Stores

Irregularit

ies

Contract

Irregularities

Sector

Ministry

GH¢ GH¢ US$ € £ GH¢ GH¢ GH¢ GH¢ GH¢ US$

Min. of Energy

& Petroleum

7,525,696 20,242,850 42,300 46,592 210,496 504,750

Min of Finance 1,959,074,910 298,695 3,649,134 375,211,492

Min. of

Education

268,000 6,619,356 375,766 24,000 178,892 41,580 275,380

Min. of Trade and

Industry

18,001,683 158,265,17

3

72,799 309,533 211,079 17,265

Min. of

Environment

Science and

Technology

22,563

1,062,824

Min. of Health 717,371,667 636,444 627,204 544,322 350,000

Min. of

Transportation

Min. of Roads &

Highways

55,500

Min. of Water

Resources, Works &

Housing

557,707

60,663

110,139

163

11,864

16,538

257,316

Min. of Information

Min. of

Communication

2,848 1,279.895

Min. of Food &

Agriculture

5,145,701 2,300,000 2,603 1,077,969

Min. of Employment,

Labour & Manpower

382,103

139,649



Min. of Justice &

Attorney General

96,547 619,039 - 43,583

Min. of Tourism,

Culture & Creative

Arts

(MOTCA)

5,591

3,122

479,163

Min. of Land &

Natural Resources

1,615

Min. of Youth and

Sport

38,498 5,374,953 7,055 78,241

Extra Ministerial

Agencies

1,769,537

434,534

Total 2,705,086,348 197,922,326 3,874,372 2,300,163 11,846

1,424,941 568,322 377,410,669 58,845 3,271,981 504,750



Outstanding Debts/ Loans/ Recoverable Charges - GH¢2,705,086,348

7. These irregularities represent trade debtors, staff debtors and

outstanding loans. Lack of debt collection policies, the absence of

credit controllers to retrieve the debts and management’s apathy

towards loan recovery contributed significantly to the anomalies.

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 noncompliance with rules and

regulations accounted for these irregularity.

8. I recommend that management of Public Boards,

Corporations and other Statutory Institutions should strictly adhere

to rules and regulations pertaining to debts management. They

should put in place proper policies on the granting of loans and

should also ensure that loans are repaid on due dates to avoid or

mitigate the occurrence of bad debts.

Cash Irregularities - GH¢222,227,944

9. Cash irregularities mostly related to the misapplication of

funds, overestimation of budgets, outstanding retirement of imprest,

payments not authenticated and outright cash shortages. These

occurred as a result of poor oversight responsibility, lack of control,

management’s failure to review approved budgets and the failure of

Paying Officers to demand receipts for payments made. Other

contributory factors were Accountants’ 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

and management’s inertia in complying with procedures stipulate

in the Financial Administration Act coupled with poor accounting

systems.



10. I therefore urge the management of the Public Boards,

Corporations and other Statutory Institutions to strengthen

supervisory controls over their Accountants and ensure that they

adhered to the stipulations of the Financial Administration Act. I also

recommend the authentication of all payment vouchers, the review

of approved budgets and the prompt retirement of imprest.

Payroll Irregularities - GH¢1,424,941

11. These lapses were caused by the failure of management to

exercise due diligence and the failure of officers in charge of payroll

to review payment vouchers to ensure salaries were paid to only

those who were entitled. They were also caused by management’s

failure to notify banks to stop the payment of unearned salaries.

12. They mostly comprised payments of unearned salaries to

separated staff, non-payment of unearned salaries to chest and

payment to staff members who were not entitled to receive those

salaries.

13. I advised management of the affected Institutions to promptly

notify the bankers of the separated staff to withhold and pay to chest

all unearned salaries. I also recommend that officers in charge of

payroll should exercise due care in the discharge of their duties.

Procurement Irregularities-GH¢568,322

14. These irregularities occurred as a result of management

procuring goods and services without recourse to the procurement

committees of the various Institutions, contrary to the provision of

the Procurement Act.

15. I once again recommend that the management of the various

Institutions should transact procurement dealings strictly in

accordance with the provisions of the Public Procurement Act, 2003



(Act 663).

Tax Irregularities - GH¢377,410,669

16. The Tax irregularities related to misapplication of tax

revenue, failure to pay statutory deductions on due dates contrary to

the law and non-adherence to the provisions in the tax laws. They

also relate to transaction of business with non VAT registered

persons.

17. I recommend that the Finance Officers should strictly adhere

to tax laws to ensure that all tax revenues are promptly collected and

paid to the responsible revenue agencies.

Stores Irregularities - GH¢58,845

18. These irregularities include non-documentation of store items

and unaccounted fuel, resulting from the absence of store ledgers,

lack of awareness of officers assigned to store duties, inadequate

supervision, use of deficient and improvised logbooks and

management’s failure to produce the relevant books for record

keeping.

19. I recommend the strengthening of controls over store items,

improving supervision and the procurement of store ledgers for

effective record keeping. I also recommend the strict adherence to

the store regulations and the Financial Administration Regulations.

Contracts Irregularities– GH¢5,186,245

20. These mainly relates to overpayment of contract sum, absence

of the signing of contract agreements, failure to comply with

tendering procedures, delay in construction, ineffective control over

contracts and the absence of transparency in the disbursement of

funds and award of contracts.



21. I therefore urge management to strengthen controls over

contracts and comply with tendering procedures. I also recommend

that responsible officials for the overpayment of contract sum be

surcharged with the difference.

AUDIT OPINION

22. Most of the financial statements submitted for validation

were prepared under generally accepted accounting principles and

my office was satisfied in all material respects that the 161 audited

financial statements complied with the Ghana Accounting standards

and relevant legislation.

23. In my opinion except for the financial statements of National

Buffer Stock Company Limited which had an exception, all the

others presented a true and fair view of the financial position and

performance of the organisations.

Accounts submission

24. In the year 2015, all the 109 organisations audited presented

their financial statements for audit.

25. As stated in my previous reports, to enhance accountability

and timely stewardship of public funds, I recommend that Board of

Directors as a matter of urgency should take the following remedial

measures among others to enhance the performance of Public

Boards, Corporations and Statutory Institutions:

Fill the position of Heads of Accounts Unit with

personnel with the requisite skill and experience;

Install computerized accounting software to accelerate

the production of financial statements for audit;



Resource their accounts departments to enable them

clear the back log of outstanding accounts and submit

them for audit by 31 December 2015;

Sanction any Chief Executive who fails to prepare and

submit for audit the organisation’s financial statements

by the 31 March deadline.

Sanction any official whose inaction resulted in these

and future irregularities to serve as a deterrent to

others.

Conclusion

26. As part of the processes of good governance, I urge the

appointing Authorities to ensure that Board of Directors are

constituted immediately for organisations having none including

places where there have been reshuffles. This is because the absence

of these Boards tend to delay the signing of the financial statements

resulting in audit delays thereby stifling my ability to meet the

constitutional deadline.

27. The operational results and financial positions of the Public

Corporations and other Statutory Institutions during the year under

review, could have been healthier if there had been effective

supervision of schedule officers.

28. I reiterate my advice to Management to strengthen their

Internal Audit Units to support and ensure sound financial practice

in accordance with the Internal Audit Agency Act 2003, (Act 658).

29. I also recommend that management should establish and

strengthen the audit Report Implementations Committees within the



organisations with Section 30 of the Audit Service Act 2000 (Act 584)

to ensure that recommendations made in this report are duly

implemented.



PART II

SUMMARY OF FINDINGS AND RECOMMENDATIONS

BY MINISTRIES

MINISTRY OF ENERGY AND PETROLEUM

GHANA NATIONAL PETROLEUM CORPORATION

30. Contrary to Regulation 288(1) of FAR, 2004, we noted that

various advances totaling US$42,300.00 and GH¢35,415.00 granted to

officials to undertake various activities for the corporation had not

been accounted for as at 31 December 2014.We recommended that

management should make the necessary efforts to have the

responsible officials retire the imprest or recover the balances by

debiting the outstanding amount to their individual personal

accounts.

31. In spite of our previous recommendation requesting the

Corporation to audit the operations of the partners in the oil industry

as empowered by Section 18.6 of the Petroleum Agreements,

management had still not undertaken the audits. Management

should therefore exercise the right to audit the Petroleum Partners

without further delay.

32. We noted during our inspection of the Corporation’s assets

that key documents were not available to confirm ownership of

property. The Corporation’s vehicles have also not been re-registered

as government vehicles. We recommended that Management should

ensure that the Facilities Department obtains all the vital

documentation required for the Corporation’s lands and buildings.

Management should also ensure that the vehicles are re-registered as

government vehicles.



PETROLEUM FUNDS

33. Contrary to the compliance checklist for investment purposes

for the Ghana Heritage fund which requires that exposure per issuer

should not exceed 5% of Ghana Heritage Fund Holdings; we noted

that the total amount of Heritage fund invested in the US Treasury

exceeded the exposure per issuer. We recommended that

management should ensure that the compliance checklist for

investment purposes is strictly adhered to.

NATIONAL ELECTRIFICATION SCHEME

34. Despite efforts by management to ensure that levies are

remitted to the fund promptly, we noted significant delays of levies

collected in 2014 totaling GH¢17,999,762 not remitted to the Fund

with PURC being the major culprit. We recommended that the

Project Management Team of the National Electrification Scheme

should explore alternative means of getting PURC in particular to

remit the levies collected to the scheme.

35. Transformers installed in communities visited where the

projects have been commissioned, were found to be faulty and had

been energized. There were also leakages of oil from some of the

transformers. We recommended that Contractors responsible for

areas where there are issues with transformers should be compelled

to rectify the problem as soon as possible. Also the project

management team should evaluate causes of faulty transformers, as

this issue continues to recur in all our reports.

36. We noted at Kope area in the Awutu Senya District of the

Central Region that the sub-station had not been energized because

the Contractor noticed a high incidence of theft of meters even before

service was extended to the households. We recommended that the

Management team and the contractor should devise a plan to resolve



the incidence of meter theft as soon as possible.

37. We noted that stringing of the Low voltage (LV) conductors

had low sag between them in one community. Additionally, at

Akrumatoyom in the Awutu Senya District of the Central Region the

take-off point on the LV poles was mounted too low, there by

exposing it to children in the community. We recommended that the

contractor responsible for stringing of LV lines should be requested

to correct the defect to prevent any future loss of lives and

properties.

38. At Prampram in the Ningo-Prampram district of the Greater

Accra Region, we noted that, LV Poles were mounted in water

logged areas around the Ningo-Prampram Senior High School. The

Contractor should be made to revisit the site and provide any

remedial action to ensure that the poles will withstand that

environmental condition.

39. National Electrification Scheme has no insurance policy

covering its materials in all depots over the country. This is a

problem which has been reported over the years but has still not

been resolved due to lack of funds. However, in view of the high

risk involved, we still recommended that the materials should be

covered with an insurance policy.

ENERGY COMMISSION

40. Contrary to the stores Regulations, 1984, Regulations 1513,

we observed that all fixed assets, specifically Furniture, Fittings and

Equipment as well as computers and Accessories acquired during

the year were not labeled. We recommended to management that

any asset purchased in the name of the Commission must

immediately be embossed.

41. Contrary to the Public Utilities Regulatory Commission



(Amendment) Act 2010 (Act 800), we noted that PURC failed to remit

15% of transfers received from GRIDCO amounting to GH¢2,207,673

to the commission. We recommended to management that they

should intensify efforts in letting PURC comply with the law.

42. In spite of Section 83 of the Public Procurement Act, 2003

(Act 663) which mandates the head of procurement entity to dispose

off stocks that are obsolete, redundant and unserviceable in an

orderly and systematic manner, we noticed that vehicles that were

not in good condition and thus were unused were abandoned and

also left to the mercies of the weather. We recommended to the

management that the vehicles should be either repaired or disposed

off.

BUI POWER AUTHORITY

43. Though management deducted an amount of GH¢46,592

from staff salary for the period October to December 2013, no

payment has been made to the fund as SSNIT refused to receive the

Tier 2 pension. We recommended that management should conclude

on the selection of a private fund manager and transfer the funds to

them appropriately.

44. In contravention of Sections 17 (1), 21(1) and 35(1) of Public

Procurement Act, 2003, (Act 663) we noted that BPA did not have a

Tender Committee and a procurement plan and also carried out

procurement without following competitive process. We

recommended that the Board should take the necessary steps to

ensure compliance with the provisions of the Public Procurement

Act, 2003, (Act 663).



GHANA GRID COMPANY LIMITED

45. The debt agreement with AFD requires the Company to

maintain a debt service ratio of 1.4:1; however, the company had

violated the agreement and its debt service ratio for August 2014 was

0.86:1. We recommended that, management should monitor loan

agreements to ensure compliance.

46. Contrary to laid down policy, we observed that 80% of the

Company’s trade receivables are over sixty (60) days. We further

noted that, out of the GH¢224.5 million owed by Electricity Company

of Ghana to the Company, 68% of this balance is over 60 days past

the due date as at 31 December 2014. We recommended that,

measures should be put in place to ensure timely collection of fees

for services rendered.

VOLTA RIVER AUTHORITY

47. Management of VRA had failed to provide meters to

individual consumers of electricity in Prestea Township, resulting in

VRA making full provision for the total amount each year, with this

year’s (2014) total amount of GH¢7,525,695.95 representing total

power sales provided for. We advised that management of the

Authority should consider introducing prepaid meters for customers

in Prestea Township or add Prestea Township to the customers of

Electricity Company of Ghana (ECG) to enable ECG supply them

with prepaid meters.

NORTHERN ELECTRICITY DISTRIBUTION

COMPANY LIMITED (NEDCO)

48. Our review of NEDCO receivables revealed that the rate of

growth over the past three years’ ranges from 45% to 65%. However,

the policy on provision for doubtful debt had been pegged at 2% of



the total receivables at the end of the year. We recommended that

management must in consultation with the Board consider revising

the provision based on the consistency and the trend of increases of

the receivables over the years.

MINISTRY OF FINANCE AND ECONOMIC PLANNING

SECURITIES AND EXCHANGE COMMISSION

49. Contrary to Section 9 (b) of the Securities Industry Law, 1993,

PNDCL 333 as amended, we observed that the Market Surveillance

system was not functioning as expected and as a result the

Commission was unable to monitor and capture all trades at the

Ghana Stock Exchange. We recommended that management should

take urgent steps to fix the surveillance system.

COCOA MARKETING COMPANY (GHANA) LIMITED

50. Contrary to Section 29.4 of Ghana Cocoa Board policies,

regulations and procedures fifteen staff members had not retired a

total amount of GH¢48,485 released to them as imprest in 2013 and

2014. Management was advised to take necessary action to

immediately have the imprest retired or recovered by adjusting it to

the personal account of the imprest holders

51. Best management practices require that any amount due to

any Company should be identified and collected. Contrarily, it was

observed that the Company’s debit balances totaling GH¢21,434 on

Ched and Seed production accounts did not show any movement

during 2013 and 2014. We recommended that the makeup of the

balances should be reviewed and efforts made to collect them.

GHANA COCOA BOARD

52. COCOBOD did not adequately provide for employees

benefit in its general ledger in contravention of International



Accounting Standard (IAS) 19. We recommended that management

should engage the services of qualified actuary to undertake

actuarial valuations of these benefits. The resultant valuations which

should be updated annually should then be recorded in the general

ledger.

53. Contrary to Section 26(1) and 28(1 &2) of the Ghana Cocoa

Board Act, 1984 (P.N.D.C L81) COCOBOD had failed to establish a

contributory insurance scheme for Cocoa, Coffee and Shea nut

farmers within the framework of the Social Security Scheme as well

as the Depreciation Reserve Fund. We recommended that

management should ensure that the relevant provisions of Ghana

Cocoa Board Act 1984 (PNDC L 81) as amended by Ghana Cocoa

Board (Amendment) Law 1991 (PNDC L 265) are adhered to.

54. We noted that, off-site back up procedures for data captured

at the cocoa take-over centres were inadequate. Management should

design and implement a backup policy for the take-over centers and

ensure that data is backed up to an off-site location on a regular

basis.

SOCIAL SECURITY AND NATIONAL INSURANCE

TRUST (SSNIT)

55. We noted that fixed deposits with Ghana International Bank

(GIB) totaling £620,000 equivalent to GH¢2,788,992.00 were not

supported by a Security assignment, contrary to SSNIT’s own

practice where fixed deposits are backed by securities. We

recommended that SSNIT should request the GIB to back the fixed

deposits with securities, to enable SSNIT redeem the amount in times

of default.



56. Loans totaling GH¢477,319,200.67 granted to eight private

and public organizations were not paid back and the collaterals

provided by these loan defaulters were not valued. We

recommended that, management of SSNIT should take the necessary

steps to recover the loans and strengthen its recovery mechanism.

They should also value and perfect collaterals covering these loans,

so that recovery can be made from the sale of the collaterals.

PUBLIC PROCUREMENT AUTHORITY

57. Contrary to Section 87(1) of the Internal Revenue Act 2000

(Act 592), we observed that taxes totaling GH¢8,638 withheld from

payment made to suppliers had not been remitted to the

Commissioner as at end of year 2014. We recommended that all the

withholding taxes outstanding must be paid and the receipts given

to the respective suppliers as soon as possible.

58. An amount of GH¢77,112 being part of other accruals as at 31

December 2014 were due to stale cheques. We recommended that the

holders of the unpresented cheques must be contacted for possible

replacements.

NATIONAL LOTTERY AUTHORITY

59. The Authority used wrong rates in the computation of PAYE

of GH¢16,339 whilst withholding taxes of GH¢112,330 had not been

paid to the Ghana Revenue Authority since January 2014. We

recommended that the current income tax rate must be used to

compute the income tax deductions and all deductions due the tax

authorities should be paid.

60. Contrary to Section 48 of the National Lottery Act 2006 (Act

722) copies of the internal audit reports presented to the Director

General and the Board chairperson were not submitted to the



Auditor-General and Minister of Finance. We recommended that

quarterly internal audit reports should be presented to the relevant

supervisory authorities as required.

GHANA EDUCATION TRUST FUND

61. Our audit revealed that withholding tax of GH¢27,059,150 for

the period July 2013 to December 2014 had not been paid. We

recommended that management should take the necessary steps to

settle the liability.

62. We observed that the 2.5% VAT proceeds meant for the Fund

was not forthcoming as expected. As at 31 December 2014 only

GH¢382,801,463 had been received out of the expected amount of

GH¢730,815,498 leaving a balance of GH¢348,014,035 which

represent 47.6% arrears. We recommended that measures should be

put in place to ensure that the proceeds are issued to the Fund as and

when due.

STUDENTS’ LOAN TRUST FUND

63. We observed that, only 36% of the total amount of GH¢22.27

million due for recovery was recovered during the year amounting

to GH¢8.13 million. We recommended that management should

intensify their efforts for locating all borrowers in order to recover

not only overdue amounts but amounts due currently.

64. Contrary to the core activity of the fund which is

disbursement of loans to tertiary level students in accredited

Institutions in Ghana, we noted that total loans disbursed to students

represents 48% of the total grants received during the year under

review. We recommended that management should intensify efforts

to increase the loan disbursed to students in order to realize the

fund’s objectives of supporting needy students.



VENTURE CAPITAL TRUST FUND

65. We noted that management made a wrongful payment of

US$3,649,134 to SIC-FSL and two alleged representatives of Bethany

Church for the purchase of a property at North Ridge. We

recommended to management to ensure that the Fund recover

US$3,649,134 from the illegal recipients of the money.

66. Contrary to Section 13 of the Venture Capital Trust Fund Act,

2004 (Act 680) we observed that an amount of GH¢114,360 was paid

as gratuity without the Sector Minister’s approval. We therefore

recommended that, for the amount to stand charged to the funds

account an approval should be sought from the Minister or the

amounts should be recovered to chest.

67. Six staff including Board Trustees members who were

granted a total imprest of GH¢282,389 failed to retire the imprest on

the due date even though the programme had been completed. We

advised management to ensure the timely retirement of imprest and

institute sanctions to be applied to defaulters.

68. Contrary to Section 15(5&6) of the Venture Capital Trust

Fund Act, 2004, Act 680 34% of loan files reviewed did not have

documents to prove that loans totaling GH¢1,479,402.00 were

approved. We advised management to ensure that all files are

updated by the investment department.

69. Contrarily to best practice we noted that agreements on loans

totaling GH¢1,305,967 were not signed and dated. We recommended

to management to ensure all loan agreements are properly signed

and dated.

70. Due to non-compliance of proper loan agreements, 51% of

files examined for loans totaling GH¢914,654.00 granted did not have



adequate information on borrowers. We recommended that files of

borrowers should contain adequate information that could help trace

them.

GHANA INVESTMENT PROMOTION CENTRE

71. We observed that payments totaling GH¢46,283.56 were

made to seven staff members who were allowed to convert their

annual leave to cash in contravention of the Labour Law of 2003.

These payments were also made without being subjected to tax

deductions. We recommended that management strictly adheres to

the Labour laws and to also enforce compliance of leave roaster.

72. Contrary to the Public Procurement Act, 2003 (Act 663) all the

advertisement contracts signed with foreign companies were not

through competitive bidding and were approved single-handed by

the Chief Executive Officer. We recommended that in contracting

advertising firms, proper procedure should be followed as spelt out

only in PPA. The Chief Executive Officer should also desist from

awarding contracts which are above his threshold.

73. GIPC had established barter transactions with organizations

for sponsorship during the Ghana Club 100 programme without

formally signing a contract agreement. We recommended to

management that, there should be proper documentation on all

operations and transactions of the Centre.

74. We noted during the audit that 89% of the total printing and

publications at GIPC is handled by Royal MEDIATEC Investment

Company without adherence to the Public Procurement Act. It was

recommended to management that the process should conform to

the Public Procurement Act.



75. GIPC paid GH¢14,400 as a four year rent for the Tamale

Regional Office but failed to occupy the premises until the agreement

expired. We recommended that management review the payment

and establish why payment was made without utilizing the facility;

and whoever caused the loss should be surcharged with the cost

involved.

MINISTRY OF EDUCATION

UNIVERSITY OF HEALTH AND ALLIED SCIENCES

76. We observed that assets being occupied and used by the

University have not been captured in the University’s books as part

of property plant and equipment. We recommended that the

University should ensure that all title deeds on those assets are

obtained and transfers are made into the University’s books.

77. Due to non-payment of compensation to land owners the

University has not recognized the land on which the University’s

permanent campus is located in their books as the University has no

title for the land. We recommended that management should liaise

with Government to ensure compensations are made to the land

owners and also all land title documents obtained.

78. Contrary to a grant agreement, the University misapplied an

amount of GH¢1,000,000 which was received from Ghana

Commercial Bank Limited meant for the construction of an

administrative block at the Hohoe Campus for administrative

expenses. We recommended that management should endeavour to

utilise grants according to terms and conditions specified in the grant

agreement.



UNIVERSITY OF EDUCATION-WINNEBA

79. We noted that Kumasi Campus of the University made a

transfer of GH¢20,000.00 from Ghana Commercial Bank (GCB)

Harper Road to Ecobank, Tanoso Branch on July 30, 2012. Though

GCB had debited the UEW account with the amount, Ecobank had

not credited UEW Kumasi Account as at 27 October, 2014. We

recommended that the University follow-up on this transfer and

ensure that the defaulting bank pays interest on the amount.

GHANA INSTITUTE OF MANAGEMENT AND PUBLIC

ADMINISTRATION (GIMPA)

80. The Institute had no Legal Title documents to cover its

immoveable properties, notably the land on which its premises are

located at Green Hill. Management is urged to vigorously pursue the

relevant documents of title and perfection of same to forestall any

possible litigation in the future.

NATIONAL ACCREDITATION BOARD

81. Contrary to section 5(a) of Act 735 Act 2007, management

spent GH¢4,604,469.50 of its internally generated funds for the

period 2014 without submitting monthly records of collection, bank

lodgments and monthly returns to the minister of Finance. We

advised management to ensure that all collections, lodgments and

expenditure returns for 2014 and subsequent ones are submitted to

the Ministry of Finance.

82. Management paid GH¢726,886.52 as board members and

committee members allowances for the period 2014 without

ministerial approval contrary to section 7 of National Accreditation

Act 2007 (Act 744) and Ministry of Finance circular referenced

B/CEU/2014/05. We recommended strict adherence to the Act and



Ministry of Finance circular and management to seek retrospective

approval for payment of the allowances and subsequent allowances

from the Minister.

83. Management used GH¢5,139.13 in payment of the internally

generated funds for personnel benefits contrary to the section 5(c) of

Act 735, Act 2007. We urged management to desist from the practice

and to apply to the Controller & Accountant General for

reimbursement to the board’s account.

GHANA INSTITUTE OF JOURNALISM

84. The Institute paid unauthorized monthly supplementary

salary of GH¢110,877.70 to four personnel who were seconded to the

Institute from their Internally Generated Funds (IGF) in

contravention of Section 5(e) of the Institute of Journalism Act 2006,

Act 717. We recommended that management should seek

retrospective approval from Ministry of Finance and Economic

Planning (MoFEP) since the payments are salary related, or the

beneficiaries be made to refund the total amount paid, and any

subsequent payments into the Institute’s account.

85. Contrary to Regulation 295 of the Financial Administration

Regulation (FAR) 2004, the Institute paid eight unapproved salary

related allowances totaling GH¢170,810.36 for the period reviewed to

the Accountant who is on secondment from Controller & Accountant

General’s Department (C&AGD). We recommended to management

to seek approval to regularize the payments failing which the

amount and any subsequent payments should be recovered from

him.

86. Management failed to maintain proper records on the



Institute’s contracts, hence contract agreements for three projects and

the engagement of two consultants could not be provided for our

scrutiny. Additionally, the Institute did not maintain a contract

register to monitor payments made to contractors. To enhance

transparency, we recommended that management should keep

proper records on contracts. Meanwhile the contract agreements and

the contract register should be made available for our inspection.

87. In a related development we noted that, the Institute failed to

keep records of donations received for the building of an emergency

Lecture Hall. We recommended that management provide records

on donations received and how they were utilized for our

examination. Additionally, management should ensure that all

donations received by the Institute are recorded in the appropriate

records to enhance proper accountability.

88. Even though the Institute informed C&AGD of the

separation of the officer, he was paid one-month salary of

GH¢4,454.71 which he would have earned if he had been at post.

The officer had refunded GH¢2,500.00, leaving a balance of

GH¢1,954.71 yet to be settled. We recommended that efforts should

be made by management to retrieve the amount from the former

employee and pay into the consolidated fund without delay.

INSTITUTE OF LOCAL GOVERNMENT STUDIES

89. A total amount of GH¢178,892.03 representing withholding

taxes deduction on goods, services and PAYE have not been paid to

the Ghana Revenue Authority. We recommended that the Institute’s

management remit the outstanding withholding tax liability without

fail.



NATIONAL BOARD FOR PROFESSIONAL

AND TECHNICAL EXAMINATION (NABPTEX)

90. Our audit scrutiny disclosed that, regardless of several

reminders, Takoradi Polytechnic failed to remit to NABPTEX an

outstanding amount of GH¢268,000 being examination fees collected

on its behalf. We recommended that management put in place

stringent measures that will compel defaulting Polytechnics to

reimburse promptly moneys collected on its behalf.

91. Contrary to Section 35[1,2] of the Financial Administration

Act (FAA) 2004, Act 654, 130,000 blank certificates valued at

GH¢41,580.00 ordered from CheckPoint Ghana Limited for printing

of certificates to clients were not routed through stores. To ensure

transparency and enhance proper stores control, we recommended

that management should ensure all supplies are routed through the

stores.

92. In contravention of Regulation 2[c] of Financial

Administration Regulation (FAR) 2004, L.I 1802, our stores

inspection revealed that five out of 15 set of computers funded by

Get Fund were neglected at the stores to deteriorate. We

recommended that the responsible officers whose inaction resulted

in the anomaly should explain why the computers, which were

procured with the taxpayer’s money, were not used until damaged.

93. We observed that management did not separate

unserviceable stores from the serviceable, in contravention of

Chapter II, Section 1101 of Stores Regulation 1984. We

recommended that, management should take immediate steps to

comply with the stores regulation.

94. Two of its staff members sponsored to pursue a degree and a



masters course at various Institutions during the period reviewed

were not bonded. We advised that the officers involved and

subsequent beneficiaries should be bonded.

MINISTRY OF TRADE AND INDUSTRIES

GHANA STANDARD AUTHORITY

95. Two bank accounts were noted to be dormant with the bank

balances appearing in the books without any movement. We

recommended that management should confirm the balances from

the bank to determine the status of the balances.

EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL

DEVELOPMENT FUND (EDAIF)

96. Contrary to Section 5 of Act 582 as amended by Act 823

(2011) and Section 5 of Act 872 (2013) we noted an increasing trend in

the issuance of grants over the years from 2011 to 2014. There was

also a significant increase in the proportion of grants as compared to

total amounts disbursed in grants and loans from 2011 to 2014. We

recommended that more loans should be given out than grants. The

Board should also issue clear guidance on the issuance of grants and

apportioning of funds among the amounts of the fund indicated in

Act 872.

97. We noted that EDAIF did not have documents to indicate

whether grants totaling GH¢31,131,914 and GH¢28,970,444 disbursed

in 2013 and 2014 respectively had been used for the approved

purposes. We recommended that Management should ensure that

grant agreements or offer letters to beneficiaries, including

government institutions, for approved grant include clauses such as

submission of financial returns, activity reports and the right of audit



of funds by internal or external auditors to ensure judicious use of

EDAIF’s financial resources. Management should also obtain and

retain copies of financial reports and third party supporting

documentation evidencing the use of grants disbursed.

98. Contrary to Section 7(2), of the EDAIF Act 2013, Act 872 the

Board approved a decision to write off recoverable grants totaling

GH¢7,193,009 granted between 2011 and 2013.

99. In addition, the board of directors passed a resolution to

convert the outstanding balance of GH¢10,500,000 due from

Eximguaranty Company Limited into an irrecoverable grant.

100. We recommended that the board/management should put

rigorous systems and processes in place for granting facilities to

beneficiaries. In particular, management should ensure the viability

and recoverability of interest free loans. The board should also

ensure that its duties are performed in accordance with the EDAIF

Act 2013, (Act 872).

101. We noted that twenty-seven individual grants totaling

GH¢45,041,164 and GH¢50,188,581 issued in 2013 and 2014

respectively were in excess of the stated threshold of US$100,000 (as

per Section 2.3 of EDAIF Guidelines for Export Development and

Promotion and Export Credit and Projects Facilities). We

recommended that approval of grants should be in line with the

stated guidelines. The disbursement of grants in excess of the stated

threshold should be a rare occurrence.

102. In 2014, the board approved disbursement of GH¢2,496,173

to the Ministry of Trade and Industry (MoTI) to be paid as a deposit

in court pending an appeal for a case brought against Gratis

Foundation by its former employees. This payment is contrary to the



prescribed use of EDAIF moneys outlined in EDAIF’s Act (Act 872).

We recommended that the amount in question should be refunded

by the Ministry of Trade and Industry/Gratis Foundation.

103. Contrary to Good financial management practices a total

amount of GH¢46,163owed by three staff who had resigned were

included in staff receivables at the end of 2014. We further noted that

an amount of GH¢4,430 deducted from a deceased employee benefit

was wrongly treated and the balance is still showing as outstanding

in the staff receivable schedule. We recommended that management

should provide for the GH¢41,733 which may not be recoverable.

Entries should also be passed to recognise the GH¢4,430 that was

deducted from the benefits of the deceased staff. In addition, we

recommended that management should assess the recoverability of

all receivables on an annual basis and make provisions where

necessary.

104. Contrary to Section 31(1) of the Export Trade, Agricultural

and Industrial Development Act, 2013 (Act 872) we noted that the

Deputy Chief Executive position was vacant throughout 2014. We

recommended that the Board should draw the attention of the

President to this and ensure that all positions as stipulated by the Act

(Act 872) are filled by qualified personnel.

GHANA FREE ZONES BOARD

105. Contrary to Regulation 28 of the FAR we noted that, Ghana

Free Zones Board (GFZB) made payment of GH¢500,000.00 at the

exchange rate of GH¢1.83285: US$1.00 in May 2012 to Volta River

Authority (VRA) but VRA receipted the said amount on 10 July 2013

when the exchange rate was GH¢2.5: US$1.00 resulting in

understatement of US$72,799.19. We recommended to management

to immediately request VRA to recognize the understatement of the



US$72,799.19 and offset it against GFZB outstanding liabilities.

106. It came to light during the audit of the Ghana Free Zones

Board that, three Enterprises paid the required amount on parcels of

land allocated to them at the Tema Export Processing Zones but have

no signed Sub-Lease Agreement. Management is advised that, Sub-

lease Agreement should be prepared and signed by all respective

parties involved.

SONGOR SALT PROJECT

107. An amount of GH¢43,532.55 being unpaid balance of SSNIT

contributions had still not been remitted to SSNIT as at the end of the

year. We recommended that the amount deducted should be paid

immediately to avoid the payment of a penalty.

108. Our audit revealed that a total amount of GH¢266,941.29 had

been owed to the project since 2012 by five organisations. We

recommended that management should take the necessary steps to

collect these monies from the debtors.

109. Contrary to Section 87 of Act 592, we noted that total amount

of GH¢211,078.91 deducted as withholding taxes and PAYE had not

been paid as at the time of audit. We recommended that monies

withheld for tax purposes should be paid to GRA when due. Also,

the Project should arrange with GRA for the payment of the

outstanding amount of GH¢211,078.91 without further delay.

GHANA TRADE FAIR COMPANY LIMITED

110. An ex-Director sued the Company for non-payment of her

retirement benefits totaling GH¢466,000 for which the Company was

able to pay GH¢200,000 leaving a balance of GH¢266,000; resulting in

a court placing a garnishee order on the bank accounts of the

Company. We advised management to reach a satisfactory

arrangement with the retired employee for settlement of the



retirement benefits to expedite the lifting of the garnishee order on

the Company’s bank.

GHANA EXPORT PROMOTION AUTHORITY

111. An amount of GH¢253,402.41 transferred to Salon

International de L'artisants de Ouagadougou (SIAO) in

Ouagadougou, Burkina Faso to facilitate Ghana’s participation in an

International Arts and Handicraft Trade Show in 2014 remained

unrecovered, even though the fair could not come off due to the

outbreak of the Ebola Epidemic. We recommended that management

should ensure the recovery of the amount from SIAO the fair

Organizers immediately, failing which the paying officer who failed

to pursue the recovery should be surcharged with the amount.

112. Special imprest of GH¢82,215.69 granted to seven Officers of

the Authority to organise training and awareness programmes for

selected farmers in the country as well as the organisation of foreign

fairs, were not fully accounted for even though the programme had

been completed. We recommended that the officers responsible

should account for the shortages immediately.

113. Similarly, a special imprest of GH¢275,704.74 advanced to

cater for accommodation and communication during fairs and

programmes organised outside Accra is yet to be accounted for.

Additionally, funds transferred from the Authority’s project account

to various Ghana Missions toward organisation of fairs had not been

accounted for. We recommended that, the imprest should be

accounted for immediately. We further recommended that

management desist from the practice of granting lump sum as

special imprest to non-accounting staff; instead it should be the

responsibility of the Authority’s accounting staff to handle such

special imprest to enhance proper accountability.



MINISTRY OF ENVIRONMENT, SCIENCE AND TECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE (CSIR)

114. We noted that PAYE and Social Security Contributions

deducted from staff salaries over the years totaling GH¢954,107.00

were not remitted to the Ghana Revenue Authority (GRA) and Social

Security and National Insurance Trust (SSNIT). We therefore advised

management to liaise with CSIR Secretariat to clear this outstanding

deductions.

ROOT AND TUBER CROPS PROJECT (CSIR)

115. The Institute had not received any research grant from the

Government since 2013 but continue to pay research staff salaries for

no work done which is not a healthy situation. We recommended

that the Head Office (C.S.I.R) bring the Government’s attention to

this unhealthy situation to enable research work to continue.

SOIL RESEARCH INSTITUTE (CSIR)

116. Contrary to Insurance policy on Commercial buildings, we

observed that the office building had not been insured. We

recommended that the office buildings be insured without delay.

117. The Institute did not have Title Deeds for the land on which

the office buildings were situated. We recommended that immediate

steps be taken to obtain title deeds for the Institute’s properties.

118. We observed that most of the chemicals at the stores have

expired, and there were visible cracks on most of the test tubes. We

recommended that, a Board of Survey should be constituted to

oversee the disposal of the expired chemicals.



SOIL RESEARCH INSTITUTE – KWADASO-KUMASI (CSIR)

119. Our stores inspection revealed that most of the chemicals at

the stores have expired and tubes used for testing have visible

cracks. We recommended that the appropriate authority should be

sought for the disposal of the expired or obsolete stocks and deleted

from the stores ledger.

120. Section 184(1) and (2) of the Insurance Law, 2006 (Act 742)

requires every commercial building to be insured. We however

noted that the Institute office building had not been insured as

required by the above mentioned law. We recommended that the

Institute should have its buildings and other assets insured against

fire, burglary and theft.

FORESTRY RESEARCH INSTITUTE (CSIR)

121. Contrary to Regulation 288 (1) of the FAR 2004 (LI 1802) a

total amount of GH¢22,563 granted to officials of the Institute for

various programmes remained unaccounted for at the end of the

year. We recommended that the officers involved should be made to

account for the imprest or the amount involved should be adjusted to

a personal advance accounts in their names.

FOOD RESEARCH INSTITUTE (CSIR)

122. Contrary to Section 87 (1) of the Internal Revenue Act 2000

(Act 592) as amended and National Pensions Act 2008 (Act 766), we

noticed that P.A.Y.E deduction of GH¢75,377.56 and Social Security

deductions of GH¢28,500.61 which were outstanding before the

Controller and Accountant-General Department took over the

preparation of the Payroll still remained unpaid to the appropriate

authorities. We recommended that efforts should be made to

ascertain the individual details of these outstanding amounts with

the view of paying these to the appropriate authorities without

further delay.



123. Our audit revealed that some fixed assets belonging to the

Food Research Institute were not embossed and most of these were

those acquired in 2014. There were also instances where three

different fixed assets were given similar identification numbers. We

recommended the re-labeling of all the assets and update of the fixed

assets register.

124. Sample product for testing the market given to Melcom

Stores, Q and O Company in Takoradi, Owura Friends company also

in Takoradi among others were not reflected in the books of the

institute in contravention to Regulation 1 of FAR 2004 (L.I.1802). We

recommended that proper procedures be put in place to ensure that

all sales made, be it cash or credit, are properly recorded and

accounted for.

ENVIRONMENTAL PROTECTION AGENCY

125. Our visit to the regional and district offices disclosed that

most of the laboratories were either not properly equipped or lacked

a laboratory technician to operate them. We recommended that

efforts should be made to ensure that the laboratories at all the

offices are fully equipped and properly manned to ensure that the

agency carries out its mandate in a more efficient manner.

CROPS RESEARCH INSTITUTE

MIDA PROJECT (BPA – 1101103-09)

126. Contrary to the Internal Revenue Act 2000 (Act 592), we

observed that withholding taxes totaling GH¢4,839.06 were not

deducted from allowances paid to project staff who were engaged in

the training exercise. We recommended that the Institute should



retrieve the tax from the project staff and pay to the DTRD.

MINISTRY OF HEALTH

NATIONAL HEALTH INSURANCE AUTHORITY

127. We noted that the year on year growth in expenditure of the

Authority was significantly higher than the rate of the rate of growth

in income. We recommended that management should intensify cost

curtailment and cost containment measures so as to manage the

operational cost of the Scheme.

128. National Health Insurance Fund established by Section 42(1)

of the National Health Insurance Act, 2012, Act 852 was operated by

the Controller and Accountant-General’s Department (CAGD)

instead of the National Health Insurance Authority/Scheme. We

recommended that management liaises with the relevant

stakeholders to ensure that the account set up with Bank of Ghana

into which SSNIT and the Revenue Collection Agencies pay their

collection be operated by the NHIA in accordance with Section 42(1)

of the Act and not the CAGD.

129. Contrary to the Ministry of Finance pledge to bear the

interest and associated costs on a loan access by the Authority, we

noted that not all interest and related costs were paid by the Ministry

thus making the Authority incur interest expense of GH¢49,753,222.

We recommended that management must work hand in hand with

the Ministry of Finance and other stakeholders to ensure that all

parties honour their side of the bargain.

130. Notwithstanding Section 3(3) and 3(10) of the National

Pensions Act, 2008 (Act 766), we noted that statutory deductions in

respect of Social Security and National Insurance Trust for the



purposes of Tier 1 and 2 pensions of the staff were not being paid on

time.

131. We recommended that to minimize the risk of interest and

penalties on late filing and payments, the Authority should ensure

that returns are filed before the deadline and all required payments

are made on a timely basis.

132. In contravention to Section 42(1) of the National Health

Insurance Act, 2012 (Act 852) we noted that as part of its budgeting

process, the Authority sets aside funds to support programmes and

institutions referred in the financial statements as support to partner

institutions. Beyond disbursement of these funds to the various

institutions/entities, no procedure is in place to ascertain that the

funds are being applied for the intended purpose. We recommended

that the Authority institutes a mechanism that allows them to receive

feedback from implementing partners on how the funds advanced to

them have been used and also a progress report on the various

projects and programmes.

133. Contrary to Section 112(1a) of the National Health Insurance

Act, 2012 Act 852, we noted that though the revised National Health

Insurance Act was passed in October 2012, a key transitional

provision regarding the dissolution of the District Mutual Health

Insurance Schemes (DMHIS) which were hitherto operating as

companies limited by guarantee was not done as at December 2013.

We recommended that Management should intensify efforts at fully

integrating the activity of the DMHIS especially in the aspect of

financial reporting.

134. In violation of Section 57(2&3) of NHIA, 2003, we noted that

the financial statements of all the 60 District schemes visited for the



years 2012 and 2013 were not audited by independent external

auditor(s). We recommended that as management work towards a

full integration of the schemes into the Authority under the revised

Act, management should get financial statements of the schemes

audited to the year ended 31 December 2013 so that the balances will

be taken on the consolidated report of the Authority from 2014

onwards.

135. We noted a difference of GH¢55,315.44 between amounts of

salary support in the books of the Authority and what has been

actually received by three Schemes in respect of the 2012 financial

year. We recommended that management of the scheme should liaise

with management of the Authority with the view to establish causes

of the differences to enable them rectify the anomaly.

136. In contravention to Regulation 22(1) of FAR 2004, (LI 1802)

we noted a difference of GH¢23,887.90 between premium collections

per cash book and the amounts banked in 2 Schemes visited. We also

noted at Asunafo North that 10% of the premiums collected

amounting to GH¢7,417.00 was deducted as commission before

depositing the balance into the bank account. Management should

ensure that all premiums collected are paid in gross into the

remittance account in a timely manner.

137. Eleven GCR booklets with serial numbers ranging from

1882901 to 1884000 were not found in the GCR register at Builsa

National Health Insurance Scheme. We recommended that there

should be timely review and reconciliation between the GCR waybill

and the GCR register to ensure that all GCR received from head

office have been properly accounted for. Further, management

should follow the where about of the 11 GCRs in question.



138. Contrary to Regulation 15(1) of FAR 2004 a review of the Ga

Mutual bank reconciliation statements of the administrative account

indicated an outstanding processing fee of GH¢26,187.00 that had not

been banked as at the year-end 2012. Management should ensure

that the schedule officers pay back the amount into the scheme

account.

139. We observed differences between the total control receipt

issued per premium collected and that of the premium collection

deposited in the sweeping account of NHIA as per collection reports

at Tamale Municipal Mutual Health Insurance Scheme. We

recommended that management should retrieve the control receipts

to enable us confirm the completeness of the collection report.

140. Our review of sampled medical claims paid in 2012 and 2013

at East Gonja District, Mfantsiman and West Mamprusi District,

revealed the absence of vetting report by the medical claims

manager. We recommended that vetting reports by the claims

Department should be attached to the payment voucher for review

by the accounts department before authorization and approval by

the Scheme manager.

FOOD AND DRUGS AUTHORITY

141. A separated staff was paid unearned salary of GH¢1,341.96

due to management’s failure to promptly notify his bankers, coupled

with the Controller and Accountant General’s Department’s delay in

deleting his name from the payroll. We advised management to

recover the illegal payment and pay same to chest.

PHARMACY COUNCIL

142. Contrary to Regulation 298 of the F.A.R. 2004 L.I.1802, two

separated staff were paid unearned salary of GH¢1,857.74. We



recommended that management trace the officers to recover the

amount involved and pay same into the consolidated fund.

143. Madam Marian Torjagbo, an Inspecting Pharmacist resigned

from the Council on November 2013 after completion of her studies

without either serving the Council for the stipulated period nor

refund the amount of GH¢61,668 to the Council for breach of the

contract. We urged management to pursue the matter and recover

the GH¢61,448.00 to Government chest without delay.

GHANA COLLEGE OF PHYSICIANS & SURGEONS

144. In contravention of Regulation 295 of the FAR and

Regulation 5 of the Retention of Funds Act, 2007, management paid

salary related allowances amounting to GH¢507, 240.95 to staff

members from their Internally Generated Funds (IGF) for the period

under review without any approval from the Minister of Finance.

We recommended that management should seek retrospective

approval to allow the payment of GH¢507,240.95 stand charged to

the account.

NURSING AND MIDWIFERY COUNCIL

145. The Western Regional Accountant failed to account for

revenue amounting to GH¢96,882 out of GH¢115,882.00 collected for

the period May 2013 to December 2014. Additionally, we noted

forged Bank of Ghana stamp on some pay-in slips supposedly used

for lodgment of cash to the bank. We recommended to Management

to recover the amount involved with interest at the prevailing bank

rate and take disciplinary action against the Accountant as provided

in Regulation 8 of the Financial Administration Regulation (FAR),

2004 (L.I. 1802).



146. Similarly, we noted that 4 Regional Accountants at the

Council’s Regional offices also did not lodge in full revenue collected

amounting to GH¢224,821.50. We recommended to Management, to

institute measures that would compel Accountants to promptly

lodge all revenue collections within the stipulated time. Meanwhile,

the Regional Officers whose Accountants were involved should

ensure they refund the moneys with interest and disciplinary action

taken against them.

147. Okore Technologies who supplied furniture to the Council

was paid GH¢350,000 (representing 50% of the contract sum) as

mobilization in contravention of the terms of the contract which does

not require the payment of mobilization. We urged management to

comply with the terms of the contract to prevent recurrence of the

practice in future transactions.

148. Three Canon IR 4045 Photo Copiers totaling GH¢123,994

were procured from Kanakgold Info Tech in 2014 without

competitive tendering as required by Section 35 of the Public

Procurement Act (PPA). To mitigate the risk of not obtaining value

for money, we recommended to Management to ensure that the PPA

is followed to the letter.

149. A contract awarded for the procurement of stationary valued

at GH¢420,328.00 was fragmented into five lots to avoid the process

of competitive bidding and awarded to five contractors, thus

circumventing the procurement procedures. We recommended to

Management to conform to the dictates of the Act in all future

dealings and the Procurement Unit whose inaction resulted in the

anomaly sanctioned.



MINISTRY OF TRANSPORTATION

GHANA RAILWAY DEVELOPMENT AUTHORITY

150. Contrary to Section 32(1) and 33(1) of the Railway Act 2008

(Act 779) the Authority is yet to take over the assets and liabilities of

the Ghana Railway Company Limited (GRCL). We recommended

that the Board of GRDA through the sector Ministry to collaborate

with the Board of GRCL for implementation of all aspects of the Act.

151. Contrary to Section 22-25 of the Railway Act 2008, (Act 779)

funds transferred into the Railway Development Fund amounting to

GH¢205,993.15 were only from sale of tender documents rendering

the sustainability of the Fund very risky. Additionally, management

had not set up the Fund Management Committee. We recommended

that the board should ensure that a Fund management committee is

set up and the funds should be invested in fixed deposit.

MINISTRY OF ROADS AND HIGHWAYS

GHANA HIGHWAY AUTHORITY

152. We observed that there was no documentation covering the

acquisition of land at the Head Office. We recommended that

management should follow up on all the necessary documents on the

property.

MINISTRY OF WATER RESOURCES, WORKS AND HOUSING

TEMA DEVELOPMENT CORPORATION

153. Contrary to a resolution passed by the Board to close six bank

accounts at Standard Chartered Bank we did not sight any

correspondence to the effect that the bank has closed the accounts

and transferred the balances to Tema Development Corporation

(TDC). We recommended that management should take the



necessary steps to follow this issue to recover the monies from the

Bank.

154. Even though TDC are now in possession of Adjei Kojo land

of a total acreage of 111.53 which is made up of about 839

uncommitted plots, these properties were not included in the

schedule of TDC assets. Management must update its assets register

by including these properties for close monitoring.

STATE HOUSING COMPANY LIMITED

155. Trade debtors of GH¢557,707 for Greater Accra Region are

aging debtors which have been in the books since 2000. We

recommended that debt recovery efforts should be strengthened to

ensure trade debtors comply with the terms stipulated. Also,

management should analyse the aging debtors and take action on the

irrecoverable debts.

156. Prices at which two houses were sold were noted to be below

the approved selling prices. Additionally, profit margins realized

from the sale of these houses were below the Company’s profit

margins threshold of 40% as a result of high cost of building houses.

We urged management to institute appropriate internal control to

ensure that all houses are sold at current prices and proper cost

management system is introduced to reduce the cost of building

houses.

157. We observed that a land dispute at Kagyase (the only land

available for building in the zone) has affected the Company’s

operation in the Ashanti Region. We witnessed a vast portion of the

land had been occupied by encroachers on our site visit. We

recommended to management to secure the land in the zone as these

lands are strategically important to revamping of the company.



158. We noted that accumulated balance on statutory deductions

totaling GH¢273,854.00 had not been settled in contravention to

Section 87(1) of the Internal Revenue Act 2000 (Act 592). We urged

management to ensure that all outstanding statutory deductions are

paid without further delay.

MINISTRY OF COMMUNICATION

NATIONAL COMMUNICATIONS AUTHORITY

159. Despite our previous recommendation and the requirement

for license issued to operators of TV, Commercial FM Stations and

Internet Service providers (ISPs) to be renewed every five years, we

noted that 14 ISPs had not had their licenses renewed as at the end of

2014. We continue to urge management and the Board of Directors to

quicken the process of having these expired licenses renewed.

160. We noted that payments on Capital projects as at year end 31

December, 2014, exceeded the authorized amounts approved by the

Central Tender Board by GH¢1,279,895. We urged management to

liaise with the consultant on the projects as well as the contractors for

the Takoradi and Airport City projects to come out with the

necessary revision to the cost to completion for effective budgeting

and also to reflect the true Capital Commitment.

GHANA PUBLISHING COMPANY LIMITED

161. Withholding taxes totaling GH¢2,278.44 deducted from

allowance paid had not been remitted to the Commissioner, Ghana

Revenue Authority (GRA) contrary to Section 87 of Act 592. We

recommended that the tax withheld should immediately be remitted

to the GRA and ensure that in future all taxes withheld are paid

promptly to GRA.



GHANA POST COMPANY LIMITED

162. The Company had not marked a large number of its assets at

different locations with the company’s identification marks or tags.

We recommended that management should ensure that all assets

owned by the Company are appropriately identified with tags or

identification marks for easy monitoring and avoidance of

unauthorized disposition of these assets.

163. In spite of recommendation made in our previous report,

management is yet to acquire title deeds for its landed properties

across the country. We recommended that efforts should be made by

management to register all landed properties of the company within

a defined time frame.

POSTAL AND COURIER SERVICE REGULATORY

COMMISSION

164. The Commission failed to include in its Internally Generated

Fund (IGF) budget estimates a total of GH¢56,742.00 paid as

advances and allowances in 2012 and 2013 in breach of Section 5a of

the Retention Funds Act, 2007. Failure to budget for expenditure

could result in budget overruns. We recommended that management

should include all expenditure in their future budget estimates to

ensure that set targets are met.

165. Our audit revealed that Mr. Isaac Annan Riverson a Board

Member of the Commission has been acting as the Executive

Secretary since December 2012. This contradicts the Public Service

Commission Circular Number PSC/APD/01 dated 10 June 2005

concerning acting appointment. We urged the Board as a matter of

urgency to expedite action on the appointment of substantive

Executive Secretary without further delay.



166. Examination of the fixed assets revealed that the Postal &

Courier Service Regulatory Commission does not have any policy on

depreciating its fixed assets which contradict Regulation 53 of the L.I.

1802. Failure to depreciate the fixed assets has resulted in

overstatement of fixed assets value on the face of the financial

statement. We urged management to expedite action in deciding on

the depreciation policy without further delay.

MINISTRY OF FOOD AND AGRICULTURE

IRRIGATION DEVELOPMENT AUTHORITY

167. Contrary to Regulation 183 (4) of the FAR, 2004 (L.1.1802) we

observed that items totaling GH¢10,147.20 procured during the year

2012 were not made from VAT registered persons. We recommended

that management should comply with the Financial Regulation and

only procure from VAT registered suppliers.

PROGRAMME FOR THE PROMOTION OF PERENNIAL CROPS

IN GHANA – MINISTRY OF FOOD AND AGRICULTURE

(AFD LOAN NO. 6008.01 L, GRANT NO. CGH6008.02 M

AND KFW LOAN BMZ – NO. 2005 65572)

168. Apart from the counterpart funding disbursed by the GOG,

other contributions made by GOG to the project were not quantified

and captured as contribution of GOG to the project. Contracts and

disbursements made directly by Donors were also not captured in

the books of the PCU. We recommended that the PCU, with support

from the Ministry of Finance, should as much as practicable

determine and quantify all contributions made to the project by the

GOG and Donors and should be recognized as GOG contribution to

the project.

169. Contrary to the terms of the subsidiary programme



agreements with the GOG, represented by the Ministry of Finance,

an interest element of €2.3 million accruing on the on-lent

agricultural credit component of €5.95 million disbursed to financial

operators had been shown in the programme’s financial statements.

We recommended that the accrued interest of €2.3 million should be

reversed in the financial statements in 2015.

170. The programme did not maintain a Contract register to

record all commitment for contracts signed by the PPPCG and third

parties. We recommended that the PCU should record all

commitment for contracts signed by the PPPCG and third parties in a

register, which should be updated regularly to reflect the status of

contracts, signed by the programme.

CORAF/WECARD COMPETITIVE PROJECTS – SUSTAINABLE

INTENSIFICATION INTEGRATED CROPS SMALL RUMINANT

PRODUCTION SYSTEMS IN WEST AFRICA – GHANA

(SIICSRP – W/A – GH)

171. Contrary to Crops Research Institute policy of paying 10%

shares of total project sum towards Institutional Support, we noted

that from November 2011 to March 2015, the Project paid

GH¢22,860.41 to the Council instead of GH¢132,608.68, a shortfall of

GH¢109,748.27. We therefore advised management to ensure

compliance of Institutional policies.

CORAF/WECARD COMPETITIVE PROJECTS – PLANTAIN

(NO. CW03/01CP/C0/09 – 1.3)

172. Contrary to Crops Research Institute’s policy of paying 10%

shares of total project sum towards Institutional Support, we noted

that from January 2011 to 31 December 2014, grants totaling

GH¢125,700.55 was received by the Institute but there were no

deductions made for the Institute in fulfillment of the policy. We



therefore advised management that all policies relating to

Institutional support from projects are fully implemented.

CORAF/WECARD COMMISSIONED PROJECT – RICE YELLOW

MOTTLE VIRUS (RYMV) PROJECT

(NO. CW/03/01CM/U/09)

173. We noted that, GH¢6,476.80 which represented 10% of the

total grants received were not paid to the Institute as required by

their policies. Only GH¢936.33 was paid in 2011, representing 14.5%

of total sum received. We therefore recommended that, management

should ensure that Institutional policies are adhered to.

CSIR –CRI CORAF/WECARD

WEST AFRICA SEED PROGRAM (WASP)

(NO. AID-624-A-12-00007)

174. We noted during the audit of the project that, an amount of

GH¢6,286.83 was overdrawn on the project account at Ecobank

Ghana Limited. We therefore recommended that, management

should ensure that payments for the project should be within the

limit of the project.

NATIONAL BUFFER STOCK COMPANY LIMITED

175. We noted that NAFCO was charged GH¢2,602.03 penalties

by SSNIT for late payment of staff contributions. We recommended

that management should ensure that pension deductions are paid to

SSNIT by the 14 day of the subsequent month as required by Section

63(1) of the National Pensions Act 2008, Act 766 to avoid recurrence.

176. Management is yet to provide documentation to support the

award of contract signed between MOFA and FH&C Company

Limited, a contracting firm to renovate the Head Office building of



NAFCO at a contract price of GH¢296,785 despite our previous

recommendation. We reiterated our earlier recommendation.

177. Contrary to Section 66(1) of the Companies Act 1963 (Act 179)

on what constitute stated capital, NAFCO could not provide

sufficient evidence to support the opening stated capital of

GH¢100,000 and reserves of GH¢14,900,000 reported on the balance

sheet. Management should provide adequate supporting

documentation for the opening stated capital of GH¢100,000 and

reserves of GH¢14,900,000 reported.

178. Out of GH¢55,989 granted as advance to Tamale office for its

operation only GH¢34,294 was retired leaving a balance of

GH¢21,695 unaccounted for. We recommended that the unsupported

amount of GH¢21,695 should be refunded by the Tamale Office if

supporting documents cannot be provided.

RURAL ENTERPRISES PROGRAMME INTERNATIONAL FUND

FOR AGRICULTURAL DEVELOPMENT (LOAN NO. 841 GH)

179. Contrary to Section 1.4.1 of the Manual for Rural Enterprise

Development Fund (REDF) and matching Grant Fund (MGF) which

requires the Participating Financial Institutions (PFIs) to submit

quarterly report we noted that, some PFIs who received the REDF

and the MGF on behalf of the clients did not submit their quarterly

returns to the PCMU. We recommended that the PCMU should step

up its monitoring efforts to ensure the PFIs submit their quarterly

returns on time.



MINISTRY OF EMPLOYMENT, LABOUR AND

MANPOWER

NATIONAL PENSION REGULATORY AUTHORITY

180. Management authorized the payment of unbudgeted amount

of GH¢139,648.86 from its Internally Generated Funds (IGF) as end of

year bonus to staff members, in violation of Section 5(a) of the

Retention Act, Act 584 beside not seeking approval from the Minister

of Finance. For the amount to stand charged to the account, approval

should be sought from the Minister or the amount should be

recovered to chest.

181. The accounts office did not maintain personal ledgers to

adequately monitor recoveries of advances and loans granted to staff

members. Management was advised to keep personal ledgers to

ensure proper monitoring of recovery of outstanding advances to

avoid loss of fund.

182. In contravention of Section 30(1) of the Audit Service Act

2000, (Act 584), management failed to constitute an Audit Report

Implementation Committee (ARIC). We recommended that

management should liaise with the governing body to establish an

ARIC as required to ensure that recommendations in audit and other

monitoring reports are implemented to enhance sound financial

management.

NATIONAL VOCATIONAL TRAINING INSTITUTE

183. Management’s failure to effectively supervise revenue

collection resulted in the Cashier of the Institute not banking a total

amount of GH¢5,763.44 at the end of the financial year. This was

caused by delayed lodgement of revenue collected totalling

GH¢67,103.85 for periods ranging between three to 73 days in



contravention of Regulations 15 & 48 of the Financial Administration

Regulations, 2004 (L.I. 1802). We recommended that management

should ensure that the Cashier complies with the regulation by

lodging revenue collected promptly to avoid any revenue loss.

Meanwhile management should ensure that the amount involved is

recovered from the Cashier and banked.

184. Debtors schedule of the Institute indicated that only 12 out of

42 staff who were granted loans/advances totalling GH¢32,582.04

between 2011 and 2012 paid back GH¢1,725.64 leaving GH¢30,856.40

in arrears as at 31 December 2012. The delay in recoveries ranges

between one to two years. The foregoing situation contravened

Regulation 113 (1) of Financial Administration Regulations, 2004 (L.I.

1802). We urged management to introduce and strictly enforce a

recovery schedule to ensure timely settlement of the outstanding

advances through direct payment by the affected staff.

185. Mr. Anyetei Benjamin who retired from the Institution

enjoyed an unearned salary totalling GH¢2,174.12 during the period

under review. Even though management made efforts and informed

the Controller and Accountant-General Department (C&A-G Dept.)

for the deletion of name, the C&A-G Dept. delayed for two months

before deletion was effected from the payroll, resulting in the

payment of the unearned salary. We urged management to expedite

actions to recover the amount, pay same to Government chest and

obtain a Treasury Receipt for verification by our office.

186. Equipment purchased during the period reviewed were

distributed to user departments without proper documentation. Our

physical inspection revealed that, locations of the equipment as

indicated by records from the Stores Department and the General

Services Department differs from the actual location of the

equipment. We recommended that management should ensure the



Stores Department and the General Services Department (GSD)

update the inventory register to reflect the appropriate location of

the equipment.

MINISTRY OF JUSTICE AND ATTORNEY GENERAL

COPYRIGHT OFFICE

187. The Copyright Office has not constituted or developed any

risk management policy or disaster recovery plan. We recommend to

management to ensure that risk awareness is included in its culture

and establish a backup system.

188. During the year under review, management received

percentage of the blank levy which was not budgeted for and spent

accordingly. We recommended that all expected income and

expenditure should be budgeted for.

189. We observed during our audit that Copyright Office has not

developed a collective bargain agreement upon which allowances are

paid. We recommended to management to ensure that such

document is put in place as guide in the administering of the office.

190. The supervising officer failed to abide by the Financial

Regulation Act by signing the stores issue voucher. In our

recommendation we advised the accountant to exercise supervisory

authority to prevent possible pilfering of stores items.

191. Our audit revealed that two staffs who retired and resigned

from Copyright respectively had their names on the payroll for 12

months before been deleted. We recommended to management to

retrieve the amount of GH¢14,556.92 from the separated staffs or

their banks.

ECONOMIC AND ORGANIZED CRIME OFFICE (EOCO)

192. Instead of US$366,985.00 and GH¢646,188.35 ordered by the



court to be paid from the EOCO exhibits Account to an applicant, an

amount of US$986,024.16 and GH¢646,188.35 were transferred,

leading to an excess transfer of US$619,039.16 without authority. We

urged management to recover the excess funds of US$619,039.16 or

provide justification for the transfer of the amount.


Regulation (FAR), 2004 (L.I. 1802), six separated staff who retired in

2013 and 2014 enjoyed unearned salaries totaling GH¢22,067.78. We

recommended that efforts be made by management to recover the

total amount.

194. An amount of GHȼ4,577.63 representing staff debtors

remained on the statement of financial position for the past five years

without any movement. We advised management to trace the

officers involved for recovery or seek authority from the Ministry of

Finance through the Sector Ministry with adequate justification for a

write off of any irrecoverable debt.

195. Similarly, a total amount of GH¢17,254.63 shown as creditors

remained on the financial statement without any movement since

2009. We recommended that management investigate and pay off

the liability without further delay to enhance financial discipline.

196. The office operated and conducted business with draft

policies which are yet to receive the governing board’s approval. We

advised that, the Board’s approval should be immediately sought to

officially authorize the policies for enforcement.

197. We noted that no Inventory Register was maintained to

record furniture and office equipment of EOCO. We recommended

that the Estates and Accounts Department should take the

appropriate steps to record all the assets at the Head Office and



Regions in an Inventory Register to enhance effective management of

their assets.

LEGAL AID SCHEME

198. Though management promptly notified the Controller and

Accountant General Department (C&AGD) for the deletion of the

names of two separated staff, however, lack of effective

communication with their bankers for the stoppage of the payment

of their salaries resulted in the payment of unearned salary totalling

GH¢6,958.27. We recommended that efforts be made by management

to recover the total amount of GH¢6,958.27 from the separated staff

failing which, the Accountant should be surcharged.

199. Management misapplied GH¢91,969.60 on staff advances or

loans out of funds meant for Goods and Services. We advised

management to desist from the practice since it constitutes

misapplication of funds which could impact negatively on the

operations of the organisation.

MINISTRY OF TOURISM, CULTURE AND CREATIVE

ARTS

GHANA TOURIST BOARD

200. Land title certificate indicating ownership must be obtained

from the title registry for land acquired. Contrarily, we observed that

the organization did not have title certificate to the land that the head

office is situated on. We recommended that management must

ensure that the land is properly registered.

201. Contrary to the Internal Revenue Act 2000(Act 592) Section

87(1), and SSNIT law a total amount of GH¢479,163 representing

income tax and SSNIT contributions deducted from employees was



not paid to the appropriate bodies. We recommended that

management should ensure that the deductions are paid to the

appropriate bodies.

202. The Internal Audit Unit did not have an audit programme

guiding its operations in violation to Section 16 (3) of the Internal

Audit Agency Act. We recommended that the head of internal audit

department should prepare a comprehensive audit programme to be

followed in the conduct of the audit assignment.

ABIBIGROMMA THEATRE COMPANY

203. A retired staff was paid an unearned salary of GH¢3,212.75

due to management’s non-adherence to Regulation 297 of the FAR,

2004, (L.I.1802). We recommended the recovery of the amount

failing which the Accountant, whose negligence resulted in the lapse

should be surcharged with the amount involved.

204. The Company did not pursue proactive measures to enable

them achieve their revenue targets by failing to liaise with the Ghana

Education Service to ascertain assigned textbooks in the approved

syllabus so as to base their performances on the textbooks. We

advised management to be proactive in their dealings with the

relevant stakeholders.

KWAME NKRUMAH MEMORIAL PARK

205. We considered the control over value books to be inadequate

as the Supervisor continues to issue roll of tickets to Revenue

Collectors even when previous ones had not been fully accounted

for. We recommended to management to ensure the completion and

accounting of one roll/booklet before the issuance of the next one.

206. Owing to poor supervision, tickets valuing GH¢5,591.00 sold



at the gate of KNMP were not accounted for. We recommended that

management recover the amount involved from the Revenue

Collector, Mr. Quansah and pay same into the account and our office

informed for verification.

NATIONAL COMMISSION ON CULTURE

207. The absence of stringent contract control resulted in the

payment of GH¢22,000.00 to PWD (Prestige) for work done at a

proposed Craft Village at Kawukudi, near 37 Military Hospital

without a Consultant’s certificates as well as not entering it in a

contract register to monitor payments. Failure to comply with the

control procedure could lead to abuse of the system and payment for

work not done. We advised management to provide the certificate(s)

substantiating the level of work done for which the contractor

deserves the payment.

208. Contrary to Section 48(2) of the Financial Administration

Regulation (FAR) 2004, (L.I.1802) management made cash payment

of GH¢17,500.00 to Mr. William Boateng for the production of

sculptures and paintings for the AU Conference centre in Addis

Ababa, Ethiopia. Control procedures provided for in the Regulation

to secure optimum value and Parliament’s intention was not

followed. To prevent loss of public funds, we advised management

to enforce appropriate payment procedure in such circumstances.

209. The Accountant failed to obtain official receipts totaling

GH¢23,227.59 from service providers of the Commission in violation

of Regulation 15 of the FAR. To ensure accountability and

transparency, we advised the Accountant to obtain the receipts from

the suppliers serving as evidence of payment, failing which the

amount involved should be accounted for.

210. Management disregarded Section 48(2) of the FAR L.I.1802



by making cash payments to the tune of GH¢18,400.00 instead of

cheque. This led to non-payment of tax amounting to GH¢920.00. We

advised management to recover the tax and pay same to the

Domestic Tax Revenue Division (DTRD) of the Ghana Revenue

Authority (GRA) and in future, adhere to the regulation by making

payments with cheques.

211. Management failed to provide ownership documents, a proof

of ownership to cover two vehicles of the Commission. The absence

of ownership documents indicates that the Commission does not

own these vehicles legally. We advised management to obtain the

necessary ownership documents to avoid litigation.

MINISTRY OF LANDS AND NATURAL RESOURCES

OFFICE OF THE ADMINISTRATOR OF STOOL LANDS (OASL)

212. A Collector of the Commission failed to account for revenue

totaling GH¢1,615.00. Further investigations disclosed that the

collector, Mr. Koomson died on 21 May 2012. We recommended that

management should retrieve the GH¢1,615.00 not accounted for from

the guarantors of the late Paul Koomson.

213. The Greater Accra Regional Accountant failed to maintain a

cash book to record payment by various revenue collectors in the

District before lodging the cash to bank. We could therefore not

determine the daily collections from the District and subsequent

lodgment to bank at the Regional Office. We urged management to

ensure that a summarized revenue cash book is maintained at the

Regional Office in order to keep track of all revenue collected from

the Districts and subsequent payment to bank.

214. Payment of withholding tax (WHT) deductions of GH¢



755.40 for the period February 2012 to December 2012 to the

Commissioner of the Domestic Tax Revenue Division(DTRD) of the

Ghana Revenue Authority (GRA), had been unduly delayed for

periods ranging between 20 and 10 months. We recommended that,

management of the OASL, GAR remit to the Commissioner without

further delay the withholding tax of GH¢ 755.40 to avoid sanctions.

215. Fuel worth GH¢3,275.00 purchased for the running of the

official vehicle number GN 558 Z in 2012 was not accounted for in

the vehicle log book. We urged the driver to record all future fuel

purchases as well as journeys made in the vehicle logbook to ensure

transparency and accountability.

MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY


Regulation (FAR) 2004, (L.I.1802), the Authority failed to transfer a

total amount of GH¢552,955.19 generated as non-tax revenue during

the 2013 and 2014 into the consolidated fund. We recommended that

management should transfer the unpaid Non Tax Revenue and all

future revenue into the appropriate Consolidated Fund account

without any further delay and inform our office for verification.

217. Revenue totalling GH¢138,362.00 collected in respect of

renting of facilities for the period under review was not banked in

contravention of Regulation 15 of the FAR (L.I.1802). We

recommended that management should ensure that the Revenue

Collectors desist from this practice and comply with the regulations

by lodging revenue collected promptly to avoid any revenue loss.

Meanwhile the revenue of GH¢138,362.00 should be banked and our

office informed for verification and the culprits disciplined as stated



in Regulation 8(1) of the FAR.

218. Three General Counterfoil Receipts (GCRs) books which

were used to collect total revenue of GH¢2,150,738.73 were not made

available for our examination. We could therefore not authenticate

whether the revenue entered in the cashbook were actually what was

receipted. We urged management to make the receipts books

available for inspection without further delay.

219. Contrary to Regulation 28 of the L.I.1802, 54 payments

totalling GH¢726,954.95 made by the Authority were not covered by

receipts. In the absence of valid receipts to authenticate the

payments, we recommended that the payments should be

disallowed and the paying officer be surcharged with the amount

involved.

220. Management of the Authority failed to submit 49 payment

vouchers amounting to GH¢279,689.78 in respect of the 2013 and

2014 financial years for our examination. We could therefore not

ascertain whether the payments were authorized and approved

before they were incurred. We recommended that, management of

the National Sports Authority produces the payment vouchers for

our examination or consider the payments disallowed and the total

amount refunded by the Accounts officers responsible.

221. Contrary to Section 87 of the Internal Revenue Act 2000 (Act

592), management failed to remit to the Commissioner of Domestic

Tax Revenue Division (DTRD)of Ghana Revenue Authority (GRA)

an amount of GH¢7,055 .00 that was withheld on a transaction. We

recommended that management should remit the amount of

GH¢7,055.00 to the Commissioner of DTRD of GRA without further

delay and submit the receipt to our office for verification.



222. We observed that officers who were granted loans and salary

advances totalling GH¢43,722.07 between 2008 and 2014 paid back

only GH¢5,213.72 leaving GH¢38,498.35 in arrears as at 31 December

2014. The foregoing situation contravened Regulation 112 & 113 (1)

of Financial Administration Regulations (FAR), 2004 (L.I. 1802). We

urged management to introduce and strictly enforce a recovery

schedule to ensure timely settlement of the outstanding advances

and loans.

223. Examination of the noncurrent assets at the Authority

revealed that, the National Sports Authority does not have any

policy on the depreciation of its fixed asset, contrary to Section 53 of

the Financial Administration Act 2003. We advised management to

expedite action in deciding on the depreciation policy for its fixed

assets without further delay.

224. Our visit to Kumasi revealed that an office rented to Ghana

Post has been sub-let to Fidelity Bank without a rent agreement

covering the rental leading to inconsistency in the payment of the

rent by the occupant. We recommended that the Authority should

have a well-documented rent agreement with Ghana Post and

subsequently obtain and review the partnership agreement between

Ghana Post and Fidelity Bank to ensure that the rent amount is

accurately paid.

225. Visits to three project sites of AngloGold-Ashanti funded

multipurpose courts revealed that, the courts have developed cracks

and the paint used for the marking of the various courts has started

fading off due to non-maintenance of the multipurpose courts. We

recommended that efforts be made by management to ensure that

the Courts are constantly maintained to avoid further deterioration.



EXTRA MINISTERIAL AGENCIES

ELECTORAL COMMISSION

226. Management could not produce a list of motor vehicles

disposed off during the year costing GH¢402,328. We urged

management to document all its assets to be able to track their

existence.

227. Contrary to the provisions of Regulation 39 of the Financial

Administration Regulations transactions totaling GH¢18,785.10 from

five regions were not properly authenticated. We recommended that

the Regional Accountants should ensure transactions are supported

with relevant documents failing which the respective schedule

officers should be made to refund the amount involved.

NATIONAL POPULATION COUNCIL (NPC)

228. We noted during the audit that an amount of twenty-three

thousand one hundred Ghana cedi (GH¢23,100.00) given to eight

regions in connection with celebration of world population day is yet

to be accounted for. We therefore recommended to management to

ensure that the regions involved are made to account for the money


229. Our review of financial statements revealed that,

management had never depreciated any of its non- current assets in

contravention with Financial Administration Act 2003 and good

accounting practice. We recommended to management to adhere to

the above Act and adopt a good accounting practise to sustain the

organization.

230. We further advised management to decide on appropriate

method and rate for depreciating its non- current assets and inform

our office for verification.



231. We observed that the Council had no asset register in which

it records its asset. We recommended that management prepared

and maintained an asset register to control its numerous assets.

KOFI ANNAN INTERNATIONAL PEACEKEEPING

TRAINING CENTRE (KAIPTC)

232. We noted that account receivables for the year under review

increased significantly by 136.3% from a balance of GH¢934,204 in

2013 to GH¢2,207,857 in 2014. We further noted that, staff debtors

and accrued income increased marginally but Trade debtors alone

was GH¢1,769,537 (2013: GH¢76,008) a rise of 2,228.1%. We therefore

recommended that, a credit control team should be put in place to

ensure speedy recoveries of all outstanding debts.



PART III

DETAILS OF FINDINGS AND RECOMMENDATIONS

MINISTRY OF ENERGY AND PETROLEUM

GHANA NATIONAL PETROLEUM CORPORATION

Introduction

233. This report relates to the audited consolidated Financial

Statements of the Ghana National Petroleum Corporation Group for

the year ended 31 December 2013 and 2014.

Operational results

234. The Corporation’s operations for the year under review

ended with a profit of GH¢590,327,256 compared with

GH¢341,783,338 in 2013, representing an increase of 72.7% improved

performance. The detailed performance indicators are shown in

Table 1.

Table 1: Consolidated Statement of Profit and Loss for the year

2014

2014 GH¢

2013 GH¢

% Change

Sales Revenue 624,716,101 568,331,230 9.9

Cost of Sales (192,006,635) (209,232,047) (8.2)

Gross Profit 432,709,466 359,099,183 20.5

Other operating Income 327,540,566 90,667,307 261.3

Share of Profit of Joint Venture

423,881 (325,571) (230.2)

Total Income 760,673,913 449,440,919 69.2

Expenditure



Loss from Refined Product

34,291,716 9,078,240 277.7

General & Administrative Expenses

87,113,306 67,569,653 28.9

Petroleum Project Expenditure

48,754,179 26,965,435 80.8

Finance Charges - 3,991,049 -

Share of Associate Loss 166,256 53,204 212.5

Income Tax Expenses 21,200 - -

Total Expenditure 170,346,657 107,657,581 58.2

Net Profit 590,327,256 341,783,338 72.7

235. Total Income went up by 69.2% from GH¢449,440,919 in 2013

to GH¢760,673,913 in 2014. The increase was mainly due to 261.3%

and 230.2% increases in Other Operating Income and Profit from

Joint Venture respectively over the previous year figures.

236. Total Expenditure for the year increased by 58.2% from

GH¢107,657,581 in the previous year to GH¢170,346,657 in 2014. This

was due to increases in all Expenditure Line Items with exception of

finance charges.

Financial position

237. A summary of the corporation’s Group financial position as

at 31 December 2014 is presented in Table 2.



Table 2: Consolidated Statement of Financial Position as at 31

December 2014.

Income

2014 GH¢

2013 GH¢

% Change

Non-current Assets 1,163,676,880 765,158,569 52.1

Current Assets 1,150,646,195 355,655,545 223.5

Current Liabilities 324,754,620 33,517,652 868.9

Non-current Liabilities 411,287,762 98,529,342 317.4

Net Current Assets 825,891,575 322,137,893 156.4

Net Assets 1,578,280,694 988,767,120 59.6

Current Ratio 3.5:1 10.6:1

238. Non-Current Assets increased by 52.1% from GH¢765,158,569

in 2013 to GH¢1,163,676,880 in the current year under review. The

rise was due to investment in TEN Projects and additions to Non-

Current Assets.

239. Current Assets went up significantly by 223.5% from

GH¢355,655,545 in 2013 to GH¢1,150,646,195 in 2014. This was as a

result of increases in all component items of the current assets over

the previous year’s amount.

240. Current Liabilities also increased by 898.9% from

GH¢33,517,652 in 2013 to GH¢324,754,620 in 2014. This was due to

1082.7% increase in Trade and Other Payables over the previous year

figure.

241. The Current ratio of the Corporation though decreased from

10.6:1 in 2013 to 3.5:1 in 2014, it still shows that the corporation is

capable of meeting its short-term obligations as and when they fall

due.



MANAGEMENT ISSUES

Imprest not Accounted for – US$42,300.00 and GH¢35,415.00

242. Contrary to Regulation 288(1) of FAR, 2004, we noted that

various advances totalling US$42,300.00 and GH¢35,415.00 granted

to officials to undertake various activities for the corporation had not

been accounted for as at 31 December 2014.

243. Management failed to effectively monitor the retirement of

imprest hence the lapse. We were, therefore, unable to authenticate

whether or not the amount was used in the interest of the

corporation.

244. We recommended that management should make the

necessary efforts to have the responsible officials retire the imprest or

recover the balances by debiting the outstanding amount to their

individual personal accounts in accordance with FAR 288(1).

245. According to management, steps are taken to ensure that

staffs conform to the laid down procedures.

246. Additionally, we have introduced the use of electronic cards

to effect payments that eliminates the need for imprest. The use of

these cards ensures that the expenditures are captured and

accounted for in the period in which they are incurred.

Failure to conduct audit of the Petroleum Operations

247. In our previous report, management’s attention was drawn

to the fact that Section 18.6 of the Petroleum Agreements which

empowers GNPC to audit the operations of the partners in the oil

industry was not complied with. However, this matter has still not

been addressed.



248. This was due to non-enforcement of the terms of the

Petroleum Agreement. Without an audit GNPC cannot assure itself

that partners are prudently utilising the funds advanced to them.

249. In our view, the payments for the cash calls to the Petroleum

operators are advances to them to undertake transactions on behalf

of GNPC. There is therefore the need for an audit to assure GNPC

that the operators have faithfully discharged their fiduciary

responsibilities.

250. We therefore urged Management to exercise the right to

audit the Petroleum Partners without further delay.

251. Management responded that consistent with the

corporation’s rights under section 18.6 to audit Partners, steps were

taken to procure the services of an auditing firm to audit the

accounts of the Partners.

252. The Ministry of Finance in conjunction with the Ministry of

Petroleum and GNPC have appointed PWC to undertake the

diagnostic and compliance audit of the petroleum operations under

the Deep Water Tano and West Cape three point and Jubilee field

phase 1 development plan and utilization agreement for the period

2008 to 2014.

Improper Documentation and Management of the Corporation

Assets

Improper documentation on Fixed Assets

253. We noted the following during our examination of the Fixed

Asset Register and Physical verification of the corporation’s assets;

i) Key documents evidencing the corporation’s ownership of its

land and Buildings were not available for inspection.



ii) The Corporation’s vehicles have not been re-registered as

government vehicles in compliance with the government’s

directives.

The Table 3: shows some exceptions from our physical verification

of Assets

Item Verified Reference Issue

Noted/Remarks

Light Industrial Area, Tema

Plot No.35/12 & 13

No title deed

Redco, Madina, Accra Bungalow No. A2 and A3

No title deed

Petroleum House GNPC Headquarters

No evidence of ownership

House at East Airport Plot

H/No. 12 & 30 Title Deed not Sighted

House at East Airport Residential Area

H/No. 21 Title Deed not Sighted

Four-Bedroom House

H/No. Ex 8 Comm.3

Title Deed not Sighted Unoccupied & Deteriorating

Enpro Building

Title Deed No. 18281/1990

Cracks breakages and Deteriorating

254. The Chief Facilities Officer explained that the corporation

was unable to register the properties because the parent document

from REDCO Limited (the organisation from which GNPC acquired

the Lands) is being disputed in the Law Court and thus preventing

GNPC from registering its portion at Lands Commission.

255. Also, it came to light that a portion of the Land used as a car

park by GNPC at Petroleum House belongs to SIC Limited, hence it



cannot be registered by GNPC. Though SIC Ltd. agreed to sell the

land to GNPC, the transaction had not been concluded.

256. With respect to the Head Office Land, GNPC had written to

TDC on three occasions with regards to the preparation of lease

Documents.

257. The Light industrial area land at Tema, though not registered

Management of GNPC had developed (in 2012) the land by fencing

the perimeter of the entire 6.7-acre industrial plot.

258. Inadequate controls over the fixed assets of the corporation

expose these assets to theft, misuse and even loss.

259. We recommended that management should ensure the

Facilities Department obtains all the vital documentation required

for the Corporation’s lands and buildings. Management should also

ensure that the corporation’s vehicles are re-registered as

government vehicles in compliance with government directives and

carry out a complete inventory of all the corporation’s fixed assets so

as to update the fixed assets register.

260. Management responded as follows:

i. The Facilities Department has commenced the exercise of

updating title documents database. Contacts have been

made with the Land Title Registry to speed up the

documentation process.

ii. The corporation intends seeking exemption from this re-

registration of vehicles as have been granted to some state

Corporation. In line with this objective, management has

discussion with the Ministry of energy and Petroleum and



has been directed to submit the detailed vehicle list as a first

step of the process. This directive has been duly complied.

iii. Management conducts a fixed asset inventory numbering

and update of register on a daily basis.

PETROLEUM FUNDS

Introduction

261. This report relates to the audited Financial Statements of

Petroleum Funds for the year ended 31 December 2014.

Operational results

262. The fund recorded a Net Surplus of US$5,851,349 in the year

under review as compared to US$2,519,141 in 2013, representing

improved surplus growth of 132.3%.

263. The performance indicators are shown in Table 4.

Table 4: Income and Expenditure Statement for 2014

2014

US$

2013

US$

%

Change

Investment Income 5,881,040 2,540,104 131.5

Bank Charges (Expenses) (29,691) (20,963) 41.6

Surplus 5,851,349 2,519,141 132.3

264. Investment Income registered a 131.5% or US$3,340,936

increase over the 2013 figure of US$2,540,104 to US$5,881,040 in 2014.

The growth or increase in the Investment Income was significantly

influenced by the Investment Income from Ghana Heritage Fund

which went up by 284.4%.

265. Total Expenses charged to the fund (Bank charges) also went

up by 41.6% from US$20,963 in 2013 to US$29,691 in 2014. This was



due to increase in management fee charged by fund managers or

Banks.

Financial position

266. A statement of the financial position of the fund as at 31

December 2014 is shown in Table 5.

Table 5: Statement of Financial Position as at 31 December 2014

2014

US$

2013

US$

%

Change

Assets 536,633,137 447,456,203 19.9

Equity 536,633,137 447,456,203 19.9

267. Assets grew by 19.9% or US$89,176,934 from US$447,456,203

in 2013 to US$536,633,137 in 2014. The increase was as a result of

196.1% increase in Bank balance from US$109,069,863 in 2013 to

US$322,982,385 in 2014.

268. The Fund Accounts also increased by 19.9% from

US$447,456,203 in 2013 to US$536,633,137 in 2014.

MANAGEMENT ISSUE

Non-compliance with Investment Checklist

269. Contrary to the compliance checklist for investment purposes

for the Ghana Heritage fund which requires that, exposure per issuer

shall not exceed 5% of Ghana Heritage Fund Holdings; we noted that

the total amount of Heritage fund invested in the US Treasury

exceeded the exposure per issuer as per the investment /compliance

checklist. Details of the non-compliance are summarized in Table 6.



Table 6: Non-compliance with investment checklist

Issuer

Settlement

Amount

US$

Total Ghana

Heritage

Funds

Holding

US$

Exposure

Per Issuer

%

Acceptable

Exposure Per

Issuer

%

US Treasury 34,942,773 248,915,220 14 5

270. The limits set by the Board did not consider situations where

the absence of suitable investments will result in the breach of the

base currency.

271. Assets/Securities in the investment portfolio are not aligned

with the acceptable risk profile which could result in sub-optimal

allocation of resources. Exceeding the exposure per issuer could also

result in failure to balance the risks posed by different issuers.

272. Management should ensure that the compliance checklist for

investment purposes are strictly adhered to.

273. According to management, the breach of the limitation

resulted from the time. Being the base currently, this resulted in the

temporary breach. The compliance framework has since been

updated to reflect this.

GHANA CYLINDER MANUFACTURING COMPANY LTD

Introduction

274. This report relates to the audited financial statements of

Ghana Cylinder Manufacturing Company Limited for the year

ended 31 December 2013.



Operational results

275. The Company recorded a Net profit of GH¢608,016 in 2013 as

against a Net Loss of GH¢231,196 in 2012 representing an improved

performance of 363%. Details of the performance indicators of Ghana

Cylinder Manufacturing Company Limited are provided in Table 7.

Table 7: Income Statement for 2013 and 2012

2013 GH¢

2012 GH¢

% Change

Turnover/Revenue 7,720,494 6,638,927 16.3

Other Income 91,272 7,371 1138.3

Total Income 7,811,766 6,646,298 17.5

Expenditure

Cost of Sales 5,811,458 5,595,043 3.9

General & Administrative

Expenses

977,224 826,949 18.2

Exceptional Item 415,068 455,502 (8.9)


Net Profit 608,016 (231,196) (363)

276. Total Income increased by 17.5% from GH¢6,646,298 in 2012

to GH¢7,811,766 in 2013. This was mainly due to 1,138.3% increase

in Other Income and 16.3% increase in Turnover.

277. Total Expenditure also increased by 4.7% from GH¢6,877,494

in 2012 to GH¢7,203,750 in 2013. This was as a result of 3.9% and

18.2% increases in cost of Sales and General and Administrative

Expenses respectively over the previous year’s figure.

Financial position

278. Table 8 shows a summarized statement of financial position



as at 31 December 2013.

Table 8: Statement of financial position as at 31December 2013

2013

GH¢

2012

GH¢

%

Change

Fixed Assets 12,654,983 3,048,850 315.1

Current Assets 4,606,129 3,154,678 46

Current Liabilities 4,629,017 5,339,080 (13.3)

Long-term Loan 1,185,524 1,478,398 (19.8)

Net Current Assets (22,888) (2,184,402) (99)

Net Assets 11,446,571 (613,950) (1,964.4)

Current Ratio 1:1 0.6:1

279. Fixed Assets stood at GH¢12,654,983 at December 2013

compared to GH¢3,048,850 in 2012 representing an increase of

315.1%. The upward trend in Fixed Assets was attributed to the

revaluation of the company’s assets during the year under

consideration.

280. Current Assets increased by 46% to GH¢4,606,129 in 2013

from GH¢3,154,678 in 2012. The increase was due to GH¢1,000,000

short-term investment in 2013 and 44.2% increase in inventory.

281. Current Liabilities reduced from GH¢5,339,080 in 2012 to

GH¢4,629,017 in 2013. This was due to 62.6% and 26.6% decreases in

Accruals and short-term loan respectively.

282. Current ratio for 2013 was 1:1 compared to 0.6:1 at the end of

2012.Though the Liquidity position has improved slightly over the

previous year, this fell below the standard benchmark of 2:1

indicating the company’s inability to meet its short-term financial



obligations as and when they fall due.

.

NATIONAL ELECTRIFICATION SCHEME

Introduction

283. This report covers the audited Financial Statements of the

National Electrification Scheme for the year ended 31 December

2014.

Operational results

284. Presented in Table 9 are the performance indicators for the

Scheme.

Table 9: Revenue and Expenditure Statement for 2014

285. Total Income of the company fell by 2.3% from

GH¢490,550,765 in 2013 to GH¢479,241,793 in 2014. The decrease

was mainly due to 2.5% drop in Government Funding.

286. Total Expenditure for the year under review amounted to

Revenue

2014

GH¢

2013

GH¢

%

Change

Levy Income 9,092,171 8,526,595 6.6

Government Funding 470,149,622 482,024,170 (2.5)

Total Revenue 479,241,793 490,550,765 (2.3)

Expenditure

Direct Project Expenses 466,537,042 479,324,089 (2.7)

Administrative & General Exp 5,481,957 2,838,317 93

Total Expenses 472,018,999 482,162,406 (2.1)

Surplus 7,222,794 8,388,359 (13.9)



GH¢472,018,999 as against GH¢482,162,406 recorded in 2013. This

showed a decrease of 2.1% or GH¢10,143,407 over the previous year’s

expenditure and was mainly due to 2.7% decrease in Direct Project

Expenses.

287. Net Income Surplus recorded a decrease of 13.9% from

GH¢8,388,359 in 2013 to GH¢7,222,794 in 2014. The decline in total

income in 2014 contributed to the decrease in the net income.

Financial position

288. The summarized statement of Financial Position for National

Electrification Scheme as at 31 December 2014 is shown below:

289. Non-Current Assets stood at GH¢5,875,208 at the end of 2014

as against GH¢3,875,245 in 2013 an increase of 51.6%. Acquisition of

Motor Vehicle, Office Furniture, Office Equipment Container Storage

and Computer Equipment accounted for the increase.

290. Current Assets decreased by 31.1% from GH¢256,736,212 in

2013 to GH¢176,848,168 in 2014. This was mainly due to 35.6%

decrease in inventory, which form 88.2% of the entire Current Asset.

Current Liabilities decreased from GH¢242,357,804 in 2013 to

GH¢157,246,929 in 2014, representing 35.1% decline.

2014 GH¢

2013 GH¢

% Change

Non-Current Assets 5,875,208 3,875,245 51.6

Current Assets 176,848,168 256,736,212 (31.1)


Net Current Liabilities 19,601,239 14,378,408 36.3

Net Assets 25,476,447 18,253,653 39.6




291. Current Ratio which shows the ability of the scheme to meet

its short-term obligations as and when they fall due, improved

marginally from 1.06:1 in 2013 to 1.13:1 in 2014 but fell short of the

standard benchmark of 2:1. As such the scheme will not be able to

meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Delays in Remitting Levies Collected to the National

Electrification Fund – GH¢17,999,762

292. Our audit revealed that there were significant delays in

remitting Levies collected to the National Electrification Fund. This

has been a major weakness observed over the years and despite

efforts by the management team to ensure that levies are remitted to

the fund, the problem still persist with PURC being the major culprit.

Details are the summarized in Table 10.

Table 10: Delays in remitting levies collected to the National

Electrification Fund

Companies

Amount Due

2014

GH¢

Amount Paid

GH¢

Balance 31 Dec.

2014

GH¢

ECG 1,402,654 900,000 502,654

VRA 427,418 416,307 11,111

NED 228,277 177,398 50,879

PURC 18,535,118 1,100,000 17,435,118

20,593,467 2,593,705 17,999,762

293. The balance due from ECG increased by 44% from

GH¢350,143 in December 2013 to GH¢502,654 in December 2014.

294. Collection from VRA has improved significantly leading to



93% decrease in indebtedness from GH¢153,182 in 2013 to

GH¢11,111 in December 2014.

295. NED also performed quite well by reducing its balance due

by 55% from GH¢113,311 in 2013 to GH¢50,879 in December 2014.

296. PURC presents the major challenges as the amount to be

remitted increased by 60% from GH¢10,879,533 in 2013 to

GH¢17,435,118 in December 2014.

297. This practice slowed down the completion of the projects and

threaten the sustainability of the scheme.

298. We recommended that the Project Management Team of the

National Electrification Scheme should explore alternative means of

getting PURC in particular to remit the levies collected to the

scheme.

299. Management accepted our recommendation.

Faulty Transformers

300. Transformers installed in some communities we visited

where the projects have been commissioned, were faulty and had

been energized. There were leakages of oil from some of the

transformers.

301. The Communities below are where we observed issues with

transformers:

Sege in the Ada West District of the Greater Accra Region.

Kwesitwikwaa in the Agona East District in the Central Region.

Obrawomian and Fosu Dunkwa in the Assin District of the

Central Region.



Tainono No.2 in the Jaman South District of the Brong Ahafo

Region.

302. The defective transformers are additional cost to the project

in term of repairs or replacement.

303. Contractors responsible for areas where there are issues with

transformers should be compelled to rectify the problem as soon as

possible. Also the project management team should conduct an

investigation into the causes of faulty transformers, as this issue

continue to recur in all our reports. Management has accepted this

for strict compliance and implementation.

304. High incidence of theft of meters resulting in delays in

energizing the sub-station.

305. We noted at Kope area in the Awutu Senya District of the

Central Region that the sub-station had not been energized because

the Contractor noticed a high incidence of theft of meters even before

service was extended to the households. The community has been

deprived of power even though the Project has been completed.

306. We recommended that the Management team and the

contractor should devise a plan to resolve the incidence of meter

theft as soon as possible. Also, the project management team should

evaluate the causes of the faulty transformers. No management

responses.

Faulty Work done on Low Voltage (LV) Lines

307. Stringing of the Low voltage (LV) conductors had a low sag

between them in one community.



308. The affected community is Akoley in the Awutu Senya

District in the Central Region. We also noted at Akrumatoyom in the

Awutu Senya District of the Central Region that the take-off point on

the LV poles was mounted too low there by exposing it to children in

the community.

309. This is a reflection of poor work done and the consequence of

the collapse of the lines could result in the destruction of lives and

properties.

310. We recommended that the contractor responsible for the

stringing of LV lines should be made to correct the defect to prevent

any future loss of life and property. Also fencing should be

constructed around take-off points which are close to communities to

prevent the occurrence of any casualties in future.

Monitoring of LV Poles in Water Logged Area

311. At Prampram in the Ningo-Prampram district of the Greater

Accra Region, we noted that LV Poles were mounted in water logged

areas around the Ningo-Prampram Senior High School as at the time

of our visit. No precautions were taken to ensure that the poles

withstand such adverse environmental conditions. The poles may

not last their expected useful lives as they are likely to be damaged

by water within a short period of time. Their replacement will result

in additional cost to Electricity Company of Ghana.

312. The Contractor should be made to revisit the site and provide

any remedial action to ensure that the poles will withstand that

environmental condition.



Absence of Fire Insurance Policy for the Materials

313. We noted during our audit that the National Electrification

Scheme has no insurance policy covering its materials in all depots

over the country. This is a problem which has been reported over

the years but has still not been resolved due to lack of funds.

However, in view of the high risk involved, we still recommended

that the materials should be covered with an insurance policy.

314. In response, management said they are working with its

Broker to identify and advise the Ministry on the Fire Insurance

policy for the materials and as soon as funds are made available, a

Fire Insurance Policy for materials will be implemented.

ENERGY COMMISSION

Introduction

315. This report relates to the audited accounts of the Energy

Commission for the period 1 January 2013 to 31December 2014.

Operational results

316. The Commission’s operations for the year under review

ended with a surplus of GH¢1,115,749 representing a 26.2%

decreased as compared to GH¢1,510,912 reported for 2013. Details of

the performance indicators are shown in Table 11.

Table 11: Income Statement for 2014

Income 2014

GH¢

2013

GH¢

%

Change

Revenue Grant 13,413,441 10,091,499 32.9

Other Income - 9,961 -

Total Income 13,413,441 10,101,460 32.8

Expenditure



Personnel Emoluments 4,590,083 4,541,053 1.1

Administrative & General

Expenses

2,356,925 1,716,342 37.3

Service Activity Expenses 5,350,684 2,333,153 129.3


Excess of Income over

Expenditure

1,115,749 1,510,912 (26.2)


to GH¢13,413,441 in 2014. This increase was as a result of a 32.9%

increase in Revenue Grant.

318. Total Expenditure increased by 43.2% from GH¢8,590,548 in

2013 to GH¢12,297,692 in 2014. This was as a result of a significant

increase of 129.3% in Service Activity Expenses.

Financial position

319. Below is a summary of the Commission’s financial position

as at 31 December, 2014.

Table 12: Assets and Liabilities as at 31st December, 2014

2014 GH¢

2013 GH¢

% Change


Current Assets 5,938,944 357,700 1,560.3

Current Liabilities 1,323,546 503,687 162.8

Net Current Assets 4,615,398 (145,987) (3,261.5)


320. Non-Current Assets increased by 6.3% from GH¢6,129,571 in

2013 to GH¢6,516,676 in 2014. The increase was as a result of the



impact of capital work-in progress transferred into property plant

and equipment.

321. Current Assets increased by 1,560.3%, from GH¢357,700 in

2013 to GH¢5,938,944 in 2014. This was primarily due to increase in

the Accounts Receivable.

322. Current Liabilities increased by 162.7% from GH¢503,681 in

2013 to GH¢1,323,546 in 2014. This increase was a result of an

increase in Accounts payable from a nil balance in 2013 to

GH¢346,624 in 2014. Bank overdraft also increased by 2,058.3%.

323. The Commission’s liquidity position as depicted by the

current ratio of 4.5:1 in 2014 and 0.7:1 in 2013 shows that the

organisation has an improved position and might be able to fulfill its

immediate debt as they fall due.

MANAGEMENT ISSUES

Un-labelled Assets

324. Contrary to the stores Regulations, 1984, Regulations 1513,

we observed that all fixed assets, specifically Furniture, Fittings and

Equipment as well as computers and Accessories acquired during

the year were not labeled.

325. This implies that the assets of the business have not been

sufficiently safeguarded.

326. We recommended to management that any asset purchased

in the name of the Commission must immediately be embossed.

327. Management explained that embossment are done in the



ensuring year due to warranty conditions as inscriptions on them

could pose problems in situations where they have to be returned to

the supplier.

Non-remittance of 15% Levy – PURC – GH¢2,207,673

328. The Public Utilities Regulatory Commission (Amendment)

Act 2010 (Act 800), mandates the Public Utilities Regulatory

Commission to remit the Energy Commission, 15% of transfers

received from GRIDCO.

329. We noted that PURC went contrary to the Act by not

remitting the 15% of its transfer received. As of 31 December 2012, an

amount of GH¢2,207,673 was confirmed as indebtedness to the

commission by PURC.

330. The Commission has therefore been deprived of much

needed funds that could have been used for its operations.

331. We recommended to management that they should intensify

efforts in letting PURC comply with the law.

332. Management gave the inconsistent flow of funds from clients

as the cause and that the Commission will ensure payments are

made promptly in the ensuring year.

Non-payment of Statutory Deductions IRS and SSF

333. Contrary to Section 87(1) of IRS Act, 2000 (Act 592) and

Section 63(1) of Pensions Act 2008 (Act 766), we noted that payments

for PAYE and SSF to GRA and SSNIT respectively, were not made

within the period.



334. Non-payment of these deductions can attract punitive

penalties as well as distort staff social security payments.

335. We recommended that such payments must be made within

stipulated statutory periods to avoid the payment of punitive

penalties.

Abandoned Motor Vehicles

336. Section 83 of the Public Procurement Act, 2003 (Act 663)

mandates the head of procurement entity to dispose off stocks that

are obsolete, redundant and unserviceable or surplus to requirement

in an orderly and systematic manner.

337. We however noticed that vehicles that were not in good

condition and thus were unused were abandoned and also left to the

mercies of the weather.

Details of abandoned vehicle are as follows:

No. Vehicle Type Registration

No.

Year of

Purchase

I Mitsubishi Gallant GR46177 2006

Ii Toyota Hilux GT7323V 2004

Iii Nissan Pickup GT3008V 2004

Iv Toyota Land Cruiser GT5491V 2003

V Toyota Prado GR7260T 2002

Vi Toyota Prado GR5030T 2002

Vii Toyota Hilux GR5034T 2002

338. Continuous disregard would mean that, these vehicles would



further deteriorate and as such suffer loss of value.

339. We recommended to the management that the vehicles

should be either repaired or disposed off.

340. Management responded that the vehicles have been assessed

and a report indicating their disposal has been received.

Management has therefore made plans to dispose off the vehicles in

accordance with the Procurement Act.

ENERGY COMMISSION – ENERGY FUND

Introduction

341. This report relates to the audited accounts of the Energy

Commission –Energy Fund for the year ended 31 December, 2014.

Operational results

342. The Fund’s operations for the year under review ended with

a surplus GH¢428,314.00 representing an improved performance of

212.2% as compared to a deficit position of GH¢381,794.00 in 2013.

Details of the performance indicators are shown in the Table below.


Income 2014

GH¢

2013

GH¢

%

Change

Release by CAGD from

Petroleum Levy Account

1,635,835 1,931,401 (15.3)

Fees from Permits & Licenses 6,286,915 4,014,247 56.6

EDMF Project Fund 1,850,000 284,501 644.5

Other Income 394,336 73,258 438.3

Total Income 10,167,086 6,267,407 62.2

Expenditure



Promotion of the Energy

Efficiency and Productive uses

of Electricity

4,023,071

1,998,563

101.3

Renewable Energy Resources

including Solar Energy

406,521 464,427 12.5

Human Resources Dev. in the

Energy Sector

624,705 533,630 17.1

Other relevant Expenditure

approved by Commissioner

4,684,005 3,652,526 28.2

Bank Charges 470 55 754.5


Surplus / (Deficit) 428,314 (381,794) (212.2)


to GH¢10,167,086 in 2014. All income streams increased with the

exception of transfer from the petroleum levy account which reduced

by 15.2%. Fees from permits and licenses went up by 56.6%, EDMF

project fund posted a 644.5% increase. Finally, other income, closed

with a 438.3% increase.

344. The Expenditure increased to GH¢9,738,772 in 2014 from

GH¢6,649,201 in 2013, representing a 46.5% increment. All

expenditure lines went up. Expenditure on promotion of the Energy

Efficiency and productive uses of electricity went up by 101.3% from

GH¢1,998.563 in 2013 to GH¢4,023,071 in 2014.

Financial position

345. Below is a summary of the Fund’s financial position as at 31

December, 2014.



Table 14: Assets and Liabilities as at 31 December 2014

2014 GH¢

2013 GH¢

% Change

Current Assets 512,892 84,578 506.4

Current Liabilities 512,892 84,578 506.4

346. Current Assets increased by 506.4% from GH¢84,578 in 2013

to GH¢512,892 in 2014. This increase was due to increase in Bank

Balance.


2013 to GH¢512,892 in 2014. The increase was due to transfer from

Revenue Account of GH¢428,314.

BUI POWER AUTHORITY

Introduction

348. This report covers the audited financial statement of the Bui

Power Authority for the year ended 31 December 2013.

Operational results

349. The Authority closed the year 2013 with a surplus of

US$941,181 as against US$1,053,526 surplus recorded in 2012. A

10.7% decrease in surplus.

350. Performance indicators for 2013 are shown in Table 15.


2013

US$

2012

US$

%

Change

Receipts

Receipt of Sinohydro 6,366,667 4,622,280 37.7

Other receipts 2,812,030 873,168



351. Total Income made up of Receipts from Sinohydro and Other

Receipts increased by 67.0% from US$5,495,448 in 2012 to

US$9,178,697 in 2013. This was due to a 184.1% rise in Sundry

Receipts and 37.7% rise in receipts from Employer’s Engineering and

Administration Costs.

352. Total Expenditure for the year under review was

US$8,237,516 as compared to the figure of US$4,441,922 for 2012

representing an increase of 85.4%. The rise was due to additions in

Resettlement Costs as well as Employer’s Engineering &

Administration Costs.

353. The Closing Cash Balance also decreased marginally by

22.4% from US$1,151,479 in 2012 to US$893,760 in 2013.

Financial position

354. Presented in Table 16 is the financial position of the

Authority as at 31 December 2013.

Table 16: Financial Position as at 31 December 2013

Total Receipts 9,178,697 5,495,448 67.0

Payments

Employer’s Engineering &

Adm. Costs

7,127,706 4,250,196 67.7

Irrigation 168,442 138,150 21.9

Resettlement 941,368 53,576 1,657.1

Total Payments 8,237,516 4,441,922 85.4

Surplus/(Deficit) 941,181 1,053,526 (10.7)

Exchange Gain/(Loss) (47,421) 97,953 (148.4)

Closing Cash Balance 893,760 1,151,479 (22.4)



355. Capital Work-In-Progress increased marginally by 9.0% from

US$574,724,109 in 2012 to US$626,203,209 in 2013. This increase was

mainly due to additional payments for Work certified.

356. Current Assets made up of Prepaid Insurance, Accounts

Receivable and Cash and Cash Equivalents increased significantly by

486.4% from US$27,948,599 in 2012 to US$163,876,928 in 2013. This

increment was due to 18.4% increase in Prepaid Insurance from

US$25,000,000 in 2012 to US$29,601,123 in 2013.

357. There was however no Liabilities recorded for the period

under review as against US$63,043,331 recorded in 2012. This was as

a result of recoveries of advances given and payments made during

the period to offset the total certified interim payment applications.

358. Investment by Government of Ghana (GOG) increased by

46.4% from US$539,629,377 in 2012 to US$790,080,137 in 2013.

2013

US$

2012

US$

%

Change

Capital Work-in-Progress 626,203,209 574,724,109 9.0

Current Assets 163,876,928 27,948,599 486.4

Liabilities - 63,043,331 -

Represented by:

Investment by

Government of Ghana

790,080,137 539,629,377 46.4



MANAGEMENT ISSUES

SSF Tier 2 contributions deducted not transferred to SSNIT or

Fund Manager – GH¢46,592

359. The National Pensions Act 2008, (Act 766) has set up a three

tier pensions scheme. The second tier mandatory employee

contribution is to be privately managed. However due to delays in

licensing Fund Managers and Custodians, the National Pensions

Regulatory Authority (NPRA) requested SSNIT to collect tier 2

contributions until NPRA had completed the process of licensing

administrators, fund managers and custodians.

360. We noted that for the period January 2013 to September 2013,

BPA paid tier 2 contributions to SSNIT. However, for the period

October to December 2013, no payment was made although an

amount of GH¢46,592 had been deducted from staff salaries as their

tier 2 contributions.

361. Management explained that this was because SSNIT

indicated it was not going to continue receiving tier 2 contributions,

and BPA had not yet selected a Fund Manager.

362. Employees have lost interest on those contributions since the

funds were not invested.

363. Management should conclude on the selection of a private

fund manager and transfer the funds to them appropriately.

364. Management responded that it has selected Enterprise

Insurance as Fund Manager for Tier 2 contributions and payments

are now being effected every month.



Non-Compliance with Procurement Act

365. Section 17 (1) of Public Procurement Act, 2003, (Act 663)

provides that “each procurement entity shall establish a Tender

Committee in the manner set out in schedule 1”. Further, Section 21

(1) of a procurement plan is to support its approved programme.

Lastly, Section 35 (1) of Act 663 provides that “A procurement entity

shall procure goods, services or works by competitive tendering

except as provided in this part” contrary to the above provisions.

366. We noted the following during the audit:

BPA did not have a Tender Committee

BPA did not have a procurement plan

BPA carried out procurement during the period but there was

no evidence that competitive process had been followed.

Table 17: presents the details of the significant payments made

during the year

Descrip tion

Vendor Contract Sum

Amt. paid during 2013

Comments

Forty (40) Ford Ranger Double Pick-ups

Mechanical Lloyd

US$1,346,000 US$504,750 The total contract sum was to procure 40 pick-ups at a unit cost of US33,650 each. The payment made was an advance payment for initial order of 25 pick-ups. The payment was made on 24 December 2013.

Lease of

land for

ware-

Tema

Devt.

Corp

GH¢210,496 GH¢210,496 The contract sum is

made up of

GH¢209,760 as Land



house (TDC) Management Fee and

GH¢736 as the annual

Ground Rent. The

payment was made

on 16 September

2013.

367. The non-compliance of the PPA Act, 2003 (Act 663) was

because in Managements’ opinion procurement done during the

construction phase of the Bui Dam should not be subjected to the

Public Procurement Act.

368. BPA management has not complied with the provision of the

Public Procurement Act, 2003, (Act 663).

369. We recommended that the Board should take the necessary

steps to ensure compliance with the provisions of the Public

Procurement Act, 2003, (Act 663).

370. Management responded that necessary steps are being taken

to comply with the Public Procurement Act, 2003, (Act 663).

GHANA ATOMIC ENERGY COMMISSION - SECRETARIAT

Introduction

371. This report relates to the audited accounts of the Ghana

Atomic Energy Commission Secretariat for the year ended 31

December 2013.

Operational results

372. The Secretariat ended the year with a deficit of GH¢325,448

as compared to GH¢653,882 deficit in 2012, representing a 50.2%

decrease in the deficit position. Presented in Table 18 are the



performance indicators.


Income

2013 GH¢

2012 GH¢

% Change

Government Subvention

37,285,409 39,985,943 (6.8)

Internally Generated Fund

770,907 682,451 13.0

Other Income 931,067 594,177 56.7

Donor Funds/Grants 100,262 128,400 (21.9)

Total Income 39,087,645 41,390,971 (5.6)

Expenditure

Compensation for

Employees

36,840,997 39,644,063 (7.1)

Goods and Services 2,572,096 2,400,790 7.1

Total Expenditure 39,413,093 42,044,853 (6.3)

Deficit (325,448) (653,882) (50.2)

373. Total Income decreased to GH¢39,087,645 in 2013 from

GH¢41,390,971 in 2012, representing 5.6% drop. This was as a result

of a 6.8% decrease in Government subvention which dropped to

GH¢37,285,409 in 2013 as against GH¢39,985,943, in 2012.

374. Total Expenditure reduced by 6.3% from GH¢42,044,853 in

2012 to GH¢39,413,093 in 2013. The fall was primarily due to

reduction in compensation for Employees which dropped to

GH¢36,840,997 in 2013 from GH¢39,644,063 in 2012, representing

7.1% decrease.

Financial position

375. The Financial Position of the Secretariat as at 31December



2013 is summarized in Table 19.

Table 19: Financial Statement as at 31 December 2013

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 2,110,063 2,444,033 (13.7)

Current Assets 609,610 56,544 978.1

Current Liabilities 1,149,177 611,969 87.8

Net Current Assets (539,567) (555,425) (2.9)

Net Assets 1,570,497 1,888,608 (16.8)


376. Non-Current Assets reduced by 13.7% from GH¢2,444,033 in

2012 to GH¢2,110,063 in 2013. The fall was as a result of decreases in

Property, Plant & Equipment from GH¢2,441,451 in 2012 to

GH¢2,107,481 in 2013. Investment remained the same for both years.

377. Current Assets increased to GH¢609,610 in 2013 as compared

to GH¢56,544 in 2013, representing 978.1%. This was as a result of a

1,139,1% increase in Cash and Bank Balances.

378. Current Liabilities went up by 87.8% from GH¢611,969 in

2012 to GH¢1,149,177 in 2013. This was mainly due to a 61.7%

increase in Accounts Payable.

379. Current Ratio for 2013 which is 0.5:1(2012; 0.1:1) indicated

that the Secretariat might face difficulty in meeting its short term

financial obligations.



GHANA ATOMIC ENERGY COMMISSION

NATIONAL NUCLEAR RESEARCH INSTITUTE

Introduction


Atomic Energy Commission – National Nuclear Research Institute

for the year ended 31 December 2013.

Operational results

381. The Institute recorded a deficit of GH¢45,270.00 in 2013 as

compared with GH¢101,055.00 surplus in 2012, representing a

decrease of 144.8%. Table 20 shows the details on the performance

indicators.


Income 2013

GH¢

2012

GH¢

%

Change

Government

Subvention

5,770,211 8,267,650 (30.2)

Miscellaneous

Income

362,526 488,290 (25.8)

Total Income 6,132,737 8,755,940 (30.0)

Expenditure

Personnel Emolument

5,742,898 8,164,929 (29.7)

Travelling & Transport

64,533 110,635 (41.7)

General Expenses 171,722 196,642 (11.1)

Repairs & Maintenance

28,268 33,524 (15.7)

Other Recurrent Expenses

170,586 149,155 14.4




382. Total Income reduced by 30% from GH¢8,755,940 in 2012 to

GH¢6,132,737 in 2013. The reduction in total income was mainly due

to the decrease in Government subvention by 30.2% and 25.8%

decrease in miscellaneous income.

383. Total Expenditure recorded a 28.6% decrease to close at

GH¢6,178,007 in 2013 from GH¢8,654,885 in 2012. All cost items

recorded reduction in 2013 with exception of Other Recurrent

Expenses which increased by 14.4%.

Financial position

384. Below is a summary of the Institute’s financial position as at

31 December 2013.


385. Non-Current Assets increased by 35.1% from GH¢176,009 in

2012 to GH¢237,717 in 2013. Investment remained the same.

However, property, plant and equipment increased by 35.2% as a

results of additions during the year.

386. Current Assets went down by 22% from GH¢142,823 to

GH¢111,401 in 2012 and 2013 respectively. The fall was primarily

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 237,717 176,009 35.1

Current Assets 111,401 142,823 (22.0)


Net Current Assets (10,673) 68,731 (115.5)

Net Assets 227,044 244,740 (7.2)




due to the 77.4% decrease in Cash and Bank balances, from

GH¢130,300 in 2012 to GH¢29,438 in 2013. Although Accounts

Receivable increased by 554.5% from GH¢12,523 in 2012 to

GH¢81,963 in 2013, the absolute reduction in the Cash and Bank

Balances was huge enough to erode the increases.

387. Current Liabilities increased by 64.8%, from GH¢74,092 in

2012 to GH¢122,074 in 2013. The rise was due to the institute’s

having an overdraft in the current year of GH¢9,821 and increased in

Accounts payable of 48.1% and Accruals of 77.1%.

388. Current Ratio in 2012 of 1.9:1 worsened in the current year

showing 0.9:1. This indicates the inability of the Institute to meet its

short term obligations as and when they fall due.

GHANA ATOMIC ENERGY COMMISSION

RADIATION PROTECTION INSTITUTE

Introduction


Atomic Energy Commission- Radiation Protection Institute for the

year ended 31 December 2013.

Operational results

390. The Institute closed the year with a surplus of GH¢540,073 as

against GH¢266,583 reported in 2012, representing a 102.6%

increment. Presented in Table 22 are the performance indicators.




Income

2013

GH¢

2012

GH¢

%

Change

Government Subvention 3,532,146 5,056,008 (30.1)

Internally Generated Fund 1,563,079 1,130,663 38.2

Other Income 52,354 6,526 702.2

Total Income 5,147,579 6,193,197 (16.9)

Expenditure

Compensation for Employees 3,531,224 5,010,995 (29.5)

Material – Office Suppliers 68,779 79,245 (13.2)

Utilities 13,130 21,389 (38.6)

General Cleaning 1,170 1,187 (1.4)

Training – Transport 283,484 174,234 62.7

Repairs – Maintenance 33,376 74,368 (55.1)

Training - Seminars –

Conferences

166,344 201,013 (17.3)

Other Charges – Fees 18,980 9,368 (102.6)

Consumption of Fixed Capital 142,322 55,660 155.7

Employees Social Benefits 145,204 76,366 90.1

General Expenses 203,493 222,729 (8.6)

Total Expenses 4,607,506 5,926,614 (22.3)

Surplus Transferred 540,073 266,583 102.6

391. Total Income reduced by 16.9%, from GH¢6,193,197 in 2012

to GH¢5,147,579 in 2013. The fall was due to a 30.1% decrease in

Government Subvention.

392. Total Expenditure decreased to GH¢4,607,505 in 2013 as

against GH¢5,926,614 in 2012, representing 22.3%. All expenses

reduced with the exception of travel and transport, consumption of



Fixed Capital and Employer Social Benefits.

Financial position

393. Table 23 shows the financial position of the Institute as at 31

December 2013.

Table 23: Financial Position for year ended 2013


2012 to GH¢1,015,240 in 2013. The rise was due to an increase of

GH¢433,376 in property plant and equipment from GH¢721,387 in

2012 to GH¢1,012,441 in 2013.

395. Current Assets went up by 44.3%, from GH¢537,330 in 2012

to GH¢777,807 in 2013. There were increases in both accounts

receivable and cash and bank balance, of 29.8% and 2.3%

respectively.

396. Current Liabilities decreased by 21.0% from GH¢40,551 in

2012 to GH¢32,009 in 2013. This was due to a reduction in Accounts

Payable.

397. Current Ratio of 24.3:1(2012; 13.3:1) indicates that the

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 1,015,240 724,186 40.2

Current Assets 777,807 537,330 44.3

Current Liabilities 32,009 40,551 (21.0)

Net Current Assets 745,798 496,779 50.1

Net Assets 1,761,038 1,220,965 44.2




Institution can meet its immediate financial obligations as and when

they fall due.

GHANA ATOMIC ENERGY COMMISSION – GRADUATE

SCHOOL OF NUCLEAR AND ALLIED SCIENCES

Introduction

398. This report relates to the audited financial statements of the

Ghana Atomic Energy Commission – Graduate School of Nuclear

and Allied Sciences for the period ended 31 December 2013.

Operational results

399. The Institute closed 2013 with a surplus of GH¢165,308 as

compared with that of 2012 which recorded GH¢1,075, representing

15,277.5% increase. Details of the performance indicators are shown

in Table 24.

Table 24: Income and Expenditure statement for 2013

Income

2013

GH¢

2012

GH¢

%

Change

Government Subvention 7,200 16,044 (55.1)

Internally Generated Funds 81,183 85,510 (5.1)

Other/Miscellaneous Income 69,915 50,912 37.3

Academic User Fee 678,434 1,267,624 (46.5)

Total Income 836,732 1,420,090 (41.1)

Expenditure – Goods &

Services

Materials – Office Supplies 38,654 44,964 (14.0)

Utilities 4,295 2,173 97.7


Travel – Transport 96,828 91,772 5.5

Repairs –Maintenance 37,082 48,076 (22.9)



Training – Seminars-

Conferences

101,007 85,529 18.1

Other Charges Fees 16,554 8,651 91.4

Consumption on Fixed

Capital

76,154 69,398 9.7

Employees Social Benefit 35,348 37,071 (4.7)

Other General Expenses 259,380 1,021,344 (74.6)

Total Expenditure 671,424 1,419,015 (52.7)

Surplus/(Deficit) Transferred 165,308 1,075 15,277.5

400. Total Income reduced by 41.1% from GH¢1,420,090 in 2012 to

GH¢836,732 in 2013. The decrease was mainly due to both absolute

and percentage reduction in the various income streams with the

exception of Other Income.

401. Total Expenditure reduced to GH¢671,424 in 2013 from

GH¢1,419,015 in 2012, representing a 52.7% reduction. The

decreased was due to the reduction in most expenditure items

however both percentage and absolute reduction in other-general

expenses dropped to GH¢259,380 in 2013 from GH¢1,021,344 in 2012.

Financial position

402. The overall financial position of the Institute showed an

upward movement in Net Assets from GH¢506,011 in 2012 to

GH¢671,319 in 2013 representing a 32.7% increase. Details are

shown in Table 25.


2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 243,079 270,308 (10.1)



Current Assets 681,080 286,248 137.9



Net Assets 671,319 506,011 32.7


403. Non-Current Assets decreased by 10.1%, from GH¢270,308 in

2012 to GH¢243,079 in 2013.This was due to depreciation charged for

the year.


to GH¢681,080 in 2013. This was as a result of a 138.8 increase in

Cash and Bank Balances, from GH¢285,228 in 2012 to GH¢681,080 in

2013.

405. Current Liabilities also increased to GH¢252,840 in 2013 from

GH¢50,545 in 2012, representing 400.2% increase. The increase was

primarily due to a 472.0% increase in Accounts Payable.

406. Current Ratio for 2013 was 2.7:1 (2012:5.7:1) indicating the

ability of the institute to meet its short-term financial obligations as

and when they fall due.

GHANA ATOMIC ENERGY COMMISSION –

BIO TECHNOLOGY AND NUCLEAR

AGRICULTURE RESEARCH INSTITUTE - BNARI

Introduction


Atomic Energy Commission-Biotechnology and Nuclear Agriculture



Research Institute for the year ended 31 December, 2013.

Operational results

408. The Institute closed 2013 with a deficit of GH¢59,877 as

compared to GH¢17,119 in 2012, representing 249.8% increase.

Details of the performance indicators are shown in Table 26.


Income

2013 GH¢

2012

GH¢

%

Change

Government Subvention 4,974,905 7,018,243 (29.1)

Internally Generated Fund 125,101 67,020 86.7

Other Income 28,029 10,659 163.0

Donor fund 2,867 101,470 (98.0)

Grants 135,241 26,764 405.3

Total Income 5,266,144 7,224,156 (27.1)

Expenditure

Compensation for

Employees

4,960,571 6,980,647 (28.9)

Materials – Office Supplies 27,250 24,691 10.4

Utilities 9,505 779 1,120.2



Repairs – Maintenance 14,921 18,106 (17.6)

Training – Seminars –

Conferences

569 1,212 (53.1)

Other Charges – Fees 7,905 7,555 4.6

Consumption of Fixed

Capital

165,915 79,248 109.4

Other General Expenses 93,942 88,379 6.3


Surplus/(Deficit) (59,877) (17,119) 249.8



409. Total Income decreased to GH¢5,266,144 in 2013 by 27.1% as

compared with GH¢7,224,156 in 2012. This was mainly due to 29.1%

drop in Government Subvention which was GH¢7,018,243 in 2012

and dropped to GH¢4,974,905 in 2013.

410. Total Expenditure reduced by 26.5% from GH¢7,241,276 in

2012 to GH¢5,326,021 in 2013. This was primarily due to reduction

in compensation for employees. This reduced by 28.9% from

GH¢6,980,647 in 2012 to GH¢4,960,571 in 2013.

Financial position

411. The financial position of the Institute as at 31 December 2013

is summarized in Table 27.


2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 988,039 1,335,026 (26.0)

Current Assets 95,199 71,276 33.6



Net Assets 674,814 999,962 23,8


412. Non-Current Assets reduced by 26% from GH¢1,335,026 in

2012 to GH¢988,039 in 2013. The drop was as a result of

depreciation.

413. Current Assets increased to GH¢95,199 in 2013 from

GH¢71,276 in 2012 representing a 33.6% increment. This was mainly

as a result of increase in Cash and Bank balance from GH¢69,471 in

2012 to GH¢95,199 in 2013.




2012 to GH¢26,710 in 2013. This was as a result of a 39.4% increase

in Accruals which increased to GH¢20,418 in 2013 from GH¢14,652

in 2012.

415. Current Ratio remained the same at 3.6:1 in both years. The

result shows the Institute’s ability to meet its short-term financial

obligations.

GHANA ATOMIC ENERGY COMMISSION – RADIOLOGICAL

AND MEDICAL SCIENCE RESEARCH INSTITUTE - RMSRI

Introduction

416. This report covers the audited accounts of the Ghana Atomic

Energy Commission – Radiological and Medical Science Research

Institute – RMSRI, for the period ended 31 December 2013.

Operational results

417. The year 2013 ended with a deficit of GH¢21,881 representing

45.6% increase in the deficit position of the previous period’s deficit

of GH¢15,032. Presented in Table 28 is a summary of the



Income

2013

GH¢

2012

GH¢

%

Change

Government Subvention 6,700 18,294 (63.4)

Internally Generated

Fund

4,553 6,679 (31.8)

Other/Miscellaneous

Income

6,350 10,000 (36.5)

Total Income 17,603 34,973 (49.7)

Expenditure



Materials – Office

Supplies

2,788 2,858 (2.5)

Utilities 100 355 (71.8)


Repairs – maintenance 773 1,455 (46.9)

Training – Seminars –

Conferences

1,358 7,040 (80.7)

Other Charges – Fees 5,565 4,497 23.7

Consumption of Fixed

Capital

13,141 12,215 7.6

Employer Social Benefits

– Cash

1,131 5,303 (78.7)

Other – General Expenses 4,236 6,073 (30.3)

Total Expenditure 39,484 50,005 (21.0)

Excess of

Income/(Expenditure)

(21,881) (15,032) 45.6

418. Total Income decreased by 49.7% from GH¢34,973 in 2012 to

GH¢17,603 in 2013. All revenue streams saw high reductions most

especially Government Subvention which reduced by 63.4%.

419. Total Expenditure closed at GH¢39,484 in 2013 from

GH¢50,005 in 2012 representing a 21% decrease. The reduction was

mainly due to significant decreases in most of the expenditure items.

Financial position

420. The financial position of the Institute as at 31st December

2013 is indicated in Table 29.




2013

GH¢

2012

GH¢

%

Change


Current Assets 1,156 9,996 (88.4)


Net Current Assets (19,492) (5,102) 282.1

Net Assets 23,384 45,265 (48.3)


421. Non-Current Assets reduced by 14.9% from GH¢50,367 to

GH¢42,876 in 2012 and 2013 respectively. This was as a result of

depreciation charged for the year.

422. Current Assets reduced by 88.4% to GH¢1,156 in 2013 from

GH¢9,996 in 2012. The reduction was due to significant reduction in

Cash & Bank Balances.

423. Current Ratio for both years indicates an unfavourable

position. Thus in the short-term the Institute may not be able to fully

cover its financial obligations. The 2012 result of 0.7:1 was reduced to

0.1:1 in 2013.

GHANA GRID COMPANY LIMITED

Introduction

424. This report covers the audited accounts of the Ghana Grid

Company Limited for the year ended 31 December 2014.

Operational results

425. Total Income for the year under review grew by 37.2% from



GH¢338,500 in 2013 to GH¢464,484 in 2014. Revenue generated from

transmission of power went up by 30.6% and it constituted about

85.2% of the total revenue realized. The other income also rose by

121.2% and this was mainly due to a significant increase in exchange

gain during the year. The performance indicators are shown in

Table 30 below.


Income

2014

GH¢

2013

GH¢

%

Changes

Revenue 395,941 303,236 30.6

Other Income 64,298 29,064 121.2

Finance Income 4,245 6,200 (31.5)

Total Income 464,484 338,500 37.2

Expenditure

Direct Costs 247,900 185,530 33.6


Expenses

72,796 52,494 38.7

Finance Costs 122,544 48,154 154.5

Tax Expenses 62,747 35,523 76.6

Total Expenditure 505,987 321,701 57.3

(Loss)/ Profit for the year (41,503) 16,799 (347.1)

426. Total Expenditure also increased by 57.3% from GH¢321,701

in 2013 to GH¢505,987 in 2014. The increase was mainly due to33.6%

increase in Direct Cost. A 154.5% increase in finance cost was as a

result of significant increase in Exchange loss from GH¢40,363 in

2013 to GH¢111,091 in 2014 or 175.2% rise.

427. The Company’s operations for the year 2014 ended with a



deficit of GH¢41,503 as compared to a surplus of GH¢16,799

recorded in 2013, thus showing a drop of 347.1%.

Financial position

428. Details of the Company’s financial position as at 31

December 2014 are shown in the Table below:

Table 31: Financial position as at 31 December 2014

2014

GH¢

2013

GH¢

%

Changes


Current Assets 531,219 371,822 42.9


Non-Current Liabilities 1,007,782 565,633 78.2

Net Assets 1,736,629 1,300,884 33.5


429. Non-Current Assets rose by 53.2% to GH¢2,500,584 in 2014

from GH¢1,632,522 in 2013. This was as a result of gross revaluation

adjustments to Transmission Assets, Buildings and motor vehicles.


to GH¢531,219 in 2014. This was due to increases in Inventories and

Trade and Other receivables.

431. Current Liabilities stood at GH¢287,392 in 2014 as compared

to GH¢137,827 in 2013, showing a rise of 108.5%. Trade and other

payables accounted for the rise.

432. Non-Current Liabilities also increased by 78.2% from

GH¢565,633 in 2013 to GH¢1,007,782 in 2014. Increase in Borrowings



accounted for the rise.

433. Liquidity outlook needs to be improved as it fell from 2.7:1 in

2013 to 1.8:1 in the year under review.

MANAGEMENT ISSUE

Breach of Agence Francaise de Development (AFD) Loan covenant

ratio

434. We noted that, the debt agreement with AFD requires that,

the Company maintain a debt service ratio of 1.4; however, the

company has violated the agreement and its debt service ratio for

August 2014 was 0.86.

435. Non-compliance with agreed debt covenants may trigger

early repayments, non-approval of subsequent disbursements or

penalties payments.

436. We therefore recommended that, management should

monitor loan covenants to ensure compliance.

437. In response, management attributed this anomaly to cash

flow challenges but accepted the recommendation to comply with

the debt covenant ratio.

Long outstanding debtors – GH¢152.7 million

438. We observed that 80% of the Company’s trade receivables are

over sixty (60) days contrary to the laid down policy.

439. We further noted that, out of the GH¢224.5 million owed by



Electricity Company of Ghana to the Company, 68% of this balance

is over 60 days past due as at 31 December 2014.

440. There is the possibility that, these long outstanding

receivables may become bad debt one day and impact negatively on

the Company’s operating cash flow, if not checked now.

441. We recommended that, measures should be put in place to

ensure timely collection of fees from services rendered.

442. Management responded that almost all transmission debtors

pay on time except ECG and VALCO which are related parties.

Management has engaged key stakeholders including the Ministries

of Finance and Power, PURC and other industry players to resolve

these delayed payments.

UNIFIED PETROLEUM PRICE FUND

Introduction

443. This report relates to the audited accounts of the unified

Petroleum Price Fund for the year ended 31 December 2014.

Operational results

444. The year 2014 ended with a surplus of GH¢85,650,916 which

is 68.2% increase from GH¢50,930,143 in 2013. Details of the

performance indicators are shown in Table 32.




Income 2014

GH¢

2013

GH¢

%

Change

Fund Income 451,499,947 284,900,345 58.5

Other Income 653,340 2,123,183 (69.2)

Total Income 452,153,287 287,023,528 57.5

Expenditure

Operational Cost 354,393,959 230,159,871 54.0

Levy /Charges on

the Fund

3,963,350 3,198,057 23.9

General &

Administrative

Expenses

8,145,062 2,735,457 197.8


Surplus 85,650,916 50,939,143 68.2

445. Total Income increased from GH¢287,023,528 in 2013 to

GH¢452,153,287 in 2014 by 57.5%. This was as a result of 58.5%

increase in the Fund Income.

446. Total Expenditure increased by 55.2% from GH¢236,093,385

in 2013 to GH¢366,502,371 in 2014. The rise was due to increases in

Salary and Allowances and Trading Device Expenses.

Financial position

447. Table 33 is a summary of the Fund Assets and Liabilities as at

31 December 2014.


Item 2014

GH¢

2013

GH¢

%

Change




Current Assets 131,092,935 52,843,157 148.1



Net Assets 139,532,142 53,881,226 159

Current Ratio 4.5:1 6:1


in 2013 to GH¢37,511,600 in 2014. This was as a result of acquisitions

during the year which amounted to GH¢30,692,502.

449. Current Assets of the Fund increased by 148.1%, from


increases in Accounts Receivable of 249.1% and Cash and Bank of

260.1%.

450. Current Liabilities increased by 229.7% from GH¢8,818,209 in

2013 to GH¢29,072,443 in 2014. The increase was mainly due to

increases in Accounts Payable of 231.4% and accruals of 1,205.6%.

451. Current Ratios of 6:1 in 2013 and 4.5:1 in 2014 give an

indication of the funds ability to meet its immediate obligations.

VOLTA RIVER AUTHORITY

Introduction

452. This report relates to the audited accounts of the Volta River

Authority for the financial year ended 31 December 2014.

Operational results

453. The total power generated from both hydro and thermal



sources in 2014 was 9,749 GWh as compared to 10,325 GWh in 2013,

representing a decrease of 5.6%. Generation of power from hydro

sources was 7,657 GWh in 2014 as against 7,871 GWh in 2013 whilst

thermal power generation was 2,092 GWh in 2014 (2013: 2454 GWh).

454. This was supplemented by purchasing power from

Compagnie Ivoirienne d’ Electicite’ (CIE) of La Cote D’Ivoire and

Takoradi International Company Ltd (TICO) of Ghana of 763 GWh

(2013: 1,059 GWh). The Authority however, exported 57 GWh (2013:

20GWh) to CIE.

455. Revenue from the sale of electricity increased by

GH¢18,655,000 or 0.8% from GH¢2,212,073,000 in 2013 to

GH¢2,230,728,000 in 2014. This was due to two main factors,

namely: the upward adjustment in the Bulk Generation Tariff (BGT)

by PURC and a 47% depreciation of the average GH¢/US$ exchange

rate from GH¢1.9944/US $1 in 2013 to GH¢2.9341/$1 in 2014.

456. Other Income increased by 60.6% from GH¢115,025,000 in


increase in proceeds from gas sold to Sunon Asogli and 71.9%

increase in subsidiaries’ income. Presented in Table 34 is a

summarized income statement.


Income

2014

GH¢’000’

2013

GH¢’000’

%

Change

Sale of Electricity 2,230,728 2,212,073 0.8

Cost of Sales (2,052,344) (1,851,057) 10.9

178,384 361,016 (50.6)



Operating Income 184,692 115,025 60.6

Administrative Expenses (437,207) (267,934) 63.2

Operating (Loss)/Profit (74,131) 208,107 (135.6)

Financial Income 8,386 6,133 36.7

Financial Expenses (308,674) (78,953) 291.0

Exchange Gain/(Loss) 292,292 14,758 1,880.6

Exchange Fluctuation

Gain/(Loss)

on Foreign Debts (685,698) (87,911) 680.0

Taxation (32,103) (394) 8,048.0

(Loss)/Profit for the year (799,928) 61,740 (1,395.6)

457. The Authority’s cost of sales for the year under review

increased by 10.9% from GH¢1,851,057,000 in 2013 to

GH¢2,052,344,000 in 2014. The increase can be attributed to a rise in

the cost of fuel for the thermal power generation and purchase of

electricity. The operating loss occurred as a result of 63.2% increase

in administrative expenses.

458. A 291.0% increase in financial expenses can be attributed to

high interest on short term loans from GH¢31,133,000 in 2013 to

GH¢240,717,000 in 2014.

459. The Exchange Fluctuation Loss on Foreign Debts went up by

680.0% from GH¢87,911,000 in 2013 to GH¢685,698,000 in 2014. This

was as a result of the depreciation of the value of Ghana Cedis

against the US dollar and other foreign currencies in which loans

were held.

460. The year ended with a deficit of GH¢799,928,000 as against a

net profit of GH¢61,740,000 recorded in 2013, showing a high deficit



of 1,395.6%.

Financial position

461. Shown in Table 35 is the financial position of the Authority.

Table 35: Balance Sheet as at 31 December 2014

2014

GH¢’000’

2013

GH¢’000’

%

Change


Current Assets 3,912,589 2,222,398 76.1


Non-current Liabilities 1,739,390 754,014 130.9

Net Assets 5,376,669 4,526,346 18.8


462. Non-Current Assets rose from GH¢4,465,435,000 in 2013 to

GH¢6,645,943,000 in 2014, representing a 48.8% increase. This was

due to additions to fixed assets during the year.

463. Current Assets also rose by 76.1% from GH¢2,222,398,000 in

2013 to GH¢3,912,589,000 in 2014. This was due mainly to a 92.2%

increase in Trade and Other Receivables and 54.2% increase in Cash

and Bank balances.

464. Current Liabilities registered a significant increase of 144.6%

from GH¢1,407,473,000 in 2013 to GH¢3,442,473,000 in 2014. These

increases resulted in a 237.1% rise in Borrowings from

GH¢764,455,000 in 2013 to GH¢2,577,083,000 in 2014 and a 29.6% rise

in Trade and Other Payables.

465. Non-Current Liabilities recorded 130.9% increase over the



previous year figure of GH¢754,014,000. Increase in Long Term

Borrowings from GH¢616,433,000 in 2013 to GH¢1,555,538,000 in

2014 accounted for the rise.

466. The liquidity position of the Authority as measured by the

current ratio of 1.1:1 (2013: 1.6:1) showed an unhealthy position as

the Authority might not be able to meet its short-term obligations as


MANAGEMENT ISSUES

Unpaid Bills: Prestea Township – GH¢7,525,695.95

467. We noted that, power bills sent to Prestea Township on

monthly basis are not being paid, even though the power is

consumed. The Authority subsequently makes full provision for the

total amount each year. In the current year, an amount of

GH¢7,525,695.95 representing total power sales for the year was

provided for. In aggregate, the Authority has made a total provision

of GH¢25,963,188.08 in relation to the power consumed by Prestea

Township over the years.

468. The above situation occurred because the Prestea Township

is not being metered. The Authority absorbs the cost of supplying

power to the Prestea Township, thereby increasing its cost of

operations.

469. We therefore, advised that, management of the Authority

should consider introducing prepaid meters for customers in Prestea

Township or add Prestea Township to the customers of Electricity

Company of Ghana (ECG) so that, they can provide them with

prepaid meters.



470. Management responded that, they are working with ECG

and the Ministry of Power to resolve the Prestea Township billing

issue which has been long outstanding.

NORTHERN ELECTRICITY DISTRIBUTION

COMPANY LIMITED (NEDCO)

Introduction

471. This report covers the audited Financial Statements of the

Northern Electricity Distribution Company Limited (NEDCO) for

the financial year ended 31 December 2014.

Operational results

472. The Northern Electricity Distribution Company Limited

(NEDCO) recorded a loss of GH¢25,653,000 in 2014 as against a loss

of GH¢68,296,000 in 2013 representing 62.6% improved performance

over the 2013 figure.

Table 36: the detailed analysis of the performance indicators

2014

GH¢’000

2013

GH¢’000

%

Change

Revenue 325,634 182,494 78.4

Other Operating

Income

5,743 643 793.2

Finance Income 1,270 1,847 (31.2)

Total Income 332,647 184,984 79.8

Expenditure

Cost of Sales 337,548 235,903 43.1

Administrative

Expenses

20,662 17,377 18.9




Loss for the year (25,563) (68,296) (62.6)

473. Total Income rose by 79.8% from GH¢184,984,000 in 2013 to

GH¢332,647,000 in 2014. This resulted from 78.4% increase in

Revenue and a 793.2% increase in Other Operating Income over the

2013 figure.

474. Total Expenditure also went up by 41.4% from

GH¢253,280,000 in 2013 to GH¢358,210,000 in 2014. The increase was

due to 43.1% rise in Operating & General expenses.

Financial position

475. The Company’s financial position is shown in Table 37.

Table 37: provides the Company’s financial position as at 2014

2014

GH¢000

2013

GH¢000

%

Change


Current Assets 355,146 195,837 81.3

Current Liability 38,654 10,918 254.0

Non-current

Liabilities

328,125 254,751 28.8

Net Current Asset 316,492 184,919 71.2

Net Asset 743,504 490,991 51.4



in 2013 to GH¢755,137,000 in 2014. This was mainly caused by

additions to Fixed Assets and Revaluation adjustment to Other



Assets.

477. Current Assets went up by 81.3% from GH¢195,837,000 in

2013 to GH¢355,146,000 in 2014. The increase was due to 96.7%,

33.9% and 28.7% rise in Trade and Other receivable, Cash and Bank

balances and short-term investment respectively over the 2013

figures.

478. Current Liabilities registered an increase of 254.0% from

GH¢10,918,000 in 2013 to GH¢38,654,000 in 2014. This was due to an

increase in Trade and other payables.

479. Non-Current Liabilities rose by 28.8% from GH¢254,751,000

in 2013 to GH¢328,125,000. This was made up of VRA Current

Account.

480. The Company’s liquidity position of 9.2:1 (2013: 17.9:1)

showed its ability to pay its short term debts when they are due.

MANAGEMENT ISSUES

Need for an updated basis for provision for doubtful debt

481. Our view of the receivables for NEDCO revealed that they

continue to grow over the years. The receivables balance in 2013 was

GH¢168,228,107 while that of 2014 was GH¢277,665,688 showing an

increase of 65%. The percentage increase has been consistent over the

past three years ranging between 45% and 65%.

482. The policy on provision for doubtful debt to NEDCO based

on their previous movements and the receivable balances had been

pegged at 2% on the total receivables at the end of the year.

Considering the trend with which the balances keep increasing, there



is the need for management to have a second look at the provision.

483. We recommended that management must in consultation

with the Board consider changing the provision based on the

consistency and the trend of increases of the receivables over the

years.

MINISTRY OF FINANCE AND ECONOMIC PLANNING

SECURITIES AND EXCHANGE COMMISSION

Introduction

484. This report covers the audited accounts of the Securities and

Exchange Commission for the year ended 31 December 2014.

Operational results

485. The summary of the operations for the year under review is

provided in Table 38

Table 38: Performance Indicators for 2014

Income

2014

GH¢

2013

GH¢

%

Change

Grants – Ghana Government 2,409,249 1,480,096 62.8

Operating Income 3,923,240 2,111,861 85.8

Other Income 132,292 254,076 (47.9)

Investment Income 828,601 579,541 43

Total Income 7,293,382 4,425,574 64.8

Expenditure

Administration Programme

Delivery

4,962,400 3,773,162 31.5

Staff Loans – Market rate 173,527 147,106 18




to GH¢7,293,382 in 2014. This was mainly due to 85.8% increase in

Operating Income and 62.8% increase in Grants from Ghana

Government.

487. Total Expenditure Increased by 31% from GH¢3,920,268 in

2013 to GH¢5,135,927 in 2014. This was mainly due to 31.5% increase

in Administration and Programme Delivery Costs.

488. The Commission’s operations for the year ended with a

surplus of GH¢2,157,455 compared with a surplus of GH¢505,306 for

2013.

Financial position

489. Table 39 shows the financial position of the Commission as at

31 December 2014.


490. Non-Current Assets decreased slightly by 3.6% from


Charge

Total Expenditure 5,135,927 3,920,268 31

Surplus/(Deficit) 2,157,455 505,306 327

Item

2014

GH¢

2013

GH¢

%

Change


Current Assets 6,025,933 3,745,815 60.9



Net Assets 7,487,735 5,330,280 40.5




reclassification of Assets and depreciation charges.

491. Current Assets increased by 60.9% from GH¢3,745,815 in

2013 to GH¢6,025,933 in 2014. This was due to a 234.1% increase in

cash and cash equivalents and a 36.2% increase in short-term

investments.


2013 to GH¢365,517 in 2014. This was mainly due to a 48.8% increase

in Accounts payable and accrued liabilities.

493. Net Current Assets registered an increase of 64.8% to

GH¢5,660,416 during the year under review as compared to

GH¢3,434,360 in the previous year.

494. Net Assets of the Commission grew by 40.5% from

GH¢5,330,280 in 2013 to GH¢7,487,735 in 2014.

495. The liquidity position of the Commission as measured by the

current ratio of 16.5:1 (2013: 12.0:1) showed a very healthy position

as the Commission will be able to meet its short-term obligations as


MANAGEMENT ISSUES

Market Surveillance System

496. Section 9 (b) of the Securities Industry Law, 1993, PNDCL 333

as amended, mandates the Commission to maintain surveillance

over activities in the securities industry to ensure orderly, fair and



equitable dealings in securities.

497. We observed that the Market Surveillance system is not

functioning as expected and as a result the Commission is unable to

monitor and capture all trades at the Ghana Stock Exchange.

498. We recommended that management should take urgent steps

to fix the surveillance system. This will enable the Commission to

perform its statutory duty effectively and efficiently.

499. Management responded that they have taken note of our

recommendation.

COCOA MARKETING COMPANY (GHANA) LIMITED

Introduction


Cocoa Marketing Company (Ghana) Limited for the year ended 30

September 2014.

Operational results

501. The operational results of the Company for the year under

review ended with a surplus of GH¢9,815,483, thus registering 80.9%

increase over the 2013 surplus of GH¢5,425,260.

502. The Company’s performance indicators for the period under

review are provided in Table 40.




503. Total Income for the year increased by 49.6% from

GH¢79,112,899 in 2013 to GH¢118,326,797 in 2014. The 112.8% and

63% increase in Other Incomes and Sales Commission respectively

contributed to the rise in Total Income.


2013 to GH¢108,511,314 in 2014. The major items which accounted

for the increase were operating expenses of 62.6% and Establishment

Costs of 62.9%.

Financial position

505. Table 41 provides the Company’s financial position as at 30

September 2014.

Income

2014

GH¢

2013

GH¢

%

Change

Share of FOB 39,201,611 37,149,243 5.5

Sales Commission 33,329,173 20,442,943 63.0

Other Income 45,796,013 21,520,713 112.8

Total Income 118,326,797 79,112,899 49.6

Expenditure

Operating Expenses 51,926,768 31,939,486 62.6

Personnel Cost 43,247,883 32,738,561 32.1

Establishment Cost 6,059,196 3,718,841 62.9

Administrative Cost 1,793,396 1,810,964 (1.0)

Professional &

Financial Charges

1,428,236 567,816 151.5

Depreciation 773,731 1,030,720 (24.9)

Company Tax 3,282,104 1,881,251 74.5


Surplus 9,815,483 5,425,260 80.9



Table 41: Balance Sheet as at 30 September 2014

506. Non-Current Assets increased by 4.6% from GH¢3,211,055 in

2013 to GH¢3,359,430 in 2014. This was as a result of additions to

Buildings, Weighing Systems, Motor Vehicles, Furniture and

Equipment and Computers.


2013 to GH¢549,912,938 in 2014 due to reductions in Accounts

Receivable, warehouse rent prepayment and cash and short-term

deposits.

508. Current Liabilities reduced from GH¢695,692,947 in 2013 to

GH¢517,122,649 in 2014 representing a decline of 25.6%. This was

mainly due to a reduction in the Accounts payable from

GH¢619,765,567 in 2013 to GH¢450,633,699 in 2014.

509. The current ratio of 1.1:1 in 2014 indicates that the Company

may not be able to meet its short-term obligations when they fall

due.

MANAGEMENT ISSUES

Long outstanding Staff Imprest-GH¢48,485.00

510. Contrary to Section 29.4 (c) of Ghana Cocoa Board policies,

2014

GH¢

2013

GH¢

%

Change

Non-current Assets 3,359,430 3,211,055 4.6

Current Assets 549,912,938 718,816,128 (23.5)





imprest amounts released to fifteen staff members in 2013 and 2014

had not been retired nor adjusted to a personal advance account in

the name of the imprest holders as at the time of reporting. Below are

the details:

Date

Name

Amt. outstanding as at 30/09/14 (GH¢)

October 2013 SedinamMammara 1,500.00

February 2014 George Yaw Klu 2,500.00

November 2013 Francis Opare 173.00

February 2014 Francis Opare 1,230.00

December 2013 Susie Supeni 1,000.00

April 2014 Edwin Ofori Maclean 3,600.00

April 2014 KojoNstiful 3,244.00

January 2014 Joyce Poku-Dwomoh 10,000.00

January 2014 Francis Amoah 5,000.00

January 2014 Charles Kukah 10,000.00

January 2014 S.B.E.S. Nkrumah 2,788.00

March 2014 M. Osumana Abu 3,000.00

December 2014 Robert Abonga 950.00

November 2013 Evelyn Kyei 1,000.00

November 2013 Ralph Jones Quartey 2,500.00

48,485.00

511. This could lead to loss of money to the Company. We could

therefore not confirm whether the amount had been used in the

interest of the Company.



512. Consequently, management was advised to take necessary

action to immediately have the imprest retired or recovered by

adjusting it to the personal account of the imprest holders.

Staff Loans -Difference between Ledger balances and details

balances -GH¢2,215,148.13

513. We noted that differences between the various staff balances

and their control accounts of GH¢2,215,148.13 were not reconciled.

Please find details below:

Staff Loan

Scheme

Payroll Total

GH¢

Ledger

Balance

GH¢

Difference

GH¢

Household

Durable

66,087.34 67,284.90 1,197.56

Car/Motor Loan 2,723,229.01 3,023,689.33 300,460.23

Homeownership 3,343,629.01 5,123,755.79 1,780,135.78

Car Repair 46,655.87 121,416.53 74,760.66

Rent Advance 356,104.83 414,163.76 58,058.93

Training 11,839.80 17,189.02 5,349.22

Insurance 13,128.92 15,368.07 2,239.75

Education 2,885.15 3,088.15 1,000.00

Special Loan 13,823.54 5,668.79 (8,154.75)

2,215,148.13

514. We requested for balances on staff loan to confirm balances

listed on the payroll as at 30 September, 2014, and we noted that one

staff member Mr. Ernest Boadi who has been listed as owing

GH¢29,875 under the Homeownership Loan had actually not taken

any loan.



515. This was due to the fact that the ACCPAC Software used by

the Company did not have a subsidiary ledger for staff loan that

could be compared with the payroll list.

516. If this continues, the default in the recovery of loans from

staff would go unnoticed.

517. We recommended that subsidiary ledger for staff advances

should be created in the ACCPAC Accounting Software to take

records of these transactions.

518. Management responded that they are currently working at

finding the causes of the differences so as to correct them at source.

Dormant Accounts

519. In violation to best management practices which requires that

any amount due to any Company should be identified and collected,

we observed that, the Company’s debit balances on the under listed

accounts did not show any movement during these years.

520. This was because no action was taken to recover the

amounts.

521. We recommended that the makeup of the balances should be

reviewed and efforts made to collect them.

2014

GH¢

2013

GH¢

Ched 17,848 17,848

Seed Production 3,586 3,586



522. Management said, the two units’ attention has been drawn

and requested them to settle their indebtedness with the Company.

GHANA COCOA BOARD

Introduction

523. This report relates to the audited Financial Statement of the

Ghana Cocoa Board for the years ended 30 September 2013 and 2014.

Operational results

524. The Board recorded a profit of GH¢329,311,000 in the year

under review as against a loss of GH¢1,093,472,000 in 2013,

representing an improved performance of 130.1%.

525. Table 42 shows the income statement for the year ended 30

September 2014.

Table 42: Income Statement for the year ended 30 September 2014

2014

GH¢000

2013

GH¢000

%

Change

Revenue 6,030,610 3,753,856 60.7

Other Operating Income 59,300 38,481 54.1

Finance Income 156,899 104,587 50.0

Total Income 6,246,809 3,896,924 60.3

Expenditure

Direct Costs 4,919,081 3,755,576 31.0

Distribution Expenses 19,940 42,225 (52.8)

Administrative

Expenses

575,344 757,611 (24.1)

Finance Cost 399,845 433,103 (7.7)

Taxation 3,288 1,881 74.8

Total Expenses 5,917,498 4,990,396 18.6

Net Profit/(Loss) 329,311 (1,093,472) (130.1)



526. Total Income increased by 60.3% from GH¢3,896,924,000 in

2013 to GH¢6,246,809,000 in 2014. This was as a result of increases in

all the income components over the previous year’s figures.

527. Total Expenditure also went up by 18.6% or GH¢927,102

from GH¢4,990,396 in the previous year to GH¢5,917,498 in the year

under review. The 31.0% increase in Direct cost and 74.8% increase

in Tax expenses were largely responsible for the increase in total

expenses.

Financial position

528. The highlights of the Board’s financial position are presented

in Table 43.

Table 43: Financial Position as at 30 September 2014

2014 GH¢

2013 GH¢

% Change

Non-Current Assets 2,593,923 618,674 319.3

Current Assets 2,308,674 2,067,893 11.6


Non-current Liabilities 1,992,147 2,069,169 (3.7)

Net current Assets 490,403 381,589 28.5

Net Assets 1,092,179 (1,068,906) (202.2)


529. Non-Current Assets increased by 319.3% from

GH¢618,674,000 in 2013 to GH¢2,593,923,000 in 2014. Addition to

Fixed Assets and Revaluations of Land and Buildings which

constitute 97.9% of the Non-Current Assets mainly accounted for the

increase.



530. Current Assets increased from GH¢2,067,893,000 in 2013 to

GH¢2,308,674,000 in 2014, representing 11.6% rise. This increase was

largely due to increases in Trade and other receivables and Cash and

Cash equivalents.

531. Current Liabilities went up marginally by 7.8% from

GH¢1,686,304 in 2013 to GH¢1,818,271 in 2014. This was largely as a

result of a 73.4% increase in Trade and other payables.

532. The Board recorded a current ratio of 1.3:1 in the year under

review as compared with 1.2:1 in 2013. This shows that the Board can

barely meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Non-recognition of employee benefit obligations

533. We noted that COCOBOD operates the following employee

benefit schemes which provisions were not adequately made in

contravention to the requirement of International Accounting

Standard (IAS) 19 (Employee Benefits);

Superannuation (final salary) scheme

Post-retirement medical benefit

Long service award.

534. Non-recognition of employee benefits could result in the

misstatement of balances for employee benefit obligations.

535. We recommended that Management should engage the

services of qualified actuary to undertake actuarial valuations of

these benefits. The resultant valuations which should be updated



annually should then be recorded in the general ledger.

536. At the instance of the audit, management submitted the

required employee numbers and other necessary data to the

actuaries to compute the obligation for 2014.

Noncompliance with contributory insurance scheme for Cocoa,

Coffee and Shear nut farmers

537. We noted that management did not establish a contributory

insurance scheme for Cocoa, Coffee and shear nut farmers as well as

opening a Depreciation Reserve Account in contravention of Section

26(1) and 28 (1&2)of the Ghana Cocoa Board Act 1984 (PNDC L81) as

amended by Ghana Cocoa (Amendment) Law, 1991 (PNDC L 265)

538. Management should ensure that the provisions of the Act are

adhered to.

539. According to management, Depreciation Fund has been

established and Depreciation Revenue Account also opened in

compliance with the provisions of the law. Management is also in the

process of requesting for a review of the law as it is not practical to

implement the insurance scheme. This was duly verified.

Reconciling deliveries with invoiced quantities

540. Best practice requires that reconciliations are prepared on

regular basis so that any reconciling item(s) adjusted on time.

541. Contrary to this, we noted that actual deliveries of cocoa

beans were not reconciled and monitored against invoiced quantities



on a regular basis for financial reporting purposes.

542. Even though the marketing department prepared yearly

reconciliations with the local factories, we observed that these

reconciliations were performed after the year end and differences

identified were not reflected in the general ledger to correct any

misstatements from over/under-deliveries.

543. Upon further inquiry we were informed that a log was kept

of all over-deliveries and separate contract were written, and

invoices subsequently raised to recover associated revenues and

debts arising from over-deliveries. Irregular reconciliations and

monitoring of invoiced quantities against actual delivery of cocoa

beans could result in misstatements of revenues.

544. Going forward, management should design and implement a

more frequent system of reconciliation of actual deliveries of cocoa

beans against invoiced quantities. Internal monitoring of actual

deliveries against invoiced quantities could be performed on weekly

basis whilst monthly reconciliations are performed with the local

factories. These measures would facilitate early identification of

errors and other anomalies within the sales process, and thus lead to

timely investigations and resolution of issues identified.

545. Management in response stated that reconciliations are now

being done regularly. That notwithstanding, has subsequently settle

all disputed case of excess cocoa beans deliveries over the period and

has raised supplementary contract to cover them.

Off-site back up of data generated at the take-over centers



546. Best back-up practice requires that data is backed-up at an

off-site location on a regular basis to prevent loss of data in the event

of disasters or hardware and software malfunction.

547. We noted during the audit that, off-site back up procedures

for data captured at the cocoa take-over centres were inadequate.

For instance, the Cocoa Take-Over Receipts (CTOR) database for the

year ended 2011 for Kumasi could not be obtained. Upon further

inquiry management asserted that the data could not be obtained

because the computer used for capturing the data had crashed and

there was no back up.

548. The lack of adequate backup for data generated at the

takeover centers poses a risk of data loss in the event of disasters or

hardware and software malfunction. This risk is considered material

as a lot of data is generated at the take centers i.e. take-over and

delivery of the cocoa beans which form the core of COCOBOD’s

operations.

549. We recommended that management should design and

implement a backup policy for the take-over centers and ensure that

data is backed up to an off-site location on a regular basis.

550. Management noted our recommendation for implementation

in 2014/2015 financial year. Our follow up on the recommendation

indicated that data is now stored on the cloud with the ERP software

system. Separate external drives are also stored outside premises.

Copies are scanned to separate locations.

Monitoring and retention of source documentation for local

deliveries



551. We noted that COCOBOD uses a manual system for

recording cocoa deliveries to the local factories. These deliveries

were recorded on waybills and ‘cocoa delivery notes’ (CDNs). The

source documents i.e. Waybills and CDNs were not prepared on a

timely basis. In addition some of the source documents were not

appropriately retained for future reference.

552. Inadequate monitoring and retention of booklets of waybills

and CDNs issued could hinder the monitoring of issues and

subsequent usage of these documents.

553. We recommended that the following procedures should be

considered for adoption to reduce the identified risk.

When booklets are received from suppliers, the number of

booklets and their unique serial numbers should be recorded by

CMC accounts office before they are handed over to staff of

warehouse and Ports Operations (WPO)

Upon receipt, WPO (Head office) should record the number of

booklets and their corresponding serial numbers.

WPO should also keep a record of the total number of booklets

and their serial numbers issued to each take-over centre.

Each take-over centre should also keep a record of booklets

received.

At the point of issue to the sheds the area coordinators should

record the number of booklets and their serial numbers.

These booklets should be used in sequential order and completed

booklets should be retained and accounted for in an orderly

manner in a secured off-site location.

Regular checks should be performed to ensure compliance with

this process. The checks could take the form of planned monthly

checks and unannounced spot checks.



554. Management stated that they have taken note of the

recommendation. These deficiencies would be addressed by the

system upgrade and automation is being considered by

management.

SOCIAL SECURITY AND NATIONAL INSURANCE

TRUST (SSNIT)

Introduction

555. This report covers the audited accounts of the Social Security

and National Insurance Trust (SSNIT) for the period January 2013 to

31 December 2014.

Operational results

556. Total Income of the Trust rose by 25.0% from

GH¢1,675,215,000 in 2013 to GH¢2,094,659,000 in 2014.

Contributions received, remained the major components of total

income, accounting for 85.2% in 2014 as against 69.2% in 2013 due to

more members (both government and private sectors) joining the

scheme hence a rise in contributions.

557. Presented in Table 44 are the performance indicators for the

period under review.

Table 44: Income statement for 2014

Income

2014

GH¢

2013

GH¢

%

Change

Contribution Received 1,784,433 1,159,713 53.9

Net Investment Income 162,586 460,421 (64.7)

Other Income 147,640 55,081 168.0

Total Income 2,094,659 1,675,215 25.0



Expenditure

Operational Cost 90,545 67,257 34.6

Benefits 941,271 692,314 36.0

General and Administrative

Expenses

142,505 111,988 27.3

Transfer to NHIS 194,199 214,766 (9.6)


Net Surplus 726,139 588,890 23.3

558. Total expenditure made up of pensions benefits and general

administrative expenses among others increased by 26.0% from

GH¢1,086,325,000 in 2013 to GH¢1,368,520,000 in 2014. The

increment was mainly due to a rise in payments in respect of old age,

invalidity, death and survivors. The operational cost went up by

34.6% and was as a result of increase in personnel costs from

GH¢52,588,000 in 2013 to GH¢77,272,000 in 2014.

559. Operations for the year under review closed with an increase

in the surplus from GH¢588,890,000 in 2013 to GH¢726,139,000 in

2014, representing a 23.3% increase.

Financial position

560. The Trust’s financial position as at 31 December 2014 is

presented in Table 45.




2014

GH¢

2013

GH¢

%

Change


Current Assets 961,056 1,120,435 (14.2)


Net Assets 7,427,318 5,564,784 33.5



GH¢4,637,250,000 in 2013 to GH¢6,637,162,000 in 2014. Additions to

fixed assets from GH¢3,934,563,000 in 2013 to GH¢5,256,760,000 in

2014 or 33.6%, mainly accounted for the increase.

562. Current Assets, however, fell to GH¢961,056,000 in 2014 from

GH¢1,120,435,000 in 2013, a drop of 14.2%. A drop in housing stock

and cash and bank balances accounted for the decrease.

563. Current Liabilities also fell by 11.5% from GH¢192,901,000 in

2013 to GH¢170,900,000 in 2014. This was due to a drop in accounts

payable.

564. The Trust’s liquidity ratio of 5.6:1 (2013:5.8:1) was favourable

and indicated the Trust ability to meet its short term liabilities.



MANAGEMENT ISSUES

Fixed deposits in GIB not backed by Security assignment £620,000

(GH¢2,788,992.00)

565. We noted that fixed deposits with Ghana International Bank

(GIB) totaling £620,000 (GH¢2,788,992.00) were not supported by a

Security assignment, contrary to SSNIT’s own practice where fixed

deposits are backed by securities.

566. This anomaly occurred as a result of management’s decision

to convert dividend paid by the bank to fixed deposit in order to

earn interest.

567. In the event of a default, SSNIT stands to lose its investment

since there was no security to rely on.

568. We therefore recommended that SSNIT should request the

GIB to back the fixed deposits with securities, so that in times of

default, SSNIT can fall on the security to redeem the amount.

569. Management said, they have written to the Bank to seek

clarification on assignment of security for Fixed Deposits for their

next line of action and in conformity with their domestic fixed

deposit placements.

Non-performing loans – GH¢477,319,200.67

570. We noted that loans granted to eight private, public

institutions and organisations were not paid back. We also noted

that collaterals provided by these loans defaulters were not valued

so management cannot assess whether the loans are recoverable

from the sale of the collaterals. Below is the list of defaulters as at 31

December 2014.



Name of Entity

Loan balance

as at 31/12/2014

GH¢

FOS Aluminium Limited 1,366,563,79

Bridal Trust Limited 1,114,500.23

Ghana Leasing Company Limited 5,866,362.68

Ghana Road Fund Loan 261,698,706.24

Share Holders Advance (Bridal Trust) 193,129.40

Shareholder Advance (Intercity STC

Coaches)

20,292,258.13

Intercity STC Coaches Limited 10,712,512.20

Golden Beach Hotels 176,075,168.00

Total 477,319,200.67

571. Management’s inability to value and perfect the collaterals

provided by these organizations, may cause SSNIT to lose funds

which may eventually affect its ability to pay pensions in the future

and in a timely manner.

572. We recommended that, management of SSNIT should take

the necessary steps to recover the loans and strengthen its recovery

efforts. They should also value and perfect collaterals covering these

loans, so that recovering can be made from the sale of the collaterals.

573. Management responded that, they have obtained judgment

in court to recover the amount involved with FOS Aluminum

Limited and Bridal Trust and therefore ordered for judicial sale of

the mortgaged properties (land and building).

574. Management have also obtained judgment against Ghana

Leasing Company Limited and ordered for the sale of the leased



assets which were acquired with loan. With, Golden Beach Hotels,

the loan amount has been converted to shares.

575. For Ghana Road Fund, a final demand notice had been sent

to the Ministry of Finance and Ghana Road Fund Board to pay the

outstanding amount.

PUBLIC PROCUREMENT AUTHORITY

Introduction

576. This report relates to the audited financial statement of Public

Procurement Authority for the year ended 31 December 2014.

Operational results

577. Table 46 shows the summary of the Income Statement of the

Authority for the year ended 31 December 2014.

2014

GH¢

2013

GH¢

%

Change

Government Subvention 5,848,617 4,257,299 37.4

Grants and Other Income 195,126 72,971 167.5

Total Income 6,043,743 4,330,270 39.5


Service Activities 1,680,910 834,710 101.4

General and Administrative Expenses

1,047,024 879,310 19.1

Financial and Professional Charges 15,493 11,898 30.2


Surplus 623,527 200,124 211.5


GH¢6,043,743 due to an increase in Government Subvention from

GH¢4,257,299 in 2013 to GH¢5,848,617 in 2014 and Grants and other



income from GH¢72,971 in 2013 to GH¢1,951,126 in 2014.

579. Total Expenditure increased from GH¢4,130,146 in 2013 to

GH¢5,420,216 in 2014, an increase of 31.2%. This was largely due to

an increase in Service Activities from GH¢834,710 in 2013 to

GH¢1,680,910 in 2014.

580. The Authority’s operations for the year under review

recorded a surplus of GH¢623,527, an increase of 211.5% over the

previous year’s figure of GH¢200,124. This amount had been

transferred to Accumulated Fund Account.

Financial position

581. Shown in Table 47 is the financial position as at 31 December

2014.


2014

GH¢

2013

GH¢

%

Change


Current Assets 829,048 2,272,211 (63.5)


Net Assets 1,403,088 2,528,544 (44.5)



2013 to GH¢674,790 in 2014. The increase in Non-Current Assets is

due to additions during the year.




2013 to GH¢829,048 in 2014. This was mainly due to GH¢1,486,694

reduction in Cash and Bank balance.

584. Current Liabilities also decreased by 63.2% or GH¢173,383

from GH¢274,133 in the previous year to GH¢100,750 in 2014 mainly

due to decrease in accruals.

585. The Current ratio of 8.2:1 for the year as against that of 8.3:1

in 2013 shows that the Authority could meet its short term

obligations when they fall due.

MANAGEMENT ISSUES

Failure to remit Withholding Tax

586. In contravention of Section 89(1) of the Internal Revenue Act

2000 (Act 592), we observed that an amount of GH¢8,638 withheld as

tax from suppliers were not remitted to the Commissioner of

Domestic Tax Division of Ghana Revenue Authority.

587. Failure to remit taxes withheld to the Commissioner

promptly could attract penalty of not less than 20% of the amount

due to Ghana Revenue Authority. Also the contractors and the

suppliers may have difficulties in claiming their tax credits.

588. We recommended that all the withholding taxes outstanding

must be paid and the receipt given to the respective beneficiaries as

soon as possible.

589. Management responded that the delay in payment of

withholding taxes was as a result of financial constraints due to

irregular releases from the Ministry of Finance.

Other payables

590. Issued cheque not presented to the bank within six months



automatically becomes stale and the banks will not honour it after

the expiration of the six months period.

591. We realised that an amount of GH¢77,112 outstanding as

other accruals as at 31 December 2014 were due to cheques not

presented to the bank by service providers. Below is the age analysis

of the unpresented cheques.

Item

Date

Amount

GH¢

Unpresented

Cheques

2014 36,642

“ 2013 29,920

“ 2011 and

2012

10,550

Total 77,112

592. We further observed that some of these cheques were still in

possession of the finance department of the Authority and had not

been released to the beneficiaries.

593. The implication is that the financial statement may not be

fairly presented and reconciliation of bank accounts may be difficult

and also distort cash planning.

594. We recommended that the holders of the unpresented

cheques must be contacted for possible replacements.

595. Management responded that steps have been taken to replace

those cheques still in their custody.



Non-current assets register

596. Best accounting practice requires that the assets register and

non-current assets schedule in the Financial Statement should agree.

597. Non-current Assets register made available to us was still not

comprehensive and lacked detailed information of the various non-

current assets, such as date of purchase, their initial costs, location

and their respective accumulated depreciable amounts.

598. We further observed that the non-current assets of the

Authority did not have any identification or embossment numbers

on them to serve as a source of reference for easy identification and

inspection. It was therefore difficult to verify assets.

599. We recommended that all relevant information required on

each non-current assets owned by the Authority should be included

in the register and agreed with the non-current assets schedule in the

financial statements.

600. Management responded that they will expedite action to

complete and implement the usage of the assets register.

KUMASI ZONAL OFFICE

Non-embossment of Non-Current Assets

601. It was noted that some of the non-current assets at the

Kumasi Zonal office had not been embossed with any identification

numbers as at the time of our visit even though attention of

management was drawn to this issue in our previous reports.

602. This implies that if the assets are not properly embossed their



exposure to theft may be high and also verification and inspection of

the assets may be difficult.

603. We recommended that, all assets of the Authority should

have identification numbers embossed on them to serve as a source

of reference, and this should be quoted in the assets register.

604. Management responded that steps are being taken to resolve

such challenges.

Review and supervision of entities

605. The zonal office is responsible for the review, supervision

and ensuring the implementation of procurement procedures by all

the public entities of the Northern Zone per the Public Procurement

Authority demarcation. However, we noticed that the Zonal office

did not undertake any formal review of the entities in their zone

during the year ended 31 December 2014.

606. We again observed that the zonal offices were unable to visit

most entities outside the Ashanti region and Southern parts of Brong

Ahafo to observe the opening of tenders due to lack of funds.

607. The implication is that the Authority may not be able to fully

carry out its mandate in ensuring that public entities adhere to the

procurement modalities and procedures. Again verification and

confirmation of implementation of recommendations in annual

assessments report may be very difficult if not impossible.

608. We recommended that measures should be taken to ensure

that funds are made available for the supervision of entities as



requested by the Authority’s mandate.

609. Management accepted the recommendation for strict

compliance.

NATIONAL LOTTERY AUTHORITY

Introduction

610. This report covers the audited accounts of National Lottery

Authority for the years ended 31 December 2013 and 2014.

Operational results

611. The summary of National Lottery Authority’s operations for

the period under review is provided in Table 48.

Table 48: Performance Indicators for 2013 and 2014

Income

2014

GH¢

2013

GH¢

%

Change

Lotto Intake 315,918,377 255,238,053 23.8

Miscellaneous Income 2,285,013 1,909,216 19.7

Total Income 318,203,390 257,147,269 23.7

Expenditure

Direct Operating

Expenses

244,602,574 193,334,243 26.5

Personnel Cost 27,554,088 19,526,077 41.1

Administrative and

General Expenses

21,102,129 33,461,789 (36.9)

Finance Cost 623,052 -


Net Profit 24,944,599 10,202,108 144.5



612. Total Income for the period increased by 23.7% from


a 23.8% rise in lotto intake as well as a 19.7% rise in Miscellaneous

Income.

613. Total Expenditure went up by 18.8% from GH¢246,945,161 in

2013 to GH¢293,258,791 in 2014. The increase was mainly due to a

26.5% rise in direct operating expenses and a 41.1% increase in

Personnel cost.

614. The operational results for the period closed with a surplus of

GH¢24,944,599 as compared with a surplus of GH¢10,202,108

recorded in 2013, thereby showing a 144.5% increase.

Financial position

615. Table 49 shows the financial position of National Lottery

Authority as at 31 December 2013 and 2014.

|Table 49: Financial Position as at 31 December 2014

2014

GH¢

2013

GH¢

%

Change

Non-current

Assets

21,820,299 23,529,058 (7.3)

Current Assets 11,768,357 14,273,136 (17.5)


Net current

Assets

(12,946,217)

(27,749,574)

(53.4)


616. Non-Current Assets decreased by 7.3% from GH¢23,529,058

in 2013 to GH¢21,820,299 in 2014. This was due to depreciation



charged for the year.

617. Current Assets decreased from GH¢14,273,136 in 2013 to

GH¢11,768,357 in 2014 representing 17.5% decrease. It included

inventory balance of GH¢3,399,771, Prepayment of GH¢1,001,137

and cash and Bank balance of GH¢7,130,314.

618. Current Liabilities also decreased from GH¢42,022,710 in

2013 to GH¢24,714,574 in 2014 representing 41.2% reduction. This

was due to rise in payables.

619. The current ratio of 0.5:1 (2013: 0.3:1) showed that, the

Authority is insolvent and cannot meet its short term obligations

when they fall due.

MANAGEMENT ISSUES

Inaccurate Tax Rates and Non Payment of Taxes

620. In contravention to Internal Revenue Act 2000 (Act 592), we

noted that, Income taxes deducted from salaries of staff in the

Directorate section had not been paid since January 2014. The total

amount of these deductions was GH¢16,339.

621. We also noted that withholding taxes totaling GH¢112,330

deducted on the Staff and Board of Directors as well as tax on

severance pay deducted from payments made in March and May

had not been paid to Ghana Revenue Authority.

622. Additionally, the employee income tax computation was

wrongly calculated since the Authority did not take into

consideration the amended income tax rate which took effect from

May 2013.



623. The Authority not paying taxes withheld promptly could

lead to the imposition of penalty in addition to the amount withheld.

624. We recommended that the current income tax rate must be

used to compute the income tax deductions and all deductions due

the tax authorities should be paid.

625. Management stated that, the PAYE deductions have been

paid to GRA and would comply with the other recommendation.

Submission of Internal Audit Reports

626. Contrary to the National Lotto Act 2006 (Act 722) section 48

(a, b) copies of the internal audit reports presented to the Director

General and the Board chairperson were not submitted to the

Auditor-General and Minister responsible for finance.

627. We recommended that quarterly internal audit reports

should be presented to the relevant supervisory authorities as

required.

628. Management responded that the Audit Committee has met to

review the 2014 reports and is presenting their papers to the Board

following which copies will be sent to the Internal Audit Agency and

the Auditor-General.

Lack of policy on retrieval of amount from POST debtors

629. During the audit of debtors, we observed that there was no

clear policy on the retrieval of debt arising out of charging receivers

for stolen or lost Point of Sales Terminals (POST). This might lead to

over statement of POST debtors in subsequent period without the

Authorities being able to retrieve these moneys.



630. We recommended that management takes immediate steps to

put in place a policy on the retrieval of these debts and also educate

the receiver about the policy.

631. Management in response stated that, Finance is in the process

of putting in place a policy on the retrieval of these debts from POST

debtors. This shall be done with concerns and concurrence of other

departments, notably Operations, Sales and Marketing and IT.

GHANA EDUCATION TRUST FUND

Introduction

632. This report relates to the audited Financial Statements of the

Ghana Education Trust Fund (GETFund) for the year ended 31

December 2014.

Operational results

633. The details of the operations of the fund are provided in

Table 50.


2014

GH¢

2013

GH¢

%

Change

Allocation for

Operations

5,603,000 5,106,000 9.7

Other Income 101,719 23,100 340.3

Total Income 5,704,719 5,129,100 11.2


Surplus /Deficit 1,094,274 1,074,681 1.8




to GH¢5,704,719 in 2014. This was largely due to an increase in

Allocation for Operations and Other Income. Other Income increased

as a result of profit on disposal.

635. Total Expenditure also increased by 13.7% from

GH¢4,054,419 in 2013 to GH¢4,610,445 in 2014. This was largely due

to an increase in staff salaries and Allowances by 23.6% and

Maintenance & Running of Vehicles by 63.1%.

636. Excess income over expenditure recorded a marginal increase

of 1.8% from GH¢1,074,681 in 2013 to GH¢1,094,274 in 2014.

Financial position

637. The summarized statement of Financial Position of the Fund

as at 31 December 2014 is shown in Table 51.

Table 51: Statement of financial position- 2014.

2014

GH¢

2013

GH¢

%

Chan

ge

Non-current Assets

14,647,549

1,360,500

976.6

Current Asset 482,528,728 543,685,093 (11.2)


Net current Asset (216,950,738) (149,772,006) 44.9

Net Asset (202,303,189) (145,411,506) 39.1


638. Non-Current Asset comprise of Property, Plant and

Equipment and work-in-progress. This increased by 976.6% due to

additions to work-in-progress from GH¢380,589 in 2013 to



GH¢13,866,974 in 2014. This increase was mainly due to

GH¢13,340,529 incurred on GETFund office complex in 2014.

639. Current assets reduced from GH¢543,685,093 in 2013 to

GH¢482,528,728 in 2014 as result of reduction in amount due from

MOFEP.

640. The liquidity position of the fund as shown by current ratio

of 0.7:1 in 2014(0.8:1 in 2013) portrayed a worsen liquidity position

of the Fund. It means that the fund would not be able to meet its

short-term financial obligations as and when they fall due.

MANAGEMENT ISSUES

Delayed Payment of Withholding tax GH¢27,059,150

641. Our audit revealed that withholding tax of GH¢27,059,150 for

the period July 2013 to December 2014 had not been paid.

Meanwhile the contractors need the withholding tax receipts as

evidence to reduce their tax liabilities.

642. We recommended that management take the necessary steps

to settle the liability. Management responded that the

recommendations are noted and steps are being taken to settle the

liability by the end of December 2015.

2.5% VAT Proceeds to the Fund

643. Our audit revealed that the 2.5% VAT proceeds meant for the

Fund was not forthcoming as expected. As at 31 December 2014 only

GH¢382,801,463 had been received out of the expected amount of

GH¢730,815,498 leaving a balance of GH¢348,014,035 which

represents 47.6% arrears. This may not enhance the sustainability of



the fund, going forward.

644. We recommended that measures are put in place to ensure

that the proceeds are issued to the Fund as and when due.

645. Management did not respond to our observation.

STUDENTS’ LOAN TRUST FUND

Introduction

646. This report relates to the audited accounts of the Students’

Loan Trust Fund for the year ended 31 December 2014.

Operational results

647. The Trust fund recorded a surplus of GH¢1,749,210 for 2014 as

against GH¢127,421 in 2013. The performance indicators are shown in

Table 52.

Table 52: Income statement for the year ended 31 December 2014

Income

2014 GH¢

2013 GH¢

% Change

Administrative Grant 1,875,000 550,000 240.9

Interest on Student Loan 1,708,622 1,267,107 34.8


Other Income 59,283 18,679 217.4

Total 5,562,423 2,879,978 93.1

Expenditure

Staff Cost 1,483,935 1,197,402 24.0

Travelling and Transport 414,212 213,026 94.4

Financial and Professional Charges

36,745 22,680 62.0

Administrative & Other 1,585,848 1,081,440 46.6



Expenses

Provision for Bad Debt 292,474 238,009 22.8


Income Surplus 1,749,210 127,421 1,272.8

648. Total income increased from GH¢2,879,978 in 2013 to

GH¢5,562,423 in 2014, representing n increase of 93.1%. The increase

was mainly due to 241% increase in Administrative Grant.

649. The expenditure for the year under review also increased by

38% from GH¢2,752,557 in 2013 to GH¢3,813,213 in 2014. This was

due to increase in travelling and transport expenses by 94%.

Financial position

650. Details of the Student Trust Fund financial position for the

year ended 31 December 2014 is shown in Table 53.

Table 53: Student Trust Fund financial position

2014

GH¢

2013

GH¢

%

Change


Current Assets 58,355,745 16,640,893 250.7

Current Liabilities 110,820 137,473 ( 19.4)


Non-Current Liabilities 48,928,242 36,677,430 33.4

Net Assets 112,653,185 73,539,186 53.2

Current Ratio 526.6:1 121.5.1

651. Non-current Assets increased by 10% from GH¢93,713,196 in

2013 to GH¢103,336,501 in 2014 as a result of increase in unmatured

student loan outstanding from GH¢93,450,525 in 2013 to

GH¢102,772,463 in 2014.



652. Current Assets increased by 251% which is accounted for by

an increase in investment from GH¢6,540,628 in 2013 to

GH¢30,532,177 in 2014, representing an increase of 367%.

653. Current Liabilities decreased from GH¢137,473 in 2013 to

GH¢110,820 in 2014, representing 19.4%. The decrease was

accounted for by 87.7% drop of SSNIT disbursement charges, 34.24%

drop in consultancy services etc.

MANAGEMENT ISSUES

Loan Recovery

654. We observed that, out of the total amount of GH¢22.27

million due for recovery, only GH¢8.13 million was recovered

during the year representing 36% of the total amount.

655. Although the amount recovered increased from GH¢6.03

million to GH¢8.13 million in the year under review, in comparing

amount due with amount recovered, we noted a short fall of

GH¢14.4 million. However, in 2013 the shortfall was GH¢4.76

million.

656. Table below illustrates the percentage of recovery and the

shortfall in the recovery generated from fund’s application program

(SLMS).

Year

Amt. due

GH¢

Amt.

Recovered

GH¢

Shortfall

GH¢

% of

Amount

Recovered

% of

Shortf

all

2014 22,277,234 8,312,339 14,144,895 36 64

2013 10,794,465 6,034,283 4,760,182 55 45

2012 5,519,096 1,938,869 3,535,227 35 65

2011 1,051,956 497,175 554,777 47 53



657. As management is fully aware, the risk of default increases

significantly when the amount become overdue. Additionally, failure

to recover the amount due deprives the fund of resources to be used

in expansion of the scheme.

658. We recommended that management should intensify efforts

for locating all borrowers (including those in the informal sector) in

order to recover not only overdue amounts but amount due

currently.

659. Management has noted the above comment on the potential

risk of possible high default by beneficiaries. Management quest to

ensure high recoveries of monies due has a direct bearing on our

promotional and advertising budget that increased significantly over

the 2013 figure. Management gave assurance that it will continue to

engage appropriate measured to ensure improvement in

repayments.

Loan Disbursements

660. The core activity of the fund is disbursement of loans to

tertiary level students in accredited institutions in Ghana. We noted

that total loans disbursed to students represents 48% of the total

grant received during the year under review.

661. The Table below indicates the relationship between loans

disbursed and grants received.

Year

Net Grant Received GH¢

Loan Disbursed GH¢

% of Loan Disbursed

2014 37,364,789 17,824,634 48

2013 2,825,249 7,924,895 281

2012 12,262,276 8,755,623 71



662. During the year under review, students in teacher Training

colleges began accessing loans from the fund. We noted that only

2,731 students out of about 15,000 eligible students received loans

during the year under review.

663. We recommended that management should intensify efforts

to increase the loan disbursed to students in order to realize the

fund’s objectives of supporting needy students.

664. Management responded that, their effort to improve

disbursement figure is evident by the over 22.5% increase in amount

disbursed over the previous years. Management noted our

comments for compliance.

NATIONAL INSURANCE COMMISSION

Introduction

665. This report relates to the audited accounts of the National

Insurance Commission for the year ended 31 December 2014.

Operational results

666. The Commission made a surplus of GH¢1,640,895 during the

2014 financial year as against GH¢220,282 for the 2013 financial year.

This represented a 644.9% increase over the previous year’s figure.

The Summary of the Commission’s performance for the period

under review is shown in Table 54.




Income

2014

GH¢

2013

GH¢

%

Change

Income 11,593,863 8,558,673 35.5

Other Income 34,890 317,291 (89)

Total Income 11,628,753 8,875,964 31

Expenditure 9,987,658 8,655,682 15.4

Surplus 1,640,895 220,282 644.9

667. Total Income for the year stood at GH¢11,628,753 as against

GH¢8,875,964 during the 2013 financial year. This represented a 31%

increase over the 2013 year. The rise in income was mainly due to

392% increase in Licensing and Renewal income.

668. Total Expenditure rose from GH¢8,655,682 in 2013 to

GH¢9,987,858 in 2014, representing 15.4% rise. The increase in total

expenditure was mainly due to 87.5%, increase in cost of stickers and

Adhesive.

Financial position

669. Table 55 shows a summary of the Commission’s financial

position as at the end of the year 2014.


2014

GH¢

2013

GH¢

%

Change


Current Assets 6,300,422 5,046,158 24.8



Net Assets 6,980,183 5,364,723 30.1




670. Non-Current Assets for 2014 was GH¢1,557,777 as compared

to GH¢1,263,861 for the 2013 financial year, representing an increase

of 23.2% over the 2013 figure. The increase was due to acquisitions

of Property, Plant and Equipment.

671. Current Assets recorded a 24.8% increase from GH¢5,046,158

in 2013 to GH¢6,300,422 in 2014. The increase was mainly due to

increase in Short-term Investment and Cash and Cash Equipment

672. Current Liabilities dropped by 7.11% from GH¢945,296 in

2013 to GH¢878,016 in 2014. The decrease was attributed to a decline

in Accounts payable and Accruals.

673. There was an improvement in the Commission’s current ratio

of 7.2:1 (2013:5.3:1), an indication of the Commission’s ability to meet

its short-term obligations when they fall due.

NATIONAL INSURANCE COMMISSION – FIRE MAINTENANCE

FUND

Introduction


Insurance Commission, Fire Maintenance Fund for the year ended 31

December 2014.

Operational results

675. The Fund recorded a surplus of GH¢315,807 during the year

under review, an increase of 16.19% over that of the previous year’s

figure of GH¢271,794.

676. The summary of the fund’s performance is shown in Table

56.




677. Total Income for the year under review increased by 13.5%

from GH¢304,500 in 2013 to GH¢345,456 in 2014. This was due to a

significant increase of 418.4% in investment Income.

678. Total Expenditure fell from GH¢32,706 in 2013 to GH¢29,649

in 2014, representing a fall of 9.3%. This was due to a 100% fall in

support to Ghana National Fire Services, from GH¢10,000 in 2013 to

a nil figure in 2014.

Financial position

Table 57 is the Fund’s financial position as at 31 December, 2014.

2014

GH¢

2013

GH¢

%

Change

Current Assets 641,745 331,267 93.7



Current Ratio 94:1 27.2:1

679. Current Assets increased significantly by 93.7% from

Income

2014

GH¢

2013

GH¢

%

Change

Contribution from

Insurance Companies

256,455 287,333 (10.7)

Investment Income 89,001 17,167 418.4

Total Income 345,456 304,500 13.5

Expenditure 29,649 32,706 (9.3)

Surplus 315,807 271,794 16.2



GH¢331,267 in 2013 to GH¢641,745 in 2014. This was due mainly to

increases in Short-term investment by 115.6% and Account

Receivable by 113.3%.

680. Current Liabilities however declined by 43.8% from

GH¢12,154 in 2013 to GH¢6,825 in 2014, due to a decrease in Account

payable.

681. The Fund’s liquidity position of 94.1 in 2014 (2013: 27.2:1)

showed its ability to pay its short-term debts when they are due.

NATIONAL INSURANCE COMMISSION - CLIENT RESCUE

FUND

Introduction


Insurance Commission, Client Rescue Fund for the year ended 31

December 2014.

Operational results

683. The Fund recorded a surplus of GH¢1,087,834 in 2014

compared with GH¢572,661 in 2013, an increase of 90%. The



Income

2014

GH¢

2013

GH¢

%

Change

Contribution from

Insurance Companies

904,179

655,072

38.0

Investment Income 272,164 28,502 854.9

Total Income 1,176,343 683,574 72.1



684. Total Income for the year under review increased by 72.1%

from GH¢683,574 in 2013 to GH¢1,176,343 in 2014. This was due to a

significant increase of 854.9% in investment income and 38.0% in

contributions from Insurance Companies.

685. Total Expenditure dropped from GH¢110,913 in 2013 to

GH¢88,509 in 2014, representing a fall of 20.2%. This was due to a

fall of 20.3% in expenses relating to enforcement actions.

Financial position

686. Table 59 shows the financial position of the fund.



2013 to GH¢2,272,123 in 2014. This was due to increase in Short

Term Investment from GH¢549,997 in 2013 to GH¢1,760,136 in 2014.

688. Current Liabilities dropped from GH¢11,734 in 2013 to

Expenditure

Enforcement Action 74,076 92,948 (20.3)

Other Expenses 14,433 17,965 (19.7)


Surplus 1,087,834 572,661 90.0

2014

GH¢

2013

GH¢

%

Change

Current Assets 2,272,123 1,186,958 91.4


Net Current Asset 2,263,058 1,175,224 92.6




GH¢9,065 in 2014, representing a fall of 22.7%. This was as a result

of a reduction in Accounts payable.

689. The Fund’s liquidity position stood at 250.6:1 in 2014 (2013:

101.1:1) showed its ability to pay its short term debts when they fall

due.

NATIONAL INSURANCE COMMISSION – MOTOR

COMPENSATION FUND

Introduction


Insurance Commission, Motor Compensation fund for the year


Operational results

691. The Fund made a surplus of GH¢496,024 during the 2014

financial year as against GH¢426,300 in 2013. This represented an

increase of 16.4% over the previous year’s figure. The performance

indicators are shown Table 60.


692. Total Income went up by 43.8% as a result of increases in

contribution from Insurance Companies from GH¢443,655 in 2013 to

GH¢658,949 in 2014, representing a 48.5% increase.

693. Expenditure for the year increased by 69.8% from

GH¢448,276 in 2013 to GH¢761,254 in 2014. The major items which

2014

GH¢

2013

GH¢

%

Change

Income 1,257,278 874,576 43.8

Expenditure 761,254 448,276 69.8

Surplus 496,024 426,300 16.4



accounted for the increase were depreciation of GH¢30,912 (2013:

GH¢4,732), a rise of 553.3% and Compensation awards of

GH¢551,900 (2013: GH¢278,952).

Financial position

694. A summary of the Fund’s financial position as at 31

December 2014 is shown Table 61.


695. The Fund’s Non-Current Assets shot up by 156.9% from

GH¢66,670 in 2013 to GH¢171,297 in 2014. The increase was as result

of additions to Property, Plant and Equipment.

696. Current Assets of the fund recorded an increase of 16.5%

from GH¢2,322,313 in 2013 to GH¢2,706,551 in 2014. This was

mainly due to increase in Accounts Receivable and Short term

investments by 130.2% and 20.0% respectively.

697. Current Liabilities recorded a 52.1% fall from GH¢13,733 in

2013 to GH¢6,574 in 2014. This resulted from a reduction in Account

payable.

698. The current ratio of 411.7:1 (2013: 169.1:1) far exceeded the

benchmark of 2:1. This is an indication of the Fund’s ability to meet

2014

GH¢

2013

GH¢

%

Change


Current Assets 2,706,551 2,322,313 16.5






its short term liabilities as and when they fall due.

VENTURE CAPITAL TRUST FUND

Introduction

699. This report relates to the audited accounts of the Venture

Capital Trust Fund for the years ended 31 December 2013 and 2014.

Operational results

700. The fund closed 2014 with a surplus of GH¢7,206,390 as

compared with a deficit of GH¢2,429,555 in 2013. This represented a

396.6% increase. Details of the performance indicators are shown in

Table 62.


Income

2014

GH¢

2013

GH¢

%

Change


Grant from Rockefeller-Fund - 177,998 -

Grant from Ministry of

Finance

10,000,000 - -

Total Income 15,593,426 4,749,477 228.3

Expenditure

Staff Cost 2,137,268 1,491,320 43.3

Trustees Emoluments 234,172 380,113 (38.4)

Administrative Expenses 3,700,200 1,718,561 115.3

Financial Cost 21,835 5,208 319.3

Rockefeller Foundation

Expenses

- 177,998 -


Net Operating Income 9,499,951 976,277 873.1

Less Impairment loss on 8,383,269 10,735,401 (21.9)



loans

1,116,682 (9,759,124) (111.4)

Net Changes in Fair Value of

Financial Assets

6,089,708

7,329,569

16.9

Surplus/(Deficit) 7,206,390 (2,429,555) (396.6)


to GH¢15,593,426 in 2014. The increase was due to a 22.4% rise in the

operating income and a grant of GH¢10,000,000 that was received

from the Ministry of Finance in 2014.

702. Total Expenditure increased by 61.5%, from GH¢3,773,200 in

2013 to GH¢6,093,475 in 2014. The increase was mainly due to 115.3%

rise in Administrative cost and 319.3% rise in financial cost.

Financial position

703. Table 63 shows a summary of the Funds Financial Position as

at 31 December 2014.

Table 63: Assets and Liabilities as at 31 December, 2014

2014

GH¢

2013

GH¢

%

Change


Current Assets 16,747,888 18,214,303 (8.1)


Net Current Assets 16,390,456 17,723,342 (7.5)

Net Assets 44,497,247 37,290,857 19.3


704. Non-current Assets closed in 2014 with GH¢28,106,791 as



compared with GH¢19,567,515 in 2013, representing an increase of

43.6%. This was as a result of additions to fixed Assets as well as

unrealized gains in the Financial Assets.

705. Current Assets reduced by 8.1% from GH¢18,214,303 in 2013

to GH¢16,747,888 in 2014. This was due to a 28.5% decrease in loans

and a 3.4% decrease in Cash and Cash Equivalents.

706. Current Liabilities reduced to GH¢357,432 in 2014 as against

GH¢490,961 in 2013, representing a 27.2% decrease. Part payment of

Payables and Bank Overdraft accounted for the reduction.

707. Current Ratio for both years shows the Fund’s ability to meet

immediate financial obligations. The ratio improved in the year

under review closing with 46.9:1 as against 37.1:1 in 2013.

MANAGEMENT ISSUES

Wrongful payment of US$3,649,134 for the property

Situated at North Ridge

708. We noted that the fund purchased a property at North Ridge

valued at US$3,000,000 from SIC-FSL. Though a total amount of

US$2,810,000.00 was paid to SIC-FSL, records at Lands Commission

showed that, the property had been registered in the name of the

Trustees of the Bethany Church and not SIC-FSL. There was no

evidence to prove that Bethany Church authorized SIC FSL to

receive funds on their behalf.

709. We further noted that an amount of US$839,134.00 was paid

on different dates as indicated below to Nana Kwame Adusei and

Dr. Prince Blankson representatives of Bethany Church



Date Payee US$

22/11/2011 Nana Kwame Adusei 190,000.00

14/06/2012 Nana Kwame Adusei 35,000.00

27/03/2013 Dr. Prince Blankson 614,134.00

TOTAL 839,134.00

710. However, we could not obtain any power of attorney from

trustees of the Bethany Church (owners of the property) authorizing

the representatives to collect monies on their behalf.

711. We attributed the lapses to the failure of management to

exercise due diligence to search at the Lands Commission to

establish the true ownership of the property; resulting in wrongful

payments of US$3,649,134.00 to SIC-FSL and the two alleged

representatives of Bethany Church.

712. We recommended to management to ensure that the Fund

recover US$3,649,134 from the illegal recipients of the money.

Additionally, management whose inaction resulted in the

illegitimate payment of the money should be sanctioned.

713. Management responded that the issue has been sent to the

court.

Gratuity to Board of Trustees without approval

714. Section 13 of the Venture Capital Trust Fund Act, 2004 (Act

680) requires that payments of allowances to chairperson and other

members shall be determined by the Minister of Finance.

715. We observed that an amount of GH¢114,360 was paid as

gratuity to six board members without the Sector Minister’s

approval.



716. The implication is that the payment had not been approved

as stated in the Trusts Fund Act, hence rendering the payment

illegitimate.

717. We therefore recommended that, for the amount to stand

charged to the funds account an approval should be sought from the

Minister or the amounts should be recovered to chest.

718. Management gave assurance that a letter has been sent to the

Minister and are still waiting for the approval from the Minster.

Accountable Imprest not retired – GH¢282,389

719. Contrary to Regulation 288(1) of the FAR and in spite of our

previous audit recommendation, we noted that a total amount of

GH¢282,389 granted to six staff including board trustee members

have not been accounted for even though the programs for which the

imprest were given had been completed. Details are shown below:

Name Amount (GH¢)

Daniel Duku 207,162

Susan Okyere 11,287

Richard Lassey 35,676

Daniel Bebaako 9,208

Percy Ampomah 3,412

Cliford Mpare 15,644

Total 282,389

720. As at 31 December 2014 the balances had been standing for

more than two years.

721. The irregularity noted was because management failed to put

in place measures that would enforce the implementation of

Regulation 288(1).



722. At the instance of the audit, Mr. Daniel Duku accounted for

his outstanding imprest of GH¢207,162 on the 19 August 2015. We

urged management to ensure the rest account for their balances

without delay and the prescribed sanctions to be applied to

defaulters. Meanwhile management should ensure timely retirement

of imprests.

723. Management has written to both staff and trustees concerned

to account for their imprest within 48 hours or the said amount

would be deducted from their salaries. Management also mentioned

that 75% of the total imprest has been recovered.

Non-approval of loans – GH¢1,479,402.00

724. Contrary to Section 15(5&6) of the Venture Capital Trust

Fund Act, 2004, Act 680 which states that the board shall within 28

days after the receipt of an application, grant the application if

specified conditions are fulfilled, we observed that out of 154 files

examined, 53 representing 34% do not have documents to prove that

the loans were approved.

725. This was as a result of improper keeping of records on

borrowers. The effect is that it puts the fund at risk of loans being

approved without meeting the set criteria. Also officials may take

advantage of this lapse and push loans that have not been through.

726. We advised management to ensure that all files are updated

by the investment department.

727. Management has promised to ensure that all files are

updated.



Loans granted without signed agreements - GH¢1,305,967

728. Best practice requires that upon approval of loan application,

an agreement that spells out terms and conditions, including interest

rates, repayment amount, starts and end periods, is signed between

the Trust Fund and the borrower.

729. It was noted in cause of the audit that loan agreements on

some files were not signed and dated by the recipient. This was as a

result of lapses in the process and procedures bothering on

ineffective monitoring and follow ups.

730. In the event of a dispute resulting from defaults or a breach,

management may face challenges in bringing legal action against

clients or borrowers. Thus the agreement is rendered ineffective.

731. We recommended to management to ensure all loan

agreements are properly signed and dated. Additionally,

beneficiaries who have not signed their loan agreements should be

called upon to sign.

732. Management has assured that all agreements would be

looked at and regularised as updating of records is ongoing.

Granting loans without sufficient information

On borrower’s location - GH¢914,654.00

733. Acceptable practices demands that particulars of borrowers

such as location and registered offices where borrowers operate,

must be on file.

734. Fifty-one percent (51%) of files examined, that is 79 out of 154



files did not have information on the location of borrowers and the

registered offices.

735. This situation will make it difficult for the fund monitor to

evaluate the performance of those companies.

736. We recommended to management to ensure that a record of

the location of each borrower is on file.

737. Management stated that updating of files is in progress.

BANK OF GHANA

Introduction


Bank of Ghana (BOG) for the period 1 January 2013 to 31 December

2014.

Operational results

739. The Bank recorded a profit of GH¢963,911,000 in 2014 as

compared to GH¢341,322,000 in 2013, representing an improved

performance of 182.4% over the prior year’s figure. The Banks

performance indicators for the period are provided in Table 64.

Table 64: Statement of Profit or Loss for the year 2014

Income

2014

GH¢000

2013

GH¢000

%

Changes

Interest Income 1,803,145 1,322,119 36.4

Fee & Commission

Income

104,085 80,469 29.4

Other Operating

Income

88,511 63,574 39.2



Exchange Differences 449,517 (43,759) (1,127.3)

Dividend Income - 12,280 -

Total 2,445,258 1,434,683 70.4

Expenditure

Interest Expenses 901,818 666,517 35.3

Administration 369,626 320,456 15.3

Premises & Equipment 56,108 34,155 64.3

Currency and Issue 68,985 59,260 16.4

Impairment

Recognized

63,739 - -

Taxation 21,071 12,973 62.4

Total 1,481,347 1,093,361 35.5

Profit for the year 963,911 341,322 182.4

740. Total Income went up by 70.4% from GH¢1,434,683,000 in

2013 to GH¢2,445,258,000 in 2014. This was attributed to increases in

all the income components for the year with exchange differences

being the main contributor.

741. Total expenditure increased by 35.5% from GH¢1,093,361,000

in 2013 to GH¢1,481,347 in 2014. This was as a result of increases in

all expenditure items over the previous year’s figures.

Financial position

742. A summary of statement of financial position of the Bank as

at 31 December 2014 is shown in Table 65.




2014

GH¢000

2013

GH¢000

%

Changes

Total Assets 40,725,867 27,615,255 47.5

Liabilities 36,794,373 24,698,288 49.0

Net Assets

(Equity)

3,931,494 2,916,967 34.8

743. Total Assets rose by 47.5% from GH¢27,615,255,000 in the

previous year to GH¢40,725,867,000 in 2014. The rise was as a result

of a significant increase in cash and amounts due from other Banks

and Loans and Advances.

744. Total Liabilities in 2014 also increased by 49.0% to

GH¢36,794,373,000 as against GH¢24,698,288,000 recorded in 2013.

Deposits, other liabilities, Liabilities to IMF, and Currency in

circulation accounted for the increase.

745. Net assets for the year increased from GH¢2,916,967,000 in

the previous year to GH¢3,931,494,000 in 2014, representing a rise of

34.8%. The rise in net assets was due to an increase in total assets.

GHANA INVESTMENT PROMOTION CENTRE

Introduction


Investment Promotion Centre for the year ended 31 December, 2012.

Operational Results

747. The year 2012 closed with an excess Income of GH¢305,032



representing a decrease of 64.1% from the previous year’s results of

GH¢848,377. Details of the performance indicators are shown in

Table 66.

Table 66: Income Statement for 2012.

Income

2012

GH¢

2011

GH¢

%

Change

Ghana Government

Subventions

1,310,069 630,298 107.9

Internally Generated Funds 6,803,571 6,209,267 9.6

Private Sector Dev. Strategy

Grant

- 96,230 -

Other Income 393,501 372,544 5.6

Total Income 8,507,141 7,308,339 16.4

Expenditure


Expenses

8,186,760 6,445,555 27.0

Financial Charges 15,349 14,407 65.0


Excess Income 305,032 848,377 64.1


to GH¢8,507,141 in 2012 Ghana Government Subventions mainly

accounted for the increase by 107.9%, from GH¢630,298 in 2011 to

GH¢1,310,069 in 2012

749. Total Expenditure increased by 27% from GH¢6,459,962 in

2011 to GH¢8,202,109 in 2012. Salaries and Other Related costs

which is a component of the General and Administrative Expenses

increased by 35%, from GH¢2,809,890 in 2011 to GH¢3,802,339 in

2012. Consultancy/Professional Fees also increased by 134.3%, from



GH¢81,897 to GH¢191,876 in 2011 and 2012 respectively.

Financial Position

750. Table 67 is a summary of the entity’s Financial Position as at

the end of 2012.

Table 67: Statement of Financial Position as at 31 December

2012

GH¢

2011

GH¢

%

Change

Non-current Assets 2,630,611 2,714,289 (3.1)

Current Assets 1,342,117 1,021,290 31.4


Net Current Assets 1,175,211 786,501 49.4

Net Assets 3,805,822 3,500,790 8.7


751. Non-current Assets decreased by 3.1% from GH¢2,714,289 in

2011 to GH¢2,630,611 in 2012. Investments reduced by 16.7% from

GH¢600,000 in 2011 to GH¢500,000 in 2012.


2011 to GH¢1,342,117 in 2012. This was due to a 143.6% increment in

Account Receivable and a 30% increase in Cash and Bank Balances.


2011 to GH¢166,906 in 2012. The reduction was due to a 100%

payment of an amount owed Stallion Motors Ghana Ltd. and a 28%

reduction in other payable which moved from GH¢194,392 in 2011 to

GH¢139,906 in 2012.

754. Net current Assets improved further in 2012 by 49.4% from

GH¢786,501 in 2011 to GH¢1,175,211 in 2012. This is an indication of



a sound position in the organisation’s ability in meeting short-term

obligations and this is evident from the results of the Current Ratio

in 2012 of 8.0:1 and 4.3:1 in 2011.

MANAGEMENT ISSUES

Cash Payment in Lieu of Annual Leave Days

755. We noted that contrary to Act 651 of Ghana Labour Law of

2003 and in spite of our 2010 and 2011 reports, the Centre had

converted leave days of some staffs into a total cash of GH¢46,283.56

and without the deduction of taxes. Table 67 shows the details.

Name

Year

Amount

GH¢

George Aboagye (CEO) 2011 27,864.98

Edward B.A. Lartey 2011 7,105.24

Vivian Agyepong 2011 4,687.68

Doris Anyan 2011 2,373.03

KaziaDarko 2011 1,790.88

Tetteh Ani 2011 1,080.25

Charles Kwarteng 2011 1,381.50

46,283.56

756. This is a complete disregard of the Labour Law and

favouratism of some selected staff.

757. We recommended that management strictly adheres to the

Labour laws and to also enforce compliance of leave register.

758. Management however, assured the Audit Team of putting

mechanisms in place to ensure that staff take annual leave within the

year, any outstanding days shall be written off if not supported by a



written permission from the Head of Department. Also the

beneficiaries are to pay appropriate taxes on amounts collected.

Foreign Advertising Contracts

759. We observed that contrary to the Public Procurement Act,

2003 (Act 663) all the advertisement contracts signed with foreign

companies were not through competitive bidding and were

approved single-handed by the Chief Executive Officer. Details of

selected contracts are presented in Table 68 below.

Name

Amount In Foreign

Currency

Amount

In

GH¢

Globus Vision Limited Euro 25,000

56,528.74

Prisma Group Limited Euro 15,000 Part-

payment

17,159.85

Quality Communication

Production Ltd.

US$ 33,000

59,400.00

760. Outstanding balance owed Prisma Group Limited was not

provided for in the accounts. This has understated both the total

Advertisement Expenditure and Liabilities.

761. We also observed that the payments to the foreign

advertising companies were not subjected to withholding tax

resulting in loss of revenue.

762. We therefore recommended that such contracts should be

carried out only in accordance with the law. The Chief Executive



Officer has been advised to desist from awarding contracts which are

above the stipulated threshold. Also, we recommended that

henceforth, taxes should be withheld on payments made to these

companies.

763. Management accepted all the recommendations and agreed

to comply with all the relevant statutes.

Inadequate Documentation - Sponsorship in kind

764. It came up during the audit that the GIPC had barter

transactions with some organizations for sponsorship during the

Ghana Club 100 programme. These transactions were without any

formally agreed and signed arrangements of contract. Normal

primary documentations such as invoices were also not available.

Lastly, the organization couldn’t monitor adverts in both

newspapers and live coverage that was carried by Radio Gold.

765. The above has the risk of income generated from sponsorship

being misstated.

766. We recommended to management that, there should be

proper documentation on all operations and transactions of the

Centre.

767. Management accepted our recommendation for compliance.

Printing and Publication – Royal Mediatec Investment

768. We noted during the audit that 89% of the total printing and

publications at GIPC is handled by Royal Mediatec Investment.

There was no indication of the award being competitively bided.

769. The irregularity was due to the fact that the organization



didn’t adhere to the Public Procurement Act.

770. We recommended to management to ensure that the process

conform to the Public Procurement Act. Thus all purchases above the

threshold should be referred to the appropriate Tender Committee.

Office Rent

771. GIPC paid an amount of GH¢ 14,400 for a four year rent for

the Tamale Regional Office but failed to occupy the premises. The

agreement expired without the centre making use of the premises,

implying that the Centre’s fund has gone wasted.

772. We recommended that management should follow up and

establish why payment was made without using the premises and

whoever caused the loss should be surcharged with the cost

involved.

773. Management has accepted for strict compliance.

MINISTRY OF EDUCATION

UNIVERSITY OF HEALTH AND ALLIED SCIENCES

Introduction

774. This report relates to the audited accounts of University of

Health and Allied Sciences for the period 1 April 2012 to 31

December 2013. However, the comparative figures cannot be

provided, since this is a maiden audit.

Operational results

775. Operations for the year closed with a deficit of GH¢2,213,560.

Presented in Table 69 are the performance indicators for the 2013



financial year.


Income

2013

GH¢

Tuition Fees 732,193

Government & Other Public Inst.

Subvention

2,933,425

Research Grant 959,788

Other Income 927,720

Total Income 5,553,126

Expenses

Administrative and General Expenses 2,946,532

Salaries and Benefits 3,647,157

Depreciation 993,421

Repairs and Maintenance 179,576

Total Expenditure 7,766,686

(Deficit)/Surplus (2,213,560)

776. Total Income registered GH¢5,553,126 in 2013 which is made

up of Tuition Fees of GH¢732,193, Government and other Public

Institution Subvention of GH¢2,933,425, Research Grant of

GH¢959,788 and Other Income of GH¢927,720. Government and

other Public Institute Subvention represent 52.8% of the total income.

777. Total Expenditure registered GH¢7,766,686 in 2013 which is

made up of Administrative and General Expenses of GH¢2,946,532

and Salaries and Benefits of GH¢3,647,157. Administrative expenses

and Salaries/Benefit represents 37.9% and 47% respectively of the

total expenditure.



Financial position

778. The University’s financial position, as at 31 December 2013 is

shown in Table 70.


2013

GH¢

Non-Current Assets 10,838,939

Current Assets 2,169,796

Current Liabilities 1,391,696

Non-Current

Liabilities

5,103,165

Current Ratio 1.6:1

779. Non-Current Asset which stood at GH¢10,838,939 in 2013

was made up of property, plant and equipment.

780. Current Assets of GH¢2,169,796 in 2013 comprise of cash and

bank balances and receivable from exchange transactions.

781. Current Liabilities of GH¢1,391,696 in 2013 consist of

accounts payable, deferred tuition fees, non-monetary grants and

overdraft.

782. Non-Current Liabilities which was GH¢5,103,165 in 2013 was

made up of non-monetary grants of GH¢4,103,165 and other grants

of GH¢1,000,000.

783. The current ratio which shows the liquidity position of the

University was 1.6:1 in 2013. This indicates that the University

cannot meet its short term financial obligation when they fall due.



MANAGEMENT ISSUES

Failure to Account for Property and Equipment in the books

784. Contrary to best practice which requires assets belonging to

an entity to be accounted for in its books, we observed that some

hostel facilities and housing units being occupied and used by the

University have not been captured in the University’s books as part

of property, plant and equipment.

785. This occurred because the University is yet to obtain title

documents for these assets. Total assets owned by the University

cannot be ascertained.

786. We recommended that the University should ensure that all

title deeds on these assets are obtained and transfers are made into

the University’s books.

787. Management responded that most of the assets do not belong

to the University. They were borrowed from the Ministry of Health

which could not be captured into the university’s books and

depreciated accordingly.

No compensation for land owners

788. It is expected that for ownership of a land to be passed on to

an Institution, compensation should be paid to the land owners

before title deed can be acquired.

789. We however, observed that the University has not

recognized the land on which the University’s permanent campus is

located in their books. This is because; the land owners have not

been compensated to enable the appropriate transfer of title to the



University.

790. There may be future dispute over ownership of the land

which the University is occupying without legal title.

791. We recommended that management should liaise with

Government to ensure compensations are made to the land owners

to facilitate early regularization of ownership.

792. Management responded that the University and government

entered into memorandum of understanding that government

would compensate the original land owners and the University will

occupy the land after government have published the executive

instrument. The Lands Commission is in the process of identifying

the real owners of the land to compensate. On November 19, 2015

the President in Commissioning the permanent site project publically

assured the land owners that they would be compensated

appropriately when the exercise is completed.

Non-compliance with Grant Agreement

793. Contrary to the grant agreement, we observed that the

University did not comply with certain terms and conditions

specified in the grant agreements. For instance, an amount of

GH¢1,000,000 which was received from Ghana Commercial Bank

Limited for the construction of an administrative block at the Hohoe

Campus of the University, was used to purchase fixed deposits. The

fixed deposits were subsequently redeemed and the funds used for

administrative work. Due to the decrease of subvention from the

government in 2013 the University used the funds provided for the

expansion of its infrastructure for administrative purposes.



794. Donors of grants may not be willing to provide additional

funds if grants are misapplied.

795. We recommended that management should endeavour to

utilise grants according to terms and conditions specified in the

grant agreement.

796. Management explained that the University was allowed to

invest the GH¢1,000,000 with Ghana Commercial Bank until the

University was ready to start the project. The University redeemed

the fund in 2013 to support the preparation of the permanent site

since the counter-part was not ready and the University was not able

to raise funds internally for the purpose.

UNIVERSITY OF EDUCATION, WINNEBA

Introduction

797. This report relates to the audited accounts of the University

of Education, Winneba for the year ended 31 December 2013.

Operational results

798. The operations of the University for the year under review

ended with a surplus of GH¢12,083,748 as compared to a surplus of

GH¢12,607,199 in 2012 representing a decrease of 4.2% in

performance. Details of the performance indicators are shown in

Table 71.



Table 71: Statement of comprehensive income for the year ended

31 December 2013


to GH¢126,177,877 in 2013. The rise in Income was due to 30.0% and

40.3% increase in Government Subvention and Grants and Fees and

Other Incomes respectively.

800. Total Expenditure rose by 40.8% from GH¢81,054,396 in 2012

to GH¢114,094,129 in 2013. Increases in Goods and Services – Non

Teaching and Goods and Services-Teaching and Cost of Investment

Written off accounted for the rise.

Income

2013

GH¢

2012

GH¢

%

Chan

ge

Government Subvention & Grants

65,487,388 50,367,709 30.0

Donor Funds 12,240 57,317 (78.6)

Fees and Other Incomes 60,678,249 43,236,569 40.3

Total Income 126,177,877 93,661,596 34.7

Expenditure

Cost of Employee Compensation

69,411,254 54,006,705 28.5

Cost of Goods & Service - Non Teaching

16,458,631 10,265,664 60.3

Cost of Goods & Services – Teaching

18,604,370 11,545,678 61.1

Cost of Investment Written off

9,619,874 5,236,348 83.7


Surplus of the year 12,083,748 12,607,199 (4.2)



Financial position

801. The summarized statement of financial Position as at 31



2013

GH¢

2012

GH¢

%

Change

Non-Current Assets (PPE) 53,880,902 38,754,924 39.0

Long Term Investments 49,001 49,001 -

Current Assets 30,780,563 33,720,130 (8.7)


Net Current Assets 29,729,384 32,654,425 (9)

Net Assets 83,659,288 71,458,350 17.1


802. The Non-Current Assets rose from GH¢38,754,924 in 2012 to

GH¢53,880,902 in 2013, an increase of 39% due to the acquisition of

additional assets.


2012 to GH¢30,780,563 in 2013. The decrease was due to 66.1% and

65.5% reduction in Inventory and Bank and Cash Balances

respectively.

804. Current Liabilities decreased by 1.4% from GH¢ 1,065,705 in

2012 to GH¢1,051,178 in 2013.This was due to reduction in accounts

payable.

805. The Current Ratio in 2013 was 29.3:1 as against 31.6:1 in 2012,



indicating the ability of the University to meet its short-term

obligation when they fall due.

MANAGEMENT ISSUES

Transfer of Twenty Thousand Cedis (GH¢20,000.00) from GCB

Harper Road to ECOBANK, Tanoso Branch Not Credited to New

Kumasi Account as at 27 October, 2014

806. Our audit disclosed that Kumasi Campus of the University

made a transfer of GH¢20,000.00 from Ghana Commercial Bank

(GCB) Harper Road to Ecobank, Tanoso Branch on July 30, 2012.

GCB had debited the UEW account with the amount but Ecobank

had not credited UEW Kumasi Account as at 27 October, 2014. The

first follow-up letter was written to GCB about Sixteen months after

the transfer was made (10th of November, 2013). There was another

follow-up letter on the 15September 2014. GCB had not responded

to any of the letters. There had not been any letter to Ecobank, the

recipient bank yet.

807. We recommended that the University should follow up on

this transfer and ensure that the defaulting bank pays interest on the

amount. The University should also safeguard its cash resources at

the Bank.

808. Management has accepted the recommendation and

promised to ensure that the defaulting bank pays the appropriate

interest on the amount for the entire period of the delay.



GHANA INSTITUTE OF MANAGEMENT AND

PUBLIC ADMINISTRATION (GIMPA)

Introduction


Ghana Institute of Management and Public Administration (GIMPA)

for the year ended 31 December 2013 and 2014.

Operational results

810. Total Income increased by 34.4% or GH¢12,529,406 from the

previous year’s figure of GH¢36,370,840 to GH¢48,900,246 in 2014.

This was largely due to 22.4% increase in fees collected from the

various schools, which rose from GH¢28,251,541 in 2013 to

GH¢34,574,699 in 2014.

Table 73 below is the summarized income statement for 2014

2014

GH¢

2013

GH¢

%

Change

Total Income 48,900,246 36,370,840 34.4

Expenditure


Operating expenses 8,493,868 8,108,629 4.8

Administration & Gen

Expenses

11,541,220 9,175,788 25.8

Travel & Transport 2,145,254 1,332,787 61.0

Repairs and

maintenance

1,195,967 750,645 58.5


Surplus 7,280,738 2,531,166 187.6

811. Total Expenditure went up from GH¢33,839,674 in 2013 to



GH¢41,619,508 in 2014 representing a 23.0% rise. This was mainly

due 61.0% increase in Travel and Transport and 58.5% increase in

Repairs and Maintenance.

812. An operational surplus of GH¢7,280,738 was registered

during the year, compared with GH¢2,531,166 recorded in the

preceding year. This represented 187.6% or GH¢4,749,572 increase

over the previous year’s figure.

Financial position

813. Presented in Table 74 is the statement of financial position of

the GIMPA for the year under review.

Table 74: Balance sheet as at 31 December 2014

2014

GH¢

2013

GH¢

%

Change


Current Assets 14,159,773 10,869,152 30.3



Long-term

Liabilities

- 712,848 -

Net Assets 31,992,863 23,990,467 33.4


814. Non-Current Assets rose by 15.5% from GH¢21,395,323 in

2013 to GH¢24,717,380 in 2014. The increase was due to a rise in

Capital Work-In-Progress as well as the acquisitions of fixed assets.


2013 to GH¢14,159,773 in 2014. The increase was mainly due to

151.3% rise in Cash and Cash Equivalents and 44.3% increase in



Short-Term Investments over the prior year’s figure.

816. Current Liabilities however, decreased by 9.0% from

GH¢7,561,160 in 2013 to GH¢6,884,290 in 2014, mainly due to decline

in Creditors and Accruals from GH¢6,877,540 in 2013 to

GH¢6,356,406 in 2014.

817. Current Ratio rose to 2.1:1 over the previous year’s ratio of

1.4:1. The increment however, shows the ability of GIMPA to meet

its current and short-term liabilities as and when they fall due.

MANAGEMENT ISSUES

Penalty on SSNIT Contributions

818. We observed that an amount of GH¢86,984.47 was paid as

penalty for delayed payment of the 17.5% SSNIT Contribution for

the period March 2005 to September 2014.

819. This implied that the Institute did not ensure that liabilities

were paid within the stipulated period. The amount, however, could

have been used to finance other essential needs of the Institute.

820. We recommended that efforts should be made to settle

statutory payments on time to avoid future payment of penalties.

821. Management in its response stated that the anomaly occurred

as a result of the recruitment of staff beyond payroll processing dates

that resulted in off-payroll salary payments. Additionally, the

migration from a manual system to an electronic verification at

SSNIT also led to delays in giving clearance for payment.

Management also reiterated that the anomaly has now been resolved



and hence not likely to recur in the future.

GIMPA Fixed Assets not covered by the Title Deed

822. We noted that the Institute has not acquired Legal Title to its

immoveable properties, notably the land on which its premises are

located at Green Hill. The Institute might not be able to prove

ownership should the need arise.

823. Management is urged to vigorously pursue the relevant

documents of title and perfection of same to forestall any possible

litigation in the future. The recommendation is well noted for

compliance.

Lack of identification Marks on Fixed Assets

824. Our physical verification of assets revealed that assets

acquired in the year under review did not have identification marks

embossed to indicate that they belong to the Institution. The

inability of management to emboss these assets can lead to loss of

some of the assets without detection.

825. We recommended that management should ensure that all

assets of the Institution are embossed with unique marks to facilitate

identification and control.

826. According to management, it has acquired an enterprise

resource planning system to automate the assets embossment system

to integrate unto the fixed asset registry.



NATIONAL ACCREDITATION BOARD

Introduction


Accreditation Board for the period 1 January 2014 to 31 December

2014.

Operational results

828. The Board’s Income Surplus increased by 197.64% from

GH¢481,612.71 in 2013 to GH¢1,433,451.00 in 2014.

829. A summary of the Board’s operational performance is

provided in Table 75.

Income 2014 GH¢

2013 GH¢

% Change

GOG-Subvention 3,116,044.50 1,762,387.73 76.8

Internally Generated Funds 4,669,469.50 3,405,172.07 37.1

Other Funds and Int. On

Investment

728,223.31 346,220.77

110.3

Total 8,513,737.31 5,513,780.57 54.4

Expenditure

Personal Emoluments 2,756,288.61 1,724,897.48 59.8

Administration 1,367,223.38 1,150,899.83 18.8

Service Activity 2,956,774.32 2,156,370.55 37.1

Total 7,080,286.31 5,032,167.86 40.7

Excess(Deficit) Income over

Expenditure

1,433,451.00

481,612.71 197.6

830. Total Income of the Board increased by a margin of 54.4%

from GH¢5,513,780.57 in 2013 to GH¢8,513,737.31 in 2014. The

increase in Government subvention (i.e. Employees Compensation)



from GH¢1,762,387.73 to GH¢3,116,044.50 (GH¢1,353,656.77)

representing an increase of 76.8% over the previous year and a 37.1%

increase in Internally Generated Fund from GH¢3,405,172.07 in 2013

to GH¢4,669,469.50 in 2014 accounted largely for the increase in total

revenue.

831. Total Expenditure also saw an increase of 40.7% from

GH¢5,032,167.86 in 2013 to GH¢7,080,286.31 in 2013. This was mainly

due to 59.8% upward movement in personal emoluments. Service

activity increased by a margin of 37.1% from GH¢2,156,370.55 in

2013 to GH¢2,956,774.32 in 2014.

Financial Position as at 31 December 2014

Assets 2014

GH¢

2013

GH¢

%

Inc./Dec.

Non-Current Assets 1,274,814.37 1,365,251.61 (6.6)

Current Assets

Investments 3,535,840.69 1,586,448.88 122.9

Advances(Staff Debtors) 57,190.92 84,378.02 (32.2)

NABSAF Loan 300,000.00 300,000.00 0

Cash and Bank Balances 559,371.91 966,569.46 (42.1)

Total 4,452,403.52 2,937,396.36 51.6

Less Sundry Creditors 0 7,131.08 -100.00

Total Net

Assets(Equity)

4,452,403.52 4,295,516.89

3.7

Liquidity ∞ 411.91:1

832. Non-Current Assets reduced by margin of 6.6% from



GH¢1,365,251.61 in 2013 to GH¢1,274,814.37 in 2014. This was mainly

due to the policy of the Board to defer the depreciation of its assets in

the year of acquisition. Additions in the previous year was

GH¢987,194.86, resulting in the movement the depreciation and the

consequent decrease in the Non-Current Assets.

833. Current assets increased by 51.6% from GH¢2,937,396.36 in

2013 to GH¢4,452,403.52 in 2014. This was mainly due to an increase

in Short term Investment from GH¢1,586,448.88 to GH¢3,535,840.69

representing a 122.9% movement over the previous year. Net asset

also saw an increase by a marginal percentage of 3.7% during the

period.

834. Liquidity of the Board remains strong as it did not register

any liability over the period.

MANAGEMENT ISSUES

Failure to Submit I.G.F. Expenditure Returns to the Ministry Of

Finance-GH¢4,604,469.50

835. The Retention of Funds Act 2007, Act 735, Section 5, on

Utilization of internally generated funds says (5a)” Ministries,

Departments and Agencies which have approval to retain and utilize

internally generated funds can only incur expenditure funded by

internally generated funds for a particular month if the records of

collection for the previous month, bank lodgements and expenditure

returns for the previous month have been submitted to the Ministry

of Finance.



836. Our review of the Board’s Collection and Utilisation of its

internally generated funds amounting to GH¢4,604,469.50 for the

period 2014 revealed that management has not submitted its records

of collection, bank lodgements and expenditure returns to the

Ministry of Finance.

837. Management failed to adhere to the dictates of Act 735

Section 5a. Failure to adhere to the dictates of the act could lead to

unapproved expenditure.

838. We advised management to ensure that all collections,

lodgements and expenditure returns are sent to the Minister of

Finance in adherence to the stipulations to the Retention Act and for

approval for usage of the IGF.

839. Management submitted to the team, budgetary estimates and

added in its response that the NCTE established the format for the

preparation of the Expenditure returns. We are however of the

opinion that what the board prepared is not what is required by the

Act. The Act requires that IGF Expenditure Returns should include

the following information: the type of Revenue, Monthly target,

Monthly Collection and the Cumulative amount retained. We

reiterated that management should adhere to the dictates of the Act.

Failure to obtain Ministerial Approval for Board and Committee

Allowances -GH¢726,886.52

840. Section 7 of the National Accreditation Board Act 2007(Act

744) requires that board members and members of a committee of

the board shall be paid allowances approved by the Minister

(Education) in consultation with the Minister responsible for

Finance.



841. Further to the above requirement, a circular by the Minister

of Finance referenced B/CEU/2014/05 on “Allowances for Boards

and Councils in Public Services” required that Boards and Councils

apply to the Minister (Finance) for rates that the Minister had

catalogued for various institutions.

842. The Chairman of the Accreditation Board, Professor D.A.

Akyeapong responded in a letter referenced NAB/A/18/SF1 dated

14/8/2014 to the Minister indicating that the work of the

Accreditation Board, aside formulation of policies, conducts

accreditation by itself. He also added that their meetings require

more than regular meetings as compared to other boards and thus

appealed to the Minister to allow the board maintain its current rates

which are higher than the ones approved by the Minister. We could

not cite any response from the Minister for the approval of the

current rates used by the Board resulting in the payment of

GH¢142,306.20 and GH¢584,580.32 as monthly board allowances and

committee sitting allowances respectively in 2014.

843. Payment of Board and Committee Allowances without

ministerial approval could lead to over or underpayment of the

allowances.

844. The anomaly occurred due to failure of the Minister to

respond to the request of the board and management’s failure to

follow up for a ministerial approval for the payment of board and

committee allowances.

845. Consequently, management paid allowances that were

contrary to the approved rates from the Minister (Finance).



846. We recommended that a ministerial approval be sought for

payment of the current rates of the board or management reverts to

the rates stipulated by the Minister for Finance.

847. Management said in its response that, it will follow up as was

advised. We reiterated that ministerial approval be sought for the

payment of the allowances especially that NAB’s rates are higher

than what the Minister stipulated in the letter referenced

B/CEU/2014/05 on “Allowances for Boards and Councils in Public

Services”.

Use of Internally Generated Funds for Payment of Personnel

Benefits-GH¢5,139.13

848. Retention of Funds Act, 2007 Act 735 section 5(c) says,”

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 increased revenue”.

849. Management paid GH¢5,139.13 to two staff of the board as

security guard allowances and overtime allowances. These

allowances are personnel benefits and should have been paid by the

controller and Accountant General.

850. Management failed to adhere to the modalities of payments

from the Internally Generated Funds as stipulated in Act 735; Section

5(c).

851. We urged management to apply to the Controller and

Accountant General for the amount and pay same to the Internally



Generated Fund Account. Also, management should ensure that all

such allowances are paid by the Controller and Accountant General

subsequently.

852. Management said an application has been made to the

Controller for payment of the allowances in 2013 but has not

received any response.

853. It is however contrary to the dictates of the Retention of

Funds Act to pay personnel emoluments with IGF. We insist that the

payment should be strictly done by the Controller and Accountant-

General.

Absence of Information Technology Governance Policy

854. Information Technology governance focuses specifically on

information technology systems, their performance and risk

management. The primary goals of IT Governance are to assure that

the investments in IT generate business value and mitigate the risk

that are associated with IT. This can be done by implementing an

organizational structure with well-defined roles for the

responsibility of information, business processes, applications and

infrastructure.

855. We noticed during our interview with the Assistant

Information Technology Officer that, the Board has no IT

Strategic/Steering Committee, IT Security Policy, IT Strategic Plan

that supports business requirements; and undefined roles and

responsibilities.

856. The non-establishment of an IT Strategic/Steering Committee

at the board level could result in IT Governance not being



adequately adhered to. Also, if the Board does not have an IT

Security Policy, there is no clear direction to maintain information

security across the organisation and to properly safeguard the

Council’s assets. Furthermore, undefined IT roles and

responsibilities could result in an IT function that is non-responsive

to the departmental needs.

857. We recommended that Management develops an IT

Governance Policy so as to improve the structure, oversight and

management processes which would ensure the delivery of the

expected benefits of IT in a controlled way so as to enhance the long

term sustainable success of the Board.

858. Management said that it will ensure that our

recommendation is adhered to.

Absence of Business Continuity/Disaster Recovery Plan

859. Disaster Recovery Plan (DRP) is a plan that allows businesses

to continue in the event of a disaster that might destroy part or all of

a business’s resources, including IT equipment, data records and the

physical space of an organisation. Just as a disaster is an event that

makes the continuation of normal functions impossible, a DRP

consists of the precautions taken so that the effects of a disaster will

be minimized and the organisation will be able to either maintain or

quickly resume mission-critical functions.

860. During the course of our audit, we noticed that the Board has

no business continuity plan to rely on in the event of a Disaster.

861. The absence of a business continuity plan could render the

Board dysfunctional in the event of a disaster and difficult to salvage

her resources.



862. We recommended to management to expedite action and

develop a business continuity plan and orientate staff on what steps

to follow when a disaster occurs.

863. The Board should as matter of urgency contact NITA in order

to mount the data on their platform to safeguard it.

864. Management said it is putting temporary measures in place

but will contact NITA to boost their back up data to ensure

maximum safety in times of disaster.

GHANA INSTITUTE OF JOURNALISM

Introduction


Institute of Journalism for the period 1 January 2009 to 31 December

2012.

Operational results

866. The year 2012 ended with operational surplus of

GH¢322,142.69 representing 55.2% increase of the previous year’s

surplus of GH¢207,638.87. The increase was as a result of the

increase in IGF by 64.1% in 2012. The performance indicators for the

year are shown in the Table 76.


Income

2012

GH¢

2011

GH¢

%

Cha

nge

Government 2,439,496.35 2,523,394.00



Subvention (3.3)

Internally

Generated Fund

(IGF)

2,113,471.13 1,288,150.46 64.1

Total Income 4,552,967.48 3,811,544.46 19.5

Expenditure

Personal

Emoluments

2,336,891.80 2,422,343.13

(3.5)

Administration

Expenses

1,541,215.48 929,620.23 65.8

Service Activity

Expenses

352,717.51 251,942.23 40.0

Total Expenditure 4,230,824.79 3,603,905.59 17.4

Surplus/(Deficit) 322,142.69 207,638.87 55.2

867. Total Income registered an increase of 19.5%, from

GH¢3,811,544.46 in 2011 to GH¢4,552,967.48 in 2012. The increase

was mainly due to the increase in the IGF from GH¢1,288,150.46 in

2011 to GH¢2,113,471.13 in 2012, representing 64.1% increase.


GH¢3,603,905.59 in 2011 to GH¢4,230,824.79 in 2012. The major

component which accounted for the increase was Administration

Expenses, from GH¢929,620.23 in 2011 to GH¢1,541,215.48 in 2012, a

rise of 65.8%.

869. However, personnel emolument recorded a decrease of

3.5%. The decrease was as a result of additional book and research

allowance paid in 2011.



Financial position

870. The School’s financial position as at 31 December 2012 is

shown in the Table below;

Items

2012

GH¢

2011

GH¢

%

Change

Non-Current Assets 632,791.33 256,474.39 146.7

Current Assets 698,776.23 638,553.48 9.4

Current Liabilities 114,397.00 - 100.0

Net Current Assets 584,379.23 638,553.48 (8.5)

Liquidity Ratio 6.1:1 100:1

871. Non-Current Assets went up by GH¢376,316.94 or 146.7% in

2012 due to the acquisition of additional assets in the year.

872. Current Assets went up by 9.4%, from GH¢638,553.48 in 2011

to GH¢698,776.23 in 2012. The increase was mainly due to the

increase in the Accounts Receivable by 58.8%, from GH¢86,144.25 in

2011 to GH¢136,780.61 in 2012. This was as a result of increases in

both staff and student’s debtors’ figures in 2012.

873. Current Liabilities recorded 100.0%, increase in 2012 due to

advanced School Fees payment by students in 2011.

874. The Liquidity ratio as measured by a current ratio of 6.1:1 in

2012 and 100:1 in 2011 financial years indicates the ability of the

school to meet its short term debts as and when they fall due.

MANAGEMENT ISSUES

Supplementary Salary - GH¢110,877.70

875. Section 3.2 (d)(e) of ‘The Statutes of the Institute specifies

among others that the function of the Council shall include control



over the finances of the Institute and shall have power to determine

finally any question of finance arising out of administration of the

Institute along with allocation of funds at the disposal of the

Institute”.

876. Regulation 295 of the FAR 2004 also stipulates that when a

public servant’s personal emolument is payable on Controller and

Accountant General (C&AG) mechanized payroll or Departments

main payroll, payment by manual voucher is prohibited except as

approved by C&AG.

877. Notwithstanding the above regulations, we noted that the

Institute paid monthly salary supplement to four personnel of the

Institute on manual vouchers beside the payment of their salaries as

follows:

Designation Rates (US$)

Rector 1,000.00

Vice Rector 600.00

Registrar/Accountant 333.00

878. We also did not sight any approval from the Council, C&AG

or Ministry of Finance for the payments which started from January

2010.

879. Within the period under review, a total amount of

GH¢110,877.70, the equivalent of US$69,588.00 was paid to these

officers.

880. We attributed this irregularity to management’s failure to

comply with the above quoted regulations which had resulted in



extra expenditure against the Institute’s planned programmes.

881. Management explained that the heading of the allowance

was what was misleading and that the allowance is paid quarterly to

the principal officers of the Institute referred to as the Executive

Management Board members in the Institute’s status in lieu of their

sitting allowance for the executive meetings in the quarter.

882. We could not agree with management’s assertion as there

was no approval from the Board or the Ministry of Education who

determines the rate for the payment of sitting allowance.

Additionally, sitting allowances are paid as and when a committee

(Executive or otherwise) sits using the approved rate but not as a

monthly or quarterly allowance. Moreover, the Institute’s budget

did not support the payment of monthly allowances in US Dollar to

the Executive members.

883. We therefore advised management to seek retrospective

approval from MOFEP through the Council or the beneficiaries be

made to refund the total amount of GH¢110,877.70 and any

subsequent payments into the Institute’s account.

884. Management in response stated that the practice has since

been discontinued. Management now takes sitting allowance as and

when it sits of which we are yet to verify.

Salary Related Allowance

885. In a related development, we noted that the under listed

salary related allowances were paid to the Accountant of the

Institute who is on secondment from C&AG’s Department and

receives his salary from C&AG’s Department;



Professional allowance

Head of Department allowance

Acting allowance

Off Campus allowance

Responsibility allowance

Rent allowance

Entertainment allowance

886. No authority, as well as the basis for the calculation was

provided to enable us determine the legitimacy or otherwise of the

payment of the allowances. Besides our review disclosed that the

Accountant is not a Chartered Accountant to qualify for the payment

of a professional allowance. Our review revealed that a total amount

of GH¢170,810.36 had been paid to the Accountant, Mr. Mathias

Dugu for the period under review.

887. Management’s failure to enforce the regulation as stated in

Regulation 295 of the FAR, by ensuring the required approval was

obtained before the payment of these allowances contributed to the

irregularity. The Institute could lose the amount involved if it cannot

be recovered.

888. In the absence of a proper authority to regularize the

payment, indicating the basis of calculation, we recommended to

management to ensure the Accountant refunds the GH¢170,810.36

paid him for the period under review and any other subsequent

payments made to him. Additionally, we urged management to in

future seek approval from the appropriate bodies before authorizing

such payments, failing which the authorizing and approving officers

should be surcharged with the illegitimate payment.



889. Management responded among others that, all allowances

for senior members of the Institute are covered in the schedule of

allowances for Public Universities which had been budgeted and

approved under item 2 expenditure of the Institute.

890. Our follow-up revealed that management sought clarification

on the issue from Controller and Accountant General and NCTE.

Response from the two departments stated that the officer is entitled

to only top-up allowance; which is the difference in salary between

C&AG and that of GIJ (if any) but not the salary related allowances

as paid him.

891. We also wish to emphasize that the Institute’s Condition of

Service recognize the status of senior members’ of staff only on the

approval by the Board, based on the qualification of the officer but

not his responsibility as it is in the case of the Accountant. Any

officer who assumes the position of a Senior Officer is supposed to

take acting allowance.

892. We did not see any approval by the board approving the

officer’s status as a senior member, besides the officer is not an

employee of the Institute.

893. We therefore, reiterated our recommendation that

management should ensure that the officer is paid only allowances,

being difference (if any) between his salary as a senior accounts

officer in C&AG and what GIJ would have paid senior accounts

officer. Meanwhile Mr. Mathias Dugu should be made to refund the

amount of GH¢170,810.36 wrongfully paid to him.



Contract documents

894. For effective management and control over contracts, it is

expected that for each contract, records on the project would be

maintained in a coherent manner such that appreciation of each

aspect of the project can be effectively monitored by a file supporting

it. The contract file should contain the contract agreement indicating

the contract sum, expected date of completion as well as payment

certificates among others.

895. Regulation 1 of the FAR also enjoins Heads of Departments

to keep proper records of all transactions and produce these records

for inspection when called upon to do so by the Minister, the

Auditor-General or C&AG or any other officer authorized by them.

896. Contrary to the above expectations, our review of projects

awarded by the Institute proved otherwise. We noted that the

Institute entered into contract agreement with three contractors and

two consultants on the under listed projects:

Project Contractor Amt paid

Refurbishment of old urinal & construction of a new urinal

Paaku Construction

-

Refurbishment of existing classroom

Daa Construction

-

Construction of 1 to 4 unit lecture hall

Zangoze -

The consultants were SCI GEO Consult and Hope

Tasiame -

897. There were no files maintained on the projects as well as

contract register to record the details of the contracts and monitor

payments made on them. Our request for agreements on the



contracts to enable us scrutinize the projects yielded no results.

898. In the absence of such vital information, we could not

determine the contract sum, whether the amount paid to the

Consultants met the requirements of the agreement; payments to

Contractors were properly supported by the Consultants certificates

and whether duration of the project, specifications etc. are in

conformity with the agreement.

899. Meanwhile, a total amount of GH¢275,380.32 were paid to

the contractors and the consultants within the period under review.

900. Management’s failure to keep proper records of all

transactions could undermine procedures set for contract

management. This could lead to payment for work not done or

shoddy work could go undetected.

901. We recommended that management should ensure that the

contract agreements for both the contractors and the consultants are

made available for our examination. Management should also

ensure that contract register is kept to record all transactions with

contractors.

902. Management alleged it attached the original documents to

the payment vouchers, which we disagree as there was no contract

agreement attached to the payment vouchers; besides attaching them

to the payment vouchers is not the appropriate filing procedure.

903. We therefore reiterated that contract agreements for both the

contractors and the consultants should be made available for our

examination, failing which the paying officer should be sanctioned in

accordance to Regulation 8 of the FAR.



Building Donations

904. The Institute wrote to various Corporations and Institutions

to solicit for building materials for building of emergency Lecture

Hall. Our examination revealed that records were not maintained on

the receipt and usage of the items donated by the various

institutions.

905. We noted during our physical inspection that 20 packets of

roofing sheets said to have been donated by NADMO, packed at the

school were not covered by any document aside the letter appealing

for the assistance. A further investigation disclosed that the roofing

sheets were packed because they did not meet the specification

required for the roofing of the Lecture Hall.

906. The non-adherence to Stores Regulation could lead to

pilfering, suppression and misuse of the items received. We

attributed this irregularity to lack of managerial supervision and

control over stores.

907. We recommended that management should make available

records on the donations received and their utilization for our audit

inspection. We further advised that in future management should

ensure that all transactions of the Institute including donations

received are recorded in the appropriate documents to enhance

proper accountability.

908. Management response stated that the donations were

factored into the various certificates that were raised for payments

by the consultant. That is, the costs of the donated materials were

deducted from the contract sum before payments were made to the

contractor.



909. We could not substantiate management’s claim as there was

no documentary evidence on the materials donated to the Institute to

enable us compute the costs to reconcile with any deductions from

the certificates. Moreover, as cited earlier, contract agreements and

certificates were not provided to facilitate the confirmation of this

statement. We therefore stand by our previous recommendation.

Unearned Salaries GH¢4,454.71

910. Regulation 298(1c) of the FAR, 2004 enjoins all heads of

departments to immediately cause the stoppage of payment of salary

to a separated staff.

911. We detected during a payroll review that a staff who was

separated from the Institute through retirement was subsequently

paid one-month unearned salary of GH¢4,454.71, even though

Management notified Controller and Accountant-General of the

Officer’s effective date of retirement.

912. Details as follows;

Name Grade Date Unearned Sal. Net Amount

Retired Month Collected

GH¢

Eben. T. Ag. Registrar 31/8/2012 Sept. 2012 4,454.71

Anim

913. We recommended that efforts should be made by

management to retrieve the amount from the former employee and

pay into the consolidated fund without delay.

914. Management intimated it had recovered GH¢2,500.00, and

that efforts would be made to recover the balance of GH¢1,954.71.



INSTITUTE OF LOCAL GOVERNMENT STUDIES

Introduction

915. This report relates to the audited accounts of the Institute of

Local Government Studies for the financial year ended 31 December

2014.

Operational results

916. The organization’s operations for the year 2014 ended with a

surplus of GH¢293,804, thus registering an increase of GH¢320,216 or

1,216.2% over 2013 deficit of GH¢26,322. A summarized income

statement is shown in Table 77.

Table 77: Income and Expenditure statement for 31 December 2014

Income 2014

GH¢

2013

GH¢

%

Change

Rental 965,848 878,480 9.9

Collaborations 1,913,409 2,786,920 (31.3)

Academic Programme 1,123,051 1,268,715 (11.5)

Management

Development

Programme

17,220 - -

Other Income 2,467 83,209 (97)

Donated Assets 18,872 18,872 -

Total Income 4,040,867 5,036,196 (19.8)

Expenditure

Compensation 1,139,615 942,188 21

Goods and Services 2,607,448 4,120,330 (36.7)

Total Expenditure 3,747,063 5,062,518 (26)

Surplus / (Deficit) 293,804 (26,322) (1,216.2)

917. Total income reduced by 19.8% from GH¢5,036,196 in 2013 to



GH¢4,040,867 in 2014. This was mainly due to 31.3% decrease in

revenue from collaborations and a 97% decrease in other Income.

918. Expenditure incurred in 2014 totalled GH¢3,747,063 as

against GH¢5,062,518 in the previous year, representing a decrease

of 26%. This was as a result of 36.7% decrease in goods and services.

Financial position

919. The financial position of the Institute is shown in Table 78.

Table 78: Financial Positions at 31 December 2014

2014

GH¢

2013

GH¢

%

Change

Non-Current

Assets

1,072,269 1,029,184 4.2

Current Assets 1,386,291 840,104 65


Net Current

Assets

494,968 265,121 87.4


920. The organisation’s Non-Current Assets which stood at

GH¢1,029,184 in 2013 went up by 4.2% to register GH¢1,072,269 in

2014. The increase was due to the acquisition of additional property,

plant and equipment.

921. Current Assets also increased from GH¢840,104 in 2013 to

GH¢1,386,291 in 2014, representing 65% rise. This rise was mainly

due to an increase in debtors’ balance.

922. Current Liabilities also increased by 54.7% from GH¢574,983



in 2013 to GH¢889,323 in 2014.

923. Though the current ratio improved in 2014 to 1.6:1(2013:

2.5:1) it still fell below the benchmark of 2:1. This depicts that the

organization cannot meet its short-term debts as and when they fall

due.

MANAGEMENT ISSUES

Non-payment of Withholding Taxes and PAYE

924. The Internal Revenue Act 2000(Act 592) requires that taxes

should be withheld from the payment of salaries as well as goods

and services and paid to Ghana Revenue Authority. We observed

that a total amount of GH¢178,892.03 representing withholding taxes

deduction on goods, services and salaries have not been paid.

Withholding taxes payable at the end of the year for goods and

services amounted to GH¢63,574.79 and PAYE amounted to

GH¢115,317.24 which has not been paid by the Institute to Ghana

Revenue Authority.

925. The Institute may pay penalty in addition to the amount

withheld.

926. We recommended that the Institute’s management must pay

the outstanding withholding tax liability.

927. Management indicated that shortfalls in its cash flows were

the reason the payments were not made.



NATIONAL BOARD FOR PROFESSIONAL

AND TECHNICAL EXAMINATION (NABPTEX)

Introduction


Board for Professional and Technical Examination for the period 1

January 2012 to 31 December 2013.

Operational results

929. The Board recorded a surplus of GH¢77,361.22 for 2013 as

against a deficit of GH¢107,073.49 for the previous year’s operations

which represented an increase of 172.3%. The performance indicators

for the year are shown in the Table 79 below:


Income

2013 GH¢

2012 GH¢

% Change


1,711,571.83 1,589,093.11 7.7


2,332,415.00 846,960.00 175.4

Total Income 4,043,986.83 2,436,053.11 66.0

Expenditure

Personal Emoluments 1,801,661.23 1,594,189.43 13.0

Administration 564,548.62 414,639.45 36.2

Service 1,600,415.76 534,297.72 199.5


Surplus/(Deficit) 77,361.22 (107,073.49) (172.3)

930. Total Income increased by 66.0%, from GH¢2,436,053.11 in

2012 to GH¢4,043,986.83 in 2013. The increase was mainly due to a



175.4% rise in IGF from GH¢846,960.00 in 2012 to GH¢2,332,415.00 in

2013.


GH¢2,543,126.69 in 2012 to GH¢3,966,625.61 in 2013. The major

component which accounted for the increase was Service

Expenditure, from GH¢534,297.72 in 2012 to GH¢1,600.415.76 in

2013, an increase of 119.5%. Increase in the conduct of Technical

Exams from GH¢111,328.32 in 2012 to GH¢793,458.00 in 2013

representing 612.7% accounted for the increase in service

expenditure.

Financial position

932. The department’s financial Position as at 31 December 2013 is

shown in the Table below:

Items

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 319,864.35 250,000.35 27.9

Current Assets (24,675.96) (47,363.18) (47.9)

Current Liabilities - - -

Net Current Assets (24,675.96) (47,363.18) (47.9)

933. Non-Current Assets increased by GH¢69,864.35 or 27.9% in

2013. Additions to fixed assets during the year accounted for the rise.

934. Current Assets decreased by 47.9%, from (GH¢47,363.18) in

2012 to (GH¢24,675.89) in 2013. The decrease was mainly due to

payment of debt.

935. No Current Liabilities was recorded for the period, meaning

the Board settled all its debt during the period.



MANAGEMENT ISSUES

Indebtedness of Takoradi Polytechnic – GH¢268,000

936. NABPTEX conducts examination for the Polytechnics.

Consequently, the Polytechnics collect examination fees on behalf of

NABPTEX which they in turn reimburse to NABPTEX. Our review

of amounts reimbursed to NABPTEX showed that Takoradi

Polytechnic is indebted to NABPTEX to the tune of GH¢268,000

despite several reminders sent to the Polytechnic.

937. The occurrence was due to the Polytechnic’s failure to remit

to NABPTEX examination fees collected on its behalf for the past

years, hence accumulating this huge debt. Also NABTEX

management did not put in place appropriate sanctions to deter

defaulters.

938. The delay in the payment of this amount would considerably

affect NABPTEX in carrying out its core duties and mandate as

enshrined in its Act.

939. We therefore recommended that management put in place

stringent measures that will compel defaulting Polytechnics to pay,

which may include withholding of certificates and interest charged

for delayed payment. This could be done through the signing of a

Memorandum of Understanding with the Polytechnics. Meanwhile a

copy of this observation together with a reminder letter should be

sent to Takoradi Polytechnic demanding the payment.

940. Management responded that the Polytechnic will be

informed about the Audit Observation to facilitate prompt payment

of the amount owed to NABPTEX.



Blank Certificates Not Routed through Stores

941. Section 35[1,2] of the FAA Act 654 states that ‘’ a head of

department is accountable for government stores from time of

acquisitions to the time they are of no further use or value to

government. 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.’

942. Notwithstanding the above regulation, we noted that 130,000

blank certificates with a face value of GH¢41,580.00 ordered by the

Board during the period under review from CheckPoint Ghana

Limited for printing of certificates to its clients were beset with the

following flaws:

The blank certificates supplied were not routed through store,

Requisitions for the blank certificates were made on loose

memo sheet and left in the register.

We did not sight any store issue voucher appropriately signed

by recipients to control the issues.

943. We could therefore not confirm whether the quantity of

blank certificates ordered was the correct quantity supplied and

receipted. We could also not match issues with requisitions in the

absence of issue vouchers.

944. Management’s failure to adhere to proper stores procedure

could lead to short supply which may go undetected besides

diversion of some certificates for personal gains. The omission also

resulted in lack of audit trail in the purchases and use of the blank

certificates.

945. We recommended that management should ensure all



supplies are routed through the store to enhance adequate control

over the blank certificates. Also, the Blank Certificate Register should

be redesigned to include receipts. Issue vouchers should be

introduced to control the issues of the blank certificates to leave

audit trail and guarantee transparency.

946. Management responded that it has noted our

recommendations and an issue voucher had been introduced at the

point of issuance to guarantee transparency and ensure value for

money.

Computers procured left damaged – GH¢24,000

947. Regulation 2[c] of FAR 2004 L.I 1802 requires the head of

government department to secure the efficient and effective use of

appropriations under departmental control within the ambit of

government policy and in compliance with any enactment,

regulations or instructions issued under the authority of any

enactment.

948. On the contrary, we observed during our inspection of the

Board’s stores that five boxes which contained unused system

processing unit key boards inclusive, four other boxes of unused

system processing unit and another box containing a monitor were

all marked faulty.

949. further investigation revealed that the items were part of 15

set of computers financed by GETFund with a total cost of

GH¢24,000 in 2010 for online examination project which was later

abandoned by the Board. The Procurement Officer confirmed that

there were no defects when the items were procured and delivered.

950. The IT Officer who was engaged in May 2013 said that the

defect could either be a faulty mother board, memory and or power



source. He attributed the faults to conditions under which the items

were kept for the past three to four years.

951. We recommended that the officers whose inaction led to the

lapse should explain why the computers which were procured with

the taxpayer’s money were left to deteriorate to this state without

being used.

952. Management responded that the IT department is rectifying

the problems.

Unserviceable Items

953. Chapter 11, Section 1101 of Stores Regulation 1984, states that

“it is the responsibility of all supervisory officers in charge of stores

and equipment to determine what unserviceable stores are lying in

their compounds and stores. It is their further responsibility to take

immediate action to dispose off such categories of store and, when

necessary to report the circumstances to the appropriate authority

for disposal action”.

954. We assessed the Board’s 12 vehicles vis-à-vis the log books

and noted the following:

four of the vehicles were not in very good condition;

one has been grounded for the past three years;

955. In a related development we noted other office equipment

which had become unserviceable but mixed up with store items and

others left in the offices.

956. Laxity on the part of management to effectively supervise

stores and observe the relevant store procedures contributed to the



anomaly. The continuous grounding of these vehicles and the office

equipment could be detrimental to the Institution as it would cause

further physical deterioration leading to loss of value. These may

lead to little or no money realized during their disposal.

957. We urged management to use laid down procedures and

take immediate action to dispose off these vehicles and other items

to avoid further deterioration and loss of value.

958. Management accepted our recommendation, it however

stated that almost all their vehicles are over seven years old and

Government had not since provided funds for replacement

considering the nature of their work which demanded frequent

travels.

Officers on Education Sponsorship not bonded

959. To ensure that an organization is not deprived of the benefit

of investing in building its human resource capacity, officers who are

granted approval to study leave with pay to pursue fulltime courses

should be bonded.

960. Our audit revealed that the Board had sponsored two of its

staff members during the years under review to pursue a degree and

a master’s course. Our review further disclosed that the officers

failed to complete the Board’s bond form. See details below:

NAME PROGRAM

MAD. JUDITH AGIDI DEGREE

MARCUS GABBY SACKEY MASTERS

961. Failure to bond the beneficiaries may deprive the Board of



the benefit to be derived from the investment made in its human

resource capacity building, if after completion of the studies the

beneficiary decided to resign from the Board.

962. We advised that the above mentioned officers and

subsequent beneficiaries are made to complete and submit bond

forms to safeguard the investment made by the Board in building its

human capacity to enhance productivity.




MINISTRY OF TRADE AND INDUSTRIES

GHANA STANDARDS AUTHORITY

Introduction

964. This report covers the audited accounts of Ghana Standards

Authority for the period 1 January 2011 to 31 December 2014.

Operational results

965. The year 2014 ended with an operational surplus of

GH¢7,283,870, which represented an increase of 68.1% over the

previous year’s surplus of GH¢4,334,217. Table 80 presents a

summary of the Authority’s performance indicators.

Table 80: Income statement for the year ended 2014

Revenue 2014 GH¢

2013 GH¢

% Change

Recurrent Grant 5,707,244 5,232,910 9.1

Internally Generated Fund:

Net Destination Inspection

Scheme

6,590,258

7,247,112

(9.1)

Other Internally Generated

Fund

18,833,494 11,194,870

68.2

Total Internally Generated

Funds

25,423,752 18,441,982

37.9

Total Revenue 31,130,996 23,674,892 31.5

Expenditure

Personnel Emolument 10,683,635 9,750,916 9.6

Administration Activity 8,125,624 6,021,236 34.9

Service Activity 5,037,867 3,568,523 41.2


Surplus 7,283,870 4,334,217 68.1




GH¢31,130,996 in 2014. The rise was due to a 68.2% increase in other

internally generated fund from GH¢11,194,870 in 2013 to Ghc18,

833,494 in 2014.

967. Total Expenditure went up by 23.3% from GHc19, 340,675 in

2013 to GH¢23,874,126 in 2014. Prominent in the expenditure pattern

was service activity which went up by 41.2% from GH¢3,568,523 in

the previous year to 5,037,867 in 2014.

Financial Position

968. Shown in Table 81 is the Authority’s financial position as at

31 December 2014.

Table 81: Financial Position as at 31 December 2014.

2014 2013 % change


Current Assets 14,795,645 15,435,730 (4.1)


Equity 45,360,004 38,076,134 19.1

Current Ratio 9.2 9.4

969. The Non-Currents assets of the Authority increased by 32.5%

from GHc24,284,437 in 2013 to GHc32,174,280 in 2014. The increase

was due to increase in property, plant & equipment and capital work

in-progress.

970. Current Assets declined from GH¢15,435,730 in 2013 to

GH¢14,795,645 in 2014, a fall of 4.1%. The decline was mainly due to

20.7% decrease in inventory from GH¢2,174,530 in 2013 to GHc1,

725,359 in 2014.

971. Current Liabilities also registered a decrease of 2.1% from



GH¢1,644,033 in 2013 to GH¢1,609,921 in 2014. This was due to a

decrease of GH¢422,119 or 5% decrease in Accounts payable.

972. The liquidity position of the Authority as measured by

current ratio, decreased from 9.4: 1 in 2013 to 9.2:1 in 2014. In spite of

the drop, the authority can meet its short term obligations as and

when they fall due.

MANAGEMENT ISSUES

Overstatement in Property, Plant and Equipment Value

973. Contrary to the authorities accounting policy to recognize

fixed asset at the cost, we observed that there were differences

between the system’s report figures and the invoices/SRV figures

from the stores in the pricing of some of the fixed assets issued. Some

of these difference were significant. Examples are as follow:

Item Invoice/SRV

Value

System

Value

Variance

12 air-

conditioners

19,200.00 31,053.00 11,853

5 air conditioners 11,250.00 12,938.75 1,688.75

12 swivel chairs 5,040.00 8,762.64 3,722.64

974. Property, plant and equipment are overstated in the financial

statements, therefore resulting in misleading financial reporting.

975. We recommended that valuation of the Authority’s asset

should be consistent with its stated policy.



976. Management agreed to investigate and adjust the differences

accordingly.

DORMANT BANK ACCOUNT

977. We observed that the following bank accounts have been

dormant and the bank balances have been reappearing in the books

without any movement. The banks did not respond to our

confirmation letters.

Account

Name

Balance

(GHC)

GARFUND 482.08

EDIF

Account

5,092.11

978. The existence of the balance may be in doubt.

979. We recommended that management should confirm the

balances so that the status of the balances could be known.

980. The Authority has sent a reminder to the banks concerned to

transfer the balances to the Authority’s Account with Bank of Ghana,

High Street.

POOR STORES MANAGEMENT

981. Stores regulation 1984 regulation 0105 requires a Head of

Department to be accountable for the proper care, custody and use of

public supplies and equipment from the time of acquisition until

they have been used or otherwise disposed.



982. We observed the following weaknesses in the store

management

i. The air-conditioners in the chemical and glassware stores were

not functioning. These chemicals generate heat on their own.

ii. Store items in the stationery and glassware stores were not

properly laid out and arranged. In the stationery store items like

A4 sheets, toilet roll, lab coats were parked on the bare floor.

iii. We also noted that lots of expired chemicals were still kept in

stocks. Below are list of expired chemicals:

Name of Chemical Quantity

Carbon Tetrachloride II 3

Chloride Standard Solution 500ml 2

Leishnans Stains – 500ml 2

Liquid Parafin – 100ml 1

Mecuric Potassium lodide 250g 2

Methel Oenanthate – 5ml 2

Murexide 1g 1

Picrolomic Acid 25g 1

983. The anomaly in stores management can be attributed to lack

of supervision.

984. The heat generated in the store rooms could damage the

chemicals, the expired chemicals could easily explode and are

hazardous to the health of store keepers. It may be difficult to

identify and access stock items.

985. We recommended that management should ensure that the

air conditioners in the chemical and glassware stores are functioning



and items in the store must be properly arranged as well as

obtaining pallets to put store items on.

986. Expired chemicals must be moved out of stores and

authorization obtained for proper disposal.

987. Management responded that the air conditioners have been

serviced and are functioning. Steps are being taken to arrange the

stores for easy identification.

988. The Environmental Protection Agency (EPA) had been

invited to supervise the destruction of the expired chemicals.

EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL

DEVELOPMENT FUND (EDAIF)

Introduction

989. This report covers the audited accounts of Export Trade,

Agricultural and Industrial Development Fund (EDAIF) for the years

ended 31 December 2013 and 2014.

Operational results

990. The operations for 2014 ended with a surplus of

GH¢75,070,902, as against GH¢56,193,260 reported in the previous

year. The details of the operations of the Fund for the two year

period are provided in Table 82.



Table 82: Income statement for 2013 and 2014

Revenue

2014

GH¢

2013

GH¢

%

Change

Levies 111,822,607 101,120,236 10.6

Other Income 53,175,090 35,169,230 51.2

Total Revenue 164,997,697 136,289,466 21.1

Expenditure

Operating

Expenses

15,194,830 11,761,334 29.2

Grant Expenses 74,731,895 68,334,872 9.4

Total

Expenditure

89,926,725 80,096,206 12.3

Surplus 75,070,902 56,193,260 33.6

991. Total Revenue increased by 21.1% to GH¢164,997,697 in 2014

from GH¢136,289,466 in 2013. The increase was due to a 51.2% rise

in Other Income and a 10.6% rise in Levies.

992. Total Expenditure for 2014 amounted to GH¢89,926,725 as

against GH¢80,096,206 recorded in 2013. This showed an increase of

12.3% over the 2013 expenditure. The rise was as a result of

increases in Operating Expenses and Grant Expenses.

Financial position

993. Shown in Table 83 is the financial position as at 31 December

2014 and 2013.



Table 83: Balance sheet as at 31 December 2014 and 2013

2014

GH¢

2013

GH¢

%

Change

Non-Current

Assets

54,110,793 809,210 6,586.9

Current Assets 477,257,886 454,469,418 5.0

Current

Liabilities

1,545,406 959,168 61.1

Net Assets 528,022,650 452,951,678 16.6


994. Non-Current Assets made up of Property and Equipment

went up by 6,586.9% from GH¢809,210 in 2013 to GH¢54,110,793 in

2014. The increase was as a result of acquisition of Office Building,

Computers and Accessories, Furniture & Fittings and Office

Equipment.

995. Current Assets rose by 5.0% from GH¢454,469,418 in 2013 to

GH¢477,257,886 in 2014. This was due to increases in Loan

Receivables and Other Receivables.

996. Current Liabilities also registered a significant rise of 61.1%

from GH¢959,168 in 2013 to GH¢1,545,406 in 2014. This was largely

attributed to increases in Other Accrued Expenses and Sundry

Payables.

997. The current ratio stood at 308.8:1 in 2014 compared with

473.8:1 in 2013 indicating that though the ratio declined the Fund

will still be able to discharge its short-term obligations as and when

they fall due.



MANAGEMENT ISSUES

Excessive issuance of grants compared to loans and levies

998. Section 5 of Act 582 as amended by Act 823 (2011) states the

following:

1) The board shall divide the moneys of the Fund into three

categories of accounts, namely the Export Development and

Promotion Account, the Agriculture and Agro-processing

Development and Credit Account and the Export Credit Facility

Account.

999. Section 5 of Act 872 (2013) also describes the categories of

accounts of the Fund as follows:

i. The Board shall in consultation with the Minister allocate the

moneys of the Fund for the following categories of accounts:

a) Research and Development Promotion Account;

b) Credit Facility Account;

c) Projects Account;

d) Equity Finance Account;

e) Operational Account; and

f) Any other account determined by the Board.

1000. We noted an increasing trend in the issuance of grants over

the years from 2011 to 2014. The proportion of grants to levies issued

per year increased from 14% in 2011 to 67% in 2014. There was also a

significant increase in the proportion of grants as compared to total

amounts disbursed in grants and loans from 2011 to 2014. Table 84

below clearly indicate the grant amounts and proportions over the

last four years:



Description 2011 2012 2013 2014

Levies (GH¢) 73,708,416 96,372,040 101,120,236 111,822,607

Total grants (GH¢) 10,211,424 13,700,738 68,334,872 74,731,895

Grants as a

percentage of levies

14% 14% 68% 67%

Description 2011 2012 2013 2014

Grants (GH¢) 10,211,424 13,700,738 68,334,872 74,731,895

Loan disbursement during the year (GH¢)

16,981,266 35,425,027 65,040,317 50,618,648

Total (Grants + Loans) (GH¢)

27,192,690 49,125,765 133,375,189 125,350,543

Grants as a percentage of total grants and loans

38% 28% 51% 60%

Loans as a percentage of total grants and loans

62% 72% 49% 40%

1001. In general, the issuance of grants is increasing at a high rate

from 14% in 2011 to 67% in 2014 of total Levies. This may have a

negative impact on the growth and sustainability of the Fund as

grants are not recoverable. Currently, management does not monitor

the impact of grants and the growth rate of the Fund; hence, any

adverse impact of the excessive issuance of grants may go unnoticed.

1002. We recommended that more loans should be given out than

grants. Giving out loans to beneficiaries that meet requirements

would help to grow the fund as loans are repayable. The Board also

should issue clear guidance on the issuance of grants and

proportioning of funds among the amounts of the fund indicated in



Act 872.

1003. Management in response recognises the need to reduce the

proportion of grants as compared with loans and this reflects clearly

in the 2015 budget allocations. The Board has taken steps to ensure

that in the future a more appropriate balance should be made

between grants and credits of about 30:70 in favour of credits.

Financial returns on grants not submitted to EDAIF

1004. Good accounting practices require that financial transactions

should be adequately supported with payment vouchers or

certificates duly signed by the authorised personnel and third party

documents such as invoices, receipts and contracts. Grants disbursed

were supported by documents such as detailed activity budgets and

work plans were submitted by applicants for review. There was also

adequate evidence of board approval for the disbursement of grants.

1005. We noted that EDAIF does not always require the grantees to

submit financial reports and supporting documents for expenditure

incurred out of the grants. Consequently, not all the grantees

submitted financial reports and supporting documents. As a result,

EDIAF did not have documents at its level to indicate whether grants

totalling GH¢31,131,914 and GH¢28,970,444 disbursed in 2013 and

2014 respectively had been used for the approved purposes. Table 85

below provides the details.

Name of Institution 2013 Grant amount (GH¢)

2014 Grant amount (GH¢)

Total (GH¢)

Ministry of Trade and Industry

27,215,716 18,807,600 46,023,316

National Board for Small Scale Industries

2,584,765 117,434 2,702,199



Ghana Export Promotion Authority

842,824 3,576,018 4,418,842

Parliamentary Select Committee on Trade

320,000 - 320,000

Ghana Chamber Of Commerce and Industry

168,609 - 168,609

Ghana National Service Scheme Board (Dizengoff Gh. Ltd)

- 3,289,392 3,289,392

Youth Enterprise Support Fund

- 3,000,000 3,000,000

Total 31,131,914 28,790,444 59,922,358

1006. As a follow-up, we visited the agencies listed below and

reviewed the supporting documents at their offices:

Ministry of Trade and Industry

Ghana Export Promotion Authority

National Board for Small Scale Industries

Ghana National Service Scheme Board

1007. From the foregoing, Management risk not being able to

ascertain whether funds are used for the intended purpose.

1008. We recommended that Management should ensure that grant

agreements or offer letters to beneficiaries, including government

institutions, for approved grant include clauses such as submission

of financial returns, activity reports and the right of audit of funds by

internal or external auditors to ensure judicious use of EDAIF’s

financial resources.

1009. Management should also obtain and retain copies of financial

reports and third party supporting documentation evidencing the



use of grants disbursed.

1010. Management in response said that, agreements and offer

letters are attached to offer letters to beneficiaries and the

recommended clauses are included to offer letters. Management

asserted that there were a few omissions and the necessary

procedures would be put in place to ensure such omissions are

corrected and not repeated.

Write off of “interest free loans” and loan to government agency

1011. Between 2011 and 2013, EDAIF Board approved recoverable

grant facilities totalling GH¢7,193,009; comprising of grants to

mango farmers of GH¢6,979,685 and butternut squash farmers of

GH¢213,324. However, at the board’s 115th meeting held on 24th

April 2014, it approved a decision to write off these recoverable

grants. The rationale for the write-off was that the mango project was

poorly designed and recoverability of the amount was doubtful.

Based on this decision, management wrote off the balance of

GH¢7,193,009 in the 2013 financial statements.

1012. In addition to the above, in an extraordinary board meeting

held on the 24 May 2014, the board of directors of EDAIF passed a

resolution to convert the outstanding balance of GH¢10,500,000 due

from Eximguaranty Company Limited into an irrecoverable grant.

1013. This constitutes non-judicious use and loss of financial

resources to the Fund, and contributes to the potential depletion of

the resources of the fund as an amount of GH¢17,693,009 have been

written off per decision of the Board without recourse to

Parliamentary approval. In addition, this contravenes section 7(2) of

EDAIF Act 2013, Act 872 which requires the Board to perform its

functions and conduct its affairs in accordance with sound

investment and financial standards and practices.



1014. The Board may also not be thorough in their assessment of

initial loan applications prior to approval, as they can always come

back to write-off loans.

1015. We recommended that the Board/Management should put

rigorous systems and processes in place for granting facilities (credit

and grants) to beneficiaries. In particular, management should

ensure the viability and recoverability of interest free loans. The

Board should also ensure that its duties are performed in accordance

with the EDAIF Act 2013, (Act 872). Additionally, the Board should

seek approval from Parliament before writing-off GH¢17,693,009.

1016. Management responded that, the board ensures that its

duties are performed in accordance with the EDAIF Act 2013, (Act

872). Management explained that, in the matter of the GH¢7,193,009

‘recoverable grants’, the Board, at the time the facilities were

granted, approved the facilities as grants and not credits, and so they

should have been treated as grants in the first place. That was why

the facilities were disbursed under the grant window and through

the grant facility account. The accounting treatment which initially

recorded the transaction as loans was not appropriate. The Board

and Management treat the transaction as ‘recoverable’ in order to

exact commitment from the beneficiaries that the facility was

recoverable could do the trick.

1017. As regards, the GH¢10,500,000; facility was a credit line given

to Eximguaranty Company to enable them grant insurance cover for



beneficiaries who could not offer adequate collateral. The company’s

challenge was that if they repaid the facility to EDAIF, they would

not be able to recycle the funds for continual use; hence, a request

was made to the Board of EDAIF to consider the facility as a grant,

so that Eximguaranty could continue to use the funds to provide

insurance cover to the intended beneficiaries. The Board approved

the request.

1018. Management indicated that since 2013, the procedures

carried out prior to approval and disbursement of facilities have

been much more vigorous than before and that is meant to ensure

viability and recoverability of loans.

Approval of grants in excess of stated threshold

1019. Section 2.3 of EDAIF guidelines for the Export Development

and Promotion and Export Credit and Projects Facilities (March

2013) states the following:

ii. Approvals under the grant for a particular project shall

generally not exceed the cedi equivalent of US$100,000.

iii. The EDAIF board reserves the right to exceed the

US$100,000 limit if, in the Board’s assessment, the required

funding for a particular project exceeds the stated limit of

US$100,000.

1020. We noted that in contravention of the aforementioned Act, 27

individual grants totalling GH¢45,041,164 and GH¢50,188,581 issued

in 2013 and 2014 respectively were in excess of the stated threshold

of US$100,000. These were issued mainly to government agencies.

The high frequency of issuing grants in excess of US$100,000

suggests that such occurrences have become the norm, rather than a

rule to be applied in exceptional cases. Also, no justification was



provided for approving these grants.

1021. We recommended that approval of grants should be in line

with the stated guidelines. The disbursement of grants in excess of

the stated threshold should be a rare occurrence. Since grants have

the potential of depleting the resources of the fund (as they are not

repayable), justification should be provided for approving requests

above the stated threshold of US$100,000.

1022. Management in its response said that, the approval limits

were set by the previous Board of Directors. Upon taking office, the

new Board indicated that they would not go by these limits but

would approve projects on merit based on reasonable judgment. It is

worth noting that the limits were set before Act 872 of 2013 came into

being. Act 872 introduced the Project Facility (government project

grants are usually much higher than US$100,000), which made the

initial limitations unrealistic in the circumstances; hence the Board

decision not to go by the limits set by the previous Board. The Board

has agreed to review the policy and retain the US$100,000 for the

“pure grants” under Research, Development and Promotion (RDP)

facility.

Misapplication of Funds- GH¢2,496,173

1023. Section 2(2) of the Export Trade, Agricultural and Industrial

Development Act, 2013 (Act 872); which was assented to on 8

January, 2014 indicates that, “for the purpose of achieving the object

of the Fund, monies from the Fund shall be applied to the following

activities:

a) The development and promotion of (i) export products, (ii)

export market development, and (iii) agriculture related to

agro-processing;



b) Infrastructure development;

c) Export trade oriented activities of institutions and bodies in

the public and private sectors of the economy;

d) Fostering the development of small and medium scale

enterprises;

e) Undertaking research and the appraisals and studies required

to determine the areas of export trade, agriculture related to

agro-processing and industry that need interventions;

f) Monitoring and evaluation of the impact of interventions on

export trade, agriculture related to agro-processing and

industry;

g) The provision of credit, credit guarantee, export insurance,

refinancing through designated financial institutions to

persons in the sectors related to export trade, agriculture

related to agro-processing and industry;

h) Equity funding through the approved equity fund managers;

and,

i) Any other activity determined by the Board to achieve the

object of the Fund.

1024. We noted that in 2014, the board approved disbursement of

GH¢2,496,173 to the Ministry of Trade and Industry (MoTI) to be

paid as a deposit in court, pending an appeal for a case brought

against Gratis Foundation by its former employees. This payment is

contrary to the prescribed use of EDAIF moneys outlined in EDAIF’s

Act (Act 872).

1025. The payment is not in line with the objective of the fund.

1026. We recommended that the amount in question should be

refunded by the Ministry of Trade and Industry/Gratis Foundation.



1027. Management responded that, “the request was made by the

Honorable Minister of Trade and Industry to make a refundable

disbursement on behalf of GRATIS to the court pending judgment in

order to prevent the properties of the agency from being auctioned.

The Board examined the request and granted approval based on the

Minster’s request. When the court disposes of the case, Management

will follow up with the Ministry of Trade and Industry to recover the

money.

Long outstanding staff loans

1028. Good financial management practices require that loan

schedules are updated promptly with all repayments and

disbursements. Doubtful and bad debts should also be assessed and

provided for or written off as appropriate.

1029. Included in staff receivables at the end of 2014 is a total

amount of GH¢41,733recognized in respect unpaid car and welfare

loans owed by three staff. These staff have resigned with their loan

balances still outstanding as at the time of audit. Details provided in

the Table 86.

Table 86: Outstanding staff loans

Loan Type Amount

GH¢

Comments

Car loan 15,539 Staff resigned in 2012

Car loan 15,361 Staff resigned in 2010

Welfare loan 10,833 Staff resigned in May

2013

Total 41,733

1030. We recommended that management should put in measures



to recover the outstanding amount of GH¢41,733.

1031. Management in response said that the outstanding staff loans

of GH¢41,733 relate to staff whose Provident Fund contributions

(which exceed the total balance) have been withheld by EDAIF until

they settle all outstanding issues with the Fund.

Vacancy in Deputy Chief Executive Position

1032. Section 31(1) of the Export Trade, Agricultural and Industrial

Development Act, 2013 (Act 872) which was assented on 8 January

2014 states that, “the President shall in accordance with Article 195 of

the Constitution, appoint (a) a Chief Executive; and (b) a Deputy

Chief Executive.”

1033. We noted that the Deputy Chief Executive position was

vacant throughout 2014. Hence, in the absence of the Chief

Executive, another person is selected to act in his position.

1034. Non-compliance with the provisions of the Act (Act 872)

could result in increased workload on the Chief Executive.

1035. We recommended that the Board should draw the attention

of the President and ensure that the position as stipulated by the Act

(Act 872) is filled by qualified personnel.

1036. Management in its response stated that the board has taken

note of the comments and has agreed to refer this to the appointing

authority.



GHANA FREE ZONES BOARD

Introduction

1037. This report is on the audited accounts of the Ghana Free

Zones Board for the period January 2011 to 31 December 2012.

Operational results

1038. The Board made a surplus of GH¢5,554,600 in 2012, an

improvement of 64.9% over the previous year’s surplus of

GH¢3,368,514.

1039. A summary of the Board’s performance for the review period

is show in Table 87.


Income

2012

GH¢

2011

GH¢

%

Change

Income 11,788,480 7,431,534 58.6

Expenditure

Operational Expenses 273,084 256,045 6.7

Employee Costs 1,480,864 936,699 58.1

Board and Committee

Expenses

375,239 455,287 (17.6)

Financial and Professional

Charges

389,503 199,328 95.4

Travelling and Transport 1,236,245 651,570 89.7

Repairs and Maintenance 550,921 279,759 96.9

Administration and General

Exp.

1,928,024 1,284,333 50.1


Surplus/(Deficit) 5,554,600 3,368,514 64.9



1040. Total Income went up to GH¢11,788,480 in 2012 from

GH¢7,431,534 in 2011, representing a rise of 58.6%. This was mainly

due to the rise in sales of forms and processing fees, Lease premium

and Exchange gains.

1041. Total Expenditure also went up by 53.4% from GH¢4,063,021

in 2011 to GH¢6,233,880 in 2012. The rise in Employment cost of

GH¢544,165, Travelling and transport of GH¢584,675 and

Administrative and General Expenses of GH¢643,691 contributed to

the increase.

Financial position

1042. The financial position of the Board as at 2012 is shown in

Table 88.

Table 88: Assets and Liabilities as at 31 December, 2012

1043. Non-Current Assets went up by 126.8% from GH¢2,902,474

in 2011 to GH¢6,584,228 in 2012. The increase in Fixed Assets was

2012

GH¢

2011

GH¢

%

Change

Non-Current

Assets

6,584,228 2,902,474 126.8

Current Assets 30,341,916 26,752,896 13.4


Net Current Asset 18,484,902 15,008,032 23.2

Net Assets 25,069,130 17,910,506 40.0

Current Ratio 2.6:1 2.3:1 -



due to the acquisition of motor vehicles, office equipment, furniture,

fixtures and fittings in the year under review.

1044. Current Assets registered an increase of 13.4% from

GH¢26,752,896 in 2011 to GH¢30,341,916 in 2012. This was as a result

of an increase in the short term investment.

1045. Current Liabilities increased marginally to GH¢11,857,014 in

2012 from GH¢11,744,864 in 2011 a rise of 1.0%. The rise was

attributed to increase in Accrued Expenses as at the year end.

1046. The liquidity position of the Board as measured by current

ratio stood at 2.6:1 in 2012 (2011:2.3:1). This means the Board would

be able to meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Under-receipting of payment by VRA- US$72,799.19

1047. Ghana Free Zones Board (GFZB) made payment of

GH¢500,000.00 at an exchange rate of GH¢1.832.85: US$1.00 in May

2012 to Volta River Authority (VRA) to defray part of the dollar

liabilities owed to VRA. The dollar equivalent of the GH¢500,000 at

the time of payment was US$272,799.19. VRA recognized and issued

receipt for US$200,000 on 10 July 2013 as acknowledgment of the

GH¢500,000 leading to under recognition of US$72,799. GFZB did

not send any letter to protest the understatement of the receipt to

VRA as at the date of the audit on 21 July 2015.

1048. Management of Ghana Free Zones Board stands to lose an

amount of US$72,799.19 if 10 July 2013 was used as the date for

recognizing the payment by VRA instead of 16 May 2012 when the



payment was made.

1049. We recommended that immediate effort should be taken by

management to request VRA to recognize the understatement of the

US$72,799.19 and offset against GFZB outstanding liabilities to VRA.

Also, GFZB should prepare regular reconciliation statements with

suppliers and debtors to identify any differences on account balance

for immediate correction.

1050. Management responded that, they have taken note of the

recommendation and a letter had been sent to VRA to correct the

situation.

Absence of Sub-lease agreements on leased lands allocated to Free

Zones Enterprise

1051. It came to light during the audit of the Ghana Free Zones

Board that, a number of Enterprises paid the required amount on

parcels of land allocated to them at the Tema Export Processing

Zones but have no signed Sub-lease Agreement.

Table 90 below is the list of such companies with no signed Sub-lease

Agreement.

Name of Enterprise Final Premium

Payment Date

Acres

Purchased

Niche Cocoa Land B. 21/12/2011 2.60

KGM Industries 16/08/2011 4.00

Lewadis Limited 02/11/2010 4.00

1052. To forestall sanity in the Tema Export Processing Zones or



avoid possible dispute between GFZB and Free Zones Enterprises,

Management was advised to ensure that Sub-lease Agreement are

prepared and signed by all respective parties involved.

Additionally, the Free Zones Enterprises personal files at the

accounts section should regularly be updated.


SONGOR SALT PROJECT

Introduction

1054. This report covers the audited accounts of the Songor Salt

Project for the year ended 31 December 2013.

Operational results

1055. The entity’s operations for the year 2013 ended with a deficit

of GH¢821,711 as compared with a surplus of GH¢102,495 in 2012.

This represent a decrease of 901.7% which resulted from increases in

both operating expenditure and Administrative and Overhead

Expenses. Details of the performance indicators are shown in Table

91.


Income

2013

GH¢

2013

GH¢

%

Change

Operational Income 4,818,062 4,348,841 10.8

Other Income 134,995 64,687 108.7

Total Income 4,953,058 4,413,528 12.2

Expenditure

Operating Expenditure 3,668,040 2,333,141 57.2

Administrative & Overhead 2,106,729 1,977,893 6.5



Expenses

Total Expenditure 5,774,769 4,311,034 34

Surplus/(Deficit) (821,711) 102,495 (901.7)


to GH¢4,953,058 in 2013. The two components of total income which

are operational and other income increased by 10.8% and 108.7%

respectively.

1057. Total Expenditure for the year under review increased by

34% from GH¢4,311,034 in 2012 to GH¢5,774,769 in 2013. This was

as a result of a 57.2% increase in operating Expenditure and a 6.5%

increase in the Administrative and Overhead Expenses.

Financial position

1058. Table 92 is a summary of the Projects Financial Position as at

31 December 2013.


2013

GH¢

2012

GH¢

%

Change


Currents Assets 1,918,491 1,834,623 4.6


Net Current Assets (1,552,897) (4,260) 36,353

Net Assets (865,032) 144,265.32 (699.6)



2012 to GH¢687,865 in 2013. The increase was as a result of additions

to plant and machinery, motor vehicles and Furniture and



Equipment.

1060. Current Assets recorded a marginal increase of 4.6% from

GH¢1,834,623 in 2012 to GH¢1,918,491 in 2013. This was due to an

increase in the Bank and Cash Balances of 374.1%.

1061. Current Liabilities also increased significantly by 88.8% from

GH¢1,838,883 in 2012 to GH¢3,471,387 in 2013. An increase of 81.9%

in Sundry Creditors and Accruals accounted for the rise.

1062. The Project’s liquidity position for the year was 0.6:1 (2012:

1.0:1). This shows that the Project will not be able to meet its short

term obligations when they fall due.

MANAGEMENT ISSUES

Non-payment of contribution to SSNIT- GH¢43,532.55

1063. We noted from our review that an amount of GH¢43,532.55

deducted as social security fund had not been paid to SSNIT as

required by law. Details are shown in Table 93.

Table 93: Non-payment of contribution to SSNIT

1064. This was as a result of management’s non-compliance with

GH¢

Opening Balance 31,399,65

Charge for the year 157,599.73

188,999.38

Payment further year 145,466.83

Closing balance 43,532.55



the provisions of the SSNIT law and this may lead to the payment of

penalties on the outstanding amount.

1065. We recommended that the amount deducted should be paid

immediately to avoid the payment of a penalty.

1066. Management in response stated that the outstanding SSF is

the second tier deduction, which is yet to be paid to a fund manager.

The delay is due to management’s inability to identify a fund

manager.

Outstanding Debtors – GH¢266,941.29

1067. Our audit revealed that a total amount of GH¢266,941.29 has

been owed to the project since 2000. The situation was attributed to

management’s inertia towards debt recovery which could impede

the implementation of the projects programmes due to financial

constraints. The details are shown in Table 94 below.

If these debts were declared irrecoverable their eventual write-off

would destabilize the project financially.

GH¢ Date

Vaccum Salt Products 11,215.44 Since 2000

Loan to Government of

Ghana

248,189.85 “

Ministry of Mines 4,980.00 Since 2012

Ternoval Company

Limited

1,365.00 “

High View Ventures 1,191.00 “

Total 266,941.29



1068. We recommended that management should take the

necessary steps to collect these monies from the debtors.

Delayed remittance of withholding Tax and PAYE -GH¢211,078.91

1069. Contrary to Section 87 of Act 592, we noted that an amount of

GH¢37,564.71 deducted as withholding taxes had not been paid at

the time of the audit.

1070. In a related development, we observed that PAYE deductions

from staff salaries over the years totaling GH¢173,514.20 were not

remitted to the Commissioner of Ghana Revenue Authority.

1071. We pointed out that the disregard of the relevant provisions

of Act 592 could result in the loss of tax revenues to the state. We

also intimated that such acts might attract sanctions which could

negatively affect the Project’s financial position.

1072. We recommended that monies withheld for tax and PAYE

purposes should be paid to GRA when withheld. Also, the Project

should arrange with GRA for the payment of the outstanding total

amount of GH¢211,078.91without further delay.

1073. Management responded that the project has entered into

settlement arrangement with the statutory bodies and monthly

installments are going on steadily.

GHANA TRADE FAIR COMPANY LIMITED

Introduction


Trade Fair Company Limited for the financial year ended 31



December 2013.

Operational results

1075. Total Income for the year 2013 decreased by 14.7% from

GH¢2,772,334 in 2012 to GH¢2,366,110 in 2013. The fall in income

was due to reduction in operating income by 31.3%. There was other

income of GH¢462,564 received from EDAIF to support the

rehabilitation of Ghana International Trade Fair Centre and other

preparatory activities towards the 7th ECOWAS Fair. The

performance indicators for the period are shown in Table 95.


Income

2013 GH¢

2012 GH¢

% Changes

Operating Income 1,903,546 2,772,334 (31.3)

Other Income 462,564 - -

Total Income 2,366,110 2,772,334 (14.7)

Expenditure

Operating Expenses 934,300 764,514 22.2

Admin. Expenses 677,076 1,035,647 (34.6)

Staff Expenses 769,840 839,748 (8.3)

Financial Charges 277,838 21,659 1,182.8


Net (Loss)/Profit (292,944) 110,766 (364.5)

1076. Total Expenditure also decreased marginally by 0.1% from


34.6% reduction in administrative expenses. A cut down on the

Directors’ remuneration and allowances accounted for the

differences in administrative expenses.

1077. Financial Charges however increased significantly by

1,182.8%. Interests and finance cost of GH¢244,267 during the period



under review accounted for the increase in financial charges.

1078. The Company’s operations for the year ended with a net loss

of GH¢292,944 as against a net profit of GH¢110,766 recorded in

2012.

Financial position

1079. Table 96 provides the Company’s financial position as at 31

December 2013.


2013

GH¢

2012

GH¢

%

Changes


Current Assets 926,252 821,631 12.7


Net Assets 69,226 362,169 (80.9)



in 2012 to GH¢2,355,620 in 2013 due to purchase of additional fixed

assets.

1081. Current Assets also rose by 12.7% from GH¢821,631 in 2012

to GH¢926,252 in 2013. The rise was mainly due to the increase in

trade debtors and prepayments.

1082. Current Liabilities also went up by 33.0% from GH¢2,416,223

in 2012 to GH¢3,212,647 in 2013. Trade Creditors and accruals

accounted for the increase.



1083. The current ratio of 0.3:1 (2012:0.3:1) indicates the Company’s

inability to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUE

Garnishee order on bank accounts – GH¢266,000.00

1084. Our observation revealed that an Ex-Director of the

Company, Ms. Esther Ofori filed a suit against the Company for non-

payment of End of Service Benefits and other claims for outstanding

salaries and other benefits to the tune of GH¢466,000. The Company

was able to settle GH¢200,000 leaving a balance of GH¢266,000.

1085. Further inquiry revealed that, a court has placed a garnishee

order on the bank accounts of the Company for non-payment of her

retirement benefits hence the Company could not transact any

business with that bank accounts.

1086. We therefore advised management that a satisfactory

arrangement should be made with the retired Director for settlement

of her retirement benefits so as to set that bank account free for

Company’s usage.

1087. Management responded that arrangement is in place with the

involvement of MOTI for the settlement of the debt.

GHANA EXPORT PROMOTION AUTHORITY

Introduction

1088. This report relates to the audited financial statement of the

Ghana Export Promotion Authority for the period 1 January 2012 to

31 December 2014.

Operational results

1089. Shown in Table 97 below are the performance indicators for



2014 financial year.


Income 2014 GH¢

2013 GH¢

% Change

Subvention for Employees Compensation

1,170,267.47 1,161,864.19 0.7

Subvention for Goods & Services

- 53,955.41

Support from EDAIF 5,543,850.88 3,010,336.77 84.2

Other Income 240,876.19 177,323.64 35.8

Support from MOTI 53,220.59 -

Dividend from Investment( HFC)

4,414.16 3,694.06 19.5

Total Income 7,012,629.29 4,407,174.07 59.1

Expenditure

Employees Compensation 1,213,202.96 1,181,177.31 2.7

Goods & Services 1,722,989.44 1,305,586.49 32.0

Fairs and Exhibition/ Market Access

2,464,385.69 2,451,654.98 0.5


Surplus/ Deficit 1,612,051.20 (531,244.71) (403.4)

1090. Total Income for the Authority in 2014 increased by 59.1%

from GH¢4,407,174.07 in 2013 to GH¢7,012,629.29 in 2014. This was

due mainly to 84.2% rise in support from Export Development

Agricultural Investment Fund (EDAIF). Other Income also increased

from GH¢177,323.64 in 2013 to GH¢240,876.19 in 2014.

1091. Total Expenditure increased marginally by 9.4% from

GH¢4,938,418.93 in 2013 to GH¢5,400,578.09 in 2014. The increase

was largely due to 32.0% increase in Goods and Services expenditure

from GH¢1,305,586.49 in 2013 to GH¢1,722,989.44 in 2014.



1092. The Authority’s operational result in 2014, ended with a

surplus of GH¢1,612,629.29 as against deficit of GH¢531,244.71

recorded in 2013.

Financial position

1093. The Table 98 below is the balance sheet for the year ended 31

December 2014

2014

GH¢

2013

GH¢

%

Change

Non–Current Asset 513,069.08 247,219.26 107.5

Long Term Investment 25,652.25 21,238.09 20.8

Current Asset 1,402,364.24 92,609.89 1414.3

Current Liabilities (115,948.84) (147,981.82) (21.6)

Net Current

Asset/Liabilities

1,286,415.40 (55,371.93) (2,423.2)

Net Asset 1,825,136.73 213,085.53 756.5


1094. Non-Current Asset increased by 107.5% from GH¢247,219.26

in 2013 to GH¢513,069.08 due to acquisition of additional non-

current assets amounting to GH¢352,285.68 in 2014.

1095. Current Assets increased significantly by 1414.3% from

GH¢92,608.89 in 2013 to GH¢1,402,364.24.

1096. The increase was due to increase in cash holding position of

the Authority as at 31 December 2014.

1097. The situation has increased the Net Current Asset of the

authority from a negative position of GH¢55,371.93 to a positive



figure of GH¢1,286,416.40, an increase of 2,423.2%.

1098. As the result of above performance a weak liquidity ratio of

0.62:1 in 2013 rose to a strong liquidity ratio of 12:1 in 2014, putting

the Authority in a good position to meet its obligations as and when

they become due.

MANAGEMENT ISSUES

Payment for Service Not Rendered GH¢253,402.41

1099. Section 16(1) of Financial Administration Act (FAA) 2003,

states 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 to

any other voucher or certificate that is required, the head of the

government department or any other officer authorised by the head

of department certifies.

1100. That the work has been performed, the goods supplied or

service rendered, and that the prize charged is according to the

contract or if not specified by the contract, is reasonable, or where

payment is to be made before the completion of the work, delivery of

the goods or rendering of the service that the payment is in

accordance with the contract’’.

1101. Our examination of records disclosed that, the Authority

paid an amount of GH¢253,402.41 to SIAO, the organizers of an

International Arts and Handicraft Trade Show in Ouagadougou,

Burkina Faso on the 26 September 2014. The payment was towards

the Authority’s participation in the fair which was to start from 31

October to 9 November 2014.



1102. We further noted that the amount which was to be used to

acquire a pavilion for Ghana’s stand remained unrecovered even

though the fair could not come off due to the outbreak of the Ebola

Epidemic.

1103. We attributed the anomaly to the Head of Accounts failure

in exercising due diligence by ensuring the money is recovered from

the organisers when the fair was unsuccessful. The amount which

could have been used to promote other export promotion activities,

the core mandate of the Authority, has been locked up.

1104. We recommended that, management should take necessary

action to recover the amount paid to the fair organizers as soon as

possible, failing which the paying and authorising officers who

failed to pursue recovery should be surcharged with the amount.

1105. Management stated that the fair organizers, SIAO have been

communicated to transfer the amount involved to GEPA account.

However, the amount is yet to be received.

1106. We urged management to bring pressure to bear on the

organisers to refund the amount immediately.

Short Accounting for Special Imprest-GH¢82,215.69

1107. Section 45 of Financial Administration Regulation (FAR),

2004 (L.I.1802) provides that if any expenditure is made in excess of

amounts actually due, the over payment shall be recovered

immediately and paid into the account from which it was originally

paid and the officer concerned shall report the circumstances

immediately to head of department or the appropriate authority.

1108. Notwithstanding the regulation, we noted that the Authority



paid a total amount of GH¢118,594.82 as special imprest to seven

officers to organise training and awareness programmes for selected

farmers in the country as well as organisation of foreign fairs, but

failed to ensure the officers fully accounted for monies advanced to

them after the programme. As a result, an amount of GH¢82,215.69

could not be accounted for.

1109. The Authority’s inability to put in place measures that would

compel imprest holders to account for imprest granted them

contributed to the irregularity coupled with the failure on the part of

the officers to document and promptly account for the special

advance.

1110. The practice, if not discouraged, could lead to unspent

amounts on imprest being locked up in individual’s pockets rather

than being used in furtherance of the Authority’s programmes. We

could also not authenticate whether the funds were used for the

intended purpose.

1111. We recommended that the officers responsible should be

called upon to account for the shortages immediately or the amount

involved adjusted to their personal account. Additionally,

appropriate disciplinary action should be taken against them for

breach of financial discipline as stipulated in Regulation 8(1) of the

FAR. Meanwhile management should institute measures that would

ensure imprest holders account for their imprest immediately the

programme is completed.

1112. Management stated in its response that they had notified the

responsible officers to account for the imprest and appropriate

measures have been put in place by management for timely



retirement of imprest.

Special Advance Payment not Accounted for GH¢275,704.74

1113. In a related development we noted that, special imprest

amounting to GH¢275,704.74 granted to officers to carter for

accommodation and communication whenever fair activities and

programmes were organised outside Accra were also not accounted

for. Included are funds transferred from the Authority’s project

account to Ghana Missions in various countries toward organisation

of fairs which were not accounted for.

1114. The above situation violates Regulation 288(2) of the FAR,

2004, (L.l.1802), which states that “failure to retire an imprest by due

date, unless occasional by the death or incapacity of the imprest

holder is a breach of financial discipline as defined in Regulation

8(1)”. Failure of the officers involved to render account for their

stewardship suggests the money was not judiciously used for the

purpose for which the fund was released to them.

1115. Under the circumstances, we could not vouch for validity of

these payments. We could also not obtain assurance that the

payments were made in the interest of the Authority or were in line

with its approved plan.

1116. We attributed the anomaly to weaknesses in the internal

control systems which allow officers other than accounting staff to

handle huge physical cash without ensuring accountability.

1117. We recommended that, the payments should be accounted

for immediately. In future, proper control should be exercised in

regulating the granting of such imprest and any imprest not so



retired, should be adjusted to the personal account of the imprest

holder as stipulated in Regulation 288(1) of the FAR.

1118. Management responded that, they will ensure that imprest

for accommodation is properly accounted for.

MINISTRY OF ENVIRONMENT, SCIENCE AND

TECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE

Introduction

1119. This report relates to the audited accounts of the Building

and Road Research Institute of the Council for Scientific and

Industrial Research (CSIR) for the year ended 31 December 2014.

Operational results

1120. The Institute’s operations for the year under review ended

with a deficit of GH¢163,781. This position is a huge dip from the

previous years that closed with a surplus of GH¢78,378, thus a deficit

of 309%. Details of the performance indicators are shown in Table 99.


Income 2014

GH¢

2013

GH¢

%

Change

Government Grants 8,617,934 2,132,444 304.1

Consultancy Income 457,497 186,382 145.5

Other Income 451,081 373,990 20.6

Total Income 9,526,512 2,692,816 253.8

Expenditure



Administrative

Expenses

340,262 280,771 21.2

Employment Cost 8,617,934 1,609,884 435.3

Travelling & Transport 131,360 244,466 (46.3)

Repairs & Maintenance 197,030 118,021 66.9

Financial Charges 17,145 52,347 (67.3)

Depreciation 386,563 308,948 25.1


Surplus / (Deficit) (163,781) 78,378 (309)


to GH¢9,526,512, in 2014. Government Grant, that forms 90% of Total

Income increased by 304.1% from GH¢2,132,444 in 2013 to

GH¢8,617,934 in 2014.

1122. Total Expenditure rose by 270.6% from GH¢2,614,437 in 2013

to GH¢9,690,294 in 2014. Major factors of this increment are

Administrative Expenses and Employment Cost. Administrative

Expenses increased by 21.2%. General Staff Salaries & Allowances

which form 72.3% of Employment Cost rose by 1,084.3%.

Financial position

1123. Below is a summary of the entity’s Financial Position as at 31

December, 2014 presented in Table 100.




2014

GH¢

2013

GH¢

%

Change


Current Assets 1,464,981 1,733,967 (15.5)


Net Current Assets (18,130) (146,679) (87.6)

Net Assets 48,363,781 9,881,081 389.5



in 2013 to GH¢48,381,910 in 2014. The increment was as a result of

land revaluation which added up an amount of GH¢35,300,248.

1125. Current Assets however decreased by 15.5% moving from

GH¢1,733,967 in 2013 to GH¢1,464,981 in 2014. The decrease resulted

primarily from the 100% clearing of the inter-bank account.

1126. Current Liabilities decreased by 21.1% from GH¢1,880,646 in

2013 to GH¢1,483,111 in the year under review. The decrease

resulted from a 50% decrease in Other Payable, showing a current

position of GH¢419,475 as compared to GH¢838,431 in 2013.

1127. Current Ratios of 0.9:1 and 1.0:1 for 2013 and 2014

respectively indicate that the Institute cannot meet its financial




MANAGEMENT ISSUES

Outstanding Statutory Deductions-GH¢954,107

1128. We noted that PAYE and Social Security Contribution

deducted from staff salaries over the years totaling GH¢954,107.00

were not remitted to the Ghana Revenue Authority (GRA) and Social

Security and National Insurance Trust (SSNIT) respectively. Details

showing below:

GH¢

Ghana Revenue Authority 349,164

Social Security Fund 604,943

954,107

1129. The practice of not remitting statutory deduction would deny

the state the use of potential revenue and also increase the liability

status of the Institute.

1130. We therefore advised management to liaise with CSIR

Secretariat to clear this outstanding deduction to avoid any penalty

from the two institutions.

1131. Management agreed to follow up on these outstanding

statutory deductions with the government through the CSIR

secretariat.

OIL PALM RESEARCH INSTITUTE, KUSI-KADE (COUNCIL

FOR SCIENTIFIC AND INDUSTRIAL RESEARCH)

Introduction

1132. This report covers the audited accounts of Oil Palm Research

Institute for the years ended 31 December 2013 and 2014.



Operational results

1133. The year 2014 closed with a deficit of GH¢1,065,658 as

compared to the previous year’s surplus of GH¢917,809, recording a

decrease of 216.1%. The performance indicators for 2014 are shown

in Table 101.


Income

2014 GH¢

2013 GH¢

% Change

Subvention from Government of Ghana

7,337,830 10,688,593 (31.3)

Internally Generated Funds 1,077,280 983,037 9.6

Total Income 8,415,110 11,671,630 (27.9)

Expenditure

Personnel Emoluments 7,285,204 8,521,448 (14.5)


Financial Charges 7,438 12,832 (42)

Travel and Transport 403,368 401,713 0.4

Administrative and General

Expenses

1,543,000 1,628,848 (5.3)

Total Expenses 9,480,768 10,753,821 (11.8)

Surplus/(Deficit) (1,065,658) 917,809 (216.1)

1134. The Institute’s total revenue decreased by 27.9% from

GH¢11,671,630 in 2013 to GH¢8,415,110 in 2014. The decrease of

31.3% in Subvention from Government of Ghana accounted for the

reduction in total income.

1135. Total Expenditure for the year 2014 amounted to

GH¢9,480,768 compared to GH¢10,753,821 in 2013, registering a

decrease of 11.8%. A reduction of 42% in Financial Charges and

14.5% in Personnel Emoluments contributed to the decrease.



Financial position

1136. The Institute’s financial position as at 31 December 2014 is

summarized in Table 102.

Table 102: Statement of financial Position as at 31 December 2014

2014

GH¢

2013

GH¢

%

Change

Non-current Assets 325,107 114,630 183.6

Current Assets 714,767 1,929,327 (63.0)


Current ratio 1.8:1 5.7:1


2013 to GH¢325,107 in 2014. This was as a result of additions to

Property, Plant and Equipment and addition to Work In Progress

(WIP) at Begro’s project.

1138. Current Assets reduced by 63% from GH¢1,929,327 in 2013 to

GH¢714,767 in 2014. This was as a result of decrease in stocks by

GH¢89,886 and Accounts Receivables by GH¢106,401 in 2014

financial year.


2013 to GH¢398,614 in 2014 mainly due to an increase in accounts

payable.

1140. The Institute’s current ratio of 1.8:1 (2013:5.7:1) shows that

the Institute will not be able to meet its short term obligations when

they fall due.



ROOT AND TUBER CROPS PROJECT (CSIR)

Introduction

1141. This report relates to the audited accounts of the CSIR-Root

and Tuber Crops Project for the financial years ended 31 December

2012, 2013 and 2014.

Operational results

1142. The Project’s operations for 2014 ended with a deficit of

GH¢125,350 as against a deficit of GH¢222,959 in 2013. The



Income 2014

GH¢

2013

GH¢

%

Change

Grants 2,425,575 2,396,233 1.2

Expenditure

Employment Cost 2,454,483 2,350,815 4.4

Establishment & Admin

Expenses

11,794 81,818 (85.6)

Travelling & Transport 67,640 166,008 (59.3)

Repairs & Maintenance 11,857 15,967 (25.7)

Financial & Professional

Charges

5,151 4,584 12.4


Surplus / (Deficit) (125,350) (222,959) (43.8)

1143. Total Income increased by 1.2% from GH¢2,396,233 in 2013 to

GH¢2,425,575 in 2014. The increase was mainly due to an increase in

Grants for the year.



1144. Total Expenditure decreased by 2.6% from GH¢2,619,192 in

2013 to GH¢2,550,925 in 2014. The decrease was due to a reduction of

85.6% in Establishment & Administration expenses and also a

reduction of 59.3% in Travelling & Transport cost.

Financial position

1145. Table 104 shows a summarized balance sheet of the Project as



Item 2014

GH¢

2013

GH¢

%

Change


Current Assets 103,828 238,545 (56.5)


Net Current Assets 81,208 205,132 (60.4)

Net Assets 89,597 214,947 (58.3)


1146. Non-Current Assets decreased by 14.5% from GH¢9,815 in

2013 to GH¢8,389 in 2014. The decrease was mainly due to

depreciation charge of GH¢1,426 for the year.

1147. Current Assets decreased by 56.5% from GH¢238,545 in 2013

to GH¢103,828 in 2014. The decrease was due to a 41% decrease in

Bank and Cash Balances.

1148. Current Liabilities also decreased by 32.3% from GH¢33,413

in 2013 to GH¢22,620 in 2014. The decrease was due to a 32.3%

decrease in Accounts payable.



1149. The Project’s current ratio for the year under review stood at

4.6:1 as against 7.1:1 for 2013. This means that the project can meet its

short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Research Grant

1150. We observed that the Institute had not received any research

grant from the Government since 2013 but continue to pay research

staff salaries for no work done which is not a healthy situation.

1151. We recommended that the Head Office (C.S.I.R) should bring

to the Government’s attention this unhealthy situation to enable

research work to continue.

1152. Management responded that they had taken note of our

recommendations.

SOIL RESEARCH INSTITUTE (CSIR)

Introduction

1153. This report relates to the audited accounts of the Soil

Research Institute (Council for Scientific and Industrial Research) for

the years ended 31 December 2012 and 2013.

Operational results

1154. Total Income grew by 66.9% from GH¢5,859,687 in 2012 to

GH¢9,783,442 in 2013. This was due to increases in Subvention from

Ghana government and Internally Generated Funds by 66.1% and

93.3% respectively. The performance indicators are show in Table



105.

Table 105: Income Statement for the year ended 2013

2013

GH¢

2012

GH¢

%

Change

Subvention from GoG 9,430,643 5,677,186 66.1

Internally Generated Funds 352,799 182,501 93.3

Total Income 9,783,442 5,859,687 66.9

Recurrent Expenditure



Financial Charges 2,072 6,295 (67.1)


Administrative and

General Expenses

775,359 546,169 41.9

9,680,703 5,345,049 81.1

Excess Income over

Expenditure

102,739 514,638 (80.0)

1155. Total Expenditure increased from GH¢5,345,049 in 2012 to

GH¢9,680,703 in 2013, representing 81.1% rise. This was largely due

to a rise in employment cost to reflect changes in the single spine

salary structure from GH¢4,573,857 in 2012 to GH¢8,575,794 in 2013

and travelling and transport expenses which increased from

GH¢155,524 in 2012 to GH¢285,457 in 2013.

1156. Excess Income over expenditure decreased by 80.0% from

GH¢514,638 in 2012 to GH¢102,739 in 2013.

Financial position

1157. Table 106 shows the financial position as at 31 December 2013




2013

GH¢

2012

GH¢

%

Change


Current Assets 528,482 1,245,885 (57.6)




1158. Non-Current Assets decreased by 6.9% from GH¢444,405 in

2012 to GH¢413,435 in 2013 due to depreciation charged in the

current year.


to GH¢528,482 in 2013. A reduction in Accounts Receivable and

Prepayments from GH¢741,974 in 2012 to GH¢53,963 in 2013 largely

accounted for the decrease.

1160. Current Liabilities fell from GH¢958,752 in 2012 to

GH¢107,640 in 2013, representing 88.8% decrease. This was mainly

due to decreases in Inter-CSIR accounts of 99.7% and

superannuation fund of 97.7%.

1161. The liquidity position of the Institute as measured by a

current ratio of 4.9:1 in 2013 (2013: 1.3:1) indicates the Institutes

ability to meet its short-term obligations when they fall due.



MANAGEMENT ISSUES

Office Building not insured

1162. Contrary to Insurance policy on Commercial buildings, we

observed that the office building had not been insured. In case of

any eventuality, especially fire outbreak, the Institute can incur huge

losses without recourse to adequate compensation.

1163. We recommended that the office buildings be insured

without delay.

1164. Management responded that the issue has been discussed at

Management/Board Meeting for prompt action but the challenge is

the premium involved. Meanwhile it has been captured in the

Institute’s budget.

Title Deeds

1165. We observed that, the Institute did not have Title Deeds for

the land on which the office buildings were situated. The existence

of the deeds could forestall unnecessary land litigation.

1166. We recommended that immediate steps be taken to obtain

title deeds for the Institute’s properties.

1167. Management responded that the lease has expired since June,

2008. CSIR Head office has formed a Committee to deal with the

issue. We were also informed that part of the Land has been

released to the Chiefs and the Committee is working on the payment

of compensation for the remaining land.



Laboratory Chemicals

1168. We observed that most of the chemicals at the stores have

expired, and there were visible cracks on most of the test tubes. This

is a clear indication that stores were not properly maintained. It also

suggest that due diligence as to the life span of the chemicals were

not done at the time of the purchase.

1169. We recommended that a board of survey should be instituted

to dispose off the expired chemicals.

1170. Management responded that, the expired chemicals are being

kept separately for disposal. The Scientist in-charge of the

laboratories, Dr. F.M. Tetteh has been assigned to meet with

Environmental Protection Agency for the exercise to be carried out.

COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH –

SOIL RESEARCH INSTITUTE KWADASO – KUMASI

Introduction

1171. This report relates to the audited accounts of CSIR – Soil

Research Institute Kwadaso-Kumasi for the year ended 31 December

2014.

Operational results

1172. Total Income registered a decrease of 19.2% from

GH¢9,783,442 in 2013 to GH¢7,900,642 in 2014. This was as a result

of a decrease in Government subvention by 19.4% and Internally

Generated Funds by 15.8%. The performance indicators are as shown

in Table 107.




Income

2014

GH¢

2013

GH¢

%

Change

Subvention from

Government of Ghana

7,603,572 9,430,643 (19.4)

Internally generated funds 297,071 352,799 (15.8)

Total Income 7,900,643 9,783,442 (19.2)

Expenditure

Personnel emoluments 7,303,039 8,515,794 (14.2)


Finance Charges 986 2,072 (52.4)


Administrative and

general Expenses

449,806 775,359 (42)


(Deficit)/Surplus (389,400) 102,739 (479)

1173. Expenditure incurred in 2014 totaled GH¢8,290,043 as against

GH¢9,680,703 in 2013 indicating a decrease of 14.4%. Total

Expenditure included Personnel Emolument which decreased by

14.2% and Finance Charges which also decreased by 52.4%.

1174. The operations of the Institute for the year under review

ended with a deficit of GH¢389,400 as against a surplus of

GH¢102,739 for the previous year registering a 479% decrease.

Financial position

1175. The Institute’s financial position, as at 31 December 2014 is

shown in Table 108.




2014

GH¢

2013

GH¢

%

Change


Current Assets 243,964 528,482 (53.8)



1176. Non-Current Assets increased by 1.8% in 2014 due to

additions to fixed assets for the year.

1177. Current Assets decreased by 53.8% to GH¢243,964 in 2014

(2013: GH¢528,482). This included stocks balance of GH¢42,685 and

Debtors and other receivables balance of GH¢125,455.

1178. Current Liabilities recorded an increase of GH¢112,314 or

104.3% from the previous year’s amount of GH¢107,640 to

GH¢219,954 in 2014. This was due to increase in Creditors and

Accruals.

1179. The liquidity position as measured by the current ratio of

1.1:1 for 2014 and 4.9:1 for 2013 financial year shows a decline in the

liquidity position. This indicates that the Institute cannot meet its

short term obligations as and when they fall due.

MANAGEMENT ISSUES

Obsolete Laboratory Chemicals

1180. Regulation 1104 of the Stores Regulation 1984, requires

obsolete stores to be segregated from the general stocks and be



transferred from the main stock control ledger to a subsidiary ledger

(Losses and Depreciation) as soon as a decision to survey the items

has been taken.

1181. It came to our notice that most of the chemicals at the store

have expired and tubes used for testing have visible cracks.

1182. We recommended that the appropriate authority should be

sought for the disposal of the expired or obsolete stocks and must be

deleted from the stores ledger.

1183. Management stated that the expired and obsolete stock items

are being handled by the Environmental Protection Agency and

Zoom lion for disposal.

Insurance of Office Buildings

1184. The Insurance Law, 2006 (Act 742) Section 184 (1) and (2)

requires every commercial building to be insured against hazards of

collapse, fire, earthquake, storm, and flood as well as the legal

liabilities of an owner or occupier of premises, in respect of loss of or

damage to property, bodily injury or death by any user of the

premises and third parties.

1185. We noted that the Institute office building had not been

insured as required by the above mentioned law. In the absence of

an insurance cover, the Institute cannot claim for damages.

1186. We recommended that the Institute should have its buildings

and other asset apart from motor vehicle insured against fire,

burglary and theft.



1187. Management responded that the Institute has written to

Insurance Companies for quotations and hope to use part of its

Internally Generated fund to pay the Insurance cover.

FORESTRY RESEARCH INSTITUTE (CSIR)

Introduction

1188. This report relates to the audited accounts of the Forestry

Research Institute (CSIR) for the year ended 31 December 2013.

Operational results

1189. The Institute realized a total income of GH¢9,796,119 in the

year under review as compared to total income of GH¢6,440,691

recorded in 2012, representing an increase of 52.1%. This was mainly

due to increase in subvention received from the Government of

Ghana

1190. Presented in Table 109 is summary of Institute’s performance

indicators.


Income

2013

GH¢

2012

GH¢

%

Change

Government

Grant/Subvention

9,251,571 6,031,120 53.4

Other Income 544,548 409,571 33.0

Total Income 9,796,119 6,440,691 52.1

Expenditure

Operating Expenditure 10,194,636 6,046,231 68.6

(Deficit)/Surplus (398,517) 394,460 (201.0)



1191. Total Expenditure increased significantly by 68.6% from

GH¢6,046,231 in 2012 to GH¢10,194,636 in 2013. The major items

which accounted for the increase were Basic Salary which moved

from GH¢1,961,036 in 2012 to GH¢5,540,464 in 2013 representing a

182.5% rise and payments of IA Factor Allowance of GH¢1,624,614 in

the year under review.

1192. The Institute incurred a deficit of GH¢398,517 at the end of

2013 as compared with a surplus of GH¢394,460 in 2012, registering a

fall of 201.0%.

Financial position

1193. The financial position of the Institute is presented in Table

110.


2013 GH¢

2012 GH¢

% Change


Current Assets 1,107,653 2,350,125 (52.9)

Current Liabilities 483,803 1,309,312 (63.0)

Net Assets 1,388,456 1,786,973 (22.3)


1194. The Institute’s Non-Current Assets at the close of 2013 stood

at GH¢764,606 as against GH¢746,160 in 2012, showing a marginal

rise of 2.5% and this was due to additions to land and building,

equipment and furniture, fixtures and fittings.


to GH¢1,107,653 in 2013. The decrease was largely due to the

reduction in Accounts Receivable which dropped from GH¢1,583,600



in 2012 to GH¢350,698 in 2013 or 77.9% fall.

1196. Current Liabilities also recorded a decrease of 63.0% from

GH¢1,309,312 in 2012 to GH¢483,803 in 2013. A decrease of 92.5% in

Internal Revenue Service payable and 99.1% in FORIG Staff Fund

Loan accounted for the difference.

1197. The Institute’s liquidity position as depicted by its current

ratio of 2.3:1 in 2013 as compare to 1.8:1 in 2012 appears favourable,

this indicates the Institute’s ability to meet short-term obligations

when they fall due.

MANAGEMENT ISSUES

Failure to retire Accountable Imprest – GH¢22,563

1198. Contrary to Regulation 288 (1) of the FAR, we noted that total

amount of GH¢22,563 granted to officials of the Institute for various

programmes remained unaccounted for at the end of the period.

1199. We could not determine whether the funds were used for the

intended purposes or not.

1200. We therefore recommended that the officers involved should

be made to account for the imprest or the amount involved should

be adjusted to a personal advance accounts in their names.

1201. Management said, they have decided to transfer all unretired

imprest balances standing in the name of staff to their personal

accounts



ANIMAL RESEARCH INSTITUTE (CSIR)

Introduction

1202. This report relates to the audited accounts of the Animal

Research Institute – CSIR for the financial year ended 31December

2014.

Operational results

1203. The entity’s Operations for the year under review ended with

a deficit of GH¢483,875 as compared to 2013 surplus of GH¢512,567.

This downward drop is significant as it resulted in a 194.4% deficit.

The details of the performance indicators are shown in Table 111.


Income 2014

GH¢

2013

GH¢

%

Change

Recurrent Grant 7,129,902 9,606,173 (25.8)

Other Income 483,853 212,570 127.6

Total Income 7,613,755 9,818,743 (22.5)

Expenditure

Establishment and Admin.

Expenses

572,589 408,362 40.2

Employment Cost 7,177,510 8,545,722 (16)

Travelling and Transport 164,757 165,603 (0.5)



Charges

8,663 6,706 29.2

Depreciation Charges 97,693 109,763 (11)

Total Expenditure 8,097,630 9,306,174 (13)

Surplus / (Deficit) (483,875) 512,567 (194.4)



1204. Total Income decreased by 22.5% from GH¢9,818,743 in 2013

to GH¢7,613,755 in 2014.

1205. Recurrent Grant which constituted 93.6% of the total income

dropped by 25.8%.

1206. Total Expenditure reduced by 13% from GH¢9,306,176 in

2013 to GH¢8,091,630 in 2014. This resulted from a decrease in

Employment Cost, of 16%.

Financial position

1207. Below is a summary of the entity’s Financial Position as at

31st December, 2014.

Total 112: Assets and Liabilities as at 31st December 2014

2014 GH¢

2013 GH¢

% Change


Current Assets 2,099,843 2,092,754 0.3



Net Assets 1,664,057 954,769 74



2013 to GH¢749,080 in 2014. Major factor of this increment resulted

from a 444.8% increase in Construction Works which moved from

GH¢57,215 in 2013 to GH¢311,683 in 2014.

1209. Current Assets made a marginal increase of 0.3, moving from

GH¢2,092,754 in 2013 to GH¢2,099,843 in 2014. Increase in inventory



accounted for the rise.


2013 to GH¢1,184,866 in 2014. Accounts payable which forms bulk of

the current liabilities reduces by 23.2%

1211. The liquidity position of the Institute stood at 1.8:1 in the

current year as against 1.4:1 in 2013. Though the liquidity position

improved slightly, it was still unfavourable and needs more

attention so that the Institute will be able to meet its short term


FOOD RESEARCH INSTITUTE (CSIR)

Introduction

1212. This report relates to the audited financial statements of CSIR

– Food Research Institute for the period of January 2013 to 31

December 2014.

Operational results

1213. A deficit of GH¢904,244.00 was recorded in 2014 as compared

to a surplus of GH¢385,955.00 in 2013 representing 334.3% decline in

performance which could be attributed to decrease in Recurrent

Grant received. Performance details are shown in the Table 113.


Income

2014

GH¢

2013

GH¢

%

Change

Recurrent Grant 6,420,890 8,461,582 (24.1)

Other Income 302,207 128,950 134.4

Total Income 6,723,097 8,590,532 (21.7)

Expenditure

General and Administrative 874,633 586,491 49.1




to GH¢6,723,097 in 2014. The decrease was as a result of 24.1%

decrease in Recurrent Grant. Other Income on the other hand

increased by 134.4% from GH¢128,950 in 2013 to GH¢302,207 in 2014.

1215. Total Expenditure also decreased by 7.0% from GH¢8,204,577

in 2013 to GH¢7,627,341.00 in 2014. The decrease in total

expenditure could be attributed to 12.4% decrease in Employment

cost from GH¢7,432,395 in 2013 to GH¢6,512,750 in 2014.

Financial position

1216. The analysis of the Financial Position of CSIR – Food

Research Institute for 2014 and its comparative figures for 2013 are

shown in the Table 114.

Table 114: Balance Sheet as at 31 December 2014.

Expenses

Employment Cost 6,512,750 7,432,395 (12.4)


Travel and Transport 54,644 47,349 15.4


Surplus/(Deficit) (904,244) 385,955 (334.3)

2014 GH¢

2013 GH¢

% Change


Current Assets 1,294,080 2,001,666 (35.3)


Net Current Assets 738,223 1,600,483 (53.9)

Net Assets 1,956,792 2,858.042 (31.5)




1217. Non-Current Assets decreased by 3.1% from GH¢1,257,559 in

2013 to GH¢1,218,569 in 2014. The reduction was due to


1218. Current Assets dropped significantly from GH¢2,001,666.00

in 2013 to GH¢1,294,080.00 in 2014 representing a 35.3% decrease.

This was mainly caused by 44.9% and 38.9% decrease in Account

Receivable and Bank and Cash Balances respectively.

1219. Current Liabilities rose by 38.6% from GH¢401,183 in 2013 to

GH¢555,857 in 2014. This was as a result of 57.4% increase in

Accounts payable from GH¢269,404 in 2013 to GH¢424,078 in 2014.

1220. The Liquidity position of the Institute as measured by

Current Ratio, declined from 5.0:1 in 2013 to 2.3:1 in 2014. This

implies that the ability of the institute to meet its short-term

obligations as and when they fall due is declining.

MANAGEMENT ISSUES

Salary Administration

Delay in payment of PAYE and Social Security deductions-

GH¢75,377.56 and GH¢28,500.61

1221. Contrary to Section 87 (1) of the Internal Revenue Act 2000

(Act 592) as amended and National Pensions Act 2008 (Act 766), we

noticed that P.A.Y.E deduction of GH¢75,377.56 and Social Security

deductions of GH¢28,500.61 which were outstanding before the

Controller and Accountant-General Department took over the

preparation of the Payroll still remained unpaid to the appropriate

authorities. Consequently, the State was deprived of the much

needed revenue for development programmes.



1222. We recommended that efforts should be made to ascertain

the individual details of these outstanding amounts with the view of

paying these to the appropriate authorities without further delay.

Failure to Emboss Assets and update Fixed Assets

1223. Our audit revealed that some fixed assets belonging to the

Food Research Institute were not tagged and most of these were

those acquired in 2014. There were also instances where two or three

different fixed assets were given similar identification numbers.

1224. A fixed assets register provided for our inspection did not

have details of most fixed assets physically identified. These were in

contravention to Regulation (1513) of the Store Regulation 1984 and

regulation 2(n) of FAR 2004 (L.1.1802). This arose because the

Institute is yet to constitute an estates unit to conduct proper labeling

of the assets. Also the accounts department has delayed in updating

the Fixed Assets Register. This could lead to difficulty in inventory

taking, creating room for diversion of assets and/or misuse.

1225. We recommended that relabeling of all fixed assets of the

institute be conducted. The fixed assets register should also be

updated to include all assets belonging to the Institute.

1226. According to management, the process of labeling of all fixed

assets has been started with the formation of a three man team to

identify all fixed assets within the institute which were not labeled.

All these assets will be labeled before the end of 2015. Management

has now agreed that fixed assets should be labeled as and when they

are purchased and or installed



Account Receivables - Inaccurate sales records

1227. Our audit revealed that sampled products given to

companies such as Melcom Stores, Q and O Company in Takoradi,

Owura Friends company also in Takoradi among others did not

reflect in the books of the institute contrary to Regulation 1 of FAR

2004 (L.I.1802). This was due to lack of proper system of recording

sampled product for testing the market.

1228. Improper tracking of such product could result in the

companies not accounting for the proceeds accurately from such

sales.

1229. We recommended that proper procedures should be put in

place to ensure that all such sales made, be it cash or credit, are

properly recorded and accounted for.

1230. According to management, the Commercialization Division

has been mandated to copy all invoices concerning credit sales to the

Accounts Division for proper documentation.

Inaccurate stock value

1231. For purposes of presenting accurately the results and total

assets of the institute, relevant inclusions should be made of all

assets both non-current and current, including stocks for sales.

1232. Our examinations revealed that year end stock did not

include stocks of finished products produced by the institute. Bin

cards meant for recording stock items did not have values attached

to them and were kept at the accounts office instead of the respective

store-houses as is appropriate.

1233. This might be due to the institute not being aware of the



essence of including all stock items in the closing stock figure.

1234. We recommended that all stock items of the institute should

be valued at year end, and the correct amounts reflected in the

statement of accounts. Bin cards should also be kept at the stores for

effective recording of stocks.

1235. In response, management said the Accounts Division has

taken over the finished goods store from the Commercialization

Division for proper recording of stocks. Meanwhile, the storekeeper

has been advised to put all bin cards in the bins containing the items.

SCIENCE AND TECHNOLOGY POLICY RESEARCH INSTITUTE

(C.S.I.R)

Introduction

1236. This report covers the audited financial statements of the

Science and Technology Policy Research Institute (C.S.I.R) for the


Operational results

1237. Shown in Table 115 below is a summary of the Institute’s


2013

GH¢

2012

GH¢

%

Change


Other Income 1,184,485 756,110 56.6

Total Income 3,660,434 1,991,197 83.8

Compensation of

Employees

2,130,619 883,893 141.0

Goods and Services 1,273,383 912,614 39.5



Depreciation 63,061 49,557 27.2

Audit fees 5,930 4,388 35.1


Surplus for the year 187,441 140,745 33.2

1238. The Institute realized a Total Income of GH¢3,660,434 in

2013, representing an increase of 83.8% over the 2012 figure of

GH¢1,991,197. The rise in Total Income was mainly due to a 100.4%

increase in Government Subvention and 56.6% increase in Other

Income.


GH¢1,850,452 in 2012 to GH¢3,472,993 in 2013. The rise was mainly

due to an increase in compensation of employees from GH¢883,893

in 2012 to GH¢2,130,619 in 2013.

1240. The Institute realized a surplus of GH¢5187,441 at the end of

2013 as compared with GH¢140,745 in 2012, registering a rise of

33.2%

Financial position

1241. The statement of financial position of the Institute is

presented in the Table.

2013

GH¢

2012

GH¢

%

Change


Current Assets 969,620 1,047,210 (7.4)


Net Current Assets (7,317) 59,079 (112.4)

Net Assets 449,763 270,949 65.9




1242. Non-Current Assets of the Institute increased from

GH¢211,870 in 2012 to GH¢457,080 in 2013, a rise of 115.7%. The

increase was due to the acquisition of fixed assets.

1243. Current Assets on the other hand reduced by 7.4% from

GH¢1,047,210 in 2012 to GH¢969,620 in 2013. The fall was due to

reduction cash/bank balances.

1244. Current Liabilities fell from GH¢988,131 in 2012 to

GH¢976,937 in 2013 due to a decline in Sundry Creditors and

accruals from GH¢414,257 in 2012 to GH¢249,142 in 2013.

1245. The Institute’s liquidity ratio at the year-end was 0.9:1

(2012:1.05:1). This shows the Institute’s inabilities to pay its short

term debts when they are due.

PLANT GENETIC RESOURCES RESEARCH INSTITUTE (CSIR)

Introduction

1246. This report relates to the audited accounts of the Plant

Genetic Resources Research Institute (CSIR) for the financial year


Operational results

1247. The operations of the Institute for the year under review

ended with a deficit of GH¢221,188 as compared to a surplus of

GH¢140,767 in 2012, representing a decrease of 257.1%. Performance

indicators are shown in Table 116.





to GH¢906,744 in 2013. The decrease was mainly due to a 70.1%

decreased in Government Subvention.

1249. Total Expenditure decreased by 58.2% from GH¢2,698,980 in

2012 to GH¢1,127,932 in 2013. The reduction was mainly due to a

71.1% decrease in compensation of employees.

Financial position

1250. Table 117 shows a summarized balance sheet of the Institute

as at 31 December 2013.


Income

2013 GH¢

2012 GH¢

% Change

Government Subvention 827,005 2,764,910 (70.1)

Other Income 79,739 74,837 6.6

Total Income 906,744 2,839,747 (68.1)

Expenditure

Compensation of Employees 652,357 2,254,595 (71.1)

Goods and Services 475,575 444,385 7.0


Surplus/(Deficit) (221,188) 140,767 (257.1)

Item

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 301,382 358,765 (16)

Current Assets 239,058 453,345 (47.3)



Net Assets 451,619 690,294 (34.6)




1251. Non-Current Assets decreased by 16% from GH¢358,765 in

2012 to GH¢301,382 in 2013. The decrease was mainly due to

depreciation charges.


to GH¢239,058 in 2013. This was mainly due to a reduction in

Debtors and Prepayments.

1253. Current Liabilities also decreased by 27.1% from GH¢121,816

in 2012 to GH¢88,821 in 2013. This was as result of a reduction in

creditors and accruals.

1254. The liquidity position as indicated by the current ratio of

2.7:1 (3.7:1, 2012) shows that the Institute can meet its short term


INSTITUTE FOR SCIENTIFIC AND TECHNOLOGICAL

INFORMATION (CSIR)

Introduction

1255. This report relates to the audited accounts of the CSIR-

Institute for Scientific and Technological Information for the period

1January 2009 to 31 December 2013.

Operational results

1256. Total Income for the year under review amounted to

GH¢623,272 as against GH¢1,889,935 recorded in 2012, a decrease of

GH¢1,266,663 or 67.0%. The decrease was mainly due to a 67.2%

reduction in grant and subvention for the year and a 64.1% reduction

in Other Income. Shown in Table 118 are the performance indicators.




Income

2013

GH¢

2012

GH¢

%

Change

Grant and Subvention 586,966 1,788,686 (67.2)

Other Income 36,307 101,249 (64.1)

Total Income 623,272 1,889,935 (67.0)

Expenditure

Personal Emolument/Other Expenses

295,159 1,530,679 (80.7)

Travelling and Accommodation

88,377 80,734 9.5

General Administrative Expenses

197,442 198,097 (0.3)

Repairs and Maintenance 41,167 4.630 789.1

Depreciation 72,448 82,441 (12.1)

Total Expenditure 694,594 1,896,581 (63.4)

(Deficit)/Surplus (71,322) (6,646) 973.2

1257. Total Expenditure for the year 2013, decreased by 63.4% from

GH¢1,896,581 in 2012 to GH¢694,594 in 2013. This was due to the

transfer of the payroll function to the Controller and Accountant-

General’s Department during 2013 hence the reduction in grant and

subvention.

1258. The Institute registered a significant increase in deficit by

973.2% from a GH¢6,646 deficit recorded in 2012 to GH¢71,322 in

2013.

Financial position

1259. The Institute’s financial position as at 31 December 2013 is

shown in Table 119.




2013

GH¢

2012

GH¢

%

Change


Current Assets 122,199 131,607 (7.1)


Net Assets 179,337 250,658 (28.5)


1260. The Institute’s non-current assets registered GH¢213,833 in

2013 compared with GH¢209,986 in 2012, a marginal growth of 1.8%.

This was due to the acquisition of office equipment and motor cycles

and vehicles.


to GH¢122.199 in 2013. The decrease was mainly due to a 58.8%

decrease in bank and cash balances from GH¢47,113 in 2012 to

GH¢19,397 in 2013.

1262. Current Liabilities, however rose by 72.3% from GH¢90,934

in 2012 to GH¢156,695 in 2013, Inter Institute Credit balances and

other credit balances accounted for the increase.

1263. The Institute’s liquidity position as at the end of 2013 was

0.8:1 as against 1.4:1 recorded in 2012. This unhealthy liquidity ratio

shows that the Institute will not be able to meet its short term




ENVIRONMENTAL PROTECTION AGENCY

Introduction

1264. This report relates to the audited accounts of Environmental

Protection Agency for the year ended 31 December 2014.

Operational results

1265. The Agency’s income surplus for the year under review

amounted to GH¢583,096 as against GH¢1,402,449 recorded in 2013.

1266. Presented in Table 110 are the operational results for the

agency.

Table 120: income statement for the year ended 31 December 2014

Income

2014

GH¢

2013

GH¢

%

Change


Grants 3,102,657 2,251,512 37.8


SBS-NREG Fund 381,585 - 100.0

Other Income 1,020,821 667,719 52.9

Total Income 20,595,535 16,004,676 28.7

Expenditure


Service Activities 6,548,495 4,372,410 49.8

General & Admin. Expenses 6,815,784 4,271,810 59.6


Charges

87,207 64,136 36.0


Excess of Income over

Expenditure

543,096 1,402,449 (61.3)



1267. The total revenue increased from GH¢16,004,676 in 2013 to

GH¢20,595,535 in 2014. This showed an increase of GH¢4,590,859

representing 28.7%. This increase was as a result of 32.8% rise in

Internally Generated Funds by GH¢2,612,681.

1268. There were significant increases in various expenditure

headings however; the major increase was in personnel emoluments.

This increased by GH¢707,082 which represented a percentage

increase of 12%.

Financial position

1269. Table 121 .shows the financial position of the Agency for the



1270. The Non-Current Assets of the agency increased from

GH¢28,872,178 in 2013 to GH¢37,164,316 in 2014. This represent

28.7% increase; the increase was attributed to additional assets

purchased during the year totaling GH¢5,887,173.

1271. Current Assets Decrease by 0.4% from GH¢1,982,102 in 2013

to GH¢1,973,994 in 2014. This was mainly due to a decrease in the

Item

2014

GH¢

2013

GH¢

%

Change


Current Assets 1,973,994 1,982,102 (0.4)


Net Assets 39,087,310 30,810,830 26.9




agency’s bank balances.

1272. Current Liabilities on the other hand registered an increase of

17.4% from GH¢43,450 in 2013 to GH¢51,000 in 2014. The increase

was attributed to a rise in Audit fees and Audit expenses.

1273. The liquidity position of the agency as measured by current

ratio however decreased from 45.6:1 in 2013 to 38.7:1 in 2014. In

spite of this drop, the agency have enough funds to manage its short

term liabilities as and when they fall due.

MANAGEMENT ISSUES

Laboratory

1274. A well-equipped and manned laboratory is an essential

resource to the performance of EPA duties, we noted during our

audit visit to the regional and district offices that most of the

laboratories were either not properly equipped or lacked a

laboratory technician to operate them. The following were the

conditions of the labs we visited.

Regional/District

Office

Laboratory Laboratory

Technician

Materials

Cape Coast Completed Nil No reagents

Sekondi Not Completed

Nil Nil

Tarkwa Nil Nil Nil

Kumasi Completed Nil No reagents

Koforidua Non completed

Nil Nil

Ho Completed Nil No reagents

1275. We observed that none of the laboratories at the regions and



district visited were functioning. In addition, the noise meters, air

sampler and portable labs in almost all the offices were not working.

1276. We recommended that efforts should be made to ensure that

the laboratories at all the offices are fully equipped and properly

manned to ensure that the agency carries out its mandate in a more

efficient manner.

1277. Management noted the recommendation and indicated that

three of the laboratories are being upgraded. These are Head office,

Takoradi and Tema. The rest of the laboratories shall also be

equipped with the required logistics and personnel to provide the

relevant data at the regional level.

NATIONAL ENVIRONMENTAL FUND (EPA)

Introduction

1278. This report covers the audited accounts of the Environmental

Protection Agency - National Environment Fund for the year ended

31 December 2014.

Operational results

1279. The fund made a surplus of GH¢14,168,222 as against

GH¢8,591,528 recorded in 2013. This represents an increase of

64.91%. Details of the National Environmental Funds performance

for 2014 are shown in Table 122.


Income

2014 GH¢

2013 GH¢

% Change

Income from Levies 28,590,438 19,362,005 47.7

Other Income 4,448,796 3,986,318 11.6



1280. The Fund’s major sources of Income in 2014 were from

EIA/Exploration permit, Chemical Clearance and Pesticides

Registration. Total Income for the year increased by 41.5% from

GH¢23,348,323 in 2013 to GH¢33,039,234 in 2014.

1281. Total Expenditure recorded a 27.9% increase from


32.8% increase in processing and management charges from

GH¢7,963,606 in 2013 to GH¢10,576,287 in 2014.

Financial position

1282. Table 123 provides the financial position of the fund as at 31

December 2014.

Total Income 33,039,234 23,348,323 41.5

Expenditure

Monitoring and Investigation 1,403,191 1,473,796 (4.8)

Environmental Education 820,256 1,234,994 (33.6)

Human Resources

Development

662,540 924,480 (28.3)

Processing and Management

Charges

10,576,287 7,963,606 32.80

Administrative and other

Expenses

5,408,738 3,159,919 71.2


Surplus (Net Income) 14,168,222 8,591,528 64.91



1283. Fixed Assets rose to GH¢16,308,085 in 2014 from

GH¢8,649,218 in 2013, representing a rise of 88.6%. The rise was due

to addition to non-current assets and work-in-progress.

1284. Current Assets of the fund registered a growth of 30.9% from

GH¢20,125,804 in 2013 to GH¢26,340,401 in 2014. The increase

resulted from a significant rise in bank balance and investment.


2013 to GH¢25,922 in 2014. Reduction in bank overdraft accounted

for the decrease.

1286. Liquidity status as measured by a current ratio of 1,016.1:1

(2013:62.8:1) puts the fund in a favourable position to meet its short-

term debts whenever they fall due.

2014

GH¢

2013

GH¢

%

Change


Current Asset 26,340,401 20,125,804 30.9



Net Assets 42,622,563 28,454,341 49.8

Current Ratio 1,016.1:1 62.8:1 -



COUNCIL FOR SCIENTIFIC AND INDUSTRIAL

RESEARCH-CROPS RESEARCH INSTITUTE

MIDA PROJECT (BPA-1101103-09)

Introduction

1287. This report relates to audited accounts of Crops Research

Institute, MIDA Project (NPA-1101103-09) for the year ended 31

December 2011.

Operational results

1288. The Institute’s operations for the year under review ended

with a deficit of GH¢141,650 compared with a 2010 surplus of

GH¢303,563, representing a decrease in surplus of 146.7%. The

performance indicators are shown in the Table below:


Revenue 2011

GH¢

2010

GH¢

%

Charge

Training Fees 46,800 959,850 (95.1)

Finance Income 34,191 27,297 25.3

Total Revenue 80,991 987,147 (91.8)

Expenditure

Direct Training Expenses 174,516 482,094 (63.8)

Administrative & General

Expenses

47,655 200,862 (76.3)

Finance Cost 470 628 (25.2)


Net (Deficit)/Surplus (141,650) 303,563 (146.7)

1289. Total Income for the year stood at GH¢80,991 as against

GH¢987,147 during the 2010 financial year. This represented a 91.8%

decrease from the previous year. The decrease in income of 91.8%



was mainly due to a 95.1% decrease in training fees from

GH¢959,850 in 2010 to GH¢46,800 in 2011.

1290. Total Expenditure reduced from GH¢683,584 in 2010 to

GH¢222,641 in 2011, representing 67.4%. The decrease in total

expenditure was mainly due to a 63.8% decrease in direct training

expenses and 76.3% decrease in administrative and general expenses

during the period under review.

Financial position

1291. The Table below shows a summary of the Institute’s financial

position as at the end of the year reviewed.


2011

GH¢

2010

GH¢

%

Change


Current Assets 371,532 702,706 (47.1)



1292. Non-Current Assets decreased by 9.6% or GH¢2,251 to

GH¢21,150 in 2011 as against the 2010 amount of GH¢23,401. The

decrease was due to depreciation charge for the year.

1293. Current Assets reduced by 47.1% from GH¢702,706 in 2010 to

GH¢371,532 in 2011. This was mainly due to GH¢318,753 decrease in

cash equivalent representing 75.9%.

1294. Current Liabilities recorded a decrease of GH¢191,775 from

GH¢334,986 in 2010 to GH¢143,211 in 2011 representing 57.2%.



1295. The liquidity position as depicted by a current ratio of 2.6:1

(2010: 2.1:1) shows that the Institute can meet its short-term


MANAGEMENT ISSUE

Non-payment of Withholding Tax

1296. Contrary to the Internal Revenue Act 2000 (Act 592), we

observed that withholding taxes totaling GH¢4,839.06 were not

deducted from allowances paid to project staff who were engaged in

the training exercise. Below is a summary of the withholding tax:

Year Net Taxable Amount GH¢

Tax GH¢

2009 51,855.28 2,592.76

2010 11,370.00 568.50

2011 33,556.00 1,677.80

Total 96,781.28 4,839.06

1297. The Institute may be charged with penalty in addition to the

withholding taxes not deducted.

1298. We drew management’s attention that section 87 of the

Internal Revenue Service Act 592 requires withholding tax agents to

make payment of taxes withheld to the Commissioner of DTRD

within 15 days after the deductions.

1299. We recommended that the Institute must collect the tax from

the project staff and pay to the DTRD.




MINISTRY OF HEALTH

GHANA AIDS COMMISSION

Introduction

1301. This report relates to the audited accounts of the Ghana Aids

Commission (GAC) for the financial year ended 31 December, 2013.

Operational results

1302. Operations for the year ended with a surplus of US$672,420

in 2013 as against a surplus of US$1,770,230 in 2012, representing a

62.0% decline. Presented in Table 126 are the performance indicators

for the period.


2013 US$

2012 US$

%

Change

Receipts from Funding Partners (US/EU/Multilateral)

3,226,820 2,983,372 8.2

Government of Ghana (GoG) Counterpart Funds

9,604,443 9,212,770 4.3

Other Income 135,128 717,542 (81.2)

Total Income 12,966,391 12,913,684 0.4

Expenditure

Operating & Project Management Costs

5,392,528 5,592,996 (3.6)

Non-Expendable Equipment (PPE)

381,478 123,091 209.9



Disbursement to Sub-Projects 6,519,965 5,427,367 20.1


Excess Income over Expend. 672,420 1,770,230 (62.0)

1303. Total Income increased marginally by 0.4% from US$

12,913,684in 2012 to US$ 12,966,391 in 2013. Included in Total Income

are Receipts from Funding Partners which increased by 8.2% from

US$2,983,372 in 2012 to US$3,226,820 in 2013. Government of Ghana

Counterpart Funds released to the Commission also increased by

4.3% from US$9,212,770 in 2012 to US$9,604,443 in 2013.

1304. Total Expenditure increased by 10.3% to US$12,293,971 in

2013 from US$11,143,454 in 2012. The increment was mainly as a

result of a 209.9% increase in Non-Expendable Equipment (PPE)

from US$123,091 in 2012 to US$381,478 in 2013.

Financial position

1305. Table 127 shows the financial position of the Commission as

at 31 December, 2013.


2013 US$

2012 US$

% Change

Current Assets 5,244,260 4,663,799 12.4




1306. Current Assets which comprised Bank Balances, increased by

12.4% from US$4,663,799 in 2012 to US$5,244,260 in 2013. This was

mainly due to increases in bank balances of GoG Project Account



and Global Fund R8 (US$).

1307. Current Liabilities, however, decreased by 48.7% from

US$74,254 in 2012 to US$38,092 in 2013. The decrease was as a result

of reduction in Accounts Payable and Accruals.

1308. The Commission’s liquidity position as indicated by its

current ratio for the period 137.7:1(2012: 62.8:1) shows the

Commission’s ability to meet its short-term obligations as and when

they fall due.

GHANA AIDS COMMISSION – GLOBAL FUND ROUND 8

Introduction

1309. This report relates to the audited accounts of the Ghana Aids

Commission – Global Fund Round 8 (GFR8) for the financial year

ended 31 December, 2013.

Operational results

1310. Operations for the year ended with a surplus of US$431,335

in 2013 as against a surplus of US$413,219 in 2012, representing a

4.4% rise. Presented in Table 128 are the performance indicators for

the period.


2013

US$

2012

US$

%

Change

Receipts from Funding

Partners

2,659,392 2,397,617 10.9

Other Income 58,509 11,777 396.8

Total Income 2,717,901 2,409,394 12.8



Expenditure

Operating & Project

Management Costs (HQ)

794,755 1,267,632 (37.3)

Non-Expendable

Equipment (PPE)

48,551 2,381 1,939.1

Disbursement to Sub-

Projects

1,443,260 726,162 98.8


Excess Income over

Expenditure

431,335 413,219 4.4

1311. Total Income which comprised of receipts from Funding

Partners and Other Income increased by 12.8% from US$2,409,394 in

2012 to US$2,717,901 in 2013. This was due to 396.8% increment in

Other Income.

1312. Total Expenditure also increased to US$2,286,566 in 2013

from US$1,996,175 in 2012, representing a 14.5% rise. The increase

was mainly as a result of 1,939.1% increment in Non-Expendable

Equipment from US$2,381 in 2012 to US$48,551 in 2013.

Financial position

1313. Table 129 shows the financial position of the Commission as

at 31 December, 2013.

Table 129: Financial Position as at December 2013

2013

US$

2012

US$

%

Change

Current Assets 2,297,185 1,878,200 22.3






1314. Current Assets increased by 22.3% from US$1,878,200 in 2012

to US$2,297,185 in 2013. This was mainly due to 132.7% increase in

bank balances.

1315. Current Liabilities also increased by 149.2 % from US$8,381

in 2012 to US$20,884 in 2013. The increase was as a result of

additions to Accounts Payable and Accruals.

1316. The Commission’s liquidity position as indicated by its

current ratio for the period 110.0:1(2012: 224.1:1) shows that although

the Commission’s current ratio declined it still has the ability to meet

its short-term obligations as and when they fall due.

NATIONAL HEALTH INSURANCE AUTHORITY

Introduction

1317. This report relates to the audited Financial Statement of the

National Health Insurance Authority (NHIA) for the period January

2012 to 31 December 2013.

Operational results

1318. The Authority recorded a deficit of GH¢126,218,216 in 2013

as against a deficit of GH¢33,802,175 in 2012. This represented

273.4% decrease in performance over the period. The operational

performance for the year 2013 is detailed in Table 130.

Table 130: Income statement for 2012 and 2013

Income 2013

GH¢

2012

GH¢

%

Charge

Levies Income 830,685,740 715,125,758 16.2




IDA Funding 11,469,078 11,386,048 0.7

Premium Income 30,579,150 29,887,642 2.3

Other Income 1,203,201 327,182 276.0

Total Income 916,220,665 787,165,707 16.4

Expenditure

Direct Support to

Schemes

814,987,278 665,083,196 22.5

Support to Partner Inst. 31,113,125 74,789,318 (58.4)

Expenditure on IDA

Project

7,032,596 8,867,647 (20.7)

General & Admin

Expenses

150,913,122 61,850,933 114

Biometric Expenditure 38,392,760 10,376,788 270

Total Expenditure 1,042,438,881 820,967,882 27

Deficit 126,218,216 33,802,175 273.4


GH¢916,220,665 in 2013, representing a rise of 16.4%. The increase

was as a result of increases in all the revenue items with other

income, investment income and levies income being the major

contributors.

1320. Total Expenditure rose by 27% from GH¢820,967,882 in 2012

to GH¢1,042,438,881 in 2013. The increase was due to 270%, 144%

and 22.5% increase in Biometric Expenses, General & Administrative

Expenses and Direct Support to Schemes operations respectively

during the period.



Financial position

1321. Table 131 show the financial position of the Authority as at 31

December 2013

Table 131: Statement of financial position as at December 2013

1322. Non-Current Assets decreased marginally by 2.3% from

GH¢30,673,055 in 2012 to GH¢29,963,521 in 2013. This was mainly

due to depreciation charge for the year.

1323. Current Assets also decreased from GH¢550,560,588 in 2012

to GH¢529,070,589 in 2013, representing 3.9% decrease. The decrease

was mainly due to reduction in investment.

1324. The current ratio decreased marginally from 1.4:1 in 2012 to

1.1:1 in 2013 indicating that the Authority can barely meet its short-

term obligations when they fall due.

MANAGEMENT ISSUES

Significant deficit between growth in expenditure and income

1325. We noted that the year on year growth rate in expenditure of

2013

GH¢

2012

GH¢

%

Change


Current Assets 529,070,589 550,560,588 (3.9)



Net Assets 65,642,222 191,860,439 (65.8)




the Authority was significantly higher than the rate of growth in

income. Whiles income is growing at an average rate of 28% per

annum, expenditure is growing at an average rate of 45%.

1326. The increase in expense year on year is driven mainly by

increase in claim cost, largely influenced by utilization, increasing

tariffs and medicine prices.

1327. The foregoing situation poses a risk on the sustainability or

the going concern of the Scheme that is being managed by the

Authority. The possibility that the National Health Insurance

Scheme may not be able to fund its recurring costs from operational

revenue in the near future if this trend is not reversed immediately

cannot be ruled out.

1328. We recommended that the following measures be considered

in the Authority’s effort to address this risk:

i. Management should intensify cost curtailment and cost

containment measures so as to manage the operational costs of

running the Scheme.

ii. Alternatively, an additional funding source should be explored

to increase the revenue base of the Authority and;

iii. Management should take another look at the structural and

operational system of the National Health Insurance Scheme;

identify areas where there are inefficiencies and potential

leakages that might be contributing to the escalating costs.

1329. Management responded that it has adopted and continues to

adopt a number of cost curtailment and cost containment measure to



stem the tide of rising claims cost and other expenditures.

1330. These measures are:

Reformed the provider payment mechanism, by introducing

capitation in the primary health care module of the Scheme.

Zonal claims processing centre have been established in Tamale,

Kumasi, Cape Coast and Accra to inject efficiency in the

management and adjudication of provider claims.

Biometric system for membership registration to enhance data

integrity and to facilitate subscriber authentication at point of

access to health care has been introduced on pilot basis in 2014.

The NHIA has strengthened its collaboration with Ghana Health

Service to put in place measures to enforce prescribing levels as

stipulated in essential medicines list of the Ministry of Health.

Government indebtedness to the NHIA as at 31 December 2013 –

GH¢667,618,445

1331. Contrary to Section 52(a) of Act 852 we noted that the

Minister responsible for Finance failed to pay directly into the NHIA

Fund within thirty days after the collection of levies from the

Revenue collection agencies.

1332. Additionally, though the National Health Insurance Fund

was established, this account was operated by the Controller and

Accountant-General’s Department (CAGD) in contravention of the

provisions of Section 42(1) of Act 852. Disbursements from this

account were made by the Bank of Ghana based on instructions of

the CAGD. The Authority under the current arrangement only has

access to the portions of the Funds the CAGD has authorized the

Bank of Ghana to transfer to the Authority’s account.

1333. We further noted that, levies collected by the Ghana Revenue



Authority and SSNIT on behalf of the National Health Insurance

Authority/Scheme were deposited by these agencies into this

account and only ceded to the Authority upon the instructions of the

CAGD.

1334. This resulted in a total indebtedness of GH¢335,410,521 and

GH¢332,207,924 for 2012 and 2013 by the government to the

Authority.

1335. The situation appears inconsistent with the provisions of the

National Health Insurance Act, 2012 Act (852) which requires that

the National Health Insurance Fund be operated by the NHIA.

1336. We recommended that management liaises with the relevant

stakeholders to ensure that the account set up with Bank of Ghana

into which SSNIT and the Revenue Collection Agencies pay their

collection be operated by the NHIA in accordance with Section 42(1)

of the Act and not the CAGD. This will ensure that funds paid into

this account by the SSNIT and Revenue Collection Agencies are

immediately available to the NHIA who will be making

disbursement from the Fund.

1337. According to management, the Authority continues to liaise

with the Ministry of Finance (MoF), SSNIT, GRA, CAGD and BoG to

ensure prompt release of NHI levies to the Authority. Management

has also strengthened its monitoring and reporting system that

enables regular and prompt request for the release of funds by the

MoF and CAGD in accordance with the relevant provisions of NHIA

Act 852.

1338. In addition, releases from the levies accounts by the MoF has



improved over the years. The indebtedness in 2012 was 47% of total

levies collections, this dropped to 40% in 2013 and then to 25.4% in

2014. We expect a further decline in the indebtedness to the

Authority, considering the current trend of releases in 2015.

Failure of Ministry of Finance to absorb interest on loans -

GH¢49,753,222

1339. We noted that the NHIA has to raise bridging facility from

some commercial banks during the period under review to meet

claim payment obligation. This became necessary due to delays by

the Ministry of Finance and CAGD to release funds to the NHIA.

1340. The NHIA requested approval from the Ministry of Finance

to raise these facilities and also for the Ministry to bear the interest

and other charges associated with the borrowings. The Authority

received the approval from the Ministry to access the loans and also

the pledge to bear the interest and associated costs.

1341. We noted however that not all interest and related costs were

paid by the Ministry thus making the Authority incur interest

expense of GH¢49,753,222. Details are presented in Table 132.

Table 132: Interest on loans contracted

Description

Receivable from 2011MoF GH¢

2012 GH¢

2013 GH¢

Total GH¢

Access Bank loan Interest

399,699 9,708,033 325,475 10,433,207

Zenith Bank loan Interest

- 9,404,192 33,374,430 42,778,721

Access Bank 1,312,500 181,930 - 1,494,430



loan Fee

Zenith Bank loan Fee

- 1,750,000 3,781,515 5,531,515

Total Cost of Loan

1,712,199 21,044,155 37,481,420 60,237,774

Amount Paid by MoF

- (10,484,651) - (10,484,651)

Cost of Loan to NHIA

1,712,199 10,559,504 37,481,420 49,753,222

1342. Though the approval was received from the Ministry of

Finance for the loan to be contracted with the pledge to pay for the

cost of the loans, payments were not received in full to cover these

costs.

1343. The NHIA has to suffer additional expense of GH¢49,753,222

which contributed significantly to increase the overall deficit

position of the Authority.

1344. We recommended that the management of the Authority

work hand in hand with the Ministry of Finance and other

stakeholders to ensure that all parties honour their side of the

bargain. Additionally, management should ensure that remittances

are made to the NHIA promptly.

1345. According to management, NHIA liaised with Ministry of

Finance (MoF) for which the latter paid up some of the internal

expenses as agreed by the Ministry. Subsequently, a letter from the

MoF withdrew their consent to absorb further internal cost and

charges on the loan. The Authority had no option under the

circumstances but to decide to pay off the internal cost in order to



avoid punitive compound interest and penalty charges.

Late Payment of Statutory Deductions

1346. Contrary to Section 3(3 and 10) of the National Pensions Act,

2008 (Act 766), we noted that statutory deductions in respect of social

security and National Insurance Trust for the purposes of Tier 1 and

2 pensions of the staff of NHIA were not being paid on time. Details


Table 134: Non- management staff

Month Amount

Due

GH¢

Amount

Paid

GH¢

Date of

Payment

Due Date

for

Payment

Number

of Days

Overdue

June 67,024.08 67,024.08 01/08/2012 14/07/2012 18

July 66,552.725 66,552.725 28/08/2012 14/08/2012 14

October 137,669.44 137,669.44 19/02/2013 14/11/2012 97

November 386,013.51 386,013.51 19/03/2013 14/12/2012 95

December 397,351.22 397,351.22 02/04/2013 14/01/2013 78

1347. The late filing of returns and payments expose the

Authority’s management and directors to summary conviction to a

fine of two thousand penalty units or to a term of imprisonment for

two years or to both if section 3(10) of Act 766 is invoked.

1348. To minimize the risk of interest and penalties on late filing

and payments, the Authority should ensure that returns are filed

before the deadline and all required payment are made on a timely

basis.



1349. According to management, a new procedure in the SSNIT

contribution process require that the Authority submits contributors

report to SSNIT for the validation and approval, prior to the

Authority making payment for the contribution. The late payment

was due to delays in the receipt of contribution report from SSNIT

after validation and approval. The Authority will however endeavor

to comply with Section 3(3) of National Pensions Act, 2008 (Act 766).

Direct Payment to Suppliers on behalf of Partner Institutions

1350. Section 42(1) of the National Health Insurance Act, 2012 (Act

852) requires that the Authority shall allocate and disburse from the

Fund in order to achieve its objective of the Fund.

1351. We noted that as part of its budgeting process, the Authority

sets aside funds to support programmes and institutions referred in

the financial statements as support to partner institutions. These

amounts are approved by parliament for the specified projects as

part of the Authority’s allocation formulae for the year. Beyond

disbursement of these funds to the various institutions/entities, no

procedure is in place to ascertain whether the funds are being

applied for the intended purpose. The categories of expenses

incurred in the years under review are presented in Table 135.

Table 135: Support to partner institutions

Payees 2012

GH¢

2013

GH¢

Zoom Lion Ghana Limited 35,000.000 3,240,936

Better Ghana Management Service

Limited

20,860.000 -

Maripona Enterprise Limited - 3,171,566

Volta Impex Limited - 499,997



Plinliyamco Company Limited - 825,420

Total 55,860,000 7,737,919

1352. There is no reasonable assurance that the amounts paid in

respect of these projects were applied for the planned activity, more

so where there are private entities and other Institutions whose

accounts may not be audited by the Auditor-General. The Authority

may not also be entirely monitoring the use of funds disbursed from

National Health Insurance Fund.

1353. We recommended that the Authority institutes a mechanism

that allows them to receive feedback from implementing partners on

how the funds advanced to them have been used and also a progress

report on the various projects and programmes. We also

recommended that where a Partner Institution (such as the Ministry

of Health) is implementing a project on behalf of the Authority, all

transfers should be made to that Institution who would then take

responsibility for ensuring that the required goods/services have

been delivered after which payments can be made directly to the

service providers.

1354. According to management, transfers to partner institutions

(MoH) are done in accordance with approved NHIF allocation

formula. This is akin to the way approved allocations are transferred

from the consolidated Fund or Contingency Fund to governmental

institutions. Upon written directives from the MoH, The Authority

make transfers of MoH shares of the allocated funds to other

institutions on behalf of the Ministries.

1355. Once NHIA pay out these funds to institutions upon the



directives and instructions of MoH, the use of the funds are subject

to applicable laws on financial administration, procurement, and

audit of the MoH or the governmental institution. It is not the

primary responsibility of NHIA to monitor the usage of these funds

by the reviewing institutions.

Delay in liquidation of District Mutual Health Insurance Schemes

(DMHIS)

1356. Contrary to Section 112(1a) of the National Health Insurance

Act, 2012 Act 852t, we noted that though the revised National Health

Insurance Act was passed in October 2012, a key transitional

provision regarding the dissolution of the District Mutual Health

Insurance Schemes (DMHIS) which were hitherto operating as

companies limited by guarantee was not done as at December 2013.

1357. The situation was attributed to the bureaucratic nature of the

processes leading to the liquidation of these schemes. This resulted

in the NHIA operating under the old structure in 2013 even when

the new Act was supposed to have been effective. This has resulted

in the Authority not presenting consolidated financial statements

covering all the activities of the scheme as would have been done

under the new structure.

1358. We recommended that Management should intensify efforts

at fully integrating the activity of the DMHIS especially in the aspect

of financial reporting. This will involve a number of activities

including:

Reporting all revenues generated by the schemes (processing

fees) on the financial statements of the Authority.

Reporting all fixed assets and creditors carried in the books of



the individual schemes.

Building a reporting structure that will enable the Authority

identify and eliminate internal transactions between the schemes

and the Authority.

1359. Management in response said it could not present a

consolidated financial report for NHIS for the year 2013 because of

the delay in the dissolution of the 155 District Mutual Health

Insurance Schemes, and the transfer of their assets and liabilities to

the National Health Insurance Authority.

1360. The liquidation process was completed in November 2013

whilst the Authority obtained the vesting assent for the transfer of

the assets and liability of the dissolved DMHIS on 30th September

2015.

1361. Management is putting in place structures and systems to

integrate the financial systems of NHIA to facilitate the preparation

and presentation of a consolidated financial report on the activities

of the NHIS.

Differences between salary support received by Schemes and amount

transferred from NHIA- GH¢55,315.44

1362. We noted differences between amounts of salary support in

the books of the Authority and what was actually received by some

of the Schemes in respect of the 2012 financial year. Details are in

Table 136.



Table 136: Salary support received by the schemes

Authority Books GH¢

Schemes Books GH¢

Differences GH¢

Name of Schemes

31,766.07 10,456.14 21,309.93 East Mamprusi

55,627.64 37,793.97 17,833.67 Keta

63,224.47 47,052.63 16,171.84 Nzema East

150,618.18 95,302.74 55,315.44

1363. Differences between the two records cast significant doubt on

the completeness and accuracy of the information contained in the

financial statements.

1364. We recommended that management of the scheme should

liaise with the management of the Authority with the view to

establish causes of the difference to enable them rectify the anomaly.

1365. The management of the various Schemes explained that they

did not receive such transfers from National Health Insurance

Authority and noted our recommendation for implementation.

Difference between premium collected and premium banked-

GH¢23,887.90

1366. Contrary to Regulation 22(1) of FAR 2004, (LI 1802), we noted

differences between premium collections per cash book and the

amounts banked in two out of the Schemes visited. Table 137 shows

the details of the Schemes and the amount involved.



Table 137: Differences in amounts banked

Total

Premium

Collected

GH¢

Total

Premium

Banked

GH¢

Differences

GH¢

Name of

Schemes

1,173,954.00 1,169,475.00 4,479.00 Ga

132,829.40 113,420.50 19,408.90 Akatsi

Total 23,887.90

1367. We also noted at Asunafo North that 10% of the premium

collected between August 2012 to 31 December 2012 amounting to

GH¢7,417.00 was deducted as a commission before depositing the

balance into the bank account. The GH¢7,417.00 was paid into

administrative account maintained by the Scheme.

1368. This practice constitutes a breach of financial discipline as

defined in regulation 8(1) of FAR. There is also the risk of

misappropriation of cash if collections are not banked in gross and in

a timely manner.

1369. Management should ensure that all premiums collected are

paid in gross into the remittance account in a timely manner.

Management should also ensure that the amounts involved are

properly accounted for, failing which the receiving officers should be

made to refund the amount.

1370. This recommendation was noted by management for strict

implementation. The practice of paying 10% commission from

premium collection before banking has also stopped.



GCR’s booklets issued from Head Office not found in the books of

Builsa Health Insurance Scheme

1371. In contravention to Regulation 214(1) of FAR 2004, we noted

that eleven GCR booklets with serial numbers ranging from 1882901

to 1884000 were not found in the GCR register at Builsa National

Health Insurance Scheme.

1372. The above GCRs were transferred to the Scheme on the 27

November 2012 in lots of 80 booklets ranging from 1876001 to

1884000 as per the waybill and the transfer schedule from NHIA.

1373. No explanation was given for this anomaly. Funds generated

from the GCRs may not be easily tracked and accounted for.

1374. Ineffective controls of the management of the GCR booklets

create an opportunity for misappropriation of funds.

1375. We recommended that there should be timely review and

reconciliation between the GCR waybill and the GCR register to

ensure that all GCR received from head office have been properly

accounted for. Further, management should follow up on the

whereabouts of the 11 GCRs in question.

1376. Management noted our recommendation for compliance.

Unbanked Processing Fee

1377. Regulation 15(1) of FAR 2004 states “Any public officer or

revenue collector who collects or receives public and trust moneys

shall issue official receipt for and pay them into the relevant public

Fund Bank Account within twenty-four (24) hours of receipt except

in exceptional circumstances to be identified by the Minister”.



1378. We noted during a review of the Ga Mutual administrative

account bank reconciliation statements outstanding processing fee of

GH¢32,972.00 between January to March 2012 had not been banked

as at 31 December 2012. However, GH¢6,785.00 was refunded in

April 2013 leaving an outstanding balance of GH¢26,187.00, which

had still not been banked as at the year-end 2013 in contravention of

the above regulation. There is the risk of misappropriation of cash if

collections are not banked in a timely manner.

1379. Management should investigate and ensure that the funds

are paid back into the account of the Scheme. We are still awaiting

management response to this observation.

Differences between premium received in collection report and

control receipts issued for premium collected

1380. It is best practice that the total premium in the collection

report sent to NHIA should agree with all the total control receipts

issued for the premium collected.

1381. We noted that differences arose between the total control

receipt issued per premium collected and that of the premium

collection deposited in the sweeping account of NHIA as per

collection reports at Tamale Municipal Mutual Health Insurance

Scheme. Details presented in the Table below:



Year

Premium

Received Per

Collection Report

GH¢

Total Control

Receipt Issued for

Premium Collection

GH¢

Differences

GH¢

2012 185,012.00 83,430.00 101,582.00

2013 202,085.00 173,012.00 29,074.00

Total 130,656.00

1382. Management explained that this was due to absence of some

control receipts due to overcrowded store. This made it very difficult

to assess the completeness for control receipts issued for premium

collected.

1383. We recommended that management should retrieve the

control receipts to enable us confirm the completeness of the

Collection Report. Additionally, management should put in place

measures to forestall the recurrence of the above situation.

1384. Management in response promised to search for the other

issued control receipts which were not available at the time of the

audit to cover up the difference.

Claims payment not supported by signed vetting report or Memo-

GH¢213,799.28

1385. It is expected that all evidence of vetting in addition to the

authorization by the medical claims manager be attached to the

payment voucher for verification by the Accountant before payment

is made for any medical claims.

1386. During our review of medical claims paid in 2012 and 2013 at

East Gonja District, Mfantsiman and West Mamprusi District, we



could not obtain evidence of vetting report by the medical claims

manager for selected medical claims totaling GH¢213,799.28

examined.

1387. Management explained that the problem arose during the

period when new claim officers were appointed and transferred

from Tamale who had little knowledge on claims; coupled with an

oversight due to high volumes of claims to be vetted and the urgency

with which claims need to be vetted and providers paid.

A sample of these exceptions are highlighted in Table 138 below.

Date Facility P.V.

No.

Amount

GH¢

Remarks

6/05/2013 Regent

Medical

Diagnosti

c Centre

24/05 4,655.56 Mfantei

man

23/12/201

3

Regent

Medical

Diagnosti

c Centre

22/12 4,353.41 “

23/12/201

3

Otuam

Health

Centre

19/12 6,830.30 “

15/08/201

3

Buya

H.C/

Kitore

Clinic-

Drugs

33 80,852.68 East

Gonja

22/10/201 Lonto 21 24,346.29 “



3 clinic -

drugs

15/03/201

3

Kpandai

District

Hospital –

drugs

2 46,226.06 “

01/03/201

2

Kubore

Health

centre

949471 3,731.27 West

Mampru

si

17/12/201

2

Jamga

polyclinic

949610 39,152.47 “

01/08/201

2

KpsEnkpe

Health

Centre

949472 3,651.24 “

Total 213,799.28

1388. The NHIA risks making payments for medical claims that

cannot be substantiated leading to financial loss or wrong payments.

1389. We recommended that vetting reports by the Claims

Department should be attached to the payment Voucher for review

by the Accounts Department before authorization and approval by

the Scheme manager. Management should provide the necessary

supporting documents to authenticate the payment of

GH¢213,799.28 failing which the approving officer should be held

liable.

1390. Management noted our recommendation for compliance.



FOOD & DRUGS AUTHORITY

Introduction

1391. This report relates to the audited accounts of the Food &

Drugs Authority for the period 1 January 2012 to 31 December 2013

Operational results

1392. The year 2013 ended with operational surplus of

GH¢5,573,089 representing 778.6% increase of the previous year’s

deficit of GH¢821,234. The performance indicators for the year are

shown in the Table 139 below:


Income

2013

GH¢

2012

GH¢

%

Change

Govt. Subvention 11,504,071 10,716,420 7.3


Foreign currency

conversion gain

165,432 1,294,122 (87.2)

Total Income 32,778,491 26,082,836 25.7

Expenditure

Personal Emoluments 11,504,071 10,714,687 7.4

Service Expenditure 5,249,847 6,344,205 (17.2)

Administration

Expenditure

10,451,485 9,845,178 6.2


Surplus/(Deficit) 5,573,088 (821,234) (778.6)

1393. Total income registered an increase of 25.7%, from


mainly due to the increases in the Internally Generated fund (IGF)

from GH¢14,072,294 in 2012 to GH¢21,108,988 in 2013, representing



50.0%.

1394. Total Expenditure also went up marginally by 1.1% from

GH¢26,904,070 in 2012 to GH¢27,205,403 in 2013. Even though

expenditure on Personal Emoluments and Administration went up

by 7.4% and 6.2% respectively, expenditure on Service Activity

decreased by 17.2%.

Financial position

1395. The authority’s financial position as at 31 December 2013 is

shown in the Table 140 below.

Items

2013

GH¢

201

GH¢

%

Change

Non-current

Assets

12,075,469 11,374,755 6.2

Current Assets 8,198,649 3,269,418 150.8


Net Current

Assets

8,035,930 3,163,555 154

Net Asset 20,111,399 14,538,310 38.3

Liquidity Ratio 50.4:1 30.9:1

1396. Non-current Assets increase by GH¢700,714 or 6.2% in 2013.

This was mainly due to the acquisition of new assets.

1397. Current Assets went up by 150.8%, from GH¢3,269,418 in

2012 to GH¢8,198,649 in 2013. This was as a result of increase in both

the Accounts Receivable by 140.7%, from GH¢39,981 in 2012 to

GH¢602,581 in 2013 and bank Balance by 135% from GH¢3,229,437 in

2012 to GH¢7,596,067 in 2013. The increase in the Accounts

Receivable was due to the Ministry of Health and GETFund



indebtedness of GH¢400,000 and GH¢159,242 respectively to the

Authority.

1398. Current Liabilities recorded an increase of 53.7%, from

GH¢105,863 in 2012 to GH¢162,719 in 2013. The rise was due to

accumulation of withholding tax not promptly remitted to the

Commissioner.

1399. The liquidity ratio as measured by a current ratio of 50.4:1 in

2013 and 30.9:1 in 2012 financial years indicates the ability of the

Authority to meet its short term debts as and when they fall due.

MANAGEMENT ISSUES

Unearned salary – GH¢1,341.96

1400. Our examination of the mechanized salary voucher disclosed

that Mr. Kelvin Kute, a former employee of the Authority whose

appointment was terminated on 1 August 2013 was erroneously paid

one month salary of GH¢1,341.96 after his exit in violation of

Regulation 297 of the Financial Administration Regulation (FAR),

2004.

1401. Though the Accountant promptly submitted the relevant

inputs to the Controller and Accountant-General’s Department for

the deletion of his name , the Department delayed in the deletion of

the said officer’s name resulting in the payment of unearned salary

of GH¢1,341.96. The lapse could also be attributed to management’s

failure to as well inform his bankers for the stoppage of the payment

of his salary.

1402. We recommended and management accepted to contact the



bankers of the former employee to refund the amount to chest if not

withdrawn or else the former employee would be traced and the

amount recovered and paid to chest.

No Title deeds for landed property

1403. We visited the Authority’s Zonal Office at Tamale and noted

during our audit that the Authority did not have title deeds for the

Zonal Officer’s residence.

1404. In our view, the absence of title deeds to cover the

Authority’s property exposes it to unnecessary litigation in the

future.

1405. To avoid the loss of its property, we recommended that as a

matter of urgency, immediate action should be taken to obtain title

deeds for the property.

PHARMACY COUNCIL

Introduction

1406. This report relates to the audited accounts of the Pharmacy

Council for the year 31 December 2014.

Operational results

1407. The operations of the Council resulted in a surplus of

GH¢1,290,020.55 in the year under review as against a deficit of

GH¢8,914.90 in the previous year. A summary of the income and

expenditure account for the year reviewed is shown below.




Income 2014

GH¢

2013

GH¢

%

Change

Internally Generated Fund 5,257,620.50 1,652,255.50 218.2

Government Subvention 1,383,881.71 1,254,797.80 10.3

Donor Fund 365,580.00 443,604.00 (17.6)

Total 7,007,082.21 3,350,657.30 109.1

Expenditure

Employee Compensation 1,726,534.71 1,491,161.80 15.8

Goods and Services 2,619,941.04 1,788,732.00 46.5

Assets 1,370,585.91 79,678.40 1,620.15

Total 5,717,061.66 3,359,572.20 70.2

Excess

Expenditure/Income

1,290,020.55 (8,914.90) (14,570.4)

1408. Total Income for the year increased from GH¢3,350,657.30 in

2013 to GH¢7,007,082.21 in 2014 representing 109.1% rise over the

previous year’s income. Government Subvention which represented

19.7% of total income increased marginally from GH¢1,254,797.80 in

2013 to GH¢1,383,881.71 in 2014 which is 10.3% increase over the

previous year’s figure.

1409. Internally Generated Fund (IGF) which accounted for 75.1%

of the total income, increased significantly from GH¢1,652,255.50 in

2013 to GH¢5,257,620.50 in 2014 representing a 218% increase over

the previous year. This was due to increase in the receipt for

Renewal fees for Pharmacies, Licensed Chemical Sellers (LCS),

Processing fees for Pharmacies, and Disciplinary Committees Fees.

However, Donor Fund which represented 5.3% of total income

rather decreased by 17.6% from GH¢443,604.00 in 2013 to

GH¢365,580.00 in 2014.



1410. Total Expenditure increased by 70.2% from GH¢3,359,572.20

in 2013 to GH¢5,717,061.66 in 2012. Compensation for employees,

Goods and Services and Assets increased by 15.8%, 46.5% and

1,620.15% respectively. Increase in staff salaries and Committee of

Council Allowance accounted for the increase in compensation of

employees.

1411. The rise in the Use of Goods and Services could be attributed

to the increase in cost of Printed Materials and Stationery, cleaning

materials, Fuel and lubricants and Maintenance and repairs-official.

1412. Assets increased significantly by 1,620.15% from

GH¢79,678.40 in 2013 to GH¢1,370,585.91 in 2014 due to purchase of

vehicles, Plant and Equipment, Computer Software and Furniture

and Fittings.

Financial position

2014

GH¢

2013

GH¢

%

Change

Current Assets 1,424,601.92 109,275.92 1,203.7

Current Liabilities 41,986.20 16,680.75 151.7

Net Assets 1,382,615.72 92,595.17 1.393.2

1413. The Council’s Current Assets increased significantly by

1,203.7% from GH¢109,275.92 in 2013 to GH¢1,424,601.92 in 2014.

This was mainly due to increase in Bank balances during the year

under review.

1414. Current Liabilities increased to GH¢41,986.20 in 2014 and this



represented a 151% rise over the amount of GH¢16,680.75 for 2013.

An increase in the National Drug Information Research Centre

(NDIRC) liabilities accounted for the increase.

1415. The Council’s Current liquidity ratio of 33.9:1 as at the end of

2014 indicates that the Council would be able to meet its Current

liabilities as and when they fall due.

1416. The Council’s Fund balance also increased by 1,393.2% from

GH¢92,595.17 in 2013 to GH¢1,382,615.72 in 2014. This could be

attributed to the surplus of GH¢1,290,020.55 in the income statement

for the year ended December, 2014.

MANAGEMENT ISSUES

Unearned Salary – GH¢1,857.74

1417. Contrary to Regulation 298 of the FAR, 2004 L.I. 1802 we

noted during our review of payroll of the Pharmacy Council for the

year under review that, two separated officers were still earning

their salary, hence accumulating a total unearned salary of

GH¢1,857.74. Details provided below:

Separated Staff

Name of staff Post Date of Separation

Date of last Salary

Unearned Salary GH¢

Type of

Separati

on

Jacob Tawiah Messenger

6/13 9/13 1,445.40 Retirem

ent

Comfort Kokroko

Data Entry

6/2012 8/12 412.34 Resignat



Clerk ion

Total 1,857.74

1418. The occurrence was due to management’s failure to inform

the Controller and Accountant-General, as well as notifying their

bankers to stop the payment of their salaries immediately the above

officers were separated.

1419. This negligence of duty on the part of the Accountant has led

to the state losing scarce resources which could be channelled into

developmental projects.

1420. We recommended that management trace the above officers

to recover the amount from them and lodged into the consolidated

fund failing which the Accountant should be held liable for the

refund.

1421. Management in response stated that though Controller and

Accountant-General’s Department was informed of the deletion,

they could not detect their names were not deleted until two or more

months when they received the pay slips. Meanwhile management is

making every effort to recover the unearned salary.

Demand for the Payment of Compensation of GH¢61,448.00

1422. Our review of the personal files of separated officers revealed

that, Madam Marian Torjagbo, an Inspecting Pharmacist resigned

from the Council on November 2013 although management declined

her request.

1423. Our further investigation revealed that, she was on study

leave with pay for three years [from July 2010 to September 2013] to



pursue her Master Degree in Public Health Information at Emory

University, Atlanta, Georgia, USA and resigned immediately after

her course.

1424. Her action violates the terms of the bond signed on the 7 July

2010, which required her to serve the Council for five years after

completion or in breach refund the compensation paid her during

the period of her study with five percent interest.

1425. Our discussions with the Administrator disclosed that

management’s efforts to get her fulfill her part of the agreement

internally yielded no results.

1426. Consequently, the case was referred to the Council’s Lawyer

to follow up to ensure that the amount was retrieved. This was after

management’s last letter dated 14 April, 2014 headed ‘Demand for

the Payment of Compensation of GH¢61,448’ by GOH Associates

which we sighted on her file.

Details of the amount per management’s calculation

Marian Torjagbo Unearned Salary [GH¢61,448.00]

Details Month Number

of

Months

Amount

GH¢

Salary Aug. to Dec. 2010 5 5,232.00

Salary Jan. to Dec. 2011 12 15,010.00

Salary Jan to Dec. 2012 12 18,172.00

Salary Jan. to Dec. 2013 9 15,075.00

Salary Jan. to March. 2014 3 5,025.00

Interest 2,926.00

Total 61,448.00



1427. We urged management to continue to pursue the matter and

recover the GH¢61,448.00 to Government chest without delay.

GHANA COLLEGE OF PHYSICIANS & SURGEONS

Introduction


College of Physicians & Surgeons for the period 1 January 2013 to 31

December 2014

Operational results

1429. The College ended the financial year with a surplus income

of GH¢1,662,339.89 as compared with GH¢2,152,331.45 in 2013. A

summary of the Income and Expenditure for the year is as follows:

Income Statements for the years 2013 and 2014

Income 2014

GH¢

2013

GH¢

%

Change

Subvention 378,485.03 789,397.99 (52)

Other Income 4,072,981.12 3,410,651.39 19.4

Total Income 4,451,466.15 4,200,049.38 6

Expenditure

Employee Compensation 378,485.09 521,943.37 (27.5)

Goods & Services 2,410,641.22 1,525,774.56 58


Surplus 1,662,339.89 2,152,331.45 (22.8)

1430. Total Income for the College increased by GH¢251,416.77

representing 6% from GH¢4,200,049.38 in 2013 to GH¢4,451,466.15 in

2014. The increase was largely due to a rise in other income by

GH¢662,329.73 representing 19.4% from GH¢3,410,651.39 in 2013 to



GH¢4,072,981.12 in 2014, although Government Subvention reduced

by GH¢410,912.96 from GH¢789,397.99 in 2013 to GH¢378,485.03 in

2014.

1431. Total Expenditure of the College increased by GH¢741,408.33

representing 36.2% from GH¢2,047,717.92 in 2013 to GH¢2,789,126.25

in 2014. An increase in Training Seminars and Conference cost of

GH¢265,618.72 representing 49.4% from GH¢537,388.07 in 2013 to

GH¢803,006.79 in 2014 accounted for the above increase in Total

Expenditure in 2014.

1432. The College did not acquire nor dispose off any of its Fixed

Assets in the year under review The decrease in Fixed Assets by

GH¢84,360.29 was due to the depreciation charged in 2014.

Financial position

1433. Current Assets increased by GH¢1,735,115.21 representing

47.3% from GH¢3,667,715.98 in 2013 to GH¢5,402,831.19 in 2014. The

increase was due to a higher exchange rate used to convert the

College’s Forex Bank Account balance due to the depreciation of the

cedi against the dollar in 2014.

1434. Current Liabilities of the College decreased by GH¢11,584.97

representing 63.7% from GH¢18,174.980 in 2013 to GH¢6,589.93 in

2014.

1435. The Current ratio of 820:1 as at the end of the year indicates

that the Board would be able to meet its current liabilities when they

fell due.



MANAGEMENT ISSUES

Unapproved Salary Related Allowances GH¢507,240.95

1436. Contrary to Regulation (5a & c) of the Retention of Funds

Act, 2007 (Act 735), our examination of records revealed that, in

addition to the monthly Single Spine Salaries paid by Controller and

Accountant-General’s Department (CAGD) on the mechanized

payment vouchers, management paid salary related allowances of

GH¢507,240.95 from their IGF by manual payment vouchers to the

staff, without seeking approval from the Minister of Finance.

1437. Moreover, we observed that the allowances paid; such as

housing and entertainment among others, were allowances already

incorporated into the single spine salary structure and therefore

prohibited. Besides they were not included in the IGF budget for

Parliamentary approval.

1438. In a related development we noted that the Council

approved proposals by a Committee to equate the conditions of

service of the Rector to that of a Vice Chancellor of a public

University and also upgrade the allowances of the staff without

authority/approval from the Minister of Finance.

1439. The above irregularity could be attributed to management’s

disregard for procedures set out in the regulation in the payment of

salary increase and related allowances.

1440. The payment of unapproved allowances resulted in

misapplication of the funds of the College leading to loss of funds to

the state.



1441. We recommended that management should seek proper

authority/approval for any upward adjustment in

salary/allowances from the Minister of Finance or should

immediately stop the practice, recover the illegitimate amount of

GH¢507,240.95, pay same into the College account and our office

duly informed for verification.

1442. In response, management stated that Section 47(3) of the Act

that established the College mandates the Council of the College to

employ the required people on terms and conditions that it considers

appropriate. Management also stated that the College is an Agency

under the Ministry of Health so receive directives from the Ministry

of Health. Ministry of Health has provided approvals for these

salary related allowances to be paid and that notwithstanding, they

will pursue a Ministry of Finance approval through the Ministry of

Health.

1443. At the instance of the audit management obtain approval

from the Minister of Finance to allow the expenditure stand charged,

however the approval was devoid of the type of allowances to be

paid which is not the normal practice at the Ministry. We reiterate

that the allowances paid on the manual vouchers are already built-

in in the single spine salary and therefore the practice must be

stopped and proper clarification sort with the Fair Wages

Commission.

NURSING & MIDWIFERY COUNCIL

Introduction

1444. This report relates to the audited accounts of the Nursing &

Midwifery Council for the period 1 January 2012 to 31 December



2014

Operational results

1445. The Nursing and Midwifery Council recorded an income

surplus of GH¢1,448,500.61 for the financial year ending 31

December 2014. An increase of GH¢651,505.40 from GH¢796,995.21

in 2013 to GH¢1,448,500.61 in 2014 representing 81.7%.

Income 2014

GH¢

2013

GH¢

%

Change

Subvention 1,173,816.31 877,922.82 33.7

IGF + Interest Received 8,837,305.33 7,997,976.11 10.5

Total Income 10,011,121.64 8,875,898.93 12.8

Expenditure

Compensation of Employees 1,083,103.82 964,334.34 12.3

Goods & Services (Admin.

Activities)

3,370,424.46 2,662,425.87 26.6

Goods & Services (Service

Activities)

4,109,092.75 4,452,143.51 7.7

Total Expenditure 8,562,621.03 8,078,903.72 6

Income surplus/Deficit 1,448,500.61 796,995.21 81.7

1446. Subvention for the year under review increased by

GH¢295,893.49 from GH¢877,922.82 in 2013 to GH¢1,173,816.31 in

2014 representing 33.7%, this was owing to the general upward

adjustment in employees’ compensation for the financial year ended

2014 and also an increase in contact staff.



1447. Internally Generated fund (IGF) plus interest received

increased to GH¢8,837,305.33 in 2014 from GH¢7,997,976.11 in 2013

representing 10.7% this was due to the upward adjustment in fees.

1448. Total Income increased by GH¢1,135,222.71 from

GH¢8,875,898.93 in 2013 to GH¢10,011,121.64 in 2014 representing

12.8%.

1449. The Council’s total expenditure increased by GH¢483,717.31

from GH¢8,078,903.72 in 2013 to GH¢8,562,621.03 in 2014

representing 6%. Significant amongst them was office

accommodation which increased by GH¢165,093.87 from

GH¢23,490.85 in 2013 to GH¢188,584.72 in 2014 representing 702.8%.

This was largely due to the opening of five (5) additional zonal

offices in the regions.

Financial position

1450. Non-Current Fixed Assets increased by GH¢3,425,461.14

from GH¢2,397,288.94 in 2013 to GH¢5,822,750.08 in 2014

representing 142.9%. This was as a result of addition of assets

procured in the year under review.

1451. The Council’s current ratio of 157.1:1 is significant to take

care of obligations when they fall due.

MANAGEMENT ISSUES

Failure to account for revenue collected at the Western Regional

Office – GH¢96,882.00

1452. Regulation 15 of the FAR, 2004 (L.I. 1802) states that, “any

public officer or revenue collector who collects or receives public



funds shall issue official receipts 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.”

1453. In spite of the aforementioned Regulation, we noted during

our verification exercise in the Western Regional Office that, the

Regional Accountant failed to fully account for revenue collected

amounting to GH¢115,882.00 for the period May 2013 to December

2014. Whilst in some instances, some leaflets of the pay-in-slip

alleged to have been used for depositing money at the Bank did not

bear the certified official stamp of the Bank of Ghana, hence did not

reflect in the Bank of Ghana statement, others too were not lodged.

1454. Management intimated that the case had been referred to the

Criminal Investigation Department (C.I.D) of the Ghana Police

Service.

1455. Inadequate internal controls over collection of revenue

coupled with poor managerial supervision over the Regional

Accountant’s work led to this anomaly.

1456. The Accountant’s failure to lodge in full revenue collected

denied the Council the needed funds to operate effectively.

1457. We recommended to Management to pursue the case to

ensure that the money is recovered from the Accountant. In future,

management should strictly enforce the provisions in the Regulation.

Management should subsequently inform our office on the status of

the police investigations.



1458. Management responded that its Internal Audit unit first

uncovered the fraud and currently waiting for the report from the

police to know the status of the case.

1459. Management stated further that Mr. Gilbert Addison the

former Western Regional Accountant had made part payment of

GH¢19,000.00 to the Fraud Unit of the CID of the Police

Headquarters. The amount had since been paid to NMC, official

receipt issued and verified. The balance amounting to GH¢96,882.00

is yet to be recovered. The Controller and Accountant-General’s

Department has dismissed Mr. Gilbert Addison.

1460. We reiterate our earlier recommendation.

Revenue not lodged in full – GH¢145,031.50

1461. Regulation 18 of the FAR 2004 states that, “department that

has legislative approval to retain all or a portion of Internally

Generated Funds collected, must first lodge the retained Internally

Generated Funds in gross into the Department’s Operational Bank

Account designated by the Controller and Accountant-General

before disbursements are made.”

1462. A further review of the operations of other NMC Regional

Offices revealed that, four out of the remaining nine Regional

Accountants did not also lodge in full revenue collected amounting

to GH¢145,031.50. Details are as shown below.



Revenue not lodged in full – GH¢145,031.50

Total

Receipt

Total

Transfer to

BOG

Diff. In

Receipt/Over

transfer to

BOG

Amount

Refunded

GH¢

Amount

not

Refunded

GH¢

Cape

Coast

279,950.00

276,428.00

3,522.00 Nil

3,522.00

Kumasi

1,241,137.00

1,073,641.50

151,889.50 70,240.00

81,649.50

Ho

382,240.00

317,770.00

64,655.00 9,550.00

55,105.00

Bolga

171,335.00

166,580.00

4,755.00 Nil

4,755.00

Total 2,074,662.00 1,834,419.50 224,821.50 79,790.00 145,031.50

1463. We observed that the Accountants were authorized to

procure value books from the Regional Controller and Accountant-

General office or the Ministry of Health Regional Office and issue

them to themselves. This made it possible for them to suppress GCRs

used in collecting revenue. Poor supervision and ineffective financial

controls on the part of management also contributed to the

irregularity.

1464. The Regional Accountants’ failure to lodge revenue collected

in full resulted in suppression of revenue collected and had denied

the Council of funds needed for its operations.

1465. We recommended to Management to strictly ensure that all

Regional Officers enforce the lodgment of revenue collected in full

within the stated twenty-four hours by the Accountants to avert the

recurrence of the situation. Additionally, we recommended that



procurement of GCRs should be made at Headquarters for

distribution to the Regions.

1466. Management should also establish a monitoring mechanism

to supervise the collection of revenue and reconcile the respective

pay-in-slips with the cash book entries to ensure moneys collected

have been fully banked. Meanwhile disciplinary action should be

taken against the Accountants involved to serve as a deterrent to

others.

1467. Management acknowledged the recommendation for

compliance, and stated that, they have given the Accountants two

weeks to lodge the total amount of GH¢224.821.50 and submit the

paying-in-slips for verification. The Accountants have refunded

GH¢79,790.00 and promised to refund the remaining amount of

GH¢145,031.50 within 30 days. At the instance of the audit team,

Management directed that all Internally Generated Funds (IGF)

should be made in Bankers Draft only.

Pre-financing of Contract – GH¢350,000.00

1468. Section 16(1) of the Financial Administrative Act 2003, Act

654, requires 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 the head of

department certifies that work has been performed, goods supplied

or services rendered and the services rendered and the price charged

is according to the contract.

1469. On the contrary, we noted during our audit that, Nursing

and Midwifery Council contracted Okore Technologies to supply

Office furniture and paid him GH¢350,000.00 representing 50% of



the contract sum as mobilization. A further review of the contract

agreement revealed that this arrangement was not part of the terms

of the Contract. Details of the transaction provided below.

Date P.

V.

No.

Cheque

No.

Amount

GH¢

Payee Purpose

7/3/14 1861409 299861 350,000.00 Okore

Technologies

Payment

of 50% of

the Invest-

ment

contract

sum as

advanced

mobilizati

on for the

supply of

Office

Furniture.

1470. Management’s disregard for the contract terms and the above

regulation contributed to this anomaly.

1471. We urged management to ensure full compliance of the FAR

and to discontinue this practice in future transactions.

1472. Management responded that, after awarding the contract for

the supply of furniture within six months, the contractor of the office

complex at one of their site meeting in December 2014 said he would

finish and hand over the building in March 2015.



1473. Management therefore took emergency decision to advance

the furniture supplier 50% of the contract sum to enable him execute

the supply ahead of the agreed date for early relocation. Also

management accepted the audit recommendation for compliance in

future transactions.

Non- Competitive Tendering

1474. Section 35(1) of the Public Procurement Act (PPA), 20 (Act

663) states that ‘A procurement entity shall procure goods, services

or works by competitive tendering except as provided in this part’

1475. Contrarily, we noted that the Council engaged the service of

Kanakgold Information Technologies Ltd to supply three pieces of

cannon IR4045 photo copiers amounting to GH¢123,994.00 in 2014

without competitive tendering.

1476. Non-adherence to the Procurement Act resulted in this

anomaly.

1477. In this regard, we could not authenticate the credibility and

competitiveness of the transaction and whether value for money was

obtained.

1478. We therefore, recommended to Management to ensure that

PPA is followed to the letter. We also advised that management

organize refresher course for the Procurement Unit.

1479. Management responded that, they have arranged training

program to build the capacity of their procurement officers.



Violation of Procurement Act – GH¢420,328.00

1480. Section 21(5) of the Public Procurement Act(PPA) 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 for public procurement in this Act’. A

contract above a stipulated sum of GH¢5,000.00 should be packaged

and advertised in a manner that will ensure full participating of

interested bidders in the procurement procedures.

1481. Contrary to the above regulation our audit review revealed

that, a contract for the purchase of stationery amounting to

GH¢420,328 was fragmented into five different lots in circumvention

of the Procurement Act and awarded to five different contractors as

shown in Table 142 below:

Table 142: Violation of Procurement Act – GH¢420,328.00

Date P. V. No.

Cheque No.

Amount GH¢

Payee

25/2/14 1861775 299826 15,266.40 IT Market Ltd.

25/2/14 1861775 299829 20,250.00 Minipack Press

25/2/14 1861777 299830 18,900.00 Yamens Press

11/6/14 1861605 764579 17,100.00 Technic Channel

11/6/14 1861603 764577 19,012.00 Technic Channel

11/6/14 1861605 764573 15,300.00 Technic Channel

23/7/14 1861685 764752 22,500.00 Alexfos Enterprise

23/7/14 1861684 764751 21,600.00 Minipack Press

23/7/14 1861688 764755 14,400.00 Minipack Press

23/7/14 1861686 764753 18,000.00 Minipack Press


21/8/14 1862063 764851 28,125.00 Yamens Press

21/8/14 1862062 764852 30,375.00 Minipack Press

21/8/14 1862075 764842 22,420.00 IT Market Ltd.

21/8/14 1862077 764844 20,750.00 IT Market Ltd.



21/8/14 1862076 764841 23,900.00 IT Market Ltd.

5/9/14 1862134 765036 28,125.00 Yamens Press


5/9/14 1862135 765037 28,125.00 Minipack Press

Total 420,328.00

1482. This contravenes the section of the PPA as stated above.

Furthermore, this was done to avoid the process of competitive

bidding as required by the Act.

1483. Control Process being deliberately circumvented by

management in our view, led to this omission. We could not vouch

for the transparency or otherwise of these transactions.

1484. We recommended to management to obey the dictates of the

Act to avoid recurrence in all future dealings.

1485. Management responded that Nursing and Midwifery

Council of Ghana conducts Examinations five times in a year, so

procures materials for the examination. However due to the nature

of their old head office being just by the sea and their inadequate

storage space, it was not convenient to procure the examination

materials in bulk to mitigate wastage.



MINISTRY OF TRANSPORTATION

GHANA RAILWAY DEVELOPMENT AUTHORITY

Introduction


Ghana Railway Development Authority for the period January 2010

to December 2013.

Operational results

1487. The Authority declared a surplus of GH¢33,408,050 in 2013 as

against a surplus of GH¢57,021,025 in 2012, representing a decrease

of 41.4% or GH¢23,612,975. The performance indicators are shown

in Table 143.

Table 143: The statement of comprehensive income for the year 2013

Income

2013

GH¢

2012

GH¢

%

Change

Government Grant &

Subventions

36,620,629 59,446,156 (38.4)

Other Income 98,700 106,893 (7.7)

Total Income 36,719,329 59,553,049 (38.3)

Expenditure


Expenses

3,311,279 2,532,024 30.8


Surplus 33,408,050 57,021,025 (41.4)


to GH¢36,719,329 in 2013. The main source of income for the

Authority which is grant received decreased by 39.4%, and this

accounted for the decrease in total income.




2012 to GH¢3,311,279 in 2013. This was as a result of a 1409.5% rise

in seminars and conferences, and 539.4% rise in Legal Fees.

Financial position

1490. A summary of the Authority’s financial position as at 31


Table 144: Statement of financial position as at 31 December 2013

2013 GH¢

2012 GH¢

% Changes

Non-Current Assets

90,660,434 57,326,144 58.2

Current Assets 602,873 464,567 29.8


Non-Current Liabilities

100,000 100,000 -

Net Current Assets

403,288 329,527 22.4

Net Assets 90,963,722 57,555,671 58.0



in 2012 to GH¢90,660,434 in 2013.Advance payment to Amandi

Holdings in respect of Capital Work-in-Progress for construction of

rolling stock and additions to Railway Infrastructure accounted for

the increase.

1492. Current Assets also showed an increase of 29.8% from



GH¢464,567 in 2012 to GH¢602,873 in 2013. This rise was mainly due

to 238.1% and 19.8% increases in Accounts Receivable and Bank and

Cash balances respectively.

1493. Current Liabilities also went up from GH¢135,040 in 2012 to

GH¢199,585 in 2013, representing 47.8% which was attributed to

increases in unclaimed Board Allowances.

1494. Current Ratio of the Authority declined marginally from 3.4:1

in 2012 to 3.0:1 in 2013.

1495. Despite the decline, it still showed that the authority has the

ability to discharge its short-term obligations as and when they fall

due.

MANAGEMENT ISSUES

Failure to take over assets and liabilities of G.R.C.L.

1496. Section 32(1) of the Railway Act 2008 (Act 779) stipulates that

on commencement of operations of the Ghana Railway Development

Authority (GRDA) assets belonging to the Ghana Railway Company

Limited (GRCL) shall be vested in the Authority. Again under

Section 33(1) “the liabilities incurred by or any of its predecessors to

any person before coming into force of this Act are assumed by the

Authority subject to the right to transfer those liabilities or any

portion of them to any party who has entered into a contract or other

transaction with the Authority”. Our audit disclosed that the

Authority had not taken over any assets or liability of the GRCL.

1497. Management’s action defeats the basic motive for

establishment of the GRDA as their refusal in taking-over the assets

could worsen the condition of the asset. Liabilities could also



increase as failing to honour obligations could attract interest.

1498. We recommended that the board of GRDA through the sector

Ministry collaborate with the board of GRCL for implementation of

all aspects of the Act.

1499. Management in response stated that inventory of assets and

liabilities are currently on-going.

Railway Development Fund

1500. Section 22-25 of the Railway Act 2008, (Act 779) states “there

shall be established under this Act a Railway Development Fund”

Section 24 further states the sources of the Fund which among other

things includes.

- Levies approved by Parliament

- Proceeds received by the Authority from investments

- Loans granted for the purposes of the Fund

- Moneys provided by the Minister for Finance with the approval of

Parliament for the Fund or for a specific project under the Fund.

Etc.

1501. Since the coming into force of the Act, amounts transferred

into the Fund were from only sale of Tender Documents for the years

2010, 2012 and 2013 which amounted to GH¢205,993.15 as at the end

of 31 December 2012. No Fund Management committee has also

been appointed in accordance with section 25(1-4).

1502. The sustainability of the Fund is very risky by depending

solely on income from proceeds of sales of tender documents as

there was no sale in 2013 and this income source is not sufficient.



Also there is no proper administration and management of the Fund

due to absence of management committee.

1503. The board should ensure that a Fund management

committee is set up. Whiles waiting for the setting up of the

management committee, the funds should be invested in either fixed

deposit or treasury bills whichever is better.

1504. According to management the Authority has now received

all nominees of the committee, and plans are in place for

inauguration during the year 2015.

GHANA CIVIL AVIATION AUTHORITY

Introduction

1505. This report covers the audited accounts of the Ghana Civil

Aviation Authority for the financial year ended 31 December 2013.

Operational results

1506. Total Income for the period under review was GH¢72,605,743

from GH¢64,289,002 in 2012, registering a 12.9% increase. The

operating income which constituted the major component income for

the Authority rose by 8.8%. The details of the performance are

shown in Table 145.


Income

2013

GH¢

2012

GH¢

%

Change


Other Operating Income 20,065,053 15,979,330 25.6



Total Income 72,605,743 64,289,002 12.9

Expenditure

Direct Operating Expenses 29,323,553 22,347,000 31.2


Expenses

34,750,806 31,592,329 10.0


Surplus 8,531,384 10,349,673 (17.6)

1507. Total Expenditure rose by18.8% from GH¢53,939,329 in 2012

to GH¢64,074,359 in 2013. This was due to a 31.2% and 10.0%

increases in direct operating expenses and general and

administrative expenses respectively.

1508. The Authority closed the 2013 financial year with an

operational surplus of GH¢8,531,384 as against an amount of

GH¢10,349,673 recorded in 2012 financial year, representing a 17.6%

decrease in surplus.

Financial position

2013

GH¢

2012

GH¢

%

Changes

Non-Current

Assets

133,601,498 131,533,625 8.8

Current Assets 111,870,748 112,810,564 (0.8)


Non-Current

Liabilities

7,344,200 6,136,349 19.7

Net Assets 171,044,617 162,513,233 5.2




1509. Non-Current Assets which stood at GH¢131,533,625 in 2012

went up by 1.6% to GH¢133,601,498 in 2013. This was due to the

acquisition of furniture and equipment, Plant and machinery and

motor vehicles during the year.

1510. Current Assets, however, decreased by 0.8% from

GH¢112,810,564 in 2012 to GH¢111,870,748 in 2013. The decrease

was as a result of a reduction in cash and cash equivalent from

GH¢22,905,744 in 2012 to GH¢12,192,044 in 2013.

1511. Current Liabilities also decreased by 11.4% from

GH¢75,694,607 in 2012 to GH¢67,083,429 in 2013. The decrease was

due to 11.1% reduction in accounts payable.

1512. Non-Current Liabilities, however, increased by 19.7% from


mainly due to service and interest costs.

1513. The liquidity position as depicted by a current ratio of 1.7:1

(2012: 1.5:1) shows that the Authority will not be able to meet its

short-term liabilities as and when it falls due.

GHANA MARITIME AUTHORITY

Introduction


Maritime Authority for the financial year ended 31 December 2014.



Operational results

1515. The Authority’s operations for the year ended with a surplus

of GH¢5,770,214, an increase of 93.3% over the 2013 surplus of

GH¢2,985,939. The performance indicators are shown in Table 146.



to GH¢27,180,168 in 2014. This increase was mainly due to a 205.8%

increase in maritime safety charges.



increase in depreciation charges.

Income

2014

GH¢

2013

GH¢

%

Change

Service Charge 7,179,563 16,800,000 (57.3)

Maritime Safety Charges 18,678,074 6,108,550 205.8

Other Income 1,332,531 1,081,891 23.2

Total Income 27,180,168 23,990,441 13.3

Expenditure


Expenses

21,111,678 20,248,249 4.3

Directors Emoluments - 618,891 -

Audit Fees 75,000 54,000 38.9

Depreciation 223,276 83,362 167.8


Surplus/(Deficit) 5,770,214 2,985,939 93.3



Financial position

1518. A summarized balance sheet as at 31 December 2014 is




2013 to GH¢530,382 in 2014. This increase was mainly due to an

addition of GH¢319,698 in fixed assets.

1520. Current Assets increased by 68% from GH¢8,475,777 in 2013

to GH¢14,238,324 in 2014. This increase was due to a 159.6% increase

in Debtors and Prepayments.


2013 to GH¢227,647 in 2014. The increase in Current Liabilities could

be attributed to a rise in Creditors and Accruals.

1522. Net Current Assets increased significantly by 158.1% from

GH¢8,336,885 in 2013 to GH¢14,010,677 in 2014.

Item

2014

GH¢

2013

GH¢

%

Change


Current Assets 14,238,324 8,475,777 68



Net Assets 14,541,059 8,770,845 65.8




1523. Net Assets increased by 65.8% from GH¢8,770,845 in 2013 to

GH¢14,541,059 in 2014.

1524. The Authority’s liquidity position was very strong at 62.5:1

and indicates that the Authority could meet its short terms financial

obligations as and when this fall due.


GHANA HIGHWAY AUTHORITY

Introduction


Highway Authority for the financial year ended 31 December 2013.

Operational results

1526. The Authority’s operations for the year 2013 ended with a

deficit of GH¢38,883 compared with a deficit of GH¢431,805 in 2012.

The performance indicators are shown in Table 148.


Income

2013

GH¢

2012

GH¢

%

Change

Grant Received 123,273,939 112,885,421 9.2

Internally Generated Fund 585,197 234,135 150.0

Total Income 123,859,136 113,119,556 9.5

Expenditure

Compensation/Personal

Emolument

18,655,025 22,622,827 (17.5)




GH¢123,859,136 in 2013. This was due to an increase in Grant

received of GH¢123,273,939 in 2013 as against GH¢112,885,421in

2012.


2012 to GH¢123,898,019 in 2013. This was due to an increase of

123.1% in Goods and Services – IGF from GH¢261,994 in 2012 to

GH¢584,547 in 2013.

Financial position

Table 149: provides the Authority’s financial position as at 2013.


in 2012 to GH¢39,767,561 in 2013. This rise was mainly due to

additions of GH¢2,920,437 to the property, plant and Equipment.

Goods & Services – GoG 140,625 855,199 (83.6)

Goods & Services – IGF 584,547 261,994 123.1

Investment/Assets 104,517,822 89,811,341 16.4


Surplus/(Deficit) (38,883) (431,805) (91.0)

Item

2013

GH¢

2012

GH¢

%

Change


Current Assets 22,389,618 15,686,728 42,7

Current Liabilities 5,582,230 5 ,605,559 (0.4)

Net current Assets 16,807,388 10,081,169 66.7

Net Assets 56,574,949 46,928,293 20.6





2012 to GH¢22,389,618 in 2013. The increase was mainly due to a

53.3% increase in Bank balances.


2012 to GH¢5,582,230 in 2013. The reduction was due to a decrease

in Accounts payable.

1532. Net Current Assets increased by 66.7% from GH¢10,081,169

in 2012 to GH¢16,807,388 in 2013.

1533. The Authority’s current ratio of 4.0:1 (2012: 2.8:1) shows that

the Authority can comfortably discharge its short term debts as and

when they fall due.

MANAGEMENT ISSUES

Accounting for Disposal of obsolete items

1534. The verification of stores revealed that most of the obsolete

items at the Central Stores which were reported in our previous

year’s report had been disposed off. In all, a total amount of

GH¢55,500 was realised from the sale of the obsolete items.

However, the amount was credited to the inventory account to

reduce the stock figure instead of the miscellaneous revenue account.

1535. We recommended that the amounts realised from the sale of

obsolete and damaged items at the stores should be treated as part of

the IGF. Consequently, the 50% portion of income generated should

be paid to the Ministry of Finance.

1536. Management has agreed to pay the 50% from the sale of

obsolete items to the Ministry of Finance.



Acquisition of Land (Head Office)

1537. We observed that there was no documentation covering the

acquisition of land at the Head Office.

1538. We recommended that management should follow up on all

the necessary documents on the property.

1539. Management responded that the Chief Valuer has been

assigned to facilitate the land registration.

1540. As at the time of our audit in July 2014, the title deed of the

land has not been acquired and the land has also not been

developed. We urged management to step up efforts in acquiring the

necessary documents.

GHANA PORTS AND HARBOURS AUTHORITY

WEST AFRICA TRANSPORT & TRANSIT FACILITATION

PROJECT

(WATTFP) IDA CREDIT No. 4439 – GH

Introduction

1541. This report covers the audited financial statements of the

Ministry of Roads and Highways West Africa Transport and Transit

Facilitation Project (WATTFP) IDA Credit Number 4439 – GH for the


Operational results

1542. Total funds received during 2014 was US$172. This was

made up of other income received on IDA transaction. Table 150



shows total transactions for the year 2014 and the cumulative

position to date.

Table 150: Statement of financing and expenditures for 2014

Financing

Balance brought forward

Total Transaction for the year US$

Cumulative to date US$

Balance brought forward

638,497 638,497

Other Income 7 172 179

Total Resources 172 638,676

Expenditures

Consultancy & Training 207,577 83,667 291,244

Project Management 920 473 1,393

Total Expenditure 84,140 292,637

Bank Balance as at 31

December

346,035

1543. Total Expenditure for the year 2014 amounted to US$84,140.

Prominent among the expenditure was cost of consultancy and

training of US$83,667 which constituted 99.4% of total expenditure.

Financial position

Presented in Table 151 is the projects financial position as at 31

December 2014.




2014

US$

2013

US$

%

Change

Current Asset 346,038 430,006 (19.5)

Accumulated Non-Capital

Expenditure

292,637 208,497 40.4

Total Assets 638,676 638,504

Financed by

International Development

Association (IDA)

638,497 638,497 -

Other Income 179 7 2,457.1

638,676 638,504

1544. Current Asset reduced by 19.5% from US$430,006 in 2013 to

US$346,038 in 2014. The decrease was mainly due to the balance

figure between resources and expenditure which was transferred

into the Special Account – IDA. Current Assets represent bank

balance.

1545. Accumulated Non-Capital Expenditure also went up by

40.4% from US$208,497 in 2013 to US$292,637 in 2014. This

represented payment for Non-capital items.


GHANA REVENUE AUTHORITY (CUSTOMS DIVISION)

WEST AFRICA TRANSPORT & TRANSIT FACILITATION

PROJECT (WATTFP) IDA CREDIT NO. 4439 - GH

Introduction




Ministry of Roads and Highways Ghana Revenue Authority

(Customs Division) – West Africa Transport and Transit Facilitation

Project (WATTFP) IDA Credit No. 4439 – GH for the year ended 31

December 2014.

Operational results

1547. Total Funds received during 2014 was US$1,454,810. This

was made up of IDA balance brought forward of US$1,395,562

constituting 95.9% of the Total Funds received and replenishment of

Special Account of US$52,815, representing 3.6% of the Funds. Table

152 shows total transactions for the year 2014 and the cumulative

position to date.

Table 152: Statement of Financing and Expenditure for 2014

2013 2014 %

change

Special Deposit

Replenishment of Special

Account

1,395,562 1,448,377 3.8

Other income 6433 6433 -

Total Funds/Resources 1,401,995 1,454,810 3.8

Expenditures

Goods 231,546 231,546 -

Consultancy and Training 479,595 657,743 37.1

Project Management 285,191 385,856 35.3

Total Expenditure 996,332 1,275,145 28.0

Bank Balance as at 31

December

179,665 179,665 -




US$1,275,145 leaving a bank balance of US$179,665 as at 31

December 2014. The total Expenditure included Consultancy and

Training cost of US$657,743 which constituted 51.5% of the Total

Expenditure and Project management cost of US$385,856,

representing 30.2% of Total Expenditure.

1549. Presented in Table 153 is the Project’s financial position as at

31 December 2014.


1550. Non-Current Assets of US$231,546 remained unchanged

over the period.

1551. Current Assets went up by 4.5% or US$52,815 from

US$1,170,449 in 2013 to US$1,223,264 in 2014. The increase was due

to an increase of US$278,814 in Accumulated Non-Capital

Expenditure over the 2013 figure.

Income

2014

US$

2013

US$

%

Change

Non-Current Assets 231,546 231,546 -

Current Assets 1,223,264 1,170,449 4.5

Total Assets 1,454,810 1,401,995 3.8

Financed by

IDA 1,448,377 1,395,562 3.8

Other Income 6,433 6,433 -

1,454,810 1,401,995 3.8




TRANSPORT SECTOR PROJECT (TSP)

GOVERNMENT OF GHANA (CONSOLIDATED) FUND

COMPONENT

Introduction

1552. This report relates to the audited accounts of Ministry of

Roads and Highways – Transport Sector Project (TSP) for the year


Operational results

1553. Total Funds received for the year under review, totaled

GH¢2,054,946,472. This is made up of releases by the Government of

Ghana amounting to GH¢916,358,221 (2013: 539,081,461)

representing 44.6% of total revenue. Table 155 shows the

performance indicators for the year 2014.


Income

2014 GH¢

2013 GH¢

% Change

Consolidated Fund 2,054,946,472 1,355,102,252 51.6

Expenditure

Emoluments 34,321,822 32,438,785 5.8

Services 316,477 228,795 38.3

Investment – Civil Works 877,151,675 504,016,069 74.0

Donor Funded 825,382,730 432,361,439 90.9

Others 282,062,258 390,759,730 (27.8)

Total Expenditure 2,019,234,962 1,359,804,818 48.5

Surplus/(Deficit) 35,711,510 (4,702,566) (859.4)


GH¢2,019,234,962 Prominent among the expenditure was Investment

– Civil Works of GH¢877,151,675 which constituted 43.4% of total



expenditure. Emoluments, services, donor funded and others also

accounted for 56.6% of total expenditure.

Financial position

1555. Presented in Table 156 is the projects financial position as at

31 December 2014.


2014

GH¢

2013

GH¢

%

Change

Non-Current Asset 2,276,815,111 1,467,597,571 55.1

Current Assets 444,254,407 464,791,375 (4.4)


Accumulated Non-Capital

Expenses

34,638,298 32,667,580 6

Current Ratio 0.6:1 08:1

1556. Non-Current Assets at close of 2014 amounted to

GH¢2,276,815,111 as against GH¢1,467,597,571 in the preceding year

representing an increase of 55.1%. The increase in Non-Current

Asset which comprises investment in Civil Works was due to

additions in government of Ghana and Donor funded assets.


2013 to GH¢444,254,407 in 2014. The decrease was mainly due to

reduction in debtors/prepayment from GH¢385,242,069 in 2013 to

GH¢312,744,451 in 2014 representing 18.8% decrease.

1558. Accumulated Non-Capital Expenditure also went up by 6%

from GH¢32,667,580 in 2013 to GH¢34,638,298 in 2014. This



represented payment for Non-capital items.

1559. The current ratio reduced from 0.8:1 in 2013 to 0.6:1 in 2014.

This depicts that the project cannot meet its short-term debts as and

when they fall due since the current ratio of 0.6:1 fall below the

benchmark of 2:1.

MINISTRY OF WATER RESOURCES, WORKS AND HOUSING

TEMA DEVELOPMENT CORPORATION

Introduction


Tema Development Corporation (TDC) for the year ended 31

December 2014.

Operational results

1561. Table 157 provides the performance indicators for the year

under review.


Income

2014

GH¢

2013

GH¢

%

Change

Net Property Income 27,980,891 16,947,931 65.1

Estate Development

Income

9,983,013 14,845,092 (32.8)

Profit on Disposal 61,659 19,181 221.5


Dividend Income 3,220 2,558 25.9

Total Income 47,201,557 39,366,762 19.9

Expenditure



Cost of Sales 5,320,897 10,409,064 (48.9)

Administrative

Expenses

16,794,149 13,113,291 28.1

Income Tax Expenses 5,353,725 3,210,670 66.7

Total Expenses 27,468,771 26,733,025 2.8

Profit for the year 19,732,786 12,633,742 56.1

1562. Total Income went up by 19.9% from GH¢39,366,767 in 2013

to GH¢47,201,557 in 2014. This was largely due to 65.1%, increases in

Net Property Income.

1563. Total Expenditure increased marginally by 2.8% from


as a result of 28.1% and 66.7% rise in Administrative Expenses and

Income Tax expenses respectively.

1564. The Corporation recorded a Net profit after tax of

GH¢19,732,786 in 2014 as against GH¢12,633,742 in 2013 representing

156.1% improved performance.

Financial position

1565. Details of the Corporation’s Financial Position as at 31

December 2014 are shown in the Table 158 below

2014 GH¢

2013 GH¢

% Change


Current Assets 112,219,256 78,459,585 43.0


Non-Current Liabilities 1,250,049 1,250,049 -




Net Assets 114,832,148 82,797,708 38.7


1566. Non-Current Assets rose by 3.5% from GH¢35,546,542 in 2013

to GH¢36,773,030 in 2014. The increase was largely due to additions

to Investment Properties under construction.

1567. Current Asset stood at GH¢112,219,256 in 2014 as against

GH¢78,459,585 in 2013 representing an increase of 43%. The rise was

due to increase in Account Receivable and Prepayments by 167.3%.


GH¢29,958,370 in 2013 to GH¢32,910,089 in 2014 as a result of 105.2%

increase in Tax Liability.

1569. The Current Ratio for the year 2014 was 3.5:1 as compared to

2.6:1 for the previous year. This indicates that the corporation’s

ability to meet its short-term obligations as and when it falls due has

improved.

MANAGEMENT ISSUES

Reconciliation balances with Standard Chartered Bank

1570. The Board passed a resolution to close the following bank

accounts at Standard Chartered for arbitrary charges imposed by the

bank.

Accounts Type Account Number Amount

a. SCB – Offshore – Dollar 8700219856800 US$100,981.82

b. SCB – Forex Dollar 8701519856800 US$ 9,157.42

c. SCB – Offshore-Pound 2800219856800 £11,507.23

d. SCB – Forex Pound 2801519856800 £ 356.79



e. SCB – Forex Euro 9301519856800 € 163.27

f. SCB – Cedi 0100119856800 GH¢24,978.74

1571. We did not sight any correspondence to the effect that the

bank has closed the accounts and transferred the balances to Tema

Development Corporation (TDC).

1572. We recommended that management take the necessary steps

to follow this issue to recover these monies from the Bank.

1573. According to management, TDC lawyers are pursuing the

recovery of the balances from the bank.

Adjei Kojo Lands not included in TDC schedules of assets

1574. We noted that even though TDC are now in possession of

Adjei Kojo land of total acreage of 111.53 which is made up of about

839 uncommitted plots, these properties were not included in the

schedule of TDC assets.

1575. We recommended to management to update its assets

register by including these properties for close monitoring.

1576. According to management records of these plots are

maintained at the Estates Department.

STATE HOUSING COMPANY LIMITED (SHC)

Introduction

1577. This report covers the audited accounts of State Housing

Company Limited for the year ended 31 December 2013.



Operational results

1578. The summary of the Company’s operations are provided in

Table 159.


Item 2013

GH¢

2012

GH¢

%

Change

Turnover 3,066,129 1,785,154 71.8

Cost of Sales 2,142,307 1,323,779 61.8

Gross Profit 923,822 461,375 100.2

Other Income 6,075,037 9,196,292 (33.9)

Staff Cost 3,716,745 2,920,949 27.2

Selling, Admin &

Distribution Cost

2,479,810 1,880,056 31.9

Net Finance

Income

108,680 10,499 935.1

Net Profit 910,984 4,867,161 (81.3)

1579. Turnover which consisted of sale of houses registered a

71.8% rise from GH¢1,785,154 in 2012 to GH¢3,066,129 in 2013.

1580. Other Income decreased by 33.9% from GH¢9,196,292 in 2012

to GH¢6,075,037 in 2013. This resulted largely from a 93.1%

reduction in Development/Plot Release Fee and a 68.6% drop in

Leasehold income. The performance indicators are shown in Table…

1581. Staff Cost went up by 27.2% from GH¢2,920,949 in 2012 to

GH¢3,716,745 in 2013. The increase was due mainly to 41.6% increase

in salaries and wages from GH¢2,354,198 in 2012 to GH¢3,333,812 in

2013.



1582. Net Profit decreased by 81.3% from GH¢4,867,161 in 2012 to

GH¢910,984 in 2013.

Financial position


company as at 31 December 2013


Item 2013

GH¢

2012

GH¢

%

Change


Current Assets 14,893,900 12,756,852 16.8


Non-current Liabilities 915,943 937,243 (2.2)

Net Assets 6,903,521 5,992,537 15.2


1584. Non-Current Assets of the Company increased by 24.3%

from GH¢3,675,013 in 2012 to GH¢4,569,957 in 2013. This was due to

additions to property, plants and equipment and a 33.5% rise in

development expenditure.

1585. Current Assets which stood at GH¢12,756,852 in 2012

increased by 16.8% to GH¢14,893,900 in 2013. This resulted from

increases in stock and work-in-progress and debtors and pre-

payments.


GH¢9,502,085 in 2012 to GH¢11,644,393 in 2013. This was due mainly

to a 24.8% rise in trade and other payables.



1587. The liquidity ratio of the Company stood at 1.3:1 for the two

consecutive years an indication that the company cannot readily

meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Trade Debtors

1588. We observed that trade debtors of GH¢557,707 for Greater

Accra are aging debtors which has been in the books since the year

2000. There has been no movement in the trade debtor’s balance over

the last three years.

1589. This lapse arose because management failed to put in place a

proper credit policy. We indicated that this ineffective debt recovery

culture impacts adversely on cash flow and on working capital

management.

1590. We recommended that debt recovery efforts should be

strengthened to ensure trade debtors comply with the terms

stipulated. Also, management should analyse the ageing debtors and

take action on the irrecoverable debts.

1591. Management responded that the debts have been in the

books for over 10 years and will recommend to the Board to write

them off and pursue the debts that can be recovered.

Selling Prices and Profit Margins

1592. We observed that the prices at which two houses were sold

were below the approved selling prices. Secondly profit margins

realized from the sale of these were below the Company’s profit



margins threshold of 40% as a result of high cost of building houses.

Details are shown Table 161 below:

Date Customer House No.

Type Prevailing Mkt Price GH¢

Selling Price GH¢

Total Cost GH¢

Gross Profit GH¢

GP Margin GH¢

24/8/13 Margaret

Konto

C23 SH.3 73,824 57,200 60,961 (3,761) (6.58)

31/11/12 Hilda

Nyarko

B32 SH.7 114,240 95,180 83,696 11,484 12.07

1593. This was as a result of inappropriate pricing of houses

constructed and/or lax of cost control on the part of management.

1594. This can result in loss of income to the company leading to

liquidity problems.

1595. We urged management to institute appropriate internal

control to ensure that all houses are sold at current prices and proper

cost management system is introduced to reduce the cost of building

houses.

Kagyase Land Dispute

1596. We observed that a land dispute at Kagyase (the only land

available for building in the zone) has affected the Company’s

operation in the Ashanti Region. We witnessed a large portion of the

land had been occupied by encroaches on our site visit.

1597. This situation impacts adversely on the operational and

financial sustainability of the zone.

1598. We recommended to management to secure the land in the

zone as these lands are strategically important to the revamping of



the company.

Accumulated Balance on Statutory Deductions-GH¢273,854.00

1599. We noted that accumulated balance on statutory deductions

totaling GH¢273,854.00 had not been settled. The details are shown

Table 162 below:

Item Head Office/ Greater Accra GH¢

Eastern Zone GH¢

Ho GH¢

Zone GH¢

Total GH¢

WHT 87,723 45,351 - 29,900 162,974

PAYE - 77,664 16,678 - 94,342

SSF - 13,776 2,762 - 16,538

Total 87,723 136,791 19,440 29,900 273,854

1600. The non-payment of statutory deductions is a breach of

section 87(1) of the Internal Revenue Act, Act 2000 which might

attract penalties. The non-payment of employees’ contributions

towards the social security fund might deny staff of their future

benefits.

1601. We urged management to ensure that all outstanding

statutory deductions are paid without further delay.

1602. Management gave the assurance that effort will be made to

settle all outstanding deductions.



WATER RESOURCES COMMISSION

Introduction

1603. This report covers the audited accounts of the Water

Resources Commission for the year ended 31 December 2014.

Operational results

1604. Total Income of the Commission decreased by 23.6% from

GH¢5,902,469 in 2013 to GH¢4,508,383 in 2014. The decrease was as

a result of a 41.3% fall in other income from GH¢4,240,999 in 2013 to

GH¢2,490,179 in 2014. Table 163 shows the performance

components for the review period.


Income

2014

GH¢

2013

GH¢

%

Change

Income 2,018,204 1,661,470 21.5

Other Income 2,490,179 4,240,999 (41.3)

Total Income 4,508,383 5,902,469 (23.6)

Expenditure

General

Administrative

Expenses

3,776,578 4,054,412 (6.9)

Surplus 731,805 1,848,057 (60.4)

1605. Total Expenditure for the period under review decreased

marginally by 6.9% from GH¢4,054,412 in 2013 to GH¢3,776,578 in

2014. Reduction in Community Support and Consultancy Service



fees mainly accounted for the fall in expenditure.

1606. The Commission recorded a surplus of GH¢731,805 in 2014

as compared to GH¢1,848,057 recorded in 2013, a decrease of 60.4%.

The decline in other income contributed largely to the decrease.

Financial position

1607. Table 164 shows the financial position of the Commission for

the year under review.


2014

GH¢

2013

GH¢

%

Change


Current Assets 4,907,263 3,946,505 24.3


Net Assets 5,229,658 4,497,853 16.3


1608. Non-Current Assets of the Commission decreased marginally

by 2.5% from GH¢585,661 in 2013 to GH¢570,958 in 2014. The

decrease was due to the depreciation charges on fixed assets for the

year.

1609. Current Assets, however, rose by 24.3% from GH¢3,946,505

in 2013 to GH¢4,907,263 in 2014. This was due to a 36.1% increase in

Accounts Receivables and a 21.2% increase in cash and cash

equivalents.




2013 to GH¢248,563 in 2014. Increases in sundry payables from

GH¢12,719 in 2013 to GH¢225,063 in 2014 accounted for the rise.

1611. The current ratio of 19.7:1 (2013: 115.0:1) indicated a

favourable liquidity position of the Commission.

ARCHITECTURAL & ENGINEERING SERVICES LTD

Introduction

1612. This report covers the audited Financial Statements of

Architectural and Engineering Services Limited for the financial year


Operational results

1613. Architectural and Engineering Services Limited (AESL)

posted a loss of GH¢247,022 in 2014. This is in variation from the

profit of GH¢818,916 recorded in 2013 representing 130.2% decline in

performance. Table 165 below is the detailed analysis of the AESL

performance for 2014 and 2013 comparatives.

Income

2014

GH¢

2013

GH¢

%

Change

Turnover 10,311,677 9,109,191 13.2

Other Income 345,652 529,314 (34.7)

Total Income 10,657,329 9,638,505 10.6

Expenditure

Administrative &

General Expenses

10,904,351 8,569,883 27.2

Profit/(Loss) Before (247,022) 1,068,622 (123.1)



Tax

Income Tax - (249,706) -

Profit for the Year (247,022) 818,916 (130.2)

1614. Total Income which is made up of Fees and Other Incomes

increased by 10.6% from GH¢9,638,505 in 2013 to GH¢10,657,329 in

2014. The increase was due to a 13.2% increase in Fees over the 2013

figure of GH¢9,109,191.


2013 to GH¢10,904,351 in 2014. This was due to 79%, increase in

Electricity and Water.

Financial position

1616. The detailed analysis of the financial position of AESL for

2014 and its comparatives figures from 2013 are shown in the Table

166 below.

2014

GH¢

2013

GH¢

%

Changes


Current Assets 15,055.197 13,481,991 11.7

Non-current Liabilities - 23,323 -



Net Assets 16,761,693 17,008,715 (1.5)


1617. Non-Current Assets rose marginally by 1.9% from




due to additions to Motor Vehicle and Furniture and Equipment.


2013 to GH¢15,055,197 in 2014. The increase was as a result of 56.1%

and 12.5% increase in Cash/ bank balances and Accounts Receivable

balance respectively.

1619. Current Liabilities also increased from GH¢7,371,271 in 2013

to GH¢9,423,126 in 2014 representing 27.8% rise. This increase was

mainly due to 144.3% increase in Bank overdraft and 29.3% increase

in Account Payable.

1620. The liquidity position stood at 1.6:1 in 2014 as against 1.8:1 in

2013, falling below the benchmark of 2:1. This put the AESL in an

unfavourable position to meet its short-term obligations when they

fall due.



MINISTRY OF INFORMATION

NEW TIMES CORPORATION

Introduction

1621. This report covers the audited accounts of the New

Times Corporation for the financial years ended 31 December

2013 and 2014.

Operational results

1622. Total Income made up of turnover and Other Income

decreased by 1.0% from GH¢12,316,811 in 2013 to

GH¢12,189,899 in 2014. The decrease was caused by 1.6% fall

in the turnover of the Corporation which recorded

GH¢12,024,424 in 2014 as against GH¢12,214,874 in 2013.

Presented in Table 167 are the performance indicators.


Income

2014

GH¢

2013

GH¢

%

Change

Turnover 12,024,424 12,214,874 (1.6)

Other Income 165,475 101,937 62.3

Total Income 12,189,899 12,316,811 (1.0)

Expenditure

Cost of Production 6,202,836 6,271,669 (1.1)

General Admin. &

Sell Expenses

5,763,152 5,526,593 4.3

Provision for

Income Tax

75,540 132,652 (43.1)


Net Profit 148,371 385,897 (61.6)



1623. Total Expenditure of the Corporation for the year under

review increased marginally by 0.9% from GH¢11,930,914 in

2013 to GH¢12,041,528 in 2014. The increase was due to a 4.3%

rise in general administrative and selling expenses.

1624. The year’s operational activities ended with a drop in

the Net profit after tax by 61.6% from GH¢385,897 in 2013 to

GH¢148,371 in 2014.

Financial position

1625. The financial position of the Corporation for the period

is shown in Table 169.


2014

GH¢

2013

GH¢

%

Change

Non-Current

Assets

2,119,276 2,327,151 (8.9)

Current Assets 7,110,492 5,110,430 39.1


Net Assets 2,419,470 2,271,099 6.5


1626. The Corporation’s non-current assets decreased by 8.9%


due to the depreciation charged for the year.

1627. Current Assets which stood at GH¢5,110,430 in 2013

increased by 39.1% to register GH¢7,110,492 in 2014. This was

as a result of 45.1% increase in trade debtors, and 72.0%

increase in debit balances/prepayments.



1628. Current Liabilities also recorded an increase of 31.8%

from GH¢5,166,481 in 2013 to GH¢6,810,298 in 2014. The

increase was due to 51.4% increase in Sundry Creditors and

64.9% increase in trade creditors.

1629. The liquidity position of the Corporation as depicted by

the current ratio of 1.0:1 (2013: 1.0:1) is unhealthy. This implies

that the Corporation may not be in a position to meet its short-

term obligations as and when they fall due.

MINISTRY OF COMMUNICATION

NATIONAL COMMUNICATIONS AUTHORITY

Introduction

1630. This report relates to the audited Financial Statements

of the National Communications authority (NCA) for the year


Operational results

1631. The Authority made a surplus of GH¢100,432,516 in

2014 as compared with a surplus of GH¢42,256,365 in 2013

representing 137.7% increase. The summary of the Authority’s

Operational Performance for the review period is shown in

Table 170.




2014

GH¢

2013

GH¢

%

Change

Revenue 86,783,061 55,561,319 56.2

Other Income 70,143,445 29,774,142 135.6

Total Income 156,926,506 85,335,461 83.9

Expenditure

General &

Administrative

Expenses

56,493,990 43,079,096 31.1

Surplus 100,432,516 42,256,365 137.7

1632. Total Income increased by 83.9% from GH¢85,335,461

in 2013 to GH¢156,926,506 in 2014. This was due to 56.2%

increase in Revenue and 135.6% increase in Other Income.

1633. Total Expenditure (General and Administrative

Expenses) rose by 31.1% from GH¢43,079,096 in 2013 to

GH¢56,493,990 in 2014. The rise was due to increases in all

expenditure items except contribution to international bodies.

Financial position

1634. The summarised Financial Position of the Authority is

shown in Table 171.




2014 GH¢

2013 GH¢

% Change

Non-Current Assets (PPE) 95,034,376 73,002,202 30.2

Current Assets 219,612,753 142,141,394 54.5



Net Assets 249,294,926 168,086,535 48.3


1635. Non-Current Assets rose by 30.2% from GH¢73,002,202

in 2013 to GH¢95,034,376 in 2014. The rise was as a result of

the acquisition of additional Assets.

1636. Current Assets stood at GH¢219,612,753 in 2014 as

against GH¢142,141,394 in 2013, representing an increase of

54.5% or GH¢77,471,359 over the previous year’s amount.

1637. The increase was due to 90.3%, and 17.4% increases in

Short-term Investment and Cash and Cash Equivalent

respectively over the 2013 figures.

1638. Current Liabilities also went up by 46.3% from

GH¢35,630,202 in 2013 to GH¢52,127,466 in 2014. This was due

to 51.5% increase in Account Payable.

1639. The Liquidity Position of the Authority as measured by

current ratio improved marginally from 4:1 in 2013 to 4.2:1 in

2014. This indicates that the Authority has a favourable

liquidity position to meet its short-term obligations as and

when they fall due.



MANAGEMENT ISSUES

Non-Renewal of Licenses

1640. It is a requirement of the authority for license issued to

operators of TV Commercial FM Stations and Internet Service

providers (ISPs) to be renewed prior to the expiry of such

licenses. These Licenses are for five (5) years duration.

1641. Our follow up review of records on renewal of licenses

issued by the authority as at year ended 2014 revealed the

following.

Internet Service

Provider (ISPs)

Date

Authorised

Date

Expired

Remarks

1st African Communication Co. Gh. Ltd.

26/9/2005 25/9/2010 Not

Renewed

Giant International 7/3/2000 6/3/2005 Not

Renewed

Easy Net Company Limited

10/7/2000 9/7/2005 Not

Renewed

Engineering System & Service Limited

21/8/2000 20/8/2005 Renewed

11/12/09

Infinite Stream (Burst Africa Ltd.)

30/11/2004 29/11/2008 “

“

Internet Data Network Ghana Ltd.

29/1/1999 28/1/2004 Provisional

Renewal

Kalls-Inn (Ryma Telecommunications Ltd

11/3/2005 10/3/2010 Not

Renewed

Landelta Communications, Ltd.

1/12/2004 30/11/2009 Not

Renewed

Netplux Limited 21/3/2003 20/3/2008 Not



(FormelyAfriweb) Renewed

Sat Consult Limited 1/12/2004 30/11/2009 Not

Renewed

Tandem Networks Ltd.

2/2/2006 1/2/2011 Not

Renewed

Teledata ICT Limited

3/8/2005 2/8/2010 Not

Renewed

West African Network Limited

9/3/2005 8/3/2010 Not

Renewed

Wice-Net Ghana Limited

31/3/2006 30/3/2011 Not

Renewed

1642. We continue to urge management and the Board of

Directors to quicken the process of having these expired

licenses renewed.

1643. This will ensure that all operators will operate legally

and the associated revenue recognized.

1644. According to management, the Authority has not

renewed the listed operators whose licenses have expired

because they are yet to meet the requirements for renewal such

as the provision of Tax Clearance Certificate, SSNIT Payments

etc.

Capital Commitment in excess of Authorised Amount

1645. Best practice requires that payments on Capital Projects

should not exceed the approved amount (Budget) by the

approving authority.

1646. Contrary to this, we noted that Payments on Capital

projects as at year end 31 December, 2014, exceeded the



authorized amounts as approved by the Central Tender Board

by GH¢1,279,895. This was as a result of price variations due

to the fall in value of the Ghana Cedi.

1647. Work at the Kumasi and Tamale site have been

completed and being used by the Authority’s Staff in these

Zones. The Tamale office was commissioned on January 16,

2014. Kumasi is yet to be commissioned.

1648. The office complex at the Airport city has been

completed and was handed over on the 26 of May, 2015. As at

the time of our visit in June 2015, painting, fixing of fixtures

and fittings were being carried out on the Takoradi project.

Revised contract sum and expenditure as at the end of the year

are in Table 172 below.

Project

Contract Sum GH¢

Payment 31/12/2014 GH¢

Balance 31/12/2014 GH¢

Airport City 63,123,111 59,495,875 3,627,236

Takoradi Office 8,524,908 6,019,917 2,504,991

Kumasi Office 5,516,082 5,856,781 (340,699)

Tamale Office 6,216,624 7,155,820 (939,196)

Total 83,380,725 78,528,393 4,852,332

1649. We urge management to liaise with the consultant on

the projects as well as the contractors for the Takoradi and

Airport City projects to come out with the necessary revision to

the cost to completion for effective budgeting and also to reflect

the true Capital Commitment.

1650. As per above schedule, amount committed but not yet

spent on the Airport City and Takoradi projects as at the year



ended amounted to GH¢6,132,277 while amount spent in

excess of commitment on the Kumasi and Takoradi office

projects amounted to GH¢1,279,895.

1651. Management in response said the audit observation

was noted and that the Project Consultant has been informed to

examine the outstanding projects taking into account variations

due to price fluctuations.

GHANA PUBLISHING COMPANY LIMITED

Introduction


Publishing Company Limited for the financial year ended 31

December 2012.

Operational results

1653. Total Income for the year under review increased by

30.4% from GH¢3,515,789 in 2011 to GH¢4,583,822 in 2012. The

rise was due to 30.0% and 66.3% increases in turnover and

other income respectively. Details of the Company’s

performance indicators for the period are presented in Table

173.


Income

2012

GH¢

2011

GH¢

%

Changes

Turnover 4,530,162 3,483,525 30.0

Other Income 53,660 32,264 66.3

Total Income 4,583,822 3,515,789 30.4

Expenditure



Operating Cost 2,875,960 2,164,160 32.9

Personnel Cost 1,068,066 807,820 32.2

Financial and

Professional

37,749 17,025 121.7

General &

Administrative Expenses

713,906 586,519 21.7

Provision for Tax 5,254 6,750 (22.2)


Net Loss (117,112) (66,485) 76.2


GH¢3,582,274 in 2011 to GH¢4,700,935 in 2012. Increases in

operating cost, personnel cost and general and administrative

expenses accounted the rise in total expenditure.

1655. The Company’s operations for the year 2012 ended

with an increase in the net loss, from GH¢66,485 in 2011 to

GH¢117,113 in 2012 or 76.2%.

Financial position

1656. The Company’s financial position as at 31 December

2012 is presented in Table 174.


2012

GH¢

2011

GH¢

%

Changes

Non-Current

Assets

214,630 243,023 (11.7)

Current Assets 1,935,740 1,153,696 67.8




Net Assets 548,202 665,314 (17.6)


1657. Non-Current Assets registered a drop of 11.7% from

GH¢243,023 in 2011 to GH¢214,630 in 2012. This was mainly


1658. Current Assets, however, increased by 67.8% from

GH¢1,153,696 in 2011 to GH¢1,935,740 in 2012. The rise was as

a result of an increase in accounts receivable.


GH¢1,252,521 in 2011 to GH¢2,123,284 in 2012. An increase of

137.7% in accounts payable and accruals accounted for the rise.

1660. The Current ratio remained the same at 0.9:1 in both

2012 and 2011. This implied that the Company would not be

able to meet its short-term debts as and when they fall due.

MANAGEMENT ISSUES

Non-payment of withholding tax – GH¢2,848.44

1661. We noted that, withholding tax deducted totaling

GH¢2,278.44 from Allowances paid had not been remitted to

the Ghana Revenue Authority (GRA) contrary to Section 87 of

Act 592.

1662. We also noted that the Company failed to deduct and

remit the required withholding tax from the payments made to

suppliers of goods and services. The withholding tax involved

was GH¢570.00.



1663. The disregard of the relevant provisions of Act 592

could result in the loss of tax revenue to the state.

1664. We therefore, recommended that, tax withheld should

immediately be remitted to the GRA and in future withholding

taxes should be deducted from payment to suppliers for goods

and services.

1665. Management responded that steps are being taken to

pay all withholding taxes to Ghana Revenue Authority (GRA).

GHANA POST COMPANY LIMITED

Introduction

1666. This report covers the audited accounts of the Ghana

Post Company Limited for the financial year ended 31

December 2013.

Operational results

1667. Total Income for the period reviewed increased from

GH¢30,378,547 in 2012 to GH¢37,001,312 in 2013. This

represents a 21.8% rise. The increase in total income was as a

result of a significant increase in other income by 133.8%. The

operational performance of Company is detailed in Table 175.


Income

2013

GH¢

2012

GH¢

%

Changes


Other Income 1,443,821 617,548 133.8

Exchange Gain 43,382 385,887 (88.8)

Total Income 37,001,312 30,378,547 21.8

Expenditure



Operating Cost 24,737,697 20,446,702 21.0

General, Selling &

Admin. Expenses

11,800,955 9,659,169 22.2

Finance Charges 53,296 47,264 12.8

Taxation 315,839 154,387 104.6


Profit 93,525 71,025 31.7


GH¢30,307,522 in 2012 to GH¢36,907,787 in 2013. Increases in

General Selling and Administrative Expenses and Taxation

contributed to the increase in expenditure.

1669. The Company made a net profit of GH¢93,525 in 2013

as against a net profit of GH¢71,025 in 2012, representing a rise

of 31.7%.

Financial position


Company.


2013

GH¢

2012

GH¢

%

Changes


Current Assets 17,998,627 13,112,969 37.3


Non-Current

Liabilities

8,863,521 5,296,787 67.3

Net Assets 12,846,868 10,785,201 19.1

Current ratio 1.2:1 1.1:1




GH¢14,938,385 in 2012 to GH¢18,264,935 in 2013. This resulted

from the Company’s investment in Capital projects and the

acquisition of motor bikes, vehicles and office equipment

during the year.

1672. Current Assets also increased by 37.3% from

GH¢13,112,969 in 2012 to GH¢17,998,627 in 2013. This was as a

result of increases in trade and sundry debtors and cash and

cash equivalents.

1673. Current Liabilities went up by 21.6% from

GH¢11,969,366 in 2012 to GH¢14,553,173 in 2013. The rise in

accounts payable and other credit balances mainly accounted

for this.

1674. Non-Current Liabilities also increased significantly by

67.3% from GH¢5,296,787 in 2012 to GH¢8,863,521 in 2013. A

government loan of GH¢4.85 million (2012: GH¢2 million)

contracted by the Company in 2013 accounted for the rise.

1675. The liquidity outlook as depicted by a current ratio of

1.2:1 (2012: 1.1:1) did not appear favourable and an indication

that the Company cannot meet its short-term obligations when

they fall due.

MANAGEMENT ISSUES

Head Office

No identification tags on Company assets

1676. The verification of the Company’s assets revealed that,

Ghana Post Company Limited owns a large number of assets at



several different locations but there were no company

identification marks or tags on some of these assets.

1677. The risk of theft of company assets may go undetected

as there is no identification marks or tags on the assets to

indicate Company’s ownership.

1678. Management should ensure that all assets owned by the

Company are appropriately identified with tags or

identification marks for easy monitoring and avoidance of

unauthorized disposition of these assets.

1679. Management responded that, the Estates department is

in process of providing a three year tagging strategy for ten

regional heads and operations department.

No Title Deeds to Landed properties of the company

1680. Despite our previous comment in our last audit report,

Ghana Post is yet to acquire Title Deeds for all their landed

properties across the country.

1681. We recommended that efforts should be made by

management to register all landed properties of the company.

This must be done within a defined time frame.

1682. Management responded that in 2013/2014, four

properties were submitted to the Lands commission to process

title deeds for ownership. Management plans to contact the

Lands Commission for selected properties for rebate charges in

2014/2015.

1683. Management is also soliciting a proposal to perfect



titles to all HIPC and CIC properties through the Ministry of

Communication (MOC) to GIFEC for the funding of the title to

these properties.

POSTAL AND COURIER SERVICE REGULATORY

COMMISSION

Introduction

1684. This report relates to the audited accounts of the Postal

and Courier Service Regulatory Commission for the period 1

January 2012 to 31 December 2013

Operational results

1685. The total income of the Commission rose by a margin of

45.2% from GH¢319,993 in 2012 to GH¢463,301 in 2013. This

was mainly due to a 236.6% rise in Internally Generated Fund

from GH¢99,704in 2012 to GH¢335,564 in 2014.

Income 2013 (GH¢)

2012 (GH¢)

% Change


127,737 219,489 (41.8)


335,564 99,704 236.6

Total 463,301 319,193 45.2

Expenditure

Employees Compensation

127,737 192,600 (33.7)

Administrative Activity

291,692 234,293 24.5

Service Activity 9,986 63,088 (84.2)

Total 429,415 489,981 (12.4)

Surplus(Deficit) 33,886 (170,788) (120)



1686. The Commission’s total expenditure fell by a margin of

12.4% from GH¢489,981 in 2012 to GH¢429,415 in 2013. This

was as a result of a fall in employees’ compensation and

Service Activity. The Commission registered a surplus of

GH¢33,886 in 2013.

Financial position

Balance sheet as at 31 December 2013

Items 2013

GH

2012

GH¢

%

Change

Non–Current Assets 85,676 85,676 -

Current Assets 252,705 231,040 9.4%


Net Asset 333,405 299,519 11.3

Liquidity ratio 55.6:1 13.4:1

1687. The Non-Current Assets remains the same over the

years as a result of non-depreciation of assets. Current Assets

also increase by 9.4% from GH¢231,040 in 2012 to GH¢252,705

in 2013. The change was as a result of disclosure of the debtors

which were not disclose over the years. Current liabilities fell

by a margin of 73.5% from GH¢17,197 in 2012 to GH¢4,548 in

2013. This was mainly due to payment of Withholding tax in

arrears.

1688. Liquidity of the Commission remains strong as it

registered a small margin of Liability over the period.



MANAGEMENT ISSUES

Provision for Depreciation of Fixed Asset

1689. Section 53 of Financial Administration Act, 2003, Act

654, state that, “The Minister may upon recommendation of the

governing body of a corporation direct the corporation to make

provision for reserves, for extensions, depreciation of assets, for

uncollectable debts and for other purposes.”

1690. Examination of the fixed assets revealed that the Postal

& Courier Service Regulatory Commission does not have any

policy on depreciating its fixed assets.

1691. Failure to depreciate the fixed assets has resulted in

overstatement of fixed assets value in the financial statement.

1692. We advised and management accepted to expedite

action in deciding on the depreciation policy without further

delay.


IRRIGATION DEVELOPMENT AUTHORITY

Introduction

1693. This report relates to the audited accounts of the

Irrigation Development Authority for the financial year ended

31 December 2012.

Operational results

1694. The Authority’s operations for the year ended with a

deficit of GH¢138,538 as against a surplus of GH¢262,671

recorded in 2011. Table 177 shows the performance indicators



for the year under review.

Table 177: Income statement for the year ended 31 December

2012

Income

2012

GH¢

2011

GH¢

%

Change

Government Subvention 14,661,942 11,665,029 25,7

Other Income 411,207 212,258 93.7

Total Income 15,073,149 11,877,287 26.9

Expenditure



Repairs and Replacement 137,284 95,311 44,0

General Expenses 449,906 336,698 33.6

Investment (Dam Rehabilitation)

8,426,781 8,134,018 3.6


Surplus/(Deficit) (138,538) 262,671 (152.7)

1695. Total Income increased by 26.9% from GH¢11,877,287

in 2011 to GH¢15,073,149 in 2012. This increase was due to a

93.7% increase in other income from GH¢212,258 in 2011 to

GH¢411,207 in 2012.

1696. Total Expenditure increased by 31.0% from

GH¢11,614,616 in 2011 to GH¢15,211,687 in 2012. This increase

was due to 112.9% increase in Personnel Emoluments and 44%

increase in Repairs and Replacement expenses.



Financial position

Table 178: provides the Authority’s financial position as at 2012

Item

2012

GH¢

2011

GH¢

%

Change


Current Assets 856,901 624,631 37.2



Net Assets 1,120,394 1,259,452 (11.0)



GH¢793,313 in 2011 to GH¢806,785 in 2012. The increase was

due to an addition of GH¢12,000 to Non-Current Assets as a

result of purchases of fixed assets.

1698. Current Assets increased by 37.2% from GH¢624,631 in

2011 to GH¢856,901 in 2012. The increase was mainly due to

454.8% increase in Receivable and 27.2% increase in cash and

bank balances.

1699. Current Liabilities increased by 242.8% from


due to 298.1% increase in payables from GH¢128,406 in 2011 to

GH¢511,129 in 2012.

1700. The liquidity status of the Authority as depicted by the

current ratio of 1.6:1 (2011: 3.9:1) is unhealthy. This implies

that the Authority may not be in a position to meet its short-

term obligation as and when they fall due.



MANAGEMENT ISSUES

Non procurement of Items from VAT registered organizations

1701. In contravention to Regulation 183 (4) of the FAR, 2004

(L.1.1802), we observed that items totaling GH¢10,147.20

procured were not made from VAT registered organizations as

shown in Table 179.

1702. We recommended that management should comply

with the Financial Regulation and only procure from VAT

registered suppliers.

1703. Management responded that they have taken note and

will comply with the Financial Regulations when making

procurement in the future.

Unbanked office cash – GH¢2,430.00

1704. Contrary to Regulation 18 of the FAR 2004, we

observed that an amount of GH¢2,430 described as office cash

had not been banked at the time of our audit. Also the cash

was not produced for our cash count. This was due to non-

compliance of the regulation.

1705. We recommended that Regulation 18 of the FAR should

be complied with in the future.

Date

PV No.

Amount

GH¢

02/02/12 8468 794.20

07/02/12 8712 2,889.00

26/07/12 7623 4,699.00

23/08/12 7657 1,765.00



1706. Management responded that they have taken note of

our recommendation.


PROGRAMME FOR THE PROMOTION OF PERENNIAL

CROPS

IN GHANA (AFD LOAN NO. 6008.01 L, GRANT NO.

CGH6008.02 M

AND KFW LOAN BMZ – NO. 2005 65572)

Introduction


the Ministry of Food and Agriculture -Programme for the

Promotion of Perennial Crops in Ghana for the year ended 31

December 2014.

Operational results

1708. Total funds received for the year under review, totaled

€1,319,923. This was made up of Designated Account (Special

Account) of €948,251 which represented 71.8% of the total

fund, 13.4% or €177,379 being funds for Direct Payments and

Counterpart Contribution of €194,292 representing 14.7%.

Table 180 shows the performance indicators for the year 2014.

Table 180: Statement of Sources and uses of Funds for 2014

Sources of Funds

Euro

(€)

Designated Account (Special

Account)

948,251

Direct Payments 177,379

Others – Interest Earned 1



Counterpart Contribution 194,292

Total Sources 1,319,923

Less Uses of Funds

Institutional support 198,910

Rubber – GREL 5,099

Oil Palm – TOPP 503,285

Foreign Exchange Difference 164

Total Uses of Funds 707,458

Net Sources/(Uses) 612,465

1709. The total use of funds for the year was €707,458 leaving

a net source of €612,465 for 2014. The main uses of funds was

Oil-Palm TOPP representing €503,285 or 71.1% of total funds

used for the year 2014

Financial position

1710. The Table below shows the financial position of the

Programme for the Promotion of Perennial Crops in Ghana as


2014

€

2013

€

%

Change

Cumulative Project

Expenditures

26,594,469 25,999,208 2.3

Current Assets 3,403,222 2,785,885 22.2

Current Liabilities - 107,162 -

Net current Assets 3,403,222 2,678,723 27

1711. Cumulative Project Expenditures of €26,594,464 is

represented by Non-Capital Expenditure of €22,259,270 and

Fixed Assets of €4,335,199. Cumulative Project Expenditure



increased by 2.3% from €25,999,208 in 2013 to €26,594,469 in

2014. The increment is due to additions to fixed assets and

additional non-capital expenditure incurred.

1712. Current Assets of €3,403,222 comprised of Interest

Receivable of €2,311,745, Amount due from GREL – Pre

financing of €4,871 and Project bank and cash accounts of

€1,086,606.

1713. The programme is highly liquid since there were no

short term obligations to be met.

MANAGEMENT ISSUES

Omission of GOG Counterpart Funding from the Financial

Reports

1714. The terms of the contract for Management Service

required the GOG and End Beneficiaries to contribute towards

the GREL and TOPP portion of the Project.

1715. Apart from the counterpart funding disbursed by the

GOG to the tune of €1.62 million, it also contributed to the

project through VAT, Customs Duties, Salaries, Wages and

Allowances of Seconded staff as well as office accommodation

and utility payments. These contributions have not been

quantified and captured as contribution of the GOG to the

project and included in the financial statements.

1716. The Finance Section of the Project Coordinating Unit

(PCU) concentrates on only portions of the Institutional

Support component operated by the PCU. Consequently,

contracts and disbursements made directly by the donors were



not captured in the books of the PCU.

1717. We recommended that the PCU, with support from the

Ministry of Finance, should as much as practicable determine

and quantify all contributions made to the project by the GOG.

This should subsequently be charged to the project and

reflected as GOG contribution to the project.

1718. Management responded that, assistance will be sought

from the Ministry of finance, through MOFA, to assist the

programme ensure that counterpart funds, other than direct

releases to the project are captured in the books of accounts.

Interest of €2.3 million on Agricultural Credit Facility to ADB

& NIB Financial Reports

1719. The Government of Ghana received a credit facility

with a Grant component from the Agence Française de

Dèveloppement (AFD) and Kreditanstaltfur Weideraufbau

(KfW) towards the financing of the programmes for the

promotion of Perennial Crops in Ghana.

1720. We noted that as part of the programme subsidiary

agreements with GoG, the Ministry of Finance (MoF)

representing GoG on-lent the Euro €5.95 million agricultural

credit component to the financial operators, ADB & NIB. This

is to be used to finance the acquisition cost of land titles by the

out growers, the agricultural inputs for the projects, cash

advances for costs of labour and for the financing of the

management and extension service costs.

1721. Interest accrued on the disbursed portion of the credit

component, amounting to €2.3 million had been shown in the

financial statements. Since the subsidiary agreement was



between the MOF and the financial operators, we consider the

accrued interest of €2.3 million not accruing to the programme

and therefore should be reversed.

1722. The Interest was accrued because the subsidiary

agreement has been considered under the programme.

1723. The financial statements have been misstated by the

accrued interest of €2.3 million.

1724. We recommended that the accrued interest of €2.3

million is to be reversed in the financial statements in 2015.

1725. Management responded that, the interest will be

reversed in 2015.

No Contract Register

1726. Contrary to best contract management practice, the

programme does not maintain a Contract register to record all

commitment for contracts signed by the PPPCG and third

parties. The books of accounts are maintained on cash basis

and therefore entries in the books of accounts are only made

when payments are effected.

1727. Absence of a contract register might lead to

overpayment of the contracts.

1728. We recommended that the PCU should record all

commitment for contracts signed by the PPPCG and third

parties in a register, which should be updated regularly to

reflect the status of contracts, signed by the programme.



CORAF/WECARD COMPETITIVE PROJECTS –

SUSTAINABLE INTENSIFICATION INTEGRATED CROPS

SMALL RUMINANT

PRODUCTION SYSTEMS IN WEST AFRICA – GHANA

(SIICSRP – W/A – GH)

Introduction

1729. This report covers the audited accounts of the

Coraf/Wecard Competitive Projects – Sustainable

Intensification Integrated Crops Small Ruminant Production

systems in West Africa-Ghana (SIICSRP-W/A-Gh.) for the

three years’ period ending 31 March 2015. Table 181 provides

the performance indicators but cannot provide any comparison

statements of both income and financial position.

Operational results

1730. Total Income of the project for the three years’ period

ended 31 March 2015 amounted to GH¢1,355,527. This was

made up of research grant of GH¢1,326,087 and other income

of GH¢29,441. The performance indicators are shown in Table

181.

Table 181: Performance indicators for the three years ended 31

March 2015

Income

GH¢

Grant 1,326,087

Other Income 29,441

Total Income 1,355,527

Expenditure



1731. Total Expenditure of the Project for the period (2012-

2015) amounted to GH¢1,176,348.

1732. Personnel Cost accounted for 39.0% of the total

expenditure for the period under review. Direct research

expenses and administrative expenses accounted for 29.1% and

21.1% respectively of the total expenditure.

1733. The project recorded a net surplus of GH¢179,179 when

the financial statements were consolidated.

Financial position

The financial position as at 31 March 2015

1734. Non-Current Assets was GH¢192,220 as at 31 March

2015. This comprise of property, plant and equipment.

Direct Research Expenses 342,146

Personnel Cost 456,255

Administrative Expenses 247,981

Travel and Transport 123,422

Finance Cost 6,544

Total Expenditure 1,176,348

Net (Deficit)/Surplus 179,179

GH¢

Non-Current Assets 192,220

Current Assets 1,060

Current Liabilities 14,100

Equity 179,179

Current Ratio 0.1:1



1735. Current Assets of GH¢1,060 was made up of bank

balance.

1736. Current Liabilities which stood at GH¢14,100 was made

up of other payables.

1737. The project’s liquidity situation needs attention as the

current ratio of 0.1:1 is unhealthy.

MANAGEMENT ISSUES

10% Project sum for Institutional support-GH¢132,608.68 not

complied with

1738. According to the Council for Scientific and Industrial

Research (CSIR) Crops Research Institute policies, for every

project awarded, the Institute receives 10% shares of total

project sum towards Institutional Support.

1739. We noted that from November 2011 to March 2015,

grants totaling GH¢1,326,086.76 was received by the Institute.

1740. We further observed that, GH¢11,162.76 and

GH¢11,697.65 were paid in 2013 and 2012 respectively into the

Institutional Support programme. These amounts even fell

short of the required 10% Institutional Support policy which

should have been GH¢132,608.68.

1741. Management’s laxity in not fully complying with the

implementation of the policy may cripple the day-to-day

running of the Institute, since, this 10% Institutional Support



deductions would add to the Internally Generated Fund (IGF).

1742. We therefore advised management to ensure

compliance of Institutional policies.

CORAF/WECARD COMPETITIVE PROJECTS – PLANTAIN

(NO. CW/03/01CP/C0/09 – 1.3)

Introduction

1743. This report covers the audited financial statements of

the CORAF WECARD Competitive Projects–Plantain (No.

CW/03/ 01CP/CO/09-1.3) for the period 1 January 2011 to 31

December 2014.

Operational results

1744. Total research grant from donor agency of the project

for the four-year period (2011-2014) amounted to GH¢125,701.

Total income for the fourth year 2014 decreased by 82.9% from

GH¢50,464 in 2013 to GH¢8,616 in 2014. The decrease in 2014

was due to the Project not receiving any research grant in the

year under review. Provided in Table 182 are details of the



Income

2014

GH¢

2013

GH¢

%

Change

Grant Income - 48,553 -

Other Income 8,616 1,911 350.9

Total Income 8,616 50,464 (82.9)

Expenditure

Direct Research Costs - 21,264 -



1745. Total Expenditure for the four-year period (2011-2014)

of the project was GH¢115,683.

1746. Total Expenditure for 2014 decreased by 72.8% from

GH¢43,881 in 2013 to GH¢11,933 in 2014. The fall in 2014

expenditure was due to the fact that there was not much

activity in the last year of the project.

1747. At the end of fourth year, the project registered a net

deficit of GH¢3,317 as against a surplus of GH¢6,583 in 2013,

representing a fall of 150.4%. This deficit was due to

expenditure incurred in 2014 but no research grant was

received from donor agency for the same period.

Financial position

1748. The financial position of the Project is summarized in

Table 183.


Personnel Costs 1,822 8,994 (79.7)

Administrative Expenses 5,517 6,626 (16.7)

Travel & Transport Expenses 4,594 6,716 (31.6)

Finance Cost - 281 -


Net (Deficit)/Surplus) (3,317) 6,583 (150.4)

2014

GH¢

2013

GH¢

%

Change

Non-Current Assets 11 828 (98.7)

Current Assets 44,125 41,925 5.2




1749. Non-Current Assets at the close of 2014 was GH¢11 as

against GH¢828 in the preceding year, representing a decrease

of 98.7%. The decrease was due to the assets being fully

depreciated.

1750. Current Assets rose marginally by 5.2% from

GH¢41,925 in 2013 to GH¢44,125 in 2014, as a result of 5.3% rise

in bank balance.


GH¢14,100 in 2013 to GH¢18,800 in 2014. The increase was due

mainly to an increase in other payable.

1752. The Liquidity position of the project fell from 3.0:1 in

2013 to 2.3:1 in 2014, an indication of the project still being in a

position to discharge its short term liabilities when they fall

due.

CORAF/WECARD COMMISSIONED PROJECT – RICE

YELLOW

MOTTLE VIRUS (RYMV) PROJECT. (NO. CW/03/01CM/U/09)

Introduction


the CORAF/WECARD Commissioned Project – Rice Yellow

Mottle Virus (RYMV) Project (No. CW/03/01CM/U/09) for

the period 1 January 2013 to 31 December 2013.

Equity 25,335 28,653 (11.6)




Operational results

1754. Total income for the four year (2010-2013) of the project

amounted to GH¢66,233.44. This was made up of grant of

GH¢64,768 for research grant and GH¢1,465 other income. But

the total income for the fourth year 2013 decreased from

GH¢43,189 in 2012 to GH¢1,101 in 2013. The Project did not

receive any research grant in 2013, as the fund allocated to the

project got exhausted in 2012. Details of the performance

indicators are provided in Table 184.


1755. Total Expenditure for the four-year period (2010-2013)

amounted to GH¢84,339. Total expenditure in 2013 was

GH¢36,198 as against GH¢17,372 in 2012, an increase of

Income

2013

GH¢

2012

GH¢

%

Change

Grant Income - 42,828 -

Other Income 1,102 361 204.9

Total Income 1,101 43,189 (97.5)

Expenditure

Direct Research Costs 20,779 6,335 228.0

Personnel Costs 1,182 2,384 (50.4)

Administrative

Expenses

5,023 5,010 0.3

Travel & Transport 897 3,129 (71.3)

Repairs &

Maintenance

8,270 490 1,587.8

Finance Cost 47.14 25 90.6


Net (Deficit)/Surplus (35,097) 25,816 (235.9)



GH¢18,825 or 108.4%. The significant increase in total

expenditure was due to 1,587.8% increase in repairs and

maintenance of project vehicles. Direct Field expenses and

Cooking Test evaluation accounted for the increase in direct

research costs.

1756. At the end of the project period, a deficit of GH¢35,096

was recorded as against a net surplus of GH¢25,816.

Financial position

1757. The financial position of the project is summarized in

Table 185.


1758. Non-Current Assets went down significantly by 96.5%

from GH¢288 in 2012 to GH¢10 in 2013 as a result of


1759. Current Assets also dropped by 97.8% from GH¢30,803

in 2012 to GH¢684 in 2013. The decrease was as a result of a

reduction in bank and cash balances.

1760. Current Liabilities increased by 33.3% from GH¢14,100

in 2012 to GH¢18,800 in 2013. The increase was due to an

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 10 288 (96.5)

Current Assets 684 30,803 (97.8)


Equity (18,106) 16,991 (206.6




increase in other payable increase was due to an increase in

other payable.

1761. The liquidity position of the project as indicated by a

current ratio of 0.04:1 (2012:2.2.1) appeared unfavourable and

indicated the inability of the project to meet its short-term


MANAGEMENT ISSUES

10% of Project Sum for Institutional support

1762. Part of the Institute’s policy requires that; all projects

contribute 10% of their project sum to support the Institute.

1763. We however noted that, GH¢6,476.80 which

represented 10% of the total grants received was not paid to the

Institute as required by their policies. Only GH¢936.33 was

paid in 2011, representing 14.5% of total sum received in that

year.

1764. Management could not provide any reason as to why

they failed to comply with the Institute’s policies, which

eventually may lead to the Institute not having enough

internally generated funds to cater for their operational

activities.


ensure that Institutional policies are adhered to.



CSIR –CRI CORAF/WECARD

WEST AFRICA SEED PROGRAM (WASP)

(NO. AID-624-A-12-00007)

Introduction

1766. This report covers the audited financial statement of the

CSIR – CRI CORAF/WECARD – West Africa Seed Program

(No. AID-624-A-12-00007) for the 16 months’ period ended 31

December 2014.

Operational results

1767. The main income of the project was a grant from the

donor agency, USAID which amounted to GH¢66,893.00. The

details of the financial operations are shown in Table 186.

1768. Table 186 provides the performance indicators. We

however cannot provide any comparison statements of both

income statement and financial position.

Table 186: Resources and expenditure statement for 2014.

Income

16 months’ period

ended 31/12/14

GH¢

Grant Income 66,893

Expenditure

Direct Research Cost 63,557

Personnel Costs 15,622

Administrative Expenses 5,780

Travel & Transport 11,758

Repair & Maintenance 4,588

Finance Cost 1,995



Total Expenditure 103,300

Deficit (36,407)

1769. Total Expenditure for the project for the 16 months’

period amounted to GH¢103,300. Direct research cost

constituted 61.5% of the total expenditure, and was made up of

Direct Field expenses of GH¢55,911, casual labour of GH¢7,041

and others of GH¢605

1770. The Project recorded a deficit of GH¢36,407 at the end

of the period under review.

Financial position


GH¢

Bank Overdraft 6,287

Account Payable 30,121

Total current liabilities 36408

Accumulated Fund (36,408)

1771. Current Liabilities comprised of bank overdraft of

GH¢6,287 and account payable of GH¢30,121. The account

payable included outstanding bills from Project Team of

GH¢25,422 and unpaid VAT of GH¢700.00.

MANAGEMENT ISSUE

Over drawn bank balance – GH¢6,286.83

1772. We noted during the audit of the project that, an

amount of GH¢6,286.83 was overdrawn on the project account



at Ecobank Ghana Limited. Further enquires made, revealed

that the project did not have any formal overdraft facility with

the bank and that this occurred as a result of payments for

expenditures through the bank which exceeded the resources

the project had with the bank.

1773. This anomaly occurred due to the manager’s inability to

monitor the payments of expenditures through the bank.

1774. There is the risk that funds allocated for carrying out

the project may not be enough for executing the project due to

high interest the overdraft may attract.


ensure cheque payments are thoroughly monitored especially

when there is no approved overdraft facility with the bank.

NATIONAL BUFFER STOCK COMPANY LIMITED

Introduction


of the National Buffer Stock Company Limited (NAFCO) for

the 18 months ended 31 December, 2012.

Basis for Qualified Opinion

1777. The company’s accounting records do not provide

sufficient evidence supporting the opening reserves. Opening

reserves stated on the balance sheet amounts to GH¢14,900,000.

However, supporting documentation was provided for

GH¢10,000,000. There were no satisfactory audit procedures

that we could have performed to obtain reasonable assurance

that the remaining opening reserves of GH¢4,900,000 were

adequately supported. As a result, we were unable to



determine whether any adjustments would be required in

respect of recorded opening reserves and the related elements

making up the balance sheet and changes in equity.

Qualified Opinion

1778. In our opinion, except for the possible effects of the

matter described in the Basis for Qualified Opinion paragraph,

the financial statement gives a true and fair view of the balance

sheet of National Buffer Stock Company Limited as at 31

December 2012, and of its profit and loss account and its cash

flows for the year then ended in accordance with Ghana

Accounting Standards.

Operational results

1779. The company recorded a Profit of GH¢2,619,846 for the

18 months’ period as compared to GH¢3,297,905 loss recorded

over 16 months’ previous period. However, a detailed

comparative analysis for both income statement and financial

position could not be established because the basis (number of

months) is not the same. The details of the company’s

performance are provided in the Table 188.

Table 188: Income statement for the 18 months period ended

31 December 2012

2012 (18 Month) GH¢

Revenue 19,242,564

Cost of Sales (14,526,340)

Gross Profit/Loss 4,716,224

Gen. and Administrative Expenses (2,113,866)

2,602,358

Other Income 17,488

Net Profit/(Loss) 2,619,846



1780. Total revenue for the 18 months’ period reviewed

totaled GH¢19,260,052. Sales of Rice accounted for 57.7% or

GH¢11,108,560 of the Total Revenue whiles the sales of yellow

maize accounted for GH¢5,343,622 or 27.7%.

1781. The sales of white maize also accounted for 13.8% or

GH¢2,655,382 of the total revenue whiles the remaining

GH¢152,488.00 representing 0.8% came from sales of soya bean

and Interest income earned on the bank accounts.

1782. Total Expenditure for the period under review which

was made up of Cost of Sales, General and Administrative

Expenses amounted to GH¢16,640,206. Cost of sales

contributed 72.9% of the total expenditure. Included in the cost

of sales is Paddy rice and yellow maize which contributed

44.4% and 28.5% respectively.

Financial position

1783. A summarized statement of financial position of the

company as at 31 December 2012 is shown in Table 189.

Table 189: Statement of Financial Position as at 31 Dec. 2012

1784. Within the 18 months’ period the company acquired

2012

GH¢

Non-Current Assets 1,028,935

Current Assets 24,695,640

Current Liabilities 1,402,634

Net Current Assets 23,293,006

Net Assets 24,321,941

Current Ratio 17.6:1



Motor Vehicles, Office Equipment, Office Furniture and Pallets

totaling GH¢1,077,969.

1785. Current Assets comprised of inventory, accounts

receivable and cash/bank balance.

1786. The liquidity position as measured by current ratio of

17.6:1 indicates that the company is in a good position to meet

its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Fixed asset register maintained by NAFCO not updated

1787. Contrary to Regulation 1g of FAR 2014 (L.I.1802) which

requires that a fixed assets register should be maintained and

kept to date at all times, we noted that the company did not

update the asset register, with assets valued at GH¢1,077,969

purchased during the period under review. In addition, there

was no information on the location of the assets.

1788. This may be due to ineffective supervision by the

management and as a result the company’s fixed asset may not

be properly monitored to safeguard abuse and misuse of the

assets. In addition, losses and damages to fixed assets may not

be identified and dealt with on a timely basis.

1789. We recommended that management should update the

fixed assets register with all assets procured in the period

indicating their location and ownership status.

1790. According to management the fixed assets register has

been updated with all new assets purchased within the period.

But current status indicated that the register was not updated.



Late payment of pension deductions resulting in penalty of

GH¢2,602.03

1791. Contrary to Section 63(1) of the National Pensions Act

2008, Act 766, we noted during our audit that pension

contributions deducted during the period were not paid on

time. As a result, NAFCO was charged GH¢2,602.03 penalties

by SSNIT. This may stifle funds for budgeted activities.

1792. We recommended that management should ensure that

pension deductions are paid to SSNIT by the 14 day of the

subsequent month as required by law to avoid imposition of

penalties.

1793. Management has accepted this recommendation for

strict compliance.

No evidence of Parliamentary approval for the setup and

release of funds for NAFCO

1794. In spite of our previous recommendation that

management should seek retrospective approval from

Parliament for the setup of the company and the release of

funds for its activities, Management had failed to seek the

necessary approval. However, management explained that the

company was established by an Executive Instrument through

the Attorney General with the ministry of Food and

Agriculture as shareholders. We still stand by our earlier

recommendation.

No evidence of proper procurement process followed in the

renovation of NAFCO Head Office.

1795. Despite our previous recommendation, that



management should investigate to ascertain the rationale

behind the selection of FH&C company Limited to carry out

the renovation works at the Head office of NAFCO,

management is yet to provide relevant documents to support

the procurement procedure followed in the award of the

contract for the renovation work.

1796. We reiterate our earlier recommendation.

Opening stated capital balance not supported

1797. Contrary to Section 66(1) of the Company Code, Act

1963 (Act 179) on what constitute stated capital, NAFCO could

not provide sufficient evidence to support the opening stated

capital of GH¢100,000 and reserves of GH¢14,900,000 reported

on the balance sheet. No alternative procedures could be

performed to confirm that the amount reported as opening

stated capital was paid by the shareholder into the accounts of

the company. It therefore suggests that the stated capital and

reserves may be misstated.

1798. Management should provide adequate supporting

documentation for the opening stated capital of GH¢100,000

and reserves of GH¢14,900,000 reported.

1799. Supporting document for GH¢10 million has been

provided and management is working to retrieve the

remaining GH¢4.9 million.

Misclassification of expenses and expenses not supported

1800. In contravention to best accounting practice, we noted

that an advance of GH¢55,989 given to Tamale office for its

operation was treated as cash on hand. At the end of the



period the expenses had been fully retired. However,

supporting document was provided for expenses amounting to

GH¢34,294 leaving an amount of GH¢ 21,695 unsupported. We

could not ascertain the validity and occurrence of expenses

amounting to GH¢21,695.

1801. We recommended that the unsupported amount of

GH¢21,695 should be refunded by the Tamale Office if

supporting documents cannot be provided.

RURAL ENTERPRISES PROGRAMME INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (LOAN NO. 841 GH)

Introduction

1802. This report is on the audited accounts of the Rural

Enterprises Programme (International Fund of Agricultural

Development (Loan No. 841 – GH) for the year ended 31

December 2014.

Operational results

1803. Details of the programme’s performance for 2014 are

shown in Table 190.


Revenue

2014

GH¢

2013

GH¢

%

Change

IFAD Loan 9,304,320 5,391,400 72.6

AFDB – Grant 3,227,270 -

GoG

Fund/Contributions

205,675 1,841,351 (88.8)

Contributions from



Participating

Entities

5,385,000 3,246,885 65.9

Other Income 8,722 -

Exchange Gain 647,740 202,853 219.3

Total Revenue 18,778,727 10,682,489 75.8

Expenditure

Equipment and

Materials

135,904 774,605 (82.5)

Vehicles and Motor

Cycles

393,526 1,505,256 (73.9)

Technical Assistance &

Studies

1,336,270 930,087 43.7

Training and Workshop

Costs

5,544,038 2,220,582 149.7

Credit funds &

Matching Grant

1,756,766 -

Salaries 5,444,615 3,368,047 61.7

Operating Expenses 2,251,142 1,181,386 90.6


Surplus 1,916,466 702,526 172.8

1804. Total Revenue of GH¢18,778,727 registered an increase

75.8% over the previous year’s figure of GH¢10,682,489. This

was due to increases in the sources of funds with Exchange

gain contributing significantly by 219.3% from GH¢202,853 in

2013 to GH¢647,740 in 2014.

1805. Total Expenditure increased by 69.0% from

GH¢9,979,963 in 2013 to GH¢16,862,261 in 2014. This was due

to149.7% increases in training and workshop cost.



1806. The program recorded an increase in surplus of 172.8%

from GH¢702,526 in 2013 to GH¢1,916,466 in 2014.

MANAGEMENT ISSUES

Late submission of quarterly reports by participating financial

institutions

1807. Contrary to Section 1.4.1 of the Manual for Rural

Enterprise Development Fund (REDF) and matching Grant

Fund (MGF), we noted that, 8 Participating Financial

Institutions (PFI) who received the REDF and the MGF on

behalf of the clients did not submit their quarterly returns to

the Programme Co-ordination and Management Unit (PCMU).

1808. Table 192 below shows the PFIs which received funds

on behalf of REP’s clients under the REDF Programme.

Region

Amt.

Disbursed

GH¢

Qtr.1

Qtr.2

Qtr.

3

Qtr.4

Yayra Rural Bank 298,080 No Yes Yes No

Amantin and Kasei

Com. Bank

342,000 No No No Yes

Sisala Rural Bank 275,088 No Yes Yes No

Afam Rural Bank 110,120 N/A N/A N/A Yes

BakwaBreman

Rural Bank

108,640 N/A N/A N/A No

OkomfoAnokye

Rural Bank

275,760 N/A N/A N/A No

Drobo Community

Bank Ltd.

177,600 N/A N/A N/A No

Sinapi Aba Savings

and Loans Ltd.

97,600 N/A N/A N/A No

Total 1,684,888



Note

N/A means disbursement was received after the quarter.

1809. This implies that, the program may not be able to

ascertain whether funds have been disbursed to clients or not.

In addition, the program may not be able to timely track or

monitor the status of loan disbursed to clients in order to take

critical program decisions.

1810. We recommended that the PCMU should step up its

monitoring efforts to ensure the PFIs submit their quarterly

returns on time.

1811. Management accepted the recommendation and stated

that they would intensify monitoring of PFI to ensure that

those who have received credit funds submit quarterly returns

regularly to compliment similar reports on credit funds

submitted to PCMU by District Business Advisory Centres

who have received credit funds.

Bank Reconciliation Statement not prepared (West Mamprusi

District)

1812. Per the Memorandum of Understanding (MOU) signed

between the District Assembly and the PCMU, the BAC is

required to prepare monthly bank reconciliation statement

which should be reviewed by the BAC Head. In addition,

copies of the Bank Reconciliation Statements should be

submitted to the PCMU with the quarterly returns.

1813. We noted that the BAC did not prepare monthly bank

reconciliation statements for the period under review.



1814. This could lead to errors in the cash book and bank

statement not being identified and corrected on time.

1815. We recommended that the BAC should ensure that

bank reconciliation statements are prepared and reviewed by

the appropriate person independent of the preparer.

1816. In response, management accepted the

recommendation and agreed to ensure that controls established

would be adhered to.

Non submission of quarterly return (West Mamprusi District)

1817. According to the Memorandum of Understanding

(MOU), the districts are required to submit quarterly returns

within a period of 10 working days after the end of each

quarter.

1818. We noted that for the period under review, the district

assembly submitted returns for only the first quarter revenues

and expenses.

1819. In the absence of financial returns from the district to

support revenue contribution and expenditure from the

participating entities, revenue and expense for the year may

not be complete.

1820. We recommended that the BAC should ensure

compliance with the tenets of the MOU. Also, the PCMU as

the Coordinating body should step up its monitoring efforts to

ensure the districts submit their quarterly returns on time.

1821. Management responded that they would step up



monitoring of submission of monthly returns in 2014 and had

instituted a sanction regime. Districts who submit returns late

or fail to submit monthly returns are queried and their request

held back until they submit all outstanding returns.

MINISTRY OF EMPLOYMENT, LABOUR AND MANPOWER

NATIONAL PENSION REGULATORY AUTHORITY

Introduction


National Pension Regulatory Authority for the period 1

January 2014 to 31 December 2014

Operational results

1823. The 2014 financial year of the Authority ended with a

surplus income of GH¢889,359.00 as compared to Ghc40,

592.00 in 2013. A summary of the Income and Expenditure for

the year is as shown below.

Income statements for the years 2013 and 2014

Income 2014

GH¢

2013

GH¢

%

Change

Govt Subvention 1,366,623 1,276,545 7.1

Other Income 2,550,800 1,139,377 123.9

Total Income 3,917,423 2,415,922 62.2

Expenditure

Employee

Compensation

1,058,431 970,685 9.0

Goods & Services 1,969,634 1,404,646 40.2


Surplus 889,359 40,592 2,091



1824. Total Income for the Authority increased by

GH¢1,501,501 representing 62.2% from GH¢2,415,922 in 2013 to

GH¢3,917,423 in 2014. The above increase was largely due to

an increase in Internally Generated Fund (IGF) by

GH¢1,721,918 representing 210.9% from GH¢816,580 in 2013 to

GH¢2,538,498 in 2014.

1825. Total Expenditure of the Authority also increased by

GH¢652,735 representing 27.5% from GH¢2,375,331 in 2013 to

GH¢3,028,066 in 2014. An increase in Goods and Services of

GH¢564,988 representing 40.2% from GH¢1,404,646 in 2013 to

GH¢1,969,634 in 2014 accounted for the above increase in Total

Expenditure in 2014.

Financial position

1826. The book value of fixed assets of the Authority

decreased by GH¢112,529 representing 16.6% from GH¢676,024

in 2013 to GH¢563,495 in 2014. Although the Authority

acquired some assets amounting to GH¢133,909 in 2014,

accumulated depreciation of GH¢766,251 accounted for the

above decrease.

1827. Current Assets increased by GH¢372,947 representing

40.1% from GH¢928,996 in 2013 to GH¢1,301,943 in 2014. The

increase was due to the prepayment in rent amounting to

GH¢502,425 for the office accommodation of the Authority.

1828. Current Liabilities decreased by GH¢628,942

representing 73.1% from GH¢860,894 in 2013 to GH¢231,952 in

2014. The payment of Temporary Pensions Fund Account

(TPFA) amounting to GH¢499,032 accounted for the decrease

in 2014.



1829. The Current ratio of 5.6:1 as at the end of the year

indicates that the Authority would be able to meet its current

liabilities when they fall due.

MANAGEMENT ISSUES

Overdue Loans – GH¢195,390.92

1830. Regulation 104(c) of the Financial Administration

Regulations (FAR) 2004, (L.I.1802) requires that a Head of

Department authorized to administer a class of advances

should ensure that advances are duly recovered in accordance

with the agreement relating to them.

1831. Our review of the payroll records indicated that the

Authority advanced an amount of GH¢568,797.92 from the

Operational Account to the staff between March 2011 to April

2013 pending their migration onto the Government Payroll.

The staff signed an undertaking to fully refund the advances to

the Authority when paid full salaries.

1832. A further review revealed that, even though staff were

paid all salary arrears immediately they were migrated onto

the Government payroll, management had recovered only

GH¢373,407.62 of the amount leaving a balance of

GH¢195,390.25 unsettled by 26 members of staff.

1833. The occurrence was due to management’s failure to put

in place adequate measures to recover the advances from those

involved.



1834. Management explained that all efforts is being made to

ensure the repayment of the advances.

1835. The unsettled amount of GH¢195,390.25 could put a

constraint on the planned activities of the Authority.

1836. We advised and management agreed to inform the

Controller and Accountant-General to deduct the unpaid

amount directly from the salaries of the affected staff.

Overdue Advances from Separated Staff – GH¢47,569.62

1837. Contrary to Regulation 104(c) of the FAR, 2004 which

requires heads of departments, authorized to administer a class

of advances to ensure that the advances are duly recovered in

accordance with the regulations or agreements relating to

them, management failed to recover outstanding advances

totaling GH¢47,569.62 from two officers who resigned from the

Authority as detailed below:

Name Amount (GH¢)

i. Sam Pee Talley 32,748.00

ii. Bill Alogo Aedo 14,821.62

Total 47,569.62

1838. The omission was because management did not ensure

that the affected officers honor their debt obligations to the

Authority before accepting their resignation. The Authority

would be denied funds for planned activities if the amount is

not recovered.

1839. We recommended that management steps up effort to

recover the amount failing which the authorizing and



approving officers, whose inaction resulted in the lapse should

be surcharged with the amount involved.

1840. Management in response promised to ensure that the

officers refund the balance of advances granted them.

Payment of Unapproved Staff Benefits GH¢139,648.86

1841. Section 5 (a) of the Retention of funds Act, 2007 (Act

735) provides that, Internally Generated Funds (IGF) can only

be utilized when the activities on which the expenditure will be

incurred have been programmed and approved in that

Ministry’s, Department’s and Agency’s expenditure budget by

Parliament.

1842. Notwithstanding the aforementioned Act, we noted

that the Authority authorised the payment of an amount of

GH¢139,648.86 representing 5.5% of its IGF as end of year

bonus to all 44 employees.

1843. We consider the payment inappropriate as it was not

budgeted for and was not included in benefits approved by the

Minister of Finance. The practice which constituted

misapplication of funds could impact negatively on the

operations of the Authority if not checked.

1844. We recommended that management should seek

approval to regularise the payment or the amount should be

recovered from the staff and paid into the Authority’s account.

We also advised management to in future strictly comply with

Regulation 5 of the Retention of Funds Act before payment of

such allowances or stand the risk of been sanctioned.



1845. Management responded that the Board gave approval

for the payment of 10% of Basic Salary as Christmas package

from the IGF.

1846. We could not accept management’s explanation since

the payment is irregular and contravenes the Retention of

Funds Act. We therefore reiterated our earlier

recommendation.

Failure to keep ledgers for Staff Debtors

1847. A review of the debtors’ schedule showed that 25 staff

members owed a total amount of GH¢110,286.00 as salary

advances and other loans as at 31 December 2014.

1848. We however noted that the Accounts office did not

maintain personal ledgers for the staff debtors to enhance

proper monitoring of the recoveries of the loans granted to staff

members.

1849. The Finance Manager explained that the debts owed by

the staff members were salaries paid to them on account which

were supposed to be refunded in full upon the payment of

their salary arrears by the Controller & Accountant-General

Department (C&A-GD), but most of them failed to comply

with the directives upon receiving the salaries from C&A-GD.

1850. The Accounts Office’s failure to keep personal ledgers

for staff debtors made it cumbersome in tracking refunds made

by staff debtors in order to ensure full recovery of loans

granted.



1851. We advised management to ensure that personal

ledgers are maintained for staff debtors without further delay

to record all refunds month after month to facilitate proper

monitoring and ensure full recovery of all loans to avoid loss of

funds to the Authority and to the state.

1852. Management responded that they could not maintain

the individual staff debtor’s ledger due to limited staff

strength. They however gave the assurance that with the

acquisition of SAGE 300 Accounting software, the maintenance

of the ledger will be taken care of.

Absence of ARIC

1853. Section 30 (1) of the Audit Service Act 2000, (Act 584)

mandates the ARIC to ensure the head of the organization

pursues the implementation of matters in all audits and other

monitoring reports as well as the Auditor-General’s reports

endorsed by Parliament. The ARIC is also enjoined under

section 30 (2) (b) of the Act to issue annual statements showing

the status of the implementation of recommendations made in

audit and other monitoring reports.

1854. Contrary to the above regulation, we observed that the

Authority had not set up ARIC since the inception of its

operations in 2012. The absence of an ARIC could result in

non-implementation of recommendations in audit and other

monitoring reports.

1855. We attributed the omission to management’s failure to

comply with the Audit Service Act.



1856. We recommended that management should liaise with

the Board to set up an ARIC without further delay to see to the

implementations of audit recommendations.

1857. Management stated that an ARIC was formed by the

Board of Directors on 26th February 2015 but its inauguration

was put on hold pending the final consultations.

1858. We urged management to petition the Board to fast

track the final consultation process for the inauguration in

order for the Committee to start its work.

NATIONAL VOCATIONAL TRAINING INSTITUTE

Introduction


National Vocational Training Institute for the period 1 January


Operational results

1860. The Institute’s operations for the year 2012 ended with

a surplus of GH¢176,763.87, thus registering an increase of

645.1% or GH¢153,037.35 over the 2011 figure of GH¢23,726.52.

The performance indicators are as shown in Table 193.

Table 193: Income statement for the year ended2012

Income 2012 GH¢

2011 GH¢

% Change

Subvention 2,532,705.21 996,295.49 154.2


2,572,125.13 1,882,476.71 36.6

Total 5,104,830.34 2,878,772.20 77.3



Expenditure

Employee compensation

2,665,880.16 1,103,335.74 141.6

Goods and services 2,262,186.31 1,751,709.94 29.1

Total 4,928,066.47 2,855,045.68 72.6

Excess in income over

Expenditure/(Deficit)

176,763.87

23,726.52

645.1

1861. Total Income of the Institute increased by 77.3%; from

GH¢2,878,772.20 in the previous year to GH¢5,104,830.34 in

year under reviewed. This was mainly due to increase of

154.2% in Government subvention (Employees Compensation)

from GH¢996,295.49 in 2011 to GH¢2,532,705.21 in 2012. The

placement of the Institute on the Single Spine Salary Structure

resulted in the increase

1862. Total Expenditure also saw a rise by a margin of 72.6%

from GH¢2,855,045.68 in 2011 to GH¢4,928,066.47 in 2012. This

was as a result of 141.6% increase in employee’s compensation

from GH¢1,103,335.74 in 2011 to GH¢2,665,880.16 in 2012.

Financial position

1863. The financial position as at 31 December 2012 is shown

in Table 194 below.

2012 GH¢

2011 GH¢

% Change

Non-Current Asset

Property, Plant & Equipment

2,533,230.61 2,469,355.50 2.6

Work-in-Progress 288,040.86 140,195.78 105.5

Total 2,821,271.47 2,609,551.28 8.1



Current Assets

Inventory-Printed Material

& Stationery

76,607.20

94,760.00

(19.2)

Accounts receivables 115,416.51 57,271.10 101.5

Cash & bank Balance 120,719.13 209,831.20 (42.5)

Total 312,742.84 361,862.30 (13.6)

Current Liabilities

Account payables 44,901.63 59,064.77 (24.0)

Net Asset 3,089,112.68 2,912,348.81 6.1


1864. Non-Current Assets registered an 8.1% increase from

GH¢2,609,551.28 in 2011 to GH¢2,821,271.47 in 2012. The rise

was due to 105.5% increase in work-in-progress from

GH¢140,195.78 in 2011 to GH¢288,040.86 in 2012.

1865. Current Assets of the Institute also decreased by of

13.6%; from GH¢361,862.30 in 2011 to GH¢312,742.84 in 2012,

whilst the Accounts Receivables saw a rise of 101.5% from

GH¢57,271.10 in 2011 to GH¢115,416.51 in 2012. This was as a

result of increase in staff loans and advances.

1866. Current Liabilities also decreased by 24% from

GH¢59,064.77 in 2011 to GH¢44,901.63 in 2012. This was due to

part settlement of the Institutes’ debt. Net asset increased by

6.07% from GH¢2,912,348.81 in 2011 to GH¢3,089,112.68 in

2012.

1867. Liquidity outlook as measured by a current ratio of

7.0:1 (6.1:1 in 2011) remains strong, indicating the ability of the



Institute to discharge its short term obligations when they fall

due.

MANAGEMENT ISSUES

Non recovery of debts- GH¢30,856.40

1868. Regulation 113(1) of FAR, 2004 (L.I. 1802) requires that

recoveries from official salaries shall commence from the salary

of the next complete month after the month in which the

advance was made. Regulation 112 of the FAR further provides

that recoveries can be made by any other means which may

appear to be feasible should deduction from the borrower’s

salary at source fails.

1869. We observed that, 12 out of 42 officers who were

granted loans/advances from the Institute’s IGF totalling

GH¢32,582.04 between 2011 and 2012 paid back only

GH¢1,725.64 leaving GH¢30,856.40 in arrears as at 31

December 2012. The delay in recoveries ranges between one

and two years’ period.

1870. We further noted that the 12 officers serving private

loans, were granted additional advances.

1871. The foregoing situation which contravened the above

Regulation was made possible due to management’s lack of

vigilance to determine staff who have contracted private loans

from companies which were being deducted at source by

C&AG from their salaries. It was therefore not possible to

effect the deduction through C&GD as they had exceeded the

maximum deductions of 40% from staff salaries.



1872. The lapse could be attributed to management’s failure

to apply Regulation 112 (b) of the FAR, 2004 by ensuring that

beneficiaries make direct payments in anticipation of the

commencement of deductions by the Controller and

Accountant-General. Besides the defaulters prefer servicing

the private loans rather than the advances since management

did not put any pressure on them.

1873. Non recovery of these advances resulted in a huge

debtors’ balance of GH¢110,784.94 as at the end of the 2012

financial year. The delay in payment of these debts has also

deprived other staff of the loan facility.

1874. We advised and management accepted to introduce

and strictly enforce a recovery schedule to ensure timely

settlement of the outstanding advances through direct payment

by affected staff. Additionally, management should guard

against granting of loans to staff servicing an existing loan.

MINISTRY OF JUSTICE AND ATTORNEY GENERAL

COPYRIGHT OFFICE

Introduction


Copyright Office for the period 1 January 2013 to 31 December

2014



Operational result

Income and Expenditure Statement for 2013-2014

Income 2014

GH¢

2013

GH¢

Variance Variance

%

change

GOG 376,484.63 458,968.45 (82,483.82) (18)

IGF 32,775.00 33,372.00 (597) (1.8)

Other

Income(B.L)

139,180.10 -

Donation 10,686.00 -

Total Income 419,954.63 631,520.55 (211,565.92) (33.5)

Expenditure

Compensation For Employees

286,561.46 282,473.86 4,087.6 1.5

Goods And Services

207,750.91 162,712.19 45,038.72 27.7

Depreciation Of Assets

48,033.40 46,177.40 1,856 4.0

Transfer 11,240.00 11,240.00 -

Total

expenditure

553,585.77 491,363.45 62,222.32 12.7

1876. The comparative figures for 2014 and 2013 financial

year shown above shows a decrease of (33.5%) in 2014 being

total income. This significant fall is due to other income in the

form of blank levy which was not received during the period of

2014. GOG also reduced by GH¢82,483.82 been 18% over 2014.

1877. Total Expenditure shows an increase of GH¢62,222.32

being 12.7% over 2013. This occurrence is due to a significant

difference of GH¢45,038.72 in goods and service.

Compensation for employees rose slightly to GH¢286,561.46 in

2014 form GH¢282,473.86 in 2013, showing a difference of 1.5%.



Financial position


in the Table 195 below.

2014

GH¢

2013

GH¢

%

Change

Non-Current Assets 128,044.02 161,041.42 (20.5)

Current Assets 3,295.36 101,066.60 (96.7)

Current Liabilities 2,871.50 - -

Net Current Asset 423.86 101,066.60 (99.6)

Total Net Assets 128,467.88 262,108.02 (51)

Current Ratio 1.1:1

1879. Non-Current Asset registered a decrease of

GH¢32,997.04 from GH¢161,041.42 in 2013 to GH¢128,044.02 in

2014. This is due to high depreciation rate of 50% per annum

on computers.

1880. Current Assets, which were mainly made of bank

balances decline by 96.7%, from GH¢101,066.60 in 2013 to

GH¢3,295.36 in 2014.

1881. Liquidity ratio for 2014 stood as 1.1:1, indicating that

Copyright has the ability to meet it short term liabilities when

due.

MANAGEMENT ISSUES

Non-existence of risk management team

1882. The recent disasters in respect of fire outbreak,

information system breakdown and other environmental

hazards in institutions require that management assess,



identify and control risk and also plan for appropriate

response that mitigate the impact of occurrence of risk.

1883. We observed that management of Copyright Office has

not constituted or developed any risk management policy or

disaster recovery plan to build risk awareness into day to day

activities of the Office and has no backup of safety for sample

products of registered persons (right owners). Such properties

are being kept in the registry located at the office.

1884. There is no identifiable line of management in the

organizational structure that is responsible for risk

management of the Office.

1885. The effect is that in the event of any risk occurring

either in the form of information system breakdown or natural

disaster, the impact on the Office will be disastrous since right

owners will not be able to fall on the Office for copies of their

product should they be in need.

1886. We recommended that management should develop an

appropriate risk policy and ensure that risk awareness is

embedded in management’s culture. Also management should

ensure that a backup system is established for products of right

owners.

1887. Management accepted our recommendation to take

necessary steps to develop an appropriate risk policy and

establish a backup for office’s information systems.



1888. Our further verification showed that information on

registered works in the database had been backed up on

external hard drives. Management is however in the process of

developing risk management policy.

Poor supervision of store records

1889. Regulation 1 of the Financial Administration

Regulations 2004 (L.I. 1802) requires any public officer who is

responsible for the conduct of financial business on behalf of

Government of Ghana to keep proper records of all

transactions.

1890. We observed that contrary to the above provisions, the

supervising officer failed to sign his column of the Store Issue

Vouchers.

1891. The anomalies could be attributed to lack of

supervision by the accountant as supervising officer.

1892. The situation could lead to pilfering, additions and

altering of the requisition made if not addressed.

1893. We recommended that the accountant should exercise

supervisory authority to prevent possible pilfering of stores

and subsequent loss to the copyright.

1894. Our recommendation was well noted and management

added that the accountant has been instructed to exercise strict

supervision over the work of the senior supply officer.



Unearned salary GH¢14,556.92

1895. Best accounting practices of salary stoppage could be

done by Ministries, Departments and Agencies (MDA’s)

through submission of input forms or letters to the Personnel

Processing Section (PPS), Controller and Accountant-General

Department (CAGD) or employees’ Bank whenever personnel

retires, vacate post, resigns or deceased.

1896. We noted during our audit that, Cynthia Dordoye with

Staff No.892416, who resigned on 26th September 2012 has

been paid a total of GH¢11,054.61, from September, 2012 to

September, 2013.

1897. Also we noticed that, Joseph Gberbi with staff No.

711288 who vacated post in November, 2012 has been paid a

total sum of GH¢3,502.31 from November, 2012 to November,

2013.

1898. This occurred as a result of failure on the part of

Management to follow the due process for the deletion of

names from the payroll.

1899. Unearned salary paid to Cynthia Dorddoye and Joseph

Gberbi totaling GH¢14,556.92 constituted a financial loss to the

State and the Division’s allocation for personnel emoluments

was also over-estimated during that period.

1900. We therefore recommend that, the acting Administrator

should make the effort to retrieve the unearned salary from the

two officers concerned or from their respective Banks since

Management has notified the banks and pay back to



Government Chest. Failure of which the acting Administrator

should be surcharged.

1901. Management in their response stated that letters will be

sent to the respective banks to furnish the office with

information on action taken by way of paying the unearned

salary back to chest.

1902. Management had since retrieved an amount of

GH¢3,503 from Joseph Gberbi and had paid to CAGD

Suspense Account number 1018131479077 at Bank of Ghana.

Management is still expecting a response from the bank of

Cynthia Dorddoye.

ECONOMIC AND ORGANIZED CRIME OFFICE (EOCO)

Introduction


Economic and Organized Crime Office for the period 1 January

2013 to 31 December 2014

Operational results

1904. Total Revenue made up of Government Subvention and

other revenue grew by 23.9% from GH¢11,274,927.70 in 2013 to

GH¢13,971,149.58 in 2014. The growth was mainly due to a

2.7% increase in Government subvention from

GH¢11,274,927.70 in 2013 to GH¢111,574,588.78 in 2014, an

increase of GH¢299,661.08. Other revenue of GH¢2,396,560.80

recorded in 2014 also contributed to the revenue growth. The

main performance indicators for the period are shown in Table

196.




2014

GH¢

2013

GH¢

%

hange

Revenue

GoG Subvention 11,574,588.78 11,274,927.70 2.7

Other Revenue 2,396,560.80

Total Revenue 13,971,149.58 11,274,927.70 23.9

Expenditure

Compensation 11,370,737.05 10,759,927.70 5.7

Goods and

Services 1,675,503.87 2,128,085.27 (21.3)

Total 13,046,240.87 12,888,012.97 1.2

Excess of Revenue 924,908.71 (1,613,085.27) (157.3)

1905. Total Expenditure of EOCO grew marginally by 1.2%

from GH¢12,888,012.97 in 2013 to GH¢13,046,240.87 in 2014.

The increase was mainly due to a 5.7% growth in

Compensation expenses which went up by GH¢610,809.35

from GH¢10,759,927.70 in 2013 to GH¢11,370,737.05 in 2014.

The increase was due to recruitment of new staff in 2014.

1906. At the end of the financial year, the office recorded a

surplus of GH¢924,908.71 in 2014 as against a deficit of

GH¢1,613,085.27 in 2013.

Financial position

1907. A summarized financial position of EOCO as at 31

December 2014 is provided below:



2014

GH¢

2013

GH¢

%

Change

Non-Current Assets 6,904,377.09 7,654,291.34 (9.8)

Current Assets 15,694,465.38 3,131,432.41 401.2

Total Assets 22,598,842.47 10,785,723.75 109.5

Current Liabilities 141,254.63 141,254.63 0.0

Long Term Liability

(Exhibits) 13,866,661.09 2,978,451.07 365.6

Total Liabilities 14,007,915.72 3,119,705.70 349.0

Net Assets 8,590,926.75 7,666,018.05 12.1


1908. Property, plant and equipment decreased slightly by

9.8% from GH¢7,654,291.34 in 2013 to GH¢6,904,377.09 in 2014

a decrease of GH¢749,914.25. The decrease was due to

depreciation.

1909. Current Assets however increased significantly by

401.2% from GH¢3,131,432.41 in 2013 to GH¢15,694,465.38 in

2014. This was mainly due to increase in cash and bank

balances from GH¢3,126,854.78 in 2013 to GH¢15,689,887.75 in

2014, an increase of GH¢12,563,032.97.

1910. Total Liabilities increased from GH¢3,119,705.70 in 2013

to GH¢14,007,915.72 in 2014 an increase of 349.0%.

1911. Current Liabilities remained stagnant at GH¢141,254.63

for the two successive years, 2013 and 2014.

1912. Long Term Liabilities (Exhibits) which are moneys held

in trust pending final determination by the court increased



significantly by 365.6% from GH¢2,978,451.07 in 2013 to

GH¢13,866,661.09 in 2014.

1913. The liquidity position of EOCO stood at 111.1:1 in 2014

as against 22.2:1 in 2013. This is an indication that the office is

in a favorable position to meet its obligation as and when they

fall due.

MANAGEMENT ISSUES

Funds transferred in excess of court order -USD 619,039.16

1914. Regulation 1 (1) of the FAR 2004, (L.I. 1802), enjoins any

public officer concerned with the receipt, custody and

disbursement of public and trust funds to keep proper records

of the transactions and produce such records for inspection

when called upon to do so by the Auditor-General.

1915. In spite of the aforementioned regulation, we observed

that an amount of USD 986,024.16 and GH¢646,188.35 were

transferred from the Exhibits Dollar and Cedi Accounts

respectively in April 2013 to an applicant without an

authorized payment voucher, supported by a memorandum.

We further noted that, the transfer which was made based on a

court order was directly transferred by the Bank of Ghana to

the applicant’s account on the order of Operations Department

without informing the Accounts Section.

1916. Additionally, we noted that, instead of US$366,985.00

and GH¢646,188.35 ordered by the court for payment to the

applicant, an amount of US$986,024.16 and GH¢646,188.35



were transferred to him, leading to an excess transfer of

US$619,039.16 by the Bank.

1917. Lack of communication between the Operations

Department and the Accounts Department made it possible for

the Accountant not to detect the overpayment early for

correction even though regular reconciliation of the exhibit

account was done. The Accountant did not also take proactive

measures by seeking clarification from the Operations

Department when he noticed that amounts had been

transferred from the account without his knowledge.

1918. The excess funds of US$619,039.16 transferred denied

the state of the use of its scarce foreign exchange.

1919. We recommended that management track the applicant

for recovery of the amount involved with interest at the

prevailing bank rate. Management should also sanction the

officer whose inaction resulted in the anomaly.

1920. Management responded that, the transfer was done

directly by the Bank of Ghana apparently in pursuant to Court

Order. It further stated that, “evidence clearly shows that, the

court order was for the sum of US$366, 985.00 and that the

transfer made by the Bank of Ghana was in excess of the

amount ordered”. Management has written to the Governor of

Bank of Ghana to intervene in the matter.

1921. We urged management to make strenuous effort to

recover the US$619,039.16 transferred in excess from the

applicant.



Unearned salaries-GH¢22,067.78

1922. In contravention of Regulation 297 of L.I. 1802, we

observed that six separated staff who retired in 2013 and 2014

enjoyed unearned salaries totaling GH¢22,067.78. Even though

management made efforts and informed the Controller and

Accountant-General Department (C&A-G Dept.) to delete their

names from the pay roll, it took a month in each case for the

deletion to be effected

1923. The anomaly resulted from the delay by the C&A-G

Department to effect the deletion promptly as well as

management’s failure to notify the bankers of the affected staff

for the stoppage of their salaries.

1924. We recommended that efforts be made by management

to recover the total unearned salary of GH¢22,067.78 and pay

same to Government chest and obtain a Treasury Receipt to

support the payment.

1925. Management indicated that most of the separated staff

involved are deceased and it’s also difficult tracing those alive.

It has therefore sought the assistance of BNI to help recover the

debts.

Overdue debt - GH¢4,577.63

1926. Regulation 231 (b, i) of the FAR 2004 categorized losses

to include, revenue losses which may arise from uncollectable

revenue when debts due to government cannot be collected by

reason that the debtor cannot be traced or is insolvent. It is

therefore expected that management put in measures that

would monitor staff debtors and the recovery process to avoid

loss.



1927. On the contrary, we observed that an amount of

GHȼ4,577.63 representing staff debtors had remained on the

statement of financial position for the past five years without

any movement. Further investigations revealed that the

amount had been in the account since 2009 as salary advance to

staff.

1928. The schedule officer explained that detailed

information on the debtors was not handed over to him when

he took over; a situation which contravenes Regulation 1(5 c) of

the FAR which requires that an officer handing over financial

and accounting duties to a relieving officer shall prepare and

sign a statement in triplicate showing details of all pending

financial business, including outstanding audit queries.

1929. We attributed the lapse to management’s failure to

ensure that proper handing over was done in compliance with

Regulation 1(5), (c) of the FAR.

1930. The Organization stands the risk of losing GHȼ4,577.63

which could have been used in advancing loans to other staff

to alleviate their hardship. We advised management to

intensify efforts to trace the debtors and recover the amount

involved and our office informed for verification.

1931. Management in response stated that it has identified

the debtors and noted that all of them were separated officers

of which some had passed on. A follow up indicated that

GHȼ2,955 of the amount have been recovered leaving a balance

of GHȼ 1,271.00 which management claimed the officers

involved are deceased.



1932. We advised management to pursue recovery of the

debts once the affected officers had been identified or seek

authority from the Ministry of Finance through the Sector

Ministry with adequate justification for a write off of any

irrecoverable debt.

Reliance on unapproved Policies

1933. It is a fundamental requirement for a growing

institution, which uses Information Technology and a fleet of

vehicles to manage its operations to adopt an ICT Policy and

Transport Policy respectively. The policies are to ensure that

the organization’s objectives are accomplished in a timely

manner.

1934. We noted that the Economic and Organized Crime

Office (EOCO) operated and conducted business with a draft

ICT, Estates and Transport Policy during the period of audit.

These documents are yet to receive the governing board’s

approval.

1935. The lapse which is due to management’s failure to push

for the Board’s approval would deny the office the full benefit

of investment in formulating the ICT policies.

1936. We advised that, the ICT, Estates and Transport Policies

should be given the needed approval by the governing board

to make them operational and give them a legal backing.

Management accepted our recommendation and added, “it will

push for the approval of these policy documents”



LEGAL AID SCHEME

Introduction

1937. This report is on the audited accounts of the Legal Aid

Scheme for the period 1 January 2013 to 31 December 2014.

Operational results

1938. The Legal Aid Scheme financial year for 2014 ended

with a deficit of GH¢8,872.64 as compared to a surplus of

GH¢176,241.85 in 2013. Table 197 is the comparative Table of

the Income and Expenditure for the year 2014.

Table 197: Comparative Table of the Income and Expenditure –

2013 to 2014

Income

2014

GH¢

2013

GH¢

%

Change

Subvention 2,149,999 3,028,501 (29.0)


Fund 0 1,800 (100.0)

Donations received 164,670 851,495 (80.7)

Total Income 2,314,669 3,881,796 (40.4)

Compensation for staff 1,922,039 2,594,684 (25.9)

Goods and Services

(IGF) 270,391 334,170 (19.1)

Assets 131,112 776,698 (83.1)


Surplus/Deficit (8,873) 176,242 (105.0)

1939. Total Income registered a reduction of GH¢1,567,127 in

the year under review. The decrease was due to the Scheme’s

inability to generate any Internally Generated Fund for the year



ended 2014 as compared with GH¢1,800 realised in the year

2013. This is attributed to the non- submission of returns from

the regional offices for incorporation in the Scheme’s final

accounts.

1940. Government subvention for 2014 also decreased by

GH¢878,502 due to lack of release of funds for various activities

under Goods and Services. Donation received also reduced

due to fewer activities which were supported by the Donors in

2014 compared to 2013.

1941. The total expenditure on Goods and Services also

decreased by GH¢63,782 which represented 19.1% over the cost

incurred in 2013 due to reduction in government releases.

Financial position

Details 2014

GH¢

2013

GH¢

%

Change

Current Assets 344,306 340,942 1.0


Net Assets 338,884 339,742 (0.3)

Total Assets 338,884 339,742 (0.8)

Current ratio 63.5 : 1 284.1 :1 (74.3)

1942. Current Assets increased marginally by 0.92% from

GH¢340,942 in 2013 to GH¢344,306 in 2014. The increment was

as a result of marginal increase in bank balance from

GH¢265,562 in 2013 to GH¢287,975.

1943. The Scheme’s current liabilities which comprise mainly

remittance to the Ghana Revenue Authority also increased to



GH¢5,422 due to non-remittances to the Commissioner of

Domestic Tax Revenue Division.

1944. The current ratio of 63.5:1 in 2014 of the Scheme

reduced from 284.1:1 in 2013to. The ratio shows that the

Scheme would be able to settle all account payables when due.

MANAGEMENT ISSUES

Unearned salaries - GH¢6,958.27


Regulation (FAR) 2004,(L.I.1802) enjoins a head of department

to immediately stop the payment of salary to a public officer

who, resigned or retired, dies or absents himself from duty

without leave or reasonable cause for a period as stipulated in

the administration regulation of the establishment.

1946. Contrarily, our audit disclosed that two separated

officers, Frederick Faidoo and Robert Mensah enjoyed

unearned salaries totalling GH¢7,455.90. Frederick Faidoo was

dismissed whilst Rebert Mensah resigned as indicated in the

Table 198.

Table 198: Separated staff

Name Type of separation

Date Of Separation

Date Of Deletion

No. of Months Delayed

Unearned salary GH¢

Frederick Faidoo

Dismissal 03/02/14 01/07/2014 5 months 6,485.87

Robert Mensah

Resignation 15/02/12

1/4/2014 1 months 472.40

Total Unearned Salary 6,958.27



1947. Though management notified the Controller and

Accountant-General for the deletion of the names of the

separated staff from the mechanised payment voucher, their

inability to inform the bank promptly to stop the payment

caused the anomaly which resulted in the loss of GH¢6,958.27.

1948. We recommended that efforts be made by management

to recover the total amount of GH¢6,958.27 from the two

officers, pay same to Government chest and obtain a Treasury

receipt to support the payment failing which the Accountant,

whose negligence contributed to the payment should be held

liable for the refund.


Staff Loan -GH¢91,969.60

1950. Regulation 179 of the FAR provides that a head of

department may not authorise payment to be made out of

funds earmarked for specific activities for purposes other than

those activities.

1951. In contravention of the above stated regulation,

management granted staff advances or loans amounting to

GH¢ 91,969.60 to 33 employees from Good and Services which

have been earmarked for specific purpose.

1952. Since the organisation had no approved budget for staff

advances or loans, the practice constitutes misapplication of

funds. We were of the view that misapplication of funds could

impact negatively on the operations of the organisation. This

could also prevent the Organisation from executing their

planned programmes.



1953. We therefore advised management to desist from the

practice.

MINISTRY OF TOURISM, CULTURE AND CREATIVE ARTS

(MOTCCA)

GHANA TOURIST BOARD

Introduction

1954. This report is on the audited accounts of Ghana Tourist

Board for the year ended 31 December 2011.

Operational results

1955. Details of the operations are shown in the Table 199.

Table 199: Statement of Income and Expenditure for 2011

Income 2011

GH¢

2010

GH¢

%

Change

Government Grant 3,824,569 2,877,159 32.9

Other Income 1,092,351 533,364 104.8

Total Income 4,916,920 3,410,523 44.2

Expenditure

Staff Cost 2,602,955 1,534,754 69.6

Administrative Cost 1,059,713 780,234 35.8

Service Activities Cost 1,341,081 1,446,684 (7.3)

Depreciation 267,189 213,577 25.1

Financial Cost 5,025 1,977 154.2


Deficit (359,043) (566,703) (36.6)



1956. Total Income registered an increase of 44.2% from

GH¢3,410,523 in 2010 to GH¢4,916,920 in 2011. This was mainly

due to a 104.8% increase in other income from GH¢533,364 in

2010 to GH¢1,092,351 in 2011.

1957. Expenditure incurred in 2011 totaled GH¢5,275,963 as

against GH¢3,977,226 in the previous year representing an

increase of 32.7%. The expenditure component included: staff

cost of GH¢2,602,955 (2010: GH¢1,534,754) representing 69.6%

increase and Administrative cost of GH¢1,059,713 (2010:

GH¢780,234) representing a rise of 35.8%.

1958. In the year 2010, the deficit was GH¢566,703 as against

a deficit of GH¢359,043 in 2011 representing a decrease of

36.6%.

Financial position


in Table 200.


2011

GH¢

2010

GH¢

%

Change


Current Assets 370,751 303,842 22


Net Current Assets (1,840,594) (1,258,039) 46.3

Accumulated Fund 997,087 1,356,127 (26.5)




1960. Non-Current Assets increased by GH¢223,511 or 8.6%

in 2011 mainly due to addition to property, plant and

Equipment for the year.

1961. Current Assets increased by 22% from GH¢303,842 in

2010 to GH¢370,751 in 2011. Current Assets was made up of

Bank and Cash balances of GH¢93,920 and debtors balance of

GH¢276,831 for the year under review.

1962. Current Liabilities recorded an increase of GH¢649,464

or 41.6% from the previous year’s amount of GH¢1,561,881 to

GH¢2,211,345 in 2011. This was due to increase in creditors

and accruals figure.

1963. The liquidity position as measured by a current ratio of

0.2:1 for both 2011 and 2010 financial years indicates that

Ghana Tourist Board cannot meet its short term obligations as

they fall due.

MANAGEMENT ISSUE

No Title Deeds for the head office land

1964. Land title certificate must be obtained from the Land

Title Registry to confirm ownership of land acquired.

1965. Contrarily, we observed that the organization does not

have title certificate for the land that the head office is situated

on. There is no evidence that the land and the property belongs

to the organization.

1966. We recommended that management must ensure that

the land is properly registered.



1967. Management stated that the estate officers are liaising

with Lands Commission for the registration of the land.

Non-remittance of SSNIT contribution and withheld taxes –

GH¢479,163

1968. Contrary to Internal Revenue Act 2000(Act 592) Section

87(1), and SSNIT law, we observed that PAYE and 5% taxes

withheld of GH¢215,924 and GH¢57,880 respectively, as well as

GH¢205,359 being social security contribution deducted were

not remitted to the appropriate statutory bodies on due dates.

1969. This implies that the Board is flouting the laws

governing the payment of taxes and social security

contribution which could attract sanctions from the

appropriate bodies.


the outstanding arrears are paid to avoid payments of penalties

and prosecution.

1971. Management responded that the payment would be

made by the Controller and Accountant-General Department.

Management further stated that, they have requested a total

amount of GH¢186,000 from the Ministry of Finance and

Economic Planning which has already been approved. Upon

release of the funds, they will pay off the withholding tax

indebtedness.

Receipts of revenue not Lodged before disbursements

1972. Our examination of receipts and lodgements of revenue

in all the regions revealed that funds received were not banked



before disbursement in contravention of regulation 18 of the

FAR.

1973. Management explained that the funds were used

pending re-imbursements from head office.

1974. Management’s action contravenes Regulation 8(1) of

the FAR 2004 (L.I.1802) which is a breach of financial

discipline. Sanction for breach of financial discipline shall

include reprimand and suspension among others.


receipts are banked intact and payments made only from

moneys disbursed by head office. Additionally, staff who

receive funds are made aware of the provision in the law.

1976. Management stated that, monthly returns submitted

from the regions are being monitored.

Internal Audit Section

1977. Section 16(3) of the Internal Audit Act, state that an

internal audit unit established under subsection (1) shall in

accordance with the Act and standards and procedures

provided by the Agency, carry out an internal audit of its MDA

or MMDA and shall submit reports on the internal audit it

carries out to the Director-General of the Agency.

1978. Our review of the Internal Audit Department revealed

that the unit did not have an audit programme guiding its

operations. There was no evidence to prove that the section

performed any post audit by examining entries in the cash



books, postings into the ledger, trial balance extracted and the

draft financial statements prepared.

1979. This implies that the audit section did not assist

management of the Board to ensure that policies and internal

checks are followed.

1980. We recommended that the head of internal audit

department should prepare a comprehensive audit programme

to be followed in the conduct of the audit assignment.

ABIBIGROMMA THEATRE COMPANY

Introduction

1981. This report relates to the audited accounts of

Abibigromma Theatre Company for the period 1 January 2013

to 31 December 2014.

Operational results

1982. The Abibigromma Company closed its operations for

the year 2014 with a decrease in deficit of GH¢1,588.61 as

against the previous year’s deficit of GH¢3,957.00 representing

a decrease of 59.9%. The main performance indicators are

shown in the Table 201.



Table 201: Statement of Income and Expenditure for the year

ended 2014

Income 2014

GH¢

2013

GH¢

%

Change

Subvention 21,732.00 - -


Fund and Other funds

73,091.34

127,222.00

(42.6)

Compensation of

Employees

381,398.04 514,682.57 (25.9)

Total Income 476,221.38 641,904.57 (25.8)

Expenditure

Goods and Service 96,411.95 131,179.00 (26.5)

Compensation of

Employees

381,398.04 514,682.57 (25.9)

Total Expenditure 477,809.99 645,862.57 (26.0)

Surplus/(Deficit) (1,588.61) (3,957.00) (59.9)

1983. The Company recorded a 25.8% decrease in income,

from GH¢641,904.57 in 2013 to GH¢476,221.38 in 2014. The

decrease in income was mainly due to a fall in Compensation

of Employees which accounted for 80.1% of total income. This

decreased by 25.9% from GH¢514,682.57 in 2013 to

GH¢381,398.04 in 2014. The fall was due to onetime payment of

arrears in 2013

1984. Total Expenditure, which was mainly goods and

services decreased by 26.0%, from GH¢645,861.57 in 2013 to

GH¢477,809.99 in 2014. This was a result of reduction of 79.9%

in honorarium and allowance of GH¢40,127.00 in 2013 to

GH¢8,069.21 in 2014.



Financial position

1985. The statement of financial position of the Company is

presented in the Table 202.

Table 202: financial position as at 31 December 2014

2014

GH¢

2013

GH¢

%

Change

Non-Current Assets 932.21 1,398.32 ( 33.3)

Current Asset 5,243.16 6,545.66 (17.1)

Total Asset 6,355.37 7,943.98 ( 20.0)

1986. Non-Current Assets decreased by 33.3% from

GH¢1,398.32 in 2013 to GH¢932.21 in 2014. The decrease was


1987. Current Asset made up of Receivables and Bank

balances decreased from GH¢6,545.66 in 2013 to GH¢5,423.16

in 2014, representing a fall of 17.1%. This was due to the

reduction in cash and bank balances.

MANAGEMENT ISSUES

Unearned Salary – GH¢3,121.75

1988. Notwithstanding the provision of Regulation 297 of the

FAR,2004 (L.I.1802), we noted during the payroll audit that, the

name of Mr. Osabutey Aguedze who retired and was on

contract that ended in August 2013, continued to appear on the

payroll until October 2013 when it was deleted. The situation

resulted in an unearned salary of GH¢3,212.75 which was paid

into his bank account.



1989. Management’s failure to promptly notify the Controller

and Accountant-General for the deletion of his name from the

payroll contributed to the irregularity. Management’s inaction

could result in the loss of the amount to the state if not

recovered.

1990. We urged management to step up efforts to recover the

amount, pay same to government chest and inform our office

for verification failing which the Accountant, whose negligence

resulted in the lapse should be surcharged with the amount

involved.


Failure to meet target

1992. We reviewed the procedure put in place by

management to achieve its revenue targets and noted a

shortfall. The Company could only attain 26.3% of its revenue

estimates for the period reviewed.

1993. Our investigation disclosed that the Company’s

strategy in generating its income; i.e. the Internally Generated

Funds (IGF) requires the Company to undertake drama

performances in selected second cycle Institutions throughout

the country and charge fees for staging of the plays.

1994. The above function requires the Company to liaise with

the Ghana Education Service (GES) to ascertain the assigned

text books in the approved syllabus and base their

performances on the text books.



1995. We however observed that the Company did not

pursue proactive measures to enable them discharge their

mandate as stipulated above. They did not periodically consult

with the GES to update themselves with their syllabus. Hence

performances rehearsed based on old text books could not be

staged due to revision of text books thereby affecting their

revenue generation.

1996. The resultant effect in the shortfall of their estimated

revenue is detailed below.

Year Budget

GH¢

Actual

GH¢

Variance

GH¢

2004 147,670.00 38,777.08 (103,893)

1997. Management blamed the shortfall in the IGF for the

period reviewed on the change of syllabus and revision of text

books by the Ghana Education Service without the knowledge

of the Company. We could however not agree with

management on this assertion.

1998. To avert wastage of resources, achieve maximum

results and attain the target, we advised management to be

proactive in their dealings with the relevant stakeholders.

KWAME NKRUMAH MEMORIAL PARK

Introduction


the Kwame Nkrumah Memorial Park for the year ended 31

December 2012.



Operational results

2000. The operations of the Park ended with a surplus of

GH¢1,034.46 (2011: GH¢1,808.87), a fall of 42.8% over that of

the previous years. The performance indicators are as shown in

Table 203.

Table 203: income statement for the year ended 2012

Income 2012

GH¢

2011

GH¢

%

Change

Employee’s

Compensation

114,092.58 - -

Goods & Services 3,245.56 10,150.17 (68.0)

IGF 226,374.00 243,630.10 (7.1)

Total Income 343,712.14 253,780.27 35.4

Expenditure

Employee’s

Compensation

114,092.58 - -

Goods & Services 218,673.41 219,274.40 (0.3)

Assets 9,911.75 32,697.00 (69.7)

Total Expenditure 342,677.74 251,971.40 36.0

Surplus/Deficit 1,034.40 1,808.87 (42.8)

2001. Total Income of KNMP for the year under review

totaled GH¢343,712.14 as against GH¢253,780.27 in 2011

recording an increase of GH¢89,931.87 representing 35.4%. The

increase was due to employees’ compensation of

GH¢114,092.58 which was not provided in the 2011 financial

year due to management’s policy for the 2011 financial year.

2002. Total IGF for the year 2012 was GH¢226,374.00 as

compared with GH¢243,630.10 in 2011 accounting for a drop of



GH¢17,256.10 representing 7.1%. This was due to the fact that

the number of visitors to Park dropped in 2012.

2003. Total expenditure for 2012 rose to GH¢342,677.74 as

against GH¢251,971.40 in 2011, an increase of GH¢90,706.34

representing 36.0%. This was as a result of employees’

compensations in 2012 which was not included in 2011

financial year.

Financial position

2004. The statement of financial position of the Company is

presented in the Table 204.


2012

GH¢

2011

GH¢

%

Change

Current Assets 8,674.18 7,498.28 15.7

Current

Liabilities

141.50 NIL -

Current Ratio 61.3:1

2005. As a result of increased receivables by 1,482.49 from

GH¢667.51 in 2011 to GH¢2,150.00 in 2012, KNMP current

assets increased to 8,674.18 in 2012 showing a percentage of

15.7% over 2011 GH¢7,498.28.

2006. The Park’s current ratio of 61.3:1 shows that the Park

can pay for its commitment when they fall due.



MANAGEMENT ISSUES

Tickets Unaccounted for – GH¢5,591.00

2007. In contravention of Regulation 15 of the Financial

Administration Regulation (FAR), 2004 (L.I.1802), we noted

during our audit that out of the total revenue of GH¢197,269.00

collected from the sale of tickets at the gate of KNMP,

GH¢5,591.00 was not accounted for by the Revenue Collector-

Mr. G. K. Quansah.

2008. We attributed the lapse to lack of effective managerial

supervision; as the Deputy Accountant failed to check to

ensure amount being accounted for agrees with the tickets sold

before issuing receipt to the revenue collector. The Revenue

Collector also disregarded controls put in place by

management in accounting for moneys received, leading to loss

of revenue to the Park.

2009. We recommended that management should recover the

amount involved with interest at the prevailing bank rate from

the Revenue Collector, Mr. G. K. Quansah and pay same into

the Park’s account and inform our office for verification.

Additionally, we urged management to strengthen the control

system to avoid recurrence. Meanwhile management should

institute disciplinary action against the culprit to serve as a

deterrent.

2010. Management stated that the revenue collector involved

has duly accepted the amount and he is making frantic effort to

refund the said amount. Though management promised to

forward receipt of payment for verification, this had not been

done as at the time of compiling this report.



NATIONAL COMMISSION ON CULTURE

Introduction


the National Commission on Culture for the year ended 31

December 2014

Operational result

2012. The Commission ended the year with a surplus of

GH¢1,457,280.72 representing a margin of 5595.9%, increasing

from GH¢25,584.61 in 2013 to GH¢1,457,280.72 in 2014. Income

statement for the year ended 31 December 2014 is shown in

Table 205.

Table 205: Income statement for the year 2014

Income

2014

GH¢

2013

GH¢

%

Inc./Dec

Subvention (GOG) 409,203.82 352,503.62 16.1

Other Income 1,788,071.71 137,384.43 1201.5

Total 2,197,275.53 489,888.05 348.5

Expenditure

Compensation of

Employees

235,523.91 278,380.30 (15.4)

Goods & Services 14,490.11 69,024.31 (79.0)

Programme 56,499.36 34,204.73 65.2

Training Ghana

Youth Project

(Japanese Grant)

433,481.43

82,694.10

424.2

Total 739,994.81 464,303.44 59.4

Surplus/Deficit 1,457,280.72 25,584.61 5595.9



2013. Total Income of the Commission increased by 348.5%

from GH¢489,888.05 in 2013 to GH¢2,197,275.53 in 2014. This

was mainly due to a Japanese Grant to the Commission in 2014.

Government subvention also went up by a margin of 16.1%

from GH¢352,503.62 in 2013 to GH¢409,203.82 in 2014.

2014. Total expenditure rose by 59.4% from GH¢464,303.44 in

2013 to GH¢739,994.81 in 2014. The increase was due to a rise

of expenditure on Training Ghana Youth Project (Japanese

Grant). Financial position

2015. The statement of financial position of the Commission

is presented in the Table 206.


Assets

2014

GH¢

2013

GH¢

%

Inc/(Dec

Non-Current

Assets

1,168,901.85 745,149.55 56.9

Current Assets 1,054,717.01 17,938.59 5779.6

Current

Liabilities

3,946.02 696.02 466.9

Net Assets 2,219,672.84 762,392.12 191.15

Liquidity Ratio 267.3:1 25.8:1

2016. Non-Current Asset of the Commission increased from

GH¢745,149.55 in 2013 to GH¢1,168,901.85 in 2014 representing

a 56.9% change. Additions to Building and Motor Vehicle

accounted for the change.

2017. Current Asset also went up by a margin of 5,779.6%

from GH¢17,938.59 in 2013 to GH¢1,054,717.01 in 2014. The



rise was mainly due to the Bank balance of GH¢1,039,450.00 on

the Japanese Grant to the Commission in 2014.

2018. Current liabilities rose from GH¢696.02 in 2013 to

GH¢3,946.02 in 2014 representing a 466.9% change

2019. The Commission’s liquidity position remains strong

from 25.8:1 in 2013 to 267.3:1 in 2014.

MINISTRY OF LAND AND NATURAL RESOURCES

THE OFFICE OF THE ADMINISTRATOR OF STOOL LANDS

(OASL)

Introduction

2020. This report relates to the audited accounts of the Office

of the Administrator of Stool Lands for the period 1 January


Operational results


GH¢4,021,035.61in 2011 to GH¢8,759,379.56 in 2012. The rise

was mainly due to a 129.1% increase in Government Funding

which rose from GH¢1,966,899.96 in 2011 to GH¢4,505,020.39 in

2012. Internally Generated Fund (IGF) which is the main

contributor to income also showed an increase of 77.2% from

GH¢2,040,747.05 in 2011 to GH¢3,616,885.44 in 2012.

2022. The performance indicators are presented in the Table

207.




Income 2012

GH¢

2011

GH¢

%

Change

Public Fund (GOG) 4,505,020.39 1,966,899.96 129.1

IGF 3,616,885.44 2,040,747.05 77.2

Donor (LAP) 637,473.73 13,388.60 4661.3

Total Income 8,759,379.56 4,021,035.61 117.8

Expenditure -

Personnel Emoluments 4,125,036.39 1,806,899.96 128.3

Administration - 1,395,228.76

Service Activity - 883,128.32 -

-

Project Expenses (LAP) 467,219.29 32,150.59 1353.2

USE OF GOODS &

SERVICE 3,037,754.86 - -


Excess of

Income/Expenditure 1,129,369.02 (96,372.02)

(1271.9)

2023. Expenditure incurred in 2012 totaled GH¢7,630,010.54

as against GH¢4,117,407.63 in the previous year, an increase of

85.3%. The expenditure components included, Personnel

Emoluments which increased significantly by 128.3% from

GH¢1,806,899.96 to GH¢4,125,036.39 in 2012 as a result of

salary increment; Land Administrative Project (LAP) Expenses

also rose by 1353.22% from GH¢32,150.59 in 2011 to

GH¢467,219.29 in 2012 due to increase in LAP activities.

2024. The Office recorded an operational surplus of

GH¢1,129,369.02 in 2012 as against a deficit of GH¢96,372.02 in

2011.



Financial position

2025. The Office’s Fixed Assets up surged by a margin of

4.1%.; from GH¢1,355,512.27 in 2011 to GH¢1,411,047.09 in

2012. The growth in 2012 was as a result of additions to Plant

Property and Equipment.

2026. Current Assets which comprised of staff debtors and

cash at bank increased by 468.3% from GH¢229,325.32 in 2011

to GH¢1,303,159.52 in 2012.

2027. Liquidity outlook remained strong as no current

liability was recorded.

MANAGEMENT ISSUES

Revenue not accounted for-GH¢1,615.00

2028. OASL Management policy and best practice on cash

security also requires that cash should be paid to the Chief

Collector intact at the next business day or at most within a

Week.

2029. In spite of the above policy, we observed that a

Commission Collector of the Western Region in the Daboase

District, Paul Koomson, failed to account for revenue totaling

GH¢1,615.00 collected between January and March 2012. The

amount remained outstanding as at the close of the current

audit in December 2013. Further investigations disclosed that

Mr. Koomson died on 21 May 2012.

2030. Management of the Western Regional Office intimated

that several attempts to retrieve the unpaid revenue from the



late Koomson’s guarantors or family had proved futile. They

are however committed to the recovery of the full amount from

the family of the late Paul Koomson.

2031. In our view the absence of effective monitoring by the

District Officer resulted in late discovery of the anomaly.

Consequently, Stool Lands revenue collected over the period

under review had been understated by GH¢1,615.00.

2032. We advised that District Officers should intensify their

monitoring of revenue collectors’ activities to avoid any future

recurrence. Meanwhile management should retrieve the

amount not accounted from the guarantors or family of the late

Paul Koomson as promised failing which the District Officer

whose inaction caused the loss should be made to account for

it.

2033. Management agreed with our recommendation.

2034. We urged management to ensure that entries in the

summary revenue cash book are not discontinued in order to

keep track of all revenue collected and subsequent payment to

bank.

MINERALS COMMISSION

Introduction

2035. This report relates to the audited accounts of Minerals

Commission for the year ended 31 December 2014.



Operational results

2036. Total Income consisting of Internally Generated Funds,

Transfer from Capital Grants and Natural Resources and

Environmental Governance Grant increased by 2.4% from

GH¢26,856,243 in the previous year to GH¢27,510,405 in 2014.

This was mainly as a result of 114.4% increase in Natural

Resources and Environmental Governance Grant. Table 208

shows the performance indicators.


Income

2014 GH¢

2013 GH¢

% Change

Internally Generated Funds

23,112,133 23,763,214 (2.7)

Transfer from Capital Grants

- 1,041,467 -

Natural Resources and Environmental Governance (NREG) – Grant

4,398,272

2,051,562

114.4

Total Income 27,510,405 26,856,243 2.4

Expenditure


Administration and General Expenses

3,360,531 3,312,640 1.4

Services Expenses 7,541,259 7,518,616 0.3

Depreciation 1,269,205 1,597,469 (20.5)


Surplus for the year 1,376,424 2,045,106 (32.7)

2037. Total Expenditure of the Commission for 2014

amounted to GH¢26,133,981 compared with GH¢24,811,137

recorded in 2013, an increase of 5.3%. The major items which



accounted for the increase in expenditure were Personnel

Emoluments which rose by 12.8%, and Administrative and

General Expenses 1.4%.

2038. The Commission recorded a surplus of GH¢1,376,424 as

compared to a surplus of GH¢2,045,106 in 2013. A reduction of

32.7%.

Financial position

2039. The details of the financial position are shown in Table

209.


2014 GH¢

2013 GH¢

% Change


Current Assets 13,996,093 14,957,349 (6.4)


Net Assets 34,288,471 32,426,682 5.7

Total Assets 34,980,947 32,833,227 6.5


2040. Non-Current Assets increased from GH¢17,875,878 in

2013 to GH¢20,984,854 in 2014 representing a 17.4% increase.

The increase was attributed to additions in Capital Work-In-

Progress, Motor Vehicles, Office Furniture and Equipment and

other Intangible Assets.

2041. Current Assets, however, decreased by 6.4% from

GH¢14,957,349 in 2013 to GH¢13,996,093 in 2014. This was

largely due to an 82.1% reduction in Cash and Bank Balance.

2042. Current Liabilities rose from GH¢406,545 in 2013 to



GH¢692,476 in the year 2014, registering a 70.3% increase. This

was largely due to increase in Accounts Payable.

2043. The Commission’s current ratio at the end of the year

was 20.2:1 (2013:36.8:1), although the ratio decreased it still

shows that the Commission would be able to meet its short-


PRECIOUS MINERALS MARKETING

COMPANY LIMITED

Introduction


the Precious Minerals Marketing Company Limited (PMMC)

for the financial year ended 31 December 2014.

Operational results

2045. The Company recorded a Net loss of GH¢8,815,317 in

2014 as against a Net loss of GH¢6,650,615 in 2013, representing

32.5% increase in the net loss.

2046. The Company’s performance indicators for 2014 are

shown in Table 210.

Table 210: Income and Expenditure Statement for 2014.

Income

2014

GH¢

2013

GH¢

%

Change

Revenue 135,751,533 109,283,701 24.2

Cost of Sales (131,481,981) (107,825,952) 21.9

Gross Profit 4,269,552 1,457,749 192.9

Other Operating Income 2,504,861 765,054 227.4

Total Income 6,774,413 2,222,803 204.8

Expenditure



Selling and Distribution

Expenses

755,018 662,333 14.0

Staff Cost 3,932,625 3,245,320 21.2

Administrative Expenses 8,174,837 3,212,198 154.5

Finance Cost 3,426,704 1,688,048 103.0

Taxation (699,454) 65,519 (1167.6)


Net Loss for the year (8,815,317) (6,650,615) 32.5

2047. Total sales for the year increased by 24.2% or

GH¢26,467,832 from GH¢109,283,701 in 2013 to

GH¢135,751,533 in 2014. This was largely due to Gold Exports

which constitutes 91.6% of the total sales increasing by 25.1%

over the previous year’s figure.

2048. Cost of sales registered a 21.9% increase over the 2013

figure of GH¢107,825,952 to GH¢131,481,981 in 2014. The

increase in cost of sales was significantly influenced by the cost

of sales on Gold Export, which went up by 21.6%.

2049. Total expenditure also increased by 75.7% from


was due to the increases in all the expenditure components

over the previous year’s figures.

Financial position

2050. A summarized statement of financial position of the

company as at December 31, 2014 is presented in Table 211.



Table 211: Statement of Financial Position as at 31 December

2014

2014

GH¢

2013

GH¢

%

Change


Current Assets 21,968,070 16,396,396 34.0


Net Asset 11,136,264 3,287,298 238.8


2051. Non-Current Assets increased from GH¢11,036,633 in

2013 to GH¢27,663,102 in 2014, a rise of 150.6%. This was

largely due to the acquisition of property, plant and equipment

amounting to GH¢221,690 and the revaluation of the building

by GH¢16,513,939.

2052. Current Assets also went up by 34.0% from

GH¢16,396,396 in 2013 to GH¢21,968,070 in 2014. The rise was

due to 155.2% increase in Trade Debtors. 44.3% increase in

Gold Bullion and 48.3% increase in Jewellery stock.

2053. Current Liabilities also rose by 59.4% from


was mainly due to increases in Bank overdraft, Accounts

Payable and Accruals over the previous year figures.

2054. An unfavourable liquidity position was recorded at the

end of the year as indicated by a current ratio of 0.6:1

compared to 0.7:1 in 2013. This shows that the company will

not be able to meet its short-term financial obligations as and

when they fall due.



MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY

Introduction

2055. This report relates to the audited financial statement of

National Sports Authority for the period 1 January 2013 to 31

December 2014.

Operational result

2056. The Authority ended the financial year with a surplus

of GH¢43,853.57. The surplus fell by a margin of 58.7% from

GH¢106,133.12 in 2013 to GH¢43,853.57 in 2014. The

performance indicators are summarized in Table 212.


Income 2014

(GH¢)

2013

(GH¢)

%

Change



(I.G.F)

1,697,517

1,459,518 16.3

Total 6,926,213 6,405,577 8.1

Expenditure

Employees Compensation 4,692,971 4,355,618 7.8

Administrative

Expenditure

1,025,964

785,569 30.6

Service Activity 832,410 382,843 117.43


Fund(I.G.F) expenses

331,014

774,414 (57.3)


Excess of Income Over

Expenditure

43,854

106,133 (58.7)




GH¢6,926,213 in 2014. This was mainly due to a 16.3% rise in

the Internally Generated Fund from GH¢1,459,518 in 2013 to

GH¢1,697,517 in 2014.

2058. Total expenditure also increased by a margin of 9.3%

from GH¢6,299,443 in 2013 to GH¢6,882,359 2014. The increase

was as result of a 117.4% rise in service expenditure and a

30.6% increase in Administrative Expenditure.

Financial position


in the Table 213.

Table 213: Statement of financial position as at 31 December

2014

2060. Non-Current Assets increased by small margin of 0.4%.

This was due additions to Gym equipment. No depreciation is

provided for the Authority’s fixed assets.

2061. Current Assets saw a rise of 65.3% due to an increase in

the cash and Bank balance from GH¢27,931 in 2013 to

GH¢79,973 in 2014. The Authority also registered a Current

liability of GH¢10,500 in 2014 which was an overdraft.

2014 (GH¢)

2013 (GH¢)

% Change


Current Assets 118,481 71,673 65.3

Current Liabilities 10,450 - -

Net Assets 2,251,795 2,207,941 2.0

Liquidity ratio 11.3:1



2062. The Authority’s liquidity ratio as measured by a current

ratio of 11.3:1 in 2014; an indication that the Authority would

be able to meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Non transfer of non-tax revenue into the consolidated fund-

GH¢552,955.19

2063. Contrary to Regulation 17 of the FAR 2004, we noted

that a total amount of GH¢552,955.19 generated as non-tax

revenue during the 2013 and 2014 financial years had not been

transferred into the consolidated fund. This amount

represents 40% of the total non-tax revenue to be transferred

into the consolidated fund by the Authority.

2064. The anomaly could be attributed to management’s

disregard to the regulation. Failure to lodge the Non Tax

Revenue promptly could lead to risk of budget overruns due to

excess funds at the Authority’s disposal. The state also would

be deprived of the use of the revenue for other viable activities.

2065. We recommended and management accepted to

transfer the unpaid Non Tax Revenue and all future revenue

into the appropriate Consolidated Fund account without any

further delay.

Delay in lodgement of revenue-GH¢138,362.50

2066. Our audit revealed that, cash collected in respect of

Hire of Stadium, Stores Rental, Gymnasium Proceeds and

Hawkers Dues over the period under review were delayed for

period ranging between 2 to 356 days before lodging the



revenue into the bank in violation of Regulation 18(1) of the

FAR 2004, L.I. 1802. A further review disclosed that this

unbanked revenue was used directly for Administrative

expenditure as the Authority was not receiving its subvention.

2067. Management’s non-compliance to the regulation

contributed to the irregularity.

2068. The delay could lead to using current moneys collected

to account for an already existing cash shortage. The

irregularity also resulted in cash on hand of GH¢125,470.00 as

at December 2013 and GH¢12,892.00 as at December 2014

financial years not banked.

2069. We recommended and management accepted to

ensure that the Revenue Collectors comply with the regulations

by lodging revenue collected promptly to avoid any revenue

loss. Meanwhile the Revenue collectors involved should be

made to refund the amount with interest at current bank rate as

well as sanctioning them to serve as a deterrent to others.

Missing General Counterfoil Receipt (GCRs)-GH¢2,150,738.73


Regulation 2004, states that, ‘used value books shall be retained

for safe custody until such time as their disposal under the

appropriate regulations has been authorized.’

2071. Examination of the revenue cash book disclosed that

three General Counterfoil Receipts (GCRs) books which were

used to collect total revenue of GH¢2,150,738.73 were not made

available for our examination even though the amount was



entered in the cash book and accounted for. We could therefore

not satisfy ourselves that the revenue accounted for in the

cashbook was genuinely the total amount collected and

recorded. The possibility of the GCRs used for other purpose

cannot be ruled out.

2072. The anomaly could be attributed to poor custody of

value books at the Authority coupled with ineffective

supervision by the head of Accounts.

2073. We urged and management accepted to make the

receipts books available for inspection without further delay.

Unreceipted expenditure-GH¢726,954.95

2074. We reviewed payments with the view to establish the

genuineness and propriety of expenditure made during the

audit period. Our examination of the payment vouchers

revealed that, 54 payment vouchers totalling GH¢726,954.95

being payments made on behalf of the Authority were not

covered by receipts.

2075. Failure to obtain a receipt or an acknowledgement on

the payment voucher to cover these payments was as a result

of poor supervision by the Accountant over the Cashier’s duty

as well as lack of post transaction review by the Internal Audit

Unit.

2076. This irregularity made it difficult for us to confirm

whether these payments were genuine and the monies were

used for the intended purpose.



2077. We recommended and management accepted that in

the absence of valid receipts to authenticate the payments, the

payments should be disallowed and the paying officer be

surcharged with the amount involved.

Unpresented Payment Vouchers GH¢664,206.78

2078. In spite of the provisions of Regulation 39(2) of the L.I.

1802, 49 payment vouchers amounting to GH¢279,689.78 in

respect of the 2013 and 2014 financial years were not presented

for audit.

2079. This could be ascribed to making payments before

raising the necessary payment vouchers and the inability to

properly preserve paid vouchers. As a result, we could not

ascertain whether the:-payments were authorized & approved,

goods were supplied or service rendered and whether

transactions were properly classified and included in accounts.

2080. We recommended that, management of the Authority

produces the payment vouchers for our examination or

consider the payments disallowed and the total amount

refunded by the paying officers. Management accepted our

recommendation.

Non-payment of Withholding Tax-GH¢7,055.00

2081. We observed that management failed to pay to the

Commissioner an amount of GH¢7,055.00 withheld on a

transaction incurred as detailed in Table 214.



Table 214: Non-payment of Withholding Tax

Date PV. No. Description Amount

GH¢

Payee

5/3/2014 6/3 Payment of 5%

withholding

tax

7,055.00 GRA

2082. This anomaly occurred as a result of management’s non

adherence to Section 87 (1) of the Internal Revenue Act, 2000

(Act 592). Failure to pay the tax has denied the state of much

needed revenue for national development.

2083. We recommended and management accepted to remit

Gh¢7,055.00 to the Commissioner of DTRD of GRA without

further delay to avoid the payment of penalties.

Non recovery of staff advances and loans-GH¢38,498.35

2084. Contrary to Regulation 113 (1) of FAR, 2004 (L.I. 1802)

we observed that officers who were granted loans and salary

advances totalling GH¢43,722.07 between 2008 and 2014 paid

back only GH¢5,213.72 leaving GH¢38,498.35 in arrears as at 31

December 2014 as summarised in Table 215.

Table 215: Non recovery of staff advances and loans

Advances Balance as at

1/1/2013

GH¢

Payment in

2013/2014

GH¢

Balance as at

31/12/2014

GH¢

CAR LOAN 19,698.30 258.32 19,439.98

HAWKERS 24,023.77 4,955.40 19,068.37

Total 43,722.07 5,213.72 38,498.35



2085. Management’s failure to enforce Regulation 112 by

ensuring recovery is made by other possible means accounted

for the lapse.

2086. Non-recovery of these advances has resulted in a huge

debtors’ balance of GH¢38,498.35 as at the end of the 2014

financial year. The delay in payment of these debts has also

deprived other staff of the loan facility.

2087. We urged management to introduce and strictly enforce

a recovery schedule to ensure timely settlement of the

outstanding advances and loans.

2088. Management responded that affected officers have been

informed and some officers have started paying in cash.

Management further explained that deduction of the advances

would be deducted from any allowances due these affected

officers.

Sub-letting of office at Kumasi

2089. The rent contract includes a clause which prevents a

tenant from sub-letting a property without proper

authorisation and documentation.

2090. We noticed during our regional visit to Kumasi that an

office rented to Ghana Post had been sub-let to Fidelity Bank

without the Authority’s permission. Management did not also

take any action against Ghana Post for sub-letting the property

without their consent. We however could not sight any

documentation on a rent agreement on the sub-letting of the

premises.



2091. The anomaly was as a result of management’s failure to

ensure that the property of the Authority is properly

safeguarded. Consequently, the payment for the rent by the

occupant (Fidelity Bank) was not consistent.

2092. We recommended that the Authority should have a

well-documented rent agreement with Ghana Post and then

obtain and review the partnership agreement between Ghana

Post and Fidelity Bank to ensure that the rent amount is

accurately paid.


Poor condition of multipurpose courts

2094. The AngloGold-Ashanti donated funds for the

Construction of multipurpose courts throughout the country.

We visited some of the courts at Northern, Ashanti and Central

Regions to acquaint ourselves with the impact of the Project.

2095. We noticed during our visit to some of the Courts that

they have develop cracks and the paint used for the marking of

the various courts has started fading off. The courts have been

left in the bush, a clear indication that the courts have not been

useful to the communities as well as non-maintenance of the

courts.

2096. In a letter dated 28 May 2014, addressed to the then

Acting Director-General, the Northern Regional Director of the

Sport Authority complained about these anomalies which have

not been redressed as at the time of the report.



2097. We attributed the abandonment and lack of people

patronising the courts to improper citing of the courts. Failure

to maintain the project may defeat the purpose of the

construction of the multipurpose courts.

2098. We recommended and management accepted to ensure

that the Courts are constantly maintained to avoid further

deterioration. Management should also ensure the community

patronise the courts.

Follow up on the previous audit report

2099. Though the Authority has established Audit Report

Implementation Committee (ARIC) and there were minutes to

confirm they have been meeting, we noted most of the

recommendations in our previous audit reports have not been

implemented as detailed below. We urged the ARIC to be more

responsive to their function.

Unpaid interest on unauthorized investment-GH¢36,479.45

2100. In spite of previous comment requesting management

to retrieve interest on three different unauthorised investment

totalling GH¢3,500,000.00 with two of the investments yielding

an interest of GH¢36,479.45, Management is yet to retrieve the

earlier interest.

2101. Management has also not followed up at the bank to

demand the accrued interest on the last investment of

GH¢1,000,000 which was return to the account after ten

months. Management responded it had paid the GH¢32,410.96

to the Ministry of Youth and Sports but failed to provide

evidence to substantiate the claim. We reiterated that



management should comply with our earlier recommendation


Overpayment of cost of work done on Multi-purpose Court

Project – GH¢78,241.11

2102. Management has not recovered the over payment of

GH¢78, 241.11 made to the Contractors. We urged

management to as a matter of urgency get the Contractors to

recover the amount.

Cash withdrawal without supporting document-GH¢20,000.00

2103. Though Management provided a Payment Voucher to

cover the cash withdrawal of GH¢20,000.00 no receipt was

attached. We reiterated that management should get the

Ministry to provide the receipt for inspection without delay

failing which the amount should be surcharged to the paying

officer.

Unpresented Payment Vouchers GH¢79,149.00

2104. Management has made available 6 out of the 9 payment

vouchers totalling GH¢40,590 leaving 3 Payment vouchers

amounting to GH¢38,559 yet to be provided. We recommended

that management should make the rest available without

further delay or the amount be recovered from the authorizing

and paying officials.

Unaccounted Hockey Pitch revenue - GH¢57,527.50

2105. We noted during our previous audit that the National

Hockey Pitch generated a total amount of GH¢57,527.50 as

revenue by renting of the pitch and other facilities. The revenue

was collected by using unauthorized receipt books which was



in the name of Ghana Hockey Association (GHA). The amount

collected was paid into GHA account instead of the Authority’s

account.

2106. We recommended management retrieve the amount

from GHA. Management responded that, it has written to

Ghana Hockey Association to recover the amount.

Unsighted reports of all sports disciplines under NSA –

GH¢1,027,727.81

2107. National Sport Authority has once again failed to issue

reports on various sports disciplines even though it has

expended an amount of GH¢1,027,727.81 on various sport

disciplines during the period. In the absence of reports from

the various sport disciplines we could not confirm whether the

funds were judiciously used. We advised management to bring

pressure to bear on the managers of the sports discipline to

submit reports after every event else the amount allegedly

spent should be refunded.

EXTRA MINISTERIAL AGENCIES

FINANCIAL INTELLIGENCE CENTRE

Introduction


Financial Intelligence Centre for the year ended 31 December

2014.

Operational results

2109. Below is the Income Statement for the period under

review.

Table 216: Income statement for 2014.



2014

GH¢

2013

GH¢

%

Change

Revenue 2,836,776 2,294,471 23.6

Expenditure (Gen. and Admin. Exp.)

2,453,865 2,126,966 15.3

Net Surplus 382,911 167,505 128.5

2110. Revenue for the year 2014 amounted to GH¢2,836,776

as compared to GH¢2,294,471 in 2013, representing an increase

of 23.6%. The rise in revenue was due to rise in Government of

Ghana Subvention.

2111. Expenditure increased by 15.3% from GH¢2,126,966 in

2013 to GH¢2,453,865 in 2014. This was due to increases in

general and administrative expenses.

2112. The year’s operations ended with a surplus of

GH¢382,911 representing an increase of 128.5% from the 2013

surplus of GH¢167,505.

Financial position

2113. The financial position of the Centre for the period

under review is shown in the Table below.

2014

GH¢

2013

GH¢

%

Change


Current Assets 1,014,779 1,360,005 (25.4)


Net Current Assets 1,001,779 900,773 11.2


2114. Non-Current Assets consisting of Property, Plant and



Equipment increased by 248.5% from GH¢113,424 in 2013 to

GH¢395,329 in 2014. This was due to acquisition of Property,

Plant and Equipment within the current year.

2115. Current Assets on the other hand decreased by 25.4%


mainly as a result of a fall in Cash and Bank Balance and

inventories.

2116. Current Liabilities also decreased by 97.1% from

GH¢459,232 in 2013 to GH¢13,000 in 2014. This was due to a

reduction in trade and other payables. The liquidity position

as depicted by the current ratio of 78.1:1 in 2014 (2013:3.0:1)

showed a healthy position, meaning the Centre can meet its

short-term obligations when they fall due.

ELECTORAL COMMISSION

Introduction


Electoral Commission for the year ended 31 December 2013.

Operational results

2118. The summary of the Commission’s operations for the

year under review is provided in Table 217.



Table 217: Performance indicators for 2013

Income

2013

GH¢

2012

GH¢

%

Change

Government

Subvention

61,894,375 256,688,758 (75.9)

Miscellaneous

Income

957,092 2,081,346 (54.0)

Donor Grants - 14,175,695 -

Total Income 62,851,467 272,945,799 (77.0)

Expenditure

Registration and

Election Expenses

39,265,121 130,465,025 (69.9)

General and

Administrative

Expenses

21,697,913 22,209,227 (2.3)

Depreciation 36,000,951 35,188,911 2.3


Surplus/(Deficit) (34,112,518) 85,082,636 (140.1)

2119. Total Income decreased by 77.0% from GH¢272,945,799

in 2012 to GH¢62,851,467 in 2013. This change was mainly due

to a 75.9% drop in Government Subvention.

2120. Total Expenditure also went down by 48.4% from


due to less electoral activities in 2013 as compared to 2012

which was an election year.

2121. The operations of the Commission ended with a deficit

of GH¢34,112,518 as against a surplus of GH¢85,082,636

recorded in 2012.



Financial position

2122. Table 218 shows the financial position of the

Commission as at 31 December 2013.


Item

2013

GH¢

2012

GH¢

%

Change

Non-current

Assets

98,796,479 128,341,707 (23.0)

Current Assets 1,045,141 5,293,552 (80.3)

Current

Liabilities

494,849 185,313 167.0

Net Assets 99,346,771 133,499,946 (25.6)


2123. Non-Current Assets decreased by 23.0% from


due to disposal of motor vehicles and depreciation charge for

the year.

2124. Current Assets also went down by 80.3% from

GH¢5,293,552 in 2012 to GH¢1,045,141. This was due mainly to

an 80.6% drop in Cash and Cash equivalents.

2125. Current Liabilities registered an increase of 167.0%

from GH¢185,313 in 2012 to GH¢494,849 in 2013.

2126. The current ratio of 2.1:1 (2012: 28.6:1) though

decreased, shows the Commission can meet its short-term




MANAGEMENT ISSUES

Disposal of motor vehicles

2127. Our review on disposal of motor vehicles indicated that

management had no list of the vehicles disposed off. We could

therefore, not determine whether the cost and accumulated

depreciation of the motor vehicles disposed off had been

removed from the fixed assets register.

2128. This was as a result of the Director of Administration’s

failure to provide the documents handed over to him on the

disposal of the vehicles by the transport officer who had retired

at the time of audit. Management also did not ensure the

update of the asset resister.

2129. The situation could lead to difficulty in ascertaining the

actual value of the vehicles disposed off.

2130. Management should provide us with the list of vehicle

disposed off to enable us ascertain the actual value. We also

urged management to update its assets register.

2131. Management responded that the fair value of the assets

disposed off is estimated to be GH¢402,328.

2132. We wish to emphases that accounts are not based on

estimated figures but actual. We therefore stand by our earlier

recommendation.



Payments with inadequate supporting documents –

GH¢18,785.10

2133. A head of account is required to ensure that

transactions are properly authenticated to show that the

amounts are due and payable. We however observed that the

following amounts were not properly authenticated before

payments were made during our regional visits.

Region

Total

Amount

GH¢

Amt.

with

Defect

GH¢

Reasons

Item

Wa 9,519.00 128.50 No Receipts Fuel

Tamale 669.95 669.95 No

Statement

Claim

Over

Time

Kumasi 54,776.74 9,516.00 No Receipts Election

Bolgatanga 365.00 365.00 No Receipts Imprest

Sunyani 31,077.05 9,105.65 No Receipts

2134. We recommended that the head of accounts at all pay

points should ensure that relevant supporting documents such

as receipts, invoices and statements of claims are provided

before payments are made to the beneficiaries where possible.

In the absence of relevant documents to support the payment,

officers in the various regions should be made to refund the

amounts involved.

2135. Management responded that the head of accounts have

issued instructions to all the regions not to honour any

payments without all relevant documents.



STATE ENTERPRISES AUDIT CORPORATION

Introduction

2136. This report relates to the audited accounts of the State

Enterprises Audit Corporation (SEAC) for the year ended 31

December 2012 and 2013.

Operational results

2137. The Corporation recorded a surplus of GH¢41,930

which is 184.4% over the 2012 deficit of GH¢49,684. The




GH¢492,055 in 2012 to GH¢519,315 in 2013. The rise was due

to 14.0% increase in audit and assurance fees.

2139. Total Expenditure for the year recorded a decreased of

4.1% which was due to a reduction in most of the General and

Administrative Expenses.

Income

2013

GH¢

2012

GH¢

%

Change

Professional fees 560,911 491,831 14.0

Other Income 404 224 80.3

561,315 492,055 14.1

Expenditure

General and

Administrative Exp.

519,385 541,739 (4.1)

Surplus/Deficit 41,930 (49,684) (184.4)



Financial position

2140. Table 220 shows the Financial Position as at 31

December 2013


2141. Non-Current Assets decreased by 37.3% from GH¢9,796

in 2012 to GH¢6,142 in 2013. This was due to increase in

depreciation.

2142. Current Assets increased by 38.5% from GH¢90,953 in

2012 to GH¢118,538 in 2013. The increase was as a result of the

additional investment (NTHC) and increase in Cash and cash

Equivalents.

2143. Current Liabilities also decreased marginally by 3.1%

from GH¢350,420 in 2012 to GH¢339,429 in 2013. This was due

to decrease in accounts payables for the year.

2144. Due to the unfavourable movements in the components

of Current Assets, the liquidity position of the Company

2013

GH¢

2012

GH¢

%

Change


Current Assets 112,395 81,157 38.5

Current Liability 339,429 350,420 (3.1)


Net Asset 220,891 243,920 (110.1)

Non-current

Liabilities

72,042 75,396 (4.4)




worsened from 0.2:1 in 2012 to 0.3:1 in 2013. This is indicative

that the Corporation would not have enough resources to

discharge its short-term obligations when they fall due.

NATIONAL POPULATION COUNCIL (NPC)

Introduction


National Population Council for the period 1 January 2013 to

31 December 2013

Operational results

2146. The year 2013 ended with a surplus of GH¢151,522.36

as against GH¢93,458.25 for the year ending 31 December 2012.

2147. Presented in the Table below is a summary of the

Income and Expenditure account for the years ending 31

December 2012 and 2013.

Revenue 2013

GH¢

2012

GH¢

%

Change

GoG Fund/Grants 1,594,735.81 1,131,975.86 40.9

Donor Fund 144,406.38 - -

Others 166,090.76 24,394.20 580.9

Investment - - -

Totals 1,905,232.95 1,156,370.06 64.8

Expenditure

GoG Fund - - -

Personal

Emolument

1,296,183.00 742,554.00 74.6

Goods and Services 356,129.94 242,977.19 46.6



Services/Investment - 77,380.62 -

Donor Fund 101,397.65 - -

Total Expenditure 1,753,710.59 1,062,911.81 65

Surplus 151,522.36 93,458.25 62.1

2148. Total Income of National Population Council for the

year under year review recorded GH¢1,905,232.95 as against

GH¢1,156,370.06 in 2012 representing 64.8%.

2149. GoG Fund which is made of worker compensation and

goods and services increased by GH¢462,759.95 from

GH¢1,131,975.86 in 2012 to GH¢1,594,735.81 in 2013

representing 40.9%.

2150. Total Expenditure for the financial year ended 2013

recorded GH¢1,753,710.59 as against GH¢1,062,911.81 in 2012

representing 65%.

2151. Workers compensation increased to GH¢1,296,183.00 in

2013 from GH¢742,554 in 2012 representing 74.6%. Also good

and services increased by GH¢113,152.75 from GH¢242,977.19

in 2012 to GH¢356,129.94 in 2013 representing 46.6%.

Financial position

2152. The Table below provides the Financial Position of the

Council as at 31 December 2013.



Non-Current Assets

2013

GH¢

2012

GH¢

%

Change

Non-Current Assets 481,707.28 460,467.28 (4.6)

Current Assets

Cash In Hand/Bank 17,028.61 37,280.30 (54.3)

Debtors/Repayments/Advances 9,650.00 19,884.91 (51.5)

Totals 26,678.61 57,165.21 (53.3)

Net Assets 508,385.89 517,632.49 (1.8)

2153. National Population Council’s Non-Current Assets

increased by GH¢21,240.00 from GH¢460,467.36 in 2012 to

GH¢481,707.28 in 2013 representing 4.6%.

2154. Current Asset however, decreased to GH¢26,678.61 in

2013 from GH¢57,165.20 in 2012 representing 53.3%. This was

as a result of a drop in cash on hand and at bank from

GH¢37,280.30 in 2012 to GH¢17,028.61 in 2013 representing

54.3%.

2155. Net Assets dropped by GH¢9,246.60 from

GH¢517,632.49 in 2012 to GH¢508, 385.89 in 2013 representing

1.8%.

MANAGEMENT ISSUES

Imprest not accounted for – GH¢23,100.00

2156. Contrary to Regulation 288(1and2) of Financial

Administration Regulation (FAR), we noted during the audit

that an amount of GH¢23,100.00 given to eight regions in

connection with celebration of world population day is yet to

be accounted for. Details shown in Table 221 below.



2157. We attributed this to dereliction of duty on the part of

management. We could not, therefore, authenticate whether

the money was used for the intended purpose.

2158. We recommended to management, to ensure that the

regions involved are made to account for the money without

further delay. Management accepted our recommendation and

stated that the regions involved were yet to benefit from

further grants from the head office and as a form of sanctions;

they would withhold their grants until they account for the

imprest.

Non Depreciation of Non- Current assets

2159. Our review of financial statements revealed that,

management had never depreciated any of its non- current

assets since its existence in contravention of Section 53 of

Financial Administration Act (FAA), 2003. (Act 654) and good

accounting practice. Management however indicated in its

Accounting policy 1(b) that management was yet to decide on

method and rate of depreciating its fixed assets. This in our

Date P. V No Amount Region

19/11/13 82/11/13 2800.00 Bolga

19/11/14 91/11/13 3500.00 Sunyani

19/11/15 83/11/13 2800.00 Koforidua

19/11/16 86/11/13 2800.00 Ho

20/11/13 87/11/13 2800.00 Wa

20/11/14 88/11/13 2800.00 Kumasi

20/11/15 84/11/13 2800.00 Sekondi

20/11/16 89/11/13 2800.00 Tamale

Total 23,100.00



opinion is long overdue.

2160. Management’s failure to depreciate its non- current

assets has the tendency of over stating the value of its non-

current assets in the financial statement as well as not

disclosing the true state of its non -current assets to its

stakeholders. This has the effect of increasing the surplus

declared in the financial statement.

2161. We recommended to management to adhered to the

above Act and good accounting practice so as to sustain the

organization. Management accepted our recommendation for

compliance.

Non Maintenance of Asset Register

2162. A good asset management practice requires that an

institution records its properties in a register and in a format

that will ensure regular maintenance and controls to safeguard

the assets or the properties.

2163. We observed that the Council has no asset register in

which it records its asset. As at the time of our audit, no asset

register has been compiled. We were unable to carry out

verification exercise on the assets of the Council to ascertain

their status, location, value and existence.

2164. We recommended that management should prepare

and maintain an asset register to control its numerous assets.

Management responded that they maintained an inventory

register which they are systematically upgrading into an asset



register. This is because the current management does not have

information on when some of the assets were procured and at

what cost.

INTERNAL AUDIT AGENCY

Introduction


of the Internal Audit Agency for the period January 2013 to 31

December 2014.

Operational results

2166. The Agency recorded a deficit of GH¢122,939.48 in 2014

as against a surplus of GH¢78,135.10 in 2013 representing

257.3% decline in performance. The performance indicators are

shown in Table 222.


2167. Total Income for the period reviewed increased from

Revenue

2014

GH¢

2013

GH¢

%

Change

GOG subventions 3,443,002 2,933,844 17.4

Other Income 370,778 392,733 (5.6)

Total Income 3,813,780 3,326,577 14.6

Expenditure

Compensation to Employee 2,930,227 2,159,688 35.7

Goods and Services 579,306 695,050 (16.7)

Other Expenditure 364,467 328,128 11.1

Depreciation 62,719 65,576 (4.4)


Excess/(Deficit) 122,939 78,135 (257.3)



GH¢3,326,577 in 2013 to GH¢3,813,780 in 2014, representing a

14.6% rise. The increase was mainly due to a 17.4% increase in

GOG subventions from GH¢2,933,844 in 2013 to GH¢3,443,002

in 2014.

2168. Total Expenditure for the year 2014 was GH¢3,936,719

as against GH¢3,248,442 in 2013, registering a 21.2% rise. The

rise was due to 35.7% increase in compensation to Employees

and 11.1% increase in other expenditure.

Financial position

2169. The major components of the Agency’s Financial

Position as at 31 December 2013 and 31 December 2014 are

shown in Table 223.


2170. The Non-Current Assets decreased from GH¢153,410 in

2013 to GH¢90,691 in 2014, representing a decrease of 40.9%.

The decrease was due to disposal of Motor Vehicles and

Depreciation charged for the year.

2171. Current Assets decreased by 34.9% from GH¢543,178 in

2014

GH¢

2013

GH¢

%

Change


Current Assets 353,401 543,178 (34.9)



Net Assets 296,885 419,824 (29.3)




2013 to GH¢353,401 in 2014. This was due to decreases in all

the Current Assets components.

2172. The Current Liabilities also decreased by 46.8% from


due to 54.6% decrease in Accrued Expenses. The Accrued

Expenses constitute about 62% of the current liabilities.

2173. The Agency’s liquidity position as measured by current

ratio improved marginally from 2.0:1 in 2013 to 2.4:1 in 2014.

This shows that the Agency has the ability to meet its short-


KOFI ANNAN INTERNATIONAL PEACEKEEPING

TRAINING CENTRE (KAIPTC)

Introduction

2174. This report covers the audited financial statements of

the Kofi Annan International Peacekeeping Training Centre

(KAIPTC) for the financial year ended 31 December 2014.

Operational results

2175. The operating Income of the Centre made up of actual

and notional went up marginally by 4.1% from GH¢26,531,753

in 2013 to GH¢27,626,678 in 2014. The major components of

this included Core Funds which grew from GH¢4,609,013 in

2013 to GH¢7,584,721 in 2014 or 64.6% rise, Internally

Generated Fund (IGF) from GH¢1,159,829 in 2013 to

GH¢1,913,439 in 2014; Fund from Germany from GH¢4,505,737

in 2013 to GH¢5,502,015 in 2014 or 22.1% increase.

The performance indicators are shown in Table below:




Item

2014

GH¢

2013

GH¢

%

Changes


Direct Costs (15,540,569) (17,098,516) (9.1)

Administrative &

General Expenses

(5,566,553) 6,212,547) (10.4)

Staff Costs (7,089,386) (5,193,268) 36.5

Investment

Income

642,562 582,923 10.2

Other Income - 223,238 -

Surplus/(Deficit) 72,733 (1,166,417) (106.2)

2176. Direct costs of the Centre decreased by 9.1% from

GH¢17,098,516 in 2013, to GH¢15,540,569 in 2014. This was

mainly due to 35.9% and 45.6% reductions in accommodation

and travel respectively. A 46.2% and 35.4% reductions in

Repaid and Maintenance (ICT Equipment) and maintenance of

vehicle respectively accounted for the decrease in

administrative and general expenses. A 36.5% rise in staff cost

was due to upward adjustments in staff salaries. Interest

realized from investment income went up by 10.2%.

2177. The Centre’s operations for the year ended with a net

surplus of GH¢72,733 as against a deficit of GH¢1,166,417

recorded in 2013, showing a 106.2 reduction in deficit.

Financial position

2178. Presented in the Table below is the financial position of

the Centre as at 31 December 2014.




2013

GH¢

2012

GH¢

%

Changes

Non-Current

Assets

13,897,952 13,470,331 3.2

Current Assets 7,613,015 8,365,244 (9.0)


Net Assets 19,565,010 20,356,253 (3.9)



GH¢13,470,331 in 2013 to GH¢13,897,952 in 2014. This was as a

result of the purchase of plant, machinery and equipment and

ICT Equipment during the year.

2180. Current assets dropped by 9.0% from GH¢8,365,244 in

2013 to GH¢7,613,015 in 2014. The decrease was as a result of

51.4% reduction in bank and cash balances from GH¢5,086,305

in 2013 to GH¢2,471,692 in 2014; even though account

receivables moved from GH¢934,204 in 2013 to GH¢2,207,857

in 2014.

2181. Current Liabilities, however, increased by 31.5% from


increase in account payable during the year.

2182. Current ratio measuring the liquidity position for 2014

shows a healthy position of 3.9:1, indicating the Centre can

meet its short-term obligations when they fall due.



MANAGEMENT ISSUE

Account Receivables

2183. We noted that account receivables for the year under

review increased significantly by 136.3% from a balance of

GH¢934,204 in 2013 to GH¢2,207,857 in 2014.

2184. We further noted that, staff debtors and accrued income

increased marginally but Trade debtors alone was

GH¢1,769,537 (2013: GH¢76,008) a rise of 2,228.1% and other

debtors dropped from GH¢536,395 in 2013 to GH¢71,817 in

2014, a reduction of 86.6%.

2185. In as much as training courses are now becoming

paramount to the Centre and bringing in revenue to augment

donor inflows, it is imperative to put in place, credit control

mechanisms to ensure that bad debts are minimized.

2186. We therefore recommended that, a credit control team

should be put in place to ensure speedy recoveries of all

outstanding debts.

2187. Management responded that, the major course is the

PLOG course and Western Accord events and efforts are being

made to contact US AFRICOM for the payment.

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