Public-Boards-2019.pdf - Ghana Audit Service

REPUBLIC OF GHANA

REPORT OF THE AUDITOR GENERAL

ON THE PUBLIC ACCOUNTS OF GHANA:

PUBLIC BOARDS, CORPORATIONS AND

OTHER STATUTORY INSTITUTIONS

FOR THE PERIOD ENDED

31 DECEMBER 2019

Our VisionTo become a wor ld-c lass Supreme Audit Institution, d e l i v e r i n g p r o f e s s i o n a l , excellent, and cost effective auditing Service.

This report has been prepared under Section 14of the Audit Service Act, 2000 for presentationto Parliament in accordance withSection 20 of the Act.

Johnson Akuamoah AsieduActing Auditor GeneralGhana Audit Service22 October 2020

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 2020

i Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2019

TABLE OF CONTENT

Para(s) Page (s) Transmittal letter iii-iv

Contributors v

Introduction 1-4 1-2

PART I

Summary of significant findings and recommendations 5-22 3-10

Audit opinion 23-29 10-11

PART II

Summary of findings and recommendations by

Ministries 30-305 12-105

PART III

Details of Findings and Recommendation

No. Departments

1. Ministry of Energy 351-666 106-177

2. Ministry of Finance 667-862 178-224

3. Ministry of Health 863-898 225-238

4. Ministry of Lands and Natural Resources 899-1029 239-269

5. Ministry of Education 1030-2046 270-645

6. Ministry of Agriculture 2047-2132 646-673

7. Ministry of Justice and Attorney-General’s 2133-2186 674-685

8. Department

8. Ministry of Communication 2187-2327 686-734

9. Ministry of Tourism & Creative Arts 2328-2379 735-744

10. Ministry of Interior 2380-2416 745-754

11. Ministry of Youth and Sports 2417-2550 755-800

12. Ministry of Employment and Labour Relations 2551-2813 801-895

ii Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2019

13. Ministry of Transport 2814-2883 896-908

14. Ministry of Trade and Industry 2884-3376 909-1045

15. Ministry of Information 3377-3477 1046-1074

16. Ministry of Works and Housing 3478-3577 1075-1095

17. Ministry of Sanitation and Water Resources 3578-3641 1096-1109

18. Extra Ministerial Agencies 3642-3710 1110-1126

iii Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2019

TRANSMITTAL LETTER

Ref. No. AG.01/109/Vol.2/145

Office of the Auditor-General

Ministries Block ‘O’

P O Box MB96

Accra

GA/110/8787

Tel. (0302) 662493

Fax (0302) 675496

22 October 2020

Right Honourable Speaker

REPORT OF THE AUDITOR GENERAL ON THE ACCOUNTS

OF GHANA: PUBLIC BOARDS, CORPORATIONS AND OTHER

STATUTORY INSTITUTIONS FOR THE PERIOD

ENDED 31 DECEMBER 2019

I have the honour to submit my audit report on the Public Accounts of Ghana-

Public Boards, Corporations and other Statutory Intuitions to you to be tabled

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

2. The report has been structured into three parts. Part I provides an

overall summary of significant findings and recommendations; Part II is a

summary of findings and recommendations in respect of each Sector

Ministry and their respective Public Boards, Corporations and other

Statutory Instructions, while Parts III gives the full details of my findings

and recommendations.

iv Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2019

3. 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

2000 (Act 584). This includes details of financial irregularities identified,

and resulting from breakdown of internal controls. The report also provides

recommendations, and which implementation is reasonably expected to help

rectify identified weaknesses in the financial management 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 to enable me prepare this report.

5. I am also grateful to the Management and Staff of the various

institutions for their cooperation during the audits.

6. Finally, I would like to thank the Public Accounts Committee for their

continued support for the work of the Office of the Auditor General,

especially, in reviewing my reports and reinforcing recommendations to the

Public Boards and Corporations for purposes of prudent management of the

public purse.

Yours faithfully

JOHNSON AKUAMOAH ASIEDU

ACTING AUDITOR GENERAL

THE RT. HON. SPEAKER

OFFICE OF PARLIAMENT

PARLIAMENT HOUSE

ACCRA

v Report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2019

Contributing audit firms

Benning, Anang & Partners

PriceWaterhouseCoopers

Boateng, Offei & Co.

Osei Owusu-Ansah & Associates

Kwesie And Partners Chartered Accountants

AAK Services Chartered Accountants

Gogoe & Associates

Asamoa Bonsu & Co. Chartered Accountants

Ayew Agyeman & Co. Chartered Accountant

Kwesie And Partners Chartered Accountants

Ernst & Young

James Quagraine And Associates

Asafu-Adjaye & Partners

Opoku Andoh And Co.

EAV & Associates Chartered Accountants

Kwame Asante & Associastes

Baker Tilly Andah + Andah

Opoku, Andoh & Co.

Eddie Nikoi Accounting Consultancy

Ofori Anom Consult

MGI O.A.K Chartered Accountants

A.D. & Associates Chartered Accountants

JOP Consult Chartered Accountants

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 2019

REPORT OF THE AUDITOR-GENERAL ON THE

PUBLIC ACCOUNTS OF GHANA-PUBLIC BOARDS,

CORPORATIONS AND OTHER STATUTORY

INSTITUTIONS FOR THE YEAR ENDED 31 DECEMBER 2019

Introduction

The audit of the accounts of Public Boards, Corporations and other

Statutory Institutions for the period ended 31 December 2019 has

been conducted in accordance with Article 187(2) of the 1992

Constitution of the Republic of Ghana.

2. The objective of the audit is to express an opinion on the

accounts submitted to me by each Public Board, Corporation and

other Statutory Institutions for my examination.

3. I also evaluated the adequacy of the system of internal

controls, compliance with relevant legislations, stated accounting

policies and applicable financial rules and regulations of these

organisations.

4. Matters raised in this report are among those which came to

my notice during the period ended 31 December 2019. The

observations and recommendations arising out of the audits were

discussed with Managements of the affected Institutions and

comments received, where appropriate, have been incorporated in

this report. The report is in three parts:

Part I provides a summary of the significant audit findings and

recommendations;


Part II provides the significant findings and recommendations

according to Sector Ministries; and

Part III deals with the details of findings and recommendations


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 2019

NO Type of

Irregularity %

Amount (GHC)

Amount (US$)

Amount (€)

Amount (£)

Total Amount (GH¢)

1 Outstanding Debtors/Loans Recoverable 88.87 4,851,565,319 1,437,088.98 4,859,727,984

2 Cash Irregularities 3.93 212,533,506 431,506.36 4,655.00 1,564.00 215,025,782

3

Payroll

Irregularities 1.21 66,248,946 0 0 66,248,946

4 Procurement Irregularities 0.68 20,302,867 3,000,000.00 0 0 37,342,867

5 Tax Irregularities 3.65 198,721,247 0 146,094.40 0 199,651,868

6

Stores

Irregularities 0.05 1,802,905 0 148,453.00 0 2,748,551

7 Contract Irregularities 1.60 87,652,433 0 0 0 87,652,433

Sub-total ($€£)

4,868,595.34 299,202.40 1,564.00

Total 100 5,438,827,223 27,653,621.5 1,905,919.28 11,667.44 5,468,398,431


6. Table 1 shows that, the total irregularities stood at

GH¢5,468,398,431which included US$ 4,868,595.34 converted into

Cedis at the prevailing exchange rate of GH¢5.68 to the US$1 as at

31 December2019, €299,202.40 converted into Cedis at the

prevailing exchange rate of GH¢6.37 to the €1 as at 31 December

2019 and £1,564.00 converted into Cedis at the prevailing exchange

rate of GH¢7.46 to £1 as at 31 December 2019.

Table 2: Comparative Analysis of Irregularities from 2015-2019 (figures

rounded to the nearest cedi)

7. The total irregularities figure of GH¢3,311,963,314 for 2015

decreased to GH¢718,085,208 in 2016. Total irregularities went up

to GH¢12,002,880,339 in 2017. However, the total irregularities

declined by GH¢8,995,621,415 from the 2017 figure of

GH¢12,002,880,339 to GH¢3,007,258,924 in 2018 and went up by

81.8% to GH¢5,468,398,431 in 2019.

No. Type of Irregularities

2015 GH¢

2016 GH¢

2017 GH¢

2018 GH¢

2019 GH¢

1.

Outstanding Debtors/Loans /Recoverable

Charges

2,705,086,348

302,233,654

11,813,109,116

1,801,416,815

4,859,727,984

2. Cash

Irregularities

222,227,944 246,015,992 149,208,182 1,087,713,932 215,025,782

3. Payroll

Irregularities

1,424,941 494,728 2,540,432 3,163,473 66,248,946

4. Procurement

Irregularities

568,322 91,506,091 6,431,451 15,121,639 37,342,867

5. Tax Irregularities 377,410,669 24,291,448 6,394,113 4,371,199 199,651,868

6. Stores

Irregularities

58,845 47,830,661 8,946,359 734,461 2,748,551

7. Contract

Irregularities

5,186,245 5,782,634 16,250,686 94,737,405 87,652,433

Total 3,311,963,314 718,085,208 12,002,880,339 3,007,258,924 5,468,398,431


8. The 81.8% or GH¢2,461,139,507 jump from the 2018 total

irregularities figure of GH¢3,007,258,924 to GH¢5,468,334,006 in

2019 was occasioned mainly by a surge of GH¢3,058,438,311,169

in outstanding debtors/loans/recoverable component of the total

irregularities in 2019.


GH¢ USD GH¢ EUR GBP USD GH¢ GH¢ USD GH¢ GH¢ EUR GH¢

Min is try of Health - - 35,146 - - - - - - 2,842 26,437 - -

Min is try of Lan d s & Natu ral

Res ou rces4,502,007 - 1,193,801 - - - 69,472.00 17,354 - 37,057 20,560 - -

Min is try of Ed u cation 12,811,097 1,437,089 40,476,461 - - - 3,850,992.04 10,083,654.38 3,000,000 261,969.22 329,479.14 - 86,832,909.00

Min is try of Food &

Ag ricu ltu re 7,777,626 - 13,860,374 - - - - - - - 1,060,805 - -

Min is try of Com m u n ication - - 3,275,790.11 - - 108,767 339,479.41 3,628,038 - 48,486 - - 210,300

Min is try T ou ris m , Cu ltu re

& Creative Arts - - - - - - - 138,295 - - - - 9,224

Min is try of In terior - - - - - - 138,983.18 - - - - - -

Min is try of Y ou th & S p orts 242,300 - 3,894,538.09 - - 214,484 20,732.60 - - 2,138.25 - 148,453 -

Min is try of Fin an ce 11,068,482 - 445,163 - - - - - - 365,542 - - 600,000

Min is try of En erg y 234,450,405 - 632,208 - - - 44,367,132 - - 193,755,445 365,624 - -

Min is try of Em p loym en t

an d Lab ou r Relation s 4,479,558,581 - 89,032,135 - - - 593,726 990,638 - - - - -

Min is try of T ran s p ort - - 5,000,000 - - - - 3,011,507 - 3,986,035 - - -

Min is try of T rad e an d

In d u s try 53,362,884 - 53,202,787 4,655 1,564 108,256 3,114,539 1,136,226.20 - 232,213.71 - - -

Min is try of In form ation 5,228 - 1,171,394.30 - - - 192,447.82 - - 9,319 - - -

Min is try of W orks &

Hou s in g 45,919,268 - - - - - 13,535,122 1,297,154 - - - - -

Min is try of S an itation an d

W ater Res ou rces 1,867,441 - 139,858 - - - - - - 20,200.00 - - -

Extra Min is terial Ag en cy - - 173,850 - - - 26,320 - - - - - -

T o ta l 4,851,565,319 1, 4 3 7 , 0 8 9 2 12 , 5 3 3 , 5 0 6 4 , 6 5 5 1, 5 6 4 4 3 1, 5 0 7 6 6 , 2 4 8 , 9 4 6 2 0 , 3 0 2 , 8 6 7 3 , 0 0 0 , 0 0 0 19 8 , 7 2 1, 2 4 7 1, 8 0 2 , 9 0 5 14 8 , 4 5 3 8 7 , 6 5 2 , 4 3 3

Contract

Irregularities

Table 3: Summary of Financial Irregularities According to Sector Ministries

MinistryOutstanding Debtors/

Loans RecoverableCash Irregularities

Payroll

Irregularities

Procurement

Irregularities

Tax

Irregularities

Stores

Irregularities

7 Report of the Auditor General on the Public Accounts of Ghana – Public Boards,

Corporations and Other Statutory Institutions for the year ended 31 December 2019

Outstanding Debts/ Loans Recoverable - GH¢4,859,727,984.00

9. These irregularities represent trade debtors, staff debtors and

outstanding loans. Included in this figure is an amount of

GH¢3,643,789,172.39 loans granted by SSNIT to other 16 related

institutions who have defaulted in paying back the facility and

workers contributions due from Controller and Accountant

General’s Department. Absence of effective debt collection policies,

non-existence of credit controls to retrieve the debts and

Management’s indifferent posture towards loan recovery contributed

significantly to these anomalous conditions. Also, improper

maintenance of records on debtors, the absence of debtors’ ageing

analyses, non-documentation of agreements stipulating the terms

and conditions of loans, failure to ensure that loans are repaid and

Management’s non-compliance with rules and regulations

accounted for these irregularities.

10. I recommended that Management of Public Boards,

Corporations and other Statutory Institutions should strictly adhere

to rules and regulations with regards to debts management. They

should also put in place proper policies for the management of loans

as well as ensuring that loans are repaid on due dates to avoid or

minimise the occurrence of bad debts.

Cash Irregularities - GH¢215,025,782.00

11. Cash irregularities related to the misapplication of funds, non-

retirement of imprest, payments not authenticated, payment of

Board Allowances to Council Members without Ministerial approval,

losses envisaged from projects undertaken by corporate entities and

outright cash shortages. Out of the total figure of GH¢215,025,782

cash irregularities, GH¢80,914,176.00 represented loss envisaged

by SSNIT as a result of the affordable housing projects undertaken

by SSNIT. These occurred as a result of poor oversight responsibility,



non-existent controls. Other contributory factors were finance

officers’ failure to properly file and keep records, Management’s

failure to ensure the security and safety of vital documents, non-

maintenance of returned cheque registers and management’s inertia

in complying with procedures stipulated in the Public Financial

Management Act; and poor accounting systems.

12. I therefore urged the Management of the Public Boards,

Corporations and other Statutory Institutions to strengthen

supervisory controls over their finance officers, and ensure that they

adhere to the provisions of the Public Financial Management Act

2016, (Act 921). I also recommended the authentication of all

payment vouchers, prompt payment to bank and full retirement of

accountable imprest on due dates.

Payroll Irregularities - GH¢66,248,946.00

13. These lapses were caused by the failure of Management to

exercise due diligence, and the laxity of officers in charge of payroll

validation in reviewing payment vouchers to ensure salaries were

paid to only those who were entitled as well as payroll related

irregularities. They were also caused by Management’s failure to

notify banks to stop the payment of unearned salaries. The

Controller and Accountants General’s Department also did not

promptly delete names of separated staff when notified to do so. In

other instances, Management also did not obtain financial clearance

from the Ministry of Finance before employing new staff. Contained

in the total irregularity of GH¢66,248,946.00 is an amount of

GH¢44,367,132 attributed to GRIDCO in respect of outstanding

compensation payments without the requisite documentation and

non-payments of 2017 3rd tier pensions contribution from GRIDCO

which remained unremitted as 31st December 2017.



14. I advised Management of the affected Institutions to promptly

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

government chest all unearned salaries. I also recommended that

officers in charge of payroll should exercise due care in the discharge

of their duties.

Procurement Irregularities - GH¢37,342,867.00

15. These irregularities occurred as a result of Managements’ non-

compliance with the provisions of the Public Procurement Act 2003,

(Act 663). Of the total irregularities $3,000,000.00

(GH¢13,530,000) represented improper procurement of IT services

by the University of Cape Coast from KLEOS UK LTD.

16. I once again recommended that Management of the various

Institutions should undertake procurement transactions strictly in

accordance with the provisions of the Public Procurement Act.

Tax Irregularities-GH¢199,651,868.00

17. The Tax irregularities related to failure to pay statutory tax

deductions on due dates, and non-deduction of applicable taxes.

They also related to transaction of business with non-VAT registered

persons or entities.

18. I recommended that the Finance Officers should strictly

adhere to the tax laws to ensure that all tax revenues are promptly

collected and paid to the applicable revenue agencies.

Stores Irregularities - GH¢2,748,551

19. These irregularities include non-documentation of store items,

lack of awareness of officers assigned to store duties, inadequate

supervision, and non-reconciliation of fuel purchases with fuel

station records. Included in the sum of GH¢2,748,551 is an amount



of GH¢1,060,805.25 for abandoned equipment procured by Cocoa

Research Institute between 2009 and 2012.

20. I recommended the strengthening of controls over store

management and accounting and also recommended strict

adherence to Rules and Regulations that governs the effectual

conduct of public financial business.

Contract Irregularities - GH¢87,625,433

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

of 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, non-

recovery of mobilisation and irregular additions to existing

contracts.

22. I therefore urged Management to strengthen controls over

contracts and comply with tendering procedures.

Audit Opinion

23. The financial statements submitted for validation presented

fairly financial information in accordance with applicable statutory

provisions, and my office was satisfied in all material respect that

the financial statements complied with stated accounting policies

of Government and is in accordance with generally accepted

accounting standards and essentially consistent with that of the

preceding year.

24. In my opinion all the financial statements presented a true

and fair view of the financial positions as at 31 December 2019, and

financial performance of the organisations for the year ended.



Accounts Submission

25. All the audited entities presented their financial statements

for audit except National Sports Authority, Ghana Export Promotion

Authority and Ghana News Agency who did not submit their

financial statements for audit during the time of our reviews and as

such my office could not form an opinion on the financial statements

of these three institutions.

Conclusion

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

appointing Authorities to ensure that Board of Directors are

constituted promptly for organisations having none. The absence of

Governing Boards tends to delay the signing of the financial

statements resulting in avoidable delays.

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 ensure effective and efficient internal control

systems.

29. I also recommended that Management should establish and

strengthen the Audit Committees within the organisations in

accordance with Sections 86 to 88 of the Public Financial

Management Act 2016 (Act 921) to ensure that audit

recommendations are duly implemented.



PART II

SUMMARY OF FINDINGS AND

RECOMMENDATIONS

MINISTRY OF ENERGY

NORTHERN ELECTRICITY DISTRIBUTION COMPANY (NEDCo)

NEDCO Head Office

30. Our review of Internal Audit Reports covering the 2018

Financial Year of the Company disclosed that a total amount of

GH¢632,207.68 in respect of sales revenues collected at three (3)

Operational Areas of the Company were not lodged into the

respective bank accounts. We recommended that Management

should intensify its supervisory role over the activities of the Area

Managers, the Finance Officers and Account Assistants and also

recommended that the sum of GH¢632,207.68 being funds

embezzled should be recovered from Tsitsia Samuel and four others.

31. The E-Business Suite (Oracle) software which the Company

uses for its financial transactions has not been approved by the

Auditor-General in contravention of Section 11(3) of the Audit

Service Act, 2000 (Act 584). We recommended to Management to

seek retrospective approval from the Auditor-General.

32. Contrary to section 1.4.5 of the Public Procurement

Authority’s Manual, we found that the Company’s Entity Tender

Committee (ETC) did not submit any monthly report on its

procurement activities to the Public Procurement Authority.



33. We advised Management to strictly comply with the

provisions of the procurement laws and manual to avoid any

sanctions.

34. Contrary to Section 20(d) of the Public Procurement

(Amendment) Act, 2016 (Act 914) which legislates on meetings, we

noted that the Entity Tender Committee (ETC) met only twice, on the

13th June and 26th November, 2018 for the period under review.

35. We urged Management to ensure that the Entity Tender

Committee meets at least once every quarter as required by law.

36. Management of the NEDco procured goods and services worth

GH¢196,321.92 from non-VAT registered entities. This contravenes

Regulation 183(4) of the Financial Administration Regulations (FAR),

2004 (L. I 1802). We advised Management to comply with the

provisions of the FAR and any other applicable laws in all their

procurement transactions.

Tamale Operational Area

There was no Inventory Register at the Tamale Area Office of NEDco

to effectively monitor and control its assets contrary to Regulation

183(3) of the FAR 2004, L.I. 1802. We recommended that

Management should prepare an inventory register and our office

informed for verification failing which Section 98(2) of the Public

Financial Management Act 921 shall apply.

VOLTA RIVER AUTHORITY (VRA) 2018

37. We reviewed minutes of the VRA board as well as letters

appointing board members and found that the board consisted of

the chairperson, the Chief Executive and six other persons making

an 8-member Board instead of a 9-member Board in contravention



of Section 1 of the Volta River Development (Amendment) Act, 2005

(Act 692). We advised the Board and Management to liaise with the

appointing authority to properly constitute the Board in accordance

with Section 1 of the Volta River Development (Amendment) Act,

2005 (Act 692).

38. We noted that, 96 residential facilities of the Authority,

comprising two- and three-bedrooms units remained unoccupied

since March 2014. We urged Management to take immediate steps

to put the affected housing facilities to economic use without further

delay.

39. Management of the Authority in 2018 used “Request for

Quotation” method of procurement instead of competitive tendering

in the award of 3 contracts amounting to GH¢720,078.99. We

advised Management to regularise these contracts in accordance

with Section 50(3) of the Public Procurement (Amendment) Act, 2016

(Act 914) and inform our office for verification.

VRA RESETTLEMENT TRUST FUND (VRA/RTF)

40. Our review of the financial records showed that the Board’s

Committee on Finance, over the period, invested some funds in

various financial institutions with the intention of earning returns

to complement the major sources of funds from Volta River Authority

but were not guided by any documented policy on investment. We

further noted that the managing trustees were unable to recoup the

principal and the returns amounting to GH¢1,031,184. We

recommended that Management should develope an investment

policy to take into account the unpredictability nature of the

financial markets and to minimize, where feasible, any potential

adverse effects on the Organisation's financial performance; the

focus being on capital retention rather than maximizing revenue.



Also Managing trustees should pursue collection of the lock up

funds from the affected financial institutions.

41. We noted that, based on Article 11 of the Trust Deed,

membership of the Volta River Authority Trust Fund trustees is

sixteen (16). The current re-demarcation of regions in the country,

we envisage the number of trustees would increase from the current

sixteen (16) thus making governance arrangements expensive. We

also noted that since authentication of the Trust Deed in 22 July

1996, no revisions have been carried out. We urged the Managing

Trustees to liaise with the Minister and the Authority to initiate a

process to review the trust deed to keep project delivery in the

resettlement communities efficient.

GHANA GRID COMPANY LIMITED 42. Contrary to Section 3(3) of the National Pensions Act 2008,

(Act 766) Management did not remit to the custodian, Ecobank

Ghana Limited monthly third tier pension contributions totalling

GH¢21,986,104 as at the year end 31 December. This amount is

made up of the principal contributions due of GH¢2,616,586 and

accrued interest of GH¢19,369,518, which has accrued since

August 2013. We recommended to Management to ensure that,

contributions are remitted to the appropriate custodians within the

required period as set out in Section 3(3) of Act 766 to avoid payment

of penalties.

43. Ghana Grid Company acquired VAT agency status in June

2017, however it did not charge output VAT per a directive from the

Ministry of Finance. There was however no formal documentation or

correspondence for this directive. The approval from the Ghana

Revenue Authority has also not been obtained in respect of this

directive. In order to avoid penalties from GRA, we recommended

that Management should obtain approval from the Ministry of



Finance and the Ghana Revenue Authority in respect of VAT not

charged on transmission services provided.

44. The Company did not have a signed transmission service

agreement (TSA) with 8 customers and power generators, although

its accounting and finance manual requires a contract to be in place

for transmission services rendered. Also, TSA’s for 7 customers had

expired and have not been renewed. We recommended to

Management to sign and renew all expired TSA agreements with all

its customers.

45. Contrary to Section 91(1) of the PFMA 2016, and Clause 16.1

of the GRIDCO transmission agreement with customers,

Management did not collect from 10 customers a total of

GH¢234,338,331, which has been outstanding for more than twelve

(12) months as at 31 December 2017. We recommended to

Management to assess the recoverability of these balances. In

addition, clauses in the respective transmission agreement

including clause 16.2 (reduce capacity for no-payment within 10

working days), 16.3 (termination of service) and 16.1 (application of

bank guarantees) aimed at recoverability of transmission fees should

be enforced.

46. Based on trade receivable confirmation responses received, 4

customers reference table 23 disputed amounts totalling

GH¢183,765,553 charged by the Company as regulatory levies,

ancillary charges and power infrastructure levies. We recommended

that Management should engage the Public Utilities and Regulatory

Commission (PURC) and the respective customers to resolve this

dispute.

47. There was no on-lending agreement between VRA and GRIDCo

in respect of facilities VRA borrowed funds to construct and

transferred to GRIDCO. The asset was recognised as long-term



liabilities in GRIDCO’s accounts. We advised Management to engage

VRA and the Ministry of Finance to conclude on an on-lending

agreement stating the terms of the facility.

48. Bui Power Authority responded to our trade receivable

confirmation that GRIDCo owed them GH¢28.96 million. This has

however not been recorded in the books of GRIDCo. Discussion with

Management disclosed that these amounts have not been agreed

upon. We recommended to Management that they should reconcile

these amounts with Bui Power Authority (BPA) and once an

agreement is reached, Management should recognise these

transactions.

49. Contrary to Regulation 39(2c) of FAR 2004, an amount of

GH¢22,381,028 recognised as compensation payments were not

supported with independent valuer’s report. We recommended to

Management to ensure that all compensation payments are

recognised and adequately supported. In addition, Management

should make such documents available to the audit team.

50. VRA in response to our trade payables confirmation disputed

the balance due from GRIDCo as at 31 December 2017. There was

difference of GH¢53,752,944 in favour of VRA. The variance is as a

result of different rates used in the computation of the transmission

losses. We recommended to Management to engage the Public

Utilities and Regulatory Commission (PURC) and VRA to resolve the

dispute. In addition, Management should recognise the amounts in

the general ledger once resolved.

51. GRIDCO as at 31 December 2017 breached the loan covenants

ratios with 4 of its lenders referenced in table 28. This could trigger

early repayment, non-approval of subsequent disbursement or



penalties. We advised Management to monitor loan covenants to

ensure compliance, as non-compliance may restrict access to funds.

52. In contravention of Section 91(1) of PFMA 2016, Act 921,

GH¢112,074 advanced to thirteen (13) institutions has either not

been retired or the services for which the payments were made have

not been rendered for over six months to six years. We recommended

to Management to put in place measures to recover these amounts,

if the purpose or services for which the amounts were paid are no

longer needed. We recommended to Management to investigate the

alleged stolen items and put in place controls to prevent this from

recurring.

PUBLIC UTILITIES REGULATORY COMMISSION

53. The recovery rate of the fines due from Ghana Grid Company

Limited (GRIDCo) continues to deteriorate over the three-year period

from 2015 to 2017. In 2017, the percentage collected was 20.50%

compared with that of 2016 of 24.38% and 2015’s 39.71%. Also, the

Ghana National Gas Company (GNGC) remitted zero from the

amounts of GH¢137,133,529 and GH¢230,338,601 for 2016 and

2017respectively due from them. We recommended to Management

to continue to strengthen its consultative arrangements with

GRIDCo and GNGC. The sector Ministry should be involved in the

discussions.

54. The Funds earmarked for Pro-Poor Water, Energy Commission

and Rural Electrification, may not be available to achieve the

intended objectives due to the unfair allocation of funds received.

Management has been advised to evaluate current terms of

allocating funds received aimed at ensuring, a much equitable

modality for the consideration and approval of the Commission’s

Board



NATIONAL PETROLEUM AUTHORITY

55. Management did not reconcile its Account receivable balances

as confirmation received showed conflicting balances between the

ledger balance and the amount confirmed. We advised Management

to take the necessary measures to reconcile the differences in

balances.

MINISTRY OF FINANCE

NATIONAL DEVELOPMENT PLANNING COMMISSION (NDPC) 56. We noted during the examination of payment vouchers that a

total amount of GH¢850,616.75 was spent on Consultancy fees.

There were no official receipts to acknowledge receipt of those

payment by beneficiaries. We advised that hence forth the

Accountant should demand receipts and other relevant documents

and attach them to the respective vouchers for our reviews.

Furthermore, official receipts and all relevant documentation needed

to fully account for the amount of GH¢850,616.75 should be made

available to the audit team for our verification.

57. We noted that the Commission spent GH¢45,898.00 on staff

who were admitted in various Medical centers for consumption of

poisonous food contracted by Administration for stakeholders

meeting. We advised that Management should as matter of urgency

put in place food policy to safeguard the lives of staff and other

participants of various meeting at the instance of the Commission.

58. The Commission paid an amount of GH¢17,422.49 to Ms.

Veronica Baffoe who was on Korea International Cooperation Agency

(KOICA) scholarship as travel time and shipment allowance without



supporting documents. We recommended that the Finance Officer

should obtain the supporting documents to cover these payments

and inform our office accordingly, failing which we may disallow and

surcharge the authorising and paying officers with the amount

involved in accordance with Section 18 of the Audit Service Act 2000,

Act 584.

GHANA INVESTMENT FUND FOR ELECTRONIC

COMMUNICATIONS

(GIFEC)

59. The Financial Statements of GEFEC disclosed

GH¢10,900,000 as receivable from Ministry of Finance. This was

part of the debt of Ghana Telecom (GT), which government through

the Ministry of Finance agreed with Vodafone to absorb as part of

GT take over arrangement in July, 2008. We recommended to

Management of the Fund to continue to engage the Ministry of

Finance to ensure the settlement of this debt.

NATIONAL LOTTERY AUTHORITY

60. The Authority has nine legal cases with an estimated value of

GH¢160,390,000 at various Courts. The outcome of these cases may

weaken its financial position in the event that the Authority loses

the cases. We recommended to Management to ensure that the

Authority does not engage in a lot of litigations and also institute

measures to reduce its financial exposures in these legal battles.

61. Management did not renew the expired contracts for

promotion activities with four organisations with an expected

revenue of GH¢600,000. We advised Management to regularise these

contracts to avoid loss of the expected revenue and litigations.

62. Due to laxity of controls in the Management of Post of Sales

Terminal (POST) and debtors, there were slow movements in the



balances over the past four years. Management was advised to

strictly comply with the provisions in the policy to prevent increase

in its bad debts.

GHANA PUBLISHING COMPANY LIMITED

63. Management did not sign any Maintenance and Support

agreement with vendors of the accounting and payroll package.

Additionally, the dataflow software is incapable of properly exporting

or importing data to Excel seamlessly. Data so exported are in most

cases distorted. We recommended that Management sign a service

level agreement with the software vendors, and ensure that training

reports are submitted after each training programme.

64. Contrary to Section 13 of the Audit Service Act 2000, our

review of the staff debtors disclosed that, personal account for staff

was not maintained, the list of balances from payroll software did

not provide full complement of transactions between the company

and staff. Also, the total of the schedule of balance generated by the

payroll software showed a difference of GH¢47,394.14 lower than

the total of the control account of GH¢188,456. We recommended

and Management agreed to ensure that the differences are

reconciled and recovered from the identified staff of the company.

65. Bank reconciliations for the various banks were not done

timely by Management. There were differences totalling

GH¢258,099.58 between the amounts reported in the Reconciliation

Statements and the ledger balances of 3 bank accounts. Also, Bank

Reconciliation Statements were not prepared for 9 bank accounts.

We recommended to Management to put in controls to ensure that

monthly bank reconciliation statements are prepared on time.

Management should investigate and rectify differences in ledger

balances and reconciliations statements.



66. Contrary to Regulation 183 (4) of the Financial Administration

Regulations 2004, (LI 1802), Management procured goods and

services totalling GH¢273,755.00 from non-VAT registered persons.

Management was advised to strictly comply with the regulations, by

procuring from VAT registered persons or entities.

67. We noted that in contravention of Regulation 19(1) of the

Value Added Tax Regulations, 1998 (L.I.1646), the company sold

goods and provided services totalling GH¢91,786.50 to 5 Institutions

without charging VAT. We recommended to Management to ensure

that the VAT laws are fully complied with.

G-PAK LIMITED

68. Management invested an amount of GH¢1,000,000 with Utrak

Savings and Loans which was expected to mature on 27th December,

2018, but Utrak released GH¢700,000 out of the accumulated value

of GH¢1,127,740.25 with GH¢427,740.25 still outstanding. We

advised Management to institute measures that would ensure that

the difference of GH¢427,740.25 is recovered.

MINISTRY OF HEALTH

NATIONAL HEALTH INSURANCE AUTHORITY

Fomena District 69. We observed that 13 payment vouchers (PVs) totalling

GH¢5,136.00 from NHIA, Fomena Office were not accounted for. We

recommended that the Accountant should as a matter of urgency

account for the said expenditures without fail by producing all the

relevant expenditure authentication documents for our audit

perusal. Failing this the expenditures should be refunded by the

approval and authorising officers, the District Manager Mr. Annan-

Turkson Thomas and Accountant-Patrick Appiah Kodua.



70. We noted that payments on 9 vouchers totalling GH¢7,575.00

made to the District Manager and the Accountant of the Authority

as claims of travel and transport (T&T) and other allowances were

without any evidence of activities undertaken. We therefore

recommended that the expense of GH¢7,575.00 should be refunded

by the Accountant Patrick Appiah Kodua and the Manager Mr.

Annan-Turkson Thomas.

71. We noted that the Fomena NHIA office could not present six

(6) payment vouchers totalling GH¢2,916.00 for audit. We therefore

recommended that the six (6) payment vouchers should be made

available for audit scrutiny, failure of which the amount of

GH¢2,916.00 should be refunded by the District Manager Mr.

Annan-Turkson Thomas and the Accountant – Patrick Appiah

Kodua jointly.

Obuasi

72. We noted that an amount of GH¢23,357.96 was used to

purchase different store items which were not receipted into the

Authority’s stores and same recorded in their ledger. We

recommended that Management should account for the stores items

in their ledgers or the amount of GH¢23,357.96 jointly refunded by

the Manager, Mr. Kwabena Kyeremanteng and the Accountant, Mr.

Domingo Adongo.

73. We observed that Management of the NHIA, Obuasi did not

account for fuel coupons worth GH¢3,080.00 procured for the

running of the Authority’s machineries. We recommended that the

Municipal Manager and the Accountant who were the custodians of

the said fuel coupons should provide justification regarding the



usage of the coupons for our audit review, failing which the amount

of GH¢3,080.00 should be refunded by them.

74. We noted that the Accountant of the Obuasi Municipal Health

Insurance Scheme, did not withhold statutory taxes totalling

GH¢2,841.98 from purchases of goods and services made between

2013 and 2015. Management however paid the tax amount out of

the coffers of the Authority following a tax audit carried out on the

outfit by the GRA. We recommended that the Municipal Manager

and Accountant should jointly and personally refund the amount of

GH¢2,841.98 to the NHIA Obuasi and recover same from the

suppliers and service providers as required by Section 117 of Income

Tax Act 2015 (Act 895) if they so wish. Evidence of the refund should

be forwarded to our office for verification.

Asawase

75. We noted during the audit that revenues collected between

July, 2018 and January, 2019 amounting to GHȼ462,207.00 was

under paid by GHȼ19,519.00. We therefore recommended that the

issue should be reported to the police and the terms and conditions

of the bond entered between the NHIA and Mr. Jones Nana Tsibu be

executed.

MINISTRY OF LANDS AND NATURAL

RESOURCES

LANDS COMMISSION (CONSOLIDATED)

Corporate Division

76. A review of ground rent ledgers for the period under review

showed that 43 lessees in Achimota residential area, Ring Road,

North Industrial Area and Roman Ridge residential area have not



been paying ground rent since 1960, to the Commission. We

recommended that the head of the ground rent unit should update

the information of the forty-three lessees and recover the rent due

from 1960 and our office informed for verification. We also

recommended that Management should commission a full and

detailed audit of the ground rent unit to address all relevant

anomalies.

77. Management of the Commission did not remit an amount of

GH¢1,163,470.17 in respect of rent collection on behalf of the Office

of the Administrator of Stool Lands to the Administrator for the

period under review. We recommended to Management to remit

same to the Office of the Administrator of Stool lands without further

delay.

78. Management of the Commission did not comply with the

Ministry of Finance’s directive on the On-site/Daily collection

Programme as a mechanism for the collection of government revenue

by banks on behalf of Ministries, Departments and Agencies (MDAs).

Universal Merchant Bank was contracted for this revenue collection,

but received cash payment of GH¢3,247,375.00 and cheque

payments of GH¢6,554,041.00 on purchase of government lands at

Borteyman. We recommended that Management should comply with

the contract agreement between the Ministry of Finance and the on-

site Bank on behalf of the MDAs to enhance financial discipline.

79. A review of vehicle files of the Commission for the period under

review indicated that, the Commission did not have legal title to

seven vehicles as these vehicles were in the names of Toyota Ghana,

CFAO, Stelin Automobile or other individuals. We advised

Management to ensure that legal title to seven vehicles revert to the

Commission.



80. Management of the Commission did not provide the audit

team with records on the allocation of Government Lands at

Borteyman to enable the team establish and confirm the debtors

figure in the financial statements for the period under review. We

recommended that, Management should make the records on

Borteyman government lands available to the team without further

delay.

Public and Vested Lands Management Division 81. Contrary to Stores Regulation 0502, stores purchased

totalling GH¢20,560.00 were not accounted for in the store records.

We therefore recommended that the items in question be accounted

for failing which the amount should be recovered from the

authorising and approving officers.

82. Our review of payment procedures, disclosed that an amount

of GH¢700.00 was paid in respect of fuel and lunch was not

supported with receipts. We recommended that the payment should

be supported with the relevant receipts, failure of which the amount

should be recovered from the signatories to the account.

Survey and Mapping Division

83. We observed that 15 staff members had their names appearing

in the payment vouchers after their separation from the

establishment by way of retirement, resignation and death for the

years under review, resulting in a total unearned salary of

GH¢54,957.26. The unearned salary was GH¢10,150.91 and

GH¢44,806.35 for 2016 and 2017 respectively. We recommended to

Management to recover the total unearned salaries of

GH¢54,957.26, and pay same to Government chest and produce the

Treasury Receipt supporting the payment, for our verification.

84. Our examination of payment vouchers disclosed that 13

payments totalling GH¢37,057.30 were made to various payees



without deduction of withholding tax. We recommended that

Management takes steps to ensure that the due tax component on

the amount of GH¢37,057.30 is recovered from the affected payees

and paid to Ghana Revenue Authority (GRA).

85. We noted that instead of an amount of GH¢26,150.00

budgeted and approved for ‘Jubilee Gate Fieldwork’ that is, the

demarcation and Survey of the Jubilee Gate Site (Nungua farms) an

amount of GH¢53,781.00 was spent on the project resulting in an

excess expenditure of GH¢27,631.00. We recommended to

Management to produce approval to justify the excess expenditure

of GH¢27,631.00 for our inspection.

86. Our review of sampled payments to temporary staff indicated

that a total amount of GH¢1,160.50 deducted in respect of

employees Social Security contribution was not supported with

evidence of remittance to SSNIT. We recommended that

Management should ensure that all contributions deducted but not

remitted be paid to SSNIT as required by law.

Land Valuation Division 87. During our physical inspection of assets, we noted that two

official vehicles belonging to Land Valuation Division were grounded

between 1½ to 2 years. We advised Management either to dispose of

them in accordance with prescribed legislation or repair them to

avoid further deterioration.

88. Contrary to Regulation 297 of FAR L.I 1802, we observed

during the examination of the Electronic Salary Payment Vouchers

that one separated staff who retired on 3 May 2016 was paid

unearned salary totalling GH¢4,312.89. We recommended that

Management should make strenuous effort to retrieve the amount

and pay same to government chest.



Land Registration Division

89. Contrary to Section 8.3(b) of the Staff Training and

Development Policy of the Lands Commission Nana Kojo Esilfie, a

Land Administration Officer was granted a year study leave with pay

to pursue a professional Law course at the Ghana School of Law,

Accra for the 2016/2017 academic year. Though the academic year

ended in August 2017. The officer has since not reported to work

resulting in unearned salary payment of GH¢9,041.25 and has also

failed to comply with the bond condition governing the study leave

with pay.

We recommended to Management to ensure that the officer refunds

the amount of GH¢9,041.25 paid to him with interest at the

prevailing Bank of Ghana interest rate and our office informed for

verification.

MINISTRY OF EDUCATION

CHARTERED INSTITUTE OF TAXATION

90. Accountable imprest and other payments for various activities

of the Institute totalling GH¢25,170.08 had not been retired as at

the end of the financial year. We advised the Spending Officer to

ensure that the amount is properly accounted for.

91. In violation of Section 43 (1) of the Public Procurement Act,

Management purchased office equipment and stationery and other

services totalling GH¢414,690.03 without obtaining alternative

quotations. Management was advised to comply with the Act.

NATIONAL BOARD FOR PROFESSIONAL AND TECHNICIAN EXAMINATIONS (NABPTEX)

92. Due to inaccurate data kept by NABPTEX on three (3)

Technical Universities and one (1) Polytechnic, revenue amounting

to GH¢165,240.00 was not collected. We recommended to



Management to ensure that the above stated amount is collected

from the Institutions involved, while necessary steps are taken to

put the right system in place for gathering accurate data on all the

institutions to help in collecting all the revenue due from them.

93. We observed that the Accounts Office collected revenue in

cash ranging from GH¢100.00 to GH¢5,000.00 as examination,

affiliation, expert review and other fees during the year under

review, contrary to Regulation 48(2) of the FAR. We advised

Management to ensure that, with the exception of the sale of past

questions which are in small amounts, all other revenue should be

collected in cheque or bankers’ draft.

94. MAK-EDU Consult Limited did not develop and implement a

student information management system and E-learning solutions

for NABPTEX as required in a Contract agreement. Part payments of

GH¢215,695.00 out of Contract price of GH¢345,356.00 had been

made to him. The Board should pursue MAK- EDU to refund GHC

215,695.00 or develop and implement all the modules as stated in

the Contract.

95. The Governing Council of NABPTEX did not comply with the

judgement of the Supreme Court of Ghana dated 9th May, 2018

quashing the termination of appointments of Mr. Francis Owusu-

Mensah and Mr. Stephen Onwona Adjapong. The Council should in

consultation with the Minister of Education and relevant institutions

ensure compliance with the judgement of the Supreme Court of

Ghana.

96. The Board over spent its budgets for 2017 and 2018 by

GH¢1,641,185.28 and GH¢2,220,595.70 respectively. We urged

Management to use the appropriated estimate from Parliament to

control disbursement of funds.



NATIONAL ACCREDITATION BOARD 2015 - 2016

97. Contrary to Regulations 2(b), 5(4), 22(2) and 23(4) of LI 1984

(2010) of the National Accreditation Board Regulations, the Board

reviewed its service charges at the 92nd Board meeting without

parliamentary approval. We recommended that Management should

take steps to get parliamentary approval in order to avoid any legal

challenges.

98. We observed that the Board did not take any action on those

who flouted the law by advertising, operating and running of

unaccredited Institutions and Programmes. We recommended that

the Board should ensure compliance with the Act and persons found

culpable should be dealt with in accordance with the law.

NATIONAL COUNCIL FOR TERTIARY EDUCATION

99. We noted that an amount of GH¢2,974,914.76 was disbursed

from the Council’s Trust Funds (feeding grant and others) without

approval from Ministry of Finance. We urged Management to

transfer the GH¢2,653,887.76 back to the Trust Funds, failing

which the authorising and paying officers shall be sanctioned in

accordance with Section 98(1)(d) & (2)(b) of the Public Financial

Management Act (PFM).

100. An accounting software named, Tally ERP 9 was purchased off

the counter in the year 2012. However, the Council did not seek for

prior approval from the Auditor-General before implementation.

Going forward we urged Management to ensure that approval is

sought from the Auditor-General before the purchase and usage of

anaccounting software.



UNIVERSITY OF PROFFESSIONAL STUDIES ACCRA (UPSA)

101. We noted that out of a total amount of GH¢2,302,369.67

released to some officers of UPSA to transact official business on

behalf of the University, only GH¢353,279.43 was accounted for

with the necessary supporting documents leaving a difference of

GH¢1,949,090.24 to be accounted for, though the activities for

which the funds were released had been conducted long ago. We

recommended that; the amount be adjusted to the personal advance

accounts in the names of individual imprest holders in line with

Regulation 288(1) of the Financial Administration Regulations.

102. We noted during our review that, Management of UPSA, Accra,

signed a retainer agreement dated 16th March 2014 and paid an

amount of GH¢263,670.00 to Lithur Brew and Company a law firm

as a retainer fees without evidence of the provision of any legal

services to the University. We also noted that Lithur Brew and

Company was appointed through sole sourcing without recourse to

the provisions of the Public Procurement (Amendment) Act, 2016

(Act 914).

103. We advised that, the former Vice Chancellor; Prof. Joshua

Alabi and Lithur Brew and company be made to refund the amount

with an interest at the prevailing Bank of Ghana interest rate. We

further advised that, Management sets up a legal directorate that

shall facilitate all legal matters for the University through the

Attorney General’s department.

NATIONAL SERVICE SCHEME

104. Management authorised and paid salaries amounting to

GH¢688,132.06 to four (4) Government appointees from IGF instead

of government subvention. We recommended that the amount paid



to these appointees should be recovered when their salary arrears

are paid to them.

105. We noted that a total amount of GH¢908,644.05 paid to

various companies were not covered with official receipts to

authenticate payments. Management should ensure that original

receipts from the payees are attached to the payment vouchers for

our verification.

UNIVERSITY OF CAPE COAST

106. Contrary to Regulation 15 (1) of the Financial Administration

Regulations, 2004 (L.I. 1802) Mr. Kwame Fenyi a Senior

Administrative Assistant of the University’s Accra Office and Mr.

Francis Arthur of UCC Enterprises did not account for total revenue

of GH¢55,557.60 collected between June 2017 and April 2018. We

recommended that the total amount of GH¢55,557.60 should be

recovered from Mr Kwame Fenyi and Mr. Francis Arthur and paid to

the University’s account for our verification.

107. Our audit disclosed that the University paid an amount of

GH¢113,116.56 to Top Express Freight Handling Ltd to clear 3600

MIFIs and 8000 U Sim Chip from KLM Airlines for Bolte

Communication Limited a private company. We however noted that

after the clearance, Bolte Communication Limited took delivery of

the goods from the University Stores on 20/8/18 preventing the

University access to the MIFIs and the U Sim Chips for use. We

recommended that the total amount of GH¢113,116.56 should be

recovered from Bolte Communication Limited with interest, failing

which the total amount of GH¢113,116.56 should be recovered from

the Vice Chancellor, Professor Ghartey Ampiah with interest.



108. Contrary to Regulation 39(2)(c) & (d) of the Financial

Administration Regulations 2004 (L.I. 1802) our vouching disclosed

that the University made a part payment of GH¢451,530.00 to

KLEOS Technology for information and communication services

without justification. We recommended that KLEOS Technology, the

Council and the University Director of ICT services Dr. Regina

Gyampoh-Vidogah should provide evidence that 20,000 students

and officers of the University did use the KLEOS services, the basis

of the invoice and payment of GH¢451,530.00 to KLEOS Technology,

failing which all payments to KLEOS Technology should stop and

the amount of GH¢451,530.00 ($100,000.00) recovered from KLEOS

Technology, the Council, and the Director of ICT services Dr. Regina

Gyampoh-Vidogah.

109. We noted during our audit that, the University granted loans

amounting to GH¢9,234,190.00 to Student Representative Council

(SRC) and UCC Alumni but recovered only GH¢679,119.84 leaving

a difference of GH¢8,555,070.47 unrecovered as at 31/12/18. We

recommended that Management should recover the outstanding

loans of GH¢8,555,070.47 from SRC and UCC Alumni or take over

the facilities based on which the loan was contracted. Again, the

Council in future should conduct financial feasibility studies before

providing guarantee to loan facilities.

110. Our audit disclosed that GOIL Ghana Ltd deducted an amount

of GH¢15,570.00 from fuel revenue due UCC Enterprise without

justification. Out of total revenue of GH¢676,000.00 due UCC

Enterprise as commission on sale of fuel, GOIL Ghana Ltd deducted

an amount of GH¢15,570.00 for generator, electrical works and

others without agreement or approval from UCC Enterprise and paid

only GH¢659,380.00 to the University. We recommended to

Management to obtain justification from GOIL Ghana Ltd for the



deductions, failure of which the University should demand from

GOIL Ghana Ltd an amount of GH¢15,570.00 to the University.

111. Contrary to Regulation 2(d) of the Financial Administration

Regulations, 2004 (L.I. 1802) we noted that forty-four (44) affiliated

institutions owed the University an amount of US$1,401,185.64 in

respect of unpaid affiliation fees as at the 31 December 2018. We

recommended to Management to recover the US$1,401,185.64 from

the affected Institutions, including legal actions where necessary.

112. Ten (10) corporate institutions occupying the University’s

Lands and Office Spaces owed the University unpaid rent amounting

to GH¢305,927.16 and US$35,903.34 as at 31 December 2018. We

recommended to Management to recover the outstanding rent of

GH¢305,927.16 and US$35,903.34 from the tenants without

further delay.

113. Contrary to Regulation 227 of Financial Administration

Regulations, 2004 (L.I.1802) the University paid a total amount of

GH¢9,449.50 for replacement of stolen items from the School of

Business Guest House without any form of investigation by the

security agencies. There was no Police or Investigation report to

ascertain the cause and who should be held liable. We recommended

that the Guest House Manager who has responsibility for the

security of guests and assets at the facility should be made to pay

for the cost of the stolen items. Furthermore, Management should

put in place adequate security measures including CCTV cameras

at vantage points within the periphery of the guest house. However,

the matter should be taken up with the police.

A creditor’s balance of GH¢187,500.00 shown in the University’s

financial statements payable to Jay K Industries and Investment

Limited as at 31 December 2018 had no supporting documents such



as invoices, store received vouchers and others to authenticate that

Jay K Industries and Investment Limited had made any supplies to

the University. We recommended to the University Printing Press

accounts officer to provide documentary evidence to authenticate

the payable amount of GH¢187,500.00, failing which the entries

should be reversed.

114. Contrary to Financial and Stores Regulations, we noted

descrepancies between book balances and physical stock balances

at the University Printing Press during stock count. The value of the

shortage noted was GH¢15,443.44. We recommended that the

storekeeper should produce evidence of usage or physically produce

the items for verification, failing, the total amount of GH¢15,443.44

should be recovered from the storekeeper.

115. Contrary to Section 5 (c) of the Retention of Funds Act, 2007,

(Act 735) we noted that Management paid an amount of

GH¢4,223,294.40 from Internally Generated Funds (IGF) to one

hundred and two (102) retired staff as end of service benefit for the

year 2018. We recommended that Management should stop using

Internally Generated Funds to pay end of service benefits to avoid

future sanctions.

116. Contrary to Section 16.1 of the Conditions of Service for Senior

Members of Public Universities of Ghana, 2011, we noted that the

University granted study leave with pay amounting to

GH¢1,868,638.72 to eight (8) staff members but the officers did not

return to serve the University as required. We recommended that

Management should pursue the affected officers and their

guarantors to refund the total amount of GH¢1,868,638.72 to the

University.

117. Three (3) officers who were granted sabbatical leave, drew

salary of GH¢128,826.29 from the University of Cape Coast and took



same from the sister Universities and Government departments

leading to central government paying double salary to the affected

officers. We recommended that the officers involved should refund

the double salary of GH¢128,826.29 paid to them. We also

recommended that the University should endeavour to communicate

with other sister institutions where its officers undertake their

sabbatical leave to prevent double payment of salaries by central

government.

118. Our audit disclosed that the University engaged in single

source procurements activities amounting to GH¢435,796.63. This

was however without approval from Public Procurement Authority.

We urged Management to ensure compliance with the provisions of

the Public Procurement Act, Act 914.

119. We noted that the University paid KLEOS UK Ltd an amount

of GH¢451,530.00 without recourse to the Public Procurement Act.

The Vice Chancellor Professor Ghartey Ampiah entered into an

international contract on behalf of the University with KLEOS UK

Ltd a company incorporated in United Kingdom for the provision of

Information and Communication Technology (ICT) services to the

University. We recommended that the Vice Chancellor should

forward the Build, Own, Operate and Transfer (BOOT) Agreement

entered into with KLEOS UK Ltd to the University Council, Minister

of Education and Minster of Finance for ratification, failing which

the agreement should be suspended and all cost incurred recovered

from the Vice Chancellor. Again, the University should seek

concurrent approval of same from the Public Procurement Authority.

120. We noted that the Vice Chancellor, Professor Ghartey Ampiah

entered into a 10 year Build, Own, Operate and Transfer Agreement

with KLEOS UK Ltd for the provision of information and



communication technology (ICT) services at a cost of $300,000.00

per year totalling $3,000,000.00 for the contract period without

seeking approval from the University Council, the Minister of

Education and Public Procurement before committing the University

to such financial obligation. The contract signed by the Vice

Chancellor was only witnessed by the Director of ICT services Dr.

Regina Gyampoh-Vidogah. We recommended that the Vice

Chancellor should submit the Build, Own, Operate and Transfer

Agreement (BOOT) with KLEOS UK Ltd to the University Council,

Minister of Education and Public Procurement Authority for

approval, failing which the sanctions in section 92 (1) of the Public

Procurement Act shall be applied.

121. Contrary to Section 35 (1) of the Public Procurement Act, 2003

(Act 663) we noted that the College of Distance Education and

Central Administration procured Information Technology Service

from Vertebra Limited amounting to GH¢397,602.00 without

recourse to the Public Procurement Act. We recommended that the

Vice Chancellor and the Provost of College of Distance Education

should be sanctioned per section 92 (1) of the Public Procurement

Act, 2003 (Act 663) as amended.

122. Our audit disclosed that College of Distance Education

granted advances amounting to GH¢21,298,853.44 without any

agreement whatsoever to four (4) contractors for the execution of

various projects but recovered only GH¢6,345,578.70 leaving a

difference of GH¢14,953,274.74 unrecovered as at 31/12/18. The

advances were granted since 2013 and 2016 financial years from

Internally Generated Fund of the University. We recommended that

Management should recover the total outstanding advance of

GH¢14,953,274.74 from the affected contractors with interest using

Bank of Ghana interest rate, failing which the total amount of



GH¢14,953,274.74 should be recovered from the officers who

authorised the payment.

123. Our review of contract management disclosed that the College

of Distance Education paid an amount of GH¢394,500.00 to Wilkado

Construction Works Ltd for the supply of Nissan Patrol Vehicle for

the Construction of Regional Study Center- WA project since

15/01/2014 but the vehicle was not supplied as at 31/12/18. We

recommended that the contractor should supply the vehicle to the

University, failing which the total amount of GH¢394,500.00 should

be recovered from the contractor with interest using Bank of Ghana

prevailing interest rate.

124. Contrary to Section 35 (1) of the Public Procurement Act, 2003

(Act 663) we noted that the College of Distance Education paid a

total amount of GH¢18,225,418.54 to two (2) contractors for various

construction works without recourse to the Public Procurement Act.

We recommended that the Vice Chancellor, Director of Development

and the Head of Procurement should produce the procurement

documents if any to the audit team, failing which the Vice

Chancellor, Director of Development and the Head of Procurement

should be sanctioned per Section 92 (1) of the Public Procurement

Act, 2003 (Act 663) as amended.

125. Our project inspection disclosed that the College of Distance

Education paid a total amount of GH¢8,187,762.77 to three (3)

contractors for additional works but no works according to our

review was carried out on the said projects. We recommended that

the contractors and Director of Development should produce

documentary and physical evidence of additional works done on the

projects involved to justify the payment of the amount, failing which

the total amount of GH¢8,187,762.77 should be recovered from the



affected contractors and the Director of Development sanctioned for

certifying the interim payment certificates and assisting the

contractors to claim such amount from the University for no work

done.

126. Contrary to Section 66 of the Public Procurement Act, 2003

(Act 663) as amended, our audit disclosed that the College of

Distance Education paid a total amount of GH¢1,587,369.10 to

Phase 2-Consultancy for consultancy services on various

construction works without recourse to the Public Procurement

Authority Acts. We recommended that the Director of Development

and Head of Procurement should explain the basis for contracting

the consultancy services without recourse to provisions of the Public

Procurement Law, failing which the Director of Development, Head

of Procurement should be sanctioned per Section 96(1) (a) of Public

Financial Management Act, 2016 (Act 921).

127. Contrary to Regulation 16(1)(a) of the Financial

Administration Regulations, 2004, our contract review disclosed

that the College of Distance Education paid a total amount of

GH¢1,370,000.00 to two (2) contractors for supply of materials in

transit but the items were never supplied. The items were paid

through various certificates issued without indications to the items,

quantity, unit cost and others. The audit team did not sight any

documentary or physical evidence that such materials had been

supplied to the projects even though payments were made to the

contractors during 2012 and 2014 financial years. We

recommended that Management should provide list of items,

quantity, unit cost and evidence of supply to the projects to justify

the payments, failing which the contractors and the officers who

authorised the payments should refund the total amount of



GH¢1,370,000.00 at the prevailing Bank of Ghana interest rate to

the University.

128. Physical inspection of the University projects disclosed that

the College of Distance Education paid a total amount of

GH¢1,453,763.72 to three (3) contractors for the supply and

installation of lifts, skylight lean roof trusses and other items but

the items were not supplied and installed. We recommended that the

affected contractors should supply the items to the assigned projects

for our inspection, failing which the total amount of

GH¢1,453,763.72 should be recovered from them using the

prevailing Bank of Ghana interest rate.

129. Our audit disclosed that the University paid an amount of

GH¢151,340.00 to three landowners as purchase price of lands

acquired but the said lands were not in existence during physical

verification. There were no documentations such as lease, indenture

or agreement between landowners and the University available for

audit. We recommended that management should engage the

competent authorities to make new allocations for the Ho lands

annexed by government for an airport project. We also urged

Management to provide documentary and physical existence of the

Sunyani and Agona Nkwanta lands for verification, failing which the

amount of GH¢114,240 paid for those lands should be recovered

from the Vice Chancellor, Director of Finance and Head of Estate.

130. Contrary to Article 286 (1) of the 1992 Constitution we

observed during our audit that 437 staff of the University did not

declare their Assets and Liabilities to the Auditor-General. We

recommended that all affected officers should declare their assets

and liabilities to the Auditor-General.



131. Contrary to Regulations 12(1) of the Tertiary Institutions

Establishment and Accreditation Regulations, 2010 (L.I 1984) our

review of the University accreditation documents disclosed that

thirty-seven (37) programmes of the University expired between

2013 and 2018. We recommended to Management to ensure that all

expired programmes are re-accredited, failure of which Management

should be sanctioned per Section 8(3) 24 (b)(c) of the National

Accreditation Board Act 2007 (Act 744).

132. We noted that the University did not obtain legal title for forty-

nine (49) vehicles owned by the University. As a result, ownership of

the vehicles is still vested in the dealers or suppliers. We advised

Management to take necessary steps to obtain legal title for the 49

vehicles.

133. We noted that the University did not provide Nissan Hardbody

Pickup with registration number: GT 8473-10 and Chassis number:

ADNCJUD22Z0000585 for verification. We further noted that the

road worthy and insurance for the vehicle had not been paid for the

year 2018 as there were no records on file. We urged Management

to produce the vehicle or report on the where about of vehicle with

related documents for audit verification, failure of which the

replaceable value of the vehicle should be paid by the officers in

charge of vehicle.

ENCYCLOPEADIA AFRICANA PROJECT

134. The Secretariat did not publish any encyclopaedia for the

years under review. The last publication was in 1995 which was 24

years ago. We recommended that Management should engage the

sector minister on the need to submit a draft bill to parliament.



GHANA INSTITUTE OF JOURNALISM 135. Management contracted four companies to supply vehicles,

audio visual equipment, library books and the construction of

lecture hall complex at a sum of GH¢1,715,282.97 in 2016 and

GH¢1,079,704.33. The source of funding was from GETFund. The

contractual sums were however not honoured by GETfund when

they became due. We urged Management to ensure that

retrospective approval is sought from the Minister and effort made

for GETFund to release funds to pay the total sum of

GH¢2,794,987.30 owed the Institute.

136. We noted that Dr. Samuel Koffi and Mr Kwayie Dwumah

Kuffour became separated by way of resignation from and vacation

of post in February and September 2016 but drew unearned salary

of GH¢35,656.40. An amount of GH¢18,233.04 was however

recovered from the two separated staff members and paid into the

GIJ’s bank account. We recommended that Management should

transfer the GH¢18,233.04 into Government chest and obtain a

treasury receipt to support the payment and pursue Dr. Samuel

Koffi to refund the balance of GH¢17,423.36 and pay same to

government chest and our office notified.

GHANA SCIENCE ASSOCIATION 2017 – 2018

137. We noted during the review of the vehicle file that, the

insurance cover for vehicle number GV 742-18 of the Association

expired on 22nd January 2017 and has not been renewed as at the

time of the audit. The vehicle was later involved in an accident on 28

January 2017. There was no evidence of Police report on file even

though Management said the accident was reported to the Police by

the driver of the vehicle. We recommended that Management should

obtain a police report the accident.



138. Our review of records noted that a total amount of

GH¢4,700.00 given to two GSA Regional Branches to undertake

various activities during the years under review were not accounted

for. We recommended to Management to ensure that, the payees

produce receipts and the necessary documents to account for the

imprest given to them or the amounts adjusted to their personal

advance accounts.

UNIVERSITY FOR DEVELOPMENT STUDIES

139. Despite the explicit provisions in Regulation 297 (1) of the

Financial Administration Regulations 2004, 7 members of staff were

paid unearned salaries and allowances totalling GH¢107,725.83.

We recommended to Management to be swift in instructing the

Registrar’s Office/ Human Resource Department to notify the

Payroll Department whenever there is notice of death, retirement,

secondment and resignation of a staff for immediate action. We

further advised that monies paid to these staff should be

recovered immediately.

GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION

140. Contrary to Regulation 2(g) of the Financial Administration

Regulations 2004, The University did not prepare Bank

reconciliation statements for 5 of its Bank accounts. It also did not

regularly prepare bank reconciliation statements for 4 other bank

accounts. We recommended that Management should ensure all

bank accounts balances are reconciled on a monthly basis. The list

of banks should be regularly updated to keep track of all the

Institute’s bank accounts.

141. Management could not make available for our review, the

conditions of service for the appointed and confirmed Rector and the

Secretary of the Institute, Prof Philip Ebow Bondzi-Simpson and Mr



Julius Atikpui respectively. Also, Professor Philip Bondzi-Simpson,

was paid rent allowance of GH¢57,290.70 in lieu of accommodation.

We recommended that the Council should take steps to ensure that

conditions of service for all categories of staff are finalised before

appointments are made. Also, a reconciliation should be carried out

between amount paid them and agreed upon entitlements so that

the differences can be settled.

142. Mr. Dominic Npoanlari Dagbanja, a member of staff, who had

been sponsored by the Institute to study Law at Australia, completed

his course of study in 2016, but has not reported to the Institute as

at August 2018. A total amount of GH¢327,800.24 was expended on

him by the Institute. The GH¢327,800.24 spent on Mr. Dominic

Npoanlari Dagbanja should be recovered from him or his guarantors

in the event that the Institute cannot recover it from him; also,

members of staff who have completed their courses of study must

report to the Institute to serve their bond period or pay the amount

expended on them with interest.

143. Management did not follow Public Procurement Law

prescriptions to award a contract to Tallman House Limited and

Bricksfields Limited for the construction of Lecture Hall at Accra

Central Campus of the Institute at the cost of GH¢668,325.87. The

project was suspended on 17 May 2016 after the contract was

awarded on June 1st 2015. Cost incurred on the project up to the

date of suspension wasGH¢1,263,686.16. We recommended that

Management should implement the recommendation made by the

Committee set up to investigate the award and execution of the

contract.

144. The Institute paid an amount of GH¢201,649.10 to two (2)

different contractors for renovating its satellite campus in Kumasi.

There were no alternative quotations before the award of the

contract. We could not also obtain the total cost of the job, type of



work done and certificates of works. We recommended that

Management should make available all records relating to the

renovation works done by the two contractors, Jeal Engineering

Services and Hak Systems Limited, including all other alternative

quotations, evaluation reports, awards letters and certificates of

works done and paid, for our review.

145. Contrary to Regulation 2(c) of the FAR, 2004, Management

could not provide relevant documentation to support the overpaid

amount of GH¢30,407.97 to Sam Okudzeto and Associates. This

resulted from the differences between total invoices amounts,

including VAT of GH¢248,953.03 compared with the payment made

by the Institute of GH¢279,361.00. We recommended to

Management to recover the excess payment of GH¢30,407.97 from

Sam Okudzeto.

146. The Institute could not provide the audit team, Council

approvals and evaluation done for the total investments of

GH¢5,645,438.09 made in 2017. We were also unable to confirm

the amount on the Apex Capital Investments of GH¢1,649,620.96

since the certificate was not made available for our review.

Management should seek Council approval by way of ratification if

no approval was sought for before the deposits were purchased.

Certificate and statements on the Apex Capital Investments should

be obtained.

STUDENTS LOAN TRUST FUND

147. Funds totalling GH¢2,303,789 has been locked up with Gold

Coast Fund Management as a result of Management’s failure to

adhere to the Fund’s Investment Policy. We advised Management to

strictly adhere to the Fund’s Investment Policy and ensure the

recovery of the locked-up funds.



148. Two notices of demand published by Management in the Daily

Graphic on 31 May 2018 and 1 October 2018 failed to state the

amount owed and did not also make demand for the amount to be

paid within a month after publication as spelt out in the Students

Loan Trust Fund Act, 2011, Act 820. This could lead to Defaulters

not being held liable as the Act provides in Section 37(3). We advised

Management of the Fund to strictly adhere to the provisions of the

Act in the recovery of loans owed by borrowers. They can also explore

amending the Act to reflect current trends in the print and electronic

media by including online publications as well.

149. Contrary to Section 36 of the Students Loan Trust Fund Act,

2011, Act 820, the Fund continued to pay Value Added Tax (VAT) on

the goods and services procured. Management’s efforts at recovering

moneys paid through their writing to the Commissioner; Domestic

Tax Revenue Division and the Minister for Finance, were yet to

produce any positive results. We advised Management to continue

to work with the Ministry of Finance and the Ghana Revenue

Authority to ensure the implementation of the Act.

GHANA EDUCATION TRUST FUND (GETFUND)

150. GETFUND is faced with 19 legal cases with an estimated cost

of GH¢3,979,284.82 resulting from the irregular payment to

contractors for certificates issued. We advised Management to

expedite actions and secure funding to settle these outstanding

debts.

151. Management had not been able to redeem an investment of

GH¢10,000,000 with the SIC-FSL which matured on 22nd November,

2018. We urged Management to agree a payment plan with the SIC-

FSL to safeguard the Fund from potential loss.



UNIVERSITY OF EDUCATION, WINNEBA

152. Contrary to Regulation 39 (1) of the Financial Adminisration

Regulations 2004, the University could not redeem its investment

totalling GH¢1,879,960.75 with Akyempim Rural Bank. The

investment was niether rolled over nor repaid on maturity. Persistent

request for refunds by the University has not been heeded to by the

bank. We recommended that; every effort should be made to retrieve

all monies invested in Akyepim Rural Bank together with the

accumulated interest. Management should also ensure that a

comprehensive investment policy is drawn for approval by the

Council as soon as possible.

UNIVERSITY OF HEALTH AND ALLIED SCIENCES

153. Our audit disclosed a payment of unearned salaries

amounting to GH¢14,336.52 to two members of staff who had

vacated their positions. We advised Management to take immediate

action to retrieve the funds from these persons.

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND

TECHNOLOGY- KUMASI

Main Administration 154. We noted that the University did not register all its 20

properties to ensure full ownership. Only seven of them were

registered and deed of assignment of two plotted with plotting of 3

ongoing. We recommended to the Legal and Estate Departments,

and Welfare Division to fasttrack the process of registering the

remaining properties of the University.

155. We requested for agreements signed between the University

and the private hostel developers and other business entities that



have been offered spaces on the University’s lands for commercial

activities. This was to enable us determine rent receivable needed to

be paid by the Tenants. However, only one (Royal Basin/Banivallas)

out of seven expected agreements for hostel developers and three out

of four oil companies were made available. We recommended to

Management to sign formal agreements with all private hostel

developers and other business entities that have been offered spaces

on the University’s lands within six months after receipt of our

management letter; expedite action on the renewal of the expired

agreements and also ensure that any rent receivables have been

recovered.

156. We noted that the University signed agreement with Peak

Investment Capital (PIC) on 1 July, 2015 to produce fresh yoghurt.

However, Management of the venture did not comply with Article

12.2 of the agreement which requires the parties to deliver quarterly

financial statements not later than the 15th working day after the

end of each quarter. This was as a result of KNUST Management’s

inability to value its assets provided to the Company. We could not

determine the dividend due to each party and therefore

recommended to Management to invoke the sanctions prescribed in

the contract agreement.

157. Our review of Rent receivables at the main finance office

disclosed that Ghana Post was indebted to the University to the tune

of GH¢98,688.00 since 2017 because, Ghana Post is contesting for

waiver of portions of the amount. A review of accounts receivable of

the Engineering Guest House also, showed that 66 Colleges,

faculties, Departments and individuals owed the Guest House an

amount of GH¢ 320,166.32 as at December, 2018. We urged

Management of the University to decide on the request by Ghana

Post as early as possible and ensure that all rent receivables are

timely collected to improve the cash flow of the University.



Management of the Engineering Guest House should also ensure

timely recovery of the debt. Additionally, there should be a debt

policy that would ensure effective management of the Guest house

and efficient collection of non-tax revenue.

Payroll

158. We noted that nine officers left the University for various

reasons. However, they continued to earn salaries for a period

ranging from one to five months before their names were deleted

from the payroll. This led to payment of unearned salary to the tune

of GH¢ 106,167.58. We recommended to Management to recover the

unearned salary of GH¢106,167.58 from the former employees and

pay same to the consolidated fund or the authorising and approving

officers be made to refund the amount.

159. We noted that three officers were granted study leave with pay

for further studies. The awardees however, resigned after the

programme or abandoned the course during the period contrary to

the agreement signed with the University. We recommended to

Management to pursue Assan Seth Kojo Mbra, Agyeman Philip and

Amankwa Emmanuel and their guarantors to refund the sum of

GH¢382,796.65 expended on them on their sponsorship and pay

same to the consolidated fund within six months of receipt of our

management letter.

160. We noted from our payroll audit that, three Senior officers who

resigned during the period under review did not give three months

prior notice to the Vice-Chancellor before their departure. They did

not also pay three months’ salary in lieu of notice as required by

their appointment letters. We recommended to Management to

retrieve the total amount of GH¢23,393.53 from the former



employees, or from their entitlements within six months from receipt

of our management letter.

161. Our examination of the records of the separated staff disclosed

that, two officers were granted two years and one-year sabbatical

leave respectively. We further noted that the Officers made their

intentions of taking up appointment as Vice Rector of the College of

Physicians and Surgeons, and Ministerial appointment respectively,

known to Management. Notwithstanding, the above, Management

went ahead to grant them the Sabbatical leave with pay instead of

leave of absence without pay. This decision of Management lead to

double payment of salary by the government to the two officers. We

recommended to Management to ensure that the officers refund the

salary paid by the University during the sabbatical leave period into

the consolidated fund, or the authorising and the paying officers be

made to refund the amount of GH¢117,946.28.

Development Office

162. Our physical inspection of projects undertaken by the

University noted that, electrical, plumbing, fixtures and fittings and

other related installations in five of the projects were not up to what

was billed by the contractors and paid for by the University. Total

value of the uninstalled items was GH¢1,722,911.27. We

recommended to Management to recover the GH¢1,722,911.27 from

the contractors and inform us for verification within six months from

receipt of our management letter. Failure of which the amount

should be recovered from the Directors of Works and Physical

Development and the supervisors of the five projects.

163. We noted that 24 contractors engaged on 46 works contracts

across the University charged VAT amounting to GH¢1,733,659.22.



Our audit disclosed that only GH¢953,836.65 had been paid, leaving

a difference of GH¢779,822.57 yet to be accounted for.

We recommended to Management to demand from the contractors

evidence of payment of the VAT in the sum of GH¢779,822.57 to the

GRA or recover same from the contractors within one month after

the receipt of our management letter.

164. Our review of contract documents of the University indicated

that, the construction of a Proposed 5– Storey Offices and Classroom

Block and Educational Resort Facilities at Takoradi City

Campuses/Moree for the Institute of Distance Learning, KNUST had

unduly delayed, resulting in the payments of fluctuations totalling

GH¢9,031,644.02 as at 14 March 2019. The delay was mostly due

to the inclusion of three separate unrelated projects or contracts

(Labouratory Building (Moree), Clinic, and Nurses Bungalow

(Moree)) to the existing one, and the Development office’s inability to

establish the expected period of completion after the variation. We

recommended to the Director of Works and Physical Development to

establish timelines for the contractor to finish and hand over the

project to the University, failing which the contract should be

terminated and re-awarded to another contractor for completion. We

further recommended that, officers (the Development Officer and the

quantity surveyor) whose action/inaction led to the payment of these

fluctuations should be sanctioned.

165. Our review of contract documents for the construction of the

Institute of Distance Learning (IDL), Tamale City Campus disclosed

that, the project had unduly delayed without management activating

the Liquidation Damages clauses as provided in the contract

agreement. We recommended to Management to recover the

liquidation damages of GH¢822,164.21 and any subsequent delayed

period liquidation damages from Messrs Myturn Company Ltd

within six months from the receipt of our management letter and



inform the audit team for verification, failing which the Director of

Works and Physical Development and the project’s supervising

officers shall be held liable for the liquidation damages; we also

advised the Director of Works and Physical Development to ensure

that provisions in contracts agreements are rigorously enforced, to

forestall the recurrence of this lapse.

166. We noted that the development office certified the payment of

unjustified fluctuations amounting to GH¢200,025.88 to Messrs

Myturn Company Ltd for the completion of the proposed 4-storey

offices and classrooms block for KNUST/Tamale City Campus

project. This was after the expiration of the approved extension

period of 13 May 2018. We recommended to the Director of Works

and Physical Development to recover the GH¢200,025.88 from

Messrs Myturn Company and cease further payment of fluctuations

to him.

167. We noted from our review of contact documents of the

Takoradi City Campus project that the contractor paid

GH¢188,033.80 as compensations to chiefs, farmers and

inhabitants of Kasaworado and Moree, and cost of surveying works

on the project on behalf of the University. However, the University

refunded a total compensation amount of GH¢266,650.00 to the

contractor, depicting an unexplained difference of GH¢78,616.20. In

the absence of any admissible information to substantiate the claim,

we disallowed the GH¢78,616.20, and urged Management to recover

same from the contractor, Messrs Antartic Contract Works Ltd 30

days upon the receipt of this Management letter and notify the audit

team.

168. We noted during our visit to the Takoradi City Campus of the

Institute of Distance Learning, KNUST that the roof of the building

leaks badly. We urged the Director of Works and Physical



Development to direct the contractor to re-roof the entire building at

his own cost or remedy the leakages in a manner that will not allow

water to collect at the base of the roof. In addition, we recommended

a total replacement of the waterproofing system.

169. We noted from the examination of contract documents that

the University engaged the services of two consultants on its

constructional works without recourse to the procurement laws. We

recommended to Management to regularise the engagements of

these consultants by seeking for retrospective single source approval

from PPA. We further advised Management to ensure that

consultants are always engaged using the appropriate procurement

processes to avert the recurrence of this anomaly.

170. We noted from our review of contract documents that,

Emmerce Engineering Services Ltd unfairly won the contract for

Electrical Installation of the 5 – Storey Social Sciences Building

Complex to the disadvantage of other bidders. We observed that the

contractor had already been engaged by Messrs Berock Ventures

(the project contractor) to start fixing all the electrical installation

works on the project. Emmerce Engineering Services Ltd was

officially awarded the contract even though documents presented by

the supplier did not meet the qualification requirements of the

contract. We recommended to Management to make future

procurement processes fair, transparent and non- discriminatory to

all tenderers to obtain value for money for their projects and

sanction the procurement officer, the director of works and

development as well as persons involved in the tender evaluation

leading to the award of this contract as prescribed by section 92 of

the Public Procurement Act, Act 663 as amended.



Procurement Office

171. We noted that the procurement plan prepared by the

Procurement Unit did not put contracts into packages or lots in

order to assign cost to each package. Rather the intended items to

be procured were bulked according to the classification of the items.

For example, plan to procure fleet of vehicles (different types) were

bulked with the lump sum quoted in the plan. In effect, identifying

the estimated price for each type of vehicle was quite challenging.

We recommended that procurement plan should be classified

according to contract packages to facilitate the use of appropriate

procurement method and monitoring of the University’s

procurement contracts.

172. Our review of procurement contracts disclosed that, supply of

CCTV cameras for the Library and student’s beds for clinical hostel

by M/s Engineering Systems and Services (ESS), and Ashanti Foam

Ltd respectively, deviated from the specifications ordered, resulting

in over-invoicing of GH¢43,533.24 in terms of the CCTV cameras

supplied. We recommended to Management to recover the difference

of GH¢43,533.24 from M/s Engineering Systems and Services (ESS)

Ltd and pay to the University’s account for verification failure of

which the authorising and approving officer should be made to

refund the amount to the university.

173. The Entity Tender Committee (ETC) sidestepped the

recommendations made by Entity Evaluation Tender Panel (EETP)

and awarded a contract for the supply of Academic Skill Text Books

to Giffred Ventures on 17th May, 2018 without any justification.

Meanwhile, the supplier could not supply all the text books procured

within the delivery period. We recommended that the ETC of the

University should ensure that the procurement law is followed in

awarding contracts. ETC should also document tangible reason(s)

before recommendation from the EETP is sidestep.



174. We again, advised the Director for procurement to ensure that

the supplier supplies the remaining 178 books, failure of which

would result in disallowance of any extra cost that would be incurred

against the Director for procurement, should the contract be re-

awarded. We further recommended to the Management to blacklist

Giffred Ventures and report the issue of falsification of Social

Security Clearance certificates to Public Procurement Authority for

investigation, and appropriate sanctions taken against the two

companies. Meanwhile, sanctions as specifed in Section 92 of the

Public Procurement Act 2003 (Act 663) as amended by Section 51 of

the Public Procurement (Amendment) Act, 2016 (Act 914) should be

enforced against Entity Tender Committee members for breaching

the procurement processes.

175. We noted that the Procurement Officer and the Transport

Engineer met M/s Kwaku Ampaw Agyemang, CEO of Klataa

Engineering Solutions Company Ltd and negotiated a tender

submitted by the company for the supply of 1 No Skip truck – DAF

CF-75 and 1 No Aerial Platform Truck at a total cost of

GH¢1,982,385.58 without initial approval from Central Tender

Review Committee (CTRC) and without any market survey on the

vehicle to enhance the negotiation. We recommended to

Management to ensure that Section 64 of the PPA, 2003 (Act 663) as

amended by Section 31 of the Public Procurement (Amendment) Act,

2016 (Act 914) should be properly followed. Management should

also seek for permission from the appropriate review committee

before entering into any negotiation when the need arises.

General Issues

176. Four Faculties under College of Agriculture and Natural

Resources (CANR) made payments to the tune of GH¢348,646.20

without obtaining the related receipts, invoices, signed sheets, claim



forms etc. to account for the amount paid. We advised the College

and the affected Faculties’ Accountants to ensure that the payees

provide the required payment documentations to account for the

amount paid, failing which the amount of GH¢348,646.20 including

interest at BOG prevailing rate shall be recovered from the Provost,

the College Accountant and the Accountants of the affected faculties.

We further recommended the strengthening of internal controls in

the Faculties, to ensure proper accountability of all future

transactions.

177. The University’s Hospital and Institute of Distance Learning

(IDL) procured goods and services to the tune of GH¢213,262.37

without obtaining a minimum of three alternative quotations to

ensure compliance with the Public Procurement Authority Act. We

recommended to Management to ensure full compliance with the

Procurement Act in its procurement activities.

178. Seven departments and Colleges of the University procured

goods and services amounting to GH¢1,488,550.31 from suppliers

not on the Public Procurement Authority’s (PPA) database as well as

the University’s registered list of suppliers. We further noted that

alternative quotations supporting most of the procurements of six

departments and Colleges were sourced from suppliers not

registered with the PPA and the University. We recommended to

Management to ensure that, in future, goods and services are

procured from only PPA and the University’s registered suppliers.

Management should also ensure that, alternative quotations for

procurements are obtained from only PPA and the University’s

registered suppliers to avoid sanctions. Meanwhile, sanctions as

specified by Section 51 of the Public Procurement (Amendment) Act,

2016 (Act 914) should be enforced against the Procurement officers



of the Departments and Colleges, the authorising and the paying

officers.

179. Our enquiry at GRA to confirm the validity and genuineness

of the Tax Identification Numbers (TINs) quoted on the VAT invoices

of goods and services procured by the departments and Colleges

disclosed various flaws resulting in unaccounted VAT amount of

GH¢251,799.41. We recommended that the Provosts, Departments;

Accountants of the various colleges and the Management of the

University should blacklist these suppliers and notify the PPA as well

as the Ghana Revenue Authority accordingly for appropriate

sanctions to be applied in accordance with section 58 of the VAT Act,

2013 (Act 870).

180. A contract register, which should contain very important

information to track payments and progress of construction works,

was not kept by the Development office, Departments and the

Colleges, even though total amount of GH¢24,207,410.01 was paid

to the Contractors handling the various projects during the period

under review. We recommended to management to retrieve the

GH¢566,951.47 paid the Project Contractor (Messrs MyTurn Ltd)

within three months from receipt of this report. In order to avoid

double payments and other construction irregularities we

recommended to the Head of the Development office and the

Accountants for the Departments and Colleges to keep contract

registers for all projects under their watch.

181. We also advised Management to sanction any responsible

officer who fails to maintain the register in accordance with Section

92 of the Public Procurement Act 2003 (Act 663) as amended by

Section 51 of the Public Procurement (Amendment) Act, 2016 (Act

914).



182. Our review of records disclosed that the College of

Engineering, College of Science, College of Arts and Built

Environment and College of Humanities and Social Sciences did not

maintain a complete and up-to-date asset registers to keep track of

all assets procured during the period under review amounting to

GH¢4,520,710.32. e urged the Colleges’ Finance Officers to liaise

with the heads of departments and Faculties to update the assets

registers immediately and inform us for verification. We further

recommended to Management of the Colleges to institute measures

that will enhance quick recording of assets acquired and the related

information in the assets registers.

183. Contrary to Section 52 of the Public Financial Management

Act, (PFMA) 2016 (Act 921) and the University guidelines, library

records of five Colleges indicated that, 197 books lent to lecturers

and students from 2007 to 2018 were yet to be returned to the

respective libraries as at April 2019. We urged the beneficiaries

(lecturers and students) to return the books, failing which,

Management should recover a total amount of GH¢157,164.92

being, twice the market price of the books from them, as contained

in the library guide of the University. Management should also

ensure that defaulters for the non-valued books or the Librarians

pay twice the values of similar books. We also recommended to

management to sanction the librarians for not living up to their

responsibilities of enforcing the library rules; ensure regular

inventory stock taking and ensure that sanctions provided in the

Library guide are applied to any default borrower.

184. Our stock count of the library books of College of Humanities

and Social Sciences and College of Science disclosed that 31books

out of the stock could not be found. We advised the two librarians of

the Colleges to locate the 26 books for audit inspection or be held

liable for the amount of GH¢25,435.30 being twice the cost, and the



5 other books whose market price we were unable to determine. We

also recommended to Management to equip the library with security

systems such as CCTV cameras, electronic alarm systems etc. at the

entrance and exit of the library to detect unauthorised removal of

library materials.

185. Our review of cash management of the College of Engineering

disclosed that, the College operates 16 Bank accounts, (apart from

the five services accounts) without any justification. In order to

improve efficiency in cash management systems, we advised

Management of the College to close the dormant accounts, and adopt

centralised banking systems, where few bank accounts would be in

operation. This will improve efficiency in cash management.

Transport

186. We noted from the Transport Unit that nine vehicles procured

by the University in 2018 financial year and fully paid for were in

the names of the suppliers as at August, 2019. We further reviewed

files of 15 vehicles owned by College of Arts and Built Environment,

(CABE) submitted by the University Engineer, and observed that the

University (College) has no right of ownership documents to nine (9)

of them. We advised the Transport Engineer to take urgent steps to

ensure that the ownership of all the vehicles are transferred to

KNUST and copies of the ownership documents filed.

Colleges and Departments Peculiar Issues

Institute of Distance Learning (IDL)

187. An amount of GH¢188,033.80 was expended as

compensations to farmers, chiefs and inhabitants of Kasaworado

and Moree including surveying cost, for the construction of

Educational Resort at the vicinity, without any signed sheets or



receipts to account for the payments. The money was disbursed

through the contractor of the project, Antartic Ltd. We recommended

to Management of the Institute to provide documentary evidence

(signed sheet/receipts, agreement between the University and the

beneficiaries, etc.) to authenticate the payment of GH¢188,033.80.

Failure of which management should refund the amount to the

University for our verification.

188. We noted from our site inspection and the Development

Committee’s minutes that construction of Educational resort at

Moree was 90% completed as at November 2016. However, three

years on, as at the time of our visit in July 2019, the facility has not

been put to use and as a result, portions of the fixtures have started

deteriorating. We recommended to Management to expedite action

on the completion of the project and put it to immediate use.

189. We noted that accreditation certificates of 9 programmes being

run by the Institute of Distance Learning (IDL) had expired.

Management was unable to provide accreditation certificates for 60

of the Institute’s programmes. We recommended to Management to

cease running programmes that are not accredited or having its

accredited certificates expired until they are accredited or the

expired certificates renewed, to avoid sanctions by NAB.

College of Engineering

190. We inspected the chemical stores of the College of

Engineering, and noted that, quite a number of the chemicals/drugs

in stock had expired, and the environment was generally

unconducive. We recommended to Management to constitute a

Board of Survey to report on the items and subject to a technical

report, follow up with Environmental Protection Authority (EPA) for

direction and disposal of these chemicals/drugs as early as possible.



Management should also charge the store keeper and the Lab

Manager to ensure rectification of the aforementioned flaws as soon

as possible.

College of Agriculture and Natural Resources (CANR) 191. We noted from a review of payment vouchers of CANR that, a

total amount of GH¢213,265.45 which was granted to 16

officers/payees to undertake various activities in 2018 had not been

accounted for as at the time of the audit in August 2019. We

recommended to the College Accountant to ensure that these special

advances are properly accounted for, failing which the amount of

GH¢213,265.45 shall be recovered from the salaries of the advance

holders in accordance with Regulation 288 of the Financial

Administration Regulations (FAR), 2004, (L.I 1802) and Paragraph

4.5(3) of Chapter 4 of the Accounting Policies and Procedures

Manual of KNUST, 2016.

192. We noted that, 7 Lecturers of the College were undertaking

various projects, funded by 7 Organisations. Management however,

did not provide the agreement showing the responsibilities of the

parties concerned. Reports and the total funds received for the

projects were also not made known to the team. Meanwhile,

amounts paid for the project’s activities during the period under

review, summed up to GH¢344,022.73. We recommended to

Management of the CANR to provide the contract agreements,

project completion reports along with the total amounts received and

disbursed for each project, failing which section 33 of the Audit

Service Act, 2000 (Act 584) shall be enforced.

Animal Science Department - CANR

193. We noted from our visit to the Animal Science Farm that,

Hatchery equipment and sausage processing machine which have



been installed were underutilised. In order to avoid waste that would

emanate from non-functioning and high maintenance cost of the

machines, we recommended to Management of the University to

strengthen internal control systems at the farms, and devise a

strategy that would ensure efficient use of the machines.

Management could also consider outsourcing the facilities or,

creating public awareness about the commercialisation of the

facility.

194. The University and the CANR granted loans to the tune of

GH¢374,237.80 between October 2017 and December 2018, to

Animal Science Department with the aim of revamping the farm to

generate income for the Department and the University as a whole.

However, as at 31 December 2018, no repayment had been made.

We also noted quite a number of irregularities which had rendered

the prospects and the viability of the farm uncertain. We

recommended to Management and the Council of the University to

take pragmatic steps to revamp the farm or seek strategic

partnership with private individuals to get the place revived to

forestall its possible collapse.

195. We noted that five suppliers charged VAT to the tune of

GH¢43,352.89 on VAT exempted supplies (medical supplies and

library books) valued at GH¢1,450,502.36 procured by the College

during the period under review. We advised Management to ensure

that, the suppliers provide evidence of payment of VAT of

GH¢43,352.89 to the Commissioner of GRA, failing which;

Management should recover same from the suppliers with evidence

of recovery for audit validation. We also urged management to

refrain from paying VAT on exempt supplies and to build capacity of

the staff involved in the payment processing function on rules and

regulations that underpins government financial business.



196. We noted that a net amount of GH¢55,128.12 was paid to

Professor Ben Banful for external Landscaping work at the clinical

students Hostel at Okomfo Anokye Hospital. However, the payee a

lecturer in the Horticulture Department of the University has not

registered with the Registrar-General’s Department as a supplier.

The work was also not well executed. We therefore recommended to

Management to ensure that the supplier reconstruct the

landscaping at his own cost, failing which, section 92 of the Public

Procurement Act, 2003 (Act 663) as amended by Section 51 of the

Public Procurement (Amendment) Act, 2016 (Act 914) shall be

enforced against the Management of the University. Management

should also ensure that contract awards follow the PPA procedures

as quoted above.

College of Science

197. The College of Science awarded a contract to the tune of

GH¢287,928.85 to three contractors through the University’s

Procurement Office to renovate Department of Chemistry’s

washrooms and fabricate burglar proofs. However, these projects

were not included in the University’s procurement plan. We

recommended that the College Accountant should engage all heads

of departments to make inputs on capital projects including

renovations to be done at their department during budget

preparation for inclusion in the University’s procurement plan. We

further advised Management of the College to ensure that recurrent

and capital expenditures are in accordance with the approved

budget provisions and also recommended that all procurement

activities should be captured in the entity’s procurement plan for

approval by the entity tender commmittee.



University Information Technology Services (UITS)

198. We noted during our interview with the Head of the University

Information Technology Section (UITS) that, the University did not

seek prior approval from the Auditor-General before implementing

the various Information Technology systems of the University. We

advised Management of the University to regularise the anomaly and

ensure that approval is obtained from the Auditor General for all

future IT sytems/software procurements.

199. We noted during our review of the IT/IS Policy that, though

the IT Policy was drafted in 2014, it is yet to be approved by

Management. Therefore, KNUST has no working IT policy to control

the use of IT systems and infrastructure. We recommended that the

UITS should review the draft IT Policy to reflect changes that have

taken place overtime in the academic, legal and IT environment.

Management should also, review and approve the draft IT Policy with

urgency.

200. The University did not carry out a risk assessment on its IT

infrastructure. We recommended to Management of UITS to carry

out Risk assessment on its IT infrastructure to enable it identify all

potential threats and devise effective and efficient strategies to

manage these risks

201. Our review of the segregation of duty arrangements over the

University’s Financial Management Information Systems called

Panacea disclosed that only one officer virtually performs all the IT

functions associated with the system. We urged Management of

UITS to put in place compensatory controls to reduce potential

control weaknesses that may arise when duties, functions or

positions of UITS staff cannot be practically and appropriately

segregated.



202. We noted during our analysis of the University Hospital’s

transactional data obtained from the Consolidated Bank (third party

pay collectors) that, the bank’s tellers do not capture the serial

numbers of the University’s custom pre-printed receipts as part of

the transactional data. This was due to the absence of a designed

field in the CBG data. We recommended that the UITS and the

Hospital should colLabourate and impress on CBG to create a

mandatory field in their data to capture all serial numbers of the

University’s customised pre-printed receipts.

MINISTRY OF FOOD AND AGRICULTURE GHANA COCOA BOARD

Head office

203. A total of GH¢137,618.60 granted to 8 officers to undertake

various activities had not been accounted for as at the end of the

financial year. We recommended to Management to ensure that this

amount is properly accounted for, failing which the amount should

be adjusted to the personal advance accounts in the Officers names,

and recovered, in accordance with Regulation 288(1) of the Financial

Administration Regulations (FAR) 2004.

204. The Board of Directors fees and allowances were not approved

by Ministry of Finance. Management of the Board could not provide

us the authority that approved the Directors fees and allowances.

Again, the Board approved overnight allowance of GH¢1,500 to the

themselves on 30/09/2017 without seeking approval from the

Ministry of Finance contrary to Section 9(6) of the Ghana Cocoa

Board Act of 1984 as amended. We recommended that the Board

should seek retrospective approval from the Ministry of Finance in



consultation with the Ministry of Agriculture to legitimise the

payment of these allowances.

Cocoa Marketing Company (CMC)

CMC Ghana

205. A total of GH¢85,386.58 advanced to Labour Supply

Companies was still in arrears in respect of four of the companies.

We recommended that Management take the necessary steps to

recover the amount and also put in measures to ensure that

advances granted are recovered within the agreed period.

Cocoa Health and Extension Division (CHED)

206. Out of 108 vehicles of CHED, only 49 were in very good

condition, seven vehicles were unserviceable and 42 were in poor

condition. We urged Management to take immediate steps to

replace the unserviceable vehicles and those in very poor

conditions.

Seed Production Division (SPD)

207. Management invested an amount of GH¢478,275.37 and

deposited an amount of GH¢1,898,932.96 with Unibank Ghana

Limited which has become defunct. We recommended to

Management to contact the Consolidated Bank which has taken over

the Unibank Ghana Limited to arrange settlement of the amount

invested with the interest.

Cocoa Research Institute of Ghana (CRIG)

208. Four equipment acquired by the Institute valued at

GH¢1,060,805.25 for Soil Science Division since 2009 had never

been used for their intended purpose due to non-availability of

accommodation to house them. We therefore, urged Management to



ensure that the equipment are installed and put to operation. We

also advised management to plan their procurement and buy

equipment they need to prevent the wastage of national resources.

209. Our audit disclosed that three Contracts awarded by CRIG

in 2017, have not only delayed for more than one year, the

contractors abandoned site only to return to site three months

before our visit in october 2019. We recommended to COCOBOD to

fast track the renovation works in order to minimise the risk of

incurring further costs which could arise from the delays.

Cocoa Clinic

210. Computerised Tomography Machine (CT scan) at the

Radiology Unit had not been functioning for one year now. To ensure

excellent service delivery and revenue maximisation, we urged

Management to make funds available for the repair and replacement

of faulty and outmoded medical equipment in order to maintain

existing clients and attract new ones to the facility.

211. Cocoa Clinic investments totalling GH¢3,762,833.69 are

currently being tied up at the newly established Consolidated Bank

Ghana Ltd. We urged Management to continue to dialogue with the

Management of Consolidated Bank Ghana Ltd to ensure the safety

of the investments and a smooth redemption on maturity dates

already agreed upon.

212. Clinic has grown consistently over the years in term of number

of patients, medical equipment and supplies; however, the physical

infrastructure supporting these facilities was woefully inadequate.

We urged management to speed up the implementation of the Clinic

expansion project.



213. Accountable imprest amounting to GH¢45,552.80 was not

retired as at 30 September 2018. We urged Management to recover

the amount from any officer who fails to retire the imprest granted

to him/her in accordance with the Ghana Cocoa Board’s structure

and operational guidelines.

214. 90 corporate clients as at 30 September, 2018 owed the Cocoa

Clinic to the tune of GH¢7,561,759 in respect of health services

delivered to them. We recommended to Management to strengthen

the debt recovery process of the Clinic to ensure that the debts are

recovered on due dates.

Bunso Cocoa College 215. Contrary to Section 91(1) of Public Financial Management

Act 2016 Management of Bunso College did not collect a total of

GH¢ GH¢215,866.89 owed the College from 46 organisations and

individuals as at 30th September 2018. We recommended that

Management should strengthen the debt recovery processess of the

College by appointing an officer with the sole responsibility for the

collection of debts so as to ensure that the debts are recovered

timely.

MINISTRY OF JUSTICE AND ATTORNEY-GENERAL’S DEPARTMENT

ECONOMIC AND ORGANISED CRIME OFFICE

HEAD OFFICE (EOCO)

216. We noted during the audit that in 2012, the EOCO started the

construction of the Kumasi office building project at Adiebeba,

Kumasi. However, works on the project had stalled since February

2013 due to litigation over the land as a result of an injunction Order



granted by a Kumasi High Court (Land Division). We urged

Management to actively involve its Legal Unit to liaise and

collaborate with the Attorney General in defence of the case.

217. We noted that several vehicles which have been impounded or

seized from various individuals or companies by the EOCO in

respect of cases under investigations were seen to be in serious

deteriorating conditions due to their continuous exposure to the

rigorous effect of the weather. We recommended that Management

should take steps to provide a secured and convenient garage for the

purpose of keeping all such vehicles being held for longer periods in

order to prevent further deterioration being caused by the weather

and other damages.

LAW REFORM COMMISSION 2015 - 2016

218. Examination of records showed that Law Reform Commission

(LRC) purchased two (2) motorbikes with registration Nos. M-13-GR

8291 and M-13-GR 8292 in 2013, but had no use of them. We

recommended that the authorising and approving officers should be

made to refund the current market price of the motorbikes to the

institution for our verification.

LEGAL AID SCHEME 2016

219. We noted during the review of Information Technology (IT) Unit

that the Unit was under resourced and faced with challenges. We

recommended that Management resource its IT Unit to be able to

achieve its objectives.



MINISTRY OF COMMUNICATION

GHANA POST COMPANY 220. Contrary to section 17(1) of the Public Procurement Act, 2003

(Act 663) Management made several procurements in respect of

goods, works and services but failed to constitute an Entity Tender

Committee (ETC) to monitor and supervise all these activities as

stipulated by the Act. We recommended that management of Ghana

Post as a matter of urgency should constitute the Entity Tender

Committee to take charge of all procurement activities as prescribed

by the law without any further delay for audit validation.

221. Management procured goods worth GH¢1,211,192.52 using

Request for Quotation as the method of procurement instead of

varying the methods as stipulated by the Fifth schedule of the Public

Procurement (Amendment) Act, 2016 (Act 914). We advised

Management to as a matter of urgency regularise the above anomaly

with the Public Procurement Authority (PPA) in accordance with the

Public Procurement (Amendment) Act, 2016 (Act 914) and inform

our office for verification.

222. Contrary to the provisions of Section 21(4 & 5) and 15(4) of

the Public Procurement Act, 2003 (Act 663), Management

sanctioned the procurement of goods and services worth

GH¢1,700,643.44 which was above its threshold. We advised

Management to as a matter of urgency regularise the above anomaly

with the Public Procurement Authority (PPA) in accordance with the

Public Procurement (Amendment) Act, 2016 (Act 914) and inform


223. The Company procured store items and services worth

GH¢716,201.71 without sourcing for at least three (3) alternative



quotations from different suppliers or service providers in

contravention of Section 43(1) of the Public Procurement Act 2003,

(Act 663) and Regulation 183(1) of the FAR, 2004 (LI 1802). We

advised Management to comply with the Public Procurement Act.

224. An office space of approximately 386 square metres at Head

Office Block B was converted into a dumping ground for obsolete and

waste materials in contravention of section 52(1) of the Public

Financial Management Act 2016, Act 921. We urged Management to

take immediate steps to constitute a board of survey to dispose of

the obsolete materials and effectively dispose the unwanted ones,

renovate and put the office space to economic use.

225. Management of Ghana Post procured an Accounting Software

called ‘SAGE” at a cost of GH¢476,398.89 (US$108,766.87) for its

financial operations without recourse to the Auditor- General or

Controller and Accountant-General; which contravenes Section

11(3) of the Audit Service Act, 2000 Act. We recommended that

Management should seek retrospective approval from the Auditor-

General without any further delay.

226. The Company made twenty-five (25) payments totalling

GH¢1,130,829.20 in respect of goods and services but did not

deduct the 3% and 7.5 % Vat and withholding tax respectively,

amounting to GH¢48,485.66 from suppliers and service providers

as required by Section 88(1) of the Internal Revenue Act, 2000 (Act

592) as amended. We recommended an urgent recovery of those

taxes from the suppliers and service providers for remittance to the

Ghana Revenue Authority.

227. We noted contrary to the provisions of Regulation 39 (2c & d)

that the Company made several payments amounting to

GH¢2,956,621.63 to suppliers, service providers and some officers



in the company for various activities but the Head of Finance neither

ensured that the payees signed nor issued official receipts to support

and acknowledge receipt for the payments to properly authenticate

and account for these transactions. We recommended that the

Managing Director and the Head of Finance should ensure that the

said payments are appropriately acknowledged with official receipts

and/or signatures of the payees to authenticate the payments,

failing which they should be held liable to refund the amount

involved to the company.

228. Contrary to Section 7(2) of the Public Financial Management

Act, 2016 (Act 921), Management of Ghana Post Company Limited

entered into a contract with Messrs Brick House (GH) Limited to

renovate the Kaneshie Post Office at a cost of GH¢125,022.15

without following due process leading to the payment of judgement

debt amounting to GH¢169,168.23. We recommended that the

Board together with the Managing Director, Nicholas N. Y Dery be

held liable for the loss.

MINISTRY TOURISM, CULLTURE & CREATIVE

ARTS

KWAME NKRUMAH MEMORIAL PARK

229. Contrary to Section 5(2) of the Financial Administration Act

(FAA) 2003, we noted that the Park was operating without an Act

since its inception. We advised Management to urgently consult its

sector Minister and the Attorney–General and Minister for Justice to

commence the enactment of a legislative Instrument (L.I) for the

Park.

230. We noted that irregular maintenance of the Kwame Nkrumah

Memorial Park block has resulted in leakage of the roofs of the



Administration Block. We advised that efforts must be made by

Management to secure funds for maintenance of the Block.

NATIONAL THEATRE OF GHANA

231. We noted that management of National Theatre have not

insured the edifice where major events are organised against

disasters as at the time of audit in 2019. We recommended to

Management to insure the property as required by the Act without

further delay and this office informed.

MINISTRY OF INTERIOR

NATIONAL DISASTER MANAGEMENT ORGANISATION-(NADMO)

232. We noted that, forty-three (43) staff members who separated

from the organisation by way of death, resignation, retirement and

vacation of post, were paid unearned salary of GH¢113,773.31. We

recommended that efforts be made by Management to recover the

amount of GH¢113,773.31, pay same to Government chest, and

obtain a Treasury Receipt to support the payment and our office

notified for verification.

233. We noted that, fifteen employees who resigned from the

organisation during the period under review did not give three

months’ notice in writing or pay three months’ salary in lieu of notice

to Management before leaving the organisation. We recommended

that Management should recover the amount (GH¢44,532.99) from

the affected persons and same paid back to government chest.

234. Our review of the Human resource department indicates that,

the Institution did not have a standard scheme of service and



collective bargaining agreement which regulates development of

Human Resource and criteria for payment of other incentives. We

recommended that Management in consultation with its stake

holders should draft a scheme of service and collective bargaining

agreement as a matter of urgency to ensure smooth running of the

Organisation.

MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY

235. Due to lack of supervision on the operations of the Accounts

Officers, a total of GH¢31,058.45 being cash balances for Accounts

‘2’ and ‘5’ were neither paid to bank nor carried forward to the next

month as opening balances. We recommended to Management to

ensure that the amount stated above is retrieved from the officers

involved and paid to bank for verification.

236. We noted during our review that gate proceeds collected for

matches played, were not lodged into bank account (Account No.5)

which was opened by the Authority specifically for that purpose, and

thus resulted in payment of GH¢145,538.84 in cash to football club

owners. We recommended to Management to put a stop to the

practice and ensure compliance with the regulation stated above.

We also advised Management that subsequently, all payments above

petty cash threshold should be made through the bank.

237. We noted that an amount of GH¢60,000.00 advanced by the

Ashanti Regional Sports Office to Headquarters to meet urgent

expenses on the 2017 National Sports Festival was not recorded in

any Cash Book of the Authority. We advised Management to call on

the former Director-General, Hon. Robert Sarfo-Mensah and Mr S.A.

Avio to account for the GH¢60,000.00 failing which the amount



should be recovered from them and paid to the Ashanti Regional

Sports Office for our verification.

238. We noted during our review of the records that 15 Tenants of

the National Sports Authority were owing rent amounting to

GH¢242,300.00 from January 2016 to December 2018. We urged

the Marketing Officer to ensure that the above stated amount of rent

owed by the tenants are collected and paid into the Authority’s

account for verification.

239. We noted from our review of the records that the Authority has

no Tenancy Agreements with the Shop owners at the Stadium. We

urged the Marketing Officer to ensure that Tenancy Agreements are

signed to ensure valid legal relations between the Authority and its

tenants.

240. We noted during the review that the Authority made payments

to some companies and individuals for the supply of goods and

services amounting to GH¢405,970.00 without deducting

withholding tax of GH¢26,853.50. We urged the Chief Accountant

to ensure that the above stated taxes are retrieved from the payees,

paid to Ghana Revenue Authority and receipts made available for

verification, failing which the amount should be recovered from the

Chief Accountant.

241. A total amount of GH¢97,872.02 collected as 17.5% VAT on

the sale of match tickets during the period under review was not paid

to Ghana Revenue Authority as at the time of reporting. We advised

Management to ensure that the above stated amount of tax revenue

is remitted to the GRA upon the receipt of this Management letter

failure of which the amount of GH¢97,872.02 should be recovered

from the Ag Chief Accountant.



242. Our examination of the payment vouchers showed that an

amount of GH¢256,165.04 was paid by the Authority for goods and

services for which GH¢23,507.13 was paid as VAT without obtaining

VAT invoices as required by the VAT Act. We urged the Ag Chief

Accountant to obtain the VAT invoices from the suppliers involved

and make them available for our inspection.

243. A total amount of GH¢125,252.47 was paid by the Authority

to Ghana Football Association (GFA) in respect of tickets printing for

which photocopy VAT invoices were issued by GFA to the Authority

instead of original VAT invoices from the printing house.

(Commercial Associates). Management was advised to obtain

original VAT invoices as well as receipts for the above stated amount

and make them available for our verification.

244. We noted that the Authority advanced a total of

GH¢939,126.09 and $214,484.00 to 10 sports associations to

prepare and participate in various national and international games

during the period under review. However, the associations did not

account for the moneys received from the Authority. We urged the

recipients to account for the above stated amounts failing which the

associations should be made to refund same.

245. Our review disclosed that a total of GH¢39,905.00, advanced

to some staff members by the Ag Chief Accountant to undertake

various activities during the period under review, were not retired.

We urged the Ag Chief Accountant to ensure that the staff members

involved, account for the imprest, failing which the amount shall be

debited to their personal account.

246. Our review of the records noted that payment vouchers

totalling GH¢819,062.92 for payment of goods and services

procured during the period under review were without adequate



supporting documents. We urged the Ag Chief Accountant to

ensure that the necessary documentation is provided to account for

the payments for verification, failing which the amount should be

recovered from the authorising and approving officers.

247. An Accounts Officer at the Theodosia Oko Hockey Pitch paid

a total amount of GH¢28,240.00 from the IGF for various expenses

without approval from Management. We recommended that all IGF

collected by the Authority should be lodged at the bank before any

disbursements are made by cheques or bank transfer.

248. Contrary to Regulation 1 of the Financial Administration

Regulations, payment vouchers valued at GH¢299,847.00 said to

have been used for various activities within the period under review

were not sighted during the audit. We urged the Ag. Chief

Accountant to produce those payment vouchers together with their

supporting documents for our examination, failing which the

amount will be recovered from him.

249. We noted that a total amount of GH¢1,531,760.00 meant for

goods and services was transferred into A/C 4 of the Authority to

meet some expenses of the 2017 Sports Festival which was not

provided for in the 2017 budget. We advised Management to desist

from the practice and ensure that all activities are properly planned

and budgeted for to avoid budget overruns.

250. Contrary to Section 30(2) of the Public Financial Management

Act 2016 (Act 921). We noted that the head of Accounts of the

Authority did not keep any register to record nor control the General

Counterfoil Receipts (GCRs) and other value books of the Authority.

We urged Management to call on the former Ag Chief Accountant to

provide the stock register and inform us for inspection.



251. Due to inadequate record keeping, the Authority did not

prepare financial statements for 2017 Financial Year as required by

Sections 79(1) and (80) of the Public Financial Management Act 2016

(Act 921). We urged Management to prepare the financial

statements and submit to the Auditor-General and Controller

&Accountant General to avoid sanctions by the Minister.

252. Our review of records disclosed that a total amount of

GH¢20,732.47 was paid to 9 former employees of the Authority who

were separated by way of death, retirement, resignation and vacation

of post. We advised Management to retrieve the above stated

amount from the ex-staff members, pay same to the consolidated

fund and the receipts made available for verification.

253. We noted that a total amount of GH¢148,453.50 worth of fuel

purchased could not be accounted for by the Transport Unit. We

advised Management to ensure proper accountability of fuel

purchased to prevent further loss of funds to the Authority.

254. We noted that a Tata bus with registration No. GV 70–14 and

a Toyota Hilux Pick Up with registration no. GV112-14 assigned to

Headquarters and Tamale Regional Sports Office respectively were

taken by creditors through court order for non-settlement of debts

owed by the Authority. We advised Management to take immediate

action to resolve future issues of such nature in order to avoid

further loss of the Authority’s assets.



MINISTRY OF EMPLOYMENT AND LABOUR

RELATIONS

SOCIAL SECURITY AND NATIONAL INSURANCE TRUST

(SSNIT)

255. We noted that the Controller and Accountant-General’s

Department (CAGD) as at 31/12/2018 paid only

GH¢1,719,627,683.40 out of total bills of GH¢2,492,656,064.00

leaving a difference of GH¢1,264,556,098.49. Management did not

also charge the default penalty of 3% on the delayed outstanding

contribution. We recommended to Management to enforce Section

64 of the Act 766 and recover all outstanding balances of SSF

contributions from CAGD to ensure retirement income security for

workers.

256. In contravention of Paragraph 3.1.2 of SSNIT Pension

Contribution Collection Services Agreement with 21 Agent Banks, 9

of the Agent Banks did not remit a total of GH¢26,331,114.79 to the

designated account at Bank of Ghana (BoG) as at the end of the

2017 and 2018 financial years respectively. We recommended to

Management to ensure that the banks transfer the unpaid balances

to SSNIT Account at BoG without further delay.

257. Contrary to Paragraph 4.0 of the SSNIT Pension Contribution

Collection Services Agreement, Management did not impose on the

9 Agent Banks total penalty charges of GH¢9,252,840.97 for failing

to transfer the daily SSNIT contribution collections per the

agreement. We recommended to Management to re-compute the

penalty and recover same from the Agent Banks and inform our

office for verification failing which the authorising and approving

officers of these contracts shall be held liable.



258. Contrary to the provisions of Section 63(4) of National

Pension Act 2008, Act 766, Management delayed the transfer

of the 2.5% National Health Insurance Levy (NHIL) to National

Health Insurance Authority (NHIA), for periods ranging from 2

months to 8 months. We recommended to Management to

promptly transfer to NHIA all Levies deducted. We also advised

Management to sign a memorandum of understanding with the

Authority to agree on the specific dates of transfers.

259. Contrary to Regulation 39 (1) of the Financial

Administration Regulations (FAR) 2004, the Trust incurred an

extra cost amounting to GH¢875,522.15 on the purchase of

22,860,423 shares for failing to participate in the right offer

within the offer period. We recommended that Management and

the Board must be proactive in its decision-making processes by

taking into consideration deadlines to prevent the Trust from loss of

funds.

260. In contravention of Paragraph 4.3.1 of the Property

Management Agreement, Broll Ghana Limited did not recover a

total of GH¢5,590,115.15 as rent arrears from 114 tenants who

had vacated the SSNIT commercial properties during the

periods under review. We urged Management to impress upon

Broll Ghana Ltd to recover the amount from the tenants. Again, we

urged Management to revise the agreement with the properties

Managers to include clauses that will tie fee payments to the rate of

recovery of rent outstanding from the tenants. We further advised

Management to be responsive to maintenance needs of the

Properties.

261. SSNIT did not recover an outstanding amount of

GH¢57,259,666.46 of the Bond purchased from Ghana



Education Trust Fund (GETFund) after the expiration of the

repayment period on 26th September 2016. We recommended

to Management to reach an agreement with GETFund and

Ministry of Finance to ensure the repayment of the amount

outstanding on the Bond.

262. Management was unable to recover a loan balance of

GH¢178,819.05 from Dr. Caleb K. Afaglo who had separated

from the Trust since 30th August 2017 in contravention of

Regulation 113 (1) FAR 2004. We urged Management to take all

necessary steps to recover the remaining loan balance from Dr.

Caleb K. Afaglo with interest at the Bank of Ghana prevailing interest

rate.

263. Contrary to Section 91(1) of the Public Financial

Management (PFM) Act 2016, Management did not collect

outstanding Bond amount of GH¢8.7Million from King University

College (KUC). The Bond tenure ended on November 11, 2016. We

advised Management to ensure that Investment officers effectively

perform due diligent on all SSNIT investments. We advised

Management to ensure that Investment officers effectively perform

due diligence on all SSNIT investment. We also urged Management

to recover the GH¢8,708,996.04 from the Kings University College.

264. In spite of the provision of Section 91(1) of the PFM Act 2016,

Management of SSNIT sunk a cedi equivalent of US$185,250,000.00

in a housing Project at Klagon and Sakumono. The Project is halted

and it is being managed by RSS, a Joint Venture Company belonging

to SSNIT and Regimanuel Gray. We urged the Board to consider

RSS’s proposal to rent the houses to reduce the losses on the

investment. We further recommended to the Trust to institute an

effective project evaluation process in investments of similar nature.



265. SSNIT was unable to recover an outstanding loan of

GH¢151,944,040 from NTHC after the expiration of the repayment

period on 29 May 2017. This was due to the absence of effective due

diligence and repayment arrangement with NTHC. We advised

Management to ensure that Investment officers effectively perform

due diligence on all SSNIT investments. We also urged Management

to recover the GH¢151,944,040 from NTHC without further delay.

266. Our comparison of rent receivable balances provided by the

Properties Department and Operations Department for 2017 and

2018 revealed a total difference of GH¢61,964,845.93 for 2017 and

GH¢39,350,310.49 for 2018. The balances provided by Operations

department are represented in the Financial Statements as rent

receivables. We recommended to Management to ensure that

monthly reconciliations are carried between the Operations and

Properties Departments. We also recommended periodic

reconciliation between SSNIT and the Property Management

Companies. We further urged Management to investigate the

respective rent receivable differences and appropriately adjust the

Financial Statements.

267. Contrary to the Board approval in its 292nd meeting to convert

apportion of CENIT loan into preference shares, in order to eliminate

its Thin capitalisation problem, Management of SSNIT could not

ensure the completion of the conversion as authorised by the Board.

We recommended that Management should follow up and ensure

that sufficient amount of the loan is converted to preference share

to eliminate the Thin capitalisation.

268. Contrary to the policy on paying Pensioners’ over 72 years,

SSNIT paid a total of GH¢153,646,675.30 on 300,967 transactions

to pensioners over 72 years who have not renewed their life



certificates. We recommended to Management to ensure that, the

required controls are configured to prevent loss of Pensioners funds.

269. In contravention of Section 91(1) of Act 921, the Trust as at

31st December, 2018 has not recovered a total of

GH¢2,379,233,073.10 loans granted to 8 related companies. This

was due to ineffective due diligence on the investment. We

recommended to Management to improve on the Trust’s loan

granting processes and also ensure that the loans are fully

recovered.

270. Despite the order of the Kumasi High Court in 2007, SSNIT

has still not recovered a debt of GH¢1.38 million owed by Fidan

Construction Limited as at 31 December 2018. We advised

Management to ensure that the court judgment is executed to enable

the Trust recover the amount of GH¢1.38 million.

271. Contrary Section 43 (1) of the Public Procurement

(Amendment) Act, 2016 (Act 914), Management used single

quotation to procure furnishing for qualifying Management officers,

instead of obtaining two [2] other alternative quotations for price

comparisons and value for money considerations. In order to ensure

value for money, we urged Management to ensure compliance with

rules and regulations governing procurements of public funds in

procuring furnishing for management dwellings meanwhile the

officers involved in the breach of the act should be sanctioned in

accordance with section 92 (1) of the Public Procurement Act.

272. Eleven (11) members of staff were dismissed in 2017 and 2018

for using forged certificates to gain employment into the Trust. The

staffs were paid salaries for periods ranging from 2 to 12 months

after their probation periods of 6 months. Also, the dismissed staff



received salary and lump sum payment resulting from other staff

benefits schemes of the Trust totalling GH¢840,502.38. We

recommended that Management should improve its recruitment

processes including confirmation of staff certificates during staff

probation periods to avoid loss of public funds.

273. Despite the provisions of ISO/IEC 27002:2013(6.1.1) SSNIT

Oracle 11g database has five (5) default accounts still opened, the

Trust still maintains the default oracle sample schemes SCOTT and

OE as well as the Oracle DEFAULT profile account which for gives a

user account unlimited password usage, password life time, CPU per

call or session. Also, the Trust continued to use the Oracle DEFAULT

port number 1521 to connect to the Oracle database server, which

can easily be known on the internet. We recommended to

Management to ensure that these default accounts are locked or the

passwords changed. Default profile policies should be reviewed and

necessary amendments made to reflect SSNIT’s security policies and

ensure that users profile settings have appropriate values set for the

particular database and application.

MINISTRY OF TRANSPORT

VOLTA LAKE TRANSPORT COMPANY LIMITED

274. Volta Lake Transport Company (VLTC) mounted a new radar

and GPS units on board, the MV Yapei Queen and MV Volta Queen

vessels, however it could not procure the Transponder device which

will make it easy to track the vessels. We recommended that

Management should procure the transponder device to help vessel

monitoring.

275. Management advanced an amount of GH¢107,366.00

($48,500) on 21 June, 2013 to Basic Security Systems Limited



(BSSL) to provide electronic security and computerisation services

on a pilot scheme at Adawso and Ekye-Amanfrom Ferry Stations but

the supplier did not perform the contract in full. We urged

Management to follow up with the supplier to fulfil the agreement

signed or recover the sum paid with interest. Management should

also sue the BSSL to recover the sum paid.

GHANA MARITIME AUTHORITY

276. Contrary to the second schedule of the Public Procurement

(Amendment) Act 2016, Act 914 the head of entity approved the

procurement of goods and services totalling GH¢3,011,506,57. The

value of each of the transaction was more than the approved

threshold of GH¢100,000 for the head of entity. We urged

Management to ensure compliance with all the provisions of the Act

in all future transaction; meanwhile the officers involved in the

breach of the act should be sanctioned in accordance with section

92 (1) of the Public Procurement Act.

277. Contrary to Regulation 122 (1) of the FAR 2004, the Authority

made payment for procurement of vehicle before agreement and

Public Procurement Authority (PPA) approval. They made the initial

payment of GH¢119,709.11 to Silver Star Auto Limited for the

purchase of 33-seater Mercedes Benz bus on 1 June 2018. This was

before the contract was signed on 12 November 2018 and PPA

approval letter to use restricted tendering dated 20th August 2018.

We recommended to Management to subject any procurement to the

requirements of the Public Procurement Act 2003, (Act 663) prior to

any payment being made meanwhile the officers involved in the

breach of the act should be sanctioned in accordance with section

92 (1) of the Public Procurement Act.



278. Contrary to Section 18 (5) of the Ghana Maritime Authority

Act, 2002 (Act 630) as amended, Management could not provide us

the Board resolution authorising the placement of additional

Investments of GH¢3,000,000 and GH¢2,000,000 with Royal Bank

Limited and UniSecurities Ghana Limited respectively during the

year under review. We urged Management to ensure strict adherence

to the requirements of the Ghana Maritime Authority Act, 2002 (Act

630) as amended. We also entreated the Authority to put in place

investment policies and procedures to guide investment decisions.

279. Contrary to Regulation 1 of the Financial Administrative

Regulations, 2004 (L.I.1802) , an Audi A6 vehicle with registration

number GH 768-17 for the official use of the former Director General

(Kwame Owusu) is still in his custody after he was relieved of his

post in March 2019. We recommended to Management to provide a

sufficiently documented basis for the assignment of the vehicle to

the former Director General, failure of which the vehicle should be

returned to the Authority.

MINISTRY OF TRADE AND INDUSTRY GHANA EXPORT PROMOTION AUTHORITY

280. We noted that there was no comprehensive strategic plan or

operating plan covering the period of our audit which is to provide

key guidance for the achievements of the Authority’s strategic

objectives. We entreated the Governing Council and the Executive

Secretary to have a comprehensive strategic plan- prepared to

provide guidance for driving Ghana’s Export Agenda.



281. During the period under review we noted that Management

spent a total amount of GH¢16,836,235.00 on administrative and

operational activities without any approved budget. We urged the

Executive Secretary to seek retrospective approval from Parliament

for the amount of GH¢16,836,235.00 spent to avoid disallowance

and surcharge sanctions.

282. We noted during our review of cash management that GEPA

received a total amount of GH¢15,738,319.76 from Exim Bank for

Export development. However, these funds were disbursed without

any approved budget. We entreated the Authority to seek

retrospective approval from Parliament for the utilisation of Exim

Bank funds and inform us accordingly.

283. We noted that the Ag. Director of Finance did not prepare and

submit to the Auditor-General for validation and certification, the

financial statements for the years 2017 and 2018. We urged the

Executive Secretary to ensure that the Ag. Director of Finance

prepares and submit to the Auditor-General for validation and

certification, the financial statements for the years 2017 and 2018.

284. We noted that Management did not prequalify four Travel and

Tour Companies before engaging them in ticket transactions

amounting to GH¢316,103.54. We recommended that Management

should ensure that all business entities meet the statutory

prequalification criteria outlined in section 21 of the Public

Procurement Act before they are considered for businesses.

285. We noted that out of total payments made on 18 payment

vouchers totalling GH¢192,136.00, US$29,805.00, £2,455 and

€5,670.00. Of these, GH¢161,539.00, US$14,605.00, £891.00 and

€1,015 were accounted for leaving a difference of GH¢30,597.00,

US$15,200.00, £1,564.00 and €4,655 respectively yet to be

accounted with relevant expenditure documents such as receipts,



signed list and/or initials of recipient. We requested the Ag. Director

of Finance to ensure that all payees who benefited from these funds

to account fully, failing which the amount of GH¢30,597.00,

US$15,200.00, £1,564.00 and €4,655 should be refunded by the

responsible officer.

286. We noted that the Authority did not obtain VAT invoice of

GH¢25,160.52 from a total value of GH¢203,995.35 being goods

procured and services rendered by fifteen (15) suppliers. We

requested the Ag Director of Finance to recover the VAT amount of

GH¢25,160.52 from the suppliers, failing which she would be

surcharged with the said amount.

287. We noted that the Authority procured goods and services

totalling GH¢1,589,355.89. However, the VAT/GETF&NHIL invoices

totalling GH¢206,950.92 issued in respect of these goods and

services procured were either without Tax Identification Numbers

(TIN) and wrong TIN. We requested the Ag. Director of Finance to

provide us with the Completed VAT returns form, VAT payment

receipt and VAT schedule from suppliers indicating that payments

were remitted to the GRA or the responsible Directors should refund

the VAT of GH¢206,950.92 to the Authority.

288. Between January 2018 and April 2019, we noted that

Management engaged forty (40) workers on contract basis ranging

from six months to two years renewable without seeking clearance

from the Ministry of Finance. Consequently, a total of

GH¢291,030.73 was expended on such employees for the period

under review. We recommended an immediate halt to the practice

and urged Management to seek retrospective approval from the

Ministry of Finance for their engagement, in line with the 2018

Budget Implementation Instructions on Compensation of employees,

regularise the contract staff and put them on the Ghana Universal

Salary Structure (GUSS).



289. We noted that for the period July 2018 to June 2019, there

was over-payment of salary totalling GH¢162,180.84 to Ms. Afua

Asabea Asare contrary to the approved salary in the appointment

letter issued to her from the Public Service Commission (PSC) after

she was interviewed. We advised that the overpaid salary totalling

GH¢162,180.84 should be refunded by the Executive Secretary Ms.

Afua Asabea Asare failure which the members of the Governing

Council and the Executive Secretary Ms. Afua Asabea Asare would

be jointly held liable.

290. Between July 2018 and June 2019, we noted the the

Governing Council authorised the payment of a net monthly salary

of GH¢17,903.90 each to Mr. Samuel Dentu and Mr. Albert Kassim

Diwura which was far above the approved Fair Wages and Salaries

Commission’s condition of service net monthly salary of

GH¢6,887.33 resulting in overpayment of salary totalling

GH¢246,993.88. We advised that the overpaid salary totalling

GH¢246,993.88 should be refunded by the two officers failure which

the members of the Governing Council together with Mr. Samuel

Dentu and Mr. Albert Kassim Diwura should be jointly held liable.

291. We observed that Management between March 2017 and June

2018 granted staff loans totalling GH¢47,604.50 to 12 Staff for

which only GH¢15,423.74 was recovered leaving a difference of

GH¢32,180.76 yet to be collected from the Officers over a year that

the advances were granted. We urged Management to recover the

overdue advance from the beneficiaries, failure of which the

authorising and approving officers who made the payments may be

sanctioned.

292. We observed that the Governing Council of the Authority

ignored the approved condition of service in accordance with section

3 of the Fair Wages and Salaries Commission (FWSC) Act, 2007 (Act



737) and approved a monthly basic salary of GH¢22,500.00 for the

Executive Secretary Ms. Afua Asabea Asare and GH¢19,125.00 to

each of the two Deputy Executive Secretaries (Mr. Samuel Dentu and

Mr. Albert Kassim Diwura) instead of the FWSC authorised and

approved basic monthly salary of GH¢3,920.62 each. Consequently,

monthly SSNIT contribution computation was based on the

Council’s approved basic salary instead of the FWSC basic monthly

salary resulting in overpayment of contribution of GH¢107,988.48

between July 2018 and June 2019. We advised that Management

should seek for a refund of the SSNIT contribution totalling

GH¢67,507.68 and pay back to the Authority’s accounts for

verification or ask the Deputy Executive Secretaries Mr. Samuel

Dentu and Mr. Albert Kassim Diwura to refund the difference.

293. We noted during our review of Foreign Travel Expenses that a

total amount of US$62,814.49 given out as imprest for

Communication and Internal rounds during Foreign Trade Mission

Trips by various staff were not retired. We entreated the Executive

Secretary and the Ag. Director of Finance to ensure that all imprests

are retired without further delay.

294. We noted that the Ministry of Trade and Industry on four

occasions wrote to seek financial support totalling GH¢440,000.00

from the Authority to attend various trade forums, summit and

exhibitions without providing relevant supporting documents. We

entreated the Executive Secretary to always ensure that the Ministry

of Trade provides supporting documents to cover such events.

Meanwhile relevant supporting documents relating to the assistance

offered should be made available from the Ministry for our review,

failure of which the amount of GH¢440,000.00 should be recovered

from the Ministry of Trade and Industry.



295. We noted that a debit notes of GH¢638,150.00 was served by

Ghana Supply Company Ltd to the Authority demanding the

payment of purported outstanding rents and cost of repairs to

damages caused by staff of the Authority in 2017. In response, a

total payment of GH¢444,000.00 was made without any evidence of

tenancy agreement or cost of damages. We requested the Executive

Secretary to justify the payments made with Tenancy Agreement and

records of all debit notes served by the Company from 1992 to date

or risk having the total payment of GH¢444,000.00 disallowed.

296. We noted that a total payment of GH¢93,650.80

(GH¢100,000.00 inclusive of withholding tax) vide PV no. 032, dated

19/03/2019 was in respect of a contract awarded to Yaw Pare

Photography to produce a 1- and 3-minutes video in English and

French as an urgent need to strategically showcase Ghana Export

Promotion Authority (GEPA). We further noted that two other

computer-generated invoice quotations were purportedly obtained

from 3Cubes Gallery and WON Films with GH¢140,000.00 and

GH¢120,000.00 respectively to support the transactions. However,

the audit team viewed these two invoices as not authentic and

cannot be relied on as genuine enough to serve as alternative

quotations. We recommended that in the absence of any reliable

procurement documents in the award of contract, the ES, Ms. Afua

Asabea Asare, the DES, Samuel Dentu and the Ag. Director of

Finance, Bernice Armah Ampofo who authorised the payment

should be made to refund the amount of GH¢100,000.00.

297. We noted that the Executive Secretary and the two Deputies

were paid a seven (7) months pro-rata bonuses calculated on a

Governing Council approved basic salaries of GH¢22,500.00 and

GH¢19,125.00 respectively awaiting ratification from the PSC,

resulting in overpayment of GH¢28,374.80 to them. We requested

Management to provide the authority ratifying the approval of the



basic salary for the three (3) officers, failure of which the ES and the

two Deputies should be made to refund the overpaid bonuses

totalling GH¢28,374.80.

298. The Executive Secretary did not ensure that Management

responded to our 2018 Management letter (reference no.

AS/GEPA/2018/04) for the period January 2012 to April 2018

issued in September 2018. We requested the Executive Secretary to

explain with valid reasons why GEPA did not respond to the

Management letter after 212 days of issue and why sanctions should

not be imposed for not complying with Act 584.

EXPORT TRADE, AGRICULTURE AND INDUSTRIAL

DEVELOPMENT (EDAIF)

299. EDAIF disbursed facilities to beneficiaries through Designated

Financial Institutions (DFIs.) However, it did not perform regular

reconciliations with the DFIs in respect of loans disbursed, resulting

in differences between the loan balances in the entity’s books and

balances confirmed by the DFIs for the period ended 31 March 2016.

We recommended that Management should perform monthly

reconciliations with the DFIs. All variances noted should be

investigated and resolved within a reasonable timeframe.

300. As part of the grant approval process, grantees are to submit

a monitoring and evaluation (M & E) report on previous

disbursement to EDAIF before subsequent disbursement are made.

however, 4 guarantees did not submit M&E reports before grants

totalling GH¢17,862,515 was disbursed to them. We advised

Management to ensure that M&E reports are obtained and reviewed

prior to disbursement of subsequent amounts.



GHANA EXPORT AND IMPORT BANK (EXIM BANK)

301. The Bank disburses facilities to beneficiaries through DFIs.

However, it did not regularly prepare such statements of accounts

and reconciliation with the DFIs in respect of loans disbursed. The

Bank may be unable to determine the amount settled and pursue

the recovery of the outstanding debt. We recommended that

Management should perform monthly reconciliations with DFIs.

302. The Bank was yet to issue shares for the GH¢50,000,000

consideration received for the stated capital as at 31 December

2016. We advised that the Bank should decide on the number of

shares to issue in respect of the minimum capital of GH¢50,000,000

and update the share register accordingly.

303. Our consideration of the operations and activities of the Exim

Bank Ghana disclosed that the bank is yet to have an IT Policy to

help regulate staff and others IT infrastructure as an integral part

of modern banking operation. There is a need for Management to

consider developing a comprehensive IT policy to prevent any

operational risk to complement the risk management framework and

operational risk framework.

304. The consideration of the Accounting Manual disclosed that

Exim Bank continues to use the old accounting manual from ex-

while Export Trade, Agricultural and Industrial Development Fund

(EDAIF) which operated under the mandate of EDAIF Act 2013, Act

872. Management should as a matter of urgency prioritize the

revision of the accounting manual for the operations to fall in line

with the Public Financial Management (PFM) Act 2016 Act 921, to

forestall any confusion between EDAIF and PFM Act.

305. Our review of the revenue records of the Exim Bank disclosed

that the bank relied on Bank Statement obtained from Bank of



Ghana (BOG) as evidence of its share of the levies. Management of

Exim Bank Ghana as a matter of urgency shoul work towards

securing joint collaboration between the GRA and GCNet towards

obtaining corroborating evidence as far as the levies are concerned

for the purpose of accountability and transparency.

306. We noted that the asset register of Exim Bank Ghana did not

capture some vital information on vehicles such as the year of make,

the vehicle numbers and the status of the asset. We urged

Management to conduct verification exercise to enable high reliance

to be placed on the records for informed decision making and to meet

asset replacement requirements.

307. Our examination of accounting records and personnel records

showed that, six (6) newly employees had been granted staff car

loans amounting to GH¢502,380.05 and that the 6 employees had

not satisfied the requirement of the conditions of service before the

loans were given to them. We recommended to Management that

they should set the tone and stick to strict compliance in respect of

the conditions of service to avert any future recurrence of similar

transactions.

308. Our review of the monitoring unit records showed that the unit

was able to conduct 8 field visits with corresponding reports out of

a total of 27 beneficiaries of the interest free facility from Exim Bank

Ghana. Management of the Exim bank should put in place a more

structured transition process to curtail operational inefficiencies.

309. We noted that with the establishment of the Ghana Export-

Import Bank by an Act of parliament with the date of assent on 29th

March, 2016. However, there is no constitutional instrument or

regulation to give effect to Ghana Export-Import Act, 2016 (Act 911).

Management in consultation with the Board should work towards



securing the regulation or the constitutional instrument to fill the

current legislation gap.

310. Our review of the internal audit unit disclosed that the unit

currently has three (3) permanent staff and one (1) support staff with

the head of internal audit who has been acting in that capacity since

28th February 2017 to date at the time of our audit on 12th August

2018. The Management team is encouraged to facilitate the

appointment of substantive head of the IA Unit and recruitment of

competent personnel’s to augments the staff strength at the IA unit

with adequate resources to make it more efficient in execution of its

function.

311. We noted that Exim bank Ghana had entered into an

agreement with Oasis Capital Ghana Limited in September 2016.

The bank had contributed GH¢ 5,000,000.00 which represent 10%

of its equity share to Oasis capital on January 14, 2017. Contrary to

the terms of the agreement, Oasis Capital Ghana Ltd did not submit

audited financial statements within 120 days of each yearend and

un-audited financial statements quarterly within 45days of each

quarter end. The Management and Board of Exim bank should as a

matter of urgency prevail upon Oasis Capital to furnish them with

the necessary information for effective monitoring of the

performance and progress of the equity.

312. Our audit disclosed that Suleman Issifu who was no more with

the bank owed a total amount of GH¢69,660.69 in respect of car

loan and welfare loan. We recommended to Management to recover

the amount from the defaulter without further delay or the

authorising officers should be held liable to refund the amount

involved.



313. Contrary to the Regulation 1(1a&b) of FAR, Management did

not present a sample of about 41 payment vouchers which cover a

total amount of GH¢14,506,397.03. We urged Management to

consider complying with fire safety regulations and safeguarding

property and scanning vital documents/records for archiving

electronically to meet the demands of the regulations above.

314. We noted during our audit that the bank procured goods and

services to the sum of GH¢349,688.57 without recourse to any

procurement plan. We recommended that Management should

strictly comply with the Public Procurement Act and develop a

workable procurement plan to guide its procurement activities.

315. We noted that the bank uses Sun-System Software to process

accounting transactions without approval from the Auditor-General

and a further review of the software disclosed some challenges. We

recommended to Management to seek approval from the Auditor-

General on the software and any subsequent acquisition of softwares

for the purpose of processing accounting information. Management

should make the agreements on the software available for our

review.

316. We noted that a total amount of GH₡8,584,890.00 was paid to

Messrs Grumah Twins Company Ltd (Contractor) as grants for the

construction of two irrigation dams at Kiape and Mandari in Bole

district. Our verification of the dams on the 23rd August 2018 noted

that Mandari dam was in a deplorable state. We advised

Management of Exim Bank to demand post implementation review

from the Ghana Irrigation Development Authority to assess the two

dams and remedy any challenges so that the purpose of the dam is

achieved.



317. Our field visit and interactions with sample of twelve

beneficiaries indicated that extensive due diligence was not carried

out in the disbursement of the funds because some of the

beneficiaries lacked technical ability to carry out the broiler projects

attributed to the overdue loan repayments. We advised Management

to consider engaging the beneficiaries of the facilities to address the

difficulties by restructuring the loan repayment terms. Management

should also conduct extensive due diligence in future disbursement

of facilities to prevent recurrent of non-payment of loans.

GHANA INVESTMENT PROMOTION CENTRE

318. We noted that Bank Reconciliation Statements were not

prepared at the end of every month. We advised Management to

make sure that Bank Reconciliation Statements are prepared at the

end of every month and reviewed by a supervisor to ensure that the

right balances are carried forward to the ledgers.

GHANA FREE ZONES AUTHORITY (GFZA)

319. The Minister of Finance did not approve Allowances totalling

GH¢403,044.39 and GH¢578,598.35 for 2017 and 2016

respectively, paid to members of the Board. This was a contradiction

to Section 4(3) of the Free Zone Act, 1995 Act 504. We recommended

that the Board should seek retrospective and current approval from

the Minister of Finance for allowances paid to members.

320. Management did not present authorisation for full retention of

GFZA internally generated funds, hence did not comply with section

47 of the PFMA 2016, Act 921. We recommended to Management to

comply with the Act 921 and seek approval from Parliament through

the Minister of Finance to retain the funds.



321. Contrary to Regulation 2(d) of the Financial Administration

Regulations, Management did not collect from the Free Zones

Companies long outstanding receivables balances totalling

GH¢2,776,347.01 and GH¢2,776,347.01 for 2017 and 2016

respectively. We recommended that Management should device

appropriate plans to retrieve all receivables. Management should in

line with the PFMA begin the process of writing off debts that have

become uncollectible.

322. In contradiction of Section 4(3) of the Free Zones Act 1995 (Act

504), the Board members were paid unapproved ex-gratia amount

totalling GH¢308,750 on 30 December 2016. We recommended to

the Board to seek approval from the MOF for the payments,

otherwise the amount should be refunded by the Board members.

323. Contrary to Regulation 39(2c) of the Financial Administration

Regulations 2004, payments totalling GH¢1,010,000.00 were made

for transactions without adequate supporting documents attached

to the payment voucher. In some instances, we sighted only payment

vouchers with a description of the payment made. We recommended

that the amount should be accounted for with relevant supporting

documents. Officials who signed for those payments should refund

if they cannot obtain the appropriate supporting documents.

324. In contravention of Section 21(5) and Section 22(1) (a)(i) of the

Public Procurement Act 663, procurement contracts totalling

GH¢361,371.26 and GH¢109,062.50 for 2017 and 2016 respectively

were segregated in some instances to enable the transaction fall

within the threshold of the Head of Agency. We recommended that

Management should review all suppliers’ file and update them with

the requisite statutory documentation. Contracts should not be

divided in order to avoid the appropriate authorisation and approval.



325. Management of the Authority did not protect Takoradi Free

Zone enclave land from encroachment by people, in conflict with

Section 52(1) of the Public Financial Management Act 2016, Act 921.

We recommended to Management to review the agreement with the

custodians of the land and pay the appropriate compensation. The

land designated as Free Zone enclave should be secured from

encroachers.

MINISTRY OF INFORMATION

GHANA NEWS AGENCY

326. The Agency expended GH¢56,368.15 on goods and services

without obtaining official receipts from the payees. We recommended

that, the scheduled officers should obtain receipts from the payees

to account for the payments or refund the amount of GH¢56,368.15

to the Agency’s account.

327. A total amount of GH¢527,739.42 generated internally from

operating activities and property rentals were expended without

retention approval from the Minister of Finance. We recommended

that, Management pay the unremitted IGF of GH¢527,739.42 into

the Consolidated Fund and show evidence of deposit for our

verification. Again, GNA should apply to the Minister of Finance

through the sector Minister for IGF Retention Clearance, until that

is done, all IGF generated should be lodged into the consolidated

fund and obtain evidence of lodgement for future audit inspection.

328. The Agency spent a total of GH¢149,310.00 on sitting

allowances to members of 4 budget committees which were not

sanctioned by the Board. We recommended to Management to either



retrieve from the payees or refund in full the GH¢149,310.00 spent,

and evidence presented for verification.

329. Fifteen (15) officers of the Agency without cars were wrongfully

paid a total of GH¢135,504.18 fuel and maintenance allowance. We

recommended that, all the beneficiaries should be made to refund

their respective amounts.

330. The Agency could not account for imprest totalling

GH¢20,440.00 granted its Regional Managers as at the end of 2018.

We recommended that, the unretired imprest should be fully

accounted for failing which, the imprest holders should be made to

refund same from their salaries.

331. A total of GH¢12,011.31 cash on hand could not be accounted

for by the Accountant Ms. Grace B. Atipaga, when called upon to do

so. We recommended that, Ms. Grace B. Atipaga should refund the

total amount of GH¢12,011.31.

332. Taxes totalling GH¢6,851.20 withheld were not remitted,

whiles, GH¢2,467.50 were not withheld. We recommended that,

Management should ensure that the Accountants retrieve the

GH¢9,318.70 of tax due government and pay same to Ghana

Revenue Authority (GRA).

333. We noted that sitting allowances totalling GH¢10,200.00 not

received by beneficiaries due to their absence, was not returned to

chest or the designated holding bank account. We recommended

that, Management should ensure that the schedule officer(s) or

those responsible for the payment account for same or refund the

amount.



334. The audit observed that the Agency paid an unearned salary

of GH¢7,650.80 to four separated staff in 2018. We recommended

that, Management should recover the unearned salary of

GH¢7,650.80 from the beneficiaries and pay same to Government

chest.

335. We noted that out of GH¢18,697.51, salary advance granted

to staff from the year 2016, only GH¢13,469.95 was recovered

leaving a difference of GH¢5,227.56 yet to be recovered. We

recommended that Management should exercise the options granted

by L.I 1802 to recover from defaulting staff all salary advances

granted.

336. Two retirees, Mr. Mohammed N. Issahaq and Mr. Patrick

Firempong of the Sakumono Bungalow–Accra and Chirapatre

Bungalow – Kumasi respectively, continue to occupy their official

residence after their retirement from active service. We

recommended that; Management should ensure their vacation from

the bungalows without further delays. Management should also

ensure that the repairs and maintenance cost to these properties

that might be occasioned be charged against Mr. Issahaq and Mr.

Firempong.

337. We noted during the audit that Ghana News Agency did not

obtain title deeds to its lands at Accra, Tema, Ho, Tamale and

Bolgatanga. We advised the General Manager, to start the

registration process and see to its completion without delay to secure

the lands and protect same from encroachment and possible

ownership litigation.



MINISTRY OF WORKS AND HOUSING

ARCHITECTURAL AND ENGINEERING SERVICES LIMITED (AESL)

338. Contrary to Section 90 (1&2) of the Public Financial

Management Act (PFMA) 2016, Act 921, the Boards was unable to

Collect Debts totalling GH¢45,776,06 owed to the Company for

Services rendered. Ministry of Education (MOE) projects owed

GH¢19,426,308 out of the total debt. We recommended that

Management should continue to engage with stakeholders for the

outstanding debts to be collected.

339. Contrary to Regulation 272. (1) And (2) of the Financial

Administrative Regulations (FAR) 2004. Lands and buildings

transferred to AESL were still in the name of Public Works

Department. We entreated Management to intensify steps to ensure

that, the titles for the Lands are transfer to AESL.

340. We noted that AESL did not pay the accumulated statutory

deductions of GH¢13,535,122 owed Ghana Revenue Authority and

SSNIT. We advised Management to take the necessary steps to meet

these statutory obligations to avert further penalties from GRA and

SSNIT.

STATE HOUSING COMPANY LTD

341. The State Housing Company (SHC) did not establish an Audit

Committee contrary to Sections 86 (1) of the Public Financial

Management Act 2016 (Act 921). We recommended to Management

to pursue the formation of the Board and subsequent establishment

of the Audit Committee, as mandated by Act 921.

342. The accounting software (Data flow) used in the operations of

the SHC Ltd had not been updated to undertake current activities of

the Company as it is not able to produce information for timely



decision making. We urged Management to acquire a modern system

to facilitate its operations.

343. Management did not establish effective internal controls

procedures for the collection of ground rents, resulting in estate

owners continuing to invade the annual ground rent payment of

GH¢200. We advised Management to institute strong control

procedures to increase its income from ground rent and to ensure

effective follow ups on outstanding balances.

344. In contravention of Section 20 (I) of the Public Procurement

(Amendment) Act 2016 and Section 40 of Act 663 as amended, a

solar generating unit at a cost of GH¢1,297,154 was procured

without going through the laid down procedures since Management

did not produce all the relevant documents in support of the

procurement. We recommended to Management to provide the

documents to support the procurement process and also ensure that

the Act is complied with at all times.

MINISTRY OF SANITATION AND WATER

RESOURCES

GHANA WATER COMPANY

345. Contrary to Section 13.3.2 of the Company’s Accounting

Manual, 10 units under Ghana Water Co. Ltd did not maintain fixed

asset registers. Also 8 out of the 10 units did not emboss their fixed

assets with identification marks. We recommended that

Management should uniquely label each unit’s fixed assets and also

ensure that fixed asset registers are maintained and include them

in the entire company’s fixed asset register.

346. The Upper West and Ashanti Production did not withhold

taxes on rent and other allowance paid to staff regardless of



Paragraph 2(iii) of Section 4 of the Income Tax Act 2015. Act 896.

We recommended that, Management should immediately ensure

that all allowances paid to employees are added to the employees’

income in determining their total emoluments and taxed at the

graduated income tax rate.

347. Bank reconciliation statements were not prepared for Brong

Ahafo Regional Revenue Account in spite of Regulation (2g) of the

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

Management to ensure that monthly bank reconciliations are

prepared, reviewed and dated.

EXTRA MINISTERIAL AGENCIES

COMMISSION ON HUMAN RIGHT AND ADMINISTRATIVE JUSTICE (CHRAJ)

348. Our audit disclosed that since the fire outbreak at the

Commission’s Head office in 2013, the Commission has not received

any report from the Ghana Police Service and Ghana Fire Service.

We urged that Management should intensify efforts to obtain the

reports from the Ghana Police Service and Ghana Fire Service in

order to put in place effective fire preventive mechanism to avert any

future occurrence.

GHANA AIDS COMMISSION

349. The Audit disclosed that an amount of GH¢169,350 given to

officers for accommodation and dinner for various programmed

activities were not accounted for with receipts and other relevant

documentation. Management was advised to ensure that the affected



staff account for the accommodation and dinner allowances of

GH¢169,350.00 or refund same to chest.

NATIONAL COMMISSION FOR CIVIC EDUCATION

350. We noted during our audit of the payroll that six former

employees did not give the required three or one-month notice prior

to their resignation. We recommended that Management should

recover the total amount of GH¢20,341.77 from the affected staff.



PART III

DETAILS OF FINDINGS AND RECOMMENDATIONS

MINISTRY OF ENERGY

NORTHERN ELECTRICITY DISTRIBUTION COMPANY (NEDCo)

Introduction 351. This report relates to the audited accounts of the Northern

Electricity Distribution Company (NEDco) for the year ended 31st

December, 2018.

Operational results

352. The Company recorded a loss of GH¢315,398milloion in 2018

financial year as compared with a loss of GH¢278,224million

registered in 2017. This represents a 13.4% decrease in the

Company’s financial performance over the period. The details of the

operational result are shown in table 4.

Table 4 Statement of Profit or Loss

Income 2018 GH¢000

2017 GH¢000

Changes GH¢000

% Changes

Revenue 529,249 598,982 (69,733) (11.6)

Other Operating Income

2,872 22,371 (19,499) (87.2)

Finance Income 13,499 15143 (1,644) (10.9)

Total Income 545,620 636,496 (90,876) (14.3)

Expenditure

Cost of Sales 786,977 867,390 (80413) (9.3)

Administrative Expenses

74,041 47,330 26,711 56.4

Total Expenditure 861,018 914,720 (53,702) (5.9)

Surplus/Deficit (315,398) (278,224) (37,174) 13.4

353. Total Income decreased by 14% from GH¢636,496 million in

2017 to GH¢545,620 million in 2018. The decrease in total Income



was due to 11.6% and 87.2% decrease in Revenue (Electricity sales)

and other operating income respectively. The decrease in Electricity

sales was largely as a result of increase Bulk Generation charge

(BGC) and reduction in End user Tariff (EUT).

354. Total expenditure incurred in 2018 amounted to

GH¢861,018million as compared with GH¢914,720million in 2017,

a decrease of 5.9%. This was mainly as a result of 62.1% decrease

in depreciation from GH¢387.608million in 2017 to

GH¢147.019million in 2018. The decrease in depreciation was as a

result of upward review of the useful lives of the assets.

Financial position

355. The Statement of Financial Position as at 31 December 2018

is shown in table 5.

Table 5: Financial position as at 31 December 2018

2018

GH¢000

2017

GH¢000

Changes

GH¢000

%

Changes

Non-Current Assets 1,005,997 1,013,303 (7,306) (0.7)

Current Assets 1,150,831 1,023,639 127,192 12.4

Current Liabilities 331,293 255,821 75,472 29.5

Net Current Assets 819,538 767,818 51,720 6.7

Non-Current

Liability

785,091 539,025 246,066 45.7

Net Assets 1,040,444 1,242,096 (201,652) (16.2)

Liquidity Ratio 3.47:1 4:1

356. Non-Current Assets decreased from GH¢1.013 billion in 2017

to GH¢1.005 billion in 2018, representing a decrease of 0.7%. This

was due to depreciation charge for the year.

357. The Current Assets increased by 12.4% from GH¢1.023billion

in 2017 to GH¢1.115billion in 2018. This was mainly due to

increase in Trade and other receivables over the period.



358. The Company’s liquidity ratio (Current ratio) decreased

slightly from 4:1 2017 to 3:47:1 in 2018. Despite the decrease, the

Company can meet its short-term obligations as and when they fall

due.

MANAGEMENT ISSUES

Non-lodgement of sales revenue GH¢632,207.68

359. Regulation 15(1) of the Financial Administration Regulations,

2004 (L.I 1802) states “Any public officer or revenue collector who

collects or receives public and trust moneys shall issue official

receipts for them and pay them into the relevant Public Fund Bank

Account within twenty-four hours of receipt except in exceptional

circumstances to be identified by the Minister.”

360. Regulation 12 of the Financial Administration Regulations,

2004 (L.I 1802) also states “A person entrusted with custodial duties

for public and trust moneys shall protect public and trust moneys

against unlawful diversion from their proper purposes and against

accidental loss, and locate such moneys so as to facilitate the

efficient and economical discharge of public financial business”

361. Our review of the 2018 Financial Year Internal Audit Reports

of the Company disclosed that a total amount of GH¢632,207.68

being sales revenues collected at three (3) Operational Areas of the

Company were not lodged into the respective bank accounts of the

Company, contrary to the above laws. Details are shown in table 6.



Table 6: Non-lodgement of sales revenue

1. Techiman operational area

Name of Cashier Amount

GH¢

Tsitsia Samuel 169,696.68

Sarpong Shadrack 83,861.86

Tanko Zakaria 58,072.97

Total 311,631.51

2. Wa operational area

Fatima Abdulai 18,004.31

3. Tamale operational area

Gilbert Buree 302,571.68

Grand Total 632,207.68

362. The anomaly occurred due to lack of effective supervision over

the cashiers by the Account Assistants and the Finance Officers in

the various operational areas, coupled with ineffective review of bank

reconciliation statements by area Account Officers.

363. This anomaly denied the Company the needed resources for

its operational activities to the detriment of the Nation as a whole.

364. We recommended that Management should intensify its

supervisory role over the activities of the Area managers, the Finance

Officers and Account Assistants. Meanwhile the amount of

GH¢632,207.68 being the fund embezzled should be recovered from

the named officers. We also recommended their prosecution to serve

as deterrent to others.

365. Management accepted our recommendation for immediate

implementation. Management also stated that, they have already

taken various steps towards the recovery of the amount.

Purchase and use of e-business suite (oracle) software without

approval from the Auditor General 366. Section 11(3) of the Audit Service Act, 2000 Act 584 states

“The public accounts of Ghana and of all persons and institutions



referred to in subsection (I) including computerized financial and

accounting systems and electronic transactions shall be kept in

such form as the Auditor-General shall approve and shall be subject

to review by the Auditor-General.’’

367. Contrary to the above Section of the Act, Management of the

Company uses the E-Business Suite (Oracle) software for its

financial transactions without any approval from the Auditor-

General as required by the above Act. It was further disclosed to the

team that the Company began using the software suite since 2013.

368. This infraction was caused by Management’s disregard for the

above Act.

369. We recommended that Management should seek retrospective

approval from the Auditor-General without any further delay per the

above Act.

370. Management responded that they have accepted our

recommendation for immediate implementation. Management also

stated that NEDCo uses the Oracle E-Business solution owned by

its parent company (Volta River Authority). The use of the software

comes at almost no cost to the company. Management in

collaboration with its parent Company will seek the necessary

approval from the Auditor-General as recommended.

Purchases from non-VAT registered persons - GH¢196,321.92

371. Regulation 183(4) of the Financial Administration

Regulations, 2004 (L. I 1802) states ‘A department shall procure

government stores from only Value Added Tax (VAT) registered

persons or entities and any department that requires an exemption



for any specific case shall apply to the Minister with the necessary

justification’.

372. Contrary to the above requirement, our review of procurement

records indicated that, Management of the Company procured goods

and services worth GH¢196,321.92 from non-VAT registered

entities.

373. The anomaly was caused by failure of the Head of

Procurement unit to ensure that the above Regulation is adhered to.

374. Management’s non-compliance with the FAR resulted in a loss

of GH¢5,889.65 in VAT/NHIL revenue to the Government.

375. We advised Management to comply with the provisions of the

FAR in future procurement transactions.


implementation.

Failure by the Entity Tender Committee (ETC) to hold quarterly meetings as required by law

377. Section 20(d) of the Public Procurement (Amendment) Act,

2016 (Act 914) states “An entity committee shall meet at least once

each quarter and notice of the meetings shall be given at least two

weeks before the day of the meeting”

378. We noted from the review of the Entity Tender Committee

(ETC) minutes that the ETC met only twice on the 13th June and 26th

November, 2018 for the period under review, contrary to the

aforementioned provision.



379. Management’s non-adherence to the procurement law is the

main cause of the irregularity.

380. As a result, the ETC could not effectively discharge the

functions as stipulated in the Procurement law.

381. We urged Management to ensure that Entity Tender

Committee meets at least once every quarter as required by the

above provision to enable the ETC effectively discharge its functions.


implementation.

Tamale Operational Area

Non-Maintenance of Inventory Register

383. Regulation 183(3) of the FAR 2004, L.I. 1802 states “a head of

department shall be accountable for the proper care, custody and

use of government stores from the time of acquisition until they have

been used or otherwise disposed of in accordance with these

regulations”. Inventory Register contains the details of institution

assets, including the specific offices they are located. It also

effectively tracks unserviceable items within an institution.

Furthermore, Section 98 (2) of the Public Financial Management Act,

2016 (Act 921) states ‘a person who contravenes subsection (1) is,

in addition to the penalty specified in that subsection

(a) liable for any liability contracted on behalf of Governmentas a

result of the contravention; and

(b) subject to disciplinary action by Government including dismissal,

demotion or suspension.



384. Our review of the inventory Management of the Company

disclosed that, the Company did not maintain an Inventory Register

at the Tamale Area Office to effectively monitor and control its assets.

385. We attributed the anomaly to the failure on the part of the

Estate manager to ensure that the inventory register is maintained

at the various operational areas to safeguard its assets and

properties.

386. Non maintenance of inventory register could lead to an abuse

or loss of the Company’s assets.

387. We recommended that Management should as a matter of

urgency prepare the inventory register and our office informed for

verification failing which Section 98(1) the Public Financial

Management Act 921 should be applied.


implementation.

VOLTA RIVER AUTHORITY (VRA)

Introduction 389. This report relates to the audited accounts of the Volta River

Authority (VRA) for the year ended 31st December, 2018.

Operational results

390. The Authority recorded a loss of GH¢220.101million in 2018

financial year as compared with a loss of GH¢430.544million

registered in 2017. This represent a 48.9% improvement in the

Authority’s financial performance over the period. The details of the

operational result are shown in table 7.



Table 7: Statement of Profit or Loss for the year ended 31 December,

2018

Income 2018

GH¢ 000

2017

GH¢ 000

Changes

GH¢ 000

%

Changes

Revenue 3,000,712 2,632,802 367,910 14.0

Other Operating Income 132,919 353,976 (221,057) (62.4)

Finance Income 14,101 9,788 4,313 44.1

Ameri tariff support 536,973 651,153 (114,180) (17.5)

Total Income 3,684,705 3,647,719 36,986 1.0

Expenditure

Cost of Sales 2,630,447 2,481,155 149,292 6.0

Administrative Expenses 448,846 428,963 19,883 4.6

Finance Expenses & Exchange loss

825,513 1,168,145 (342,632) (29.3)

Total Expenditure 3,904,806 4,078,263 (173,457) (4.3)

Profit/ (Loss) for the year (220,101) (430,544) 210,443 (48.9)

391. Total income increased slightly by 1% from

GH¢3,647.719million in 2017 to GH¢3,684.705million in 2018. The

increase in total income was due to 14% and 44.1% increases in

Revenue (Power sales) and Finance income respectively.

392. Total expenditure incurred in 2018 amounted to

GH¢3,904.806million as compared with GH¢4,078.263million in

2017, a decrease of 4.3%. This was mainly as a result of 29.3%

decrease in Finance Expenses and Exchange losses from

GH¢1,168.145million in 2017 to GH¢825.513million in 2018.

Financial position

393. The Financial Position of the Authority as at 2018 is shown in

table 8.



Table 8: Financial position as at 31 December, 2018

2018

GH¢ 000

2017

GH¢ 000

Changes

GH¢ 000

%

Changes

Non-Current Assets 8,745,922 8,260,403

485,519 5.9

Current Assets 7,495,142

6,110,609

1,384,533 22.7

Current Liabilities 6,419,391

6,187,043

232,348 3.8

Net Current Assets

1,075,751

(76,434)

1,152,185

(1,507.4)

Non-Current Liabilities 2,454,980

2,517,655

(62,675)

(2.5)

Net Assets 7,366,693

5,666,314

1,700,379 30.0

Liquidity Ratio 1.17:1 0.99:1

394. Non-Current Assets grew from GH¢8,260.403million in 2017

to GH¢8,745.922million in 2018, representing an increase of 5.9%.

This was mainly due to additions of Property, Plants and Equipment

during the year.

The Current Assets increased significantly by 22.7% from

GH¢6,110.609 million in 2017 to GH¢7,495.142million in 2018.

This was mainly due to increase in Trade and other receivables over

the period.

The Authority’s liquidity ratio (Current ratio) improved slightly from

0.99:1 2017 to 1.17: 1 in 2018. This shows that the Authority could

not be fully meet its short-term obligations as and when they fall

due, considering the fact that the accepted ratio is 2:1.



MANAGEMENT ISSUES

Improper Constitution of the Authority’s Board

395. Section 1 of the Volta River Development (Amendment) Act,

2005 (Act 692) States “The Authority shall consist of the

chairperson, the Chief Executive appointed under section 5 and

seven other persons”.

396. We noted from the review of the Board’s appointment letters

and minutes that the Authority consists of the chairperson, the

Chief Executive and six other persons making an 8-member Board,

instead of a 9-member Board in contravention of the above quoted

provision.

397. We attributed this irregularity to the failure of the appointing

Authority to comply with the provisions of the Volta River

Development (Amendment) Act, 2005 (Act 692).

398. The irregularity could affect the legality of the Board’s

decisions and could expose the Authority to legal risks.

399. As a matter of urgency, we advised the Board and

Management to liaise with the appointing authority to properly

constitute the Board in accordance with Section 1 of the Volta River

Development (Amendment) Act, 2005 (Act 692).

400. Management responded, “we acknowledge the importance of

having the full complement of the Board as enshrined in the Act that

set up VRA to equip the Board with the relevant skills and experience

to do their work. Subsequent to the inauguration of the Board, the

Chief Executive by a letter dated November 2, 2017 wrote to the

Sector Minister to inform the appointing authority about the



irregularity with the constitution of the Board and requested that an

additional person should be appointed to correct the irregularity.

The Chief Executive and Chairman have since the letter been

following up with the appointing authority.

401. The Volta River Development Act, 1961 (Act 46) protects the

Authority from the risks inherent in this irregularity. Section 7(3)

states that the validity of any proceedings of the Authority shall not

be affected by any vacancy amongst the members thereof, or by any

defect in the appointment of a member thereof.

402. We wish to assure the audit team that at all times, the

Authority has ensured that meetings have a quorum of five in order

to validate its decisions. That notwithstanding, we will continue to

follow up with the appointing authority to fill the vacancy, as a

matter of urgency.”

Failure to use the Authority’s accommodation facilities

403. Section 52 (1) of the Public Financial Management Act, 2016

(Act 921) states “A Principal Spending Officer of a covered entity,

state-owned enterprise or public corporation shall be responsible for

the assets of the institution under the care of the Principal Spending

Officer and shall ensure that proper control systems exist for the

custody and management of the assets.”

404. We noted during the period under review that, the Authority

owns institutional housing facilities in three of its operational areas-

Akosombo, Akuse and Aboadze. These facilities were meant to

provide accommodation to officers.

405. We observed that, 96 housing facilities of the Authority

comprising two and three bedrooms remained unoccupied as far

back as March 2014. Summary of the vacant staff houses and their

locations are provided in table 9.



Table 9: Failure to use the Authority’s accommodation facilities

S/No Location Type of Accommodation Total Remarks

1 Aboadze 3-bedroom supervisory

house

6 3 bedrooms

Aboadze 3-bedroom Workers house 7 3 bedrooms

2 Akosombo Management staff House 2 2- or 3-bedroom House

Akosombo Senior Staff House 31 Do

Akosombo Supervisory Staff House 1 3-bedroom House

Akosombo Junior Staff House 5 2- or 3-bedroom House

3 Akuse 2-bedroom 22 Staff house

Akuse 3-bedroom 22 Senior staff house

Total 96

406. The infraction was due to Management’s failure to maximize

the use of its housing facilities. Management of the Authority could

have rented out these idle housing facilities to the public to create

an additional revenue stream to support their operational activities.

407. Deterioration and increase cost of renovation will set in if the

housing facilities remain unoccupied.

408. We urged Management to take immediate steps to put the

affected housing facilities to economic use without further delay.

409. Management responded, “There are a couple of staff

institutional houses that are vacant because staff have moved out of

the houses for alternative accommodation arrangements.

Management is currently renovating these houses and will put them

to alternative uses once the renovation is completed.”

Suspended Sale of Houses to Staff

410. A memo from the Board Secretary to the Deputy Chief

Executive dated July 4th 2016 and captioned “Board Decision:



Proposal for the sale of some selected residential properties from the

VRA real estate portfolio.”

411. The Memo further stated that at its 212th ordinary meeting of

members of the Authority on the 29th of June, 2016, members

approved Resolution 977 authorising the proposed sale of some

selected assets with VRA’s real estate portfolio in Accra/Tema area

at discounted prices. Included in the selected assets are shown in

table 10.

Table 10: Suspended Sale of Houses to Staff

S/No. Property Address Discounted Value GH¢

1 1 No. SHC Type @ building No. 1453a 120,000.00

2 1 No. SHC Type @ building No. 1478a 110,000.00

412. We observed that the Authority, by a letter dated 9th

September 2016, offered the two houses listed above to two officers,

Mr joseph Nii Ayi Tagoe and Mr Torgbor Anang, who accepted the

offer and made payments of GH¢110,000.00 and GH¢120,000.00

as full payments by cheque numbers 000330(SG-SSB) and

192043(Barclays Bank), respectively, on 13 March, 2017 into the

Authority’s Ghana Commercial Bank Ltd. account Number

1011130029190.

413. The intended sale was, however, suspended by the Authority

through a letter dated 15th March 2018 and addressed to Mr Joseph

Tagoe. The only explanation given for the suspension was for the

authority to obtain the necessary clearance for the sale of the

property.



414. In our view, if this issue is not well addressed, could lead to

court action against the Authority which can result in payment of

judgement debt.

415. We advised Management to take a proactive and decisive

measures on the above issue to avoid future judgement debt.

416. Management responded, “The recommendation of the

Auditors is well noted and Management will address the issue

internally.”

VRA RESETTLEMENT TRUST FUND (VRA/RTF)

2017-2018

Introduction

417. This report relates to the audited accounts of the VRA

Resettlement Trust Fund for the year ended 31st December, 2018.

Operational Results

418. The period in review closed with a surplus of GH¢359,579.00

representing 83.2% decrease from GH¢2,136,671.00 recorded in

2017. Details of the performance indicators of the Trust Fund’s

operational results are shown in the table 11.

Table 11: Income & Expenditure Statement for 2018

Income 2018 GH¢

2017 GH¢

% Change

Grant 2,411,200.00 2,181,350.00 10.5

Other Income 573,909.00 635,413.00 (9.7)

Total Income 2,985,109.00 2,816,763.00 6.0

Expenditure

Personnel Cost 583,812.00 431,125.00 35.4


531,600.00 91,490.00 481.0



Occupancy Cost 138,344.00 103,735.00 33.4

Professional Fees & Expense

7,800.00 6,500.00 20.0

Project Cost 1,363,974.00 47,242.00 2,787.2

Total Expenditure

2,625,530.00 680,092.00 286.1

Surplus/(Deficit) 359,579.00 2,136,671.00 (83.2)

Income

419. Total Income recorded was GH¢2,985,109.00 showing a 6.0%

increase from GH¢¢2,816,763.00 in 2017. Grant from VRA

increased from GH¢2,181,350.00 in 2017 to GH¢2,411,200.00 in

2018 by 10.5%. Income generated from other sources declined by

9.7% to GH¢573,909.00 from GH¢635,413.00.

Expenditure

420. Total Expenditure amounted to GH¢2,625,530.00

representing an increase of 286.1 % from GH¢680,093.00 in 2017.

The increase was mainly due to rise in Personnel Cost,

Administrative Expenses and Project Cost of 35.4%, 481.0% and

2,787.2 respectively. Details are shown in table 12.

Table 12: Expenditure Statement for 2018

Expenditure 2018

GH¢

2017

GH¢

%

Change

Personnel Cost 583,812.00 431,125.00 35.4

Administrative Expenses 531,600.00 91,490.00 481.0

Project Cost 1,363,974.00 47,242.00 2,787.2

Financial Position

421. The financial position of the Trust Fund as at 31st December,

2018 is summarized in the table 13.



Table 13: Financial Position as at 31st December 2018

2018

GH¢

2017

GH¢

%

Change

Non-current Assets 54,996.00 76,196.00 (27.8)

Current Assets 6,597,048.00 6,202,162.00 6.4

Current Liability 92,392.00

29,355.00

214.7

Net Assets

6,504,656.00

6,172,807.00

5.4

Current Ratio 71.4:1 211.3:1

Non-Current Assets

422. Non-Current Assets decreased by 27.8% from GH¢76,196.00

in 2017 to GH¢54,996.00 in 2018. The decrease was due to

depreciation for the year.

Current Assets

423. Current Assets increased by 6.4% from GH¢6,202,162.00 in

2017 to GH¢6,597,048.00 in 2018. The increase was primarily due

to rises in Short Term Investment of 37.7% to GH¢4,128,278.00 in

2018 from GH¢2,569,516.00 in 2017.

Current Liabilities

424. Current Liabilities increased by 214.7% from GH¢29,355.00

in 2017 to GH¢92,392.00 in 2018 primarily due to a 74.8% increase

in Accounts Payable which rose to GH¢84,291.00 in 2018 from

GH¢21,254.00 in 2017.

Liquidity Position

425. The Trust Fund’s liquidity position is measured favorably by a

Current Ratio of 71.4:1 indicating that it would be able to adequately

meet its immediate financial obligations as they fall due.



MANAGEMENT ISSUES

Need for Investment Policy

426. Regulations 84 of the Financial Administration Regulations

2004 L.I 1802 requires that the principal created by a trust shall be

invested in securities in accordance with the financial

Administration Act,2003 (Act 654) and the interest derived from the

securities, and any profit or loss on sale of securities shall accrue to

the trust fund.

427. Further, part (8d) of the trust deed, mandated the managing

trustees the power to direct that any monies subject to the trust

hereof (including any income for the time being remaining

undistributed) shall be invested at their absolute discretion in the

purchase of or at interest upon the security of such stocks fund

shares securities or other investment as they at their absolute

discretion shall think fit to the extent that they shall have the same

full and unrestricted powers of making investments and carrying

investments as if they were the beneficial owners of the Trust Fund.

428. The VRA resettlement Trust funds treasury policy requires a

monthly assessment of liquidity to ensure that amounts invested

still allow the maintenance of sufficient cash to meet the

Organisation's commitments as and when they fall due. The majority

of cash, cash equivalents and investments are available within one

day's notice to support operational requirements, although penalties

would apply on short-term investments should a deviation from

agreed arrangements become necessary.

429. Our review of the financial records showed that board

committee on finance over the period invested some funds in various

financial institutions with the intention to earn returns to



complement the major source of funds from Volta River Authority.

However, this initiative is not guided by any documented policy on

investment. We further noted that, two (Christian Community

Microfinance Ltd and UT Holdings Ltd) out of the six institutions had

been affected by financial crises, hence the managing trustees were

unable to recoup the principal and the returns to a tune of

GH¢1,031,184.

430. The above is attributed partly to reliance on the experience of

the board committee on finance and accountings staff over the

period for the investment decision.

431. Extensive due diligence was not carried out on the affected

financial institutions.

432. The inability to recoup the investments amounting to

GH¢1,031,184 could affect effective delivery of earmark

developmental project in the resettlement communities.

433. VRA Trust fund's activities exposed it to a variety of financial

risks, including the effects of fluctuations in currency exchange

rates and interest rates; and defaults by investment institutions in

meeting their obligations.

434. In managing financial risks, the Trust Fund's investment

policy should be developed to take into account the unpredictability

of financial markets and seeks to minimize, where feasible, any

potential adverse effects on the Organisation's financial

performance, the focus being on capital retention rather than

maximizing revenue.

435. Also Managing trustees should pursue collection of the lock

up funds from the affected financial institutions.



436. Management agreed to the recommendation and added that,

the need to have an investment policy has been discussed

extensively by the Board. Henceforth all investments will be backed

by due diligence report before development of the policy is completed.

Besides, a letter has been written by the Trust Fund to VRA legal

department instructing them to proceed on our behalf a legal action

against UT Holdings and also all necessary documents has been

submitted to the Receiver in connection with the Christian

Community Microfinance Limited (CCML) to recoup our locked-up

funds.

Challenges in maintaining the Trust Deed

437. Article 10 of the trust deed requires that the Managing

Trustees shall act in accordance with the standing orders and have

the responsibility to revise, amended or revoke the standing orders

from time to time in a manner consistent with this Deed and with

the written consents of the Minister and the Authority.

438. We noted that considering the governance arrangements of

Volta River Authority Trust Fund, the eligible membership during

board meetings numbered sixteen (16) based on Article 11 of the

trust deed. Due to the current re-demarcation of regions in the

country, implies that the managing trustee’s number would increase

from 16 as stipulated in Article 11 and would make the governance

arrangement less cost effective and efficient to maintain.

439. We also noted that since authentication of the Trust Deed on

22 July 1996 there were no revision carried out to amend clauses

that will be relevant to the delivery of projects.



440. Further, we observed that the approved grant of USD

500,000.00 for the trust fund had not been revised to be in tune with

the changing economic conditions of the time.

441. The situation is blamed on the governance arrangement and

the predetermination grant in the trust deed.

442. In relation to the scope of the resettlement projects and the

amount involve makes the governance arrangement less cost

effective and efficient to maintain.

443. The unrevised grant amount would affect the delivery of

project for the resettlement communities with relatively insufficient

funds.

444. We urged managing trustees to liaise with the Minister and

the Authority to initiate a process to review the trust deed to be in

tune with the efficient model of project delivery in the resettlement

communities.

445. Management indicated that the revision of the Deed has been

noted for action by the Board. The adjustment of the grant is being

considered favorably by VRA.

GHANA NATIONAL PETROLEUM CORPORATION

Introduction

446. This report covers the audited accounts of the Ghana National

Petroleum Corporation for the year ended 31 December 2017.



Operational results

447. The operations for the period under review are provided in the

table 14.

Table14: Statement of Comprehensive Income for the year ended 31

December 2017

Income 2017

USD

2016

USD

%

Change

Revenue 267,737,386 126,942,871 110.9

Other Operating income 18,966,343 22,125,165 (14.3)

Re-measurement gains(losses)

of defined obligation

34,174 (100.0)

Total Income 286,703,729 149,102,210 92.3

Expenditure

Cost of Sales 102,603,540 76,605,810 33.9

General & Administrative

expenses

78,185,317 81,822,518 (4.4)

Other Operating 5,273,573 4,400,262 19.8

Finance cost 13,752,570

Re-measurement gains(losses)

of defined obligation

21,870

Total Expenditure

199,836,870

162,828,590

22.7

Surplus/(Deficit) 86,866,859 (13,726,380) (732.8)

448. The company recorded a surplus of US$86,866,859 in 2017,

thus registering a 732.8% decrease over 2016 deficit of

US$13,726,380.

449. Total Income increased by 92.3% from the 2016 amount of

GH¢149,102,210 to US$286,703,729 in 2017. The increase was

mainly due to a 110.9% increase in revenue from US$126,942,871

in 2016 to US$267,737,386 in 2017. The revenue increase was

mainly due to a 122.4% or US$132,361,798 increase in net share of

crude oil revenue.



450. Total expenditure increased by US$37,008,280 or 22.7% from

US$162,828,590 in 2016 to US$199,836,870 in 2017. The

increment was due to a 33.9% increase in cost of sales from

US$76,605,810 in 2016 to US$102,603,540 in 2017.

Financial position

451. Table 15 shows the financial position of the Corporation as at

31 December 2017.

Table15: Financial Position as at 31 December 2017

2017

USD

2016

USD

%

Change

Non-Current Assets 965,249,753 818,444,054 17.9

Current Assets 245,387,638 157,012,313 56.3

Current Liabilities 91,493,671 56,634,789 61.6

Non-Current Liabilities 484,509,159 371,053,876 30.6

Current Ratio 2.7 :1 2.8 :1

452. Non-Current Assets registered an increase of 17.9% from

US$818,444,054 in 2016 to US$965,249,753 in 2017.The increase

was due to a US$101,818,346 increase in amount due from

government agencies.

453. Current Assets increased by 56.3% to US$245,387,638 in

2017 from US$157,012,313 in 2016. This comprise inventories, due

from related parties, trade & other receivables, held to maturity

financial assets and cash & cash equivalent. The increase was due

to a 53.8% or US$60,216,838 increase in trade and other receivables.

454. Current Liabilities recorded 61.6% increase over the 2016

amount of US$56,634,789 to US$91,493,671 in 2017. This was due

to a US$34,858,882 increase in trade and other payables.



455. Non-Current Liabilities recorded 30.6% increase over the 2016

amount of US$371,053,876 to US$484,509,159 in 2017. This was

mainly due to a US$108,459,615 increase in medium term loan.

456. The liquidity position measured in current ratio decreased

from 2.8:1 in 2016 to 2.7:1 in 2017, despite the reduction, the

company can meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

Outstanding Reconciling items

457. Regulation 1 of the Financial Administration Regulations 2004

requires public officers to keep proper books of all transaction. As a

common banking practice, all cheques are valid for a period of six

months.

458. We noted during our audit that 6 reconciling items totalling

GH¢1,795,869 on the NIB bank (account number:111003955801)

reconciliation statement remained outstanding, well beyond the time

limit of six months. Examples of the reconciling items that were still

outstanding as at the time of our audit which commenced in June 2018

are shown in table 16.

Table 16: Outstanding Reconciling items

Date Issue Document number of

reconciling items

Amount

(GH¢)

13-Jan-2017 4200001145 318,435.00

25-Sep-2017 4200004487 10,000.00

19-Oct-2017 4200004787 919,845.00

14-Aug-2017 4200004073 532,920.00

6-Dec-2017 4200005600 8,000.00

12-May-2017 1300003234 6,669.00

Total 1,795,869



459. The inability for these cheques to be written off the books was

due to lack of adequate segregation of duties and challenges

emanating from the SAP implementation.

460. The reported cash balance may be materially misstated.

Errors or fraud may go unnoticed if these transactions are not

investigated.

461. We advised Management to ensure that all stale cheques are

investigated and treated properly in the financial records.

462. Management responded that they are working with the

consultants to resolve the challenge between the SAP bank

reconciliation module and the format of information from the

Corporation’s banker.

SAP Implementation yet to be successful with full functionality

463. Section 52 (1) and (b) of the Public Financial Management Act

2016 (Act 921) states that a Principal Spending Officer of a covered

entity, state-owned enterprise or public corporation shall be

responsible for the assets of the institution under the care of the

Principal Spending Officer and shall ensure that proper control

systems exist for the custody and management of the assets, and

ensuring that processes, whether manual or electronic, and

procedures are in place for the effective, efficient, economical and

transparent use of the assets.

464. An effective software implementation strategy is required to

ensure that every aspect of the processes; business rules, workflow

productivity and excellence performance is adequately covered.



465. We noted that the SAP software which was rolled out during

the year under review is yet to achieve full functionality as a result

of some modules not put into use.

466. We also noted that the contract covers the period; January

2016 and January 2019. With few months to the end of the project,

there are some modules that are yet to be completed. Examples

include; the business planning and consolidation (budgeting)

module and JV accounting module for petroleum projects are yet to

be completed.

467. The 2017 schedules for the financial statements were

prepared manually. The Corporation could not rely on the SAP Fixed

Asset Register and the underlying schedules produced. As a result,

fixed assets balances and related depreciation schedules were

manually prepared for 2017.

468. This was attributed to initial challenges with the SAP

implementation software. We also understand that the

implementation was phased and not all modules were implemented

as at 31 December 2017.

469. This may affect Management financial decision making and

control as information available may not be in the right form.

470. We recommended that there should be a top executive support

for the SAP implementation and Management should ensure that

remedial measures are deployed to make the SAP software fully

functional.

471. Management indicated that, outstanding implementation

issues relating to Phase 1 (e.g. Fixed asset model rollover) has been

sent to SAP for resolution and are expected to be complemented by



end of June 2019. Management expects to commence phase II in the

4th quarter of 2019.

Investment Strategy of the Corporation not clear

472. A clear and documented investment strategy is required to

demonstrate that financial returns can be achieved in addition to

social returns in order to motivate Government, the sole shareholder

to invest in business to create impact.

473. The Corporation appears not to have a clear strategy for its

investments in its subsidiaries. We noted that:

The Corporation’s 90% stake in Prestea Sankofa Gold Limited

is fully impaired, as the subsidiary company has been

insolvent since 2015. Several attempts by the Corporation

have not yielded any credible results and we have not been

provided with any clear plan to either liquidate the company

or bring it back into profitable operation.

There is also no clear plan or strategy on GNPC Exploration

and Production Company – the Corporation’s fully owned

subsidiary company. Despite having commercial interests in

a number of oil blocks, the subsidiary has not been

appropriately capitalized. It currently has no employees, no

bank accounts and with a stated capital of GH¢25,000. It

relies on GNPC for virtually all transactions. It’s audited

financial statements have not been signed since 2015 and only

draft balances have been used in the Corporation’s

consolidated financial statements.

474. Management explained that Explorco was currently not in a

position to fund its own operations which is currently being borne

by the Corporations.



475. The Corporation’s investment portfolio risk yielding virtually

no returns. The Corporation’s additional objective of meeting its

social responsibilities through such investments may not

materialise.

476. We recommended that Management should expedite action in

establishing a clear investment strategy that will create impact and

close all outstanding issues inhibiting the signing of the arrears of

audited financial statements and filing of annual returns.

Management responded that

477. In line with its strategy, Management plans to sell its interest

in Prestea Sankofa Gold Mining Limited and exit the industry when

a strategic partner is secured. Meanwhile an interim Management

team have been appointed to manage the disposal exercise.

478. With respect to Explorco, Management is of the view that cash

calls related to holding commercial interest in upstream operations

at exploration stage can put GNPC finances at risk, being a 10%

subsidiary. Management further indicated that a strategy to rethink

the vehicle that may be adopted to achieve operatorship is currently

under review and would be submitted to Board for consideration.

Inadequate backup/Disaster Recovery (DR) Procedures

479. Section 52 (1) and (b) of the Public Financial Management Act

2016 (Act 921) states that a Principal Spending Officer of a covered




systems exist for the custody and management of the assets, and

ensuring that processes, whether manual or electronic, and





480. As an industry practice, all backups should be restored and

tested to access the reliability of the all backups.

481. We noted during our review that weekly backups are

performed for corporate, SAP and Persol data. Back up is run from

the production server hosted at the Petroleum house and replicated

real time unto another server at Dennis house which is about 100

meters apart. However, we noted the following;

No backups test restoration was performed for either SAP or

Persol during the period under review. GNPC currently has no

off-site disaster recovery site for backing up or replicating data

from the production centre.

There is currently a disaster recovery plan which is in draft

and has not been approved by Management for

implementation and subsequently tests.

482. The current back up process does not ensure backup

restorations and location of an off-site Disaster Recovery.

483. GNPC may be unable to recover data, transactions and

programs that are necessary for financial reporting in the event of

data loss.

We advised Management

to finalise and approve the disaster recovery plan to ensure

implementation.



to develop and implement comprehensive backup policies and

procedures to guide backup and restoration of critical

information relevant to financial reporting.

copies of the backup tapes are kept offsite.

484. Management indicated that backup solution is being procured

which will address the issue. This solution includes a Disaster

Recovery Plan and the implementation of a comprehensive backup

solution for the Corporation. This solution will be in place by end of

year 2019.

Service Level Agreements (SLA) not maintained for some

vendors

485. As an industry practice, SLA must be maintained for third

party service providers to ensure quality service delivery as well as

achieving value for money.

486. Activities with third party service providers should normally

be governed by an SLA to serve as a basis to measure service

expectations against actual service provision. An SLA refers to a

contract between a service provider (either internal or external) and

the end user that defines the level of service expected from the

service provider. It defines Key Performance Indicators (KPIs) and

ensures value for money.

487. We noted during our review that that GNPC does not maintain

SLAs with all third-party service providers. For instance, there was

no SLA between GNPC and Radius Consulting Ltd, providers of

Firewall and e-mail filtering at the time of our review.

488. The current process does not ensure maintaining SLAs for all

service providers.



489. The absence of SLAs may create significant expectation gaps

between the end user and the service provider resulting in the end

user deriving no value from the service provided.

490. We recommended to management to ensure that SLAs are

implemented with all service providers to ensure that they include

key areas such as confidentiality, key performance indicators and

penalties for poor performance. Additionally, Management should

develop and implement a comprehensive procedure for managing

agreements with third party vendors.

491. Management indicated that vendor SLAs are currently being

reviewed.

Non-Performance of Vulnerability and Penetration Tests

492. As an industry practice, Vulnerability and Penetration tests

should be regularly performed to assess how robust the internal

network is against possible cyber threats.

493. We noted during our review that although GNPC recorded an

incidence of cyber-attack prior year, no vulnerability and

penetration was performed during the period under review.

494. Internal network may not be secured against new threats and

hence susceptible to cyber-attacks.

495. We recommended that Management should ensure

continuous performance of Vulnerability and Penetration tests to

identify possible loop holes in the internal network security and beef

up the network security accordingly.



496. Management indicated that a comprehensive IT security

solution is planned for 2019. The vulnerability and penetration

testing is part of the program and will become an annual program.

BULK OIL STORAGE AND TRANSPORTATION LIMITED

Introduction

497. This report covers the audited accounts of The Bulk Oil

Storage and Transportation Limited (BOST) for the year ended 31

December 2016.

Operational results

498. The year under review ended with a loss of GH¢458,638,724

as compared with a deficit of GH¢36,341,669 recorded in 2015. This

represented a 1,162% increase in deficit.

499. Details of the performance indicators of the Company’s

operational results are shown in table 17.

Table17: Income statement for 2016

Income

2016

GH¢

2015

GH¢

GH¢

Change

%

Change

Revenue 2,922,283,678 2,225,736,228 696,547,450 31.3

Other Operating Income 33,367,230 3,016,869 30,350,361 1006.0

Finance Income 1,661,306 2,702,897 (1,041,591) (38.5)

Total Income 2,957,312,214 2,231,455,994 725,856,220 32.5

Expenditure

Cost of Sale 2,831,243,378 1,857,266,855 973,976,523 52.4

Administrative Expense 538,286,390 213,208,973 325,077,417 152.5

Other Operating Expense 42,440,564 201,189,849 (158,749,285) (78.9)

Finance Cost 78,532,978 29,830,607 48,702,371 163.3

Total Expenditure 3,490,503,310 2,301,496,284 1,189,007,026 51.7

Loss before Income Tax (533,191,096) (70,040,290) (463,150,806) 661.3

Income Tax Credit 74,552,372 33,698,621 40,853,751 121.2

Loss for the Year (458,638,724) (36,341,669) (422,297,055) 1162.0



500. Total Income increased from GH¢2,231,455,994 in 2015 to

GH¢2,957,312,214 in 2016. This represented a 32.5% rise. The

increase was largely due to a 31.3% increase in Operational Revenue

from GH¢2,225,736,228 in 2015 to GH¢2,922,283,678 in 2016.

501. Total Expenditure also increased by 51.7% from

GH¢2,301,496,284 in 2015 to GH¢3,490,503,310 in 2016. This was

primarily due to 52.4% increase in Cost of Sales from

GH¢1,857,266,855 in 2015 to GH¢2,831,243,378 in 2016.

Financial Position

502. The financial position of the Company is presented in table 18.

Table18: Financial position as at 31 December 2016

Item 2016 GH¢

2015 GH¢

% Change

Non- Current Assets 1,078,801,515 968,681,072 11.4

Current Assets 1,280,123,196 1,034,169,876 23.8

Non-Current

liabilities 424,559,878 673,395,444 (37.0)

Current Liabilities 2,101,670,036 1,038,121,983 102.4

Net Assets (167,305,203) 291,333,521 (157.4)

Current Ratio 0.6:1 1.0 :1

503. Non-Current Assets rose from GH¢968,681,072 in 2015 to

GH¢1,078,801,515 in 2016 by 11.4%. The major increase was as a

result of a 100.0% rise in Investment Securities.

504. Current Assets also increased by 23.8% from

GH¢1,034,169,876 in 2015 to GH¢1,280,123,196 in 2016. This was

mainly due to a 150.4% increase in Inventories from

GH¢304,260,066 in 2015 to GH¢761,923,247 in 2016.

505. Non-Current Liabilities however decreased by 37.0% from

GH¢673,395,444 in 2015 to GH¢424,559,878 in 2016. The



reduction was as a result of a 34.1% fall in Loans and Borrowings

from GH¢511,192,812 in 2015 to GH¢ 336,909,618 in 2016.

506. Current liabilities significantly went up from

GH¢1,038,121,983 in 2015 to GH¢2,101,670,036 in 2016. This

represented a 102.4%. The increment was due to a rise in Trade

Accounts and Other Payable from GH¢839,534,717 in 2015 to

GH¢1,764,729,453 in 2016.

507. The Company’s liquidity position as measured by Current

ratio at the end of 2016 was 0.6:1as against 1.0:1 recorded in 2015.

This suggests an unhealthy liquidity position, implying that the

Company may not be able to meet its short-term obligations when

they fall due.

ENERGY COMMISSION-ENERGY FUND

Introduction

508. This report relates to the audited accounts of Energy

Commission - Energy Fund for the year ended 31 December 2017.

Operational results

509. The Fund recorded a surplus of GH¢1,423,033 in 2017, thus

registering a 74.0% decrease over the 2016 surplus of

GH¢5,481,947. Details of the performance indicators of the Fund’s


Table19: Income statement for 2017

Income

GH¢

2017

2016

GH¢

Change

GH¢

%

Change

Release from CAGD 23,726,357 25,044,776 (1,318,419) (5.3)

Fees from Permit 11,331,573 11,935,052 (603,479) (5.1)

Project Fund (EDMF) 1,000,000 300,000 700,000 233.3

Other Income 237,005 12,253 224,752 1834.3

Total Income 36,294,935 37,292,081 (997,146) (2.7)



Expenditure

Promotion of energy

efficiency & prod. Use of

elect. And natural gas 2,777,000 1,700,593 1,076,407 63.3

Human resource

development in energy

sector 5,177,725 6,625,590 (1,447,865) (21.9)

Promotion of project for

development & utilisation of renewable energy

resource 4,772,461 2,938,425 1,834,036 62.4

Local Content & local

participation for EDMF 900,000 300,000 600,000 200.0

Other Expenditure 21,244,077 20,243,261 1,000,816 4.9

Bank Charges 639 2,265 (1,626) (71.8)

Total Expenditure 34,871,902 31,810,134 3,061,768 9.6

Surplus / (Deficit) 1,423,033 5,481,947 (4,058,914) (74.0)

510. Total income decreased by 2.7% from GH¢37,292,081 in 2016

to GH¢36,294,935 in 2017. The fall was due to a 5.3% decrease in

Release from CAGD from GH¢25,044,776 in 2016 to

GH¢23,726,357 in 2017 and a 5.1% decrease in Fees from Permits

from GH¢11,935,052 in 2016 to GH¢11,331,573 in 2017.

511. Total Expenditure went up from GH¢31,810,134 in 2016 to

GH¢34,871,902 in 2017. This represented a 9.6% increment. This

was as a result of increases in Energy efficiency, conservation and

climate change, Promotion of project for development & utilisation

of renewable energy resource, Local Content & local participation for

EDMF and Other Expenditure.

Financial Position

512. The financial position of the Institute is presented in table 20

Table20: Financial position as at 31 December 2017

Item 2017 GH¢

2016 GH¢

Change GH¢ Change

Current Assets 10,501,257 9,078,224 1,423,033 15.7



513. Current Assets recorded 15.7% increase from GH¢9,078,224

in 2016 to GH¢10,501,257 in 2017. The increment was due to 34.3%

increase in Trade and other Accounts Receivable from

GH¢7,555,361 in 2016 to GH¢10,143,508 in 2017.

MANAGEMENT ISSUES

Non-Closure of Accounts at Month End

514. Regulation 193 (1) of the Financial Administration Regulations

states “At the close of business of the last working day of each month

or financial year, whichever is applicable, the accounts shall be

balanced off”.

515. We noted during the audit that, the Accounts staff doid not at

the end of every month, close the accounting books. This makes it

possible for entries to be passed even after month end making it

possible for staff to manipulate figures that are later transferred to

the Financial Statements.

516. Failure to close account balances at the end of every month

can results in the manipulation of account balances and a

misstatement in the financial statements.

517. We recommended to Management to implement a month end

closure process to safeguard prior Accounting records.

518. Management responded that the recommendation has been

implemented in the 2018 Accounts.



GHANA GRID COMPANY LIMITED

Introduction

519. This report covers the audited accounts of the Ghana Grid

Company Limited for the year ended 31 December 2017.

Operational results

520. The operations for the period under review is provided in the

table 21.

Table 21: Statement of Comprehensive Income for the year ended 31

December 2017

Income 2017

GH¢'000

2016

GH¢'000

%

Change

Revenue 715,200 673,835 6.1

Other Income 29,002 26,087 11.2

Finance income 3,261 1,124 190.1

Gains on revaluation of

property, plant & equipment

158,291 225,374 (29.8)

Total Income 905,754

926,420

(2.2)

Expenditure

Direct cost 353,532 342,697 3.2

General & Administrative

expenses

211,061 165,617 27.4

Finance cost 211,376 99,464 112.5

Income tax 2,594 24,136 (89.3)

Deferred tax charged on

gains on revaluation

39,573 55,518 (28.7)

Total Expenditure

818,136

687,432

19.0

Total comprehensive income for the year

87,618 238,988

(63.3)

(All amounts are in thousands of Ghana Cedis)



521. The company recorded total comprehensive income of

GH¢87,618 in 2017, thus registering a 63.3% decrease over the

2016 amount of GH¢238,988.

522. Total revenue decreased by 2.2% from the 2016 amount of

GH¢926,420 to GH¢905,754 in 2017. The decrease was mainly due

to a 29.8% decrease in gains on revaluation of property, plant &

equipment from GH¢225,374 in 2016 to GH¢158,291 in 2017.

523. Total expenditure increased by 19.0% from GH¢687,432 in

2016 to GH¢818,136 in 2017. The increment was due to a 3.2%

increase in Direct Cost, a 27.4% rise in General and Administrative

cost, and a 112.5% increase in finance cost.

Financial position

Table 22 shows the financial position of the Corporation as at 31

December 2017.

Table 22: Financial Position as at 31 December 2017

Item 2017

GH¢'000

2016

GH¢'000

%

Change


Current Assets 1,216,241 932,220 30.5

Current Liabilities 1,252,250 929,521 34.7




GH¢3,673,029 in 2016 to GH¢4,786,385 in 2017.The increase was

due to acquisition and revaluation adjustment in property, plant and

equipment.

525. Current Assets increased by 30.5% to GH¢1,216,241 in 2017

from GH¢932,220 in 2016. This comprises inventories, trade & other



receivables and cash & cash equivalent. The increase was due to a

39.6% or GH¢283,386 increase in trade and other receivables.


amount of GH¢929,521 to GH¢1,252,250 in 2017. This was due to

a GH¢321,692 increase in trade and other payables.

527. Non-Current Liabilities recorded 69.3% increase over the 2016

amount of GH¢1,424,965 to GH¢2,411,995 in 2017. This was

mainly due to a GH¢870,673 or a 92.6% increase in borrowing.

528. The liquidity position measured in current ratio remained the

same at 1.0:1 for both 2016 and 2017. The company can equally

meet its short-term obligations when they fall due but below the

benchmark of 2:1.

MANAGEMENT ISSUES

Non-payment of 2017 third tier pension contributions-

GH¢21,986,104

529. Section 3(3) of the National Pensions Act 2008, (Act 766)

requires Pension contributions to be remitted to the respective

custodians within 14 days following the month to which the

contributions relate.

530. Monthly third tier pension contributions for the year ended 31

December 2017 have not been remitted to the custodian, Ecobank

Ghana Limited. Total amount due as at 31 December 2017 was

GH¢21,986,104. This amount is made up of the principal

contributions due of GH¢2,616,586 and accrued interest of

GH¢19,369,518 which has accrued since August 2013.

531. This could be attributed to cash flow challenges faced by the

company. The company could incur penalties for non-compliance



with section 3(3) of the National Pension Act 2008(Act 766).

Employees will not get the full benefit of interest on their

contribution, since the payments are delayed.

532. We recommended to Management to ensure that,

contributions are remitted to the appropriate custodians within the

required period as set out in Section 3(3) of Act 766 to avoid payment

of penalties.

533. Management responded that at the beginning of 2017 there

was a backlog of GH¢14,039,500 in respect of 2015 and 2016 third

tier contribution which was paid in 2017. This did not allow GRIDCo

pay the 2017 contributions within the year due to cash flow

challenges. Management will bring payments up to date by middle

of 2019.

Non-accrual of penalties and interest on outstanding Corporate

Income Tax (CIT) and PAYE payments-GH¢193,749,555

534. Section 71 of the Revenue Administration Act, 2016 (Act 915)

states that a person who fails to pay tax by the date on which the

tax is payable is liable to pay interest for each month or part of a

month for which any part of the tax is outstanding.

535. We sighted a demand notice from Ghana Revenue Authority

dated 13 November 2017 stating that the Company owed a total

amount of GH¢193,749,555 made up as follows in table 23:

Tax Type Amount

(GH¢)

Corporate Income Tax (CIT) 157,469,468

Penalty – CIT 12,473,000

Interest – CIT 23,783,797

PAYE – Interest 23,290



Total 193,749,555

536. The total interest and penalties of GH¢36.28million has not

been accrued for as at 31 December 2017.

537. The company could incur penalties for non-compliance with

Act 896. Government have been deprived of the needed revenue for

national development.

538. We recommended that the Company should remit to Ghana

Revenue Authority the tax liability as required in Act 896 to avoid

any additional penalties and interest. Management should accrue

for the penalty and interest amount as communicated by GRA.

539. Management indicated that the omission resulted from a delay

in internal communication. The penalty and interest have been

accrued and captured in 2017 Financial Statements.

Value Added Tax (VAT) not charged on transmission services

540. Ghana Grid Company Limited does not charge Value Added

Tax (VAT) on the transmission services rendered to its customers

although the services are not listed as VAT exempt as set out in

section 35 of the Value Added tax, 2013 (Act 870).

541. Although the Company acquired VAT agency status in June

2017, it does not charge output VAT per a directive from the Ministry

of Finance. There is however no formal documentation or

correspondence for this directive. The approval from the Ghana

Revenue Authority has also not been obtained in respect of this

directive.

542. In the absence of any communication from the Ministry of

Finance and the Ghana Revenue Authority on the directive, the



Company may be liable for penalties for non-compliance with the

VAT Act.

543. We recommended that Management should obtain approval

from the Ministry of Finance and the Ghana Revenue Authority in

respect of VAT not charged on transmission services provided.

544. Management responded that the Company is VAT registered

but got a directive from the Ministry of Energy to hold unto charging

output VAT due to its effect on increasing electricity bills to bulk

customers.

545. Management is liaising with the Ministries of Energy and

Finance together with GRA to make a final determination on the

GRIDCo’s VAT status. This would be resolved by the end of

December 2018.

Non-existence of transmission service agreements or customer

agreements

546. The Company did not have a signed Transmission Service

Agreement (TSA) with the following customers and generators

although its accounting and finance manual requires a contract to

be in place for transmission services rendered. Details are shown in

table 24.

Table 24: Non-existence of transmission service agreements

or customer agreements

1. Volta Aluminium Company Limited

2. Akosombo Textiles Limited

3. Ghana Water Company Limited

4. Asanko Gold Ghana Limited

5. Drillworx Ghana Limited

6. Great Consolidated Diamonds

7. Owere Mines



8. Karpower Ghana Limited

9. TAQA Generation International

10. TV3 Network Limited

11. Sunnon Asogli Ghana Company Limited

12. Volta River Authority

13. Aksa Energy Co. Gh

14. Ameri Power Plant

15. Bui Power Authority

16. Cenit Energy

Table 24b: The following TSA’s have expired and have not been

renewed

Name of Customer Expiry date

Adamus Resource Limited May 2016

Perseus Mining Limited September 2016

Prestea Sanko Gold Mining Limited April 2017

Diamond Cement Company Limited April 2017

Savanna Diamond Company Limited April 2017

Electricity Company of Ghana March 2017

Communaute Electrique du Benin (CEB) February 2016

547. Transmission service agreements or other relevant

agreements should be signed with these customers stating the terms

of the services rendered to avoid disputes.

548. The absence of signed agreements with customers may result

in the Company not being able to enforce the terms of these

agreements. Also, in the event of disputes, the Company has no legal

point of reference in settling these disputes.

549. We recommended to Management to sign and renew all

expired TSA agreements with all its customers.

Management responded that:



GRIDco signs connection Agreement with generators and not

TSCs. These are connection Agreement for CENET, Aksa

Energy Co, Karpowership Ghana Ltd and TAQA Generation

International.

GRIDCo is yet to sign connection agreement with Bui Power,

Ameri, Sunon Asogli and VRA.

Negotiation on going to sign a TSA with Valco

Negotiations with Water Company to sign a TSA has stalled

due to lack of commitments on the part of Ghana Water Co.

GRIDCo has signed a TSA with Asanka Gold Ghana Ltd

TV3 is not a qualified transmission customer. Gridco does not

intend to sign a TSA with them.

Great Consolidated Diamond is disconnected. Negotiations

would start when they pay up and reconnect.

GRIDCo yet to sign TSA with Akosombo textiles

Drillworx Ghana Ltd has been signed.

GRIDCo has renewed its TSA with CEB

Prestea Sankofa Gold is disconnected so negotiations have

stalled.

GRIDCo is engaging all customers whose TSA have elapsed to

renew them before the end of 2018.

Long Outstanding Trade Receivables-GH¢234,338,331

550. Section 91(1) of Public Financial Management Act 2016, Act

921 provides that, the Board of Directors of a public corporation

shall ensure the efficient management of the financial resources of



the public corporation including the collection and receipt of moneys

due to that public corporation.

551. Clause 16.1 of the transmission agreement with its customers

requires a financial guarantee to be set aside which the company

may fall on when customer default.

552. Set out in table 25 is a list of trade debtors balances which

have been outstanding for more than twelve (12) months as at 31

December 2017.

Table 25: Outstanding Trade Debtors

Customer Amount (GH¢)

Enclave Power Company Limited 3,080,888

Electricity Company of Ghana 145,396,706

Northern Electricity Distribution Company 63,659,851

Prestea Sankofa Company Limited 464,033

Great Consolidated Diamonds 238,452

Akosombo Textiles Limited 684,402

Owere Mines 21,822

Bui Power Authority 4,943,986

Free Zones Board 1,819

Volta Aluminium Company Limited 15,846,372

Total 234,338,331

553. An amount of GH¢91,260 and GH¢89,165 representing part

of the amounts due from Anglogold Ashanti Limited and NCBC

respectively were in dispute as at 31 December 2017.

554. The Company has not enforced clause 16.1 of the respective

transmission agreements with its customers. The clause requires a

financial guarantee to be set aside which the company can fall on

when customers default in settling their debts to the company for

services rendered.



555. These long outstanding receivables may become impaired and

also impact negatively on the Company’s operating cash flow.

556. We recommended to Management to assess the recoverability

of these balances. In addition, clauses in the respective transmission

agreement including clause 16.2 (reduce capacity for no-payment

within 10 working days), 16.3 (termination of service) and 16.1

(application of bank guarantees) aimed at recoverability of

transmission fees should be enforced.

557. Management responded that the debt relating to NEDCo, ECG

and Valco are being considered for settlement under the ESLA bond

arrangement. Management is making efforts to collect the debts from

the rest of the customers whilst the Company has fully provided for

Great Consolidated Diamonds, Prestea Sankofa and Owere Mines

since they are currently disconnected.

Dispute of recharged Regulatory Levies, Ancillary charges and Power Infrastructure Levies 558. Section 91(1) of Public Financial Management Act 2016, Act





559. Based on trade receivable confirmation responses received,

the following customers were disputing amounts charged by the

Company as regulatory levies, ancillary charges and power

infrastructure levies. Table 26 shows the details.



Table 26: Regulatory levies, ancillary charges and power

infrastructure levies

Customer Amount

(GH¢)

Volta Aluminum Company Limited 161,964,648

Dimond Cement Company Limited 3,072,850

Savanna Diamond Cement Company Limited 1,887,403

ILDC/Enclave Power Company Limited 16,840,652

Totalling 183,765,553

560. Levies disputed may result in long outstanding receivables

and also impact negatively on the Company’s operating cash flow.

561. We recommended that Management should engage the Public

Utilities and Regulatory Commission (PURC) and the respective

customers to resolve this dispute.

562. Management indicated that Diamond Cement and Savanna

Cement have been given a disconnection notice for default in

payment. They requested for time to resolve issue with PURC by

June 2018. This issue of payment of levies and other charges is

expected to be resolved by the end of September 2018.

563. The issue of VALCO and ILDC is being discussed with PURC

and a resolution is expected by December 2018.

No on-Lending agreement between Volta River Authority (VRA)

and GRIDCO in respect of assets and liabilities transferred

564. The following long-term liabilities were recognised in respect

of assets constructed by VRA which in substance should belong to

GRIDCO. These assets were financed on facilities granted to VRA.

Details are shown in table 26.



Table 26: No on-Lending agreement between VRA and GRIDCO

Facility description Amount GH¢

VRA Contribution to WAPP-Drawings GH¢ 66,464,256

VRA Contribution to WAPP-Drawings USD 21,479,438

AFD B-GEDAP-Drawings 52,985,773

African Development Bank-Drawings 87,786,774

Kuwait Fund 657-Drawings 35,986,965

IDA CR4092-Drawings 165,409,504

IDA CR4213 – Drawings 184,090,808

Total 614,203,518

565. There is however no on-lending agreement between VRA and

GRIDCo in respect of these facilities.

566. The absence of an on-lending agreement may expose the

company to liquidity risks as amounts could be payable on

demanded.

567. We advised Management to engage VRA and the Ministry of

Finance to conclude on an on-lending agreement stating the terms

of the facility.

568. Management stated that, after the formation of GRIDCo the

various lenders for the transmission assets under construction

wanted VRA to continue with the implementation of the projects.

After completion, the two entities had to go through a reconciliation

process to ascertain the assets and liabilities. This process was

concluded in December 2017 and the balances reflected in GRIDCo’s

2017 Financial Statements.



569. GRIDCo would work with VRA and the Ministry of Finance to

amend the records to reflect GRIDCo’s indebtedness in respect of the

loans transferred to GRIDCo by the end of December 2018.

Credit Agreement between Electricity Company of Ghana and

GRIDCo not recognised in the books


2004 requires a public officer who is responsible (a) for the conduct

of financial business on behalf of the Government of Ghana, (b) the

receipt, custody and disbursement of public and trust moneys, or (c)

for the custody, care and use of public stores to keep proper records

of all transactions.

571. There is a credit agreement between Electricity Company of

Ghana and GRIDCo, dated 23 September 2009 which relates to the

construction of the following transmission assets:

Upgrading of the 161/34.5kv Mallam Bulk Supply Substation

Supply and installation of additional 25/33MVA 161/34.5kV

transformer and ancillary equipment at Asawinso Bulk Supply

Station. See details in table 27.

Table 27: The related amount per the agreement.

Amount

(US$)

Agreement amount 8,000,000

Accrued interest at 31/12/17 4,741,700

Total 12,741,700



572. This liability has however not been recorded as the related

assets have not been physically verified and handed over to the

entity. The value of the assets is yet to be determined.

573. Borrowing and property plant and equipment balances as at

year end may be understated.

574. We recommended to Management to engage the Electricity

Company of Ghana to identify the related assets and their associated

values. The assets and associated liability should be recorded in the

general ledger once the values are ascertained.

575. Management responded that a joint team is currently

compiling a report on the draw downs on the loan facility which

would be the basis for the asset verification and inclusion. The loan

amount as well as the assets would be recognised after completing

the reconciliation and reflected in 2018 audited accounts.

Bui Power confirmation of balances owed by GRIDCo

576. Regulation 1 of the Financial Administration Regultions, 2004

requires a public officer who is responsible (a) for the conduct of

financial business on behalf of the Government of Ghana, (b) the




577. Based on the trade receivable confirmation responses

received, Bui Power Authority confirmed the following amounts as

owed them by GRIDCo. This has however, not been recorded in the

books of GRIDCo. Discussion with Management disclosed that these

amounts have not been agreed upon hence not recorded.



Table 28: Bui Power confirmation of balances owed by GRIDCo

Description Amount

(US$ million)

Capital recovery 25.82

Ancillary charges 3.14

Total 28.96

578. Assets or liabilities may not be represented as assets due or

owed by the Company.

579. We recommended to Management that they should reconcile

these amounts with Bui Power Authority (BPA) and once an

agreement is reached, Management should recognise these

transactions.

580. Management responded that the transmission assets in

question were built and owned by BPA: a scenario allowed by the

National Electricity Grid Company; only that GRIDCo has the sole

mandate to operate these facilities and allowed to charge a fee for its

maintenance. Until BPA transfers the assets to GRIDCo, GRIDCo

cannot be paying for capital recovery for an asset owned by BPA.

GRIDCo has engaged PURC to resolve the matter and a solution is

expected by the end of December 2018.

Outstanding compensation payments not adequately supported

581. Regulation 39(2c) of the Financial Administration Regulations

2004 states that the head of the accounts section of a department

shall control the disbursement of funds and ensure that

transactions are properly authenticated to show that amounts are

due and payable.

582. The following amounts recognised as compensation payments

were not adequately supported (such as independent valuer’s report)

details are shown in table 29.



Table 29: Outstanding compensation payments

Project Amount (GH¢)

Aboadze-Volta Transmission 6,640,111

Bolga-Ougadougou Transmission Line 1,106,321

Supply Improvement to Western Region 14,634,596

Total 22,381,028

583. Without adequate support, there is no basis for the

recognition of these amounts and hence subsequent payments.

584. We recommended to Management to ensure that all

compensation payments are recognised and adequately supported.

In addition, Management should make such documents available to

the audit team.

585. Management responded that Aboadze-Volta - This project was

taken over from VRA and there have been residual issues which

GRIDCo has taken on board. Hence, these reports were prepared by

the Lands Management section (LMS).

586. Bolgatanga-Ouagadougou – Initial RAP is attached. This was

prepared by a Consultant. Original line route was determined to be

approximately 38km, however, the line was diverted thereby

reducing its length to approximately 18km. The report on the

diverted line area was done by GRIDCo Land Management section.

587. Supply improvement to Western Region (SIWRP) – The

Valuation report was prepared by the Land Valuation Board for the

entire 170km which was used for the implementation of the

compensation. Issues regarding affected lands, construction damage

and damage caused for the creation of feeder roads which occurred

during construction were handled by the LMS.



Dispute of transmission losses by Volta River Authority (VRA)

588. Regulation 1 of the Financial Administration Regultion, 2004

requires a public officer who is responsible (a) for the conduct of

financial business on behalf of the Government of Ghana, (b) the




589. Based on the trade payables confirmation response received,

VRA disputed balance due from GRIDCo as at 31 December 2017.

590. There was difference of GH¢53,752,944 in favour of VRA. The

variance is as a result of different rates used in the computation of

the transmission losses. Cost of sales and trade receivables for the

year may be understated.

591. We recommended to Management to engage the Public

Utilities and Regulatory Commission (PURC) and VRA to resolve the

dispute. In addition, Management should recognise the amounts in

the general ledger once resolved.

592. Management indicated that, VRA bills losses at a rate of

GH¢0.3597/kWh instead of the approved BGT rate of

GH¢0.2108/kWh. Besides, they measure the losses from Riviera in

La Cote d’Ivoire which is outside the boarders of Ghana. This is not

acceptable by GRIDCo. PURC has been petitioned to intervene in

this dispute but they are yet to meet with the two entities and to

make a determination.

593. Management is of a strong conviction that the dispute would

be resolved in GRIDCo’s favour. The difference shall therefore be

disclosed as a contingent liability. Management will continue to



pursue the matter with PURC and VRA to ensure a speedy

resolution. A solution should be found by December 2018.

Breach of loan covenant ratio

594. As at 31 December 2017, the Company breached the loan

covenants set out in table 30.

Table 30: Breach of loan covenant ratio

Name of Bank Covenant Breached Benchmark Actual at 31 December

2017

Rand Merchant Bank

Historic debt service cover ratio

Not less than 1.5 -2.6

Rand Merchant Bank

Historic debt service cover ratio (including cash reserves)

Not less than 2 -1.84

Rand Merchant Bank

Net debt/EBITDA ratio

Not more than 2 6.97

Stanbic Bank Ghana Limited

Debt service cover ratio

Not less than 1.30

-2.6

Agence Francaise de Developpement

Debt/EBITDA ratio Not more than 4.50

7.05

Agence Francaise de Developpement

Current ratio Not less than 1.30

0.97

CAL Bank Limited

Debt service cover ratio

Not less than 1.25

-2.6

595. Non-compliance with agreed debt covenant may trigger early

repayment, non-approval of subsequent disbursement or penalties.

The Company may also incur additional cost on contracted facilities

due to breach in covenants in loan agreements.

596. We advised Management to monitor loan covenants to ensure

compliance, as non-compliance may restrict access to funds.



597. Management responded that loan covenant ratios are based

on formulae defined by each lender, however, based on the financial

performance over the period the outcomes were not in our favour.

GRIDCo’s earning reduced in 2017 due to low demands by

customers. Also, loans transferred from VRA in respect of

transmission assets affected the covenant ratios.

598. Management is taking steps to ensure increased revenue

through increased transmission of power to customers and financial

restructuring to comply with covenant ratios. The convent ratios

should improve by June 2019.

Long outstanding advances or prepayment to suppliers-

GH¢112,074.00






600. An amount of GH¢112,074.00 advanced to thirteen (13)

institutions has either not been retired or the services for which the

payments were made have not been rendered for over six months to

six years. Details are shown in table 31.

Table 31: Long outstanding advances or prepayment to suppliers

Description Date of payment Advances paid

(GH¢)

48 Engineer Regment (Rear) 12-Apr-11 7,045

Afrodan Limited 29-Jun-17 7,565

Delta Unic Co 17-Nov-16 18,706

Electricity Company of Ghana 23-Jn-17 2,500

Fabe Design House 17-Aug-16 2,030

Inter-Class Associates Ltd 15-Feb-17 10,575



Kingdom Books & Stationery Ltd 2-Jul-14 5,000

Laptops & More Enterprise 31-Mar-17 9,400

Multi Wheels Ghana Ltd 7-Jun-17 34,053

Omlaku Ventures 28-Jun-17 3,021

Palace Hypermarket 28-Jun-17 6,480

Stoubos Limited 1-March-16 2,700

Vodafone 31 Dec-16 3,000

Total 112,074

601. The recoverability of these amounts may be doubtful. The

company does not earn any interest on these advances.

602. We recommended to Management to put in place measures to

recover these amounts if the purpose or services for which the

amounts were paid are no longer needed.

603. Management indicated that a total amount of GH¢68,477 has

been retired. Management would retire the rest before the end of

December 2018.

Damaged, obsolete and allegedly stolen items in inventory-

GH¢365,624.00

604. Section 52(1) of the Financial Management Act 2016, Act 921

states that a Principal Spending Officer of a covered entity, state-

owned enterprise or public corporation shall be responsible for the

assets of the institution under the care of the Principal Spending


custody and management of the assets.

605. Section 83(1) of the Public Procurement Act 2003 states that

the head of a procurement entity shall convene a Board of Survey

comprising representations of departments with unserviceable,

obsolete or surplus stores, plant and equipment which shall report

on the items and subject to a technical report on them, recommend



the best method of disposal after the officer in charge has completed

a Board of Survey form.

606. Per the year-end inventory count report, we noted some items

identified as damaged, obsolete and allegedly stolen. These items

were part of the inventory balance as at 31 December 2017. Details


Table 32: obsolete and allegedly stolen items

Item Description Status Value

GH¢

Booklet, Medical Bill Obsolete 10,575

Coat, Rain Rubber Obsolete 83,672

Boot, Safety, Size 9, Steel Toe, A Obsolete 16,684

Card, Medical Attention Request Obsolete 575



Booklet, Employees Confidentia Obsolete 2,070

Paint, Liquid Plastic, 5kg/Bucl Obsolete 146,856

Rust Remover, Super, 4.5-5l/Cnt Obsolete 51,339

Capacitor Can, 4uf, 19.9kv Four damaged 12,112

Scanner, Hp Scanjet SJ N6310, A One faulty 1,724

Clamp, Horizontal Stud Terminal Alleged theft case 7,381

Clamp, Palm,570 Aaac To Palm Wi Alleged theft case 2,402

Clamp, Palm,570 Mm2 Aaac Cond T Alleged theft case 9,835

Clamp, Palm,570 Mm2 Aaac Cond TO Alleged theft case 9,306

Clamp, Cross 26.45 Cond To 40 Alleged theft case 5,455

Clamp, Cross 38 Cond TO 30 STU Alleged theft case 1,431

Clamp, Cross 38 Cond TO 26 STU Alleged theft case 859

Clamp, Parallel Groove, AAC 400m Alleged theft case 781

Clamp, Parallel Groove, AAC 240m Alleged theft case 2,147

Clamp, Terminal Stud Bus, 100 T Alleged theft case 250

Total 365,624

607. Inadequate control over inventory may cause financial loss to

the company through theft. Inventory balance as at 31 December

2017 may be overstated.



We recommended to Management to investigate the alleged stolen

items and put in place controls to prevent this from recurring.

608. Management indicated that they are going through the

required processes to dispose of the damaged and obsolete items.

Management is investigating the circumstances leading to the theft

to avert future occurrence. All issues to be dealt with by end of 2018.

PUBLIC UTILITIES REGULATORY COMMISSION

Introduction

This report relates to the audited accounts of the Public Utilities and

Regulatory Commission for the year ended 31 December, 2017.

Operational Results

609. The year in review closed with a surplus of GH¢35,076,718

representing a 66.5% increase from GH¢ 21,069,204 of 2016.

Details of the performance indicators of the Commission’s


Table 33: Income Statement for 2017

Income 2017 GH¢

2016 GH¢

% Change

Regulatory Levies 54,231,281 41,159,655 31.8

Donor & Others 125,022 906,822 (86.2)

Total Income 54,356,303 42,066,477 29.2

Expenditure

Personal Cost 12,848,324 10,679,981 20.3

Commissioner's Allowances 432,188 617,400 (30.0)

Administrative Expenses 3,585,810 3,371,044 6.4

Operational Expenses 2,413,263 6,328,848 (61.9)

Total Expenditure 19,279,585 20,997,273 (8.2)

Excess Income Over Expenditure

35,076,718 21,069,204 66.5



610. Total Income increased by 29.2% in 2017 from GH¢42,066,477 in

2016 to GH¢54,356,303 in 2017. This was largely due to a

31.8% increment in Regulatory Levies which moved from GH¢41,159,655

in 2016 to GH¢54,231,281 in 2017. Funds from Donors and Others

however reduced drastically to GH¢125,022 in 2017 from GH¢ 906,822 in

2016 by 86.2%.

611. Total Expenditure decreased marginally by 8.2% to close the

year at GH¢19,279,585 from GH¢ 20,997,273 in 2016. This was

primarily due to a 61.9% or GH¢3,915,585 decrease in the

operational expenses.

Financial Position

The financial position of the Commission as at 31 December, 2017

is summarised in the table 34.


Items 2017 GH¢

2016 GH¢

% Change

Non-Current Assets 9,415,545 9,908,409 (5.0)

Current Assets 315,087,858 201,053,501 56.7



612. Non-Current Assets decreased marginally by 5.0% from

GH¢9,908,409 in 2016 to GH¢9,415,545 in 2017. Depreciation and

disposals accounted mainly for the decrease.

613. Current Assets also rose to GH¢315,087,858 in 2017 from

GH¢201,053,501 in 2016 by GH¢114,034,357 or 56.7%. The major

driver of the increase was a 36.4% or GH¢114,460,380 rise in

Accounts Receivables and Prepayments. Cash and Bank balances

however reduced by 52.1%, closing the year with GH¢818,300 from

GH¢1,244,323 in 2016.



614. Current Liabilities increased by 48.9% from GH¢160,397,648

in 2016 to GH¢238,862,423 in 2017.

615. The Commission’s liquidity position as measured by Current

ratio of 1.3:1 (2016: 1.3:1) indicates that the Commission might face

difficulties in meeting its immediate financial obligations as the

results is far below the accepted industry measure of 2:1.

MANAGEMENT ISSUES

Inefficient Management of Regulatory Levy

616. The PURC Amended Act of 2010, Act 800 mandates the

Commission to impose and collect levies on electricity and natural

gas service providers. The Act further provides that PURC allocate

the levies so collected in the following manner after retaining 40%;

- Pro-Poor Water Program 20%

- Energy Commission 15%

- Rural Electrification 25%

617. Additionally, Regulation 2(d) of Financial Administration

Regulations,2004, LI 1802 provides that the head of government

department “secure the due and proper collection of government

revenue collectable by the department within the terms of any

enactment or of instructions issued or approved by the Controller

and Accountant-General the head of government department shall

secure the within the terms.

618. Furthermore, Regulation 20 of LI 1802, 2004 states that, “a

head of department responsible for collecting various types of fees

and charges shall review annually the administrative efficiency of

collection, the accuracy of past estimates and the relevance of rates,

fees and charges to current economic conditions and submit



proposals through the appropriate Sector Minister to Parliament for

approval.

619. The recovery rate of the fines due from Ghana Grid Company

Limited (GRIDCo) continues to deteriorate over the three-year period

from 2015 to 2017. In 2017, the percentage collected was 20.50%

compared with that of 2016 of 24.38% and 2015’s 39.71%. Find

below analysis of the indebtedness of GRIDCo’

620. In a similar circumstance, the Ghana National Gas Company

(GNGC) remitted zero in both 2016 and 2017. Details are shown in

table 35.

Table 35: The analysed indebtedness of Ghana National Gas

Company

2017 GH¢

2016 GH¢

% Change

Balance due at 1st Jan 137,133,529 75,722,646 81.1

Invoices for the year 93,205,072 61,410,883 51.8

Total 230,338,601 137,133,529 68.0

Less Cash Received - - -

Balance due at 31 Dec 230,338,601 137,133,529

% Collected - -

621. Government efforts as reported in the 2016 audit report at

liquidating inter energy and power sector providers’ indebtedness

did not yield any fruitful dividend. In the said arrangement the

Commission was expected to receive GH¢10.5 Million approximately

in 2016. We observed at the time of the audit that this arrangement

was yet to be implemented.

622. The Commission may not be able to fund its mandated

activities as stipulated in the Act.



623. We recommended to Management to continue to strengthen

its consultative arrangements with GRIDCo and GNGC. The sector

Ministry should be involved in the discussions.

624. Management responded and acknowledged that it is a sector-

wide problem.

A committee has since been set up to work on modalities of collection

of revenues. The committee is made up as follows: - Electricity Company of Ghana

- Volta River Authority

- Ghana Grid Company Limited

- Ghana National Gas Company

- And the Commission

625. The Committee is close to completing its task in order to settle

all the outstanding debt. Management has also signed off its

reconciled balance with GNGC as at date and a formal letter issued

requesting for the outstanding balance. GNGC has started paying

portions of its debts to the Commission in 2018.

Disproportional Allocation of Funds

626. The PURC Amended Act of 2010, Act 800 mandates the

Commission to impose and collect from electricity and natural gas

service providers levies and allocate these levies to achieve four core

activities mandated by the Act.

627. Levies collected are to be applied in the following manner after

retaining 40%;

Pro-Poor Water Program 20%,

Energy Commission 15%



Rural Electrification 25%.

628. We noted that funds of GH¢21,461,500 received from GRIDCo

in 2017 was not fairly allocated to support the three other core

activities. Table 36 shows the distribution of funds received.

Table 36: Disproportional Allocation of Funds

Program Fair Allocation

GH¢

Actual Allocation

GH¢

Variance GH¢

2017 Allocation

%

2016 Allocation

%

PURC 8,584,600 20,883,508 12,298,908 97.3 96

Energy Commission

3,219,225 - (3,219,225) - -

Rural Electrification

5,365,375 - (5,365,375) - 1

Pro Poor Water

4,292,300 577,992 (3,714,308) 2.7 3

Total 21,461,500 21,461,500

629. PURC was allocated 97.3% of funds received with only 2.7%

going to Pro Poor Water. Energy Commission and Rural

Electrification received nothing.

630. We further observed that actual allocation for PURC increased

marginally by GH¢1,491,726 or 7.1%. Pro Poor Water declined by

GH¢29,186 or 5%. All other Programs received no allocation.

Table 36b

Program 2017 Allocation

GH¢

2016 Allocation GH¢

Variance GH¢

% Change

PURC 20,883,508 19,391,782 1,491,726 7.7

Energy Commission

- - - -

Rural Electrification

- 100,000 (100,000) (100)

Pro Poor Water 577,992 607,178 (29,186) (5)

Total 21,461,500 20,098,960



631. The Funds earmarked for specific activities and programs may

not be available to achieve intended objectives. PURC may also not

be able to meet its financial obligations to staff and other service

providers as they fall due.

632. Management has been advised to evaluate current terms of

allocating funds received aimed at ensuring a much equitable

modality for the consideration and approval of the Commission’s

Board.

633. Management responded that the inability of GRIDCo to pay

the Commission in full is affecting the allocation criteria for the other

beneficiaries. Management has as at 2018 put in place measures to

allocate the funds received based on the allocation formula

prescribed in the PURC Amendment Act 800 of 2010 to all the

beneficiaries. Management assured that in 2018, the other

beneficiaries received payments accordingly.

Weak Working Capital Cycle

634. PURC Amended Act of 2010, Act 800 mandates the

Commission to impose and collect from electricity and natural gas

service providers levies and allocate these levies so collected in the

following manner after retaining 40%; Pro-Poor Water Program 20%,

Energy Commission 15% and Rural Electrification 25%.

635. We noted that the indebtedness of the two providers, that is

GRIDCo and GNGC keep increasing with both forming 99.78% of

Accounts Receivable in 2017 and 99.83% in 2016. GRIDCo’s

indebtedness increased by 25.1% and GNGC by 40.5% in 2017.



Details of Account Receivable are shown in table 37

Accounts Receivable

2017 GH¢

2016 GH¢

Variance GH¢

%

GRIDCo 83,247,178 62,335,548 20,911,630 33.5

GNGC 230,338,601 137,133,529 93,205,072 68.0

Others 683,779 340,101 343,678 101.1

Total 314,269,558 199,809,178

636. The Commission is also mandated to allocate remaining 60%

fees collected to Pro-Poor Water, Energy Commission and Rural

Electrification after retaining 40%.

637. We also noted that the Commission’s 99.97% of indebtedness

were to the above programs. This indebtedness has kept increasing

over the years due to their inability to allocate funds as demanded

by the Act.

Detail analysis of the Accounts Payables are shown in table 38

Accounts Payable 2017 GH¢

2016 GH¢

Variance GH¢

%

Pro-Poor Water 75,456,747 48,919,098 26,537,649 54.2

Energy Commission 59,757,286 39,420,574 20,336,712 51.6

Rural Electrification 102,429,771 68,535,219 33,894,552 49.5

Other 73,679 75,000 (1,321) (1.8)

Total 237,717,483 156,949,891

638. The inability to collect funds from GRIDCo and GNGC could

inhibit the Commission from undertaking their core mandate. This

cycle if not checked with urgency could prevent some beneficiaries

especially our rural folks from benefiting from the program and

would suffer undue hardship.

639. We recommended to Management to continue to strengthen

its consultative arrangements with GRIDCo and GNGC. The sector

Ministry should be involved in the discussions.



640. Management responded and acknowledged that it is a sector-

wide problem.

A committee has since been set up to work on modalities of collection

of revenues. The committee is made up as; - Electricity Company of Ghana

- Volta River Authority

- Ghana Grid Company Limited

- Ghana National Gas Company

- And the commission

641. The Committee is close to completing its task in order to settle

all the outstanding debt. Management has also signed off its

reconciled balance with GNGC as at date and a formal letter issued

requesting for the outstanding balance. GNGC has started paying

portions of its debts to the Commission in 2018.

NATIONAL PETROLEUM AUTHORITY

Introduction

642. This report relates to the audited financial statements of the

National Petroleum Authority for the year ended 31 December 2017.

Operational Results

643. The Authority closed the 2017 financial year with a Surplus of

GH¢46,669,779 compared with a Surplus of GH¢52,515,554 in

2016. This represented a fall of 11.1% over the 2016 financial year

Surplus. The details of the performance indicators are summarised

in table 39.




Revenue

2017

GH¢

2016

GH¢

%

Change

Exchange Operating Income 61,374,855 54,523,515 12.6

Non-Exchange Operating

Income 71,408,589 60,439,136 18.1

Total Operating Income 132,783,444 114,962,651 15.5

Other Income

Finance Income 13,988,448 20,235,205 (30.9)

Foreign Exchange Gains 1,893,894 2,418,398 21.7)

Non-Exchange Operating

Income 6,665,789 4,809,614 38.6

Other Income 11,594,600 8,664,307 33.8

Total Other Income 34,142,731 36,127,524 (5.5)

Total Revenue 166,926,175 151,090,175 10.5

Expenditure

Operating Expense 56,414,464 48,428,110 16.5

Administrative Expenses 63,730,776 50,118,415 27.2

Finance cost 111,156 28,096 295.6

Total Expenditure 120,256,396 98,574,621 22.0

Surplus/Deficit 46,669,779 52,515,554 (11.1)

644. Total Revenue increased from GH¢151,090,175 in 2016 to

GH¢166,926,175 in 2017 representing a rise of 10.5%. This rise was

mainly due to a GH¢10,969,453 or 18.1% increase in Non-Exchange

Operating Income generated from Bulk Distribution Companies

License.

645. Total Expenditure for the Authority also increased by 22.0%

as it rose from GH¢98,689,191 in 2016 to GH¢120,644,832 in 2017.

This was primarily as a result of 27.5% and 16.5% increments in

Administrative and Operational Expenses respectively.

Financial Position

646. The financial position of the Authority as at 31 December,

2017 is summarised in table 40.



Table 40: Statement of financial position as at 31 December 2017

Item 2017 GH¢

2016 GH¢

% Change


Intangible Assets 10,514,856 10,537,768 (0.2)

Current Assets 221,759,452 190,337,769 16.5


Net Current Assets 188,777,104 169,148,220 11.6

Net Assets 322,848,393 276,178,612 16.9


647. Non-Current Assets went up by 28.0% from GH¢96,492,624

in 2016 to GH¢123,556,433 in 2017. This increase can be attributed

to additions/transfers in freehold & Leasehold Properties and Office

Furniture & Equipment during the year.

648. Intangible Asset reduced by 0.2% as a result of the

amortization charge for the year.

649. Current assets increased by GH¢31,421,683 or 16.5% as it

increased from GH¢190,337,769 in 2016 to GH¢221,759,452 in

2017. This was attributed mainly to respective increases of 58.0%

and 51.6% in its Cash and Cash Equivalent and Investment.

650. The value of Current Liabilities moved upwards by 55.7% as

it increased to GH¢32,982,348 in 2017 from GH¢21,189,549 in

2016. Accounts Payables and Other liabilities increased by

GH¢11,792,799 during the year and this accounted largely for the

rise.

651. Current ratio also declined from 9.0:1 in 2016 to 6.7:1 in

2017, despite this fall, the Authority’s liquidity position can still

meet its short-term obligations as and when they fall due.



MANAGEMENT ISSUES

Unreconciled Receivables balances GH¢4.6million

652. Section 52(1) of the Public Financial Management Act 2016,

Act 921 states “A Principal spending officer of a covered entity, state-

owned enterprise or a public corporation shall be responsible for the

assets of the institution under the care of the principal spending


custody and management of the assets”.

653. We were unable to confirm the existence and completeness of

the account receivable balances. For instance, third party

confirmation received from Tema oil Refinery (TOR) indicated that its

balance was GH¢6,884,099.23 receivable from NPA, however, NPA

presented a balance of GH¢4,648,450.75 receivables from TOR.

654. There is an irreconcilable difference between the outstanding

balances in the books of NPA and TOR as was verified from the

balances the two entities posted as at 31 December, 2017.

655. Receivables Balances are material to the financial statements

and so can affect the economic decisions of users taken on the basis

of the financial statements.

656. The Authority should ensure that proper reconciliations are

made between NPA and TOR and other entities making up the

receivables, and confirmation of such balances promptly made

available to us.

657. Management stated that there are adequate substantive

evidences sufficient to reduce audit risk to an acceptable low level

on the matter of receivables. Furthermore, on the specific issue of



the confirmation from TOR, TOR confirmed balance on the under-

recovery account which is not the subject of this audit. Under

recovery is owed by the Government and therefore, could not be debt

of NPA. The under-recovery debt is a subject of another audit

commissioned by the Ministry of Finance.

UNIFIED PETROLEUM FUND/NPA

Introduction

658. This report relates to the audited financial statements of

Unified Petroleum Fund for the year ended 31 December 2018.

Operational Results

659. The Fund closed the 2018 financial year with a Surplus of

GH¢74,751,042. compared with a Surplus of GH¢68,743,563.00 in

2017. This amount represented an improvement of 8.7% over the

2017 financial year. A summary of its performance indicators for

2018 are shown in table 41.

Table 41: Income statement for 2018

Income 2018 GH¢

2017 GH¢

% Change

Exchange operating Income 687,868,994 518,652,252 32.6

Finance income 18,517,529 20,381,392 (9.1)

Exchange Income 26,581 - -

Other Operating Income 3,409,508 292,628 1,065.1

Total Income 709,822,612 539,326,272 31.6

Expenditure

Goods and Services 635,071,570 470,582,709 35

Operating Surplus/Deficit 74,751,042 68,743,563 8.7

660. Total Income increased from GH¢539,326,272 in 2017 to

GH¢709,822,612 in 2018 representing a rise of 31.6%. This was



largely attributed to a 31.6 % and 1,065.1% a increases in Exchange

Operating Income and Other operating Income.

661. Total Expenditure also increased by 35.0% after it rose from

GH¢470,582,709 in 2017 to GH¢635,071,570 in 2018.The

increment in the expenditure was largely as a result of a rise in

Finance Cost and the Direct Cost of Operations for the fund.

Financial Position

662. The financial position of the Fund as at 31 December, 2018 is

summarised in table 42.


Item 2018 GH¢

2017 GH¢

% Change


Current Assets 162,723,729 147,401,308 10.4

Current Liabilities 20,118,232 68,289,526 (70.5)

Net Current Assets 142,605,497 79,111,783 80.3

Net Assets 389,427,188 314,676,143 23.8


663. Non-Current Assets rose from GH¢235,564,360 in 2017 to

GH¢246,821,691 in 2018 representing a 4.8% increase in value at

the end of the financial year. The increase was mainly due to a rise

in Investment Activities.

664. Current assets also increased by GH¢15,322,421 or 10.4%

after it rose from GH¢147,401,308 in 2017 to GH¢162,723,729 in

2018.This was largely as a result of an increase in Cash and Bank

Holdings.



665. The value of Current Liabilities also went down by 70.5% after

it decreased to GH¢20,118,232 in 2018 from GH¢68,289,526 in

2017.This was caused by significant drops in Accounts Payable and

Accruals and Provisions.

666. Current ratio also improved significantly from 2.1:1 in 2017

to 8.0:1 in 2018. The Fund’s liquidity position is good enough to




MINISTRY OF FINANCE

NATIONAL DEVELOPMENT PLANNING COMMISSION (NDPC)

Introduction

667. This report relates to the audited accounts of the National

Developmnt Planning Commission for the period 1st January 2016

to 31st December 2017.

Operational Results

668. The Commission recorded a deficit of GH¢1,882,012.44 at the

end 2017 financial year as against a deficit of GH¢887,511.53 in

2016. The details of the financial operations of the Commission are

detailed out in table 43.

Table 43: Financial Statement for 31 December 2017

Income 2017

GH¢

2016

GH¢

Variance

GH¢

%

Change

Internally Generated

Funds 6,300.00 6,300.00

GoG Subvention 6,515,233.81 4,157,475.49 2,357,758.32 56.7

Social Benefits 14,304.00 21,830.44 (7,526.44) (34.5)

Donor Fund 1,893,324.50 4,510,136.14 (2,616,811.64) (58.0)

Total Income 8,429,162.31 8,689,442.07 (260,279.76) (3.0)

Expenditure

Compensation 3,033,496.81 2,961,515.95 71,980.86 2.4

Uses of Goods and

Services 3,481,737.00 1,195,959.50 2,285,777.46 191.1

Consumption of Fixed

Capital 172,640.50 196,511.02 (23,870.52) (12.1)

Social Benefit 14,304.00 21,830.44 (7,526.44) (34.5)

Other Payments 3,608,996.44 5,201,136.65 (1,592,140.21) (30.6)

Total Expenditure 10,311,174.75 9,576,953.56 734,221.15 7.7

Surplus/(Deficit) (1,882,012.44) (887,511.49) (994,500.95) 112.1



669. Total income decreased by GH¢260,279.76 representing a 3%

reduction. This was mainly due to a 58% reduction in Donor funds

and 43.5% in Social Benefits.

670. Total expenditure increased by 7.7% from GH¢9,576,953.60

in 2016 to GH¢10,317,474.75 in 2017. The increase was as a result

of 191.1% increase in the used of Goods and Service.

Financial position 671. The Commission’s financial position as at 31 December 2017

is shown in Table 44

Table 44 Financial position as at 31 December 2017

Items 2017

GH¢

2016

GH¢

Variance

GH¢

%

Change

Non-Current Assets 2,041,321.87 1,991,672.84 49,649.03 2.5

Current Assets 177,098.18 1,926,069.61 (1,748,971.43) -90.8

Current Liabilities 474,305.00 471,052.00 3,253.00 0.7

Net Current Assets (297,206.82) 1,455,017.61 (1,752,224.43) -120.4

Net Asset 1,744,115.05 3,446,690.45 (1,702,575.40) -49.4

Liquidity ratio 0.37:1 4.09:1

Current Assets

672. Current assets comprised mainly cash and cash equivalents.

This saw a reduction of GH¢1,748,971.43, or 90.8 % and affected

Bank of Ghana and JICA accounts.

673. Non-current asset increased by 2.5% following the addition of

Building and Computers capitalised in the year.

674. The Current ratio decreased from 4.09:1 to 0.37:1. This was

caused by payments to Suppliers and Contractors outstanding.



Accumulated Fund

675. The accumulated fund of the Commission stood at

GH¢1,744,115.05.

MANAGEMENT ISSUES

Payment without Supporting Document-GH¢850,616.75

676. Regulation 28. (1) Financial Administration Regulations (FAR),

states; “a collector who is satisfied that money tendered is in order,

shall issue an original receipt to the payer, and shall deal with the

duplicate and triplicate copies as required by Departmental

Accounting Instructions”.

677. Contrary to the FAR requirement above, we noted during the

examination of payment vouchers that a total amount of

GH¢850,616.75 was spent on Consultancy fees without issuing of

official receipts to authenticate those payments to beneficiaries. This

practice violates the regulation quoted above. Details are shown in

table 45.

Table 45: Payment consultancy services without issuance of receipt

Trans Date PV Cheque Details of Activities: Consultant Debit

01/12/2016 DF/401/16 115306

25% of Consultancy

fees in respect of NIP Prof. Esi

Sutherland-Addy 5,700.00

01/12/2016 DF/402/16 115307

25% of Consultancy fees in respect of NIP

Prof Stephen Kwankye

5,700.00

01/12/2016 DF/403/16 115308


Charles Aheto-Tsegah

5,700.00

01/12/2016 DF/404/16 115309

25% of Consultancy

fees in respect of NIP Prof. Akua Britwum

5,700.00

01/12/2016 DF/405/16 115310


Dr William Baah Boateng

5,700.00

01/12/2016 DF/406/16 115311


Dr Bernardin

Senedza 5,700.00

01/12/2016 DF/407/16 115312


Dr Simon Bawakyilleno

5,700.00



01/12/2016 DF/408/16 115313


Prof. George

Owusu 5,700.00

01/12/2016 DF/409/16 115314


Dr Mavis Dako-Gyeke

5,700.00

01/12/2016 DF/410/16 115315


Dr Delali Badasu 5,700.00

01/12/2016 DF/412/16 115316


Dr. Emmanuel Owusu-Ansah

5,700.00

01/12/2016 DF/413/16 115317

25% of Consultancy

fees in respect of NIP Bettey Akuffo-

Amoabeng 5,700.00

01/12/2016 DF/415/16 115318


Dr. Ernest Appiah 2,850.00

01/12/2016 DF/416/16 115319


Dr Adobea Owusu 2,850.00

01/12/2016 115320 25% Consultancy fees

Francisca Pobee Hayford

5,700.00

01/12/2016 DF/414/16 115321


JMK Consult Ltd 5,700.00

01/11/2016 DF/373/16 115275 Consultants fees Strategic policy associates

134,356.25

09/11/2016 DF/381/16 115283

NIP Consultation to review draft report

Director of Admin 33,000.00

21/11/2016 DF/386/16 115292


Ellohim catering services

1,800.00

21/11/2016 DF/389/16 115296


Saul Restaurant and Bar

3,900.00

25/11/2016 DF/387/16 115293


Noryong-the Bar 9,600.00

29/11/2016

115294 NIP Consultation to review draft report

Pole Star Hospitality Service

6,000.00

30/11/2016 DF/398/16 115303 Consultancy fees Strategic Policy Associates

134,356.25

30/11/2016 DF/400/16 115305 Consultancy fees Dr Ben Asante 10,260.00

03/10/2016 Dir. Debit Consultancy Oxford Economics 153,067.75

04/10/2016 DF/353/16 115255 Consultancy fee Prof. Daniel K.B InKOOM

5,750.00

10/10/2016 DF/323/16 115260 Consultancy fees Charles Boakye 7,793.75

05/09/2016 DF/299/16 115202 25% Consultancy fees Dr. William Baah Boateng

5,700.00

05/09/2016 DF/301/16 115203 25% Consultancy Fees . Simon Bawakyillenuo

5,700.00

13/09/2016 DF/306/16 115207 25 % Consultancy fees Dr. Ernst Appiah 2,850.00

13/09/2016 DF/307/16 115209 25 % Consultancy fees Dr. Beradin Senadza

5,700.00

13/09/2016 DF/308/16 115210 25 % Consultancy fees Dr. Peter Claver Acquah

7,500.00

13/09/2016 DF/309/16 115211 25 % Consultancy fees Yaw Amo Sarpong 5,750.00

13/09/2016 DF/310/16 115212 25 % Consultancy fees Peter Owusu Donkor

5,750.00

13/09/2016 DF/311/16 115213 25 % Consultancy fees Dr. Isaac Danso 5,750.00



13/09/2016 DF/312/16 115214 25 % Consultancy fees Prof. F.N Hammond

5,750.00

13/09/2016 DF/313/16 115215 25 % Consultancy fees Percy Anaab Bakari

5,750.00

14/09/2016 DF/314/16 115216 Consultancy fees 20% Strategic Policy Associates

134,356.25

19/09/2016 DF/318/16 115220 25% Consultancy fees Prof. George Owusu

5,750.00

19/09/2016 DF/319/16 115221 25% Consultancy fees Greenvelle Developers ltd

29,526.50

23/09/2016 DF/329/16 115232 25% Consultancy fees JMK Consulting ltd 5,700.00

23/09/2016 DF/330/16 115233 25% Consultancy fees Betty Akuffo-Amoabeng

5,700.00

12/08/2016 DF/250/16 115149 Consultancy fee Greenville Developer ltd

28,000.00

Total 850,616.75

678. In our view, this anomaly was due to control weakness over

payments procedures exercised by the Accounts Department.

679. This control weakness could lead to wrongful payment. As a

result, we were unable to establish whether payments made were

genuine.

680. We advised that hence forth the Accountant should demand

receipts and other relevant documents and attach them to the

respective vouchers for our reviews. Furthermore, official receipts

and all relevant documentation needed to fully account for the

amount of GH¢850,616.75 should be made available to the audit

team for our verification failure of which the authorising and the

approving officers would be held liable.

681. Management responded that they will take steps to encourage

individual consultants to register their business in order to issue

receipts for payment or form of acknowledgement of receipt of

payment.

Health and safety of staff - GH¢45,898.00

682. Section 1(e) of Food and Drugs Law 1992, PNDC (305 B)

Prohibits sale of unwholesome, poisonous or adulterated food



injurious to human health. Section 7 (1) also states “any person who

sells and prepares, packages, convey, stores or displays for sale any

food under insanity condition commits an offence”.

683. We observed that the Commission spent GH¢45,898.00 on

staff who were admitted to various Medical centers for consumption

of poisonous food procured for a stakeholders meeting.

684. The situation could be attributed to absence of food policy and

inability of Management to inspect the facilities of vendors; ascertain

mode of packaging and delivery of food to the Commission.

685. The condition could expose staff to health hazards and even

lead to loss of valuable human capital of the organisation as well as

other participatory institutions. The unbudgeted medical

expenditure could have been used to carry out other programmes of

the Commission.

686. We recommended that, Management should as matter of

urgency put in place food policy to safeguard the lives of staff and

other participants of various meetings convened by the Commission.

687. Management noted our recommendation for compliance.

Claim of Shipment Allowance without supporting document-

GH¢17,422.49


states, “A head of accounts section of a department shall control the

disbursement of funds and ensure that, transactions are properly

authenticated to show that amounts are due and payable. Any order

for disbursement that does not meet the requirements is rejected”.



689. Contrary to the above stated regulation, the Commission paid

an amount of GH¢17,422.49 to Ms. Vera Baffoe who was in Korea

International Cooperation Agency (KOICA) on a two-year masters’

scholarship program as travel time and shipment allowance without

supporting documents such as bills of laden, invoice of shipment

and receipt of payment.

690. Management relied on sub-section vii (page 44) of NDPC

Condition of Service which, states “In line with public sector policy,

the NDPC shall accept responsibility for packaging and freight of

personal effect of an employee returning from study leave of not less

than one academic year’s duration”.

691. However, this section contravenes chapter 6:6.13 (ii) of the

same document referred to in the preceding paragraph which states

“NDPC shall bear the cost of transportation of luggage by sea or by

air of up to thirty kilograms (30Kg) for the officer”.

692. Failure to obtain official receipts and other documents to cover

this payment was as a result of poor supervision by the Finance

Officer over the work of the account department as well as lack of

post transaction review by the Internal Audit Unit.

693. This deviation could set a precedent for subsequent

beneficiaries of scholarship schemes to also demand such shipment

allowances without accountability.

694. We recommended that the Finance Officer should obtain

receipts to cover these payments and inform our office accordingly,

failing which we may disallow and surcharge the authorising and

paying officers with the amount involved in accordance with Section

18 of the Audit Service Act 2000, Act 584.



695. Management responded that Ms. Vera Baffoe was paid based

on approved rates guidelines issued by the Ministry of Foreign

Affairs. However, we disagreed with Management since she was not

returning after duty tour to deserve such benefit.

BANK OF GHANA

Introduction

696. This report relates to the audited accounts of the Bank of

Ghana for the year ended 31 December 2018.

Operational Results

697. The year under review ended with a deficit of GH¢793,085,000

as against deficit of GH¢1,637,532,000 in 2017, representing a

51.6% decrease. Details of the performance indicators of the Bank’s

operational results are shown in table 46.

Table 46: Statement of Profit or Loss for the year 2018

Income 2018 GH¢000

2017 GH¢000

% Change

Interest Income 2,395,132 2,392,417 0.1

Fee and Commission Income 93,352 85,415 9.3

Other Operating Income 8,286 312,011 (97.3)

Exchange Differences 614,297 - -

Dividend Income 18,675 18,281 2.2

Total Income 3,129,742 2,808,124 11.5

Expenditure

Interest Expenses 1,992,860 2,245,036 (11.2)

Administration 1,131,354 805,863 40.4

Exchange Differences - 90,032 (100.0)

Premises and Equipment Expenses 198,246 77,662 155.3

Currency Issue Expenses 153,647 230,766 (33.4)

Impairment Loss 446,720 996,297 (55.2)

Taxation - - -


Profit/(Loss) for the year (793,085) (1,637,532) (51.6)



698. Total Operating Income increased by 11.5% to GH¢

3,129,742,000 in 2018 from GH¢2,808,124,000 in 2017. The

increase was primarily due to an increase in Exchange Differences

by GH¢ 614,297,000.

699. Total Expenditure decreased by 11.8% to GH¢3,922,827,000

in 2018 from GH¢4,445,656,000 in 2017. This was mainly due to

the Bank’s change in its Accounting Policy on Impairment Losses

after adopting IFRS 9.

Financial position

The financial position of the Bank as at 31 December 2018 is

summarised in table

47.

Table 47: Financial position as at 31st December 2018

2018

GH¢000

2017

GH¢000

%

Change

Total Assets 59,121,898 55,196,551 7.1

Total Liabilities 59,102,752 53,159,631 11.2

Net Assets (Equity) 19,146 2,036,920 (99.1)

Total Liabilities/Capital 100 93


700. Total Assets increased by 7.1% from GH¢55,196,551,000 in

2017 to GH¢59,121,898,000 in 2018. This rise was primarily due to

a significant increase in Securities which went up by 11.1% from

GH¢33,712,408,000 in 2017 to GH¢37,914,622,000 in 2018.

701. Total liabilities increased by 11.2%, from GH¢53,159,631,000

in 2017 to GH¢59,102,752,000 in 2018. The increase was as a result

of increases in Bridge Facilities and Other Liabilities, which

increased by 22.3% and 56.4% respectively.

702. The liquidity position of the Bank as indicated by a current

ratio of 1.0:1 (2017:1.0:1) appeared unfavourable and depicted the



Bank’s inability to meet its short-term obligation as and when they

fall due.

GHANA INVESTMENT FUND FOR ELECTRONIC

COMMUNICATIONS (GIFEC)

Introduction

This report relates to the audited accounts of the Ghana Investment

Fund for Electronic Communications (GIFEC) for the year ended 31

December 2017.

Operational Results

703. The year in review closed with a surplus of GH¢10,835,227

representing a 182.9% increase as compared with a deficit of

GH¢13,075,909 for 2016. Details of the performance indicators of

the Fund’s operational results are shown in table 48.

Table 48: Statement of Profit or Loss for the year 2017

Income 2017

GH¢

2016

GH¢

%

Change

Contributions from Operators

41,109,349 36,367,060 13.0

Other Income 7,646,825 8,121,565 (5.8)

Total Income 48,756,174 44,488,625 9.6

Expenditure

Administrative Expenses 3,194,904 3,685,525 (13.3)

Personnel Emoluments 4,818,428 3,862,425 24.8

Universal Access to Electronic

- - -

Telecommunication (UACP) 26,830,258 49,536,988 (45.8)

Depreciation 3,077,357 479,596 541.7


Surplus/(Deficit) 10,835,227 (13,075,909) (182.9)

704. Total Income increased by 9.6% from GH¢44,488,625 in 2016

to GH¢48,756,174 in 2017. The rise was primarily due to a 13.0%



or GH¢4,742,289 rise in contributions from operators, which moved

from GH¢36,367,060 in 2016 to GH¢41,109,349 in 2017. This was

as a result of increases in the contributions from Scancom Ltd,

Millicom Ghana Ltd. and Vodafone Ghana Co Ltd by 8.0%, 111.7%

and 14.4% respectively. Details are shown in table 49.

Table 49: Increases in the contributions

2017 GH¢

2016 GH¢

% Change

Scancom Ltd. (MTN) 23,430,890 21,697,861 8.0

Airtel Ghana Ltd. 4,261,891 3,807,492 11.9

Millicom Ghana Ltd. 2,547,303 1,203,386 111.7

Vodafone Ghana Co Ltd 10,661,471 9,317,199 14.4

GLO - 150,335 -

ETG Integrated Services 160,924 136,767 17.7

705. Total Expenditure decreased by 34.1% to GH¢37,920,947 in

2017 from GH¢57,564,534 in 2016. Accounting for this mainly was

a GH¢22,706,730.00 or 45.8% decrease in Universal Access to

Electronic Telecommunication (UACP).

Financial Position

706. The financial position of the Fund as at 31 December 2017 is



2017 GH¢

2016 GH¢

% Change

Non-current Assets 41,017,476 16,503,137 148.5

Current Assets 21,756,623 12,197,286 78.4

Current Liability 3,486,549 3,167,008 10.1


707. Non-Current Assets increased by 148.5% from

GH¢16,503,137 in 2016 to GH¢41,017,476 in 2017. The Fund

capitalised the cost of the Satellite Hub, valued at GH¢ 25,869,714



into the books, resulting in a 1,427.2% or GH¢ 20,414,190.00

increase in Property, Plant and Equipment.

708. Current assets went up by 78.4% to GH¢21,756,623 in 2017

from GH¢12,197,286 in 2016. This was primarily due to a 649.6%

increase in Inventories and a 43.2% increase in Trade Receivables.

709. Current liabilities also increased by 10.1% from

GH¢3,167,008 in 2016 to GH¢3,486,549 in 2017.

710. The Fund’s liquidity position as measured by Current ratio of

6.2:1 (2016: 3.9:1) indicates that the Fund would be able to meet its

immediate financial obligations when they fall due.

MANAGEMENT ISSUES

Ministry of Finance (MOFEP) Receivables-GH¢10,900,000 711. Best management practices require that GIFEC disclose all

trade receivables in its yearend financial statements.

712. We noted during our audit that an amount of GH¢10,900,000

described as receivables in the name of Ministry of Finance stood in

the books of the Fund since July 2008.

713. After the Government sale of Ghana Telecom (GT) to Vodafone

on the 3rd of July, 2008, the then government through the Ministry

of Finance absorbed parts of Ghana Telecom’s debts. At the time of

the takeover, GT owed GIFEC 1% contribution and this amount is

yet to be settled by the Ministry of Finance.

714. The Fund would not be getting the needed funds to carry out

its mandate as stated in the Act. Communities and beneficiaries in

general are therefore deprived of these benefits. Finally, the debt



continues to lose value with the passing of time because of the time

value of money.

715. We recommended to Management of the Fund to continue to

engage the Ministry of Finance to ensure the settlement of the debt.

716. Management responded that they had through the Ministry of

Communication written to the Ministry of Finance requesting for

payment to be made to GIFEC. This is however yet to yield any

tangible results. Management regardless, continues to liaise with the

sector Ministry to pursue this to its logical conclusion.

NATIONAL INSURANCE COMMISSION

Introduction

717. This report covers the audited accounts of National Insurance

Commission for the year ended 31 December 2018.

Operational results

718. The operations for the period under review is provided in table

51.

Table 51: Income statement for the year ended 31 December 2018

Income 2018 GH¢

2017 GH¢

% Change

Levies on Life Insurers 3,939,950

3,411,275 15.5

Levies on Life Non- Insurers 9,550,050

8,004,985 19.3

Levies on Reinsurers 1,612,820

1,351,800 19.3

Levies on Brokers 958,416

831,156 15.3

Licensing/Renewal Income 1,488,100 1,143,683 30.1

Investment Income 1,776,646

2,130,791 (16.6)



Interest Received 330,121 424,141 (22.2)

Motor Contributions 4,786,391

5,064,002 (5.5)

Sale of Fire Certificates 32,625

13,500 141.7

Grant Income (2,531)

101,934 (102.5)

Deferred Grant Income 25,435

25,435 -

Rent Income /Fees-IITC 57,467 127,243 (54.8)

Mega Risk Income 4,523,253 2,715,489 66.6

Penalties 3,445,150

98,339 3,403.3

Exchange Gains 129,260

244,117 (47.1)

Training Fee _

63,400 -

Other Income 242,534

110,944 118.6

Total Income 32,895,687

25,862,234 27.2

Expenditure

Training/Workshop/Conferences 1,629,030

1,155,665 41.0

Directors Remuneration 573,876

423,946 35.4

Electricity& Water 305,435

357,181 (14.5)

General Office Expenses 2,575,173

1,397,302 84.3

Medicals 450,321 168,189 167.8

Public Education 1,081,494

71,733 1,407.7

Repair& Maintenance 523,894

295,039 77.6

Staff Cost 4,657,087

12,298,772 (62.1)

Staff Terminal Benefits 1,422,063

4,279,138 (66.8)



Stickers & Adhesive 73,823 256,379 (71.2)

Vehicle Running Cost 769,630

604,293 27.4

Rent Expenses 271,642

118,072 130.1

Telephone 174,136

94,236 84.8

Audit Fee 30,476

27,025 12.8

Depreciation 2,318,320 1,253,654 84.9

Insurance Premium 228,896

154,669 48.0

Internet Services/Subscription 169,854

71,599 137.2

Security services 110,147

94,247 16.9

Total Expenditure 27,365,297

23,121,139 18.4

Excess of Income over Expenditure 5,530,390 2,741,095 101.8

719. The Commission recorded a surplus of GH¢5,530,390 in

2018, thus registering 101.76% increase over 2017 surplus of

GH¢2,741,095. The total income increased by 27.2 % from the 2017

amount of GH¢25,862,234 to GH¢32,895,687 in 2018. The increase

was mainly due to an increase of 3,403.34 % increase in penalties

received and 66.57% increase in Mega Risk Income.

720. Total expenditure increased by GH¢4,244,158 or 18.36% from

GH¢23,121,139 in 2017 to GH¢27,365,297 in 2018. The increment

was due to 84.3% and 19.2% increase in General office expenses

and staff costs respectively.



Financial position

721. The financial position of the Commission as at 31 December



2018 GH¢

2017 GH¢

% Change


Current Assets 22,099,158 20,478,377 7.91



722. Non-current assets increased by 175.82% from

GH¢19,863,646 in 2017 to GH¢54,788,177 in 2018. The increase

was due to addition in property, plant & equipment and revaluation

of office building.

723. Current Assets rose by 7.91% to GH¢22,099,158 in 2018 from

GH¢ 20,478,377 in 2017. This comprise Accounts receivable, short

term investment bank and cash balance.


amount of GH¢4,750,467 to GH¢6,858,474 in 2018. This was

mainly due to increase in accounts payable and accruals.


from 4.3:1 in 2017 to 3.2:1 in 2018, despite the reduction, the

Commission can meet its short-term obligations when they fall due.



NATIONAL INSURANCE COMMISSION CLIENT

RESCUE FUND

Introduction

726. This report covers the audited accounts of the Client Rescue

Fund, Ghana for the year ended 31 December 2018.

Operational results


table 53.


Income 2018 GH¢

2017 GH¢

% Change

Life Insurance Company 1,082,083 830,448 30.3

Non-Life Insurance Company

1,204,778 668,076 80.3

Re-Insurance Company 65,338 -

Investment income 1,368,632 1,480,744 (7.6)

Total Income 3,720,831 2,979,268

24.9

Expenditure

Audit Fees 5,954 -

Bank Charges 1,089 2,224 (51.0)

Bond Premium Expenses 11,013 5,287 108.3

Management Fees on Investment

26,873 -

General Office Expense 31,422 -

Total Expenditure 76,351 7,511 916.5

Surplus for the year 3,644,480 2,971,757 22.6




registering a 22.6% increase over the 2017 surplus of

GH¢2,971,757. The total income increased by 24.9% from the 2017

amount of GH¢2,979,268 to GH¢3,720,831 in 2018. The increase

was mainly due to 80.3% and 30.3% increases in non-life insurance

company and life insurance company contributions from insurance

companies respectively.

729. Total Expenditure increased by GH¢68,840 or 916.5% from a

surplus of GH¢7,511 in 2017 to GH¢76,351 in 2018. The increase

was largely due the introduction of Management fees and General

office expenses of GH¢26, 876 and GH¢31,422 respectively.

Financial position




2018 GH¢

2017 GH¢

% Change

Long-Term Assets 539,823 -

Current Assets 12,235,954 9,111,631 34.3

Current Liabilities 24,982 5,287

372.5

Current Ratio 489.8:1 1,723.4:1

731. Long-Term Assets represent long term investment which is

made up of GOG 3-year Bond and EDC Balance Fund of

GH¢298,852 and GH¢241,000 respectively.


from GH¢9,111,631 in 2017. This comprise Accounts Receivable,



Short Term Investment Bank and Cash Balance. The increase was

due to a 25.3% increase in Short Term Investment.

733. Current Liabilities recorded a 372.5% increase over the 2017

amount of GH¢5,287 in 2017 to GH¢24,982 in 2018. This was due

to an increase in Accounts Payable.


from 1,723.4:1 in 2017 to 489.8:1 in 2018, this notwithstanding the

Fund can meet its short-term obligations when they fall due.

NATIONAL INSURANCE COMMISSION FIRE

MAINTENANCE FUND

Introduction

735. This report covers the audited accounts of the Fire

Maintenance Fund, Ghana for the year ended 31 December 2018.

Operational results


table 55.


Income 2018 GH¢

2017 GH¢

% Change

Contribution from Insurance Companies

609,607

568,970

7.1

Penalties income 286,170 365,620 (21.7)

Total Income 895,777 934,590 (4.2)

Expenditure

Audit Fees 6,281 4,700 33.6

Bank Charges 3,214 2,509 28.1

Bond premium Expenses 2,118 -

Support to GH. National Fire Service

150,000 127,598 17.6

Entertainment 4,383 -



General Office Expense 38,014 6,352 498.5

Management Fees on Investment

8,458 -

Public Education 48,985 5,745 752.7

Travelling and Transport 18,806 9,220 104.0

Total Expenditure 280,259 156,124 79.5

Surplus for the year 615,518 778,466 (20.9)

737. The Fund recorded a surplus of GH¢615,518 in 2018, thus

registering a 20.9% decrease over the 2017 surplus of GH¢778,466.

738. Total Income decreased by 4.2% from the 2017 amount of

GH¢934,590 to GH¢895,777 in 2018. The decrease was mainly due

to a decrease in Penalties income by 21.7% from GH¢365,620 in

2017 to GH¢286,170 in 2018.

739. Total expenditure increased by GH¢124,134 or 79.5% from

GH¢156,124 in 2017 to GH¢280,259 in 2018. The increment was

largely due to increase in general office expense and public

education.

Financial position




2018 GH¢

2017 GH¢

% Change

Current Assets 2,807,140 2,171,130 29.3

Current Liabilities 25,192.00 4,700.00 436.0





from GH¢2,171,130 in 2017. This comprise Accounts Receivable,

Short Term Investment Bank and Cash Balance. The increase was

due to increases in Fixed Deposit Investment and EDC Investment

Fund Balance.


amount of GH¢4,700 to GH¢25,192 in 2018. This was due to an

increase in Accounts Payable.


from 461.9:1 in 2017 to 111.4:1 in 2018, but the Fund can meet its

short-term obligations when they fall due.

NATIONAL INSURANCE COMMISSION MOTOR

COMPENSATION FUND

Introduction

744. This report covers the audited accounts of the Motor

Compensation Fund, Ghana for the year ended 31 December 2018.

Operational results


table 57.


Income 2018 GH¢

2017 GH¢

% Change

Contributions from

Insurance Company

2,566,059 2,529,387 1.5

Investment Income 1,396,905 1,591,486 (12.2)

Interest income 68,904 1,623 4,145.5

Total Income 4,031,868 4,122,496 (2.2)

Expenditure



Bank charges 1,513 1,842 (17.9)

Compensation Award 1,204,856 1,276,772 (5.6)

Depreciation 27,108 30,588 (11.4)

Entrainment 4,015 3,714 8.1

General Expenses 87,113 98,721 (11.8)

Audit Fees 9,261 8,225 12.6

Management Fees 59,239 35,411 67.3

Public Education 76,149 75,000 1.5

Travelling and Transport

4,089 (100.0)

Impairment of

Financial Instrument 34,160 (100.0)


Surplus for the year 2,562,614 2,553,974 0.3


registering a marginal increase of 0.3% over the 2017 surplus of

GH¢2,553,974.

747. Total Income decreased marginally by 2.2% from the 2017

amount of GH¢4,122,496 to GH¢4,031,868 in 2018. The decrease

was mainly due to 12.2% decrease in Investment Income.

748. Total expenditure decreased by GH¢99,268 or 6.3% from

GH¢1,568,522 in 2017 to GH¢1,469,254 in 2018. The decrease was

largely due to a GH¢71,916. or a 5.6 % decrease in Compensation

Award.

Financial position




2018 GH¢

2017 GH¢

% Change

Non-Current Assets 17,612 44,720 (60.6)

Current Assets 11,939,734 9,294,636 28.5

Current Liabilities 405,109 349,733 15.8




750. Non-current Assets decreased by 60.6% or GH¢27,108 in

2018 from GH¢44,720 in 2017 to GH¢17,612 in 2018. This was as

a result of depreciation charged for the year.

751. Current Assets rose by 28.5% to GH¢11,939,734 in 2018 from

GH¢9,294,636 in 2017. This comprise Accounts Receivable, Short

Term Investment Bank and Cash Balance. The rise was due to a

33.0% increase in Short Term Investment.


amount of GH¢349,733 to GH¢405,109 in 2018. This was due to an

increase in Accounts Payable.

753. The liquidity position measured in current ratio increased

from 26.6:1 in 2017 to 29.5:1 in 2018, this indicate that the Fund

can meet its short-term obligations when they fall due.

GHANA PUBLISHING COMPANY LIMITED

Introduction

754. This report covers the audited accounts of Ghana Publishing


Operational results

755. The company recorded a reduction in profit by 88.2% to

GH¢289,940 in 2016 from GH¢2,464,368 in 2015. The operations

for the period under review is provided in table 59.

Table 59: Statement of Comprehensive Income for the period ended

31 December 2016

Revenue 2016

GH¢

2015

GH¢

%

Change

Printing 2,517,655 6,870,857 (63.4)



Gazette 4,616,585 3,428,576 34.7

Publications and

Forms

1,965,456 1,432,984 37.2

Other Income 192,069 221,187 (13.2)

Total Income 9,291,765 11,953,604 (22.3)

Expenditure

Cost of sales 5,744,974 7,066,758 (18.7)

Administrative

Selling expenses

3,006,813 2,308,016 30.3

Financial &

professional cost

234,870 99,294 136.5

Rent Tax 15,168 15,168 -


Profit for the year 289,940 2,464,368 (88.2)

756. The Company recorded a Total Revenue of GH¢9,291,765 in

the year ended 31 December 2016. Total Revenue comprises revenue

from Printing, Gazette, Publications and Forms. Total Revenue

decreased by 22.3% or 2,661,839.00. The decrease was mainly due

to a decrease in Printing by 63.4% or GH¢4,353,202.

757. Total Expenditure of GH¢9,001,825 in 2016 represents a

decrease of 5.1% or GH¢487,411 compared GH¢9,489,236 in

2015.This was largely due to a decrease in Cost of Sales by 18.7%

or GH¢1,321,784.

Financial position


table 60.


2016 GH¢

2015 GH¢

% Change

Non-Current Assets 1,258,611 696,576 80.7

Current Assets 6,404,007 6,801,222 (5.8)





759. Non-current assets increased from GH¢696,576 in 2015 to

GH¢1,258,611 in 2016, the rise was as a result of additions to

Property, Plant and equipment Current Assets decreased by 5.8% to

GH¢6,404,007 in 2016 from GH¢6,801,222 in 2015. This comprise

cash and cash equivalent, inventories, trade and other receivable

and prepayments. The decrease was mainly due to reduction in

inventory by GH¢756,577 or 26.2%.

760. Current Liabilities recorded a 2.6% decrease over the 2015

amount of GH¢4,875,075 to GH¢4,749,937 in 2016. Current

liabilities comprise trade and other payables, deferred income and

bank overdraft. The reduction was mainly due to an 8.5% decrease

in Trade and other payables

761. The liquidity position measured in current ratio remain from

1.4:1 in 2015 to 1.4:1 in 2016, the company cannot meet its short-

term obligations when they fall due.

MANAGEMENT ISSUES

No software Maintenance and Support Agreement

762. Best practice requires, software management agreement, to

define the terms and conditions of the services to be rendered to the

organisation. The terms and conditions include, technical support,

software maintenance, software support upgrades, fees,

termination, customer responsibilities, vendor responsibilities etc.

During our review, we noted the following:

There was no written agreement between the vendors of the

accounting and payroll package.

The programmers of the two software namely Henry Boadu,

Noah Aguu and James Takyi were paid GH¢600 each per

month.



In addition to the monthly GH¢600, James Takyi representing

Fakaason Company Ltd was paid for all services rendered as

shown in table 61.

Table 61

PV No Date Amount GH¢

Purpose

CAL I 61 30/9/16 4,815 New chart of accounts

CAL F 17 6/7/16 5,500 Software licence fee

CAL C 23 3/3/16 3,650 Export training of staff

ADB D 2 12/4/16 4,700 Staff training on dataflow financial software

CAL G 25 26/7/16 4,150 Staff training on dataflow financial

CAL K 45 16/11/16 3,650 Data export and training staff

The dataflow software is incapable of properly exporting or

importing data to Excel seamlessly. Data so exported are in

most cases distorted.

We did not sight any training programme report from the

participants. The absence of signed agreements with venders

may result in the Company not being able to enforce the

responsibilities of the vendors. Also, in the event of disputes,

the Company has no legal point of reference in settling these

disputes.

763. We recommended that Management should sign a service level

agreement with the software vendors. Management should

investigate the monthly allowances paid in addition to the service

fees and if they are illegitimate payments. The amounts should be

recovered from the software providers failing which the amount

should be recovered from authorising and approving authorities.

764. Management should also ensure that training reports are

submitted after each training programme.



765. Management agreed to our recommendation.

Discrepancies between staff debtors’ balances and schedules

766. Section 13 of the Audit Service Act 2000 Act 584 enacts that”

The Auditor-General shall examine in such manner as he thinks

necessary the public and other government accounts and shall

ascertain whether in his opinion- (a) the accounts have been

properly kept; (c) monies have been expended for the purposes for

which they were appropriated, and the expenditures have been made

as authorised; (d) essential records are maintained, and the rules

and procedures applied are sufficient to safeguard and control

public property.

767. Our review of the staff debtors disclosed the following:

i. personal account for staff was not maintained, the list of

balances from payroll software does not provide full

complement of transactions between the company and staff.

ii. The total of schedule of balance generated by the payroll

software showed a difference of GH¢47,394.14 lower than the

total of the control account as shown table 62.

Loan Type Schedule

GH¢

Control

GH¢

Difference

GH¢

Loan1 121,020.03 - 121,020.03

Loan2 18,075.41 - 18,075.41

Salary Advance 1,966.66 6,068.47 (4,101.81)

Car Loan 3,001.59 (3,001.59)

Special Loan 179,386.21 (179,386.21)

Total 141,062.10 188,456.27 (47,394.17)



768. There is no staff assigned the responsibility of managing the

staff debtors. This could lead to loss of revenue to the Company.

769. Management should ensure the differences are reconciled and

recovered from the identified staff of the company.

770. Management explained that they will investigate and ensure

that systems are in place to safeguard and protect the resources of

the company.

Reconciliation of Bank Statements

771. Regulation 2(g) of the Financial Administration Regulations,

2004 (L. I1802) requires the Head of Department to manage and

reconcile the bank account authorised for the department by the

Controller and Accountant General.

772. The cash at bank as per the ledger of the company must be

agreed to the balances at the bank at the end of the period. Also

bank accounts need to be monitored through regular monthly

reconciliation of bank account and prompt follow-up by reconciling

it.

773. We noted that the monthly bank reconciliations for the various

banks were not done timely. We further noted differences totalling

GH¢258,099.58 between the amounts reported in the reconciliation

statements and the ledger balances of 3 bank accounts. Also, Bank

Reconciliation Statements were not prepared for 9 bank accounts.

Details are shown in tables 63 & 64.



Table 63: Unreconciled Book Balances Per Ledger and Reconciliation

Statement

Bank Account Code

Ledger Balance

GH¢

Reconciliation Balance

GH¢

Difference GH¢

GCB Ministries Account II

43002 38,481.6 38,681.6 200.00

Cal Bank 43004 (11,644.93) (15,844.93) (4,200.00)

ADB Bank Limited

43008 202,041.18 460,145.76 258,104.58

Royal Bank Limited

43010 10,474.54 10,469.54 (5.00)

Total 258,099.5

Table 64: Details of Bank Accounts which Reconciliation Statements

were not Prepared for

Number

Bank Account Code

Ledger Balance GH¢

1 GCB Ministries Account I 43001 (1,828.81)

2 Stand chart Foreign Account 43003 (3,680.74)

3 Barclays Bank AV. CENT.AR. 43005 (1,104.00)

4 Cal Bank (Call Account) 43006 (9,025.53)

5 Stand chart Bank High Street 43007 (483.12)

6 GCB Ministries Deposit 43012 (437.18)

7 ADB Foreign Account (EUROS) 43019 1,118.77

8 CAL Bank Sweep 43021 (380.22)

9 ADB Call Account 43009 64.99

774. Poor supervision by the head of accounts and lack of a

schedule officer to monitor and reconcile accounts timely accounted

for this infraction. Errors or fraud in those various banks may go

unnoticed and the company may lose funds.



775. We recommended to Management to put in controls to ensure

that monthly bank reconciliation statements are prepared on time.

Management should investigate and rectify differences in ledger

balances and reconciliations statements.

776. Management responded that bank reconciliation will be

prepared and reviewed on time by responsible officers.

777. With the exception of ADB foreign account and CAL bank

sweep, all other banks have become dormant for years.

778. Effort to obtain bank statements in the past has proved futile.

ADB foreign account bank statement will be requested but that of

CAL bank sweep was to determine the movement of cash from our

CAL Bank account in the year 2016 for sweep debit and sweep credit

purposes.

Procurement from Non-VAT Registered Suppliers

779. Regulation183(4) of the Financial Administration Regulations

2004, (LI 1802) states that “A department shall procure government

stores from only value added tax(vat) registered persons or entities

and any departments that require exemptions for any specific case

shall apply to the minister with the necessary justifications”

780. Management procured good and services totalling

GH¢273,755.00 from non-VAT registered persons. We did not sight

any VAT invoice attached to the payment vouchers nor exemptions

in any specific case for the following payments for goods and services

procured. Details are shown in table 65.



Table 65: Procurement from Non-VAT Registered Suppliers

Date Ref.No. Description Payee Cheque

No.

Amount

GH¢

13/04/16 CAL D 42 Carbonless paper boron Co. Ltd 005699

12,375.00

4/7/2016 CAL G 1 carbonated paper boron Co. Ltd 000573 4,480.00

1/2/2016 CAL B 4 ortho film Express

Merch

005576

47,600.00

31/03/16 CAL C 78 speed master plate Express

Merch

005655

16,800.00

1/4/2016 GCB D 1 cylinder blankets Express

Merch

900631

38,950.00

22/06/16 CAL F 59 polyfibrons Palrosa F.B

Ent

005454

24,750.00

3/6/2016 CAL F 14 ortho film Express Merch

005808 33,000.00

28/08/16 CAL G 80 Speed master plates

&laser films

Express

Merch

005956

24,400.00

25/11/16 CAL H 62 speed master plates

&laser films

Express

Merch

006024

35,600.00

7/11/2016 CAL K 2 speed master plates

& sord plates

Express

Merch

006203

35,800.00

Total 273,755.00

781. The company refused to adhere to procurement procedures

and financial discipline. This breach has denied government of tax

revenue.

782. Management was advised to strictly comply with the

regulations, by procuring from VAT registered persons or entities.

783. Management agreed to our recommendation to procure from

VAT registered persons.



Sale of Goods and Services without charging VAT

784. Regulation 19(1) of the Value Added Tax Regulations,1998

(L.I.1646) requires a taxable person to issue to the customer a tax

invoice on supply of taxable goods on services to a customer.

785. We noted that the company sold goods and provided services

to the under listed companies without charging VAT. Details are

shown in table 66.

Table 66: Sale of Goods and Services without charging VAT

Date Ref. No Name of Customer

Amount GH¢

Comment

2/2/2016 B.0028436 Pharmacy Council 46,400.00 No VAT Invoice issued

11/5/2016 B.0028962 Ghana Law School 3,995.00 No VAT Invoice issued

29/12/2016 B.0008181 Ministry of Finance 1,621.50 No VAT Invoice issued

22/11/2016 B.0028888 National pension Regulators

5,000.00 No VAT Invoice issued

18/1/2016 6642443 GWCL 34,770.00 No VAT Invoice issued

Total 91,786.50

786. Officers responsible were unaware of the operations of the VAT

regulations and there was no Accounting manual. These could lead

to revenue leakages and losses to the state.

787. We recommended to Management to ensure that the VAT laws

are fully complied with.

788. Management agreed to our recommendation to comply with

the VAT laws.



Weak Controls on Value Books

789. Regulation 214 (1 and 2) of the Financial Administration

Regulations 2004, (LI 1802) states that “A head of department shall

ensure the effective and efficient control of stocks of value books.

Value books stocks controls procedures shall be included in the

Departmental Accounting Instructions”

790. We observed that the company did not maintain a value book

register to monitor all receipts and issues of value books in the

company. We further noted that the receipts books were not issued

chronologically. Analysis of daily cash receipts showed that receipts

were not issued sequentially. Examples has been explaining in table

67

Date Receipt No. Range

1/12/16 -05/12/16 00377942 -0037950

5/12/16-19/12/16 0008001 -0008069

19/12/16 8151

20/12/16-21/12/16 0008070-0008099

21/12/16-30/12/16 0008151 To 0008193

791. Negligence of Management to ensure a receipt book register is

maintained has resulted in the non-sequential issues of the value

books.

792. Stolen or missing value books may go unnoticed. This may

subsequently lead to loss of revenue to the company.

793. We advised Management to strengthen internal controls by

ensuring that a value book register is maintain and the value books

are issue chronologically.

Management indicated that value book register will be kept and

value books will be issued chronologically.



G-PAK LIMITED

Introduction

794. This report relates to the audited accounts of the G-Pak

Limited for the year ended 31 December, 2018.

Operational Results

795. The Company closed the year with a Net profit after interest

and tax of GH¢1,461,795 compared to GH¢1,339,578 gained in

2017. This represents a 9.1% rise over the previous year’s

performance. Summary of its performance indicators for 2018 are

shown in the table 68.


Income 2018

GH¢

2017

GH¢

% Change

Revenue 12,837,94

0 12,495,52

6 2.7

Cost of Sales 9,059,958 8,419,039 7.6

Gross Profit 3,777,982 4,076,487 (7.3)

General, Selling & Administrative Expenses

2,107,571 2,196,510 (4.0)

Net Operating Profit 1,670,411 1,879,977 (11.1)

Other Income 245,504 4,210 5,731.4

Net Operating Profit before interest and Tax

1,915,915 1,884,187 1.7

Finance charges 0 8,000 (100.0)

Taxation 454,120 536,609 (15.4)

Net Operating Profit after interest and Tax

1,461,795 1,339,578 9.1

796. Revenue went up slightly by 2.7% in 2018, as it moved from

GH¢12,495,526 to GH¢12,837,940. This is attributable to a rise of

26.8% in sale of Labels, 72.6% in Brochure and Others and also a

30.4% fall in sales from Commercial Books.



797. Cost of sales also went up by 7.6% from GH¢8,419,039 in

2017 to GH¢9,059,958 in 2018. Factory overhead and Prime costs

increased by GH¢1,164,648 (100.4%) and GH¢285,680 (6%)

respectively to account for the increase.

798. Gross profit reduced to 29.0% in 2018 instead of 33.0% of

revenue in 2017.

General, Selling & Administrative expenses however, decreased

marginally by 4%. The decrease was primarily due to reduction in

Bids and tender documentation expenses which fell by 60.2% or

GH¢100,182.

Financial Position



Table 69 Statement of Financial Position as at 31 December, 2018

2018 GH¢

2017 GH¢

% Change

Non- Current Assets 2,757,063 2,547,891 8.2

Current Assets 9,026,506 9,046,946 (0.2)

Non- Current Liabilities 317,179 289,469 9.6


Current Ratio 2 :1 1.6 :1

800. Non-current assets increased by 8.2% from GH¢2,547,891 in

2017 to GH¢2,757,063 in 2018. Additions to Property, Plant and

Equipment in the course of the year accounted for the rise.

801. Current assets however, went down by 0.2% during the year

from GH¢9,046,946 in 2017 to GH¢9,026,506. Inventory reduced by

34.2% but all other elements increased to cause this insignificant

change



802. Non- current liabilities which is the movement on the deferred

income tax account increased by 9.6%.

803. Current liabilities decreased by 22.4% from GH¢5,807,055 in

2017 to GH¢4,506,282 in 2018. A GH¢1,379,719 or 33.3%

reduction in its Trade Payables is the primary reason for this drop.

804. The Company continued to maintain a strong current ratio of

2:1, meaning that its can repay its short term debts twice in the

course of the year when due.

MANAGEMENT ISSUES

Redemption of Investment-GH¢427,740.25

Section 91(1) of Public Financial Management Act 2016, Act 921

states “The Board of Directors of a public corporation governed by

this Act shall ensure the efficient management of the financial

resources of the public corporation including the collection and

receipt of moneys due to that public corporation.”

805. The Board of Directors of the Company authorised

Management during their seventy-fifth and seventy-sixth meetings

dated 21 February and 23 May 2018 respectively to invest an

amount of GH¢1,000,000.

806. Management invested the sum on 28 June, 2018, which was

expected to mature on 27 December, 2018 at a rate of 25.0% per

annum with Utrak Savings and Loans Limited.

807. Unfortunately, upon maturity, G-PAK was able to redeem only

GH¢700,000 out of the principal plus interest of GH¢1,127,740.25

which had accumulated.

808. Utrak Savings and Loans Limited per a letter dated 5 February

2019 requested for a payment plan to settle the outstanding balance



within three (3) months. However, as at the time of the audit Utrak

had not fulfilled this plan.

809. The liquidity of G-PAK was affected, and as a result was not

able to acquire the needed plants and machinery to boost

production.

810. We recommended to Management to pursue Utrak Savings

and Loans Limited to recover all the outstanding balances.

811. In response, Management stated that frantic efforts to retrieve

the outstanding balance would be made. Secondly an amount of

GH¢112,000 had been recovered and a new payment schedule had

been agreed. And lastly a deed of assignment to secure the balance

with the Consolidated Bank of Ghana had also been put in place.

SECURITIES AND EXCHANGE COMMISSION

Introduction

812. This report relates to the audited accounts of the Securities

and Exchange Commission (SEC) for the year ended 31 December,

2018.

Operational Results

813. The Commission recorded a deficit of GH¢441,280 which

represented a 105.5% reduction in its surplus of GH¢8,077,974

realised in 2017. A summary of its performance indicators for 2018



Income

2018

GH¢

2017

GH¢

%

Change

Operating Revenue 13,592,194 19,012,777.00 (28.5)

Other revenue 356,654 20,193.00 1,666.2

Investment income 3,874,428 2,778,667 39.4

Total Income 17,823,276 21,811,637 (18.3)



Expenditure

Compensation of

Employees 11,159,714 8,780,176 27.1

Goods and Services 7,104,842 4,953,487 43.4


Surplus (441,280) 8,077,974 (105.5)

814. Total Income for the period stood at GH¢17,823,276 compared

to GH¢21,811,637 recorded in 2017, this represented a fall of 18.3%

or GH¢3,988,361. The reduction resulted from a 28.5% drop in

Operating Revenue from Market Levy and Depository Fee. This was

due to a decrease in stock exchange trading activities and the

issuance of bonds by the government.

815. Total Expenditure however increased significantly by 33.0%

from GH¢13,733,663 in 2017 to GH¢18,264,556 in 2018. A 27.1%

and 43.4% increases in Compensation of Employees and Good and

services respectively, accounted for the rise in expenditure.

Financial Position




2018

GH¢

2017

GH¢

%

Change


Current Assets 7,397,232 25,348,288 (70.8)


Net Asset 24,555,003 26,017,940 (5.6)

Current Ratio 6.3: 1 18.2:1

817. Non-Current Assets increased significantly by 787.8% from

GH¢2,065,851 in 2017 to GH¢18,340,966 in 2018. This was due to



a movement of about GH¢15.8m in Short Term Investment into Long

Term Investment.

818. Current assets decreased by 70.8% from GH¢25,348,288 in

2017 to GH¢7,397,232 in 2018 as a result of the movement in short

term investment.

819. The Commission’s Current Liabilities also dropped by 15.3%

from GH¢1,396,199 in 2017 to GH¢1,183,195 to 2018. The

Commission reduced its Bank Overdraft and Other Liabilities which

led to the fall in its Short-Term Debts.

820. The Current Ratio is a liquidity ratio that measures the

Commission’s ability to pay its short-term debts as it falls due. The

ratio of 6.3:1 (2017:18.2:1) shows that the Commission is liquid.

NATIONAL LOTTERIES AUTHORITY

Introduction


Lotteries Authority for the period 1 January 2016 to 31 December

2017.

Operational Results

822. The Authority recorded a surplus of GH¢39,114,395 in 2017,

which is an increase of 71.0% over the 2016 figure of

GH¢22,892,034. The performance indicators for 2017 are shown in

table 72.



Table72: Statement of Financial Performance 2017

823. Total Income for the period saw a marginal increase of 0.7%

as it moved to GH¢408,148,965 as against GH¢405,161,292 earned

in 2016. The driver of this increase is from its main source of income;

Lotto intake which went up by 1% or GH¢ 3,960,769.

824. Total Expenditure of the Authority however reduced by 3.5%

from GH¢382,269,258 in 2016 to GH¢369,034,570. This was as a

result of a 92.6% or GH¢10,063,721 reduction in Conference &

Seminar/Training & Development Cost.

Financial Position



Table 73: Statement of Financial Position as at 31 December 2017

2017

GH¢

2016

GH¢

%

Change

Non- Current Assets 22,425,970 27,535,370 (18.6)

Current Assets 31,807,721 27,787,215 14.5

Non- Current Liabilities - 5,992,751 (100.0)

Income 2017 GH¢

2016 GH¢

% Change

Lotto Intake 402,078,988 399,009,834 0.8

Miscellaneous income 6,069,977 6,151,458 (1.3)

Total income 408,148,965 405,161,292 0.7

Expenditure

Direct Operating Expenses 323,482,325 320,206,734 1.0

Personnel Costs 24,033,972 35,153,027 (31.6)

Selling & Dist. Administrative

and General Expenses

21,424,810

26,758,565 (19.9)

Finance Cost 93,463 150,932 (38.1)


Surplus 39,114,395 22,892,034 71.0




Net Asset 30,516,980 27,395,336 11.4


826. Non-current assets decreased by 18.6% from GH¢27,535,370

in 2016 to GH¢22,425,970 in 2017. This was as a result of disposals

during the year Current asset of the Authority went up by 14.5%

from GH¢27,787,215 in 2016 to GH¢31,807,721 in 2017. A 37.4%

rise in its Cash and Bank Balances generally contributed to this

increment.

827. Current Liabilities also reduced by 15.1% as it moved to

GH¢23,716,711 in 2017 from GH¢27,927,249 recorded in the

previous period. Sundry creditors of the Authority dropped by a 74%

to cause this change.

828. The Authority recorded a current ratio of 1.3:1 (2016- 1.0:1)

showing the Authority can barely meet its short-term debt as and

when they fall due.

MANAGEMENT ISSUES

Non-Maintenance of Building

829. Our visit to the Authority’s Bungalows during the audit

disclosed a Six-unit Residential block owned by the Authority needs

urgent renovation as the buildings had serious cracked walls,

damaged windows, leaking roof and worn out electrical cables.

830. We also observed that rented accommodation occupied by

Senior Staff of the Authority was not in good shape. The appearance

of the structure suggested that the building needed to be renovated.

831. Lack of proper maintenance had led to these lapses.



832. Non-attending to the flats and bungalows without regular

maintenance will cause further deterioration that may result in the

Authority spending more to refurbish it.

833. We recommended to Management to ensure regular

maintenance of its Bungalows to avoid further deterioration.

834. Management responded that they have not been able to

renovate their Bungalows due to financial constraints. They added

that the Authority had planned to renovate the Bungalows in

phases.

Fixed Asset Register not kept at the Regions 835. Regulation 2 (n) of Financial Administration Regulation FAR,

2004 states that ‘the head of government department shall complete

and maintain assets register of the department as determined by the

Controller and Accountant General’.

836. During the audit, the team visited some selected Regions of

the Authority and we noted that, Asset Registers were not kept at

the Regions/Districts. Though an Asset Register had been prepared

and kept at the Head Office, copies had not been sent to the various

Regions for proper monitoring and control.

837. Management is not exercising proper control over keeping

Fixed Assets register at the Regions.

838. Movement of Asset cannot effectively be monitored. It can also

lead to misappropriation of asset on the part of those who have

custody of these assets.

839. We recommended to Management to ensure that Fixed Asset

Register are kept and regularly updated in all the Regions. This will

ensure that assets are safeguarded and are well maintained.



840. Management accepted our recommendation.

Unsigned Contract Agreements-GH¢600,000 841. The Authority conducts promotions on behalf of entities such

as MTN, Vodafone, Fidelity Bank and others on its Caritas Platform

based on agreements signed.

842. We noted that four (4) of these contracts which renewal was

initiated during the year had not been signed by Management of the

other contracting parties. Meanwhile, the Authority continued to

carry out promotions based on the old contract on their behalf.

Details are as shown in table 74.

Table 74: Details of Unsigned Contract Agreements

S/N Name of

organisation

Start Date End Date Expected

Revenue

(GH¢)

1 Fidelity Bank 08/06/2017 06/01/2018 220,000

2 SG-SSB 03/04/2017 31/02/2018 170,000

3 FBN Bank 01/09/2017 28/02/2018 100,000

4 Upstream Company

Limited

Not concluded 110,000

Total 600,000

843. Revenue may be lost if the entities fail to honour their

obligations in respect of the work done by the Authority. Also, the

Authority may have difficulties in seeking redress at the Court

without signed contracts.

844. We recommended to Management to immediately take steps

to sign the contracts with these institutions.

845. According to Management, it is reviewing the Terms of

Reference of the platform to align same with the vision of the Board.

The way forward had been communicated to Management and this

would pave the way for the execution of the outstanding contracts.



Pending legal issues

846. Our review of NLA’s legal portfolio showed that there are nine

(9) major suits pending at various Law Courts with an estimated

claim of GH¢160,390,000. Details are as shown in table. 75.

Table 75: Details of pending legal cases

S/

N

Suit No. Title of Case Court Estimated

Cost

1 CM/BDC/0360/2016

LOTS Service vs. National Lottery Authority

High Court, Accra commercial division

56,000,000

2 IL/0012/2017 Pius Akelinsinye & ORS

vs. National Lottery

Authority

High Court, Accra

commercial division

4,000,000

3 C11/78/2014 James Kofi Mensah vs.

National Lottery

Authority

Court of Appeal,

Cape Coast

3,000,000

4 C2/131/2017 Solomon K. Borkey vs. National Lottery

Authority & Janet Ossom

Circuit Court Accra 20,000

5 HRC 57/11 Saviour Atsu Gakpey vs.

National Lottery

Authority

Court of Appeal

Accra

65,000

6 HR/0079/2017 The Republic vs. National

Lottery Authority Exoparte: Guiness

Ghana Breweries Limited

High Court, Accra

Human right Division

5,000

7 INDL/69/17 Eugene Agben vs.

National Lottery

Authority

High court, Accra

Industrial / labour

Division

300,000

8 CM/BCD/0578

/20

Merlin Gaming Ghana vs.

National Lottery

Authority

High Court, Accra

commercial division

87,000,000

9 HR/0081/2017 Kojo Graham vs. Kennedy Agyepong, Kofi

Osei Ameyaw &

Multimedia Group

High Court, Accra 10,000,000

Total 160,390,000

847. In the event that the Authority losses all these legal cases, the

financial out lay would impact heavily on its cash flows and the

Authority may grapple with insolvency issues.



848. We urged Management to implore all effort to mitigate the

effects of the present suits and also endeavour to prevent such cases

in future.

Increasing Post of Sales Terminal (POST) debtors GH¢168,482

849. The Authority’s policy on POST debtors requires that full

payments should be made within six (6) months from the date of

invoice.

850. Alternatively, the LMC/Retailer could pay by deductions to the

Authority over six (6) months, however, the immediate twelve

months’ commission reports shall be analysed to assess the

capability of the debtor.

851. During our examination of POST debtors, we noted from our

analysis that the value continued to increase from year to year. For

instance, total amount received for payment of POST debtors in 2017

was GH¢12,856, which included GH¢9,389 paid for POST machines

lost during the year. The balance as at 31 December 2016 was

GH¢121,791, only GH¢3,467, representing 3% was received. Details

are as shown in table 76.

Table 76: POST debtors’ balances

Description 2017 GH¢

2016 GH¢

2015 GH¢

2014 GH¢

POST Debtors 166,319 121,791 61,578 20,141

Spare Parts - POST 2,163 1,585 1,166 -

Total 168,482 123,376 62,744 20,141

852. Poor management of the POST accounted for the slow

movement in these balances.



853. The Authority’s liquidity position could be affected with an

increase in bad debts.

854. We urged Management to strictly adhere to the policy on POST

debtors and ensure that all lost machines are paid for within the

stipulated time in accordance with this policy.

855. Management accepted our recommendation and further

mentioned that key stakeholders would be sensitised and educated

to facilitate a successful implementation of the policy. Moreover,

POSTs are fully insured and thus the Authority is covered against

these losses.

Deplorable state of staff bungalows

856. Section 52 (1) of the Public Financial Management (PFM) Act,

Act 921 states that a Principal Spending Officer of a covered entity,





857. Subsection (2) the PFM Act 2016 further states that, a control

system specified in subsection (1) shall be capable of ensuring that

(a) preventive mechanisms are in place to eliminate theft, loss,

wastage and misuse.

858. During our physical inspection of the staff residential

bungalows, we observed that the rented bungalows were generally

in good conditions compared to the ones owed by the Authority

which are in very poor conditions and some may be described as

death traps and not fit for human habitation.



859. The culture of poor maintenance over the years solely

accounted for this state of the buildings. Moreover, the rental

charges to the staff that live in these building are very low.

860. There is a high risk of staff losing their lives and possessions

in the event of collapse of the structures. Huge sums of monies

would have to be invested to make these buildings habitable.

861. We recommended to Management to undertake the following

measures.

Develop a strategy to ensure a systematic approach of

renovating the bungalows

Management could partner with Estate Management

Companies to reduce its financial burden

And lastly, the rent paid by the staff should be reviewed

appropriately to finance the renovation of the buildings.

862. Management remarked that an inventory of all the deplorable

structures had been undertaken across the Regional and District

offices. Subsequently, measures are being put in place to engage a

Real Estate Company to renovate all the buildings in order to provide

safe and conducive accommodation for the staff.



MINISTRY OF HEALTH

NATIONAL HEALTH INSURANCE AUTHORITY

MANAGEMENT ISSUES

Fomena

Payments not accounted for-GH¢5,136.00


2004 (L.I1802) states “a person entrusted with custodial duties for

public and trust moneys shall protect public and trust moneys

against unlawful diversion from their proper purposes and against

accidental loss and locate such moneys so as to facilitate the efficient

and economical discharge of public financial business.’’

864. Contrary to the above, our review of payment vouchers (PVs)

of the NHIA, Fomena Office disclosed that a total of GH¢5,136.00

being payments for goods and services via 13 PVs were not

accounted for. Expenditure authentication documents such as

receipts, invoices, claims statements etc. to acquit the expenses were

not provided and there was no evidence of occurrence of activities in

those instances. Details are furnished in table 77.

Table 77: Payments not accounted for

No. Date Cheq No.

Details Payee Amount GH¢

1 05/01/18 579794 Being payment of

Scheme vehicle

servicing for office

use.

Yawanok

Motors

900.00


donation for official duty.

District

Accountant

250.00


publicity for official

duty.

District

Accountant

450.00



4 23/02/18 579827 Being payment of donation retired for

official duty.

District Accountant

400.00

5 14/03/19 ? Being cost of

donations paid by the

District office as per

attached.

District

Manager

500.00

6 04/04/18 579853 Being payment of petty excess retired

for office use.

Nathaniel Yeboah

304.00


allowance for extra

official duty for a

particular week.

District

Accountant

300.00

8 02/05/18 579868 Being payment of allowance paid to

officers for special

official duty.

District Accountant

300.00


transportation for

official duty.

District

Accountant

240.00


petty cash re-imbursement in May

2018.

District

Accountant

492.00

11 06/11/18 579939 Being printing cost

incurred by the

District Office.

District

Manager.

1,000.00

Total 5,136.00

865. Lack of due diligence and negligence of duty by the District

Manager coupled with the Accountant’s indifferent attitude towards

ensuring that payment was duly certified as due and payable before

authorisation, approval and subsequent payment as well as lack of

adequate supervision and control over the activities of the

accounting officers were the causes of the anomaly.

866. This has the tendency of making payments for no expenditure

incurred thus resulting in misappropriation of scarce funds of the

Authority



867. We recommended that the Accountant should as a matter of

urgency account for the said expenditures without fail by producing

all the relevant expenditure authentication documents for our audit

perusal. Failing this the expenditures should be refunded by the

approval and authorising officers, the District Manager Mr. Annan-

Turkson Thomas and Accountant-Patrick Appiah Kodua.

Unsupported payments -GHȼ7,575.00

868. Section 96 (1c) of the Public Financial Management Act 2016,

Act 921 espouses that a person, acting in an office or employment

connected with the procurement or control of Government stores, or

the collection, management or disbursement of amounts in respect

of a public fund or a public trust who is responsible for any improper

payment of public funds or payment of money that is not duly

verified in line with existing procedures, commits an offence and is

liable on summary conviction to a term of imprisonment of not less

than six months and not more than five years or to a fine of not less

than one hundred penalty units and not more than two thousand,

five hundred penalty units or to both.

869. We noted that payments were made to members of staff of the

Authority as claims of travel and transport (T&T) and other

allowances without any evidence of activities undertaken. 9 payment

vouchers reviewed with a total value of GH¢7,575.00 as shown in

table 78 were not properly acquitted.

Table 78: Unsupported payments

No. Date Cheq No.

Details Payee Amount GH¢


publicity for official

duty.

District

Accountant

450.00


transportation for

official duty.

District

Manager

200.00



3 04/06/18 579882 Being payment of allowance expenses.

District Accountant

750.00


other expenses

incurred.

District

Manager

1,575.00


transportation

District

Accountant

500.00

6 23/08/18 579927 Being cost of sundry

general expenses incurred by the

district office.

District

Accountant

600.00

7 06/11/18 579941 Being cost of

telephone bill of the

district office.

District

Manager

1,000.00

8 06/11/18 579939 Being printing cost

incurred by the District Ofice.

District

Manager

1,000.00

9 12/12/18 579959 Being cost of fuel

purchased by the

District Office.

District

Manager

1,500.00

Total 7,575.00

870. Poor expenditure control and Management’s failure to ensure

due diligence before making payments is the cause of the situation

which led to the Authority losing the amount of GH¢7,575.00 for no

benefit gained and thus resulting in a financial loss to the Authority.

871. We therefore recommended that the expense of GH¢7,575.00

should be refunded by the Accountant – Patrick Appiah Kodua and

the Manager Mr. Annan-Turkson Thomas.

Payment Vouchers not presented for audit-GH¢2,916.00 872. Regulation 1 of Financial Administration Regulations, 2004 (LI

1802) states that any public officer who is responsible for the

conduct of financial business on behalf of the government of Ghana,

shall keep proper records of all transactions and shall produce

records of all transactions for inspection when called upon to do so

by the Minister, the Auditor-General, the Controller and

Accountant- General or any officers authorised by them.



873. We noted that six (6) payment vouchers with a face value of

GH¢2,916.00 were processed and paid for during the period under

review. However, Management of the NHIA, Fomena, could not

produce the said vouchers for audit inspection. Details are

furnished in table 79.

Table 79: Payment vouchers not presented for audit

No. Date Payee Amount

GH¢

Remark

1 23/02/18 District Manager 750.00 A PV with a face

value of

GH¢750.00 was

double captured.

2 23/02/18 District Manager 750.00

3 23/02/18 District Manager 70.00

4 13/05/18 Patrict Appiah Koduah

400.00

5 15/06/18 District Accountant 758.00

6 04/04/18 District Accountant 188.00

Total 2,916.00

874. Poor record keeping on the part of the Accountant coupled

with his negligence to ensure that payment vouchers were

safeguarded and properly handled to be presented for audit

inspection and other reviews when called upon to do so was the

cause of the anomaly.

875. We could therefore not confirm the authenticity of the

expenditures for which the 30 PVs allegedly paid for. Again, we could

not confirm the entries in the cash books and hence the associated

payments. The absence of underlying records for expenditure could

lead to loss of funds to the Authority as such a practice could be

used as pretest to misappropriate scarce resources of the Authority.

876. We therefore recommended that the six (6) payment vouchers

should be available for audit scrutiny, failure of which the amount

of GH¢2,916.00 should be refunded by the District Manager Mr.



Annan, Turkson Thomas and the Accountant, Patrick Appiah Kodua

jointly.

Obuasi

Unaccounted store items-GH¢23,357.96

877. Section 52 (7) (a) of the Public Financial Management Act 2016

(Act 921) states that the Principal Spending Officer is discharged of

accountability of government stores where the stores have been

consumed in the course of public business and records are available

to show that the stores have been consumed.

878. We noted that an amount of GH¢23,357.96 was used to

purchase different store items which were not receipted into the

Authority’s store and taken on ledger. Details are provided in table

80.

Table 80: Unaccounted store items

2017 Date PV.

No.

CHQ.

No.

Detail Payee Amount

GHȼ 05/10/17 05/10/17 512392 Payment of material for

servicing Air condition James Ankomahene

935.00

05/10/17 05/10/17 512392 Payment for Office stationaries

J.A Adjei Ent.

467.00

27/11/17 28/11/17 512439 Payment of drinking water

Lawvee Gen. Supply

366.66

Sub-Total 1,768.66

2018

Date PV No Details Payee Amount 17/01/18 13/01/18 Payment of refill and

servicing of fire

extinguisher.

Fire Prevention and Protection

Ent.

570.00

18/01/18 15/01/18 Payment of refreshment

for holding staff meeting

Nafio’s Corner 280.00



04/02/18 02/02/18 Payment of fund of fetching water outside

the district office.

Dorcas Mensah 200.00


for holding management

meeting

Paradise

restaurant.

120.00

26/02/18 25/02/18 Payment of dining table

for office use.

Jimaf Ent. 120.00

01/03/18 01/03/18 Payment of repairs and maintenance for kitchen

sink.

Dorijoe ventures. 184.00

01/03/18 02/03/18 Payment for network

cable

Atlantic

computers

772.50



meeting (M&E)

JFC Restaurant 120.00

22/03/18 15/03/18 Payment of refreshment for holding staff meeting


05/04/18 01/04/18 Payment of citation

frames for 3 best

workers award.

Lord Kay Business

Center

240.00

17/04/18 11/04/18 Payment for stationery

for office use.

J. A. Adjei Ent. 576.61

18/04/18 19/04/18 Payment of supply of

drinking water for the office.

Lawvee General

Supply

385.00






Ema Wani Nha

Ent.

397.00



Nafio’s Corner 372.00



meeting twice.





04/07/18 02/07/18 Payment of fuel coupons

for office use.

Ghana Oil Co. Ltd 3,000.00



meeting twice.

Joruli Co. Ltd 301.55






03/08/18 06/08/18 Payment of repairs and maintenance on air

condition.

All Temperature Ventures.

904.20

27/08/18 18/08/18 Supply of food for staff

who worked beyond the

normal working hours.


13/09/18 07/09/18 Payment to recharge fire

extinguishers.

Ghana National

Fire Service.

360.00

24/09/18 11/09/18 Payment of supply of drinking water for the

office.

Lawvee General Supply

378.00

24/09/18 16/09/18 Payment of renewal of

fire certificate.

Ghana National

Fire Service

1,450.00







28/11/18 18/11/18 Payment of two Nokia Mobile phones for office

use.

P.R.O 200.00



meeting

Allterrain Services

Gh. Ltd.

222.50




06/12/18 14/12/18 Payment of fuel coupons for office use.




Nafisa Baani 210.00



meeting


18/12/18 28/12/18 Payment of fuel coupons

for office use.


20/12/18 30/12/18 Payment of refreshment for staff

Accountant 400.00

Total 23,357.96

Summary

Year Value of Stores

2017 1,768.66

2018 21,589.30

23,357.96



879. Dereliction to duty on the part of the Management to ensure

that items bought are receipted and taken on ledger charge by the

unit’s Storekeeper caused the infraction which has the tendency of

causing financial loss to the Authority through the payment for

items not supplied or items short supplied or inferior quality items

supplied.

880. We recommended that Management should account for the

stores items in their ledgers or the amount of GH¢23,357.96 jointly

refunded by the Manager, Mr. Kwabena Kyeremanteng and the

Accountant, Mr. Domingo Adongo.

881. Management submitted some photocopies of SRAs to indicate

the receipt of the items involved into stores of the Authority.

However, Management could not provide any stores records to show

the receipts and subsequent issues of same.

Unaccounted fuel coupons-GH¢3,080.00

882. Section 52 of the Public Financial Management Act, 2016 (Act

921) requires a principal spending officer of a covered entity to

maintain adequate records of all government stores and that, the

principal spending officer is discharged of accountability of

government stores where they have been consumed in the course of

public business and records are available to show they have been

consumed.

883. On the contrary, Management of the NHIA, Obuasi did not

account for fuel coupons worth GH¢3,080.00 procured for the

running of the Authority’s machineries. Details are furnished in

table 81.



Table 81: Unaccounted fuel coupons

Date

Vehicle No. Issued By Issued To Amount

07/08/17 Gs 1961 – 14 Felix Arnfirah 180.00

6/10/17 Gs 1813 – 10 Dorcas M. Owusu Kontor 100.00

17/10/17 Gm 3121 – 13 Domingo Adongo Owusu Kontor 100.00

25/10/17 Gs 1813 – 10 Domingo Adongo Owusu Kontor 100.00


9/12/17 Aw 7889 – 14 Domingo Adongo Akos J. 100.00

18/12/17 Gn 7398 –Z Domingo Adongo Muntaka 100.00

Sub- Total for July-December 2017 880.00

2/1/18 Gm 3121 – 13 Domingo Adongo K. Kyeremanteng 100.00


23/2/18 As 2468 – 14 Domingo Adongo Richard Sarkodie 100.00

23/2/18 Gv 116 – 16 Dorcas Isaac 200.00

28/3/18 Gs 1813 – 10 Dorcas Owusu Kontor 100.00



6/6/18 Gs 1813 – 10 Domingo Adongo Kontor 200.00



c22/6/18 M -14-As78 Domingo Adongo Ahmed 100.00


27/6/18 Reg. Office Domingo Adongo Regional Office 100.00

4/7/18 Gv 116 – 16 Domingo Adongo Isaac 50.00

10/7/18 Gm 3121 – 13 Mercy K. Kyeremanteng 100.00

24/7/18 Gw 6468 – Y Domingo Adongo Isaac 50.00

13/11/18 Gs 1813 Owusu Kontor 300.00

28/11/18 Regional Office 200.00

Sub - Total for January - December 2018 2,200.00

Grand Total for July 2017- December 2018 3,080.00

884. The lapse resulted from failure on the part of the Obuasi

Municipal Manager of the NHIA to make sure that fuel coupons

purchased were issued to the authorised individuals for purposes of

the Authority and records of the coupons properly maintained.

885. We recommended that the Municipal Manager and the

Accountant who were the custodians of the said fuel coupons should

provide justification regarding the usage of the coupons for our audit



review, failing which the expense GH¢3,080.00 should be refunded

by them.

Unjustifiable Tax Payments-GH¢2,841.98

886. Section 116 of the Income Tax Act, 2015 (Act 896) enjoins

Finance Officers (Accountant) as withholding agents to withhold tax

on the gross amounts paid for the supply of goods and services and

remit amounts deducted to the Ghana Revenue Authority.

887. We noted that the Accountant of the Obuasi Municipal Health

Insurance Scheme, did not withhold statutory taxes totalling

GH¢2,841.98 from purchases of goods and services made between

2013 and 2015. Management however paid the tax amount out of

the coffers of the Authority following a tax audit carried out on the

outfit by the GRA.

888. Management’s action contradicted the dictates of Section 117

of the Income Tax Act 2015, (Act 896) which requires tax agents to

pay taxes not withheld from their private resource and follow-up to

retrieve same form the suppliers or vendors from whom the taxes

ought to have been withheld. Details are as per table 82.

Table 82: Unjustifiable Tax Payments

Date PV No. Details Payee Amount GH¢

22/09/17 17/09/17 Withholding taxes for goods and services for 1st trench 2013-2015

GRA 1,420.99

12/12/17 11/12/17 Withholding tax Outstanding 2013-2015

GRA 1,420.99

Total 2,841.98



889. Negligence of duty by the Accountant was the cause of the

infraction which subsequently caused unnecessary extra cost to the

Authority.

890. Management stated that they tried to contact the suppliers

involve to retrieve the tax amount but realized that most of them had

folded up their businesses. Management further indicated that they

will consult their superiors to find a way out.

891. We recommended that the Municipal Manager and

Accountant should jointly and personally refund the amount of

GH¢2,841.98 to the NHIA Obuasi and recover same from the

suppliers and service providers as required by Section 117 of Income

Tax Act 2015 (Act 895) if they so wish. Evidence of the refund should

be forwarded to our office for verification.

Asawase

Misappropriation of Revenue-GHȼ19,519.00 892. Regulation 17 of the Financial Administration Regulations

(FAR), 2004 states that, a head of department shall; (a) ensure that

all Non-Tax Revenue are efficiently collected; (b) ensure that all Non-

Tax Revenue is immediately lodged in the designated Consolidated

Fund Transit bank accounts except in the case of Internally

Generated Funds retained under an enactment.

893. We noted during the audit that revenues collected between

July, 2018 and January, 2019 amounted to GHȼ462,207.00 but the

actual deposits captured from the bank statement for the same

period amounted to GHȼ442,688.00 leaving a difference of

GHȼ19,519.00 not accounted for. Details are provided in table 83.



Table 83: Misappropriation of Revenue

No. Period Amt

Collected

GH¢

Amt deposited

GH¢

Difference

GH¢

1. 19/06/18-31/07/18 27,349.00 30,480.00 (3,131)

2. 01/08/18-03/09/18 68,952.00 67,037.00 1,915.00

3. 03/09/18-02/10/18 60,978.00 61,363.00 (385.00)

4. 01/10/18-01/11/18 84,392.00 74,898.00 9,494.00

5. 01/11/18-03/12/18 85,437.00 82,236.00 3,201.00

6. 03/12/18-02/01/19 63,783.00 61,346.00 2,437.00

7. 03/01/19-29/01/19 71,316.00 65,328.00 5,988.00

8. TOTAL 462,207.00 442,688.00 19,519.00

894. The anomaly was caused by the Acting Accountant’s (Mr.

Jones Nana Tsibu) failure to deposit all monies paid to him by the

revenue collectors in full and failure on the part of the acting Scheme

Manager (Mr. Kwadwo Tweneboa-Kodua), also the Regional Director

of National Health Insurance Scheme, Ashanti to ensure proper

supervision over the accountant. The accountant had vacated his

post at the time of audit.

895. The Regional Manager of the Scheme, Mr. Kwadwo Tweneboa-

Kodua said he officially informed the NHIS Headquarters about the

fraud and vacation of post by Mr. Jones Nana Tsibu.

896. This act has not only resulted in loss of revenue to the

Scheme, but also denied the authority of funds to meet its

obligations.

897. Management intimated that it has exhausted all efforts to

contact Mr. Jones Nana Tsibu by visiting his family house on two

occasions but the family could not tell his whereabout. Management

also contacted the extended family through his father in the North

but he appeared unaware of his whereabout.



898. We therefore recommended that the issue should be reported

to the police and the terms and conditions of the bond executed.



MINISTRY OF LANDS AND NATURAL

RESOURCES

LANDS COMMISSION (CONSOLIDATED)

Introduction 899. This report relates to the audited accounts of the Lands

Commission (Consolidated) for the two years ending 31 December

2016 and 2017.

Operational Results

900. The income surplus as at the end of December 2017 reduced

by 83.9% due to significant reduction in both GoG Fund and Non-

Tax Revenue by 3.8% and 17.3% respectively. Total Expenditure on

Employee Compensation and Goods and Services also reduced by

12.5%. Other financial performance indicators are shown in the

table 84.

Table 84: Consolidated Income Statement 2017

Income

2017

GH¢

2016

GH¢ Change GH¢

%

Change

GoG Funds 32,714,987 34,012,378 (1,297,391) (3.8)

Non-Tax Revenue/IGF 55,711,827 67,379,148 (11,667,320) (17.3)

Others 16,673,078 12,790,658 3,882,420 30.4

Total 105,099,892 114,182,184 (9,082,292) (8.0)

Expenditure

GoG Fund 32,147,795 34,067,498 (1,919,703) (5.6)

NTR Transfer to CF 32,371,054 41,073,880 (8,702,826) (21.2)

IGF-Retained 19,496,779 28,788,541 (9,291,762) (32.3)

Others 22,244,903 17,459,826 (4,785,077) (27.4)

Total 106,260,531 121,389,745 (15,186,214) (12.5)

Surplus/(Deficit) (1,160,639) (7,207,561) (6,046,922 (83.9)



901. Total income decreased by GH¢9,082,292 representing 8.0%.

The decrease was due to reduction in both GoG Fund and Non-

Tax/IGF. Non-Tax/IGF decreased from GH¢67,379,148 in 2016to

GH¢55,711,827 in 2017.

Financial position 902. The Financial Position of the Commission as at the end of

December 2017 is shown in the table 85.

Table 85: Consolidated Statement of Financial Position as at 31 December 2017

903. Non-current Assets of the Commission increased by 37.4%.

Current Assets for the year under review reduced from 2016 figure

of GH¢12,354,609 to GH¢5,692,549 representing a decrease of

53.9%. In the year 2017 there was however, a nil balance for current

liabilities since the 2016 figure of 91,447 was totally paid off during

the year. As a result, the Commission’s posted a very impressive

liquid position since there was no debt that is supposed to fall due

in the short term.

2017 GH¢

2016 GH¢

Change GH¢

% Change

Non-current Assets 20,095,603 14,628,628 5,466,975 37.4

Current Assets 5,692,549 12,354,609 (6,662,060) (53.9)

Total Assets 25,788,152 26,983,237 (1,195,085) (4.4)

Current Liabilities - 91,447 91,447 100

Total Liabilities 91,447 91,447

Current Ratio 135:1



MANAGEMENT ISSUES

Corporate Division

Outstanding Ground Rent as at 31st December, 2017 GH¢4,051,781.33

904. A review of the ledgers on ground rent of lessees/assignees of

the Commission for four (4) out of the thirty-three (33) ground areas

indicated that, an amount of GH¢4,051,783.33 was owed by the

lessees/assignees as shown in table 86.

Table 86: Outstanding Ground Rent as at 31st December, 2017

Ground area Debtors figure GH¢

Tema Motorway Industrial Area 1,974,390.33

Achimota Forest Residential 498,981.00

Ring Road North Industrial Area 1,152,205.00

Roman Ridge Residential 426,207.00

Total 4,051,783.33

905. An interview with the Head of the ground rent management

unit indicated that the laxity in collection of the rent was due to

ignorant of lessees/assignees of such obligation though

Management occasionally sends their task force for reminder and

collection.

906. This situation if not rectified will lead to loss of revenue to the

Commission.

907. We however recommended that, Management of the ground

unit should adopt necessary strategies and measures to retrieve the

outstanding debt of GH¢4,051,783.33 from the four ground areas

and other debt from the other ground areas without further delay.



Management of Ground Rent

908. An interview with the head of the ground rent management

unit indicated that rate charges per annum is revised every seven

years for residential areas and between three to five years for

commercial areas.

909. The audit team sampled four (4) areas out of the thirty-three

(33) areas to review rent payment for the period. We noted the

following weaknesses:

a. 43 lessees in Achimota residential area, Ring Road North

Industrial area and Roman Ridge residential area have not

been paying ground rent since 1960 to the Commission.

b. Management of the Commission was unaware of the current

status of these lessees as to whether it has been confiscated

or reallocated.

910. The anomaly occurred because the head of rent management

unit Miss Mabel Blavo did not analyses and follow up on outstanding

debtors for update and adequate information. This has resulted in

a loss of rent from these lessees since 1960. Management was

alerted to retrieve the files on these forty-three lessees at the

instance of the audit.

911. We recommended that the head of the rent unit should update

the records on the forty-three lessees and recover the rent due from

1960 and our office informed for verification. We also recommended

that Management should commission a full and detail audit of the

ground rent unit to address all relevant anomalies.



Non-remittance to the Office of the Administration of Stool

Lands (OASL) GH¢1,163,470.17

912. Management of the Commission as part of their

responsibilities receives revenue on rent on behalf of the Office of the

Administration of Stool Lands. The amount collected within the year

should be remitted to the Office of the Administration of Stool Lands

at the end of the Year.

913. Our audit for the period under review disclosed that

Management of the Commission did not remit an amount of

GH¢1,163,470.17 as rent collection on behalf of the Office of the

Administration of Stool Lands as shown in the table 87.

Table 87: Non-remittance to the OASL

Year Amount collected GH¢

Amount remitted

GH¢

Outstanding GH¢

2014 615,692.28 300,171.00 315,521.28

2015 1,228,429.00 1,323,744.11 (95,315.11)

2016 1,078,097.00 334,187.00 743,910.00

2017 590,174.00 390,820.00 199,354.00

Total 3,512,392.28 2,348,922.11 1,163,470.17

914. This has the tendency of overstating the Commission’s bank

balance which in actual sense is not due them.

915. We recommended to Management to remit the amount of

GH¢1,163,470.17 to the Office of the Administrator of Stool Lands

without further delay.

Non-Compliance with Government Directive

916. In June 2015, the Ministry of Finance desirous of improving

revenue collection instituted the On-site/Daily collection

Programme as a mechanism for the collection of government revenue

by banks on behalf of Ministries, Departments and Agencies (MDAs).

Universal Merchant Bank was contracted for this revenue collection.



917. Notwithstanding the above agreement, Management of the

Commission received cash payments of GH¢3,247,375.00 and

cheque payments of GH¢6,554,041.00 on purchase of government

lands at Borteyman for the period under review.

918. This anomaly was due to non-compliance with the above

agreement.

919. The practice has the tendency of delaying bank lodgments,

misappropriation of funds and the likelihood that money collected

would not be accounted for.

920. We recommended that Management should comply with the

contract agreement between the Ministry of Finance and the on-site

Bank on behalf of the MDAs to enhance financial discipline.

Abandoned Official Vehicle 921. Regulation 39 of the Financial Administration Regulations

2004 L.I 1802 requires that the head of department shall ensure

value for money in the Utilisation of funds whilst the head of

accounts section shall control the disbursement of funds to ensure

transactions are properly authenticated.

922. An inspection of the Commission’s official vehicles disclosed

that a Toyota Land Cruiser with registration number GV 10-14 had

been grounded for one and half years due to malfunctioned engine.

923. An interview with the Transport Officer indicated that an

estimated charge of One Hundred thousand Ghana Cedis

(GH¢100,000.00) quoted by Toyota Company Limited for repair

works was what has left the vehicle unattended to.



924. To avoid further deterioration of the vehicle, we advised

Management to expedite action to either repair the vehicle or refer

the case to a board of survey for disposal.

925. Management responded that the vehicles are listed for

boarding at the instance of the audit.

Non-Ownership of the Commission’s Official Vehicles 926. Regulation 2(n) of the Financial Administration Regulations

2004 L. I 1802 state “the head of Government department shall

compile and maintain assets register of the department as

determined by the Controller and Accountant General.

927. A review of vehicle files of the Commission for the period

under review indicated that, the Commission did not have ownership

of seven vehicles as these vehicles were in the names of either Toyota

Ghana, GFAO, Stelin Automobile or other individuals. Details of the

affected vehicles are shown in table 88.

Table 88: Non-Ownership of the Commission’s Official Vehicles

No Vehicle Number Make/Brand Ownership

1 GV 80-16 Toyota Hilux Toyota Ghana Co. Ltd

2 GV 483-14 Mitsubishi GFAO Ghana Limited

3 GV 465-14

Toyota Coaster Bus Toyota Ghana Co. Ltd


5 GC 855-14 Ford Ranger George Edumadze

6 GV 520-14 Toyota Hilux

Stelin Automotive & Trading Co. LTD


928. This we noted was due to failure by Management to ensure

these office vehicles has been transferred to the Commission name.



929. The anomaly if not corrected could lead to loss of the asset

without Management’s detection. Also, in an event of accident,

insurance claims may pose a challenge.

930. We advised Management to ensure ownership of the above

vehicles are duly transferred into the name of the Commission.

931. Management in their response stated that evidence of

ownership of the seven vehicles is available for our verification.

However, management could not provide any documentary evidence

on a follow up by the audit team. We therefore stand by our initial

recommendation.

Failure to provide records for Audit

932. Regulation1of the Financial Administration Regulations,

2004 L.I. 1802, provides that any public officer who is responsible;

for the conduct of financial business on behalf of the Government of

Ghana, the receipt, custody and disbursement of public and trust

moneys, or for the custody, care and use of public stores shall keep

proper records of all transactions and shall produce records of the

transactions for inspection when called upon to do so by the

Minister, the Auditor-General, the Controller and Accountant-

General or any officers authorised by them.

933. Notwithstanding the above Regulation, Management of the

Commission could not provide the audit team with records on the

allocation of Government Lands at Borteyman to enable the team

establish and confirm the debtors figure and ascertain whether it

has been correctly incorporated in the financial statements for the

period under review.

934. This we noted was a deliberate disregard for the above

regulation since several follow ups were made by the audit team.



935. We could therefore not confirm the debtors figure in respect

of Nungua Farms-Borteyman and also ascertained whether the

correct figure has been incorporated in the financial statements.

936. We recommended that Management should make the records

on Borteyman available to the team for our review.

937. Management in their response stated that the list for the land

is available for our necessary action but Management could not

provide it on a follow up by the audit team.

Public and Vested Lands Management Division (PVLMD)

Items not routed through stores- GH¢20,560.00

938. Regulations 0502 of the Stores Regulations 1984 requires

that stores items would be recorded in the store ledger sheets and

tally cards before usage.

939. Our review of the payment vouchers disclosed that, various

purchases made totalling GH¢20,560.00 were not accounted for in

the store records. Items such as tyres, chairs and cartridges were

purchased but we could not determine if they were used in the

interest of the Organisation. Details are shown in table 89.

Table 89: Items not routed through store Date Particulars Amount

GH¢

P.V. No Cheque

No

Payee

6/5/2016 Payment for the

purchase of print

heads

5pcs HP print heads

black. 3pcs HP print heads

Cyan

4,900.00 P.V 072/16 131696 Lamp of

God

Service.



3pcs HP print heads magata

3pcs HP print heads

yellow

26/8/2016 Being payment for

supply of cartridges

and print-heads. 5pcs black ink 10

5pcs cyan ink 82

3pcs yellow ink 82

1pc magata ink 82

1pc yellow print head 82

1pc cyan print head

82

4,200.00 P.V. No

138/16

131768 Lamp of

Gad

Service


supply of vehicle

tyres

8pcs 205/16-pirelli 4pcs 265/70r 16-

Duellei-NT

Bridgestone

9,960.00 P.V.L218/16 131863 Infinity

tyres


supply of office

chairs

1,500.00 P.V.L

221/16

131873 Kingdom

Books

Total 20,560.00

940. Lack of co-ordination between the procurement unit and the

officer in charge of stores contributed to this lapse.

941. Failure to route items through stores will make monitoring of

such purchases difficult if not impossible and could engender

fraudulent practices.

942. We therefore recommended that items in question should be

accounted for failing which the amount be recovered from the

authorising and approving officers.

943. Management responded that this was an oversight; the items

were actually routed through stores. The store receipt vouchers were

available for our verification.



944. Meanwhile all the store ledgers made available for scrutiny

did not include the ones under consideration.

945. We still maintain that purchases were not routed through

store.

Failure to support payments with receipt GH¢700.00 946. Regulation 1(a) of Financial Administration Regulations 2004

LI 1802) states ’the head of government department shall manage

and operate the department’s accounting systems, so as to ensure

the accountability of all officers transacting such business and

facilitate the efficient discharge of such business.

947. Our review of payment vouchers disclosed that payments of

GH¢700.00 made in respect of fuel coupons and lunch were not

supported with receipts after the transactions. Details are shown in

table 90.

Table 90: unsupported payments

Date Details Amt

GH¢

PV No. Cheque

No.

Payee

3/2/2017 Being release of funds for lunch

for progress

report (GEZIS)

and visit to

PVLMD N/R office

700.00 PVL 237/17 131887 Lydia

Total 700.00

948. The head of accounts did not supervise and monitor the work

of the account’s officers in charge of payments.

949. This could lead to misapplication and diversion of funds.

950. We recommended that, the receipt for the payment should be

made available for audit inspection or the amount of GH¢700.00 be

recovered from the signatories to the accounts.



951. Management responded that the receipts have been obtained

from the suppliers and now available for our verification.

952. Management however, did not produce the receipts when we

requested them to do so.

953. We advised that Management should produce the rest of the

receipt and our office informed for verification.

Survey and Mapping Division

Use of unregistered suppliers-GH¢17,354.00

Section 2.4 of the Public Procurement Manual on PPA Act 663

provides that a procurement unit shall maintain and update the

database of suppliers, contractors and consultants.

954. We noted during our review of transactions related to

procurement that suppliers contracted for supply of various goods

and services amounting to GH¢17,354.00 within the period of audit

were not part of the database of suppliers prepared by the

procurement unit. The details are shown as table 91.

Table 91: Use of unregistered suppliers

Date P.V No. Details Amount

GH¢

Supplier

26/01/2016 SMD/01/16 Payment for relocation

of main electrical meter

5,974.00 Timtech Ent

08/02/2016 SMD/06/16 Funds to meet expenses cartho, litho and exams

unit

3,500.00 Darling Investment

16/06/2016 SMD/35/16 Repairs of vehicle No

GV695-14

1,195.60 Kwadans

Motors

19/09/2016 SMD/59/16 Cost of repairs on

vehicle no GVs 543-14

& 550-14

4,210.00 Eyo

Engineering

motors

03/06/2016 SMD/INT/39/16 Cost of 15 Escan anti-virus supplied

2,475.00 Syrex Global Ventures

Total 17,354.00



955. This anomaly could be attributed to non-compliance with the

above provision by officers involved in the procurement processes.

956. Failure to adhere to laid down rules regarding procurement

could lead to uncompetitive procurement which could invariably

result in Survey and Mapping Division not getting value for money

in its procurement activities.

957. We urged Management to ensure that all procurement rules

are always complied with to forestall future occurrence.

958. Management took note of our recommendation and pledged

to review the scope and content of the supplier data base so as to

minimise the incidence of breaching laid down procurement rules.

Unearned Salaries - GH¢54,957.26 959. Regulation 298 of Financial Administration Regulations (FAR)

L.I. 1802 requires a head of department to immediately stop the

payment of salary to a public servant, who either resigned or retired,

dies or absents himself from duty without leave or reasonable cause

for a period as stipulated in the administration regulations of the

establishment.

960. Regulation 299(1) of the FAR 2004 also states that, the

occurrence of any of the circumstances specified in regulation 298

shall immediately be brought to the notice of the head of department

or intermediate disciplinary authority as the case may be.

(a) The notification under sub-regulation (1) shall indicate the

effective date of the stoppage and confirm that action has been taken to prevent further payment.

(b) Action under sub-regulation (2) includes (i) notification to the Controller and Accountant General

where salary payments are made direct to the officer’s bank account;



(ii) notification to the bank for repayment into the

Consolidated Fund of salary or other payments credited to the public

servant’s bank account;

(iii) issue of the appropriate salary input to the section responsible for stopping payments on the payroll; and

(iv) notification to the internal auditor.

(c) Failure to cause the stoppage within the time required is a

breach of financial discipline under Regulation 8(1).

961. We observed that 15 staff members had their names appearing

in the salary payment vouchers after their separation from the

establishment by way of retirement, resignation and death for the

years under review, resulting in unearned salaries of GH¢54,957.26.

The unearned salary was GH¢10,150.91 and GH¢44,806.35 for

2016 and 2017 respectively. Details are shown in table 92.

Table 92: Unearned Salaries

2016 SMD UNEARNED SALARY

N0 NAME Rank

Type of

separation

Date of

separation

Month of

deletion

No. of

months

Unearned salary

GH¢

1 Charway Theophilus

Principal Technical Officer Retirement 01/01/2016 Feb 1 972.93

2

Noagbedzi Emmanuel K.

Senior Technical Assistant Retirement 19/02/2016 April 1 578.36

3

Iddrisu

Alhassan

Yard

foreman Retirement 01/07/2016 Sept 1 865.00

Unable to verify for the month

of August

4

Ghartey Samuel

Fynn

Principal Geomatic

Technician Retirement 15/08/2016 Nov 1 1,207.97

unable to verify for the month

of October

5

Annan

John Victor

Chief

Technical Officer Retirement 10/10/2016 Jan. 17 2 4,733.66

unable to verify for

the month of October

6 Amartey Theresa

Senior

Technical Officer Retirement 12/06/2016 Sept 1 916.23



7 Slyvanus Anibrika

Principal Geomatic Technician Deceased 12/12/2015 Feb 1 876.76

10,150.91

962. The anomaly was as a result of Management’s failure to notify

the Controller and Accountant-General and the Bank promptly to

stop payment of the unearned salary. Management did not also

notify the various banks of the separated staffs for repayment to be

made to the consolidated fund.

2017

NO. NAME ID GRADEDate Of

BirthDOFA

Retirement

Date STATION

Month of

deletion

No. of

months

Unearned

salary

(GH¢)

1Ayi- Bontey

K. Micheal48347

Principal

Geomatic

Engineer

07-08-57 01-08-91 07-08-17 HQ

WAS

BEING

PAID AS

AT DEC.

2017

5 18,243.22

2

Quaynor

Ralph

Christian

27105

Dep. Chief

Technical

Officer

01-12-57 01-03-86 01-12-17 Accra DEC 1 2,151.06

3Adrews

Augestina T. 6106

Principal

Technical

Officer

06-06-57 01-08-77 06-06-17 HQ JULY 1 418.62

4Okutu

James 643185

Chief

Accountant 24-01-57 03-11-78 24-01-17 HQ MARCH 1 260.77

5Kumah

Robert 73451

Senior

Accountant 12-01-57 24-09-92 14-01-17 HQ MARCH 2 3,460.32

6

Yawah

Midewona

Juliana

716750Survey

Labourer13-03-57 11-05-09 13-03-17 HQ APRIL 1 499.81

7William

Richardson44221

Principal

Geomatic

Technician

06-08-58 11/16/1992 06-08-17 Accra

WAS

BEING

PAID AS

AT DEC.

2017

5 19,069.66

DECEASED

STAFF

NAME STAFF ID STATION DOE

8

Peter

Kwame

Ahetor

124267 Accra 28-03-17 MAY 1 702.89

Total 44,806.35

54,957.26Grand Total

SMD UNEARNED SALARY



963. Failure to inform the Controller and Accountant-General and

the Bank promptly had resulted in the loss of funds that could be

channeled to other important activities.

964. We recommended to Management to ensure that efforts are

made to recover the total unearned salaries of GH¢54,957.26, pay

same to Government chest and inform us to verify the Treasury

Receipt supporting the payment.

965. Management responded that a thorough investigation has

been conducted into this and the families and some of the persons

involved are co-operating appreciably in the matter. There is high

propensity of retrieving all the funds involved which will be paid to

government chest. The audit team will be furnished with evidence of

such payments.

Failure to deduct withholding tax - GH¢37,057.30

966. Section 116 (2) (b) of the Income Tax Act 2015, (Act 896)

stipulate that a resident person, other than an individual, shall

withhold tax on the gross amount of the payment at the rate

specified in the first schedule when the person makes a payment to

another resident person who does not fall subsection (1) or section

114 for supply of goods, works and services.

967. We noted during examination of payment vouchers that 13

payments totalling GH¢37,057.30 were made to various payees

without deduction of withholding tax. Details are shown in table 93.

Table 93: Failure to deduct withholding tax

Date PVNo Details

Cheq

No

Invoice

No. Amount

Name of Supplier/

Payee

16/03/2016 SMD/20/16

Allowance for

evaluation of

quotations 202669

1,875.00

Mr

Samuel

Oppong



Antwi & 8 others

‘ ' ? '

3,780.00

Mr

Robrtson T

Quarshie &

12 others

25/01/2016 SMD/21/16

Cots of 400

pillars 202648

4,000.00

Not

indicated on cash

sales

invoice

' '

paymt for

515 survey

pillars '

4,635.00

Wise Way

Analysis

Ent

' ' Cost of 350 pillars '

3,500.00

Baffour & Sons Ent

23/02/2016 SMD/09/16

Cost of

accommodati

on & food 202661

13/359

2090

6,320.00 Akroma

25/04/2016

SMD/INT/3

6/16 Black Ink 202680

15/388

6854

1,850.00

Roasaco

Agencies

03/06/2016 SMD/INT/38/16

Escan internet 202688

1,500.00

Gensol Gh Ltd

' ' Black Ink '

15/388

6906

1,400.00

Roasaco

Agencies

' ' Black Ink '

15/388

6903

1,400.00

Roasaco

Agencies

' '

Cat 6

terminated cables '

2,000.00

Syrex

Global Ventures

19/09/2016

SMD/INT/7

5/16

Cost of

electrical

works 202722

FRA

119710

44

2,997.30

Timtech

Ent

20/07/2016 SMD/46/16

Cost of

Tonner &

rollers chip board 202704

15/3886909

1,800.00

Roasaco Agencies

Total 37,057.30



968. This, in our opinion, could be attributed to the failure on the

part of the Head of Finance to ensure compliance of the Act.

969. Government may be denied resources which could be

channeled to important developmental ventures if withholding taxes

are not withheld.

970. We recommend that Management takes steps to ensure that

the due tax component on the amount of GH¢37,057.30 is recovered

from the affected payees and paid to Ghana Revenue Authority (GRA)

for our inspection.

971. Management responded that efforts have been made to

contact each of the service providers or suppliers mentioned for the

retrieval of their respective withholding taxes. The level of co-

operation is fairly good and Management hopes to recover all such

funds, for onward transmission to GRA. Copies of GRA pay-in-slips

will be available for inspection.

Over spending on Demarcation project - GH¢27,631.00

972. Regulation 39(2c) of Financial Administration Regulations

2004 stipulates “The head of the accounts section of a department

shall control the disbursements of funds and ensure that orders are

made within the powers of and the funds available to the officer

ordering disbursements”.

973. We sighted a memo from the Director, SMD to the Executive

Secretary, Lands Commission Corporate, dated 8th January, 2016

on the subject “Budget for Jubilee Gate Fieldwork” requesting for a

total amount of GH¢26,150.00 being the cost of the project which

was subsequently paid on PV No. Corp/18/16 dated 15/01/2016 in

respect of the demarcation and Survey of the Jubilee Gate Site

(Nungua farms).



974. We however noted that a total of GH¢53,781.00 was spent in

respect of the demarcation project resulting in an excess expenditure

of GH¢27,631.00. Details are shown in table 94.

Table 94: Over spending on Demarcation project

P.V No. Date Payee

Cheque

No. Date

Amount

GH¢

SMD/21/16 25/01/2016 Director 202648 26/01/2016 26,150.00

SMD/20/16 16/03/2016 Director 202669 ? 10,800.00

SMD/25/16 12/04/2016 Director 202677 ? 16,831.00

Total 53,781.00

975. Management’s inability to do due deligence in producing a

realistic budget for the demarcation exercise resulted in this lapse.

976. Spending out of budgets could lead to misuse of resources

which could further result in expenditure which may not be in the

interest of SMD.

977. We recommended to Management to produce approval to

justify the excess expenditure of GH¢27,631.00 for our inspection

or the amount refunded by the authorising and approving officials.

978. Management answered that the site variations associated with

the Jubilee Gate Field Work project warranted the increment in the

project budget of GH¢27,631.00 over the original cost of

GH¢26,150.00. The necessary approval will be made available to the

audit team for setting the records straight.

Social Security Fund deducted not remitted to SSNIT-

GH¢1,160.50 979. Section 3 (1) of Act 766 of National Pensions Act, 2008

mandates that an employer of an establishment shall deduct from



the salary of every worker in the establishment immediately at the

end of the month, a worker’s contribution of an amount equal to five

and half per centum of the worker’s salary for the period, irrespective

of whether or not the salary is actually paid to the worker.

980. Our review of sampled payments to temporary staff indicated

that a total amount of GH¢1,160.50 deducted in respect of

employees Social Security contribution was not supported with

evidence of remittance to SSNIT. The details are shown in table 95.

Table 95: Social Security Fund deducted not Remitted to SSNIT

Date P.V No. Details

Cheq

No.

SSF

Deducted

Name of

Supplier/Payee

02/03/2016 SMD/22/16

Wages for

month of

Feb 2016 202662

121.00

Richard Edeani

& 7 others

28/02/2017 SMD/INT/26/17

Paymt of All'ce to

casual 202800

148.50

Richard Edeani

& 9 others

23/01/2017 SMD/INT/27/17

Paymt of

monthly

wages 202787

148.50

Richard Edeani

& 9 others

21/03/2017 SMD/INT/30/17

Paymt of

All'ce to casual 202808

148.50

Richard Edeani & 9 others

04/09/2017 SMD/INT/55/17

Payment of

wages for

casual

labourers-

Aug 2017

148.50

Richard Edeani

& 9 others

04/09/2017 SMD/INT/56/17

Payment of

wages for casual

labourers-

Jul 2017

148.50

Richard Edeani

&9others

04/09/2017 SMD/INT/57/17

Payment of

wages for

casual labourers-

Nov 2017

148.50

Richard Edeani

&9others



04/09/2017 SMD/INT/58/17

Payment of wages for

casual

labourers-

Dec 2017

148.50

Richard Edeani

&9others

Total

1,160.50

981. Disregard for the above Act by the Head of accounts led to

this lapse.

982. Failure to remit contributions deducted is not only a breach

of the Act but more importantly it could go a long way to negatively

affect the welfare of personnel involved in the future.

983. We recommended that Management should ensure that all

contributions deducted but not remitted be paid to SSNIT as

required by law.

984. Management responded that SMD has optimized its

employment quota and for that matter no further names can be

accommodated on its statutory pay roll. The division needed some

service in respect of vehicle mobility assistants (or drivers) for the

sound execution of some on-going projects. Two drivers were

therefore engaged purely on contract bases whose emoluments were

financed from project exigency funds. Since their names technically

cannot be placed on regular pay rolls, it stands to reason that the

issue of SSNIT contributions does not arise. As a way forward,

Management is working hard to justify their stewardship so as to

regularise their employment status to enhance payment of their

SSNIT contributions.

Land Valuation Division

Abandoned Official Vehicles 985. Regulation 183(3) of the FAR, 2004 (L1 1802) states “a head

of department shall be accountable for the proper care, custody and



use of Government Stores from the time of acquisition until they

have been used or otherwise disposed of in accordance with these

regulation”

986. During our physical inspection of assets, we noted that two

official vehicles belonging to Land Valuation Division were grounded

between 1½ to 2 years.

An interview with Transport Officer disclosed that these vehicles needed some spare parts to make them functional. Details are

shown in table 96. Table 96: Abandoned Official Vehicles

Vehicle Type Vehicle Number

Nissan Pickup GV 517-14

Ford Ranger Pickup GV 515-14

987. Management neglect of these vehicles resulted in these

anomalous conditions.

988. If care is not taken, the vehicles would deteriorate to the

extent that they may lose their value and nothing could be recovered

when disposed of.

989. We advised Management either to dispose of them in

accordance with prescribed legislation or repair them to avoid

further deterioration.

990. In response Management said they have accepted the

recommendation and would ensure compliance by consulting

Corporate Head Office.

Unearned Salaries GH¢4,312.89

991. Regulation 297 of FAR L.I 1802 enjoins a head of department

to immediately stop the payment of salary to a public servant, who

either resigned or retired, dies or absents himself from duty without



leave or reasonable cause for a period as stipulated in the

administration regulations of the establishment.

992. We noted during the examination of the Electronic Salary

Payment Voucher that Darku Joshua Stephen who retired on 3 May

2016 enjoyed unearned salary totalling GH¢4,312.89.

993. The inability of management to act quickly enough to stop

further salary payments.

994. This anomaly has the potential of over burdening the

Government of its wage bill thereby putting undue pressure on the

national budget.

995. We recommended that Management should make strenuous

effort to retrieve the amount and pay same to government chest.

996. Management explained that at the time of audit the case

involving Joshua Darko’s date of retirement was before the National

Labour Commission (NLC) therefore Management would only be in

a position to ascertain any unearned salary issue after the

determination of the case.

Land Registration Division

Officer on Study Leave not Bonded -GH¢9,041.25 997. Section 8.3(b) of the Staff Training and Development Policy of

the Lands Commission provides that sponsorship shall be granted

to a confirmed employee who has served the Commission

satisfactory for period of five (5) years to pursue a course of training

relating to his/her field or work. Such an employee shall be bonded

to serve the Commission for period equivalent to the study period

plus 2 years.



998. Nana Kojo Esilfie, a Land Administration Officer was granted

a one (1) year study leave with pay to pursue a professional Law

course at the Ghana School of Law, Accra for the 2016/2017

academic year which ended in August 2017. The officer has since

not reported to work though we could not find any letter extending

his leave. A total amount of GH¢9,041.25 has been paid as salary to

him as unearned salary for the period September to December 2017.

We could also not find a copy of the bond executed between the

officer and the Division though he was given two weeks to complete

and submit in triplicates copies of the form.

999. Management failed to ensure the strict adherence of rules and

regulations relating to his study leave.

1000. The officer may not return to the Division after completion of

the course and the Division may miss the recovering of the bond cost

since there was no written agreement to commit the officer to return

to work. Moreover, the Division has also lost a total of GH¢9,041.25

in unearned salary for the period the officer vacated his post after

the expiration of the leave.

1001. We recommended to Management to ensure that the officer

refunds the amount of GH¢9,041.25 paid to him with interest at the

prevailing Bank of Ghana interest rate and our office informed for

verification.


Record management 1003. Regulation 2(h) of the Financial Administrations, 2004

(L.11802) provides “a head of department shall preserve in good

order and secure the economic use of all equipment and stores used



by the department. Land Registration Division cannot effectively

function without proper information on its clients. These records are

the operational and strategic assets of the Division because of their

economic, legal and fiscal value.

1004. A tour of the Records department noted that, the Division did

not have standard shelves for the storage of records on its clients.

The shelves currently in use at the records department did not

conform to archival standards. The files were also not well organised

making access very difficult.

1005. We also noted that the storage space was not adequate to

accommodate the volume of files that were being process on daily

bases. The environment under which these important documents

were kept was not conducive. The department was also not equipped

with fire alarms, smoke detectors and CCTV cameras to monitor the

records.

1006. This anomaly was due to Management’s failure to adhere to

best record management practice.

1007. The dusty environment exposed the staff at the records

department to health hazards important records may also be

damaged because of improper handling. The Division may also loose

sensitive information to fire and other hazards because of the

unavailability of smoke detectors and fire alarms. Staff in

connivance with client may temper with important records on files if

the department is not monitored by the use of CCTV cameras.

1008. We recommended to Management as a matter of urgency to

take the necessary steps to provide the records department with

modern equipment such as CCTV cameras, fire alarms, smoke

detectors and external backups to ensure the safety of the records.



1009. Management stated in its response that, it will do well to

install state of the Art Reword Management System.

OFFICE OF THE ADMINISTRATOR OF STOOL LANDS

MANAGEMENT ISSUES

Kintampo

Outstanding rent-GH¢269,350.00

1010. We noted that 11 individuals and institutions owed the Stool

Lands office, Kintampo GH¢269,350.00 as at 30 September, 2019

in respect of ground, farm and other rent, with some of the debts

dating as far back as 2012. This situation is in violation of

Regulation 46 of the Public Financial Management Regulations,

2019 (LI2378). Details are shown in table 97.

Table 97: Outstanding rent

No. Name Period Amount

GH¢

1 Adu Gyan 2016-2019

28,350.00

2 Web Strategies GH Ltd 2012-2019

40,000.00

3 Sampson Adu Fokuo 2014-2019

28,000.00

4 Cletus Ampeguo Nyandy Ent. 2017-2019

2,000.00

5 John Williams Farms 2012-2019

54,000.00

6 David Opoku Sarfo 2017-2019

6,000.00

7

Northern Rice Company Ltd (Dr. Ampofo) 2017-2019

6,000.00

8 KwakuYaboah 2016-2019



Asuamah 20,000.00

9 African Unique Farms Ltd 2016-2019

16,000.00

10 Fortuna FT Ghana Ltd 2016-2019

48,000.00

11 Donfe Gyeabour Ltd 2012-2019

21,000.00

Total 269,350.00

1011. We attributed the irregularity to the defaulters’ non-

compliance with the several reminders sent to them by the Registrar.

1012. The failure by Management to put in place an effective system

to collect the rent over the years resulted in a revenue loss of

GH¢269,350.00 to the State.

1013. We recommended to Management to resort to legal

action against the

defaulters to recover the amounts.

Nkoranza South

Unaccounted for revenue-GH¢2,000.00

1014. Section 47(2) of the Public Financial Management Act, 2016

(Act 921) requires that revenue collected or received by a covered

entity under subsection (1) shall be received into a public fund.

1015. However, we noted that, Mr. Michael Koosono, a Principal

Lands Inspector at the Stool Land Office, Nkoranza could not

account for revenue collected amounting to GH¢2,000.00 between

May, 2019 and July, 2019. Weak supervision over the work of Mr.

Micheal Koosono resulted in the anomaly. Details are shown in table

98.



Table 98: Unaccounted for revenue

1016. The state of affairs resulted in a revenue loss of GHȼ2,000.00

to the State.

1017. We advised the Regional Stool Lands Administrator to recover

the amount of GH¢2,000.00 from Mr. Michael Koosono while

supervision over revenue is strengthened.

Outstanding Ground and Farm Rent-GH¢180,876.00

1018. Regulation 17 (a) of the Financial Administration Regulations,

2004 (L.I. 1802) states that a Principal Spending Officer shall ensure

that non-tax revenue is sufficiently collected.

1019. On the contrary, our review of records disclosed that 234

farmers within the Nkoranza South Municipality could not pay to

the Stool Lands Department GH¢180,876.00 being Ground and

Farm Rent as at 22/7/2019. Table 99 is the summary

Table 99:

Expected revenue for the

year

GH¢

Amount collected

GH¢

Outstanding

GH¢

250,000.00 69,124.00 180,876.00

1020. The anomaly occurred as a result of the Municipal Stool

Lands Inspector’s failure to institute effective revenue collection

mechanisms to collect all revenue due the Department.

GCR (Receipt) No. Amount

Collected

GH¢

Amount

accounted for

GH¢

Unaccounted

Amount

GH¢

0964991-0985000 820.00 10.00 810.00

0023501-0023528 790.00 Nil 790.00

0023529-0023538 400.00 Nil 400.00

Total 2,000.00



1021. We recommended that effective measures including serving

Demand Notices for the collection of the amount of GH¢180,876.00

should be done.

FORESTRY COMMISSION

Introduction

1022. This report relates to the audited Financial Statements of the

Forestry Commission for the year ended 31 December, 2016.

Operational results

1023. The Commission’s surplus for the year under review

amounted to GH¢28,432,011 as against GH¢18,114,681 in 2015

showing a 57.0% increase. The operations of the Commission are



Revenue

2016

GH¢

2015

GH¢

%

Change

Subvention from Government 66,548,548 53,710,530 23.9

Internally Generated Funds 96,311,766 62,508,304 54.1

Recurrent Grant from Donor Agencies 15,098,981 13,158,915 14.7

Total Income 177,959,295 129,377,749 37.6

Expenditure

Compensation of employees 59,295,479 54,284,961 9.2

Goods and Services 64,799,775

42,164,751 53.7

Depreciation 6,450,536

5,006,838 28.8

Project Expenses 18,981,494

9,806,518 93.6

Total Expenditure 149,527,284

111,263,068 34.4

Surplus/(Deficit) 28,432,011

18,114,681 57.0



1024. Total Income for the year under review amounted to

GH¢177,959,295 (2015: GH¢129,377,749) representing an increase

of 37.6%. The rise was mainly as a result of a 54.1% increase in

internally generated funds.

1025. Total expenditure amounted to GH¢149,527,284 in 2016, an

increase of 34.4% over the 2015 amount of GH¢111,263,068. This

was substantively due to increase in Goods and Services and Project

Expenses by 53.7% and 93.6% respectively.

Financial position

The financial position of the Commission as at 31 December, 2016

in summarised in table 101.

Table101: Financial position as at 31 December, 2016

Items

2016

GH¢

2015

GH¢

%

Change


Current Assets 191,679,962 130,251,687 47.2





was due to additions to Property, Plant and Equipment.

1027. Current Assets also increased by 47.2% from

GH¢130,251,687 in 2015 to GH¢191,679,962 in 2016. This was due

to an increase in Cash and Cash Equivalent which went up by

60.3%.

1028. Current Liabilities increased by 111.3% from GH¢11,575,033

in 2015 to GH¢24,456,186 in 2016. Increases in Stumpage Fees

Payables and Sundry Creditors and Accruals by 155.8% and 106.6%

respectively accounted for the rise.



1029. The Commission liquidity ratio as measured by current ratio

of 7.8:1 (2015: 11.3:1) indicates its ability to meet short term debts

as and when they fall due.



MINISTRY OF EDUCATION

CHARTERED INSTITUTE OF TAXATION

Introduction 1030. This report relates to the audited accounts of the Chartered

Institute of Taxation for the year ending 31 December 2018.

Operational results 1031. The year closed with a surplus of GH¢94,875 as against a

deficit of GH¢115,277 recorded in 2017 financial year, representing

an increase of 182.3%. The performance indicators are shown in

table 102.

Table 102: Comparative Income Statement for 2018

Item 2018 GH¢

2017 GH¢

% Change

Members' Subscription and fees 194,550 201,586 (3.5)

Students' Subscription and Exemptions

199,360 191,780 4.0

Examination and student Activate 269,775 230,950 16.8

Professional Activities 439,131 347,703 26.3

Other Operating Activities 10,206 2,820 261.9

Best Tax Student Awards 3,000 4,000 (25.0)

Investment Income 25,983 55,860 (53.5)

Total Income 1,142,005 1,034,699 10.4

Expenditure

Examination & Other student Activities

125,340 76,915 63.0

Professional Body Activities 490,659 471,337 4.1

Council and Committee Activities 44,428 86,991 (48.9)

Employment Cost 124,588 72,824 71.1

Best Tax Student Awards 13,160 7,360 78.8

General and Administrative Expenses 248,955 434,549 (42.7)


Surplus/(Deficit) 94,875 (115,277) (182.3)



1032. Total Income for the period increased by 10.4% from

GH¢1,034,699 in 2017 to GH¢1,142,005 in 2018. The increase was

due to 26.3% or GH¢91,428 rise in Professional Activities in 2018.

1033. Total Expenditure went down from GH¢1,149,976 in 2017 to

GH¢1,047,130 in 2018 representing 8.9% decrease. The decrease

was as a result of 42.7% decrease in General and Administrative

Expenses from GH¢434,549 in 2017 to GH¢248,955 in 2018.

Financial position

1034. The financial position of the Institute as at 31 December 2018

is presented in the table 103.

Table 103: Financial position for 2018

Item 2018

GH¢

2017

GH¢

%

Change

Non- Current Assets 77,497 112,727 (31.3)

Current Assets 531,116 358,235 48.3


Net Asset 532,326 435,751 22.2


1035. Non-Current Assets decreased from GH¢112,727 in 2017 to

GH¢77,497 in 2018. The reduction was as a result of disposal of

Motor Vehicle in 2018.

1036. Current Asset increased from GH¢358,235 in 2017 to

GH¢531,116 in 2018 signifying 48.3% rise. The rise was due to

1,315% increase in Account Receivables from GH¢9,387 in 2017 to

GH¢132,825 in 2018.

1037. Current Liabilities also went up by 116.7% from GH¢35,211

in 2017 to GH¢76,287 in 2018. The increase was as a result of

181.3% rise in Payables from GH¢22,581 in 2017 to GH¢63,517 in

2018.



1038. The liquidity position of the entity as measured by current

ratio stood at 7.0:1 in 2018 and 10.2:1 in 2017 financial years. This

means the Institution would be able to meet its short-term debts as

and when they fall due even-though the current ratio declined.

MANAGEMENT ISSUES

Payments not adequately supported-GH¢25,170.08

1039. Regulation 39 (2c) of Financial Administration Regulations

2004 (LI 1802) states “The head of the accounts section of a

department shall control the disbursements of funds and ensure

that transactions are properly authenticated to show that amounts

are due and payable.”

1040. We noted in our examination of payment vouchers that

payments totalling GH¢20,933.58 were not adequately supported

with invoices, receipts, and signed sheets by claimants to properly

authenticate the payments. Details are shown in table 104.

Table 104: Cash withdrawals not adequately supported

S/N Date Description

PV

Number

Cheque

No.

Amount

GH¢

1 01/02/2018

2ND

STATEMENT 41 920565 585.00

2 26/02/2018 3RD STATEMENT 52 920579

447.00

3 07/03/2018

4TH

STATEMENT 58 920585 185.00

4 19/03/2018

5TH

STATEMENT 62 920589 1,288.00

5 04/04/2018

6TH

STATEMENT 81 124008 943.00

6 07/05/2018

8TH

STATEMENT 107 124035 250.00

7 23/05/2018 9TH STATEMENT 123 124051 166.00



8 05/06/2018 10TH STATEMENT 132 124062 478.00

9 17/07/2018

11TH

STATEMENT 150 124080 738.00

10 17/07/2018

12TH

STATEMENT 153 124084 600.00

11 14/08/2018

13TH

STATEMENT 206 899645 257.00

12 27/09/2018

14TH

STATEMENT 243 899686 349.00

13 10/10/2018 16TH STATEMENT 250 899694 659.00

14 15/10/2018

17TH

STATEMENT 252 899697 1,465.00

15 08/11/2018

19TH

STATEMENT 284 444431 350.00

16 08/11/2018

20TH

STATEMENT 285 444432 183.00

17 26/11/2018

21ST

STATEMENT 293 444441 355.00

18 10/12/2018 22ND STATEMENT 294 444442 1,337.00

19 14/02/2018

Invigilation

Team 43 920567 3,312.00

20 23/02/2018 SSNIT 49 920575 459.00

21 28-03-2018 Fred Tetteh 79 124006 1,000.00

22 23-05-2018

Ghana

Revenue

Authority 111 124039 311.79

23 14-08-2018

Invigilation

Team 192 899628 4,104.00

24 23-08-2018 Barbara N. A. Tetteh 214 899657 800.00

25 26-10-2018

Ghana

Revenue

Authority 258 444405 311.79

Total

20,933.58

1041. Further review of accountable imprests totalling GH¢10,416

granted to the Registrar and the Accounts Officer had an

outstanding balance of GH¢4,236.50 as only GH¢6,179.50 had been

accounted for. Details are shown in the Table 105.



Table 105: Imprest not fully accounted

Date PV No.

Chq. No.

Description

Amount on payment voucher

GH¢

Amount Accounted

For GH¢

Outstanding balance

GH¢

04-04-2018 80 124007 Imprest for Programme

5,000.00 2,726.00 2,274.00

19-12-2018 307 444456 Hampers 5,416.00 3,453.50 1,962.50

Total 10,416.00 6,179.50 4,236.50

1042. We were unable to authenticate the validity of the cash

withdrawals; the situation could lead to loss of cash to the Institute

when inappropriate payments are made.

1043. We advised the Spending Officer to ensure that the amount

is properly accounted for.

Uncompetitive Procurement – GH¢414,690.03

1044. Section 43(1) of the Public Procurement Act, 2003 (Act 663)

states “the procurement entity shall request for quotations from as

many suppliers or contractors as practicable but shall compare

quotations from at least three different sources that should not be

related in terms of ownership, shareholding or directorship and the

principles of conflict of Interest shall apply between the procurement

entities and their members and the different price quotation

sources.”

1045. We observed that contrary to this section, Management

procured goods and services worth GH¢414,690.03 without

requesting for more than one quotation or seeking approval from the

Public Procurement Board for single sourcing as mandated by

Section 40(2) of Act 663. Details as per table 106.



Table 106: Goods procured without alternative quotations

Date Beneficiary Particulars PV CHQ NO. TOTAL

GH¢

08-01-2018 PHILECOM SOLUTIONS

WEBSITE DESIGN AND HOSTING BY PHILEMON SOL. 1 920522

3,330.00

08-01-2018 ROTMAN CONSULT

WEBSITE DOMAIN HOSTING 2 920523

940.00

08-01-2018 LINKWORLD SOLUTIONS LTD

CATRIDGES BOUGHT

3 920524 2,319.60

08-01-2018 XRON COMPUTERS & ACC.

LAPTOP FOR REGISTRAR

7 920528 3,100.00

08-01-2018 KINGDOM BOOKS

BOOKLET FOR EXAMS

14 920535 2,000.00

08-01-2018 AFRICAN CENTRE FOR EDU. SERVICES

VENUE FOR EXAMS 16 920538 3,052.50

17/1/2018 EMMANUEL KWAKU ADOFO

ACCESSORIES 19 920541 1,410.00


SERVICING OF COMPUTERS

22 920559 1,674.25

17/1/2018 ORCHID HOSP. MGT. SERVICES

VENUE & REFRESHMENT FOR MEETING

24 920546 1,347.88


SERVICING ON REGITRAR'S LAPTOP

26 920548 500.00

29/01/2018 PAGE DESIGNS LTD

STUDENT ID 34 920557 3,288.00


CATRIDGES BOUGHT

42 920566 1,184.50

12-03-2018 ORCHID HOSP. MGT. SERVICES

VENUE & LUNCH FOR MEETING

59 920586 1,234.90

19-03-2018 MEDIA EXCELLENCE

CITG BRANDED FOR INDUCTION

63 920590 1,443.00


VENUE & LUNCH FOR MEETING

70 920597 1,234.90


IMAGE DRUM FOR PRINTER

73 920600 1,133.00

27-03-2018 CLASSIQUE

PLUS

BAGS FOR

INDUCTION

74 124001

3,653.75

28-03-2018 PAGE DESIGNS LTD

PRINTING OF CERTIFICATES

77 124004 340.00


NOTEPADS & PENS 78 124005 1,082.25

12-04-2018 LUV FM KUMASI STUDENTS FORUM AT LUV FM

85 124012 1,600.00




COUNCIL MEETING VENUE

87 124014 3,233.16


VENUE & REFRESHMENT

88 124015 7,868.12

23-05-2018 CLASSIQUE PLUS

DEPOSIT FOR BAGS 112 124040 15,000.00


DEPOSIT FOR ATC ACCOMMODATION

113 124041 5,000.00

23-05-2018 ORCHID HOSP.

MGT. SERVICES

DEPOSIT FOR ATC

VENUE

114 124042

10,000.00

23-05-2018 PHILECOM SOLUTIONS

DESIGN OF WEBSITE FOR ATC

115 124043 752.00

23-05-2018 DANNY DESIGNS LETTERHEAD PRINTED

118 124046 1,950.00


PRINTING OF CERTIFICATES

119 124047 610.00


BRANDING OF CERTIFICATES

FOLDERS

120 124048 544.00

23-05-2018 COBBY PHOTOS PICTURE COVERAGE

121 124049 1,988.75

01-06-2018 INST. OF AFRICAN STUDIES

VENUE FOR AGM 127 124056 1,104.00


DESIGN & PRINT FOR ATC FLERS & SPONSORSHIP PACK.

128 124057 4,070.00


DEPOSIT FOR NOTEPADS & PENS

129 124058 3,047.00


VENUE FOR MEETING

138 124068 1,553.37


1ST DEPOSIT FOR VENUE

142 124072 10,000.00


2ND DEPOSIT FOR ATC VENUE

143 124073 10,000.00

17-07-2018 AFRICAN CENTRE FOR EDU. SERVICES

HIRING OF HALL FOR EXAMS

146 124076 3,515.00

17-07-2018 SEAWELD TRAVELS LTD

AIRTICKECT FOR ATC & TP

RESOURCE PERSON

151 124081 6,837.00


1ST DEPOSIT FOR T'SHIRTS

154 124085 8,875.00


2ND DEPOSIT FOR ATC NOTEPADS & PENS

155 124086 2,702.50




2ND DEPOSIT FOR BAGS

158 124089 10,000.00

20-07-2018 ALISA HOTELS 1ST DEPOSIT FOR VENUE

162 124094 30,000.00


2ND DEPOSIT FOR T'SHIRTS

163 124095 1,125.00

03-08-2018 ATTC VENUE FOR THE PROGRAMME

173 899608 1,440.00

03-08-2018 LINKWORLD

SOLUTIONS LTD

CATRIDGES

BOUGHT

174 899609 3,700.00


FINAL PAYMENT FOR NOTEPADS & PENS

183 899619 2,297.50

14-08-2018 ALISA HOTELS 2ND DEPOSIT FOR

DINNER VENUE

184 899620

20,000.00


3RD DEPOSIT FOR ATC VENUE

185 899621 10,000.00

14-08-2018 ORCHID HOSP.

MGT. SERVICES

2ND DEPOSIT FOR

TP WORKSHOP

186 899622

10,000.00


FINAL PAYMENT FOR ATC BAGS

187 899623 11,537.00


FINAL PAYMENT FOR T' SHIRTS

188 899624 1,909.00


NAMETAGS FOR ATC & TP

189 899625 3,900.00


COST OF SPINNING 189 899625 600.00

14-08-2018 COBBY PHOTOS 1ST DEPOSIT FOR VIDEOS

190 899626 3,000.00

14-08-2018 PADUA FLORIST 1ST DEPOSIT FOR DECORATIONS

193 899637 2,000.00

14-08-2018 PAGE DESIGNS LTD TAGS FOR BAGS 196 899632

956.62


PRINTING OF ID CARDS 196 899632 3,525.00

14-08-2018 PAGE DESIGNS LTD BANNERS FOR ATC 200 899639 2,904.50


ADVERT DESIGN FOR ATC 201 899640

400.00

14-08-2018 PAGE DESIGNS LTD ATC CERTIFICATES 201 899640 5,490.00


ADVERT DESIGN FOR ATC 201 899640

400.00


DEPOSIT FOR TP FOLDER 203 899642 1,468.75

14-08-2018 PAGE DESIGNS LTD TP CERTIFICATE 203 899642 1,942.50



23-08-2018 MAMAA A. ANTI

DESIGN AND PRINTING OF NAMETAGS 209 899648

3,006.25

23-08-2018 MAMAA A. ANTI

DESIGN AND PRINTING OF NAMETAGS FOR TP 209 899648

693.75

23-08-2018 BUCKPRESS LTD ATC BROCHURE 213 899656 6,352.63

23-08-2018

PAGE DESIGNS

LTD

FINAL PAYMENT

FOR TP FOLDER 215 899658

2,000.00

28-08-2018 EMMANUEL KWAKU ADOFO

REPAIRS OF COMPUTERS 225 899670 1,320.00

28-08-2018 ORCHID HOSP. MGT. SERVICES VENUE COST 226 899671

1,427.81

05-09-2018

ORCHID HOSP.

MGT. SERVICES MEETING VENUE 228 899675

2,019.64

05-09-2018 PADUA FLORIST DECORATION FOR DINNER 232 899679

775.00


FINAL PAYMENT FOR ATC ACCOMMODATION 233 899680

3,800.83

12-09-2018

KLASSIEK AWARDS & GIFT LTD

PLAQUES FOR ATC AWARDS 234 1

13,100.00


TRANSFER PRICING WORKSHOP VENUE & REFRESHMENT 235 2

10,910.84


4TH DEPOSIT FOR ATC VENUE & REFRESHMENT 236 3

19,089.16


REPAIRS OF COMPUTERS 237 4 1,193.20

27-09-2018 COBBY PHOTOS

FINAL PAYMENT FOR ATC VIDEO & PICTURES 242 5

9,487.50


PRINTING OF PRACTSING CERTIFICATES 251 899696

1,507.75


COST OF ATC POSTERS 253 899698

902.00


1,278.57


1,512.64


STATIONERY BOUGHT 266 444413

900.00


DEPOSIT FOR ATC VENUE 281 444428

23,311.66


DEPOSIT FOR ATC VENUE 282 444429

15,000.00



13-11-2018

THE BEST FURNITURE CONS.

DEPOSIT FOR OFFICE CUPBOARD 283 444433

700.00


REPAIRS OF COMPUTERS 291 444439

640.00

10-12-2018

THE BEST FURNITURE CONS.

FINAL PAYMENT FOR OFFICE CUPBOARD 297 444445

300.00


ATC VENUE FINAL PAYMENT 299 444447

25,000.00

11-12-2018 GOLDEN TULIP

VENUE & REFRESHMENT FOR COUNCIL LUNCHEON 300 444448

5,346.50

414,690.03

1046. This resulted from purchases from the open market

1047. The lapses could result in goods being purchased at inflated

costs, thereby undermining the concept of value for money.

1048. We advised Management to adhere to the requirements of this

section to ensure fairness, transparency and value for money in its

future procurements.

1049. Management responded that they taken note of the audit

recommendations and will comply in subsequent procurements.

Weak Internal Control Environment 1050. Section 7 (2) of the Public Financial Management Act, (Act

921) requires a Principal Spending Officer to establish an effective

system of risk management, internal control and internal audit in

respect of the resources and transactions of the covered entity.

1051. Our review of the Institute’s policies and manuals showed that

it did not have a policy to identify, assess and manage risk that may

arise in the course of its operations.



1052. We further observed that there was no Internal Audit function

for evaluating and reporting on internal controls applicable to risks

affecting the Institute.

1053. Failure to have this policy means the Institute would not be

able to manage significant risks that may adversely impact the

attainment of key organisational objectives.

1054. We recommended that Management should develope a risk

management policy so as to mitigate significant risks that affects its

operations.

1055. We also advised that an Internal Audit unit be established to

ensure that governance, risk Management and internal control

processes are operating effectively.

1056. Management replied that they have accepted the audit

recommendations for compliance.

Fuel purchased not recorded in the log book - GH¢14,915.00

1057. Regulation 1 of the Financial Administration Regulations

(FAR) 2004, L.I 1802 requires any public officer who is responsible

for the conduct of financial business on behalf of government to keep

proper records for inspection when called upon to do so by the


General or any officer authorised by them.

1058. We noted from our examination of supporting documents for

recoupment of imprest that a total of GH¢14,915.00 paid out of

general imprest and used to purchase fuel into the Institute’s vehicle

were not recorded into the log book. Details are as shown in the table

107.



Table 107: Fuel not logged into log book

Description

PV

Number

Cheque

No. Date

Amount

GH¢

1st Statement 29 920552 24/01/2018 640

2nd Statement 41 920565 01/02/2018 1,025

3rd Statement 52 920579 26/02/2018 850

4th Statement 58 920585 07/03/2018 450

5th Statement 62 920589 19/03/2018 400

6th Statement 81 124008 04/04/2018 80

8th Statement 107 124035 07/05/2018 400

9th Statement 123 124051 23/05/2018 1,010

10th Statement 132 124062 05/06/2018 750

11th Statement 150 124080 17/07/2018 750

12th Statement 153 124084 17/07/2018 600

13th Statement 206 899645 14/08/2018 1,290

15th Statement 248 899692 10/10/2018 1,300

16th Statement 250 899694 10/10/2018 1,220

17th Statement 252 899697 15/10/2018 1,450

18th Statement 264 444411 26/10/2018 100

19th Statement 284 444431 08/11/2018 1,600

20th Statement 285 444432 08/11/2018 100

21st Statement 293 444441 26/11/2018 500

22nd Statement 294 444442 10/12/2018 400

Total 14,915

1059. Weak supervision over the recording and keeping of the daily

vehicle log book accounted for this lapse and this practice could lead

to diversion of the fuel for personal use if not checked.

1060. We recommended to Management to ensure that the log book

is updated in line with the Regulations.

1061. Management responded that audit recommendation is well

noted.

Unaccounted Stores-GH¢116,520.98

1062. Regulation 183 of the FAR, 2004 (L.I 1802) stipulates that a

head of department shall be accountable for the proper care, custody



and use of government stores from the time of acquisition until they

have been used or otherwise disposed of.

1063. Contrary to the Regulation stated above, Management

procured various items amounting to GH¢116,520.98 but did not

record them into the respective store ledgers. Details shown in table

108.

Table 108: Unaccounted Stores

Date Beneficiary Particulars PV Chq No.

Total

GH¢

08-01-2018

Linkworld

Solutions Ltd

Cartridges

Bought 3 920524 2,319.60

08-01-2018

Xron Computers &

Acc.

Laptop For

Registrar 7 920528 3,100.00

08-01-2018 Kingdom Books

Booklet For

Exams 14 920535 2,000.00

29/01/2018

Page Designs

Ltd Student Id 34 920557 3,288.00

01-02-2018

Linkworld

Solutions Ltd

Cartridges

Bought 42 920566 1,184.50

27-03-2018 Linkworld Solutions Ltd

Image Drum For Printer 73 920600 1,133.00

27-03-2018 Classique Plus

Bags For

Induction 74 124001 3,653.75

28-03-2018

Page Designs

Ltd Notepads & Pens 78 124005 1,082.25

23-05-2018 Classique Plus Deposit For Bags 112 124040 15,000.00

23-05-2018 Danny Designs

Letterhead

Printed 118 124046 1,950.00

01-06-2018 Page Designs Ltd

Design & Print

For ATC Flyers &

Sponsorship Pack. 128 124057

4,070.00

01-06-2018

Page Designs

Ltd

Deposit For

Notepads & Pens 129 124058 3,047.00

17-07-2018

Media

Excellence

1st Deposit For

T'-shirts 154 124085 8,875.00

17-07-2018

Page Designs

Ltd

2nd Deposit For

ATC Notepads &

Pens 155 124086

2,702.50



17-07-2018 Classique Plus 2nd Deposit For Bags 158 124089 10,000.00

24-07-2018

Media

Excellence

2nd Deposit For

T'-shirts 163 124095 1,125.00

14-08-2018

Page Designs

Ltd

Final Payment

For Notepads &

Pens 183 899619

2,297.50

14-08-2018

Media

Excellence

Final Payment

For T' Shirts 188 899624 1,909.00

14-08-2018 Kingdom Books Nametags For ATC & TP 189 899625 3,900.00

14-08-2018

Page Designs

Ltd

Deposit For TP

Folder 203 899642 1,468.75

14-08-2018

Page Designs

Ltd TP Certificate 203 899642 1,942.50

23-08-2018 Buckpress Ltd ATC Brochure 213 899656 6,352.63

23-08-2018

Page Designs

Ltd

Final Payment

For TP Folder 215 899658 2,000.00

29-10-2018

Linkworld

Solutions Ltd

Stationery

Bought 266 444413 900.00

13-11-2018

The Best

Furniture Cons.

Deposit For

Office Cupboard 283 444433 700.00

10-12-2018

The Best

Furniture Cons.

Final Payment For Office

Cupboard 297 444445

300.00

08-01-2018 Can-West Ltd

2 Desktop

Computers 4 920525 5,300.00

08-01-2018

Linkworld

Solutions Ltd Printers 5 920526 1,300.00

08-01-2018

Linkworld

Solutions Ltd Shredder 5 920526 1,028.00

08-01-2018 Can-West Ltd Printers 6 920527 800.00


Safe Bought For

Weija Office 8 920529 6,000.00

08-01-2018

Solatek

Electronics

Stabilizers

Bought 9 920530 2,987.00

08-01-2018 Page Designs Ltd Answer Booklets 10 920531 9,805.00


Furniture Bought

For Registrar's

Office 17 920539

3,000.00

Total 116,520.98



1064. Management did not adhere to our previous audit

recommendation to maintain these store ledgers.

1065. Store items not properly documented and accounted for could

be subjected to pilfering. It could also result in short supply of goods

and in some cases, goods may not be supplied at all.

1066. We recommended that Management should provide evidence

that these items were received and used in the interest of the

Institute.

1067. Management in their response said that payment vouchers

numbers; 74, 78, 84, 128, 129, 154, 155, 158, 163, 183, 188, 189,

203, 213 & 215 which sum up to GH¢ 69,425.88 were expenses that

were Incurred specially for the Membership Induction, Transfer

Pricing Workshop and the Annual International Tax Conference

where the souvenirs were used while the rest of the payment

vouchers which sum up to GH¢47,095.10 were incurred for office

related expenses of which most of them were in the office for physical

verification by the audit team. Nevertheless, Management have

noted the recommendations for future purchases.

NATIONAL BOARD FOR PROFESSIONAL AND TECHNICIAN

EXAMINATIONS (NABPTEX)

Introduction 1068. This report relates to the audited accounts of the National

Board for Professional and Technician Examinations for the three

years ending 31 December, 2018.



Operational Results 1069. The 2018 financial year of NABPTEX ended with a surplus of

GH¢1,232,877.94 as compared with the surplus of

GH¢1,024,128.64 in 2017. A summary of the Income and

Expenditure for the year are shown in table 109.

Table 109: Income and Expenditure for the year 2018

Incomes 2018 GH¢

2017 GH¢

DIFF GH¢

% Change

Government

Subventions 3,290,301.99 2,695,365.12 594,936.87 22.07

Other Income 6,463,326.97 4,534,507.00 1,928,819.97 42.53

Total 9,753,628.96 7,229,872.12 2,523,756.84 34.91

Expenditure

Compensation for

Employees 4,067,942.36 2,727,155.20 1,340,787.16 49.16

Goods and Services 4,787,494.60 3,478,588.28 1,308,906.32 37.63

Total 8,855,436.96 6,205,743.48 2,649,693.48 42.70

Income Surplus

/(Deficit) 898,192.00 1,024,128.64 (125,936.64) (12.30)

1070. Total Income for NABPTEX increased by GH¢2,523,756.84

representing 35% from GH¢7,229,872.12 in 2017 to

GH¢9,753,628.96 in 2018. The above increase was largely due to

increase in other income by GH¢1,928,819.97 representing 42.53%

from GH¢4,534,507.00 in 2017 to GH¢6,463,326.96 in 2018.

1071. Total Expenditure also increased by GH¢2,649,693.48

representing 42.70% from GH¢6,205,743.48 in 2017 to

GH¢8,855,436.96 in 2018. This could be attributable to Increase in

expenditure for Goods & Services by GH¢1,308,906.32 representing

38.0% from GH¢3,478,588.28 in 2017 to GH¢4,787,494.60 in 2018.

Financial Position

1072. The Board’s financial position as at 31 December 2018 are

shown in Table 110.




2018

GH¢

2017

GH¢

Increase

GH¢

%

Non-Current Assets 1,123,700.57 824,082.34 299,618.23 36.35

Current Assets 1,656,945.78 1,058,372.01 598,573.77 56.56

Total Assets 2,780,646.35 1,882,454.35 898,192.00 47.71

Current Liabilities - - - -

Net Assets 2,780,646.35 1,882,454.35 898,192.00 47.71

1073. Non-Current Assets increased by GH¢299,618.23

representing 36% from GH¢824,082.34 in 2017 to

GH¢1,123,700.57 in 2018. The increase is attributed to acquisition

of Non-Current Assets in the year under review.

1074. Current Assets increased by GH¢598,573.77 representing

56.56% from GH¢1,058,372.01 in 2017 to GH¢1,656,945.78 in

2018.

1075. The year under review showed that NAPTEX is very solvent.

MANAGEMENT ISSUES Inaccurate Database - GH¢165,240.00

1076. Regulation 17(a) of the Financial Administration Regulations

states that a head of Department shall ensure that all Non-Tax

Revenue are efficiently collected. Best practice requires that an

accurate data base of student enrollment for all the institutions are

kept to ensure that all revenue due to NABPTEX are collected and

accounted for.

1077. As part of our audit, we visited (8) Technical Universities and

Two (2) Polytechnics in the country and found that students

enrolment figures in three (3) Technical Universities and one (1)



Polytechnic kept by NABPTEX, were inconsistent with actual

enrolment at the Institutions. Details are shown in table 111.

Table 111: Inaccurate Database

No. Institution Year Enrolment from NAPTEX

Enrolment from Institutions

Diff Rate Per Student GH¢

Amt due from Inst GH¢

1. Accra Tech Univ.

2016/17 6,286 11,348 5,062 30.00 151,860.00

2. Koforidua Tech Univ

2016/17

4,893

5,268

375

30.00

11,250.00

3. Cape Coast Tech Univ.

2016/17

-

2,665

-

30.00

-

4. Takoradi Tech Univ.

2016/17 6,756 6,596 - 30.00 -

5. Ho Tech Univ 2016/17 2,960 2,960 - 30.00 -

6. Kumasi Tech Univ

2016/17 - 7,484 - 30.00 -

7. Sunyani Tech Univ

2016/17 - 2,509 - 30.00 -

8. Tamale Tech Univ

2016/17 3,147 3,147 - 30.00 -

9. Bolgatanga Poly

2016/17 1,216 1,287 71 30.00 2,130.00

10. Wa Poly 2016/17 - 729 - 30.00 -

Total 165,240.00

1078. In effect, revenue due NABPTEX totalling GH¢165,240.00

from these institutions could not be collected.

1079. We attributed the above situation to failure on the part of

Management to put an effective system in place in order to gather

accurate data on the various institutions under NABPTEX.

1080. We recommended to Management to ensure that the above

stated amounts are collected from the three (3) Institutions as

depicted in the above table, while necessary steps are taken to put

the right system in place for gathering accurate data on all the

institutions to ensure that all revenue due from them are

appropriately collected.



1081. In response, Management stated that they are working with

an IT Firm to computerise its operations in order to address issues

of data inconsistencies between NABPTEX and its major partners

including Technical Universities and Polytechnics.

Payment for Software not fully delivered- GH¢215,695.00

1082. Regulation 39 (1) of Financial Administration Regulations,

2004, (L.I.1802) enjoins head of department to ensure that moneys

are utilised in a manner that secures both optimum value for money

and the intention of Parliament. (2) The head of the accounts section

of a department shall control the disbursements of funds and ensure

that (c) Transactions are properly authenticated to show that

amounts are due and payable; and (d) Any order for disbursements

that does not meet these requirements is rejected.

1083. NABPTEX engaged the services of MAK-EDU Consult Limited

to develop and implement a student information management

system and E-learning solutions and made part payments totalling

GH¢215,695.00 out of a Contract price of GH¢345,356.00 to MAK-

EDU Consult Limited, though the basic deliverables required in the

contract agreement had not been executed.

1084. This anomaly happened because competitive procurement

processes was not followed.

1085. The project is abandoned and the money which could be used

for other activity is locked up.

1086. We recommended that the Board should pursue MAK- EDU

to refund the amount of GH¢215,695.00 paid to him or develop all

the modules for NABPTEX to be able to utilize the software.



1087. Management responded that NABPTEX procured the services

of Mak Edu Consult on 22nd June 2016, to implement a Student

Management Solution. Over the period the project encountered

certain unanticipated challenges peculiar to IT projects

implementation. Attempts have been made by Management and

Council to address the challenges in an amicable manner, when Mak

Edu Consult threatened to seek legal action.

1088. The Council through its Innovation and Resource Mobilization

Committee is using every means possible to address the gaps since

the system has not been able to deliver what it promised.

1089. Meanwhile the IT department of NABPTEX is working hard to

rectify any anomaly if possible.

Non–compliance with Supreme Court Judgement

1090. Article 129 (1) of 1992 Republican Constitution of Ghana

states that the Supreme Court shall be the final court of appeal and

shall have such appellate and other jurisdiction as may be conferred

on it by this Constitution or by any other law.

1091. Article 129(4) further states that for the purposes of hearing

and determining a matter within its jurisdiction and the

amendment, execution or the enforcement of a judgment or order

made on any matter, and for the purposes of any other authority,

expressly or by necessary implication given to the Supreme Court by

this Constitution or any other law, the Supreme Court shall have all

the powers, authority and jurisdiction vested in any court

established by this Constitution or any other law.

1092. The judgement of the Supreme Court of Ghana dated 9th May,

2018 quashing the termination of appointments of Mr. Francis



Owusu – Mensah and Mr. Stephen Onwona Adjapong at the

NABPTEX has not been complied with. The Court declared that

plaintiffs/appellants should be reinstated into the Service of

NABPTEX and be restored to their normal salaries and allowances

and to be paid all their salaries and allowances arrears due them

with effect from 28th November, 2013.

1093. The Council did not comply with the decision of the Supreme

Court to reinstate them and restore their salaries and allowances.

1094. NABPTEX could be charged with Contempt of Court. In

addition, pay interest on Plaintiffs’ salaries and allowances in

arrears. This could become a judgement debt for NABPTEX.

1095. We recommended that Council in consultation with the

Minister of Education and relevant institutions ensure compliance

with the judgement of the Supreme Court of Ghana.

1096. Management responded that they have noted our observation

and recommendations. Steps are being taken in consultation with

the Ministry of Education to implement the court’s decision.

Expenditure in Excess of Approved Budgets-GH¢ 3,861,781.00

1097. Regulation 170(2) of the FAR, 2004 (LI 1802) states,

“Expenditure of a department shall not exceed the expenditure

estimates in the budget approved by Parliament”.

1098. We noted from our comparison of the budgets approved by

Parliament for NABPTEX with the actual expenditure incurred by

the Board that it over spent its budget estimates for 2017 and 2018

by GH¢1,641,185.28 and GH¢2,220,595.70 respectively, which

amounted to a total of GH¢3,861,780.98. We further noted that, the



excess expenditure over the budget’s ranges from 80% to 90 %. The

details of the excess expenditure are shown in table 112.

Table 112: Expenditure in Excess of Approved Budgets

Period Approved Budget Amount

Actual Expenditure Incurred

Differences % over spent

2017 1,837,403 3,478,588.2

8

1,641,185.28 89.3

2018 2,476,983 4,697,578.7

0

2,220,595.70 89.7

Total 3,861,780.98

1099. The anomaly occurred because Management used the

NABPTEX Council’s approved budget to control the expenditure

instead of what was approved by Parliament.

1100. We urged Management to use the appropriated estimate from

Parliament to control disbursement of funds.

1101. Management responded that NABPTEX budget is a

combination of funds received for the conduct of examinations (IGF)

and the compensation and other cost absorbed by government

(GOG). Examinations expenditures are projected to speak to the

expected number of candidates.

1102. In addition, the examinations are time bound and therefore

exams fees (IGF) received are used to run the examination.

NABPTEX comes under agencies of Education Ministry whose IGF is

not capped by Ministry of Finance and are used for the conduct of

its activities including examinations. The amount stated as the

excess expenditure is the Exams fees (IGF) received for examination

purposes and were used as such.

Wasteful Expenditure on maintenance of vehicle-GH¢26,527.90 1103. Regulation 39(1) of Financial Administration Regulations,

2004, L.I 1802 stipulates that a head of department shall ensure



that moneys are utilised in a manner that secures both optimum

value for money and the intention of Parliament.

1104. During the review of files and inspection of the Board’s

vehicles, we noted that NABPTEX spent an amount of GHC

26,527.90 to replace an Engine of a vehicle number GM 2318-14.

The Vehicle has been grounded at Lekmas Motors’ garage since 19th

September 2018. However, our follow-up at the garage disclosed that

Auto Depo has taken over the operations of Lekmas. We found that

the senior chief Driver who is the technical person was not consulted

before decisions were taken to repair the vehicle.

1105. The wasteful expenditure was caused by failure to exercise

due diligence in procuring the services of a competent motor garage

in servicing NABPTEX’s fleet of vehicles.

1106. NABPTEX did not obtain value for money and the action may

result in a financial loss of GH¢26,527.90 to the Board.

1107. Management should as early as possible investigate and

possibly cause the eventual culprit to bear the cost of repairing the

vehicle to its useful state. NABPTEX should exercise due diligence in

future procurement for maintenance of vehicles.

1108. Management Responded that they have taken note of our

recommendation and will fix the car and bring it back to the pool

and inform our office accordingly for verification.

Unapproved Software 1109. Section 11(3) and (5) of Audit Service Act 2000 requires that,

the public accounts of Ghana and of all persons and institutions

referred to in subsection (I) including computerized financial and



to review by the Auditor-General.



1110. All financial and accounting systems in respect of the

accounts provided under subsection (I) shall be subject to prior

approval of the Auditor-General and any change in any such system

shall be notified to the Auditor-General and shall be subject to prior

approval before implementation.

1111. We noted during the review of NABPTEX’s financial and

accounting systems that Computer soft wares being used by the

Board have not been approved by Auditor-General as required by

law. Details of the computer Soft wares are shown in table 113.

Table 113: Unapproved Software

No

Name of Software

Purpose

1 MARK EDU SOLUTION Moderation

1112. The Board’s Council did not obtain approval from Auditor –

General before procuring and installing these soft wares. There is no

assurance that efficiency and value for money have been achieved.

1113. NABPTEX may not be able to ensure provision of appropriate

audit trail for review of the computerized financial and accounting

systems in use.

1114. We recommended that the Council of the Board should

ensure to seek approval from the Auditor-General.

1115. Management accepted our recommendation for compliance.



NATIONAL ACCREDITATION BOARD

Introduction


Accreditation Board for the years ending 31 December 2015 and

2016.

Operational Results

1117. The year 2016 ended with surplus of GH¢1,133,012.12

representing 24.4% decrease of the previous year’s surplus of

GH¢1,498,375.30. Details are shown in Table 114.


Income 2016

GH¢

2015

GH¢

%

Change

GoG-Subvention 3,187,663.32 4,014,213.05 (20.6)

Internally Generated Fund 6,599,628.21 5,140,442.20 28.4

Other Income 848,456.79 935,555.53 (9.3)

Total Income 10,635,748.32 10,090,210.78 5.4

Expenditure

Compensation for

Employees 3,880,711.47 4,042,515.91 (4.0)

Goods and Services 5,622,024.73 4,549,319.57 23.6

Total Expenditure 9,502,736.20 8,591,835.48 10.6

Surplus/(Deficit) 1,133,012.12 1,498,375.30 (24.4)

1118. Total income moved from GH¢10,090,210.78 in 2015 to

GH¢10,635,748.32 in 2016 representing an increase of 5.4 % over

the period. The upward movement was largely due to the increase in

the Internally Generated Funds which went up by 28.4%.


GH¢8,591,835.48 in 2015 to GH¢9,502,736.20 in 2016. This could

be attributed to an increase of 23.6% in Goods and Services which



comprise of Panel Members Allowance and other Administrative Cost,

moving from GH¢4,549,319.57 in 2015 to GH¢5,622,024.73 in 2016.

Financial Position

1120. The Board’s financial position as at 31 December 2016 is

shown in Table Table 115.


Items 2016

GH¢

2015

GH¢

%

Change

Non-Current Assets 1,551,730.50 1,433,624.34 8.2

Current Assets 7,808,018.59 6,079,498.85 28.4

Current Liabilities 1,003,363.78 289,750.00 246.3

Net Assets 8,356,385.31 7,223,373.19 15.7


1121. Non-Current Assets increased by GH¢118,106.16

representing 8.2% from GH¢1,433,624.34 in 2015 to 1,551,730.50

in 2016. This was largely due to additional assets acquired during

the current year.

1122. Current Assets went up by 28.4%, from GH¢6,079,498.85 in

2015 to GH¢7,808,018.59 in 2016. The rise was due to increase in

Institutional Debtors by 210% from GH¢210,000.00 in 2015 to

GH¢651,000.00 in 2016.

1123. Current Liabilities recorded an increase of 246.3% from

GH¢289,750.00 in 2015 to GH¢1,003,363.78 in 2016. This was

mainly due to Deferred Revenue and Creditors comprising of

outstanding Board Members allowance of GH¢250,622.64 and Panel

Members allowance of GH¢186,606.98 due in 2016.

1124. The liquidity position as measured by a current ratio of 7.8:1

in 2016 as compared with 20.9:1 in 2015 financial years even



though showed a substantial decrease, but still indicating the ability

of the Board to effectively meet its short-term obligations as and

when they fall due. We advised Management to pursue the recovery

of the Institutional Debtors, in order to improve on its liquidity.

MANAGEMENT ISSUES

Failure to obtain Parliamentary approval for fees and charges


2004 LI 1802 states “A head of department responsible for collecting

various types of fees and charges shall review annually the

administrative efficiency of collection, the accuracy of past estimates

and the relevance of rates, fees and charges to current economic

conditions and submit proposals through the appropriate Sector

Minister to Parliament for approval.”

1126. We noted that pursuant to Regulations 2(b), 5(4), 22(2) and

23(4) of LI 1984 (2010) of the National Accreditation Board

Regulations, the Board reviewed its service charges at the 92nd

Board meeting. These upward adjustments of its service charges

were effective 1st October 2013. However, we could not sight any

documentary evidence that the reviewed charges have been

submitted to Parliament for approval as mandated by the regulation

stated above.

1127. Management’s failure to adhere to the regulation above

resulted in this anomaly.

1128. The Board stands the risk of a legal challenge if the reviewed

fees do not receive parliamentary approval.

1129. We recommended that Management should take steps to get

Parliamentary approval in order to avoid any legal challenge.




Failure to prosecute offenders

1131. Section 24 (a)(b) and(c) of the National Accreditation Board

Act 2007, Act 744 states “a person who;

Operates an unaccredited institution

Run unaccredited programme

Advertises an unaccredited institution or an unaccredited

programme, commits an offence and is liable on summary

conviction to a fine of not more than three hundred penalty

units or a term of imprisonment of not more than two years or

to both”.

1132. We noted that contrary to these Provisions of the Act, the

Board did not prosecute those who flouted the law by advertising

operating and running of unaccredited Institutions and

Programmes. We also noted that the Board instead used its limited

resources to pay for announcement warning the public against these

unaccredited institutions. Table 116 shows some identified

unaccredited institutions.

Table 116: Failure to prosecute offenders

Identified Unaccredited Institutions

Name of The Institutions Location

Alpha College of Technology Ring Road Central

Rama University Oyarifa

Chartered Institute of Certified Tax Accountants

BMFI. University College or Gulf City College

Golden Star College of Education Kumasi

Cambridge International College

1133. Management stated that Board itself cannot sue nor be sued

but at best can only warn institutions and the general public by way

of advertisement.



1134. Failure to prosecute those offenders could lead to many more

unaccredited and fictitious institutions springing up. This situation

could also put pressure on the finances of the Board since funds

have to be committed for counter advertisements against those

illegal institutions.

1135. We recommended that the Board should ensure compliance

with the Act by taking appropriate action against recalcitrant

institutions to deter others from the above illegality.

1136. Management stated that the issue would be addressed.

NATIONAL COUNCIL FOR TERTIARY EDUCATION


Council for Tertiary Education for the years ending 31 December

2016 and 2017.

Operational Results

1138. The operations of the Council for the year under review

registered an improvement of 2.71% from a 2016 deficit of

GH¢1,000,322 as against GH¢973,195 for 2017. Table 6 provides

the performance indicators for 2017 financial year. Details are

shown in table 117.


Income 2017

GH¢

2016

GH¢

%

Change

Subvention (Goods and Services)

1,774,719 2,662,791

(33.4)

Other Income 1,254,289 1,142,890 9.8

Tertiary Institution Transfer

841,777,383 682,260,314

23.4



Total Income 844,806,391 686,065,995 23.1

Expenditure

Personnel Emoluments 1,743,192 2,321,129 (24.9)

Goods and Services 2,259,012 2,484,874 (9.1)

Transfer to Tertiary Institutions

841,777,382 682,260,314 23.4


Surplus/(Deficit) (973,195) (1,000,322) (2.7)

1139. The Council’s Total Income increased by 23.1% over the period

under review from GH¢686,065,995 in 2016 to GH¢844,806,391 in

2017. The increase was due to receipt of Tertiary Institution Transfer

which increased from GH¢682,260,314 in 2016 to GH¢841,777,383

in 2017 representing 23.4%. Subvention however decreased by

33.4% in 2017 from GH¢2,662,791 in 2016 to GH¢1,774,719 in

2017.

1140. Total Expenditure rose by 23.1%, from GH¢687,066,317 in

2016 to GH¢845,779,586 in 2017. The increase was due to 23.4%

increase in Transfer to Tertiary Institutions which rose from

GH¢682,260,314 in 2016 to GH¢841,777,382 in 2017.

Financial Position 1141. This report relates to the audited accounts of the University

of Professional Studies for the years ending 31 December 2014 and

2018. Details are shown in table 118.

Table 118: Financial Position

2017 GH¢

2016 GH¢

% Change

Non-Current Assets 698,992 808,529 (13.6)

Current Assets 13,321,752 4,361,971 206.4


Net Assets (1,061,460) (110,263) 862.7




1142. Non-Current Assets of the Council decreased from

GH¢808,529 in 2016 to GH¢698,992 in 2017 representing 13.6%

fall. The decrease was due to depreciation charges for the year.

1143. Current Assets however, increased from GH¢4,361,971 in

2016 to GH¢13,321,752 in 2017 representing 206.4%. The growth

was mainly as a result of a 206.4% rise in Bank Balance from

GH¢4,336,660 in 2016 to GH¢13,285,453 in 2017.

1144. Current Liabilities rose from GH¢5,280,863 in 2016 to

GH¢15,082,204 in 2017 representing 185.6%. This was due to the

undisbursed Tertiary Institution Funds and Accounts Payable.

1145. The Council’s liquidity position as indicated by the current

ratio of 0.88:1, shows an improvement over that of the previous

year’s, [2016: 0.83:1] but it still indicates the Council’s inability to

meet short term obligations as and when they fall due.

1146. We advised Management to improve its liquidity position.

MANAGEMENT ISSUES

Misapplication of Trust Funds - GH¢2,653,887.76


(Act 921) states “The Minister may, on the request of a Principal

Spending Officer, execute a virement in respect of an amount of

money allocated to the covered entity of that Principal Spending

Officer”.

1148. Section 98 (1)(d) of the PFM Act, 2016 (Act 921) also states “A

person who contravenes or knowingly permits another person to

contravene a provision of this Act or the Regulations commits an



offence and where no penalty is provided for the offence, is liable on

summary conviction to a fine of not less than one hundred and fifty

penalty units and not more than two hundred and fifty penalty units

or to a term of imprisonment of not less than six months and not

more than two years or to both.

1149. Subsection (2)(b) of the same Section specifies “A person who

contravenes subsection (1) is, in addition to the penalty specified in

that subsection subject to disciplinary action by Government

including dismissal, demotion or suspension.

1150. We noted during our review of NCTE budget against its actual

expenditure for the periods 2016 and 2017 that, total amount of

GH¢2,653,887.76 was disbursed from the Council’s Trust Funds

without approval from Ministry of Finance. The amount was used

for the Council’s goods and services expenditures. However, the

Trust Funds were instituted purposely for transferring monies to the

Colleges of Education as government feeding and other grants to

students. Though Management intended to refund the amounts into

the account when the Council receives its goods and services

allocations from the government, the amounts were not refunded

when allocations were received. Details are shown in table 119.

Table 119: Funds Misapplied Date 2016

FUNDING/CHEQUE NUMBER

ACCOUNT TRANSFERRED

FROM

ACCOUNT RECEIVED

AMOUNT GH¢

REMARKS

14/9/2015 FEEDING GRANT

BOG 1 CONUCIL MEMBERS ALLOWANCE 3RD QUARTER

321,027.00 NOT REFUNDED


BOG 1 CONUCIL MEMBERS ALLOWANCE 4RD QUARTER 2015



BOG 2 COUNCIL MEMBERS




ALLOWANCE 3RD QUARTER 2015

25/10/2016 OPEN UNIVERSITY

BOG 1 BOG 2 OPERATIONS


22/11/2016 WA POLYTECHNIC



22/12/2016 WA POLYTECHNIC




041785



24/11/2016 WA POLYTECHECHNIC 041841-041850

BOG 1 MENSVIC HOTEL POLICY SUMMIT


3/10/2016 BOG 56 TRUST FUNDS






2016 Sub Total

1,732,993.54

1/4/2017 UNDISBURSED TERTIARY INST COMPENSATION CHQ 041886



9/3/2017 UNDISBUR

SED TERTIARY INST COMPENSATION CHQ

128133

BOG 56 BOG 2

OPERATIONS

200,000.00 NOT

REFUNDED

1/4/2017 BOG 1 FEEDING GRANT041889



28/6/2017 BOG 1 FEEDING





GRANT 041894

27/7/2017 BOG 1 FEEDING GRANT 041898









2017 Sub Total

920,894.22

Grand Total 2,653,887.76

1151. The year 2016 ended with surplus of GH¢1,133,012.12

representing 24.4% decrease of the previous year’s surplus of

GH¢1,498,375.30. Details are shown in Table 114.

1152. This action connotes misapplication of funds, which could

result in non-distribution of the feeding and other grants to the

beneficiaries. Besides, NCTE would have incurred expenditure to the

tune of GH¢2,653,887.76 outside its budget, if it is not replaced.

1153. We urged Management to transfer the GH¢2,653,887.76 back

to the Trust Funds, failing which the authorising and paying officers

shall be sanctioned in accordance with Section 98(1)(d) & (2)(b) of

the PFM. We also advised Management to seek for authorisation

from the Minister of Finance before any virement is made.

1154. Management accepted our recommendation and indicated

that the monies were used to service other pressing activities as the

goods and services allocations for the period were not forthcoming

with the understanding of replacing after receipts of the relevant

releases.



1155. However, as at the time of writing this report, Management

has not transferred the money into the Trust Fund. We therefore

reiterate our earlier recommendation for compliance.

Purchase of Accounting Software without Approval

1156. Section 11(5) of the Audit Service Act 2000, Act (584) States

“All financial and accounting systems in respect of the accounts

provided under subsection (1) shall be subject to prior approval of

the Auditor-General and any change in such system shall be notified

to the Auditor-General and shall be subject to prior approval before

implementation.” The Subsection (6) specifies “Any head of a public

Institution or other body subject to auditing by the Auditor-General

who fails to comply with subsection (5) is liable to be surcharged

with the cost of any loss occasioned by defective internal controls of

auditing.”

1157. Our review of the operational account of the Council showed

that the Council paid GH¢4,376.65 as service charges for renewal of

Accounting Software (Tally ERP 9) for 2016-2017 to IPMC. The

software was purchased in the year 2012. However, the Council did

not seek for approval from the Auditor-General before

implementation.

1158. The Finance officer did not advise Management on the

regulations pertaining to the acquisition of an accounting software.

1159. Consequently, we could not determine the suitability of the

software.

1160. Going forward we urged Management to ensure that approval

is sought from the Auditor-General before the purchase and usage

of anaccounting software.




UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA (UPSA)

Introduction 1162. This report relates to the audited accounts of the University

of Professional Studies for the years ending 31 December 2014 and

2018.

Operational Results 1163. The income surplus as at the end of December 2018

increased by 39.3% as a result of significant increase in Government

subvention by 23.4%. Details are shown in table 120.

Table 120: Income and Expenditure Statements as at 31 December

2017

Income 2018 GH¢

2017 GH¢

Variance GH¢

% Change

Government Subvention 37,771,079.00 30,612,831.19 7,158,247.81 23.4

GETFund 486,644.91 0 486,644.91 100

Internally Generated Funds (I.G.F) 66,219,119.65 57,958,914.23 8,260,205.22 14.3

Income Total 104,476,843.56 88,571,745.42 15,905,098.36 18.0

Expenditure

Staff Compensation cost 45,175,728.06 40,195,519.63 4,980,208.43 12.4

Goods & Services 20,608,967.82 20,598,963.23 10,004.59 0.05

Expenditure - Total 65,784,695.88 60,794,482.86 4,990,213.02 8.2

Surplus/(Deficit) 38,692,147.68 27,777,262.56 10,914,885.10 39.3



1164. Total income increased by GH¢15,905,098.36 representing

18.0%. The increase was due to a rise in Government subvention.

Government subvention increased from GH¢30,612,831.19 in 2017

to GH¢37,771,079.00 in 2018.

1165. Staff Compensation increased by GH¢4,980,208.43

representing 12.4%. Expenditure on Goods and Services increased

from GH¢20,598,963.23 in 2017 to GH¢20,608,967.82 in 2018,

representing 6.6%

Statement of Financial Position 1166. The Financial Position of the University as at the end of

December 2018 is shown in table 121.

Table 121: Financial Position of the University as at 31 December 2018

1167. Non-current Assets of the University increased by 10.4%

whereas current assets increased by 144.1%. Total assets increased

2018 GH¢

2017 GH¢

Variance GH¢

% Change

Non-current Assets 126,729,115.64 114,787,141.97 11,941,973.67 10.4

Total Current Assets

45,019,140.49 18,445,349.07

26,573,791.42 144.1

Total Assets 171,748,256.11 133,232,491.04 38,515,765.07 28.9

Long-Term Liabilities 384,398.97 99,732.50 284,666.47 285.4

Current Liabilities 118,864.35 579,913.43 (461,049.10) (79.5)

Total Liabilities 503,263.32 679,645.93 (176,382.61) (26.0)




from GH¢133,232,491 in 2017 to GH¢171,748,256.11 in 2018,

representing an increase of 28.9%. There was a significant reduction

in total liability. Current liabilities reduced significantly by 79.5%,

from GH¢579,913.43 in 2017 to GH¢118,864.35 in 2018. Long term

liabilities however, increased from GH¢99,732.50 in 2017 to

GH¢384,398.97 in 2018 representing 285.4%. This was largely due

to the additional loans that were contracted.

MANAGEMENT ISSUES Payment not appropriately accounted for-GH¢1,949,090.00 1168. Regulation 2(a) of the Financial Administration Regulations

(FAR) 2004 requires the head of government department to manage

and operate the department’s accounting systems, so as to ensure

the accountability of all officers transacting such business and

facilitate the efficient discharge of such business.

1169. We however noted that, out of a total amount of

GH¢2,302,369.67 released to officers of UPSA to transact official

business on behalf of the University, only GH¢353,279.43 was

accounted for with the necessary supporting documents leaving a

difference of GH¢1,949,090.24 to be accounted for, though the

activities for which the funds were released had been conducted long

ago. Details are shown in table 122.

Table 122: Payment not appropriately accounted for Chq No. PV No. Details Amount

Disbursed GH

Amount

Accounted For GH¢

Amount

Unaccounted GH¢

Remarks

17296 PV 538225 SG BANK

DIFFERENCE IN RESPOSIBILITY & ENTERTAINMET

ALLOW FOR APRIL 2017

8,579.28 0.00 8,579.28 NO SIGNED

CLAIM SHEET OR BANK ADVICE TO

ACCOUNT FOR FUNDS

17297 PV 538225 ZENITH BANK

DIFFERENCE IN RESPOSIBILITY

7,569.59 0.00 7,569.59 NO SIGNED

CLAIM SHEET OR



& ENTERTAINMET ALLOW FOR APRIL 2017

BANK ADVICE TO ACCOUNT FOR FUNDS

17298 PV 538225 PV 538225 STANBIC BANK DIFFERENCE IN RESPOSIBILITY


6,701.00 0.00 6,701.00 NO SIGNED CLAIM SHEET OR BANK

ADVICE TO ACCOUNT FOR FUNDS

17299 PV 538225 SG BANK DIFFERENCE IN RESPOSIBILITY


3,954.48 0.00 3,954.48 NO SIGNED CLAIM SHEET OR


17300 PV 538225 AGRICULTURAL DEVELOPMENT BANK


ALLOW FORAPRIL 2017



17301 PV 538225 NATIONAL

INVESTMENT BANK DIFFERENCE IN RESPOSIBILITY


3,433.30 0.00 3,433.30 NO SIGNED


ACCOUNT FOR FUNDS

17302 PV 538225 GUARANTEE TRUST BANK DIFFERENCE IN

RESPOSIBILITY & ENTERTAINMET ALLOW FOR

APRIL 2017

904.97 0.00 904.97 NO SIGNED CLAIM SHEET OR


17303 PV 538225 FIDELITY BANK DIFFERENCE IN RESPOSIBILITY

& ENTERTAINMET ALLOW FOR

APRIL 2017


BANK ADVICE TO ACCOUNT

FOR FUNDS



17304 PV 538225 UG CO-OPERATIVE CREDIT UNION DIFFERENCE IN


APRIL 2017



17305 PV 538225 UNITED BANK OF AFRICA DIFFERENCE IN


APRIL 2017



17306 PV 538225 UNIBANK DIFFERENCE IN


APRIL 2017

2,469.59 0.00 2,469.59 NO SIGNED CLAIM

SHEET OR BANK ADVICE TO ACCOUNT

FOR FUNDS

17307 PV 538225 PRUDENTIAL BANK



1,383.20 0.00 1,383.20 NO SIGNED CLAIM

SHEET OR BANK ADVICE TO ACCOUNT

FOR FUNDS

17308 PV 538225 ACCESS BANK

DIFFERENCE IN RESPOSIBILITY & ENTETRAINMET


18,088.06 0.00 18,088.06 NO SIGNED


ACCOUNT FOR FUNDS

17309 PV 538225 HFC BANK



7,638.94 0.00 7,638.94 NO SIGNED


ACCOUNT FOR FUNDS

17310 PV 538225 ECO BANK DIFFERENCE IN

RESPOSIBILITY & ENTERTAINMET


20,569.19 0.00 20,569.19 NO SIGNED CLAIM

SHEET OR BANK ADVICE TO

ACCOUNT FOR FUNDS



17315 PV 538225 GHANA COMM BANK DIFFERENCE IN RESPOSIBILITY




17316 PV 538225 BARCLAYS BANK DIFFERENCE IN RESPOSIBILITY




17317 PV 538225 ECO BANK DIFFERENCE IN RESPOSIBILITY




17468 PV 537610 MARK OFORI AFAYORI PMT FOR ANNUAL

MEMBERSHIP SUBSCRIPTION FEE FOR CIPS

406.80 0.00 406.8 NO RECEIPT TO ACCOUNT FOR

SUBSCRIPTION PAID

17472 PV 537613 GABY & JENAN SALTOUM CO LTD. PMT FOR 40 DRUMS OF

FUEL(DIESEL)

31,120.00 0.00 31,120.00 NO RECEIPT TO ACCOUNT FOR FUEL(DEISEL

) PURCHASED

17574 PV537405 REPAIR &

MAINTENANCE OF VEHICLES

1,000.00 0.00 1,000.00 NO RECEIPTS

TO ACCOUNT FOR ACCOUNTABLE IMPREST.

17575 PV537406 OUT OF STATION ALLOW FRANCIS EBO

TURKSON

1,800.00 0.00 1,800.00 NO RECEIPT TO ACCOUNT FOR HOTEL ACCOMMODA

TION OF GH¢1800 PAID TO MR. EBO

TURKSON

17427 Pv537468 USA VISA FEE FOR PROF.

ABEDNEGO O. F AMARTEY

750.00 0.00 750 NO RECEIPT TO ACCOUNT

FOR VISA FEE



17702 PV 537621 PRYME TYME SOLUTION CO LTD PMT FOR MINERAL

WATER 250 BOXES

5,725.00 0.00 5,725.00 THE ATTACHED RECEIPT TO ACCOUNT

FOR FUNDS WAS FROM HANSVAL CREATION

AMOUNTING TO GH¢7,637.50 AND NOT

FROM PRYME TYME SOLUTION.

17701 PV 537620 TRAVEL

EXPENSE FOR UMAT 9TH CONGREGATIO

N

2,200.00 0.00 2,200.00 INCLUDED IN

THE AMOUNT WAS A HOTEL

ACCOMMODATION OF GH¢1,200.00 AND FUEL OF

GH¢1,000.00 WHICH WERE NOT ACCOUNTED

FOR BY RECEIPTS.

49854 PV 536144 DR. J.K.M MAWUTOR FOR

CONFERENCE FEE & TRAVELLING

ALLOW IN USA

4,464.88 3,235.64 1,229.24 NO RECEIPT TO ACCOUNT

FOR FUND

49855 PV 536144 DR. J.K.M MAWUTOR FOR ACCOMO. &

TRAVELLING ALLOW IN USA

4,900.00 3,000.00 1,900.00 NO RECEIPT TO ACCOUNT FOR FUND

49856 PV 536144 DR. J.K.M

MAWUTOR FOR ACCOM. ALLOW IN USA

4,498.76 2,000.00 2,498.76 NO RECEIPT

TO ACCOUNT FOR FUND

49833 PV 536638 DR. MRS. VIVIAN AMOAKO ACCOUNTABLE

IMPEREST FOR YEAR END GET TOGETHER

2,010.00 0.00 2,010.00 NO RECEIPT TO ACCOUNT FOR FUND

49822 PV 536628 AISHA KEITA ATTIPOE FOR MGT TRIP TO MANHYIA

PALACE




49796 PV 536576 PAYMENT TO OLIVIA MENSAH FOR SCRIPT

MARKING FOR GRADUATE SCHOOL

4,780.30 0.00 4,780.30 NO CLAIM SIGNED SHEET TO ACCOUNT

FOR FUNDS

49294 PV 536134 PAYMENT TO

PROF. ABEDNEGO O.F AMARTEY AS PER DIEM FOR

TRIP TO ISRAEL

2,161.44 0.00 2,161.44 NO RECCEIPT

TO ACCOUNT FOR ACCOUNT FOR

ACCOMMODATION


PROF. ABEDNEGO O.F AMARTEY AS ACCOMODATIO

N FOR TRIP TO ISRAEL

4,104.00 0.00 4,104.00 NO RECEIPTS

TO ACCOUNT FOR FUNDS

44576 PV 536603 , REV. J.K.

ANTWI- ACCOUNTABLE IMPREST ON CATERING

SERVICES FOR COUNCIL WORKSHOP

4,000.00 0.00 4,000.00 NO RECEIPTS

TO ACCOUNT FOR FUNDS

44577 PV 536603 PAYMENT TO REV. J.K ANTWI AS ACCOUNTABLE

IMPEREST FOR CATERING SERVICE FOR COUNCIL

WORKSHOP

2,000.00 0.00 2,000.00 NO RECEIPTS TO ACCOUNT FOR FUNDS

49257 PV 536123 PROF. ABEDNEGO O.F

AMARTEY CONFERENCE FOR EUROPEAN

ECONOMIC SUMMIT AS HOTEL ACCOMODATIO

N

4,950.00 617.40 4,332.60 NO RECEIPT TO ACCOUNT

FOR ACCOMMODATI0N

49258 PV 536123 PROF. ABEDNEGO O.F

AMARTEY CONFERENCE FOR EUROPEAN

ECONOMIC


FOR ACCOMMODATI0N



SUMMIT AS HOTEL ACCOMODATION

49259 PV 536123 PROF. ABEDNEGO O.F AMARTEY CONFERENCE

FOR EUROPEAN ECONOMIC SUMMIT AS

HOTEL ACCOMODATION

1,316.10 0.00 1,316.10 NO RECEIPT TO ACCOUNT FOR ACCOMMODA

TI0N

49224 PV 538396 ELIJAH MENSAH AS PER DIEM ALLOWANCE

AND ACCOMODATION FOR CONFERENCE

IN POLLAND

4,900.00 117.35 4,782.65 NO RECEIPT TO ACCOUNT FOR ACCOMMODA

TION

49225 PV 538396 ELIJAH MENSAH AS

HOTEL ACCOMODATION FOR CONFERENCE

IN POLLAND


FOR CONFERENCE FEE

49226 PV 538396 ELIJAH MENSAH AS

HOTEL ACCOMODATION FOR CONFERENCE

IN POLLAND

1,165.60 1,165.60 0.00

43002 PV 538474 , GLOBAL WINGS TRAVEL

& TOUR LTD. - PAYMENT FOR AIR TICKET

6,412.00 6,412.00 0.00

PV 538122 MULTI CHOICE

- PAYMENT FOR DSTV SERVICES

4,510.00 0.00 4,510.00 PROVIDE

RECEIPT FOR DSTV SUBSCRIPTION

PV 538110 PROF. JOSHUA ALABI & OTHERS -

PAYMENT FOR END OF 1ST

86,805.90 1,944.00 84,861.90 NO SIGNED CLAIM SHEET OR

BANK ADVICE TO



SEMESTER EXAMINATION

ACCOUNT FOR FUNDS

PV 538111 PROF. JOSHUA ALABI & OTHERS - PAYMENT FOR

END OF 1ST SEMESTER EXAMINATION

39,307.50 1,386.00 37,921.50 NO SIGNED CLAIM SHEET OR BANK


PV 538113 PROF. JOSHUA ALABI & OTHERS - PAYMENT FOR

END OF 1ST SEMESTER EXAMINATION



44041 PV 534455 , SETH OPPONG - PAYMENT FOR LECTURERS FEES FOR

RESOURCE PERSON FOR CERTIFICATION COURSE



44202 PV 534717 , LIONEL ABBEY-PAYMENT FOR

VISITING LECTURERS ALLOWANCE 2016/2017

ACADEMIC YEAR


43980 PV 529692 , POWER CITY

NETWORK - PAYMENT FOR OFFICE ITEMS FOR HR

DIRECTOR

6,240.25 0.00 6,240.25 NO RECEIPT

TO ACCOUNT FOR FUND

43959 PV 535971 , PRYME TYME SOLUTIONS COMPANY LTD

- PAYMENT FOR BOTTLED WATER


43934 PV 535924 , PROF ABEDNEGO OKOE AMARTEY -

PAYMENT FOR SITTING ALLOWANCE





FOR TENDER COMMITTEE

40900 PV 538136 , L. O. M. SAKYIAMA - ACCOUNTABLE IMPREEST FOR

HIRING AND LAUNDERING OF PHD ACADEMIC

GOWNS


PV 536266 PROF. ABENEGO

OKOE - PAYMENT FOR LONG VACATION -

HOTEL ACCOMODATION


FOR FUND

41097 PV 535840 , PROF. OKOE & OTHERS - PAYMENT FOR APPOINTM'T &

PROMOTION BOARD MEMBERS SITTING

ALL.JAN.17

3,680.00 2,880.00 800.00 NO SIGNED CLAIM SHEET OR BANK


PV 534420 MEDICAL REFUND FOR

APRIL 2017


FOR FUND

44270 PV 538385 HOTEL ACCOMODATIO

N TO ATTEND KNUST CONGREGATIO

N

5,510.00 3,050.00 2,460.00 NO RECEIPT TO ACCOUNT

FOR FUND

44261 PV 538383 PROF.JOSHUA ALABI -PAYMENT TO

FORMER VC TO TRAVEL TO SPAIN WITH FAMILY


49241-244

PV 536115 PROF. ABENEGO OKOE -

PAYMENT FOR TO ATTEND CONFERENCE IN JERUSALEM




42695 PV 538124 GODWIN ADAGAWIRE - PAYMENT TO MR. GODWIN

TO ATTEND 20TH COMMON WEALTH AUSTRALIA


42734 PV 535766 , CUMMINS GH LTD - PAYMENT FOR SERVICING OF

GENERATOR SET



DR. S.M MUSTAPHA & OTHERS

3,900.00 2,600.00 1,300.00 NO RECEIPT

TO ACCOUNT FOR FUND

49295 PV 536134 PAYMENT TO PROF. ABEDNEGO O.F AMARTEY AS

ACCOMODATION FOR TRIP TO ISRAEL


49812 PV 536618 PAYMENT TO GEORGE QUARTEY FOR PER DIEM &

T&T ALLOWANCE TO ACBSP CONFERENCE

MOROCCO


49836 PV 536643 PROF. NII ADOTEI

ABRAHAM FOR VISITING LECT. 2017/18 1ST SEM


FOR FUND

PV 536633 9,771.00 6,951.00 2,820.00 NO RECEIPT TO ACCOUNT FOR FUND

44578 PV 536604 ,- ACCOUNTABLE IMPREST ON

ACCOMODATION FOR DRIVERS FOR COUNCIL

WORKSHOP


1351 534951 AIR FARE FOR DANIEL BUKARI

TO UK FOR A TRAINING


FOR FUND



WORKSHOP- GLOBAL WINGS TRAVEL &TOUR LTD

1086 537926 33,175.00 0.00 33,175.00 NO RECEIPT TO ACCOUNT FOR FUND

- 534622 REFUND OF AIR FARE TO THE

CHANCELLOR - HRM DROLOR BOSSO ADAMTEY I


151 534702 CONFERENCE FEE ATTENDED BY DIR. OF

INTERNAL AUDIT IN AUSTRALIA- INSTITUTE OF

INTERNAL AUDITORS


3369 536953 CONFERENCE/

WKSHOP FROM 13-16/11/17 IN DUBAI- GEORGE

QUARTEY

13,666.60 9,986.60 3,680.00 NO RECEIPT

TO ACCOUNT FOR ACCOMMODATION

42977 PV 538276 PAYMENT FOR ACCOUNTABLE IMPREST

1,000.00 0.00 1,000.00 NO RECEIPT TO RETIRE IMPREST

671,901.92 84,835.41 587,066.51

NO DATE

CHQ.

NO. DETAILS

AMOUNT DISBURSED

GH¢

AMOUNT ACCOUNTED

FOR

AMOUNT

UNACCOUNTED

GH¢ REMARKS

1 1/18/18 50714

PV 536799 LATE

MEDICAL SCREENING

REGISTRATION ALLOWANCE -

ACCESS BANK 25,000.00 0.00 25,000.00

PROVIDE

SIGNATURES OR BANK

ADVICE

2 3/27/18 61143

PV, 538951

NATIONAL

ACCREDITATIO

N BOARD ASSESMENT

FOR NEW COURSE 6,050.00 0.00 6,050.00

PROVIDE MEMO

3 05-03-18 61296

PV, 539151 LORRAINE

GYAN , ACCOUNTABLE

IMPREST FOR 2,000.00 0.00 2,000.00

PROVIDE

RECEIPT



MAINTENANCE

OF OFFICIAL VEHICLES

4 05-02-18 61288

PV, 539023 UNIVERSITY OF

GHANA BUSINESS

SCHOOL WORKSHOP/

TRAINING FEE 1,550.00 0.00 1,550.00

PROVIDE

RECEIPT

5 04-03-18 61226 PV,538631

THOMAS A. WILSON &

OTHERS AUDIT COMMITTEE

ALOWANCE

5,600.00 4,800.00 800.00 provide

signatures - MR USUMAN

ABDUL RAZAK & PROF.

KWAME FRIMPONG

6 12-12-18 69669

PV541041, DR.

BOADI NYAMEKYE -

GUEST SPEAKER FOR

END OF YEAR

2,000.00 0.00 2,000.00 PROVIDE RECEIPT THANKSGIVING

7 7/30/18 62330

PV,541177,

CASH - PAYMENT FOR N.S.S

DONATIONS 4,000.00 0.00 4,000.00

PROVIDE

RECEIPT

8 04-06-18 61909

PV 539362

PAYMENT OF 2018 2ND QTR

ALLOWANCE 80,340.00 0.00 80,340.00

PROVIDE RECEIPT /

BANK ADVICE

9 04-06-18 61689

PV 539361

PAYMENT OF ENTITLEMENTS

FOR VC TRIP TO UK 35,262.50 16,536.50 18,726.00

PROVIDE RECEIPT FOR

ACCOMMODATION

10 5/31/18 61679

PV, 539353 GEORGE

QUARTEY ,TRAVEL TO

USA FOR ACBSD CONFERENCE 8,255.50 4,455.50 3,800.00

PROVIDE RECEIPT

11 5/23/18 61642

PV, 539182

LORRIANE GYAN, REPAIR

OF VEHICLE GV 2058 X 1,000.00 0.00 1,000.00

PROVIDE RECEIPT

12 5/23/18 61641

PV, 539182 LORRIANE

GYAN, TOWING OF ACCIDENT

VEHICLE GV 276-09 1,500.00 0.00 1,500.00

PROVIDE RECEIPT

13 21-05-18 61626

PV 539181 PAYMENT OF

REFUND OF 30,449.00 23,449.00 7,000.00

PROVIDE RECEIPT/

SIGNATURES



FEE EXPIRED

STUDENTS

14 2/19/18 50697

PV 537891 DENNIS

ATUQUAYEFIO - OUT OF

STATION & ACCOM. TO GH.

HIGHER EDU FAIR 12,750.00 8,850.00 3,900.00

PROVIDE RECEIPT

15 02-05-18 50674

PV 537876 COLLINS BADU

AGYEMANG OUT OF

STATION & ACCOM. ALLOW

FOR EDU FAIR 1,350.00 0.00 1,350.00

PROVIDE

RECEIPT

16 02-06-18 50675

PV 537876

PROF. ABEDNEGO O.F

AMARTEY HOSTEL

ACCOM, PER DIEM, FUEL

FOR MEETING AT KUMASI 3,000.00 1,650.00 1,350.00

PROVIDE RECEIPT

17 26-01-18 50664

PV 538653

PROF. ABEDNEGO &

OTHERS 35,199.00 0.00 35,199.00

PROVIDE SIGNS/BANK

ADVICE

18 1/19/18 50652

PV 538660 DR. EMMANUEL

SASMOAH OUT OF STATION &

ACCOM. 1,200.00 5,400.00 5,700.00

PROVIDE

RECEIPT FOR ACCOMODATI

ON GHC 5,700.00 (out

of total GH¢11,100.00

)

19 1/19/18 50653

PV 538660

ANTHONY AFEADIE

EDUCATIONAL FAIR - OUT OF

STATION & ACCOM. 1,200.00 0.00 1,200.00

20 1/19/18 50654

PV 538660 DENNIS

ATUQUAYEFIO EDUCATIONAL FAIR - OUT OF

STATION & ACCOM. 1,140.00 0.00 1,140.00

21 1/19/18 50655

PV 538660

ANDREWS OFFEI EDUCATIONAL

FAIR - OUT OF STATION &

ACCOM. 660.00 0.00 660.00



22 1/19/18 50656

PV 538660 DR. ANDREWS AKOLAA


STATION & ACCOM. 1,350.00 0.00 1,350.00

23 1/19/18 50657

PV 538660 ANTHONY

AFEADIE EDUCATIONAL


ACCOM. 1,350.00 0.00 1,350.00

24 1/19/18 50658

PV 538660

ABRAHAM AGBEMOI

EDUCATIONAL

FAIR - OUT OF

STATION & ACCOM. 1,350.00 0.00 1,350.00

25 1/19/18 50659

PV 538660 YAO ASANI


STATION & ACCOM. 750.00 0.00 750.00

26 1/19/18 50661

PV 538660 ANTHONY

AFEADIE EDUCATIONAL


ACCOM. 1,350.00 0.00 1,350.00

27 1/19/18 50663

PV 538660

WISDOM KORTO EDUCATIONAL


ACCOM. 750.00 0.00 750.00

28 6/26/18 62217 PV, 539510

GLOBAL WINGS TRAVEL &

TOUR, AIR TICKET FOR

TRIP TO GALILEE

56,862.00 42,052.50 14,809.50 PROVIDE

INVOICES FOR AIR

TICKETS ,DR SIDU

MUSTAPHA BUSINESS

CLASS $3,291(@ 4.50)

29 6/22/18 62203

PV, 539196 DR.

MRS HELEN ARKUFUL

CANADA CONGRESS 5,000.00 3,060.00 1,940.00

PROVIDE

INVOICE / RECEIPT AS

CONFERENCE FEE

30 6/22/18 62201

PV, 539194 DR. MRS VIVIAN

AMOAKO 9,724.25 4,098.25 5,626.00

PROVIDE

RECEIPT FOR ACCOM'D &

CONF. FEE



31 06-08-18 61990

PV, 539367

MORSECODE TECHNOLOGIES

, SUBSCRIPTION FOR

PLAGIARISM DETECTION

SYSTEM 23,088.00 0.00 23,088.00

PROVIDE

RECEIPT

32 9/26/18 63374

PV, 539853

TRUST HANDS CENTRE,

PAYMENT FOR REPAIRS OF

VEHICLE GV 276-09 31,528.77 0.00 31,528.77

PROVIDE RECEIPT

33 10-10-18 318794

PV ,539959 PROF

ABEDNEGO &

OTHERS

,CERTIF. IN FORENSIC

ACCOUNTING 13,455.75 0.00 13,455.75

PROVIDE

SIGNATURES OR BANK

ADVICE

34 11-09-18 69272

PV, 539889

MULTI CHOICE GHANA LTD,

PAYMENT FOR DSTV

SUBSCRIPTION 8,580.00 0.00 8,580.00

PROVIDE LOCATION OF

DECODERS

35 11-09-18 69255

PV, 539881

MAWULI FEGLO, PAYMENT FOR

ACCOUNTABLE IMPREST 8,000.00 0.00 8,000.00

PROVIDE RECEIPT

36 06-11-18 69244

PV 539749 KASSIM ABDUL

RAZAK & OTHERS

,SPORTS 9,399.96 7,199.96 2,200.00

PROVIDE

SIGNS

37 11/16/18 68891

PV, 541245

IRATEX INVESTMENT ,

PAYMENT FOR WORKS AT LBC 11,923.64 0.00 11,923.64

PROVIDE RECEIPT

38 11/16/18 68883

PV, 541237 PROF

ABEDNEGO & OTHERS

PAYMENT FOR INVIGILATION

ICA 13,068.00 0.00 13,068.00

PROVIDE SIGNS OR

BANK ADVICE

39 11-08-18 68876

PV, 539796

FORTUNATE FIO,

ACCOUNTABLE

IMPREST 5,000.00 0.00 5,000.00

PROVIDE

RECEIPT

40 11-07-18 68867

PV, 539847 DR. JOHN

MAWUTOR, ACCOUNTABLE

IMPREST 7,000.00 0.00 7,000.00

PROVIDE

RECEIPT

41 20-09-18 63616

PV 539804

EDWARD BARNOR &

OTHERS 3,697.04 0.00 3,697.04

PROVIDE

RECEIPT



42 12/28/18 62780

PV, 541079

NANA ACQUAH. EC, 3RD

QUARTER COUNCIL

MEETING ALLOWANCE 89,040.00 85,440.00 3,600.00

PROVIDE SIGNATURES

43 10/24/18 69101

PV, 540007 LEXIS A.

TETTEH & OTHERS ,

EXTRA TEACHING

ALLOWANCE, MARCH & APRIL

2018 12,140.25 5,499.00 6,641.25

PROVIDE

SIGNATURES

44 23-10-18 63596

PV 540004

WINSTON

INKUMSAH

PAYMENT OF MARKED

SCRIPT ALLOWANCE 18,328.95 0.00 18,328.95

PROVIDE SIGNATURES

45 28-10-18 63596

PV 540004 MR LAZARUS

LAMPTEY & OTHERS

PAYMENT OF MARKED

SCRIPT ALLOWANCE 21,286.80 0.00 21,286.80

PROVIDE SIGNATURES

46 10/18/18 63567

PV, 541497 PROF.

ABEDNEGO AMARTEY,

STUDENTS REGISTRATION

ALLOWANCE 33,980.40 0.00 33,980.40

PROVIDE

SIGNATURES

47 10/18/18 63561

PV, 541495

PROF. ABEDNEGO

AMARTEY, STUDENTS

ORIENTATION ALLOWANCE, 1ST SEMESTER 62,379.75 2,383.46 59,996.29

PROVIDE SIGNATURES

48 10-11-18 63532

PV, 541490 HILL

VIEW QUEST CENTRE,

CONFERENCE PACKAGE FOR AUDIT

COMMITTEE 10,159.17 0.00 10,159.17

PROVIDE

RECEIPT

49 11/16/18 69402

PV, 541249

ACCESS BANK ,

STAFFED STUDENTS MEDICAL

SCREENING 88,137.00 0.00 88,137.00

PROVIDE

SIGNATURES

50 11-08-18 69316

PV, 541136 IRATEX

INVESTMENT, REPLACEMENT OF LOOSED 17,708.00 0.00 17,708.00

PROVIDE RECEIPT



TILES AT ADMIN

BLOCK

51 11/21/18 69506

PV, 541568 ACCESS BANK ,

FULL TIME LECTURE

ALLOWANCE 13,888.50 0.00 13,888.50

PROVIDE

SIGNATURES

52 22-08-18 62665

PV 539232 MERCY AGBENYO &

OTHERS 7,150.08 0.00 7,150.08

PROVIDE

BANK ADVICE

53 30-10-18

TRANSF

ER

PV UG OVERSEAS

OFFICE PAYMENT OF WORKSHOP

FEES 2,200.00 0.00 2,200.00

PROVIDE

BANK ADVICE

54 7/23/18 62465

PV, 539589 ACCESS BANK

VARIOUS COMMITTEE SITTING

ALLOWANCE 7,773.75 0.00 7,773.75

PROVIDE

SIGNATURES

55 9/25/18 63363

PV, 538797/ 538798 ACCESS

BANK, PROJECT DISSERTATION AND

SUPERVISION / DIPPLOMA &

UNDERGRADUATE ALLO 134,527.50 0.00 134,527.50

PROVIDE SIGNATURES

56 15/8/18 62836

PV PROF.

KWAME FRIMPONG & OTHERS

PAYMENT FOR SITTING

ALLOWANCE FOR

INTERVIEWING LLB 6,810.00 0.00 6,810.00

PROVIDE SIGNATURES

57 21-05-18 2708

PV PAUL KYEI BOAMAH &

OTHERS PAYMENT OF

SALARIES FOR MAY 18,758.45 0.00 18,758.45

PROVIDE

SALARY DETAILS

58 12-12-18 71711

PV EMMANUEL AMOFAH &

OTHERS PAYMENT OF

APPEAL BOARD QTERLY

ALLOWANCE 4,000.00 0.00 4,000.00

PROVIDE

SIGNATURES

59 11/20/18 69372

PV, 541622

CHARTERED INSTITUTE OF

MARKETING GHANA,

DONATIONS 12,000.00 0.00 12,000.00

PROVIDE

RECEIPT



60 08-11-18 69350

PV 537184 PROF. ABEDNEGO &

OTHERS PMT OF FULL TIME

LECTURES ALLOWANCE 10,098.00 0.00 10,098.00

PROVIDE SIGNATURES

61 8/17/18 62751

PV, 541470 UNIVERSITY OF

GHANA, PHD FEES FOR

GLADYS A.A NABIEU,

2018/2019 ACADEMIC

YEAR 11,401.00 0.00 11,401.00

PROVIDE

RECEIPT

62 8/17/18 62744

PV, 541465

FORTUNATE K.B

FIO, LEGAL

CHARGES ADAGULLA AND

OTHERS 2,000.00 0.00 2,000.00

PROVIDE

RECEIPT

63 8/15/18 62734

PV, 541460 DR

GERALD DAPAAH

GYAMFI, PER DIEM

ALLOWANCE FOR IPES IN

AUSTRIA, 29TH ANNUAL

MEETING 5,000.00 0.00 5,000.00

PROVIDE RECEIPT FOR

ACCODTN

64 28-06-18 62276

PV PROF

KWAME FRIMPONG &

OTHERS PMT OF ALLOWANCE

INVIGILATORS 3,015.00 0.00 3,015.00

PROVIDE

SIGNATURES

65 7/18/18 62256

PV, 539384

PROF E. MARFO YIADOM, FEE

FOR MODERATING

EXAMS QUIESTIONS,

2ND SEM 2017/18 28,664.84 0.00 28,664.84

PROVIDE SIGNATURES

66 4/25/18 61191


REGISTRATION ALLOWANCE 18,108.00 0.00 18,108.00

PROVIDE SIGNATURES

67 10-08-18 63697

PV539917 ACCESS BANK

GH LTD

HONORARIUM

FOR RESIT REGISTRATION

ALLOW 10,491.84 0.00 10,491.84

PROVIDE

SIGNATURES

68 10-08-18 63695

PV539913

ACCESS BANK GH LTD

HONORARIUM FOR GRADUATE

SCH PANEL 5,250.00 0.00 5,250.00

PROVIDE

SIGNATURES



INTERVIEW

TEAM

69 10-05-18 63629

PV539951 DR KOFI KONADU

&OTHERS T&T ALLOW FOR

COUNCIL MEMBERS

2018MATRICULATION 5,840.00 4,400.00 1,440.00

PROVIDE SIGNATURES

70 10/22/18 63582

PV, 537211 PROF.

ABEDNEGO AMARTEY &

OTHERS, HOSTEL

STUDENTS REGISTRATION

ALLOWANCE, 2018/2019 9,712.14 0.00 9,712.14

PROVIDE

SIGNS/BANK ADVICE

71 11/1/2018 63400

PV, 539938 37 MILITARY

HOSPITAL , MEDICAL BILL

FOR SECURITY GUARD WITH

AMPUTATED LEG 11,927.50 0.00 11,927.50

PROVIDE RECEIPT

72 8/23/2018 62655

PV, 539224, CTA ENGINEERS -

PAYMENT FOR ACQUISITION

OF NEW PBX COMPONENT TO

REPLACE OLD DAMAGED ONE 4,310.00 0.00 4,310.00

PROVIDE RECEIPT

73 15-01-18 SWIFT T

PV MONARCH BUSINESS

SCHOOL SWITZERLAND

PAYMENT FOR PHD 31,920 0.00 31,920

PROVIDE BANK ADVICE

(5700 Euros @¢5.6)

74 12-03-18 SWIFT T

PV UNIV. OF SOUTH AFRICA

PAYMENT OF PHD PROG. FOR

MR. BRIAN AKRONG 5,390 0.00 5,390

PROVIDE BANK

ADVICE/ RECEIPT

(15400 Rands @ ¢0.35)

75 12-11-18 69744


GHANA LTD, VARIOUS

COMMITTEE ALLOWANCES 16,695.00 0.00 16,695.00

PROVIDE BANK

ADVICE/ SIGNS

76 12/13/18 069779

PV, 540126 DR. ALBERT

MARTINS, ACCOUNTABLE

IMPREST FOR HOSTEL STAFF

GET TOGETHER 7,000.00 0.00 7,000.00

PROVIDE

RECEIPT



77 12-11-18 69758

PV, 540151

JOSEPH SEFENU,

EXTERNAL EXAMINERS

ALLOWANCE 26,153.80 0.00 26,153.80

PROVIDE

SIGNATURES

78 12-11-18 69724

PV, 540153

SPARKY LIMITED,

PROVISION OF SPEED RAMPS 17,748.41 0.00 17,748.41

PROVIDE RECEIPT

79 12/13/18 69569

PV, 541595 NANA OPOKU

AMPOMAH, PAYMENT OF

MONTHLY STIPENDS 3,000.00 0.00 3,000.00

PROVIDE RECEIPT

80 12-10-18 63298

PV, 541586

GAUA UPSA,

END OF YEAR GET TOGETHER

2018 35,000.00 0.00 35,000.00

PROVIDE

RECEIPT

81 06-06-18 61828

PV, 539458

ERNEST OPOKU,

ALLOWANCE FOR COURSE IN

TREASURY MANAGEMENT 8,287.47 0.00 8,287.47

PROVIDE BANK ADVICE

82 06-04-18 61763


PAYMENT OF GRADUATE SCH

OVERLOAD 16,464.00 0.00 16,464.00

PROVIDE

BANK ADVICE

83 06-04-18 61774

PV, 539285

ACCESS BANK PAYMENT OF

UNDER GRADUATE

OVERLOAD 8,385.00 0.00 8,385.00

PROVIDE

BANK ADVICE

84 10/26/18 69054

PV, 541128

ACCESS BANK GH, SITTING

ALLOWANCE FOR ACADEMIC

BOARD FOR JULY & AUGUST

2018 9,082.50 0.00 9,082.50

PROVIDE

BANK ADVICE

85 5/17/18 61603

PV, 538994,

ACCESS BANK PAYMENT OF

OVERLOAD ALLOWANCE,

GRADUATE

SCHOOL 25,264.50 0.00 25,264.50

PROVIDE

BANK ADVICE

86 8/23/18 62679

PV539236, NANA OPOKU

AMPOMAH - PAYMENT FOR

MONTHLY STIPEND 3,000.00 0.00 3,000.00

PROVIDE RECEIPT



87 4/25/18 61199

PV, 538982

ACCESS BANK, PAYMENT OF

VARIOUS COMMITTEE

SITTING ALLOWANCE 5,238.75 0.00 5,238.75

PROVIDE SIGNATURES

88 4/23/18 50945

PV, 538750 DR MARY ESSIAW &

OTHERS PAYMENT FOR

MEDICAL REFUND 10013.56 0.00 10013.56

PROVIDE RECEIPT

89 28-12-18

984-

986

PV MUMRATN MUSAH &

RICHARD ARYEETEY PMT

OF HOTEL

ACCODTN 6,284.00 0.00 6,284.00

PROVIDE

RECEIPT

90 28-12-18

1264 -

1288

PV 536882 IBRAHIM ALI &

OTHERS PMT OF

ALLOWANCES FOR SPORT @

UDS 41,574.00 21,024.00 20,550.00

PROVIDE

RECEIPT

91 16-11-17

1247-

1261

PV 536801

IBRAHIM ALI & OTHERS

PAYMENT OF ALLOWANCES

FOR VARIOUS SPORTING

ACTIVITIES 10,205.00 6,145.85 4,059.15

PROVIDE

RECEIPT

92 06-11-17

1214 -

1217

PV BENJAMIN

OSAH & OTHERS PMT

OF HOTEL ACCODTN FOR

SPORTS 8,040.00 0.00 8,040.00

PROVIDE

RECEIPT

93 12/18/18 70852

PV, 537235

GLOBAL WING TRAVEL &

TOUR, AIR TICKET FROM

ACC - LAS VEGAS, PRO-VC

& DEA IT, ACC-KM VC 43,444.00 0.00 43,444.00

PROVIDE

DETAILS OF TRAVEL

94 12/24/18 71428

PV, 541048 GUSA,

PARTICITANT FEES FOR GUSA

GAMES 29,200.00 22,000.00 7,200.00

PROVIDE

RECEIPT

95 12/14/18 70824

PV, 540034

ACCESS BANK GH LTD,

STUDENTS RESIT

REGISTRATION EXERCISE 9,833.40 0.00 9,833.40

PROVIDE BANK ADVICE



96 12/13/18 69678

PV540028,

GLOBAL WINGS TRAVEL &

TOURS - AIR TICKET FOR

GEAORGE QUARTEY -

ACC-ISREAL-ACC 4,999.00 0.00 4,999.00

PROVIDE

DETAILS OF TRAVEL

97 12/13/18 69677

PV540028, GLOBAL WINGS

TRAVEL & TOURS - AIR

TICKET FOR GEAORGE

QUARTEY - SIDNEY-

CAMBERA-

SIDNEY 2,724.00 0.00 2,724.00

PROVIDE

DETAILS OF

TRAVEL

98 12/13/18 69676

PV540027, GLOBAL WINGS

TRAVEL & TOURS - AIR

TICKET FOR PROF OKOE, DR MUSTAPHA &

MR AFEADZI, ACC-UK-A 47,851.00 0.00 47,851.00

PROVIDE

DETAILS OF TRAVEL

99 12/13/18 69674

PV541043,

ACCESS BANK - APPOINTMENT

& PROMOPTION SITTING ALLOWANCE 4,665.00 0.00 4,665.00

PROVIDE SIGNS/BANK ADVICE

100 11-06-18 SWIFT T

PV, 541017

TRANSFORMATIONAL

EDUCATIONAL SERVICES LLC, FOR REWIEW

OF JOURNAL ARTICLES 21,485.63 0.00 21,485.63

PROVIDE BANK ADVICE

101 11-06-18 69132

PV, 540016 MRS

FIDELIS QUANSAH, PAYMENT FOR

AIRFARE FOR CONFERENCE

ATTENDED 5,879.40 0.00 5,879.40

PROVIDE DETAILS OF

TRAVEL

102 22-11-18 SWIFT T

PV 541034

UNIV. OF GHANA - PMT

OF WORKSHOP 6,820.00 0.00 6,820.00

PROVIDE

BANK ADVICE (1100 Pounds

@ ¢6.2)

SUB TOTAL 1,630,467.75 268,444.02 1,362,023.73

GRAND TOTAL 2,302,369.67 353,279.43 1,949,090.24

1170. This irregularity could be attributed to the schedule Account

Officer’s disregard for the responsibility to ensure that the necessary



supporting documents were attached to account for the payment

vouchers before certifying for payment.

1171. It was therefore very difficult to authenticate the transactions,

making the payment most irregular. In the absence of the identified

key supporting documents, the appropriateness of payment and

whether the funds were used for the intended purpose remains in

doubt.

1172. We recommended that the amount be adjusted to the

personal advance accounts in the names of individual imprest

holders in line with Regulation 288(1) of the Financial

Administration Regulations.

1173. Management responded that these payments were made

through the various staff banks accounts. Payment advice were

given to various banks to credit individual staff bank accounts.

Copies signed by the banks and given to the University as evidence

of payment. All the bank advice copies are on file for verification. As

a policy of the University, staff who attend

seminars/conferences/workshops are given Per Diem, out of Station

or day trip allowances. Beneficiaries normally signs the payment

voucher to signify that payment had been made.

Payment for no work done-GH¢263,670.00

1174. Section 7(1a) of the Public Financial Management Act 2016

(Act 921) requires a principal spending officer of a covered entity to

ensure the regularity and proper use of money appropriated in that

covered entity; also, Regulation 2(c) of the Financial Administration

Regulations (FAR),2004 requires 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.



1175. We noted during our review that, Management of UPSA,

Accra, signed a retainer agreement dated 16th March 2014 and paid

an amount of GH¢263,670.00 to Lithur Brew and Company a law

firm as a retainer fees without evidence of the provision of any legal

services to the University. We also noted that Lithur Brew and

Company was appointed through sole sourcing without recourse to

the provisions of the Public Procurement (Amendment) Act, 2016

(Act 914).

1176. This could be due to Management’s disregard for the

provisions of the Public Procurement (Amendment) Act, 2016 (Act

914).

1177. Management spent an amount of GH¢263,670.00 that could

have been utilised for other urgent programmes.

1178. Without evidence of provision of any legal services to the

University to warrant the expenditure, we advised that, the former

Vice Chancellor; Prof. Joshua Alabi and Lithur Brew and company

should be made to refund the amount with the prevailing Bank of

Ghana interest rate.

1179. We further advised that, Management sets up a legal

directorate that shall facility all legal matters for the University

through the Attorney General department.

1180. The Governing Council of the University in 2016 approved the

appointment of Lithur Brew and company as external Solicitors on

a retainer basis to provide legal service by way of Litigation. That

contrary to the assertion that the Law Firm did not provide any

services for the fees obtained, we state that the company did provide

legal services in the following cases:

1. Bridget Atingyena vrs UPSA at Labour Commission



2. Tropical Developers Ltd Vrs UPSA

3. Philip Kwabena Koomson vrs UPSA

4. TEWU vrs UPSA, Labour Commission

5. OKOGYEAMAN KRODUA II vrs UPSA & 20RS

6. UPSA VRS SEL FUEL FILLING STATION Representation @

EPA

7. Ahmed Paterson Vs UPSA

8. That the Law Firm provided legal services within the period

2014 to 2nd Quarter 2017 till their services were dispensed

with after the Legal Directorate was set up as a Legal

Chamber and registered with the General Legal Counsel to

conduct its own cases.

9. That at all material time the Law Firm provided an invoice

covering their retainer fees and also their Legal Bills for

cases they were conducting.

10. That the services of Lithur Brew and Company were

retained through sole sourcing to deal with emergencies

that were confronting the University as far as litigations

were concerned.

11. That the aforementioned figure relates to both retainer

fees and services rendered over time for which invoices

were submitted for the bills to be paid.

12. That retaining external solicitors is not out of the ordinary

as the University is a body corporate and therefore could

sue and be sued.

13. That as a body corporate, the Attorney General Could not

directly conduct its cases for it since if it were so, the

Attorney General may not have the needed space to deal

with substantial government business.



14. That the advice to set up a legal directorate even though

belated, it is taken in good faith as same has been done

already since May 2017 till date.

Accruals basis of accounting


(FAR) 2004, LI 1802, stipulates that the Public Accounts be compiled

generally on the basis of accrual accounting.

1182. We noted that the financial statements of the University were

prepared on modified cash basis instead of adoption of accrual basis

of accounting.

1183. This could be due to non-adherence to the above regulation

by Management.

1184. Comparability of financial information with other public

Universities could be impaired.

1185. We urged that, Management trains the finance staff on the

application of International Public Sector Accounting Standard

(IPSAS) to equip them in the compliance with the above regulation.

1186. Management has taken noticed of your recommendation and

workshop will be organised to train the finance staff to equip them

in the implementation of the new International Public Sector

Accounting Standards (IPSAS).

NATIONAL SERVICE SCHEME (NSS) Introduction


Service Scheme (NSS) for the two years ending 31 December 2017.



Operational results

1188. The Scheme’s operations for the year ended with a deficit of

GH¢32,251,317.00 as compared to the 2016 figure of

GH¢18,913,061.00 representing a significant fall of 70.5%. The

performance indicators are shown table 123.


Income 2017 GH¢

2016 GH¢

% change

Government Subvention

299,072,679.00 195,196,704.00 53.2

Internally Generated Funds

9,471,872.00 7,732,128.00 22.49

Other Income 25,963,969.00 - 100.0

Total Income 334,508,520.00 202,928,832.00 64.8

Expenditure

National Service Personnel Allowance

353,048,128.00 210,029,791.00 68.09

Compensation for Employees

2,494,866.00 2,696,704.00 (7.5)



Income Surplus (32,251,317.00) (18,913,061.00) 70.5

1189. Total income of the Scheme increased by 64.8% from

GH¢202,928,520.00 in 2016 to GH¢334,508,520.00 in 2017. The

rise was largely due to a 53.2% increase in Government subvention.

1190. Total expenditure increased by 65.3% from

GH¢221,841,893.00 in 2016 to GH¢366,759,837.00 in 2017. The

increase in total expenditure was due to a 23.1% increase in

expenditure on goods and services.



Financial position

1191. The Scheme’s financial position as at 31 December, 2017, is

provided in the table 124.

Table 124: Financial poition as at 31 December, 2017

2017

GH¢

2016

GH¢

%

change Non-Current Assets 7,082,374.00 6,243,820.00 13.4

Current Assets 41,305,121.00 75,292,189.00 (45.1)

Current Liabilities - 897,197.00 (100)

Net Assets 48,387,495.00 80,638,812.00 (40.0)

Current Ratio

83.9:1

1192. The Non-Current Assets of the Scheme in 2016 was

GH¢6,243,820.00 which saw an increase of GH¢838,554.00 or

13.4% to GH¢7,082,374.00 in 2017. The increment was as a result

of additions to the non-current asset during the year.

1193. Current Assets, however, saw a decrease from

GH¢75,292,189.00 in 2016 to GH¢41,305,121.00 in 2017. The

downward turn of 45.1% was as a result of decrease in Cash and

Bank balances.

1194. Current Liabilities also went down by 100% from

GH¢897,197.00 in 2016 to nil in 2017. This was due to outright

payments of over payment recoveries and taxes due Ghana Revenue

Authority.

1195. Current Ratio measuring the liquidity position for 2017

showed a healthier position in 2017 as compared with 83.9:1 in

2016, meaning the Scheme can meet its short-term obligations as

and when they fall due.



MANAGEMENT ISSUES

Payment of salary from IGF-GH¢688,132.06

1196. Section 5(c) of the Retention of Fund Act of 2007, (Act 735)

stipulates “Internally Generated Fund (IGF) shall not be used for

the payment of salaries, staff benefits and other allowances except

the allowances are directly related to the provision of services that

will lead to increase of revenue.

1197. In contravention of the above Regulation, Management

authorised and paid salaries amounting to GH¢688,132.06 to four

(4) Government appointees.

1198. The payment which started from February 2017 was said to

be their monthly remuneration which Government was yet to take

over. The net amounts received by the appointees are shown in the

table 125.

Table 125: Payment of salary from IGF

Name Period Designation Amount GH¢

Hon. Mustahpha Usif Feb 2017 – Mar 2018 Exe. Director

242,000.08

Mrs. Adjoa Van Vicker Feb 2017 – Mar 2018 Dep. Director (HR)

109,576.74

Mr. Henry Nana Boakye Feb 2017 – Mar 2018 Dep. Director (Ops)

157,420.62

Miss Gifty Afia Oware-Aboagye

Feb 2017 – Mar 2018 Dep. Director (F&A)

179,134.62

Total 688,132.06

1199. Government’s delay in processing the salaries and

regularising the appointment of the appointees resulted in the

irregularity.



1200. Monies meant to fund the daily operations of the Service was

used to finance employee compensation.

1201. We recommended that the amount paid to the appointees be

recovered when their salary arrears are paid to them.

1202. The Head of Accounts should ensure that the tax deducted

from these payments is not remitted to the Commissioner because

Government would have deducted the tax at source from the salary

arrears. The deduction and payment of same to the Commissioner

may result in double payment of tax.

1203. Management responded that they are in the process of

securing financial clearance from the Ministry of Finance for the

payment of their salaries.

Payments not supported with official Receipts-GH¢908,644.05

1204. Regulation 39(c) of FAR 2004 states that the head of the

accounts section of a department shall control the disbursements of

funds and ensure that transactions are properly authenticated to

show that amounts are due and payable.

1205. Examination of sampled payment vouchers used for the

payment of various services rendered to the Scheme disclosed that

a total amount of GH¢908,644.05 was paid to various companies

without demanding official receipts from them to authenticate

payments. Details are attached as table 126.

Table 126: Payments not supported with official Receipts Date PV No Cheque

No

Details Name of

Payee

Amount

10/25/2016 IGF 62/10/16 119923 Charges for

preparation of

2014/15 Fin

statement

Kaasway

consult

36,220.00



11/25/2016 IGF 60/11/16 110485 Acco & refreshment for

staff for

recruitment

GCB learning

Center

13,665.25

11/30/2016 IGF 69/11/16 110497 Fixing of

Burglar proof at

Reg Co-ord council

Isaac Metal

Works

12,889.75

3/8/2017 IGF 13/03/17 110649 NASPA dues to

NASPA H/Q

? 248,070.00

3/22/2017 IGF 57/03/17 110708 Imprest to NSS

A R

Reg Dir –

AR

10,000.00

4/20/2017 IGF 30/04/17 110849 NASPA dues to

ER

Reg Dir –

ER

37,706.40

4/20/2017 IGF 31/04/17 110850 NASPA Dues to

WR

Reg Dir –

WR

45,612.00

4/20/2017 IGF 32/04/17 110852 NASPA Dues to BA R

Reg Dir BA R

21,340.00

4/20/2017 IGF 36/04/17 110853 NASPA Dues to

VR

Reg Dir VR 18,453.60

4/20/2017 IGF 34/04/17 110854 NASPA Dues to

NR

Reg Dir NR 32,522.40

4/19/2017 IGF 35/04/17 110855 NASPA Dues to

UER

Reg Dir

UER

10,792.80

4/20/2017 IGF 36/04/17 110856 NASPA Dues to

UER

Reg Dir

UER

12,031.20

4/19/2017 IGF 39 110857 NASPA Dues to AR

Reg Dir AR 135,417.60

2/10/2017 IGF 02/02/17 110610 Renewal of NSS

of cloud license

for the period

2017 & 2018

Jonathan

Antwi

5,019.85

22/02/2017 IGF 08/02/17 110616 Paymt to

Project A/C to

purchase of birds (305) to

staff for x'mas

Project

account

10,675.00

7/20/2017 IGF 48/07/17 Participation

fee,

accommodation

and refreshment for

Executive

Director, two

Nat West

Bank

7,511.00



deputies in Akosombo 8th -

12th August

2017

7/19/2017 IGF 58/07/17 110188 Purchasing of

two thousand

layers for Nugua farms

Akate

Farms &

trading ltd

8,400.00

7/19/2017 110159 Purchase of

feed (layer

mash, 558

bags) for layers

for Nugua farms

Gr. Accra

Poultry

farmers

Ass.

42,966.00

7/27/2017 IGF 68/07/17 110192 Purchase and

supply of

customised

seals for

2017/2018

posting registration

Skyglow

28,200.00

8/22/2017 IGF 56/08/17 110285 Purchase and

supply of

custommised

maise sacks for

mass harvesting of

maize pdtn in

dawhenya farm

Poly Sacks

Gh ltd

38,500.00

8/31/2017 IGF 84/08/17 110303 Customization

of IT and other

MIS

Management solution

Open

Systems

Gh

10,300.00

9/6/2017 IGF 13/09/17 110323 Payment of

renovation

works at

Deputy Exe Dir

(F&A) bungalow at Labone

Neto

Concrete

94,729.20

9/6/2017 IGF 22/09/17 110337 Payment for

a/c as part of

renovation

works at

APRiJUNE

Ltd

19,422.00



Deputy Exe Dir (F&A) bungalow

at Labone

9/19/2017 IGF 38/09/17 110355 Funds to the

regional

Director,

Winfred, to procure inpute

for Abotia-

Kpota farms

Volta

Region

8,200.00

Total 908,644.05

1206. This infraction could be attributed to lack of effective control

or supervision on the work of the accounting officers by the head of

accounts.

1207. The failure to attach original receipts from the payees to the

payment vouchers made it difficult to ascertain whether the

amounts were actually paid to the beneficiaries and the services

were rendered accordingly.

1208. Management should ensure that original receipts from the

payees are attached to the payment vouchers for our verification.


Akim Oda

Failure to pay 20% and 10% NSS allowance to chest–

GH¢7,826.48

1210. Section 16 (1) of the National Service Scheme Act, 1980 (Act

426) states that it shall be the duty of every employer to ascertain

from every employee, upon his appointment, whether or not he is

liable to national service and if he is, the employer shall notify the

fact to the Board forthwith.



1211. We noted from the appointment letters issued to 10 national

service personnel that, service charges ranging from 10% and 20%

of their national service allowance were payable to the Scheme but

there was no evidence to substantiate whether the payments had

been made.

1212. The lapse was attributed to weak supervision over National

Service Personnel serving in employment or working with private

institutions by management.

1213. We were unable to determine whether an amount of

GH¢7,826.48 payable to the Scheme had indeed been paid.

1214. We urged Management to demand evidence of payment before

National Service Certificates are issued to the 10 National Service

Personnel concerned.

1215. Management said the 10 service personnel were not processed

for the award of NSS Certificate but we were unable to substantiate

this claim due to his frequent absenteeism.

New Abirem

Failure to Pay 20% and 10% of Service Allowance to Chest-

GH¢29,516.47






1217. We noted from the appointment letters issued to 8

government employees and 18 private national service personnel

between September 2018 and August, 2019 that, service charges of



10% and 20% amounting to GH¢29,516.47 of their national service

allowances was payable to the Scheme. The District Coordinator

failed to provide the audit team with evidence of their monthly

payments to the scheme.

1218. The lapse is attributed to weak supervision by the District

Coordinator over service personnel. We were unable to determine

whether the amount of GH¢29,516.47 payable to the Scheme had

indeed been paid.

1219. In responds Management stated that it is the responsibility of

the Regional office to collect the 20% and the 10% and not the

District office. Besides the private organisations personnel were

given a specific account number through which the amounts were

to be paid into.

1220. We urged the District Coordinator to demand evidence of

payment from the Regional Accountant and make them available for

our verification.

Akim Ofoase

Failure to pay 10% Service Charge to the State- GH¢2,012.00






1222. We noted that three National Service Personnel who were

already on Central Government payroll but registered to do National

Service and posted to the under listed institutions failed to pay a



total annual amount of GH¢2,012.00 as a service charge to the

Scheme for the 2018/2019 national service year.

1223. We attributed the lapse to lack of proper controls to ensure

that such payments were deducted at source by the Controller &

Accountant General Department on behalf of the State since the

Service Personnel are already on the Central Government Payroll.

1224. The delay in payment of the 10% service charge to the State

has deprived her of funds to execute other activities including the

payment of allowances of service personnel.

1225. We recommended that the GH¢2,012.00 should be recovered

from the Service Personnel involved, failing which the Regional

Director may be surcharged with the amount since he was

responsible to ensure recovery of the such service charge in the

circumstance. Management accepted our recommendation for

compliance.

Nkwanta

Unearned Allowances - GH¢26,832.00

1226. Regulation 297 of Financial Administration Regulations 2004

(LI 1802) requires a head of department to ensure the immediate

stoppage payment of salary to a public servant when that public

servant has been absent from duty without leave or reasonable

cause for a period as stipulated in the administrative regulation of

the establishment.

1227. Four (4) National Service Personnel posted to the Nkwanta

South Municipality collected allowances totalling GH¢26,832.00

within the service period of September 2017 to July 2018 for which

they did not earn. The details are shown in table 127.



Table 127: Unearned Allowances

S/N Name NSS No. E-Zwich

NO.

Posting Nature of

Infraction

Amount

GH¢

1 Addae

Kwabena

Clifford

NSSGNS003017 67529286-8 NHIA-

Nkwanta

The Personnel

is already

employed by

the user agency

(NHIA)

6,708.00

2 Anto

Nawomy

Afua

NSSGC2073517 67454577-2 E.P.

Primary

School

Nkwanta

There was no

proof of

attendance to

work

6,708.00

3 Ligan Kofi

Simon

NSSGAC052517 50557955-9 Beyond

FM-

Nkwanta

Served under

non-subverted

category, but

paid for under

subvented

category.

6,708.00

4 Ebenezer

Makundal

Kwabena

Nbo

NSSGCC184517 67563704-9 Nkwanta

DA Primary

A

There was no

evidence of

attendance to

work

6,708.00

Total 26,832.00

1228. The infraction resulted in the state losing GH¢ 26,832.00.

1229. We recommended that the amounts should be recovered from

the culprit.

UNIVERSITY OF CAPE COAST

Introduction 1230. This report relates to the audited accounts of the University

of Cape Coast for the year ending 31 December 2018.

Operational Results 1231. The University recorded a surplus of GH¢69,178,127 in 2018

as compared with a surplus of GH¢91,367,372.28 in previous year,



representing 24.3% decrease. The comparative performance

indicators for the two years are shown in table 128.

Table 128: Income & Expenditure for the year 2018

Income 2018 GH¢

2017 GH¢

% Change

Government Grant 216,829,830 210,998,957 2.8

Research Grants - - -

Donations 234,102 190,703 22.8

Admission Fees 170,645,119 156,077,822 9.3

Examination Fees 28,169,120 29,221,758 (3.6)

Other Income (IGF) 88,474,573 83,895,538 5.5

Total Income 504,352,744 480,384,777.56 5.0

Expenditure

Academic Expenses 257,118,144 222,831,652 15.4

Library Expenses 6,827,961 6,067,014 12.5

Research Expenses 4,048,237 3,986,149 1.6


33,595,148 29,606,113 13.5

Student & Staff Facilities Expenses

51,760,094 46,574,498 11.1

Municipal Service Expenses

50,501,082 50,206,329 0.6

Miscellaneous Expenses

31,323,951 29,745,650 5.3

Total Expenditure 435,174,617 389,017,405.28 11.9

Surplus/Deficit 69,178,127 91,367,372.28 (24.3)

1232. The income registered an increase of 5.0 % from GH¢

480,384,777.56 in 2017 to GH¢ 504,352,744. The movement was

due to increase in Government Grant, Research Grants, Donations

and Admission Fees.

1233. The total expenditure also went up by 11.9% from

GH¢389,017,405.28 in 2017 to GH¢435,174,617 in 2018 this was

largely due to increase in Academic, Library, Research,

Administrative, Student & Staff Facilities Expenses in 2018.



Financial position

1234. The University’s financial position as at 31 December 2018 is

shown in table 129.

Table 129: Financial position as at 31 December 2018 Items 2018

GH¢ 2017 GH¢

% Change

Non - Current Assets 962,624,291 954,329,042 0.86

Current Assets 397,793,325 324,344,912 19.72


Net current Assets 339,158,615 275,367,355 18.81

Liquidity Ratio 6.8:1 6.62

Non-Current Liabilities

8,298,546 - 100

Reserves 1,293,484,359 1,229,696,397

1235. The Non-Current Assets increased from GH¢954,329,042 in

2017 to GH¢962,624,291 representing 0.86% increase. The

movement was due to additions in Plant Property and Equipment.

1236. Current Assets increased by 22.65% from GH¢324,344,912 in

2017 to GH¢397,793,325 in 2018. The rise was due to increase in

staff debtors, inventories and student debtors.

1237. The Current Liabilities recorded 19.72% increase from

GH¢48,977,557 in 2017 to GH¢58,634,710 in 2018. This was

mainly due to non-payment of debt owed trade creditors.

1238. The liquidity position as measured by current ratio of 6.8:1 in

2018 and 6.62 in 2017 financial years indicates the ability of the

University to meet its short-term debts when they fall due. We urged

Management to continue improving the liquidity position of the

University.



MANAGEMENT ISSUES

Revenue unaccounted for- GH¢55,557.60

1239. Regulation 15 (1) of the Financial Administration Regulations,

2004 (L.I. 1802) stipulates “Any public officer or revenue collector

who collects or receives public and trust moneys shall issue official

receipts for them and pay them into the relevant Public Fund Bank

Account within twenty-four hours of receipt except in exceptional

circumstances to be identified by the Minister”.

1240. We however noted that, Mr Kwame Fenyi a Senior

Administrative Assistant of the University Accra Office and Mr.

Francis Arthur of UCC Enterprises did not account for a total

revenue of GH¢55,557.60 collected between June 2017 and April

2018. Details are shown in table 130.

Table 130: Revenue unaccounted for Date of

collection

Name of officer Total

collection

Total

amount

accounted for

Total amount

unaccounted for

4 June 2017 Mr. Kwame Fenyi 50,653.10 - 50,653.10

17 April 2018 Mr. Francis Arthur 4,904.50 - 4,904.50

Total 55,557.60 55,557.60

1241. We attributed the lapse to control weakness in place at the

account’s division of the University.

1242. This led to a loss of GH¢55,557.60 revenue to the University.

1243. We recommended that the total amount of GH¢55,557.60

should be recovered from Mr. Kwame Fenyi and Mr. Francis Arthur

and paid to the University’s account for our verification.



1244. Management in response indicated that the officers have been

taken through disciplinary process but an appeal from the legal

counsel of Kwame Fenyi stalled the recovery process.

Misuse of IGF to clear Goods for a Private Cmpany- GH¢113,116.56

1245. Regulation 39(2) (c) (d) of the Financial Administration

Regulations 2004 (L.I. 1802) states that, the head of accounts

section of a department shall control the disbursement of funds and

ensure that transactions are properly authenticated to show that the

amounts are due and payable and order disbursements that does

not meet the requirement is rejected.

1246. However, our vouching of IGF disclosed that the University

paid a total amount of GH¢113,116.56 to Top Express Freight

Handling Ltd to clear 3600 MIFIs and 8000 U Sim Chip from KLM

Airlines for Bolte Communication Limited a private company in

contravention of the regulation cited above.

1247. Further scrutiny disclosed that the Vice Chancellor Professor

Ghartey Ampiah directed the Director of Finance to pay for clearance

of the goods because KLEOS UK Ltd had offered the MIFIs and the

U Sim Chips for free to the University, but Bolte Communications

Limited took delivery of the goods from the University’s Stores on

20/8/18 preventing the University access to MIFIs and the U Sim

Chips for use.

1248. However, all import documents sighted were in the name of

Bolte Communication Limited and not the University. Details are

shown in table 131.



Table 131: Internally Generated Fund Used to pay for Custom Duty

Date Cheque No

P.V No

Payee Details Amount (GH¢)

11/4/2018 186891 1141 Top Express Freight Handling Ltd

Payment for clearing MIFIS and Chip for the University

113,116.56

Total 113,116.56

1249. We blamed the anomaly on lack of due diligence on the part

of Vice Chancellor before authorising the Director of Finance to pay

the amount. This led to payment without benefit to the University.

1250. We recommended that the total amount of GH¢113,116.56

should be recovered from Bolte Communication Limited with

interest, failing which the total amount of GH¢113,116.56 should be

recovered from the Vice Chancellor, Professor Ghartey Ampiah with

interest.

1251. Management noted the observation for compliance.

Payment for Information Technology Services without

Justification - GH¢451,530.00 1252. Regulation 39(2) (c) (d) of the Financial Administration

Regulations 2004 (L.I. 1802) enjoins the head of accounts section

of a department to control the disbursement of funds and ensure

that transactions are properly authenticated to show that the



1253. KLEOS Technology provided an invoice which indicated that

20,000 students and officers had used KLEOS Services at a cost of

$ 15 per person leading to a total indebtedness of $300,000.00. The



University made a part payment of $ 100,000.00 (GH¢451,530.00)

out of the $300,000.00, using an exchange rate of GH¢4.5153 to $1

without justification.

1254. The Director of ICT Services of the University Dr. Regina

Gyampoh-Vidogah could not provide any scientific basis for the

billing of the amount put forward by the service provider but went

ahead and recommended for the payment of same. The Director went

further to postulate that KLEOS technology had been working well.

1255. Further review disclosed that even though the Director of

Finance Mrs. Elizabeth Obese opposed the payment through a memo

dated 8 June 2018 to the Vice Chancellor drawing his attention to

financial difficulties with the payment, the University Council

through its special meeting held on Friday 22 June 2018 approved

of the payment by considering only the Director of ICT Service’s

recommendation and not that of the Director of Finance. Details are

shown in table 132.

Table 132: Payment for Information Technology Services without

Justification

Date Cheque

No

PV

No

Payee Description Amount

(GH¢)

29/06/2018 385813 57 KLEOS

Technology

Payment for Service

Charges in respect

of usage of KLEOS

Technology-

2017/2018

451,530.00

Total 451,530.00

1256. We blamed the anomaly on the Council override on the advice

of the director of finance, as well as the Director of ICT services Dr.

Regina Gyampoh-Vidogah’s inability to analyse KLEOS Technology’s

bill with statistical data to inform management decision.



1257. This could result in over or under payment to KLEOS

Technology Services.

1258. We recommended that KLEOS Technology, the Council and

the University Director of ICT services Dr. Regina Gyampoh-Vidogah

should provide evidence that 20,000 students and officers of the

University did use the KLEOS services, the basis of the invoice and

payment of GH¢451,530.00 to KLEOS Technology, failing which all

payments to KLEOS Technology should stop and the amount of

GH¢451,530.00 ($100,000.00) recovered from KLEOS Technology,

the Council, and the Director of ICT services Dr. Regina Gyampoh-

Vidogah.

1259. Management responded that the 20,000 students at a cost of

$15 per person was used as a basis in putting together the Build

Own Operate Transfer (BOOT) Agreement for the service provider to

recover his investment and that the usage varies hence their

inability to provide statistical data to support the payment.

Additionally, Management indicated that the Director of Finance

MEMO predates the Director of ICT Services report which provided

statistics to inform Council decision.

1260. Management, however stated that the Build Own Operate

Transfer (BOOT) Agreement between the University and KLEOS

Technology was on user fee of $15 per user up to minimum of 20,000

and maximum of 50,000 users for the ten year period of the

agreement but nowhere did the agreement states that the figures

used were for cost recovery purposes. The audit team could not

accept Management response and still maintain the position that

since the agreement is for user fee and the invoice from KLEOS

Technology clearly indicated that 20,000 users had used KLEOS

Services at a cost of $ 15 per user, then details or statistics on the

KLEOS Technology should be provided to the audit team for

verification and analysis.



Outstanding Loans to the University GH¢8,555,070.47


2004 stipulates that a head of department, or the officer to whom

the duties of the head of department have been delegated shall

ensure that debts due are recovered in accordance with the

appropriate agreement.

1262. Contrary to this Regulation we noted during our audit that,

the University granted loans amounting to GH¢9,234,190.31 to

Students Representative Council (SRC) and University of Cape Coast

Alumni but recovered only GH¢679,119.84 with a difference of

GH¢8,555,070.47 not recovered as at 31/12/18. The University

Council directed per its 96th Meeting held on 2nd March 2018, that

since the University guaranteed the Prudential Bank facility for the

SRC and UCC Alumni then it should take over the loan and repay it

on behalf of the defaulters. Details are shown in table 133.

Table 133: Outstanding Loans to the University Date P.V No organisation

/group Amount Granted (GH¢)

Amount repaid

Outstanding balance as at 31/12/18

Unit/ Department

27/3/18

Transfer

letter no.AS/94/SF.5B/V.3/02

29 Dated 15/2/17

UCC Alumni 4,368,104.58

679,119.84 3,688,984.74 CODE

12-Apr-18 Transfer letter

Loan to SRC Hostel

500,000.00 - 500,000.00 Business School

31-May-18 Transfer Letter

Loan to SRC Hostel

500,000.00 - 500,000.00 Business School

30-April-18

Transfer letter

Loan to SRC Hostel

1,500,000.00 - 1,500,000.00 College of Educational Studies

22-Mar-18 Transfer letter

Loan to SRC Hostel

2,366,085.73

- 2,366,085.73

Institute of Education

Total 9,234,190.31 679,119.84 8,555,070.47



1263. We blamed the anomaly on the University Council for

providing guarantee to the SRC and UCC Alumni loans without due

diligence to ensure regular inflows to repay the loans.

1264. The anomaly could lead to depletion of the University coffers

thereby denying the University funds for its activities.

1265. We recommended that Management should recover the

outstanding loans of GH¢8,555,070.47 from SRC and UCC Alumni

or take over the facilities based on which the loan was contracted.

Again, the Council in future should conduct financial feasibility

studies before providing guarantee to loan facilities.

1266. Management in response indicated that it has taken over the

hostel from UCC Alumni for which the loan was contracted and the

building is now recognised as a University asset in the 2018 financial

statement. Management also indicated that a repayment plan had

been agreed with the SRC to recover the loan.

Unjustified Deductions from Fuel Commission Revenue-

GH¢15,570.00






1268. Our audit disclosed that GOIL Ghana Ltd deducted a total

sum of GH¢15,570.00 from fuel revenue due UCC Enterprise

without justification. Out of total revenue of GH¢676,000.00 due

UCC Enterprise as commission on sale of fuel, GOIL Ghana Ltd

deducted an amount of GH¢15,570.00 for generator, electrical



works and others without agreement or approval from UCC

Enterprise and paid only GH¢660,430.00 to the University. Details


Table 134: Unjustified Deductions from Fuel Commission Revenue

Month

2018

Monthly

Volume

Lifted

(Litres)

Commission

PER LITRE

due UCC

Enterprise

Total

Commission

due UCC

Enterprise

GH¢

Unjustified

Deductions

By Goil

Ghana Ltd

GH¢

Total

Commission

Paid

GH¢

Deductions

At Source

GH¢

Reasons for

Deductions

January 266000 0.2 53,200.00 1,000.00 52,200.00 1,000.00

Generator

Fuel

February 225000 0.2 45,000.00 600.00 44,400.00 600.00

Generator

Fuel

March 306000 0.2 61,200.00 600.00 60,600.00 600.00

Generator

Fuel

April 270000 0.2 54,000.00 1,100.00 52,900.00 1,100.00

Generator

Fuel

May 270000 0.2 54,000.00 6,160.00 47,840.00 6,160.00

Electrical

Works And

T&T For

Training

June 265500 0.2 53,100.00 1,710.00 51,390.00 2,760.00

Generator

Fuel And

Thermometer

July 324000 0.2 64,800.00 700.00 64,100.00 700.00

Generator

Fuel - 700.00

August 162000 0.2 32,400.00 - 32,400.00 -

Sept 256500 0.2 51,300.00 700.00 50,600.00 700.00

Generator

Fuel

October 288000 0.2 57,600.00 1,600.00 56,000.00 1,600.00

Generator

Fuel

Nov. 351000 0.2 70,200.00 700.00 69,500.00 700.00

Generator

Fuel

Dec. 396000 0.2 79,200.00 700.00 78,500.00 700.00

Generator

Fuel

Total 3380000 0.2 676,000.00 15,570.00 660,430.00 15,570.00

1269. We blamed the lapse on the Enterprise Accountant’s inability

to reconcile with GOIL Ghana Ltd and obtain justification for the

deductions resulting in a reduction in the fuel commission revenue

due the University.



1270. We recommended to Management to obtain justification from

GOIL Ghana Ltd for the deductions, failure of which GOIL Ghana

Ltd should refund the total amount of GH¢15,570.00 to the

University.

1271. Management in response indicated that it will reconcile with

GOIL Ghana Ltd to recover any unjustified deductions.

Outstanding Institutional Affiliation Fees-$1,401,185.64 1272. Regulation 2(d) of the Financial Administration Regulations,

2004 (L.I. 1802) states that the head of government department shall

secure the due and proper collection of government revenue

collectable by the department within the terms of any enactment or

of instructions issued or approved by the Controller and

Accountant-General.

1273. On the contrary we noted that forty-four (44) affiliated

institutions owed the University a total sum of US$1,401,185.64 in

respect of unpaid affiliation fees as at 31 December 2018. Details

provided in table 135.

Table 135: Outstanding Institutional Affiliation Fees

No.

Name Of

Institution

Arrears Of

Aff. Fees

USD

Charge

2018 / 2019

USD

Total

Payable

USD

Amount

Paid

USD

Debt As At

31/12/18

USD

1

Academic

City College,

Agbogba,

Accra

30,000.00

12,000.00

42,000.00

16,000.00

26,000.00

2

Animal

Health &

Production

College,

Pong Tamale

13,312.69

2,540.00

15,852.69

2,405.07

13,447.62

3

Baldwin

College

4,430.00

11,000.00

15,430.00

13,030.00

2,400.00

4

Bimaks

College Of

Business

2,968.35

4,200.00

7,168.35

4,968.35

2,200.00



And Health

Sciences

5

Catholic

University

College Of

Ghana,

Fiapre

125,391.16

52,400.00

177,791.16

31,645.57

146,145.59

6

Christ

Apostolic

University

College

28,200.00

28,500.00

56,700.00

28,200.00

28,500.00

7

Christian

Service

University

College

18,184.21

7,920.00

26,104.21

2,531.65

23,572.56

8

College Of

Health And

Wellbeing,

Kintampo

-

16,980.00

16,980.00

16,980.00

9

College Of

Health,

Yamfo

-

8,000.00

8,000.00

8,000.00

10

College Of

Integrated

Healthcare

2,231.58

2,000.00

4,231.58

2,000.00

2,231.58

11

Community

College

54,925.88

14,440.00

69,365.88

7,594.95

61,770.93

12

Csir College

Of Science

And

Technology

33,588.33

21,000.00

54,588.33

33,588.34

20,999.99

13

Dominion

University

College

71,627.30

18,240.00

89,867.30

17,190.23

72,677.07

14

Enterpreneu

rship

Training

Institute

44,383.74

22,640.00

67,023.74

44,315.84

22,707.90

15

Evangelical

Presbyterian

University

College, Ho

106,778.98

50,860.00

157,638.98

19,240.50

138,398.48

16

Ghana

Baptist

University

College,

Kumasi

75,578.66

57,580.00

133,158.66

71,422.28

61,736.38



17

Ho Technical

University,

Ho

2,925.17

2,560.00

5,485.17

2,925.17

2,560.00

18

Joyce Ababio

College Of

Creative

Design,

Accra

7,355.89

2,000.00

9,355.89

-

9,355.89

19

Kings

University

College

75,252.13

57,870.00

133,122.13

-

133,122.13

20

Kwadaso

Agricultural

College

27,436.05

10,760.00

38,196.05

8,674.50

29,521.55

21

Maranatha

University

College

70,100.70

14,000.00

84,100.70

3,797.47

80,303.23

22

Marshall

College

48,145.89

13,800.00

61,945.89

15,731.65

46,214.24

23

Methodist

University

College

Ghana

9,601.34

11,400.00

21,001.34

10,483.05

10,518.29

24

Modal

College

2,000.00

2,000.00

2,000.00

25

Nduom

School Of

Business

And

Technology

-

22,000.00

22,000.00

-

22,000.00

26

Nurses

Training

College,

Patang

1,493.67

3,980.00

5,473.67

1,493.67

3,980.00

27

Ohawu

Agricultural

College

11,566.03

3,360.00

14,926.03

5,515.38

9,410.65

28

Ophthalmic

Nursing

School, Korle

Bu

3,960.00

3,140.00

7,100.00

3,960.00

3,140.00

29

Organisation

Development

Institute

22,609.44

6,210.00

28,819.44

6,784.80

22,034.64

30

Pentecost

Unversity

College

6,000.00

27,000.00

33,000.00

8,000.00

25,000.00



31

Perez

University

College

31,280.00

15,020.00

46,300.00

17,780.00

28,520.00

32

Presbyterian

University

College,

Ghana

13,000.00

22,000.00

35,000.00

4,000.00

31,000.00

33

Public

Health

Nursing

School, Korle

Bu

3,963.01

4,960.00

8,923.01

4,739.24

4,183.77

34

School Of

Anaesthia ,

37 Military

Hospital

4,120.00

4,120.00

-

4,120.00

35

School Of

Anaesthia ,

Ridge-Accra

-

4,940.00

4,940.00

4,940.00

36

School Of

Dispensing

Optics,

Oyoko

7,000.00

5,020.00

12,020.00

8,483.10

3,536.90

37

School Of

Peri-

Operative

And Critical

Care

Nursing,

Korle Bu

8,000.00

17,260.00

25,260.00

8,000.00

17,260.00

38

Sefwi Asafo

Nursing

Training

School

5,936.84

3,640.00

9,576.84

7,936.71

1,640.13

39

Spiritan

University

College

-

2,000.00

2,000.00

1,880.95

119.05

40

St. Peter And

Paul Pastoral

And Social

Institute

2,000.00

2,000.00

2,000.00

41

West End

University

College

65,502.08

26,080.00

91,582.08

20,253.17

71,328.91

42

Wisconsin

International

University

College

42,008.55

51,000.00

93,008.55

49,500.49

43,508.06



43

Yendi

College Of

Health

Sciences,

Yendi

4,600.00

2,000.00

6,600.00

5,000.00

1,600.00

44

Zenith

University

College

169,873.02

21,260.00

191,133.02

50,632.92

140,500.10

Total 1,249,210.69 691,680.00 1,940,890.69 539,705.05

1,401,185.64

1274. Management attributed the huge indebtedness to delays on

ill preparedness on the part of affected institutions to make good

their indebtedness thus, affecting the University’s revenue inflows.

1275. We recommended to Management to recover the

US$1,401,185.64 from the affected Institutions, including legal

actions where necessary.

1276. Management responded that it was in discussion with

Management of the affected institutions to introduce affiliation fees

as a line item in their fees to ensure regular flow of funds to pay

affiliation fees and develop a payment plan with the University to

reduce the debt. Management also said it is considering the no

payment no services policy.

Outstanding Rent for occupying the University Lands and Office spaces - GH¢365,927.16 and $35,903.34






1278. We noted that ten (10) corporate institutions occupying the

University’s Lands and Office Spaces owed the University unpaid



rent amount of GH¢365,927.16 and US$35,903.34 as at 31

December 2018. Details are shown in table 136.

Table 136: Outstanding Rent for occupying the University Lands and Office

spaces

S/N Tenent

Type Of

Prop-

erty

Size Location

Term /

Period Of

Rent

Period Of

Arrears (If

Any)

Arrears (If

Any)

Amount

Due (2018) -

Usd

Amount

Payable

(Usd)

Amount

Paid

(Usd)

Debt As At

31/12/18

(Usd)

1 Zenith Bank Ltd. Land0.31

ACRES

Opposite

Casford Field

30 Years:

1/1/19 To

31/12/2048

Jan 2016

To

Dec.2017

2,400.00 1,200.00 3,600.00 3,046.66 553.34

2Ghana Hostels

Ltd.Land 5.009 ACRES

On The C.A.

Akrofi Road

Heading To

Upshs

Check File

Jan 2011

To Dec

2017

10,500.00 1,500.00 12,000.00 0 12,000.00

3Epp Books

ServicesLand

0.40

ACRES

Opposite

Casford Field

1/4/2007 -

31/3/2019

13 Years

April 2007 -

Dec 20178,600.00 800 9,400.00 0 9,400.00

4 Baduwaa Hostel Land1.10

ACRES

Near Science

Market

50 Years

1/10/2001

To

31/9/2051

Oct 2015 -

Dec 2017 - 1,650.00 1,650.00 0 1,650.00

5Kingdom Books

& Stationary Ltd.

Building

Space205.39sqm

Educational

Foundations

Building

5 Years:

1/7/2018

To

31/12/2021

Nil - 12,300.00 12,300.00 0 12,300.00

Tenent

Type Of

Prop-

Erty

Size Location

Term /

Period Of

Rent

Period Of

Arrears (If

Any)

Arrears (If

Any)

Amount

Due (2018) -

GH¢

Amount

Payable

(GH¢)

Amount

Paid

Debt AS AT

31/12/18

Barclays Bank (2

No. Atm)Building Space22sqm

Science

Workshop

Building

11/2/11 To

10/2/18

11/2/18 To

10/2/2021

11/2/11 -

31/12/174,200.00 11,574.00 15,774.00 - 15,774.00

Gcb Bank Ltd. (2

No. Atm And

1no. E-Wich

Machine)

Building

Space

Science

Workshop

Building

1/9/2013

To 31/8/19

1/9/13 -

31/12/181,733.16 400 2,133.16 - 2,133.16

Adb Building Space197.14

SQM

Cafeteria

Building

1/6/18 To

31/5/2020

1/6/16 -

31/12/1747,500.00 33,500.00 81,000.00 - 81,000.00

Alliance

FrancaiseBuilding Space

45.16S

QM

Amissah

Arthur

Language

Centre

01/05/2017

-30/4/18

1/3/17 -

31/12/174,600.00 5,520.00 10,120.00 3,500.00 6,620.00

Total 217,633.16 151,794.00 369,427.16 3,500.00 365,927.16

260,400.001/6/15 To

31/5/2025

1/6/16 -

31/12/17159,600.00 100,800.00 260,400.00 -

Consolidated

Bank Of Ghana

(Formerly

Unibank Ghana

Ltd.)

Building Space403SQMCafeteria

Building

Outstanding Rent: GH305,927.16

Outstanding Rent $35,903.34



1279. We blamed the anomaly on delays in signing rent/tenancy

agreements since draft agreements sent to tenants sometimes took

over a year before they are signed or executed.

1280. The anomaly affected the cash flow position of the University

and denied it funds for maintaining the buildings and lands

occupied by the debtors.

1281. We recommended to Management to recover the outstanding

rent of GH¢365,927.16 and US$35,903.34 from the tenants and

always ensure that any bottlenecks that impede the smooth

collection of rent are taken away.

1282. Management responded that it had sent reminders to the

debtors to pay their debt and reconciliation had been prepared with

some affected institutions for repayment of any outstanding rent.

Expenditure on theft cases without Police or investigation report- GH¢9,449.50 1283. Regulation 227 of Financial Administration Regulations,

2004 (L.I.1802) requires the head of department to investigate the

circumstances of a loss to ascertain the extent and amount of the

loss and determine whether any officer or other fault of a public

officer has been revealed by the loss.

1284. Our audit disclosed that a total amount of GH¢9,449.50 was

paid for replacement of stolen items from the School of Business

Guest House without Police investigation report to support the

expenditure or the person to be held liable for the missing items. We

further gathered through our interactions with Management that

there were no security personnel at the Guest House. Details are

shown in table 137.



Table 137: Expenditure on theft cases without Police or Investigation

Report

Date PV Payee Items Amount Granted

Remarks Unit

06/11/2018 153 Bright A Adjetey

Special Advance to purchase A8+ Handset for a Client to replace stolen one

2,300.00 No investigation report

School of Business

27/07/2018 139 Bright A Adjetey

Cost of 5 GoTV Decoders and accessories stolen

2,000.00 No investigation report

School of Business

26/10/2018 173 Patrick Hold

brook

Payment for the

replacement of phone, cash and other personal belongings stolen from a client

5,149.50 No

investigation report

School of

Business

Total 9,449.50

1285. We blamed the anomaly on the absence of security personnel

at the Guest House. This led to financial loss of GH¢9,449.50 to the

Guest House.

1286. We recommended that the Guest House Manager who has

responsibility for the security of guests and assets at the facility

should be made to pay for the cost of the stolen items. Furthermore,

Management should put in place adequate security measures

including CCTV cameras at vantage points within the periphery of

the guest house. However, the matter should be taken up with the

police.

1287. Management in response indicated that security personnel

have been posted to the Guest House to curtail the occurrence of

such incident.



Unsupported Creditors/Payables-GH¢185,700.00


Regulations 2004 (L.I. 1802) stipulates “the head of accounts section

of a department shall control the disbursement of funds and ensure

that transactions are properly authenticated to show that the

amounts are due and payable and order disbursements that do not

meet the requirement is rejected”.

1289. Our review of the creditors ledger of the University’s Printing

Press disclosed that an amount of GH¢185,700.00 outstanding as

payables to Jay K Industries and Investment Limited as at 31

December 2018 were without supporting documents such as

invoices, store received vouchers and others to authenticate that Jay

K Industries and Investment Limited had supplied any such items

to the University. We therefore could not confirm the authenticity of

the amount payable to the Supplier. Details are shown in table 138.

Table 138: Unsupported Creditors/Payables

Date Narration Amount

GH¢

31-Dec-18 3,500pcs of UCC main calendars for 2019

21,000.00

31-Dec-18 21,375 code calendars for 2019 128,250.00

31-Dec-18 6,075 code calendars for 2019 36,450.00

185,700.00

1290. We attributed the lapse to poor records keeping at the

account’s office of the Printing Press which could lead to payment

for goods not supplied.

1291. We recommended to the University Printing Press accounts

officer to provide documentary evidence to authenticate the amount

payable of GH¢187,500.00, failing which the entries should be

reversed.



Shortages in Physical Stock Balance-GH¢15,443.44

1292. Regulation 183(3) of Financial Administration Regulations,

2004 (L. I. 1802) demands that a head of department shall be

accountable for the proper care, custody and use of Government

stores from the time of acquisition until they have been used or

otherwise disposed of in accordance with these Regulations”.

1293. Contrary to this Regulation, we noted descrepancies between

book balances and physical stock balances at the University Printing

Press during stock count. The value of the shortage noted was

GH¢15,443.44


Table 139: Shortages in Physical Stock Balance

1294. We blamed the lapse on lack of supervision on the Storekeeper

by the Printng Press Manager as this could lead to financial loss to

the University.

1295. We recommended that the storekeeper should produce

evidence of usage or physically produce the items, failing which the

total amount of GH¢15,443.44 should be recovered from him.

Ite mQ ty B a l B /F

G H¢

P u rc -h a s e s

G H¢Re tu rn s T ra n s fe rs

T o ta l S to c k

G H¢

Q ty Is s u e d

G H¢

E x p e c te d

B a l. G H¢

P h y -s ic a l

B a l.G H¢

Dif f . / S h o r-

ta g e

Un it P x

G H¢

S h o rta g e

G H¢

Un it /

De p a rtm e n t

Kors P late 600 7,250 - - 7,850 7,433 417 231 186 13 2,418.00UCC P rin tin g

P res s

Exercis e

Books

W ith ou t

Cover

97,942 - - - 97,942 56,021 41,921 38,321 3,600 0.83 2,988.00UCC P rin tin g

P res s

30x40 -

115g s m Art

P ap er

17,600 79,000 - - 96,600 87,445 9,155 3,800 5,355 0.64 3,427.20UCC P rin tin g

P res s

Van g u ard

Board -3 S h eet 2,584 6,000 7 - 8,591 3,031 5,560 5,400 160 1.13 181.28

UCC P rin tin g

P res s

Las er A4 Film 5,210 25,400 200 - 30,810 28,610 2,200 2,000 200 1.62 324UCC P rin tin g

P res s

25x36-70GS M

Bon d P ap er- 1,550,000 21,100 - 1,571,100 1,566,600 4,500 - 4,500 0.32 1,440.00

UCC P rin tin g

P res s

25x36-115

GS M Art

P ap er

- 32,500 2,214 920 35,634 23,345 12,289 5,000 7,289 0.64 4,664.96UCC P rin tin g

P res s

T o ta l 15 ,4 4 3 .4 4



Use of Internally Generated Funds to Pay End of Service

Benefits - GH¢4,223,294.40

1296. Section 5 ( c) of the Retention of Funds Act, 2007, (Act 735)

provides that despite any other provision to the contrary, 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.

1297. On the contrary we noted that Management paid an amount

of GH¢4,223,294.40 from Internally Generated Funds (IGF) to one

hundred and two (102) retired staff as end of service benefit for the

year 2018. Details are shown in table 140.

Table 140: Use of Internally Generated Funds to Pay End of Service Benefits

PV No. Date Details

Chque

No. Bank Amount

24 7/5/18

Payment of End of Service

to The Attached Named on

Behalf of The Late Michael

Baan (9294) 549933 0

21,415.33

25A 14/5/18

Payment of Ex-Gratia

Award on Behalf of Enchil

Gyan 549934 0

7,739.46

25B 14/5/18


Award on Behalf of the

Late Eric Somfo 549934 0

8,766.15

26A 14/5/18



Late Christiana Arku-

Korsah 549935 0

11,110.76

26B 14/5/18



Late Isaac Aidoo 549935 0

34,585.41

28 13/6/18

End of Service Benefit of

The Late Kwesi Abdulai

(13019) 549957 0

4,473.72

29 07/12/18


Benefit on Behalf of the

Late Henry Kojo-Obro

Asamoah 549938 0

38,749.97



30 07/12/18


Benefit on Behalf of The

Late Kwesi Appiah 549939 0

11,727.31

31 16/7/18


Award For 2018 Retirees 549940 ADB

500,951.30

32 16/7/18


Award For 2018 Retirees 549941 SG-SSB

72,090.30

33 16/7/18


Award For 2018 Retirees 549942 BBL

408,386.42

34 16/7/18


Award For 2018 Retirees 549943

Kakum

Rural

Bank

341,791.03

35 16/7/18


Award For 2018 Retirees 549944 NIB

218,359.53

36 16/7/18


Award For 2018 Retirees 549945 GCB

2,141,213.22

37 16/7/18


Award For 2018 Retirees 549946 ZENITH

103,191.60

38 16/7/18

Payment of End Of Service

Award For 2018 Retirees 549947 PBL

58,052.42

39 16/7/18

Payment of Loans

Recovered From End of

Service Award For 2018 549948 NIB

14,200.00

40 16/7/18

Payment Of Loans

Recovered From End Of

Service Award For 2018 54994 PBL

11,458.20

41 16/7/18

Payment Of Loans


Service Award For 2018 549950 0

455.70

42 16/7/18

Payment Of End Of

Service Award For 2018

Retirees 549951 0

7,793.63

43 16/7/18

Payment Of Loans


Service Award For 2018 549952 0

6,700.00

44 16/7/18

Payment Of Salary

Advance Recovered From

End Of Service Award For

2018 549953 0

333.33

45 16/7/18

Payment Of Loans


Service Award For 2018 549954

Golden Link

Savings

And Loans

4,065.00

46 16/7/18

Payment Of Loans


Service Award For 2018 549955

Co-Op.

Credit

Union, UCC

195,684.61

Total

4,223,294.40



1298. We blamed this anomaly on Management complicity; the use

of Internally Generated Funds to pay end- of- service benefit

amounts to misapplication of funds.

1299. We recommended that Management should stop using

Internally Generated Funds to pay end –of- service benefits to avoid

future sanctions.

1300. Management in response indicated that even though the end

of service benefit payment is a condition of service agreed with

government as compensation related, government has declined to

pay hence the University paying from Internally Generated Funds. Failure to Serve the University after Study Leave with Pay- GH¢1,868,638.72 1301. Section 16.1 of the Conditions of Service for Senior Members

of Public Universities of Ghana, 2011 provides that study leave with

pay may be granted at the discretion of the Vice-Chancellor and at

the rate of one (1) year leave after three (3) year’s work and the officer

granted one (1) year study leave with pay shall return to the service

of the University for at least two (2) academic years and for two (2)

years study leave with pay, three (3) years’ service thereafter is

required; a three (3) year study leave with pay attracts five years’

service to the University.

1302. Again Section 3 (vi) of the undertaking form for study leave

with pay requires that after the successful completion of the course

the officers granted study leave with pay shall return to serve the

University for a period of two times the number of years or pay in

lieu of service the total expenditure including salaries, and

allowances plus interest at the bank rate during the period of study

leave.



1303. On the contrary, we noted that the University granted study

leave with pay amounting to GH¢1,868,683.72 to eight (8) staff

members but the officers did not return to serve the University as

required. Details are shown in table 141.



No . Na m e S ta f f Id De p 't

P e rio d O f

S tu d y

Le a v e

T o ta l S a la ry

Re c 'd

G H¢

B o o k &

Re s e a rc h

Allo w.

G H¢

W a rm

Clo th In g

G H¢

S tip e n d

G H¢

Air T ic ke t

G H¢

Re s e a rc h

G ra n t

G H¢

T u itio n

G H¢

B o o k

Allo wa n c e

G H¢

T o ta l E x p .

O n S tu d y

Le a v e

G H¢

In te re s t @

15 .5 %

B .O .G Ra te

P e rio d

S e rv e d 1

Ye a r (1/3 )

T o ta l

E x p e c te d

Re fu n d

W ith

In te re s t

Co lle g e

1 Fran k Boah en 11075

Dep t Of

Con s er vation

& Biolog y

S ep . 14 To

J u l. 1855,432.36 - 55,432.36 8,592.02 64,024.38 Can s

2Gid eon

Nim ako12342

Dep t. Of

Com p . S ci.&

In fotech

Nov. 13 To

Ap r. 18324,599.23 0 0 324,599.23 50,312.88 374,912.11 Can s

3 Elias K.

Men yan u 12696 Hp er

Au g . 14 – J u l.

18 258,528.83 20,054.10 1,880 280,462.93 43,471.75 323,934.68 Ces

4S im on P eter

Kafu i Ah eto14730 Cod e

Mar. 14 –

Dec. 1889120.11 42,336 6,917 5,055 21,414.44 842.5 165,685.05 25,681.18 63,788.44 127,577.49 Cod e

5Collin s Os ei-

S arp on g15063 Dep 't Of

J u n . 15 – Dec.

18197,558.83 1,930 0 0 0 0 0 199,488.83 30,920.77 0 230,409.60 Coh as

6 Gloria Otch ere 12847 Reg is tryAp r. 14 – Dec.

18255,665.40 20,054.10 950 0 0 0 0 0 276,669.50 42,883.77 - 319,553.27 Cen tral Ad m in

7J erom e D. A.

Kp an10409 Reg is try

J an . 14 – Dec.

18104,133.60 0 0 12,460 0 0 0 0 116,593.60 18,072.01 0 134,665.61 Cen tral Ad m in

8Ch arles An twi

Owu s u 11563 Dep 't Of Mg t.

Oct. 2012 –

Dec. 2016234,526.47 19,639.40 - - - 0 0 0 254,165.87 39,395.71 - 293,561.58 Ch &Ls

1,8 6 8 ,6 3 8 .7 2

Table 141: Failure to Serve the University after Study Leave with Pay

T o ta l



1304. We blamed the anomaly on the Vice-Chancellor and the

Training and Development Committee’s indifferent posture towards

the implementation of the tenets of the above-mentioned policy

document.

1305. The lapse made the government to spend funds on training of

officers without benefiting from same.

1306. We recommended that Management should pursue the

affected officers and their guarantors to refund the total amount of

GH¢1,868,638.72 to the University failing which the total amount of

GH¢1,868,638.72 should be recovered from the Vice-Chancellor and

the Training and Development Committee members for their failure

to ensure due diligence before granting the study leave.

1307. Management in response indicated that the indebtedness of

the affected officers had been computed and given to the officers and

their guarantors for repayment, but Dr. Simon-Peter Kafui Aheto

through his lawyers has challenged the decision by indicating that

the expenditure incurred on him were government funds and that

he has moved to serve another government institution a claim which

Management rejected. Management further indicated that the delay

in recovering the amount from the affected officers was not

deliberate but to follow due process to avoid legal issues and

judgement debt.

Officers on Sabbatical Leave taking Double Salary from Central

Government - GH¢128,826.29

1308. Section 16.4 (a) of the Conditions of Service for Senior

Members of Public Universities of Ghana, 2011 provides that a one-

year sabbatical leave with pay may be granted after six (6) years of

continuous service without study leave; grantees are required to



return to the service of the University for at least two (2) academic

years immediately after such leave.

1309. On the contrary our audit disclosed that the University

granted sabbatical leave to Three (3) officers to undertake their leave

at various sister Universities and other government

department/units of which the officers within the leave period drew

salary of GH¢128,826.29 from the University of Cape Coast and took

same from the sister Universities and Government departments.


Table 142: Officers on Sabbatical Leave taking Double Salary from Central

Government

Name

Of Staff

Staff

Id

Job

Tittle

Depart-

ment Grade

Loca-

tion

Effec

tive

Date

Month

Paid

Gross

Salary Remarks College

Dr.

Sulemana

Seidu

Abukari

11627 Snr.

Lecturer

Depart-

ment Of

Physics

23h Uds 11/01/

2018

Nov'18

7,054.46 Double

Salary Cans

Dec'18

7,054.46

Total

14,108.92

Prof.

Alexander

Nii Moi

Pappoe

9700 Assoc.

Prof.

Sch. Of

Nursing

And

Midwifery

24h Uew 08/01/

2018

Aug'18

8,636.06

Double

Salary Cohas

Sept'18

8,636.06

Oct'18

8,636.06

Nov'18

8,636.06

Dec'18

8,636.06

Total

43,180.30

Mr.

Edward

Dadzie

12599

Dep.

Dir.

Of

Dev't.

Dpdem 24h

Sol-

Rock,

Accra

05/01/

2018

May'18

10,056.98

Recovery Central

Admin.

June'18

8,782.87

July'18

8,782.87

Aug'18

8,782.87

Sept'18

8,782.87

Oct'18

8,782.87



Nov'18

8,782.87

Dec'18

8,782.87

Total 71,537.07

Grand

Total 128,826.29

1310. We blamed the anomaly on the University’s inability to

communicate with sister Universities and government departments

to ensure that officers were not paid double salaries.

1311. We recommended that the affected officers should refund the

amount of GH¢128,826.29 double paid them. In future, the

University should always communicate with other government

institutions in respect of their officers on sabbatical Leave to prevent

central government from paying double salaries.

Uncompetitive Procurement-GH¢435,796.63 1312. The fifth Schedule of the Public Procurement Amendment

Act, 2016, (Act 914), stipulates that a procurement entity may

engage in single – source procurement and selection with the

approval of Public Procurement Authority.

1313. Our audit disclosed that the University engaged in single

source procurements amounting to GH¢435,796.63 without

approval from Public Procurement Authority. Details as per table

143.



Table 143: Uncompetitive Procurement

NO

Payment Voucher

Date

Payment Voucher

Number

Chq. Item Payee

Total Amount

paid GH¢

Unit/

Department

1

2

6-Nov-18 02666160 172965 Ziongate Geospatial &

Research Services Ltd

Special Advance For Global

Mapper Advanced Gis Software

Package-Ing. Survey Yaw Effah

Amoh-Barimah.

45,091.80

Central Admin.

3 29/1/18 ,027

Aqua Olast Co. Ltd

Purchase of production

materials 47,748.93

Ucc Enterprises

4 06/07/18 121

Aquaplast Co. Ltd

Purchase of

production materials 18,197.20

Ucc Enterprises

5

13/02/18 01754070 804879 Samaska Special Advance granted Mr.

Sitsofe Tettey for the Purchase of

Production Materials for the

smooth running of the Press

24,390.40 Ucc Press

6 21/11/18 4562 173444

Final vision technology ghana

Ltd

Payment for UCC 5000 student

user fees for AIDDE platform

Academic EBOOKS Usage

fees

47,876.00 Central Admin.

7 14/11/18 38 0 Kingsdeco LTD

payment for the

supply of furniture to the

school of economics 9,519.42

Faculty Of Social Science

8 14/3/18 92 0 Alban Logistics

Funds for 2.5 HP Galanz air

conditioners 6,413.60

Faculty Of

Social Science


payment for 2

unit Samsung 2.0 HP Air

conditioners 7,917.59

Faculty Of

Social Science


payment for 2

Galanz air conditioner 5,994.60


11 13/9/18 388 0 SKYNOLIM LTD Payment for Epson Projector 5,994.00


12 13/9/18 388 0 SKYNOLIM LTD Payment for Epson Projector 5,994.00


13 20/12/18 504 0 Techniks ware services

payment for supply of Desktop

computer and accessories 8,170.00


14 09/10/18 263A 805425 Kofi Essuman Ent

Payment for the

supply of four 10,097.08

School Of

Business



Tyres for coster

bus

15 23/7/18 224 805377 Techniks ware service

payment for desktop

computers and laptops 14,077.67

School Of Business

16 12/03/18 339 769079

Cytrust Enginering

Services

payment for 2 air

conditioners 13,450.00 Faculty Of Law

17 15/11/18 321 769008 Electrofix Computers

payment for 5

Desk Top computers 13,000.00 Faculty Of Law

18 11/05/18 312 768999 Mcdave Kujoe

payment of supporting staff

during roll call ceremoney 6,000.00 Faculty Of Law

19 19/4/18 130 806598 the dimension outlet

payment for two aircoditions 13,240.00 Faculty Of Arts

20 03/07/18 85 806776

Techniks Ware

Service

Purchase of Desktop

computers 13,000.00 Faculty Of Arts

21 2/12/18 58 1597 Alban Logistics supply funiture 11,069.00

School Of Allied

Health Deans Office

22 07/10/18 179 805039 Serdann In co. Ltd paymengt for machine parts

11,545.00

Ucc Printing Press

23 07/09/18 178B 805038 Monia Ghana Ltd

payment for production

materials supplied

28,116.50

Ucc Printing Press

24 07/09/18 176 805036 Linkworld solutions Ltd

payment for production

materials supplied

18,437.00

Ucc Printing Press

25 07/09/18 172 805031 Dan Grapher Prints

Payment for Black Ink

9,671.84

Ucc Printing Press

26 04/04/18 86 804942

Dan Grapher

Prints

payment for Production

materials

6,695.00

Ucc Printing

Press

27 04/06/18 69 804824

Dan Grapher

Prints

Production

materials

6,952.50

Ucc Printing

Press

28 09/06/18 179 739854

Emmananbs Ent.

Ltd

Payment for tail

walls

11,100.00 Valco Hall

29

10/12/18 216 Bright A Adjetey Purchase of fabrics, lining

Voile, Rods Tape &Hooks

8,520.00 School Of Business

30

10/12/18 214 Bright A Adjetey Purchase of Bathroom

Mat,Bedside Drugs & Pillows

7,517.50 School Of Business

Total 435,796.63

1314. We blamed the anomaly on Management’s disregard for the

prescriptions of Act.



1315. The irregularity has the tendency of compromising value for

the tax payers’ money.

1316. We urged Management to ensure compliance with

prescriptions of Act 914 in all procurements using public funds.

1317. Management accepted our recommendation for compliance

but noted that the transactions resulted from special advance

granted officers to undertake varied assignments for the University.

Payment for KLEOS Technology Services without procurement

procedures GH¢451,530.00 1318. Section 35 (1), 40(1) (a-c) of the Public Procurement Act, 2003

(Act 663) stipulates that a procurement entity shall procure goods,

services or works by competitive tendering except as provided in the

Act and a procurement entity may engage in single-source

procurement with the approval of Public Procurement Authority.

1319. We noted that the University paid KLEOS Technology Service

an amount of GH¢451,530.00 for the provision of ICT services

without recourse to Public Procurement Authority Act. The Vice

Chancellor Professor Ghartey Ampiah entered into an international

contract on behalf of the University with KLEOS UK Ltd a company

incorporated in United Kingdom for the provision of information and

communication Technology (ICT) services to the University without

reference to the Entity Tender Committee or use of any procurement

methods such as tendering, request for price quotation, approval for

single source or restrictive tendering from Public Procurement

Authority. Details are shown in table 144.



Table 144: KLEOS Technology Services without procurement procedures

Date Cheque

No

PV

No

Payee Description Amount

(GH¢)

29/06/2018 385813 57 KLEOS

Technology

Payment for

Service Charges in

respect of usage of KLEOS Technology-

2017/2018

451,530.00

Total 451,530.00

1320. Our further scrutiny disclosed that the Vice Chancellor,

Professor Ghartey Ampiah entered into a 10-year Build, Own,

Operate and Transfer Agreement (BOOT) with KLEOS UK Ltd at a

cost of $300,000.00 per year without giving opportunity to other

companies or seek approval from the University Council, the

Minister of Education and the Minister of Finance before committing

the University to such financial obligation.

1321. We blamed the anomaly on the Vice Chancellor’s decision to

disregard the tenets of the Public Procurement Law in entering into

such International Contract.

1322. The situation has the tendency to expose the University to the

risk of liquidity challenges.

1323. We recommended that the Vice Chancellor should submit the

Build, Own, Operate and Transfer Agreement (BOOT) with KLEOS

UK Ltd to the University Council, Minister of Education and Minster

of Finance for ratification.

1324. Management in response indicated that they were of the view

that Build, Own, Operate and Transfer Agreements (BOOT) do not

need to be subjected through procurement procedure hence the

anomaly and since their attention had been drawn, they will take

steps to correct same.



Entering into $3,000,000.00 International Contract above

head of entity’s threshold without authority

1325. The second schedule of the Public Procurement (Amendment)

Act, 2016, (Act 914) set the threshold for the head of a procurement

entity under Category ‘C’ in approving procurement for goods and

services up to GH¢100,000.00.

1326. Contrarily, our audit disclosed that the Vice Chancellor,

Professor Ghartey Ampiah entered into a 10 year Build, Own,

Operate and Transfer Agreement with KLEOS UK Ltd for the

provision of information and communication technology (ICT)

services at a cost of $ 300,000.00 per year totalling $3,000,000.00

for the contract period without seeking approval from the University

Council, the Minister of Education and Public Procurement

Authority before committing the University to such a financial

obligation. The contract signed by the Vice Chancellor was only

witnessed by the Director of ICT services Dr. Regina Gyampoh-

Vidogah.

1327. We blamed the anomaly on the Vice Chancellor’s inability to

seek the due approval before committing the University to such a

financial obligation thus exposing the University to liquidity

challenges.

1328. We recommended that the Vice Chancellor should submit the

Build, Own, Operate and Transfer Agreement (BOOT) with KLEOS

UK Ltd to the University Council, Minister of Education and Public

Procurement Authority for approval, failing which the sanctions in

section 92 (1) of the Public Procurement Act shall be applied.

1329. Management indicated that they did not initially subject the

agreement to the Council for approval because at that time Council

had been dissolved in line with the Transition Act 2012 (ACT 854).

According to Management, when the Council was reconstituted



Management referred the contract to the Council for approval which

was ratified by Council at its 94th meeting held on 25 August 2017.

Procurement of Information Technology Services from Vertebra

Limited without procurement procedures-GH¢397,602.00 1330. Section 35 (1) of the Public Procurement Act, 2003 (Act 663)

stipulates that a procurement entity shall procure goods, services or

works by competitive tendering except as provided in the act. Section

40(1) (a-c) of the Public Procurement Act, 2003 (Act 663) as amended

further provides that a procurement entity may engage in single-

source procurement with the approval of Public Procurement

Authority.

1331. Contrary to this provision, we noted that the College of

Distance Education and Central Administration procured

Information Technology Service from Vertebra Limited amounting to

GH¢397,602.00 without recourse to the procurement procedures.

There were no requests for price quotation, or reference to the Entity

Tender Committee. Details are shown in table 145.

Table 145: Procurement without procurement procedures

Date Cheque

No

PV No Payee Description Amount

(GH¢)

10-Oct-18 614372 1379 Vertebra

Limited

Payment for

16,461 admission

manager

application

cards used for

the 2018/2019 academic year.

148,149.00

28/8/2018 727849 116 Vertebra

Limited

Admission

manager

application

cards used

249,453.00

Total 397,602.00



1332. We blamed the anomaly on Management’s disregard for the

provisions of the Public Procurement Law as this could lead the

University and Colleges of Distance Education being sanctioned for

breach of the Public Procurement Act.

1333. We recommended that the Vice Chancellor and the Provost of

College of Distance Education should be sanctioned per section 92

(1) of the Public Procurement Act, 2003 (Act 663) as amended.

1334. Management in response indicated that it settled on Vertebra

Limited due to its track record and the confidentiality of the

information handled by company. Management however, noted the

observation for compliance.

Contract Management

Unrecovered Advances to Works Contractors -GH¢14,953,274.74 1335. Regulation 110 of the Financial Administration Regulations,





1336. Contrary to this Regulation we noted during our audit that,

the College of Distance Education granted advances amounting to

GH¢21,298,853.44 without agreement to four (4) contractors for the

execution of various projects but recovered only GH¢6,345,578.70

with a difference of GH¢14,953,274.74 not recovered as at

31/12/18. The advances were granted between 2013 and 2016

financial year from Internally Generated Fund. Details are shown in

table 146.



Table 146: Unrecovered Advances to Works Contractors

Date P.V No Project

Name

IPC Name of

Contractor

Total Advance

Granted (GH¢)

Amount

Recovered

Outstanding

balance as at 31/12/18

2/Jul/13 131 - 591 Construction

of Executive Guest –

Accra

1-15 China Phantom

Construction Limited

5,352,327.54 599,849.13 4,752,478.41

13/3/13 21-592 Construction of 3 story regional

satellite

campus -

Dominase – Ashanti

5-17 Wakado Construction works

3,841,747.30 2,841,747.30 1,000,000

11/6/14 574-983 Construction of Regional

Study Center- WA

1-9 Wakado Construction

works

6,024,081.38 1,450,000.00 4,574,081.38

08/08/14 776-1022 Construction

of Regional Study Center-

Zuarungu

1 -12 Messrs

TACOA Construction Ltd

3,169,331.36 1,000,000.00 2,169,331.36

15/9/16 1022 construction of 3 story

Regional Study Center-

Jumapo

1 Barony Construction

Ltd

2,911,365.86 453,982.27 2,457,383.59

Total 21,298,853.44 6,345,578.70 14,953,274.74

1337. Further review disclosed that the affected contractors have

abandoned the projects after receiving the advances.

1338. We blamed the anomaly on the University Management’s

indifferent attitude towards ensuring full implementation of contract

agreement as well as Management’s unwillingness to pursue

recovery of the outstanding advances.

1339. The lapse amounts to the University’s Internally Generated

resources being locked up in unproductive ventures.

1340. We recommended that Management should recover the total

outstanding advance of GH¢14,953,274.74 from the affected

contractors with interest using Bank of Ghana interest rate, failing

which the total amount of GH¢14,953,274.74 should be recovered

from the officers who authorised the payment.



1341. Management in response agreed with the observation and

indicated that the University would recover the outstanding advance

Payment for Nissan Patrol Vehicle not supplied-GH¢394,500.00

1342. Regulation 16(1)(a) of the Financial Administration

Regulations, 2004, states “ Payment shall not be made for work

done, goods supplied or service 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 that the work has been performed, the

goods supplied or the service rendered, and that the price charged

is according to the contract or if not specified by the contract, is

reasonable”.

1343. On the contrary our contract review disclosed that the College

of Distance Education paid a total amount of GH¢394,500.00 to

Wilkado Construction Works Ltd for supply of Nissan Patrol Vehicle

for the Construction of a Regional Study Center- WA project on

15/01/2014 but the vehicle had not been supplied as at 31/12/18.

A visit to the project site indicated that the contractor had

abandoned the project five (5) years after taking the money and also

turned down the University Council’s invitation on 22/6/18 to

discuss the progress of work on the project. Details are shown in

table 147.

Table 147: Payment for Nissan Patrol vehicle not supplied PV NO. Cheque

No. PV NO. IPC

NO. Payee Project Item

not supplied

Amount Paid

15/09/2014 89 000242 IPC #3 Wilkado Construction Works Ltd

Construction of Regional Study Center- WA

Nissan Patrol

225,500.00

15/01/2014 5 024284 IPC # 5 Wilkado Construction Works Ltd

Construction of Regional Study Center- WA

Nissan Patrol

169,000.00

Total 394,500.00



1344. We blamed the anomaly on the Director of Development’s

professional negligence to ensure that the vehicle was supplied

before certifying interim certificates for payment.

1345. The above condition led to loss of funds to the University and

an increase in the project cost.

1346. We recommended that the contractor should supply the

vehicle to the University, failing which the total amount of

GH¢394,500.00 should be recovered from the contractor with

interest using Bank of Ghana prevailing interest rate.

1347. The Director of Development in response indicated that he had

been informed that the amount was used to purchase vehicle

number GN 8482-14 which was in possession of the Directorate of

Physical Development and Estate Management but this assertion

was not supported by any documentary evidence. Again, the Director

of Development did not produce the said vehicle during physical

inspection.

Award of Works Contract without recourse to the Public Procurement Law- GH¢18,225,418.54 1348. Section 35 (1) of the Public Procurement Act, 2003 (Act 663)

stipulates that a procurement entity shall procure goods, services or

works by competitive tendering except as provided in the Act.

Section 40(1) (a-c) of the Public Procurement Act, 2003 (Act 663) as

amended further provides that a procurement entity may engage in

single – source procurement with the approval of Public

Procurement Authority.

1349. Contrary to the above provision, we noted that the College of


two (2) contractors for construction works without recourse to the

procurement procedures such as tendering, request for quotations,



agreement or reference to the Entity Tender Committee. The audit

team was given only copies of the contract agreement between the

University and the contractors without other procurement

documents such as tender evaluation report, advertisement or

request for price quotations, and quotations from other competitors.


Table 148: Works Contract without recourse to the Public

Procurement Law

Contract award Date

Contractor Name

Name of Contract

Contract Value

Total Payment made on the Contract

Remarks

15/Sep/10

Messrs China Phantom Construction

Limited,

Construction of Executive Guest House

- ACCRA 11,761,637.71 8,694,660.21

only contract agreement presented for audit without procurement documents such as tender evaluation report, advertisement or request for

price quotations, the quotations from other competitors and other tender

documents

01/01/2011

Wilkado

Construction Works

Construction of Satellite

Centre in DOMINASE 3,708,736.52 9,530,758.33

only contract agreement presented for audit without procurement documents such as tender evaluation report, advertisement or request for price quotations, the quotations

from other competitors



and other tender documents

Total 18,225,418.54

1350. We blamed the anomaly on the Vice Chancellor, Director of

Development and the Head of Procurement for circumventing the

public procument process.

1351. This could lead to award of contracts to unqualified

contractors.

1352. We recommended that the Vice Chancellor, Director of

Development and the Head of Procurement should produce the

procurement documents if any to the audit team for audit, failing

which the Vice Chancellor, Director of Development and the Head of

Procurement should be sanctioned per section 92 (1) of the Public

Procurement Act, 2003 (Act 663) as amended.

1353. Management responded that the external consultants to the

project had been contacted to make available copies of the

procurement documents available for audit review.

Contract Works not executed but paid for-GH¢8,187,762.77 1354. Regulation 16(1)(a) of the Financial Administration

Regulations, 2004, states “payment shall not be made for work done,

goods supplied or service 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 that the work has been performed, the goods

supplied or the service rendered, and that the price charged is



according to the contract or if not specified by the contract, is

reasonable”.

1355. Our review of contract records disclosed that the College of


three (3) contractors as additional works to be carried out on projects

they were already working on. We however noted during our field

inspection of the said projects that no additional works were carried

out on them. Thereby causing the University to expend an amount

of GH¢8,187,762.77 from its scarce resources on an activity that did

not take place. Details are shown in table 149.



Table 149: Contract Works not executed but paid for

PV

NO.

Chq

No.

PV

NO.

IPC

NO.

Payee Project Item not

supplied Unit Price

Total

Amount of

item not

supplied

/executed

GH¢

Remarks

Unit /

Depart

ment

25/Jul/

12

GCB

603

150 487

IPC NO.

6

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

supply and

installation

of steel roof

work

No unit

price

indicated 23,326.00

no steel roof

work done

during

verification CoDE

25/Jul/

12

GCB

603

150 487

IPC NO.

6

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

additional

bill

No unit

price

indicated 226,917.25

produce

details of

additional

works to

substantiate

work done CoDE

25/Jul/

12

GCB

603

150 487

IPC NO.

6

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

additional

works

No unit

price

indicated 13,590.92

produce

details of

additional

works to

substantiate

work done CoDE

12/Feb/

13 PBL 2

IPC NO.

11

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

additional

bill

No unit

price


produce

details of

additional

works to

substantiate

work done CoDE

12/Feb/

13 PBL 2

IPC NO.

11

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

supply and

intallation of

steel roof

work

No unit

price

indicated 23,326.00

produce

details of

additional

works to

substantiate

work done CoDE

2/Jul/1

3

GCB

605

594 591

IPC NO.

14

Messrs China

Phantom

Construction

Of Executive

Guest House

supply and

intallation of

No unit

price

indicated 23,326.00

produce

details of

additional CoDE



Construction

Limited

In Accra steel roof

work

works to

substantiate

work done

2/Jul/1

3

GCB

605

594 591

IPC NO.

14

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

additional

bill

No unit

price


produce

details of

additional

works to

substantiate

work done CoDE

21/

Mar/

13 BBG

BB

G 7

IPC NO.

12

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

additional

bill

No unit

price


produce

details of

additional

works to

substantiate

work done CoDE

21/

Mar/

13 BBG

BB

G 7

IPC NO.

12

Messrs China

Phantom

Construction

Limited

Construction

Of Executive

Guest House

In Accra

supply and

intallation of

steel roof

work

No unit

price

indicated 23,326.00

no steel roof

work done

during

verification CoDE

21/

Aug/

15

608

092 592

IPC NO.

17

Messrs

Wilkado

Construction

Works Ltd

Construction

Of 3 Story

Regional

Setelitte

Compus In

Dominase -

Ashanti

variations -

additional

works no. 1

No unit

price

indicated

3,946,287.6

5

no variation

order

sighted, no

additional

works

identified

during

physical

inspection,

details of

additional

works not

provided to

the audit

team CoDE

21/

Aug/

15

608

092 592

IPC NO.

17

Messrs

Wilkado

Construction

Works Ltd

Construction

Of 3 Story

Regio

nal Setelitte

Compus In

variations -

additional

works no. 2

No unit

price


no variation

order

sighted, no

additional

works CoDE



Dominase -

Ashanti

identified

during

physical

inspection,

details of

additional

works not

provided to

the audit

team.

15/

09/

14 89

000

242

IPC #3

Paymen

t

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Hoardings,

Fans,

Fencing

No unit

price

indicated

11,500.00

provide

details of

additional

works done

on the

project CoDE

15/

01/

15 5

024

284 IPC# 5

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

prelims for

clerk of

works

No unit

price

indicated

54,950.00

produce

details of

additional

works to

substantiate

work done CoDE

19/

11/

15 117

008

750 IPC# 6

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

construction

of

warehouse

to stock off

shore

materials

No unit

price

indicated 38,317.90

no such

additional

works such

as TV,

FRIDGE,MO

TOR

CYCLE,LAPT

OP,GAS

COOKER

and othres

listed as

additional

works

sighted

during

physical site

inspection CoDE



19/

11/

15 117

008

750 IPC# 6

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

prelims for

clerk of

works

No unit

price

indicated

288,665.00

produce

details of

additional

works to

substantiate

work done CoDE

19/

11/

15 5

875

0 IPC# 6

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

prelims for

clerk of

works

No unit

price

indicated

31,900.00

no such

additional

works such

as TV,

FRIDGE,MO

TOR

CYCLE,LAPT

OP,GAS

COOKER

and othres

listed as

additional

works

sighted

during

physical site

inspection CoDE

15/

04/

15 275

609

653 IPC# 7

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

construction

of

warehouse

to stock off

shore

materials

No unit

price

indicated 38,317.90

no such

additional

works such

as TV,

FRIDGE,MO

TOR

CYCLE,LAPT

OP,GAS

COOKER

and othres

listed as

additional

works

sighted

during CoDE



physical site

inspection

18/

04/

15 275

609

653 IPC# 7

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

works

No unit

price

indicated

288,665.00

produce

details of

additional

works to

substantiate

work done CoDE

28/

09/

16

GC

B

239

4 IPC# 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

works

No unit

price

indicated

288,665.00

no such

additional

works such

as TV,

FRIDGE,MO

TOR

CYCLE,LAPT

OP,GAS

COOKER

and othres

listed as

additional

works

sighted

during

physical site

inspection CoDE

27/

09/

16

GC

B

239

4 IPC# 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

construction

of

warehouse

to stock off

shore

materials

No unit

price

indicated 38,317.90

Off shore

materials

not provised

hence no

wherehouse

constructed CoDE



for the

materials

27/

09/

16

GC

B

239

4 IPC# 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Stcenter

Study For

Code

Additional

prelims for

clerk of

works

No unit

price

indicated

31,900.00

no

additional

works

carried as

the items

listed as

additional

had been

paid for

under veious

IPCs CoDE

15/

09/

14

Bar-

clays

8652 23

IPC NO.

4

Messrs Tacoa

Construction

Ltd

Construction

Story

Regional

Study

Center -

Zuarungu -

Upper Wast

Region

Additional

works

No unit

price


No

windows,

doors and

others had

been

constructed

during

physical

inspection CoDE

15/

09/

14

Barc-

lays

8652

23 IPC

NO.

4

Messrs Tacoa

Construction

Ltd

Construction

Story

Regional

Study Center

- Zuarungu -

Upper Wast

Region

Additional

works

No unit

price

indicated

232,640.00 No

additional

works such

as

panasonic

vira Tx-50

Smart TV ,

Under

counter

133litres

capacity

with 4 star

energy

rating

FRIDGE, C5 CoDE



EFI Royal

Enfield

Mottrocycle

model 454i

,LAPTOP

and othres

listed as

additional

works

sighted

during

physical site

inspection

09/

04/

18

613

467

485 IPC

NO.

12

Messrs Tacoa

Construction

Ltd

Construction

Story

Regional

Study Center

- Zuarungu -

Upper Wast

Region

Additional

Expenses

No unit

price

indicated

47,500.00

produce

details of

additional

works to

substantiate

work done CoDE

01/

01/

16

1486 100

870

IPC

NO. 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Study Center

For Code –

Wa

Payment for

works done

on windows,

doors, Stairs

No unit

price

indicated

51,525.00 Off shore

materials

not provised

hence no

wherehouse

constructed

for the

materials CoDE

01/

01/

16

1486 100

870

IPC

NO. 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Study Center

For Code –

Wa

Additional

works

No unit

price

indicated

288,665.00 No

additional

works such

as

panasonic

vira Tx-50

Smart TV ,

Under

counter

133litres

capacity CoDE



with 4 star

energy

rating

FRIDGE, C5

EFI Royal

Enfield

Mottrocycle

model 454i

,LAPTOP

and othres

listed as

additional

works

sighted

during

physical site

inspection

15/

04/

16

275 609

653

IPC

NO. 7

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Study

Center For

Code – Wa

construction

of

warehouse

to stock off

shore

materials

No unit

price

indicated

38,317.90 Off shore

materials

not provided

hence no

wherehouse

constructed

for the

materials CoDE

01/

01/

16

1486 100

870

IPC

NO. 9

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Study

Center For

Code - Wa

Additional

works on

preliminarie

s carried out

as claimed

No unit

price

indicated

31,900.00 No

additional

works such

as TV,

FRIDGE,MO

TOR

CYCLE,LAPT

OP,GAS

COOKER,etc

as discribed

in the IPC

sighted on

during CoDE



physical

inspecteion

15/

09/

14

89 000

242

IPC

NO. 3

Messrs

Wilkado

Construction

Works Ltd

Construction

Of Regional

Study

Center For

Code - Wa

Payment for

Hoardings,

Fans and

Fencing

No unit

price

indicated

11,500.00 No fencing,

fans and

others sited

during

project

Inspection CoDE

15/

01/

15

5 024

284

IPC# 5 Messrs

Wilkado

Const. Wks

Ltd

Construction

Of Regional

Study

Center For

Code - Wa

Additional

prelims for

clerk of

works

No unit

price

indicated

54,950.00 produce

details of

additional

works to

substantiate

work done CoDE

01/

01/

16

1486 100

870

IPC

NO. 9

Messrs

Wilkado

Const. Wks.

Ltd

Construction

Of Regional

Study

Center For

Code - Wa

Hoardings,

Fans,

Fencing

No unit

price

indicated

38,317.90 No fencing,

fans and

others sited

during

project

Inspection CoDE

03/

11/

17

231 656

826

IPC#9 Messrs

Barony

Const. Ltd

Construction

Of Office

Block For

School Of

Business

Additional

works

No unit

price

indicated

310,122.75 provide

details of

additional

works done

on the

project CoDE

Total 8,187,762.77



1356. We blamed the anomaly on Director of Development’s

professional negligence thereby misleading the University to commit

resources to an area that did not need it.

1357. This led the University to pay for no work done.

1358. We recommended that the contractors and Director of

Development should produce documentary and physical evidence of

additional works done on the affected projects to justify the payment

of GH¢8,187,762.77, failing which the total amount of

GH¢8,187,762.77 should be recovered from the affected

contractors., Again the Director of Development should be

sanctioned for certifying interim payment certificates and aiding the

contractors to claim such amount from the University for no work

done.

1359. Management responded that the project’s final accounts

preparations are underway to claim any payment for no work done.

Engagement of Project Consultants without recourse to the Public Procurement Law - GH¢1,587,369.10 1360. Section 66 of the Public Procurement Act, 2003 (Act 663) as

amended demands that a procurement entity shall invite consulting

services by causing a notice seeking expression of interest in

submitting a proposal to be published in the Public Procurement

Bulletin for consultancy contracts above the threshold in the fifth

Schedule and be published in English and in a newspaper of wide

circulation or in a relevant trade or professional publication of wide

circulation except where participation is limited solely to national

consultants under or where the procurement entity decides that only

national consultants may submit proposals.

1361. On the contrary our audit disclosed that the college of




Phase 2-Consultancy for consultancy services on various

construction works without recourse to the procurement law such

as invitation for tender, request for price quotations, expression of

interest and selection procedures. Details are shown in table 150.

Table 150: Engagement of Project Consultants without Procurement

procedures

Date

PV

No. Cheque No.

Consultant

Name

Project

Consulting For

Amount

Paid

GH¢

28/May/13 466 GCB 605461

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 10,768.72

5/Dec/13 1052 GCB 606195

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 64,151.42

9/May/14 455 GCB 606773

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 57,131.49

19/Sep/14 962 GCB 607248

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 33,243.63

22/Jan/18 109 GCB 613089

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 23,146.41

22/Jan/18 108 GCB 613088

Messrs

Phase 2

Consult

Construction of

Training Resort

and Conference 134,890.00



Center - Agona

Nyakrom

20/Feb/19 87 ZBL 002163

Messrs Arg1

Africa Ltd

Construction of

Training Resort

and Conference

Center - Agona

Nyakrom 95,329.00

28/Sep/11 1

Messrs

Phase 2-

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 29,151.01

22/Dec/11 2

Messrs

Phase 2-

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 16,189.45

22/Nov/13 3

Messrs

Phase 2-Post

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 73,999.15

27/Mar/14 4

Messrs

Phase 2-Pre

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 64,307.77

14/Oct/15 5 111

Messrs

Phase 2-Post

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 200,047.49

10/Sep/15 6 227

Messrs

Phase 2-Post

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 26,152.34

13/Nov/13 12 39

Messrs

Phase 2-Post

Consultancy

Construction of 3 -

storey Setellite

Center- Dominase

Ashanti 600,000.00

10/Jun/11 1

Messrs

Phase 2-Post

Consultancy

construction of

Executive Guest

House - Accra 28,298.00



22/Dec/11 2

Messrs

Phase 2-Post

Consultancy

construction of

Executive Guest


18/Dec/12 3

Messrs

Phase 2-Post

Consultancy

construction of

Executive Guest


22/Nov/13 4

Messrs

Phase 2-Post

Consultancy

construction of

Executive Guest


Total

1,587,369.10

1362. Disregard for the Public Procurement law by Management of

the University occasioned the irregularity.

1363. This could lead to award of other consultancy services to

unqualified persons and companies.

1364. We recommended that the Director of Development and Head

of Procurement should explain the basis for contracting the

consultancy services without recourse to provisions of the Public

Procurement Law, failing which the Director of Development, Head

of Procurement should be sanctioned per Section 96(1) (a) of Public

Financial Management Act, 2016 (Act 921).

1365. The Director of Development in response indicated he had no

documentary evidence that procurement processes were followed

and that the former Deputy Director of Development would be

contacted to provide information on the matter.

Payment for Materials in Transit for Contract Works not supplied - GH¢1,370,000.00 1366. Regulation 16(1)(a) of the Financial Administration

Regulations, 2004, states “ Payment shall not be made for work




or not in connection with any part of the public service , unless in






reasonable”.

1367. Our contract review disclosed that the College of Distance

Education paid a total amount of GH¢1,370,000.00 to two (2)

contractors for supply of materials in transit but the items were not

supplied. The items were paid for through various certificates issued

without indications to the items, quantity, unit cost and others. The

audit team did not see any documentary or physical evidence that

such materials had been supplied. Details are shown in table 151.



Table 151: Payment for Materials in Transit for Contract Works not supplied

PV

NO.

Chq.

No.

PV

NO.

IPC

NO.

Payee Project Item not

supplied

Quantity

not

supplied

unit

price

Total

Amount of

item not

supplied

/executed

Remarks

23/

May/

12

GCB

602

943

353 IPC

NO.

5

Messrs

China

Phantom

Constr-

uction

Limited

Constr-

uction

Of Exec-

utive

Guest

House

In Accra

Materials

in transit

No

quantity

indicated

no unit

price

indicated

on IPC

370,000.00 Details of items in

transit not

provided for audit,

no evidence of

supply of such

items availeble to

the audit team,

Interiem Payment

Certificate are

issued for work

done so explian

why certificte

should be issued

for work not yet

executed and if is

advance indicate

or make it clear



16/

Sep/

14

GCB

607

602

IPC

No.

3

1215 Messrs

Tacoa

Constr-

uction

Ltd

Constr-

uction

Story

Regional

Study

Center

- Zuar-

ungu -

Upper

West

Region

Payment

for

Materials

in transit

No

quantity

indicated

no unit

price

indicated

on IPC

1,000,000.00 Details of items in

transit not

provided for audit,

no evidence of

supply of such

items availeble to

the audit team,

Interiem Payment

Certificate are

issued for work

done so explian

why certificte

should be issued

for work not yet

executed and if is

advance indicate

or make it clear

Total 1,370,000.00



1368. We blamed the anomaly on the Director of Development’s

failure to ensure that the contractors justify the need for such

payments before certifying interim certificates for payment.

1369. This led to increase in the project cost.

1370. We recommended that Management should provide list of

items, quantity, unit cost and evidence of supply to the projects to

justify the payments, failing which the contractors and the officers

who authorised the payments should refund the total amount of

GH¢1,370,000.00 at the prevailing Bank of Ghana interest rate to

the University.

1371. Management in response indicated that out of total amount of

GH¢4,224,649.98 paid as materials in transit to three contracts an

amount of GH¢2,854,649.98 had been recovered through other

certificates with the difference of GH¢1,370,000.00 not yet

recovered. Management further disclosed that the former deputy

director for works Mr. Edward Dadzie and Phase Consultants and

Contractors Limited who were in-charge of the project have been

contacted to provide justifications for the payments.

1372. Our verification on the above assertion by Management

confirmed it.

Supply and Installation of Lift and Other Items paid for but not executed-GH¢1,453,763.72 1373. Regulation 16(1)(a) of the Financial Administration

Regulations, 2004, states “ payment shall not be made for work


or not in connection with any part of the public service, unless in








reasonable”.

1374. Physical inspection of the University’s projects disclosed that

the College of Distance Education paid a total amount of

GH¢1,453,763.72 to three (3) contractors for the supply and

installation of lifts, skylight lean roof trusses and other items but

the items were not supplied.

1375. Even though payments for the items were made between 2013

and 2015 financial years only Messrs Tacoa Construction Ltd

supplied some lift equipment for the Construction of Regional Study

Center - Zuarungu - Upper East Region. The lift though was

supplied, same had not been installed by the end of the audit period

as at 31 December 2018. The other two contractors namely Messrs

China Phantom Construction Limited and Wilkado Construction

Works however did not supply and install the lifts for the assigned

projects, six (6) years after being paid the money. Details are shown

in table 152.



Table 152: Supply and Installation of lift and other items paid for but not executed

Chequ

e No.

PV

NO. IPC NO. Payee Project

Item not

supplied

Qunatity

not

supplied

unit

price

Total

Amount of

item not

supplied

/executed

Remarks

12/

Feb/

13 PBL 2

IPC NO.

11

Messrs

China

Phantom

Construc-

tion

Limited

Construc-

tion Of

Executive

Guest

House In

Accra

proft and

attandace

for nomina-

ted

contractor

for the

supply

and

installa-

tion of lift

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

payment

certificate

322,011.5

8

no lift

installed

during

physical

inspection

2/

Jul/

13

GCB

605594 591

IPC NO.

14

Messrs

China

Phantom

Construc-

tion

Limited

Construc-

tion Of

Executive

Guest -

House In

Accra

supply

and install-

ation of

lift

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

certificate

270,180.0

0

no lift

installed

during

physical

inspection

2/

Jul/

13

GCB

605594 591

IPC NO.

14

Messrs

China

Phantom

Construc-

tion

Limited

Construc-

tion Of

Executive

Guest

House In

Accra

profit and

attend-

ance on

nomina-

ted sub-

contractor

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

certificate 8,260.86

no lift

installed

during

physical

inspection

21/

Mar/

13 BBG

BBG

7

IPC NO.

12

Messrs

China

Phantom

Construc-

tion

Limited

Construc-

tion Of

Executive

Guest

House In

Accra

profit and

attend

ance on

nomina-

ted sub-

contractor

No quantity

indicated on

payment

certificate

No unit

price

indicated

on


no lift

installed

during

physical

inspection

PV NO.



21/

Aug/

15

GCB

608092 592

IPC NO.

17

Wilkado

Construc-

tion

Works

Construc-

tion Of 3

Story

Regional

Setelitte

Compus

In

Dominase

- Ashanti

lift

installa-

tions

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

certificate

162,108.0

0

no lift

installed

during

physical

inspection

21/

Aug/

15

GCB

608092 592

IPC NO.

17

Wilkado

Constru-

ction

Works

Construc-

tion Of 3

Story

Regional

Setelitte

Compus

In

Dominase

- Ashanti

supply

and

installa-

tion of lift

by

MELGREP

CO. LTD

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

certificate

267,945.6

5

no lift

installed

during

physical

inspection

21/

Aug/

15

GCB

608092 592

IPC NO.

17

Wilkado

Construc-

tion

Works

Construc-

tion Of 3

Story

Regional

Setelitte

Compus

In

Dominase

- Ashanti

Profit and

Attend-

ance for

supply

and

installa-

tion of lift

by

MELGREP

CO. LTD

No quantity

indicated on

payment

certificate

No unit

price

indicated

on


no lift

installed

during

physical

inspection

30/

07/

2015

529&

569 211 IPC NO. 5

Messrs

Tacoa

Construc-

tion Ltd

Construc-

tion

Story

Regional

Study

Center -

Lift Intalla-

tions

No quantity

indicated on

payment

certificate

No unit

price

indicated

on

certificate

382,800.0

0

no lift

installed

during

physical

inspection



Zuarungu

- Upper

West

Region

05/

11/

2015 114191 246 IPC NO. 6

Messrs

Tacoa

Construc-

tion Ltd

Construc-

tion

Story

Regional

Study

Center -

Zuarungu

- Upper

Wast

Region

Lift supply

& Intalla-

tions and

profit

No quantity

indicated on

payment

certificate

No unit

price

indicated

on


no lift

installed

during

physical

inspection

Total 1,453,763.72



1376. The indifferent posture of the Director of Development

contributed to the non-supply and installation of the lift.

1377. This led to payment for items without the University

benefiting.

1378. We recommended that the affected contractors should supply

the items to the assigned projects for our inspection, failing which

the total amount of GH¢1,453,763.72 should be recovered from

them using the prevailing Bank of Ghana interest rate.

1379. Management responded that the University will pursue the

contractors to recover any payments made for no work done.

Unjustified fluctuation payments-GH¢4,439,064.48


Regulations 2004 (L.I. 1802) stipulates that the head of accounts





1381. We noted that the University paid a total sum of

GH¢4,439,064.48 to two (2) contractors namely Wilkado

Construction Works and Tacoa Construction Ltd as fluctuations for

construction works without justifications though the terms of the

contract specifically stated that the contract was a fixed one. The

payments were made through various payment certificates. These

however were not supported by any explanation like price changes

and others to justify the fluctuations. Details are shown in table 153.



Table 153: Unjustified Fluctuation Payments

Date

PV No.

Chq No.

Purpose Payee IPC Amount Paid

Amount of fluctuations and interest

included in IPC GH¢

Unit/ Department

Remarks

9/ Jun/

16

GCB 1473

3 IPC NO. 8

Wilkado Construction

works

Construction of regional

setelitte study center compus in

WA

1,072,739.65 CODE Produce entity tender committee meeting

minutes of the emergency meeting held on 18/5/16 to

approve of the fluctuations and why change fixed contract to veriable to approve of the fluctuations, no prove of fluctuations established, as result increase the contract

sum.

9/ Jun/

16

GCB 2394

0 IPC NO. 9


works

Construction of regional

setelitte study center compus in

WA

393,888.61 CODE Produce entity tender committee meeting


approve of the fluctuations and why

change fixed contract to veriable to approve of the fluctuations, no prove of fluctuations established, as result



increase the contract sum.

9/ Jun/

16

GCB 2394

3 IPC NO. 9


works

Cons-truction of regional setelitte

study center compus in

WA



approve of the fluctuations and why change fixed contract to veriable to approve of the fluctuations, no

prove of fluctuations established, as result

increase the contract sum.

9/J un/ 16

GCB 1471

1 IPC NO. 9

Messrs TACOA

Construction Ltd

construction of -Regional

Study Center

for CODE –

ZUAR-UNGU

1,331,982.93 CODE Produce entity tender committee meeting


approve of the fluctuations and why change fixed contract to veriable to approve



of the fluctuations, no prove of fluctuations established, as result increase the contract

sum.

4/ Oct/

17

Zenith 1614

310 IPC NO. 10

Messrs TACOA

Construction Ltd

Const-ruction

of Regio-nal Study Center

for CODE –

ZUAR-UNGU




sum.

4/ Oct/ 17

Prode-ntial 155 112

219 IPC NO. 11

Messrs TACOA

Construction Ltd

Constr-uction

of Regio-nal Study Center

for CODE – ZUAR- UNGU




sum.



9/ Apr/ 18

613 467

485 IPC NO. 11

Messrs TACOA

Construction Ltd

Constr-uction

f Regio-

nal Study Center

for

CODE – ZUAR- UNGU



approve of the fluctuations and why change fixed contract

to veriable to approve of the fluctuations, no prove of fluctuations established, as result increase the contract

sum.

Total

4,439,064.48



1382. We blamed the anomaly on Director of Development’s

inability to ensure that specifications contained in contract

documents are followed to the letter.

1383. The lapse could lead to contract cost overrun.

1384. We recommended that in the absence of reasonable

justification from both the Director of Development and the

contractors the total amount of GH¢4,439,064.48 should be

recovered from the affected contractors and Director of Development

of the University.

1385. The Director of Development in response agreed that the

contracts were fixed price contracts, but the payments were

approved by the Entity Tender Committee with caveat that further

approval should be sought from the Central Review Board. The

Director of Development however could not produce minuets of the

Entity Tender Committee meeting which converted a fixed price

contract to variable one and other approvals to justify the payment.

Payment for Non-Existing Lands-GH¢151,340.00 1386. Regulation 39 (2c) of the Financial Administration

Regulations, 2004 (L.I.1802) states “The head of the accounts

section of a department/entity shall control the disbursement of

funds and ensure that transactions are properly authenticated to


1387. We noted that the University paid a total sum of

GH¢151,340.00 to three landowners as purchase price of lands

acquired but the said lands were not sighted during our physical

verification. There were no documentations such as lease, indenture

or agreement between landowners and the University available for

audit. Details are shown in table 154.



Table 154 Payment for Non-Existing Lands

Date PV

No

Cheque

No

Payee Allocation Narration Amount

GH¢

Remark

15-Dec-

10 055 000073

Ayarns

Ventures, Ho Ho

Being payment in respect

of cost of land and

documentation fee as per

the attached. 27,850.00

An airport has been

constructed on the

supposed location of

the UCC land.

Ayarns

Ventures, Ho Ho


of cost of land and

documentation fee as per

the attached. 9,250.00

An airport has been

constructed on the

supposed location of

the UCC land.

13-Jul-

2011 508 603678

Asangama

Ebusua of

Anyinase-

Agona

Nkwanta

Agona

Nkwanta

Being payment of

compenation to chief and

elders whose efforts

helped UCC to acquire

land as per the attached 5,000.00

Litigation over the

owners of the land.

Currently no land

exists

Asangama

Ebusua of

Anyinase-

Agona

Nkwanta

Agona

Nkwanta

Being payment of

compenation to chief and

elders whose efforts

helped UCC to acquire

land as per the attached 27,825.00

Litigation over the

owners of the land.

Currently no land

exists

21-Feb-

12 12 024113

Geo-Zenith

Limited

Agona

Nkwanta

Being payment of (60% of

(GH¢31,400) plus

outstanding balance in

respect of the Acquistion

of Agona Nkwanta and as

per the attached 21,015.00

Litigation over the

owners of the land.

Currently no land

exists



Barimah

Oppng

Kyeremeh

Sikafour II,

Akwamuhene

of Dormaa Sunyani


of land acquired by the

centre as per the

attached 18,400.00

We could not

physically verify the

existence of the land.

5-Apr-

11 279 602544

Barimah

Oppng

Kyeremeh

Sikafour II,

Akwamuhene

of Dormaa Sunyani


of land acquired by the

centre as per the

attached 37,500.00

We could not



10-May-

11 326 602254

Barimah

Oppng

Kyeremeh

Sikafour II,

Akwamuhene Sunyani


of difference to be paid to

the above-named payee

as per the attached 2,500.00

We could not



5-Dec-

13 1055 606199

Mr George

Asafo Mireku Sunyani


of facilitation fee for the

acquistion process of the

Sunyani land 2,000.00

We could not



Total 151,340.00



1388. We attributed the lapse to the Management’s disregard for the

need to safeguard the assets of the University.

1389. We recommended that management should engage the

competent authorities to make new allocations for the Ho lands

annexed by government for an airport project. We also urged

Management to provide documentary and physical existence of the

Sunyani and Agona Nkwanta lands for verification, failing which the

amount of GH¢114,240 paid for those lands should be recovered

from the Vice Chancellor, Director of Finance and Head of Estate.

1390. The Director of Physical Development and Estate

Management responded that the Directorate had no documents to

authenticate the payments and that further investigations would be

conducted on the issue.

Failure to declare Assets and Liabilities 1391. Article 286 (1) of the 1992 Republican Constitution of Ghana

provides that a person who holds a public office mentioned in clause

(5) of this article shall submit to the Auditor-General a written

declaration of all property or assets owned by, or liabilities owed by,

him whether directly or indirectly, within three months after the

coming into force of this Constitution or before taking office, as the

case may be, at the end of every four years and at the end of his term

of office.

1392. Contrary to the above provision, we observed during our audit

that 437 staff members of the University did not declare their Assets

and Liabilities to the Auditor-General. Details are shown in table

155.



Table 155: Failure to declare Assets and Liabilities

No.

Staff

ID

First

Name

Middle

Name

Last

Name

Job

Title Grade Unit

1 10017 Seth Asare-Danso

Associate

Professor 24H CES

2 10074

Benjamin

Yao Sokpe

Senior

Lecturer 23L CES

3 10080 Eugene Adjei Johnson

Senior

Lecturer 23L CES

4 10081

Christian

Anthony Krueger

Associate

Professor 24H CES

5 10092 Baba Yidana Mumuni

Senior

Lecturer 23L CES

6 10094 Philip Arthur Gborsong

Associate

Professor 24H CHLS

7 10100 Josephine Sam-Tagoe

Associate

Professor 24H CoDE

8 10125 Anthony

Atta-

Bosompem

Senior

Architect 23L Services

9 10126 Aaron Tettey Asare

Associate

Professor 24H CoANS

10 10127 Prosper Deku

Associate

Professor 24H CES

11 10182 Alexander

Asare-

Inkoom

Senior

Lecturer 23L CES

12 10229 Gladys Attah-Gyamfi

Senior

Assistant

Registrar 23L CHLS

13 10287 Frederick Sam

Senior

Lecturer 23L CoANS

14 10298 Augustine Tanle

Associate

Professor 24H CHLS

15 10308 Joseph Arimathea

Kizzie-

Hayford

Deputy

Director Of

Pharmace 24H DUHS

16 10328 Alfredina Zebto Penn Kuupole

Senior

Lecturer 23L CES

17 10329 Mawuyram Quessie Adjahoe

Senior

Lecturer 23L CHLS

18 10332 Kwadwo Adum-Attah

Senior

Lecturer 23L CHLS

19 10333 Paul Dela Ahiatrogah

Associate

Professor 24H CoDE



20 10338 Victor Yao Atsu Barku

Associate

Professor 24H CoANS

21 10339 John

Prosper

Kwaku Adotey

Senior

Lecturer 23L CoANS

22 10343 Felix Kwame Opoku

Senior

Lecturer 23L CHLS

23 10348 Daniel Apaak

Senior

Lecturer 23L CES

24 10354 De-Velera

Nana Yaw

Mpere Botchway

Associate

Professor 24H CHLS

25 10415

Samuel

Kobina Annim

Associate

Professor 24H

Office Of

The Vice

Chancellor

26 10431 Joseph Kojo Koka

Senior

Lecturer 23L CoANS

27 10538 Eugene Kufour

Maafo

Darteh

Associate

Professor 24H CHLS

28 10539 Kwaku

Adutwum

Ayim Boakye

Associate

Professor 24H CHLS

29 10540 Joseph Aggrey-Fynn

Associate

Professor 24H CoANS

30 10542 Marie Afua Baah Bakah

Senior

Lecturer 23L CES

31 10544 Opoku Oku-Afari

Senior

Assistant

Registrar 23L CoDE

32 10545

Prosper

Kwamiga Nyatuame

Senior

Assistant

Registrar 23L Registry

33 10547 Kwame Agyei Frimpong

Associate

Professor 24H CoANS

34 10549 Bakari Yusuf Dramanu

Senior

Lecturer 23L CES

35 10556 Kenneth

Asamoah-

Gyimah

Senior

Lecturer 23L CES

36 10567 Aaron Osafo Acquah

Senior

Lecturer 23L CES

37 10578 Paul Kwesi Mensah

Senior

Assistant


38 10595 Edward Kofi Ntim

Senior

Lecturer 23L CES

39 10656

Augusta

Adjei Frimpong

Senior

Lecturer 23L CES



40 10665 William

Brafo-

Insaidoo

Senior

Lecturer 23L CHLS

41 10678 Dickson Hippolyt Angbing

Senior

Lecturer 23L CES

42 10679 Kofi Tsivanyo Yiboe

Associate

Professor 24H CES

43 10680 Dora Baaba Aidoo

Senior

Lecturer 23L CES

44 10681

Seth

Amponsah Kwarteng

Senior

Lecturer 23L CES

45 10682

Richard

Torgbor Torto

Senior

Lecturer 23L CHLS

46 10683

Martin

Quephie Amlor

Senior

Lecturer 23L CHLS

47 10688

Angela

Dziedzom Akorsu

Senior

Research

Fellow 23L CHLS

48 10705 Alex Azuka Ilchie

Senior

Lecturer 23L CoHAS

49 10711 Janet Ailberta Koomson

Senior

Lecturer 23L CES

50 10712 Alex Kwao

Senior

Lecturer 23L CES

51 10719 Christine Adu- Yeboah

Associate

Professor 24H CES

52 10726 Martha Alibah

Senior

Lecturer 23L CHLS

53 10732 Samuel

Awuah-

Nyamekye

Associate

Professor 24H CHLS

54 10738

Robert

Sarpong Amoah

Senior

Lecturer 23L CoANS

55 10779

Justus

Precious Deikumah

Senior

Lecturer 23L CoANS

56 10783 Frimpong Siaw

Senior

Lecturer 23L CHLS

57 10794 Mavis Serwah

Benneh

Mensah

Senior

Lecturer 23L CHLS

58 10803 Christian Kweku Adokoh

Senior

Lecturer 23L CoANS

59 10859 Martin Bosompem

Senior

Lecturer 23L CoANS

60 10860 Samuel

K Wesi

Ndzebah Dadzie

Senior

Lecturer 23L CoANS

61 10863 Emmanuel Yamoah Tenkorang

Senior

Research

Fellow 23L CHLS



62 10870 Benjamin Anderson

Senior

Lecturer 23L CoANS

63 10872 Charles Domfeh

Senior

Lecturer 23L CES

64 10912 Elvis Asare Bediako

Associate

Professor 24H CoANS

65 10913 Samuel

Abassah –

Oppong

Senior

Lecturer 23L CoANS

66 10915 Ruphino Zugle

Associate

Professor 24H CoANS

67 10925

Douglas

Darko Agyei

Associate

Professor 24H CES

68 10962 Samuel Tieku Gyansah

Senior

Lecturer 23L CoDE

69 11027 Ishmael Mensah

Associate

Professor 24H CHLS

70 11028 Eunice Fay Amissah

Senior

Lecturer 23L CHLS

71 11032 Paul Kwame Essandoh

Senior

Lecturer 23L CoANS

72 11034

Edward

Adzesiwor Obodai Professor 25L CoANS

73 11035

Ignatius

Hudu Sirikyi

Senior

Medical

Officer 23L DUHS

74 11043

Samuel

Mindakifoe Naandam

Senior

Lecturer 23L CoANS

75 11045 Godwin Awabil

Associate

Professor 24H CES

76 11046 Alex Jacques Wilson

Senior

Lecturer 23L CHLS

77 11047 Epton Joseph

Koranteng-

Addo

Senior

Lecturer 23L CoANS

78 11048

Joseph

Sefah Debrah

Senior

Lecturer 23L CoANS

79 11049 John Kwesi Bentum

Associate

Professor 24H CoANS

80 11072 John Elvis Hagan

Senior

Lecturer 23L CES

81 11105 Samuel Kwaku Agyei

Senior

Lecturer 23L CHLS

82 11108 Daniel Agyapong

Associate

Professor 24H CHLS

83 11109 George Tackie

Senior

Lecturer 23L CHLS



84 11115

Augustina

Araba Amissah

Senior

Lecturer 23L CES

85 11122

Mathew

Quamey Alidza

Senior

Lecturer 23L CHLS

86 11215 Julius Kofi Hagan

Senior

Lecturer 23L CoANS

87 11224 Kwabena Nkansah Darfor

Senior

Lecturer 23L CHLS

88 11227 Kwasi Otopa Antiri

Senior

Lecturer 23L CES

89 11231 Thompson Mumuni

Senior

Lecturer 23L CES

90 11265

Anthony

Kwabena Twum

Senior

Lecturer 23L CoANS

91 11266 Peter Mate Siakwa

Senior

Lecturer 23L CoHAS

92 11267 Patrick Kwashie Akorsu

Senior

Lecturer 23L CHLS

93 11276 Frederick Koomson

Senior

Research

Fellow 23L CHLS

94 11280 Edem Kwasi Bakah

Senior

Lecturer 23L CHLS

95 11310

Kwaku

Brako Dakwa

Senior

Lecturer 23L CoANS

96 11321 Isaac Asiamah

Senior

Lecturer 23L CoANS

97 11377

Mary

Akosua

Seiwaa

Owusu

Senior

Lecturer 23L CHLS

98 11444

Augustus

Daniel Arko

Senior

Lecturer 23L CoDE

99 11446 Vera Rosemary

Ankomah-

Sey

Senior

Lecturer 23L CoDE

100 11478

Vincent

Erskine Aziaku

Senior

Lecturer 23L CHLS

101 11512 Emmanuel Asare Bediako

Senior

Lecturer 23L CES

102 11516

Justice

Kwabena Sarfo

Associate

Professor 24H CoANS

103 11517

Joseph

Kwasi Tufour

Senior

Lecturer 23L CoANS

104 11524 Genevive Adukpo

Senior

Lecturer 23L CoANS



105 11554 Richard Ansah

Senior

Lecturer 23L CHLS

106 11557

Jonathan

Asante Otchere

Senior

Lecturer 23L CHLS

107 11558 Paul Agu Asare

Senior

Lecturer 23L CoANS

108 11563 Abraham Ansong

Senior

Lecturer 23L CHLS

109 11571 Alexander Weremfo

Senior

Lecturer 23L CoANS

110 11614 Bismark Kwao Nkansah

Senior

Lecturer 23L CoANS

111 11627

Sulemana

Seidu Abukari

Senior

Lecturer 23L CoANS

112 11635 Albert Ebo Duncan

Senior

Lecturer 23L CoANS

113 11637 Simon Mariwah

Associate

Professor 24H CHLS

114 11677 Ferdinand Ahiakpor

Senior

Lecturer 23L CHLS

115 11681 Rofela Combey

Senior

Lecturer 23L CoANS

116 11682 Christiana Naa Atsreh

Nsiah-

Asamoah

Senior

Lecturer 23L CES

117 11684 Theresah

Addai-

Mununkum

Senior

Lecturer 23L CHLS

118 11686 David Oscar Yawson

Senior

Lecturer 23L CoANS

119 11709 George Amoako

Associate

Professor 24H CoANS

120 11712

Kwasi

Opoku Boadu

Senior

Lecturer 23L CoANS

121 11762

William

Kodom Gyasi

Senior

Lecturer 23L CHLS

122 11802

Ernest

Ekow Abano

Associate

Professor 24H CoANS

123 11820 Paul Appiah Sekyere

Senior

Lecturer 23L CHLS

124 11823

Kwabena

Sarfo

Sarfo-

Kantankah

Senior

Lecturer 23L CHLS

125 11825 Edward Akomaning

Senior

Lecturer 23L CES

126 11827 Alice Matilda Nsiah

Senior

Lecturer 23L CHLS



127 11851 Ernest Teye

Senior

Lecturer 23L CoANS

128 11865 Daniel Sakyi Agyirifo

Senior

Lecturer 23L CoANS

129 11868 George Amfo-Antiri

Senior

Accountant 23L CoDE

130 11901 Anita Baaba Turkson

Senior

Lecturer 23L CES

131 11905 Clara

Akuamuah

Boateng

Senior

Lecturer 23L CoDE

132 11931 Kwabena Owusu

Senior

Accountant 23L CoANS

133 11932

Peter

Appiah Obeng

Senior

Lecturer 23L CoANS

134 11988 Michael Buenor Adinortey

Associate

Professor 24H CoANS

135 11990 Cosmas Cobbold

Associate

Professor 24H CES

136 11996

Michael

Akrofi Anang

Senior

Lecturer 23L CoANS

137 11997 Xornam Atta - Owusu

Senior

Lecturer 23L CHLS

138 12077 Robert Agbemafle

Senior

Lecturer 23L CoANS

139 12078 Hubert Danquah Nyarko

Senior

Lecturer 23L CoANS

140 12080

John

Gartchie Gatsi

Associate

Professor 24H CHLS

141 12082 Ernest Yankson

Senior

Lecturer 23L CoANS

142 12084 James Atta Peprah

Senior

Lecturer 23L CHLS

143 12108

Adeladza

Kofi Amegah

Senior

Lecturer 23L CoHAS

144 12112 Mark Kojo Armah

Senior

Lecturer 23L CHLS

145 12130 Ahmed

Adu -

Oppong

Associate

Professor 24H CoHAS

146 12151

Regina

Obilie

Amoako-

Sakyi

Senior

Lecturer 23L CHLS

147 12196

Joshua

Buer Puplampu

Senior

Lecturer 23L CoANS

148 12268 Isaac Dasmani

Senior

Lecturer 23L CHLS



149 12282

Joseph

Tufuor Kwarteng

Senior

Lecturer 23L CES

150 12283

Charles

Adabo Oppong

Senior

Lecturer 23L CES

151 12285 Bernard Yaw Sekyi Acquah

Senior

Lecturer 23L CES

152 12327 Moses Teye

Senior

Lecturer 23L CoANS

153 12350 Jacob Nunoo

Senior

Lecturer 23L CHLS

154 12355 Eric Anane

Senior

Lecturer 23L CES

155 12398 Samuel Kofi Miledzi Agblorti

Senior

Lecturer 23L CHLS

156 12435 Kobina Esia Donkoh

Senior

Lecturer 23L CHLS

157 12466

Enoch

Thaddaeus Quayson

Senior

Lecturer 23L CoANS

158 12469

Daniel

Amoako Sakyi

Senior

Lecturer 23L CoHAS

159 12470 Jacob Setorglo

Senior

Lecturer 23L CoHAS

160 12471 Kingsley Kwadwo

Asare

Pereko

Senior

Lecturer 23L CoHAS

161 12473 Samuel Acquah

Senior

Lecturer 23L CoHAS

162 12495

Michael

Tetteh Anim

Senior

Lecturer 23L CoHAS

163 12540 Isaac Buabeng

Senior

Lecturer 23L CES

164 12599 Edward Dadzie

Deputy

Director Of

Development 24H SERVICES

165 12606 Caleb

Mawuli

Kwame Agbale

Senior

Lecturer 23L CoANS

166 12607

Henry De-

Graft Acquah

Associate

Professor 24H CoANS

167 12610 James Kojo Prah

Senior

Medical

Officer 23L DUHS

168 12661 Mohammed Zangina M Isshaq

Senior

Lecturer 23L CHLS

169 12673

Leonard

Derkyi - Kwarteng

Senior

Lecturer 23L CoHAS



170 12674

Emmanuel

Kusi Achampong

Senior

Lecturer 23L CoHAS

171 12675

Ato

Ampomah Brown

Senior

Lecturer 23L CoHAS

172 12685 Anthony

Yaw

Makafui De-Souza

Senior

Lecturer 23L CHLS

173 12704 Samuel

Essien-

Baidoo

Senior

Lecturer 23L CoHAS

174 12710 Kojo Okyere

Senior

Lecturer 23L CHLS

175 12712 Daniel

Kwaku

Addo Asante

Senior

Lecturer 23L CoANS

176 12724 Denis Worlanyo Aheto

Associate

Professor 24H CoANS

177 12725 Dorcas

Obiri -

Yeboah

Senior

Lecturer 23L CoHAS

178 12731 Kwabena Dankwa

Senior

Lecturer 23L CoHAS

179 12734

David

Wellington Essaw

Senior

Research

Fellow 23L CHLS

180 12738

Frederick

Ato Armah

Associate

Professor 24H CoANS

181 12739 Addae Boateng Adu - Gyamfi

Senior

Lecturer 23L CHLS

182 12745

Eric Kojo

Wu Aikins

Senior

Lecturer 23L CHLS

183 12747 Isaac Dadzie

Senior

Lecturer 23L CoHAS

184 12748

Kwamena

Minta Nyarku

Senior

Lecturer 23L CHLS

185 12749 Abigail

Opoku

Mensah

Senior

Lecturer 23L CHLS

186 12755 Madison Adanusa

Senior

Medical

Officer 23L DUHS

187 12760 Florian Carl

Associate

Professor 24H CHLS

188 12761

Ernest Kofi

Amankwa Afrifa

Senior

Lecturer 23L CoANS

189 12762 Lawrence Bosiwah

Senior

Lecturer 23L CHLS

190 12766

Emmanuel

Amo Ofori

Senior

Lecturer 23L CHLS



191 12825

Samuel

Victor Nuvor

Senior

Lecturer 23L CoHAS

192 12836

Emmanuel

Kwasi Abu

Senior

Lecturer 23L CoHAS

193 12837 Joshua Amo-Adjei

Senior

Lecturer 23L CHLS

194 12840 Richmond Afoakwah

Senior

Lecturer 23L CoANS

195 12882 Emmanuel Saboro

Senior

Lecturer 23L CHLS

196 13159 Atta

Yeboah-

Sarpong

Senior

Assistant

Registrar 23L DUHS

197 13178 Eric

Opoku-

Mensah

Senior

Lecturer 23L CHLS

198 13179 Godwin

Kwakye-

Nuako

Senior

Lecturer 23L CoHAS

199 13188

Anokye

Mohammed Adam

Senior

Lecturer 23L CHLS

200 13194

Alfred

Kweku

Ampah-

Mensah

Senior

Lecturer 23L CES

201 13198

Samuel

Akobour

Yaw Debrah

Associate

Professor 24H CoHAS

202 13204 Lebbaeus Asamani

Senior

Lecturer 23L CES

203 13211 Kofi Krafona

Senior

Lecturer 23L CES

204 13212

Augustine

Mary Mensah

Senior

Lecturer 23L CHLS

205 13224 Francis Nsiah

Senior

Lecturer 23L CoANS

206 13285

Mark Kwaku

Owusu Amponsah

Senior

Lecturer 23L CES

207 13286 Stephen Doh Fia

Senior

Lecturer 23L CES

208 13291 John Windie Ansah

Senior

Lecturer 23L CHLS

209 13303 Ahmed Baba Yahaya

Senior

Lecturer 23L CHLS

210 13331 Yaw Asante Awuku

Senior

Lecturer 23L CoHAS

211 13332

Samuel

Kwesi Nkansah

Senior

Lecturer 23L CHLS



212 13334

Amina

Jangu Alhassan

Senior

Lecturer 23L CoDE

213 13396 Samuel Kyei

Senior

Lecturer 23L CoHAS

214 13397 Samuel Bert Boadi-Kusi

Senior

Lecturer 23L CoHAS

215 13398 Stephen Ocansey

Senior

Lecturer 23L CoHAS

216 13425

Desmond

Omane Acheampong

Senior

Lecturer 23L CoHAS

217 13438 George Aggrey

Senior

Lecturer 23L CoANS

218 13482 Sebastian Eliason

Senior

Lecturer 23L CoHAS

219 13505 Isaac Eliot Nyieku

Senior

Assistant


220 13506 Ebenezer Aggrey

Senior

Assistant

Registrar 23L CHLS

221 13510 Samuel Kofi Tulashie

Senior

Lecturer 23L CoANS

222 13511 Michael Amakyi

Senior

Lecturer 23L CES

223 13512 Peter

Appiah-

Thompson

Senior

Lecturer 23L CoHAS

224 13513

Noble

Kwame Asare

Senior

Lecturer 23L CoANS

225 13531

Joseph

Kwame Mintah

Associate

Professor 24H CES

226 13549 Simon Kofi Appiah

Senior

Lecturer 23L CHLS

227 13606 Patrick Osei-Kufuor

Senior

Research

Fellow 23L CHLS

228 13607 Michael

Miyittah-

Kporgbe

Senior

Lecturer 23L CoANS

229 13616

Ansumana

Sandy Bockarie

Senior

Lecturer 23L CoHAS

230 13629

Martin

Tangnaa Morna

Senior

Lecturer 23L CoHAS

231 13642 Moussa Traore

Senior

Lecturer 23L CHLS



232 13644 Hope Pius Nudzor

Senior

Research

Fellow 23L CES

233 13656 Comfort Iyabo

Ogunleye-

Adentona

Senior

Lecturer 23L CHLS

234 13658

Philip

Narteh Gorleku

Senior

Lecturer 23L CoHAS

235 13857

Joseph

Amoah Adu

Senior

Lecturer 23L CoHAS

236 13957 Emmanuel Okai

Senior

Lecturer 23L CoHAS

237 13963 Harold Ayetey

Senior

Lecturer 23L CoHAS

238 13968 Kofi

Baah-

Bentum

Senior

Assistant

Registrar 23L REGISTRY

239 13971 Akwasi Anyanful

Senior

Lecturer 23L CoHAS

240 14019 Moses Kwadzo

Senior

Lecturer 23L CoANS

241 14163

Christopher

Kwame Filson

Senior

Assistant

Librarian 23L LIBRARY

242 14173 David Teye Doku

Senior

Lecturer 23L CHLS

243 14174 Prince Amoah Barnie

Senior

Lecturer 23L CoANS

244 14176 Solomon Faakye

Senior

Assistant

Registrar 23L

Office Of

The Vice

Chancellor

245 14219 Issahaku Adam

Senior

Lecturer 23L CHLS

246 14285

Richard

Kobina

Dadzie Ephraim

Senior

Lecturer 23L CoHAS

247 14290

Juliana

Audria Dankwa

Senior

Assistant

Registrar 23L CHLS

248 14291

Millan

Ahema Tawiah

Senior

Assistant

Registrar 23L CES

249 14334 Georgina Asi Owusu

Senior

Assistant

Registrar 23L

Office Of

The Vice

Chancellor



250 15004 Martin Ekor

Associate

Professor 24H CoHAS

251 15006 Salifu Seidu-Larry

Senior

Lecturer 23L CoANS

252 15010

Ganiyu

Adebisi Rahman Professor 25L CoHAS

253 15015 Husein Inusah

Senior

Lecturer 23L CHLS

254 15056 Julia Elysa

Selman-

Ayetey

Senior

Lecturer 23L CHLS

255 15057 Anthony Kwabena Nkyi

Senior

Lecturer 23L CES

256 15065 Brempong Osei-Tutu

Senior

Lecturer 23L CHLS

257 15066 Nana Yaw Oppong

Senior

Lecturer 23L CHLS

258 15088

Kingsley

Dotcher Doku

Senior

Lecturer 23L CoHAS

259 15102 Elvis Ofori Ameyaw

Senior

Lecturer 23L CoHAS

260 15184 Foster Kyei

Senior

Lecturer 23L CoANS

261 15233 Mawuloe Kofi Kodah

Senior

Lecturer 23L CHLS

262 15300 Jones Abrefa Danquah

Senior

Lecturer 23L CHLS

263 15335 Kwasi

Agyen-

Mensah

Senior

Lecturer 23L CoHAS

264 15352 Patrick Kafui Akakpo

Senior

Lecturer 23L CoHAS

265 15371

Richard

Ogirma Baidoo

Senior

Lecturer 23L CoHAS

266 15380

Francis

Werner Ofei

Associate

Professor 24H CoHAS

267 15390 Michael Osei Adu

Senior

Lecturer 23L CoANS

268 15394 Otuo Serebour Agyemang

Senior

Lecturer 23L CHLS

269 15427 Alexander

Egyir-

Yawson

Senior

Lecturer 23L CoANS

270 15428 Ebikela Ivie Baidoo

Senior

Lecturer 23L CoHAS



271 15440 Francis Obeng

Deputy

Director Of

Finance 24H

Directorate

Of

Finance

272 15442 Sebastian Ken-Amoah

Senior

Lecturer 23L CoHAS

273 15448 Johnson

Owusu

Agyemang

Senior

Assistant


274 15450 Regina

Gyampoh-

Vidogah

Director Of

I.C.T 24H

Office Of

The Vice

Chancellor

275 15457 Evans Ekanem

Director Of

Health

Services 25L DUHS

276 15458

Ivy Adwowa

Efiefi Ekem

Associate

Professor 24H CoHAS

277 15460 Mohammed

Augustine

Takase

Senior

Lecturer 23L CoANS

278 15465 Evans Kofi Agbeno

Senior

Lecturer 23L CoHAS

279 15466 Henry Atawura

Senior

Lecturer 23L CoHAS

280 15467 Emmanuel

Kobina

Mesi Edzie

Senior

Lecturer 23L CoHAS

281 15471 Elias Kujo Mcdave

Senior

Lecturer 23L CHLS

282 15506 Philip Ntim Owusu

Director Of

Dpdem 25L Services

283 15524

Olufunmilola

Leah Dominic

Senior

Lecturer 23L CES

284 15525 Faustina Kemdinum Idu Professor 25L CoHAS

285 15570

Mac-

Anthony Cobblah Librarian 25L Library

286 15747 Paul Narh Doku

Senior

Lecturer 23L CoHAS

287 15761 Mawuli Kotope Gyakobo

Associate

Professor 24H CoHAS

288 15798 Fiifi

Amoako

Johnson

Senior

Lecturer 23L CHLS

289 15809 Anthony Amanfo Ofori

Senior

Lecturer 23L CoHAS

290 15949 Oxana Gorleku

Deputy Dir.

Health

Services 24H DUHS



291 3468 Kobina Yankson Professor 25L CoANS

292 3744 Kofi

Awusabo-

Asare Professor 25L CHLS

293 3759 Kwadwo

Opoku-

Agyemang

Associate

Professor 24H CHLS

294 4674 Naana Jane

Opoku-

Agyemang Professor 25L CHLS

295 5127 Raymond Nonnatus Osei

Associate

Professor 24H CHLS

296 6487 Paulina Nana Yaa Kwafoa

Senior

Assistant

Librarian 23L Library

297 6861 John Kofi Nyan Registrar 25L Registry

298 6866 Stephen Bugu Kendie Professor 25L CHLS

299 7216 Lawrence Kodwo

Owusu-

Ansah Professor 25L CHLS

300 7225 Donwini Dominic Kuupole Professor 25AL CHLS

301 7232 Isaac Richard Amuah

Associate

Professor 24H CHLS

302 7238 Alfred Owusu

Senior

Lecturer 23L CoANS

303 7298 Daniel

Theophilus

Akwa Okae-Anti

Associate

Professor 24H CoANS

304 7340 Albert Machistey Abane Professor 25L CHLS

305 7375 Paul Kingsley

Buah-

Bassuah Professor 25L CoANS

306 7498 Frederick Nii Arko Odoi

Associate

Professor 24H CoANS

307 7562 Kweku

Ansah-

Monney

Associate

Professor 24H CoANS

308 7634 Cecilia Boakye

Senior

Lecturer 23L CES

309 7725 John Blay Jnr. Professor 25L CoANS

310 7750 Francis Kodzo Amedahe Professor 25L CES

311 7785

Victor

Patrick Yao Gadzekpo Professor 25L CoANS

312 7788 Joseph Cudjoe Sefenu

Deputy

Registrar 24H SGS

313 7806 Joseph Adjei Kwarteng Professor 25L CoANS

314 7819 Benjamin Andrew Mensah

Associate

Professor 24H CoANS

315 7826 Livingstone Kobina Sam-Amoah Professor 25L CoANS



316 7829 Victor Kwabena Yankah

Associate

Professor 24H CHLS

317 7853 Anthony Annan-Prah

Associate

Professor 24H CoANS

318 7857 Paulina Afful-Arthur

Deputy

Librarian 24H Library

319 7867

Emmanuel

Paul Owusu

Director Of

Internal

Audit 25L

Directorate

Of Internal

Audit

320 7873 Samuel Yeboah Mensah Professor 25L CoANS

321 7874

Samuel

Obeng Apori

Associate

Professor 24H CoANS

322 7877 Richard Vincent Cudjoe

Associate

Professor 24H CHLS

323 7886 Yaw Opoku Boahen Professor 25L CoANS

324 7900 Benjamin A. Osei

Associate

Professor 24H CoANS

325 7902 Peter Kofi Kwapong Professor 25L CoANS

326 7910 Edoh Torgah

Associate

Professor 24H CHLS

327 7920 Kingsley Taah

Senior

Lecturer 23L CoANS

328 7925 Patrick K. Agbesinyale

Associate

Professor 24H CHLS

329 7927 Modesta Efua Gavor

Associate

Professor 24H CES

330 7932 Grace Caselina Vanderpuije

Senior

Lecturer 23L CoANS

331 7940 Rosemary Serwah Bosu

Associate

Professor 24H CES

332 7942 Joshua Danso

Owusu-

Sekyere Professor 25L CoANS

333 8007 Jeff

Teye

Emmanuel Onyame

Deputy

Registrar 24H REGISTRY

334 8025 William Ghartey

Senior

Lecturer 23L CoANS

335 8035 Alexander Asante

Deputy

Director

I.C.T 24L CoANS

336 8039 Nana Amma Anokye

Senior

Research

Fellow 23L CHLS



337 8040 John Victor Mensah Professor 25L

OFFICE

OF THE

V.C

338 8066 John Nelson Buah Professor 25L CoDE

339 8093

Edward

Akwasi Ampofo

Senior

Lecturer 23L CoANS

340 8101 Elizabeth Cornelia Annan-Prah

Senior

Lecturer 23L CHLS

341 8120 Ekua Takyiwa Amua-Sekyi

Senior

Lecturer 23L CES

342 8151 Mildred Afia Emefa Asmah

Deputy

Registrar 24H CoANS

343 8181 Okofo Asenso

Senior

Lecturer 23L CHLS

344 8182

Joseph

Ghartey Ampiah

Vice

Chancellor 25AL

OFFICE

OF THE

V.C

345 8186 Yaw Afari Ankomah Professor 25L CES

346 8198 Sylvester Petrus Krakue

Senior

Lecturer 23L CHLS

347 8201 Emmanuel Kofi Gyimah

Associate

Professor 24H CoDE

348 8216 Isaac Kojo A. Galyuon Professor 25L CoDE

349 8258

Joseph

Gordon Mensah

Senior

Assistant

Registrar 23L CoHAS

350 8266

Akua

Opokua Britwum

Associate

Professor 24H CHLS

351 8271 John

Kwame

Eduafo Edumadze

Deputy

Director

I.C.T 24L

OFFICE

OF

THE V.C

352 8308 Natalia Gregorevina Mensah

Associate

Professor 24H CoANS

353 8321 Evelyn Nyan

Senior

Assistant

Registrar 23L CHLS

354 8345 Christina Offei-Ansah

Associate

Professor 24H CES

355 8349 Elizabeth Obese

Director Of

Finance 25L

Directorate

Of Finance

356 8356 Samuel

Akuamoa-

Boateng

Senior

Lecturer 23L CoANS



357 8357 Peter Brown

Senior

Lecturer 23L CoDE

358 8358 Koawo Edjah

Associate

Professor 24H CES

359 8366 (Dr) Kabiru Koredele Azeez

Deputy Dir.

Health

Services 24H DUHS

360 8375 Philip Ebow

Bondzi-

Simpson Professor 25L CHLS

361 8378 Nathaniel Howard

Senior

Lecturer 23L CoANS

362 8407 Palmas Anyagre

Senior

Lecturer 23L CES

363 8436

Gideon

Enoch Abbeyquaye

Deputy

Director

I.C.T 24L

OFFICE

OF

THE V.C

364 8438 Moses Maclean Abnory

Deputy


365 8446 William Boateng

Senior

Lecturer 23L CHLS

366 8447 Irene Tawiah Ampong

Senior

Lecturer 23L CES

367 8452 Kate Aba Sam

Senior

Accountant 23L CES

368 8460 Eric Magnus Wilmot

Associate

Professor 24H CES

369 8489 Alexis Vitus Akanson

Deputy

Registrar 24H CHLS

370 8494 Frederick Ocansey Professor 25L CES

371 8511 Mary Owusu Obimpeh

Senior

Assistant

Registrar 23L CES

372 8516

Benjamin

Kofi Nyarko

Senior

Lecturer 23L CHLS

373 8541

James

Kweku Eshun

Senior

Lecturer 23L CHLS

374 8549 Edward

Marfo-

Yiadom

Associate

Professor 24H CHLS

375 8619 Rosemond Boohene

Associate

Professor 24H

OFFICE

OF

THE V.C

376 8629 Festus

Annor-

Frempong

Associate

Professor 24H CoANS



377 8642

Emmanuel

Plas Otwe

Senior

Lecturer 23L CoANS

378 8650 Francis Oppong

Boachie-

Mensah

Associate

Professor 24H CHLS

379 8685

Barima

Kwabena Antwi

Associate

Professor 24H CHLS

380 8686 Joseph

Agyenim-

Boateng

Senior

Research

Fellow 23L CHLS

381 8744

Clement

Kwadzo Agezo

Associate

Professor 24H CES

382 8748 Ofosu

Addo-

Danquah

Senior

Lecturer 23L CHLS

383 8753

Patrick

Akwesi Baah

Deputy Dir.

Health

Services 24H DUHS

384 8821 Francis Enu-Kwesi

Associate

Professor 24H CHLS

385 8823 Eugene Kwesi Hesse

Senior

Assistant

Registrar 23L SGS

386 8827 Alberta Yaa Graham

Senior

Assistant

Registrar 23L CES

387 8830 Stephen

Baafi-

Frimpong

Senior

Lecturer 23L CES

388 8847 George

Kwaku

Toku Oduro Professor 25L CES

389 8849 Baah Sefa Ntiri

Senior

Lecturer 23L CoANS

390 8853

Ernest

Laryea Okorley

Associate

Professor 24H SGS

391 8854 Joseph

Benjamin

Archibold Afful

Associate

Professor 24H CHLS

392 8929 Betty Kardze

Addo-

Nkrumah

Senior

Assistant

Registrar 23L REGISTRY

393 8934

Georgina

Yaa Oduro

Senior

Lecturer 23L CHLS

394 8950 Christina Boateng

Senior

Lecturer 23L CES

395 8951

Yaw

Sarkodie Agyemang

Senior

Lecturer 23L CHLS



396 8958 Raymond Edziah

Senior

Lecturer 23L CoANS

397 9006

Linda

Dzama Forde

Associate

Professor 24H CES

398 9068 Kenneth Shelton Aikins

Senior

Research

Fellow 23L CHLS

399 9072 Doreen Tetteh - Cofie

Senior

Lecturer 23L CES

400 9073 Francis Eric Amuquandoh Professor 25L CHLS

401 9090 Dora Francisca

Edu-

Buandoh

Associate

Professor 24H

OFFICE

OF

THE V.C

402 9109 Isaac Baafi Sarbeng

Deputy


403 9120 Kofi Ayebi-Arthur

Senior

Lecturer 23L CES

404 9127 Eric

Nyarko-

Sampson

Associate

Professor 24H CES

405 9152 Irene Vanderpuye

Senior

Lecturer 23L CES

406 9182 Albert Obeng Mensah

Senior

Lecturer 23L CoANS

407 9222 Edem Kwesi Amenumey

Senior

Lecturer 23L CHLS

408 9223 Kweku

Kissah-

Korsah

Senior

Lecturer 23L CHLS

409 9224 Joseph Kwadjoe Abanga

Senior

Lecturer 23L CHLS

410 9392

Emmanuel

Ekow Asmah

Senior

Lecturer 23L CHLS

411 9418

Nicholas

Koku Kutor

Senior

Lecturer 23L CES

412 9509 Seth Kofi Nti

Senior

Lecturer 23L CES

413 9593 Rebecca Dei Mensah

Senior

Lecturer 23L CHLS

414 9607 Ernest Kofi Davis

Associate

Professor 24H CHLS

415 9613 Gladys

Mansa

Yawa Feddy-Akyea

Senior

Lecturer 23L CHLS

416 9619 Eric Bortey-Anum Professor 25L CHLS

417 9655 Peter Kojo Tsiwah Grant

Associate

Professor 24H CHLS



418 9682 David Kofi Essumang Professor 25L CoANS

419 9698

Alex

Somuah Obeng

Senior

Lecturer 23L CHLS

420 9699 Sarah Darkwa Professor 25L CES

421 9700 Alex Nii Moi Pappoe

Associate

Professor 24H CoANS

422 9793 Stephen Asante

Senior

Lecturer 23L CHLS

423 9795 Henrietta Abane

Senior

Lecturer 23L CHLS

424 9796 Camara Kwasi Obeng

Senior

Lecturer 23L CHLS

425 9819 Yayo Kwame Wilson

Associate

Professor 24H CHLS

426 9853 Kwame Osei Kwarteng

Associate

Professor 24H CHLS

427 9874 Akwasi

Kumi-

Kyereme

Associate

Professor 24H CHLS

428 9911 David Larbi

Senior

Assistant

Registrar 23L CES

429 9912 Paul Baidoo

Senior

Lecturer 23L CHLS

430 9914

Johnson

Nyarko Boampong Professor 25L CoHAS

431 9931 Kankam Boadu Professor 25L CES

432 9935 Emmanuel Kwame Essel

Associate

Professor 24H CoANS

433 9936 Francis

Eyiah-

Bediako

Senior

Lecturer 23L CoANS

434 9940 Isaac

Bentum-

Ennin

Senior

Lecturer 23L CHLS

435 9953 Bethel Tawiah Ababio

Senior

Lecturer 23L CES

436 9975 Henry Amankwah

Senior

Lecturer 23L CoANS

437 9981 Moses Jojo Eghan

Associate

Professor 24H CoHAS

1393. We blamed the anomaly on the officer’s disregard for the

constitutional provisions.



1394. Failure to declare assets and liabilities would make it difficult

to determine if public officers have legally or illegally acquired assets

during their tenure of office.

1395. We recommended that all affected officers should declare their

assets and liabilities to the Auditor-General.

Expired Accreditation of 37 Programmes 1396. Regulations 12(1) of the Tertiary Institutions Establishment

and Accreditation Regulations, 2010 (L.I 1984) provides that an

institution shall initiate the process for re-accreditation of its

programmes or the institution itself (whichever is applicable) one (1)

year prior to the expiry of validity of the accreditation certificates.

1397. On the contrary our review of the University’s accreditations

disclosed that thirty-seven (37) programmes of the University had

expired since 2013. Details are shown in table 156.

Table 156: Expired Accreditation of 37 Programmes

No. Program

Student

Group

Expiry

Date Status

1 Bachelor Of Arts ( African Studies) Regular 31/3/16 Unaccredited

2

Bachelor Of Arts ( Social

Behaviour And Conflict

Management ) Regular 31/8/14 Unaccredited

3

Bachelor Of Education ( Basic

Education) Regular 31/8/14 Unaccredited

4

Bachelor Of Education ( Social

Sciences) Regular 31/8/14 Unaccredited

5

Bachelor Of Education ( Social

Studies) Regular 31/8/16 Unaccredited

6 Bachelor Of Laws ( L L B ) Regular 31/8/16 Unaccredited

7 Bachelor Of Music Regular 31/8/14 Unaccredited

8 Bachelor Of Science (Agribusiness) Regular 31/7/16 Unaccredited

9 Bachelor Of Science (Agriculture ) Regular 31/3/16 Unaccredited

10

Bachelor Of Science ( Animal

Production ) Regular 31/3/16 Unaccredited



11

Bachelor Of Science (

Biochemistry) Regular 31/7/17 Unaccredited

12

Bachelor Of Science ( Computer

Science) Regular 31/8/16 Unaccredited

13

Bachelor Of Science ( Engineering

Physics) Regular 31/3/16 Unaccredited

14

Bachelor Of Science ( Forensic

Science) Regular 31/7/17 Unaccredited

15

Bachelor Of Science (Labouratory

Technology) Regular 31/8/16 Unaccredited

16 Bachelor Of Science (Mathematics) Regular 30/6/16 Unaccredited

17

Bachelor Of Science ( Meteorology

And Atmospheric Physics) Regular 31/8/16 Unaccredited

18 Bachelor Of Science ( Physics) Regular 31/8/16 Unaccredited

19

Diploma In Labour Studies –

Sandwich Regular 30/10/13 Unaccredited

20 Doctor Of Optometry Regular 31/8/15 Unaccredited

21

Master Of Arts (Labour Studies) –

Sandwich Regular 11/09/2018 Unaccredited

22

Master Of Philosophy (Agricultural

Economics) Sandwich 31/7/18 Unaccredited

23


Extension) Sandwich 31/7/18 Unaccredited

24


Mechanisation) Regular 30/11/16 Unaccredited

25

Master Of Philosophy ( Animal

Science) Sandwich 31/3/16 Unaccredited

26

Master Of Philosophy ( Crop

Science) Sandwich 31/3/16 Unaccredited

27

Master Of Philosophy (Educational

Administration) Sandwich 31/8/16 Unaccredited

28

Master Of Philosophy (Educational

Planning) Sandwich 31/8/16 Unaccredited

29

Master Of Philosophy (English

Language) Sandwich 30/6/16 Unaccredited

30

Master Of Philosophy (Ghanaian

Languages) Sandwich 31/3/16 Unaccredited

31 Master Of Philosophy ( History) Sandwich 31/8/15 Unaccredited

32

Master Of Philosophy (

Mathematics) Sandwich 30/6/16 Unaccredited

33

Master Of Philosophy ( Molecular

Biology And Biotechnology ) Sandwich 13/4/16 Unaccredited

34 Master Of Philosophy ( Philosophy) Regular 31/3/16 Unaccredited



35

Master Of Philosophy ( Post

Harvest Technology) Regular 31/3/16 Unaccredited

36

Master Of Philosophy ( Seed

Science And Technology) Regular 31/3/16 Unaccredited

37 Master Of Philosophy ( Sociology) Distance 31/8/14 Unaccredited

1398. Management’s inability to strictly abide by the tenets of the

Accreditations Regulations resulted in the anomaly.

1399. The students offering these programs stand the risk of not

obtaining valid and recognised certificate after their programme of

study.

1400. We recommended to Management to ensure that all expired

programmes are re-accredited, failure of which Management shall

be faced with sanctions per Section 8 and 24 of the National

Accreditation Board Act 2007 (Act 744) which demand that an institution

shall not operate or run a programme without accreditation and a person

who runs an unaccredited programme, advertises an unaccredited

institution or an unaccredited programme commits an offence and

is liable on summary conviction to a fine of not more than three

hundred penalty units or to a term of imprisonment of not more than

two years or both.

1401. Management in response indicated that it had applied for re-

accreditation and awaiting response from National Accreditation

Board.

Failure to change ownership of the University vehicles

procured


states, “A Principal Spending Officer of a covered entity, state-owned

enterprise or public corporation shall be responsible for the assets

of the institution under the care of the Principal Spending Officer

and shall ensure that proper control systems exist for the custody

and management of the assets.”



1403. We noted during physical inspection and document

verification of the University’s vehicles that out of 333 official

vehicles of the University, ownership for forty-nine (49) were not

captured in the name of the University. As a result, ownership was

still vested in the dealers or suppliers. Details are shown in table

157.

Table 157 Failure to change ownership of the University vehicles procured

No. Vehicle No. Make Model Vehicle

Type Unit Ownership

1 GM 9725-13 Hyundai Ambulan

ce Light Duty

Directorate Of

University

Health

Services

Auto Part Plaza Ltd

2 GT 2728 V Nissan Patrol Light Duty

College Of

Distance

Education

Auto Part Plaza Ltd

3 CR 188-17 Toyota Coaster

Bus Bus Src Office Cali Ghana

4 AC 1524-16 Toyota Land

Cruiser Light Duty Library Donation

5 GT 8863 Z Toyota Land

Cruiser Light Duty Pro Vc's Office

Donation-

Getfund/University

Of Education

6 GV 120 V Toyota Coaster

Bus Light Duty

Health

Sciences

Educ. Dept

Donation-Ministry

Of Health

7 GT 44 V Toyota Pick Up Light Duty Environmental

Health Section Donation

8 GE 3885 V Mercedes

-Benz Mcv Heavy Duty

Transport

Section Donation

9 GT 9341 J BMC

200

Cesspit

Emptier

Heavy Duty Environmental

Health Section Donation

10 GV 1547 X TATA Tata Bus Heavy Duty Transport

Section

Donation-Ministry

Of Education

11 GV 1558 X TATA Tata Bus Heavy Duty Transport

Section

Donation-Ministry

Of Education

12 ER 3344 U Nissan Terrano Light Duty College Of

Humanities

Japan Motors-Auto

Parts Ltd



And Legal

Studies

13 GN 1706-16 Nissan Navara Light Duty

Central

Administratio

n

Japan Motors

14 GT 3197-10 Nissan Navara Light Duty School Of

Business Japan Motors

15 GT 4596-10 Nissan Urvan Light Duty Printing Press Japan Motors

16 GV 269-11 Daewoo Bus Heavy Duty

School Of

Medical

Sciences

Min.of Health

17 GV 357 - 10 Great

Wall

Great

Wall Pick

Up

Light Duty

Directorate Of

University

Health

Services

Min.of Health

18 GV 421-11 Great

Wall

Great

Wall Pick

Up

Light Duty Security

Section Min.of Health

19 GV 205-11 Great

Wall

Great

Wall Pick

Up

Light Duty Fire Service

Unit Min.of Health

20 AS 6194-16

Neoplan(

Man

Diesel)

Man

Diesel

Bus

Heavy Duty

School Of

Medical

Sciences

Neoplan Ghana Ltd

21 AW 1288 Z

Neoplan(

Man

Diesel)

Man

Diesel

Bus

Heavy Duty Sports Section Neoplan Ghana Ltd

22 GT 5171 Y Toyota Hilux Light Duty School Of

Agriculture Project

23 GV 5170 C Toyota Pick Up Light Duty School Of

Agriculture Project

24 GT 47 V Toyota Pick Up Light Duty Electricity

Section Project-GETFUND

25 GW 7585 R Toyota Hiace Light Duty Institute Of

Dev. Studies Project

26 GT 928-16 Ford F 150 Light Duty

Fisheries And

Aquatic

Sciences Dept.

Project-UNITED

STATES AGENCY

FOR INTD DEV

27 GV 3197 A Kia K2700

S/C Truck

Directorate Of

Physical

Development

And Estate

Man

Project



28 GW 5793 Q Nissan Pick-Up Light Duty School Of

Agriculture Project

29 GV 621 W Nissan Navara Light Duty School Of

Agriculture

Project-

AFFSD/CSIR

30 GV 101 S Nissan Urvan Light Duty

School Of

Physical

Sciences

Project-AUTO

PARTS LTD

31 GV 4621 D Land

Rover Defender Light Duty

Transport

Section Project

32 GE 996 - 10 Land

Rover Defender Light Duty

Institute For

Edu. Plan.

And Admin.

Dept.

Project-PHC

MOTORS LTD

33 GV 784 U Shanghai Sh-504

Tractor Heavy Duty

School Of

Agriculture Project

34 GM 3959-14 Toyota Hiace Light Duty

College Of

Distance

Education

Smice International

35 GM 3958-14 Toyota Hiace Light Duty

College Of

Distance

Education

Smice International

36 GM 4109-14 Toyota Coaster Light Duty Institute of

Edu. Dept. Smice International

37 GM 3825-14 Toyota Coaster

Bus Bus

College Of

Distance

Education

Smice International

38 GM 6420-14 Toyota Coaster

Bus Light Duty

College Of

Distance

Education

Smice International

39 GM-3759-14 Toyota Coaster

Bus Bus

University

Junior High

School

Smice International

40 GT 2946 W Toyota Corolla Light Duty Transport

Section

Toyota Ghana-

GETFUND

41 GT 4637 Y Toyota Hilux Light Duty School Of

Agriculture Toyota Ghana

42 GR 5372-11 Toyota Hiace Light Duty Src Office Toyota Ghana

43 GC 652-11 Toyota Land

Cruiser Light Duty

College Of

Health &

Allied Sciences

Western

Automobile

44 GC 653-11 Toyota Land

Cruiser Light Duty

College Of

Distance

Education

Western

Automobile



45 GE 2362-17 Toyota Hilux Bus

Faculty Of

Educational

Foundations

Western

Automobile-DUBAI

AUTO TRADING

LTD

46 GC 1546-11 Toyota Coaster Mini Bus Tewu Western

Automobile

47 GC 1549-11 Toyota Coaster Heavy Duty

College Of

Distance

Education

Western

Automobile

48 GS 7169-17 HINO Great

Wall Truck

Institute Of

Edu. Dept.

Wel International

Ghana Limited

49 GS 8149-17 HINO Great

Wall Truck

College Of

Distance

Education

Wel International

Ghana Limited

1404. We blamed the anomaly on transport section of the University

for their inability to effect the change of ownership into the

University’s name.

1405. Management may find it difficult to make legal claims to these

vehicles should any legal tussle arises. Also, the University may not

have the title to dispose of the vehicles, if Management decides to do

so.

1406. We advised Management to take necessary steps to obtain

legal title for the 49 vehicles.

1407. Management in response indicated that the University had

difficulties with some suppliers to change ownership of vehicles

procured from them and the issue had been referred to the legal unit

of the University for Necessary Action. Again, some of the vehicles

were project vehicles and ownership could be changed only after

programme duration.

Failure to present vehicle-GT 8473-10 for Audit verification 1408. Section 52(1) of the Public Financial Management Act, 2016

(Act 921) states that a Principal Spending Officer of a covered entity,







1409. On the contrary the University did not produce Nissan Hard

body Pickup with registration No. GT8473-10 and Chassis No.

ADNCJUD22Z0000585 for verification. We further noted that the

road worthy and insurance for the vehicle had not been paid for the

2018 financial year as there were no record on file.

1410. The absences of comprehensive asset register for the

University and lack of monitoring by the transport section caused of

the anomaly.

1411. Assets of the University could easily be stolen without the

knowledge of the authorities of the University as there was lack of

monitoring.

1412. We urged Management to produce the vehicle or a report on

the where about of the vehicle with related documents for audit

verification, failure of which the replaceable value of the vehicle

should be paid by the officers in charge of the University’s assets.

1413. Management in response indicated that it had written to Prof.

Peter W. Kwapong who is holding on to the vehicle to present it for

audit.

ENCYCLOPEADIA AFRICANA PROJECT

Introduction 1414. This report relates to the audited accounts of the Encyclopeadia

Africana Project for the year ending 31 December 2018.



Operational result 1415. The year 2018 ended with a deficit of GH¢5,697representing

409% decrease of the previous year’s surplus of GH¢1,843. The

comparative performance indicators for the two years are shown in

the Table 158.

Table 158: Statement of financial performance 2018

Income 2018

GH¢

2017

GH¢

%

Inc/Dec

Gov’t of Ghana Subvention 272,191 194,235 40

Other Funds - 24,315 (100)

Deferred Income 2,487 2,763 (10)

Total Income 274,678 221,313 24

Expenditure


234,917 170,261 38

Goods & Services 45,458 49,209 (8)

Total Expenditure 280,375 219,470 28

Surplus/(Deficit) (5,697) 1,843 (409)

1416. Total income increased from GH¢221,313.00 in 2017 to

GH¢274,678.00 in 2018 representing an increase of 24% over the

period. The increase was mainly due to Government Subvention.

1417. Total Expenditure also increased by 28% from GH¢219,470 in

2017 to GH¢280,375 in 2018. This was as a result of 38.0% increase

in Compensation for Employees by GH¢64,656.

Financial position

1418. The Project’s financial position as at 31 December 2018 is


Table 159: Statement of Financial position as at 31 December 2018

Item 2018 GH¢

2017 GH¢

% Inc/Dec

Non- Current Assets 37,760 39,234 (4)

Current Assets 661 4,770 (86)

Total Assets 38,421 44,004 (12.7)

Current Liabilities 848 1,248 (32)



Net Assets 37,573 42,756 (12.2)


Non-Current Assets

1419. The non-current assets of the Secretariat decreased by a

margin of 4% from GH¢39,234 in 2017 to GH¢37,760 in 2018 which

was caused by depreciation.

Current Assets 1420. Current assets decreased by 86 % from GH¢4,770.00 in 2017

to GH¢661.00 in 2018. This was caused by the nil bank balance as

at 31st December 2018.

Current Liability

1421. Current Liability of the Secretariat decreased by margin of

32% from GH¢1,248.00 in 2017 to GH¢848.00 in 2018 because of

seminars and workshops debt of GH¢400.00 was paid.

Liquidity Ratio

1422. The liquidity ratio of 0.78:1 indicates that, the Secretariat

cannot meet its obligations whenever they fall due.

MANAGEMENT ISSUES

Non-Publication of Encyclopaedia 1423. The Mission of the Encyclopaedia Africana Project is ‘To

initiate, facilitate and produce authentic peer-reviewed articles on

indigenous Africa and African life, and organise them into volumes

of Encyclopaedia Africana for publication.’

1424. The functions of the Encyclopaedia Africana Project also state

that, the Secretariat of the Project performs oversight and co-

ordinating functions for the Project including:



Research into African Life, history, economic, architecture,

etc. which is authentically African in its point of view and at

the same time a product of scientific scholarship.

Prepare detailed recommendations on content and

organisation of comprehensive Encyclopaedia of African Life

Identify scholars to produce peer-reviewed articles, edit and

eventually effect publication of volumes on different subjects

of the Encyclopaedia.

Facilitate the formation of National Co-operating Committees

in each African country to enlist assistance of scholars in

various African Universities and research centres to

contribute to the Encyclopaedia.

Organisation of international meetings of the Project.’’

1425. Contrary to these objectives and mandate, the Secretariat has

been able to publish only 3 out of the 20 copies of the Encyclopaedia

since its inception in the year 1963. The last publication was in 1995

which was 24 years ago. Details are shown in table 160.

Table 160 Number of Encyclopaedia Published

Title Year of Publication

Dictionary of African Biography (Vol.1:

Ethiopia-Ghana)

1977

Dictionary of African Biography (Vol.2: Sierra Leone-Zarie)

1979

Dictionary of African Biography (Vol.3: South Africa- Botswana-Lesotho-Swaziland)

1995

1426. This delay has occurred as a result of inadequate funding of

the project, inadequate staff, non-existence of the Editorial board

and a standing ommittee to ensure that these objectives are carried

out effectively.



1427. There is currently no legal backing for the Secretariat’s

existence as the Executive Instrument (EI 5) establishing it has

been repealed.

1428. Delay in publishing of these Encyclopaedias may defeat the

purpose for which the project was established.

1429. We recommended that Management should engage the

sector minister on the need to submit a draft bill to parliament.

1430. Management explained that inputs were not coming from

other African countries.

GHANA INSTITUTE OF JOURNALISM

Introduction 1431. This report relates to the audited accounts of the Ghana

Institute of Journalism for the period 1 January 2016 to 31

December 2018.

Operational Results 1432. The operational surplus as at the end of 2018 reduced from

GH¢4,665,565.84 in 2017 to GH¢4,076,229.20 a decrease of 12.6%.

The decrease in the surplus could mainly be attributed to the non-

allocation of GETfund resources to the Institute for the Building

project. The performance indicators for 2018 are as shown in the

table 161.


Income

2018 GH¢

2017 GH¢

% Change

Government Subvention 5,538,786.11 6,100,851.61 (9.2)

Other Income (IGF) 13,831,768.29 11,713,453.02 18.1

Total Income 19,370,554.40 17,814,304.63 8.7

Expenditure

Personnel Emolument 7,272,262.11 6,426,742.56 13.2



Surplus 4,076,229.20 4,665,565.84 (12.6)



1433. Total Income increased by 8.7% during the year from

GH¢17,814,304.63 in 2017 to GH¢19,370,554.40 in 2018. This was

mainly due to increase in revenue from IGF activities. However, there

was a reduction in Government Subvention from GH¢6,100,851.61

in 2017 to GH¢5,538,786.11 in 2018 representing 9.2% decrease.

This was attributed to the Institute not receiving any Getfund

allocation to fund its Building Project in 2018 as was done in 2017.

1434. Other Income also increased by 18.1% during the year from

GH¢11,713,453.02 in 2017 to GH¢13,831,768.29 in 2018. The

increase could be attributed to increase in receipt of student fees

from GH¢9,142,300.46 in 2017 to GH¢11,701,757.83 in 2018

representing 28%.

1435. Total Expenditure also increased from GH¢13,148,738.79 in

2017 to GH¢15,294,325.20 in 2018 representing 15.6% increase.

This was attributed to a 12.6% rise in Personal Emoluments which

was largely due to 12.3% increase in Salary/Wages and

Compensation expenditure from GH¢4,681,036.58 in 2017 to

GH¢5,256,807.86 in 2018.

Financial Position 1436. The Institute’s financial position is summarised in table

162.


2018 GH¢

2017 GH¢

% Change

Non-Current Asset 11,486,525.10 12,248,843.57 (6.2)

Current Asset 17,389,043.00 11,767,899.08 47.8

Current Liabilities 2,140,960.99 1,358,364.75 57.6


1437. Non-Current Asset decreased by 6.2% due to non-expenditure

in relation to lecture hall complex which is being constructed by

GETFund for the Institute. As a result, Work-in-Progress amounting

to GH¢4,879,589.48 in 2017 remained unchanged in 2018.



1438. Current assets increased significantly by 47.8% due to

increase in investment and cash holdings respectively.


GH¢1,358,386.75 to GH¢2,140,960.99 reducing the liquidity

position of the Institute from 8.7:1 in 2017 to 8.1:1 in 2018.

1440. Nevertheless, the Institute’s liquidity position is strong

enough to enhance payment of its short-term liabilities when they

become due.

MANAGEMENT ISSUES Payment for GETFund projects from IGF without approval from the Minister - GH¢2,794,987.30

1441. Section 30 (2) (a) and (c) of Public Financial Management, Act

2016 (Act 921) states that, a covered entity shall not obtain a credit

facility from any person if that covered entity

(a) has not obtained permission from the Minister; (b) does not have the capacity to pay for the expenditure from the approved estimates as appropriated by Parliament for that

financial year.

1442. Our audit disclosed that, Management contracted four

companies to supply vehicles, audio visual equipment and library

books as well as the construction of a lecture hall complex. The

source of funding for the projects was GETFund. The cost accrued

for the projects were GH¢1,715,282.97 in 2016 and

GH¢1,079,704.33 in 2017 but GETFund did not pay the

contractors.

1443. We further noted that on 23rd January 2017 the Institute

wrote to GETFund through National Council for Tertiary Education

(NCTE) informing them of the Memorandum of understanding

between GIJ and Top International Engineering (GH) Ltd that on



preparation of the certificates GIJ will honour from Internally

Generated Fund (IGF) for GETFund to refund.

1444. The above arrangement to use the IGF was done without

approval from the Minister as the expenditure was also not budgeted

for in the Institute’s 2016/2017 IGF budget. Details are shown in

table 163.

Table 163: Payment of Getfund Project with IGF

Date PV No.

Cheque Number

Details Amount GH¢

Suppliers Refund By Getfund

16/8/16 948 024388 Supply of 7

Units Nissan Vehicles

822,105.00 Japan Motor's

Co Limited

Refunded In

2019

1/9/16 1015 024456 Supply of 7 Units Nissan Vehicles

548,069.60 Japan Motor's Co Limited

Refunded In 2019

19/8/16 961 024401 Supply and Installation of Audio Visual Equipment and Teaching Aids

198,400.00 Scl Company Limited

Not Refunded

12/12/16 1572 025025 Library Books

146,708.37 EPP Books

Services

Not Refunded

Total Getfund Indebtedness 2016

1,715,282.97

11/4/17 313 025360 Construction

and Completion of Lecture Hall Complex For GIJ

287,953.71 Top

International Engineering Ghana Limited

Refunded In

June 2019

7/6/17 574 000051 Construction and Completion of Lecture Hall

Complex For GIJ

791,750.62 Top International Engineering Ghana Limited

Not Refunded

Total GETFund Indebtedness 2017

1,079,704.33

Grand Totals 2,794,987.30



1445. We attributed this to lack of funds from the GETFund to

promptly pay the contractors when the various invoices and

payments certificate were presented by the suppliers and

contractors.

1446. Failure to comply with the above Section does not allow

Management to achieve value for money. The Institute has locked

up its money that could have been used for other programmes.

1447. We urged Management to ensure that retrospective approval

is sought from the Parliament and effort made for GETFund to

release the total amount of GH¢2,794,987.30 owed back to the

Institute.

1448. Management responded that GETFund has refunded an

amount of GH¢1,658,128.31 in 2019 and doing all the necessary

follow-ups for the balance of GH¢1,136,859.59 to be refunded to

GIJ.

Table 163b: Payment of GETFund projects from IGF

Date Chq Number Bank Amount

GH¢

Institution

18/1/19 480040000045 Cal Bank 1,370,174.60 GETFund

30/07/19 102098 Bank Of Ghana

287,953.71 GETFund

1,658,128.31

Unearned Salary- GH¢35,656.40

1449. Regulation 297 of Financial Administration Regulations 2004,

L.I. 1802 enjoins a head of department to immediately stop the

payment of salary to a public servant, who either resigned or retired,

dies or absents him or her-self from duty without leave or reasonable

cause for a period as stipulated in the administration regulations of

the establishment.



1450. Regulation 298 of the FAR 2004 again requires among others

that a head of department shall notify the bank for repayment into

the Consolidated Fund of salary or other payments credited to the

public servant’s bank account.

1451. We noted that Dr. Samuel Koffi and Mr. Kwayie Dwumah

Kuffour became separated by way of resignation and vacation of post

in February and September 2016 leading to an unearned salary of

GH¢35,656.40.

1452. Management informed Controller and Accountant-General’s

Department (C & A-G Dept.) for the deletion of their names, their

bankers were also informed to stop the salary. The two staff

members paid a total of GH¢18,233.04 into the Institute’s bank

account with Fidelity Bank. The difference of GH¢17,423.36 is yet

to be refunded by Dr. Samuel Koffi.

1453. Management did not notify the bank for repayment into the

Consolidated Fund but rather transferred GH¢18,233.04 into the

Institute’s bank account. Details shown in table 164.

Table 164: Unearned Salary not Transferred into the Consolidated

Fund

Name Rank STAFF

ID

Types of

Separation

Date

Separated

Unearned

GH¢

Amount

Paid in Institute

bank account

Outstanding

Unearned salary

Dr Samuel Koffi

Lecturer 761938 Resignation 8/2/2016 22,523.36 5,100.00 17,423.36

Mr Kwayie Dwumah Kuffour

Lecturer 761942 Vacation Of Post

September 2016

13,133.04 13,133.04 NIL

Total 35,656.40 18,233.04 17,423.36

1454. Management’s decision to instruct the bank to refund the

unearned salary to the Institute’s bank account was the cause of the



irregularity. As a result, the state is denied the use of the unearned

salary.

1455. We recommended that Management should transfer the

GH¢18,233.04 into Government chest and obtain a treasury receipt

to support the payment and pursue Dr. Samuel Koffi to refund the

balance of GH¢17,423.36 and pay same to government chest and

our office notified.

1456. Management responded that the unearned salary transferred

by the Bank into GIJ’s account will be refunded into the

Consolidated Fund. Also do a follow-up for Dr. Samuel Koffi to

refund the balance of GH¢17,423.36 into the account.

GHANA SCIENCE ASSOCIATION 2017-2018

Introduction

1457. This report relates to the audited accounts of the Ghana

Science Association the period 1 January 2017 to 31 December

2018.

Operational Result 1458. The Association registered a surplus of GH¢33,073.41 at the

end of 2018 financial year as against a deficit of GH¢57,835.51in

2017, an increase of GH¢90,908.92 or 157.2% over the previous

year’s deficit. Details of the operational results are shown in table

165.

Table 165: Statement of Income for year ended 31 December, 2018

Income 2018 GH¢

2017 GH¢

Diff % Inc/Dec


241,802.29 183,753.90 58,048.39 31.6

Other Incomes 187,659.80 136,788.57 50,871.23 37.2

Total Income 429,462.09 320,542.47 108,919.62 34.0

Expenditure



Employees Compensation

203,195.78 183,753.90 19,441.88 10.6

Goods and Service

193,192.90 194,624.08 (1,431.18) (0.7)

Total Expenditure

396,388.68 378,377.98 18,011.00 4.8

Excess of Income Over Expenditure

33,073.41 (57,835.51) 90,908.92 (157.2)

1459. Total income increased by a margin of 34.0% from

GH¢320,542.47 in 2017 to GH¢429,462.09 in 2018. This was

mainly due to 31.6% increment in Government subvention and

37.2% of other incomes respectively.

1460. Internally Generated Fund comprising income derived from

Membership dues, Journal subscription, Sale of souvenir,

Conference and workshop, Everyday science for schools, Investment

income and Exchange gains was GH¢187,659.80 for 2018 and

GH¢136,788.57 for 2017 registering an increase of GH¢50,871023

or 37.2%.

1461. Total expenditure also increased by a percentage of 4.8% from

GH¢378,377.98 in 2017 to GH¢396,388.68 in 2018.

1462. Personal Emolument increased by 10.6% from

GH¢183,753.90 in 2017 to GH¢203,195.78 in 2018.Goods and

Services also declined by 0.7% from GH¢194,624.08 in 2017 to

GH¢193,192.90 in 2018.

Financial position

1463. The Association’s financial position as at 31 December 2018

is summarised in table 166.




Item 2018 GH¢

2017 GH¢

Diff GH¢

% Inc/Dec

Non-Current Assets

228,070.67 279,587.26 (51,516.59) (18.4)

Current Assets 120,479.29 50,077.04 70,402.25 140.6

Less Current Liabilities

5,170.00 19,357.75 (14,187.75) (73.3)

Net Assets 343,379.96 310,306.55 33,073.41 10.7


1464. Non-Current Assets of the Association declined by 18.4%

from GH¢279,587.26 in 2017 to GH¢228,070.67at the end of 2018.

The decrease was due to depreciation charge for the year.

1465. Current assets of the Association increased by a percentage

of 140.6% from GH¢50,077.04 in 2017 to GH¢120,479.29 in 2018.

The rise was due to subvention received for goods and services from

government and membership dues recovered.

1466. The liabilities of the Association which was mainly sundry

creditors stood at GH¢5,170.00 from GH¢19,357.75 in 2017

representing a decline of 73.3%.

1467. Liquidity position of the Association as shown by the current

ratio of 23.3:1 in 2018 and 2.6:1 in 2017 shows that the Association


Accumulated Fund 1468. The accumulated fund of the Association stood at

GH¢343,379.96 in 2018 and GH¢310,306.55 in 2017.

MANAGEMENT ISSUES

Failure to Submit Internal Audit Report 1469. Section 11(4) of the Audit Service Act, 2000 (Act 584) states

that an internal auditor of an organisation or body to which



subsection (1) applies shall submit a copy of each report issued as a

result of internal audit work carried out to the Auditor-General.

1470. Section 16(4) of the Internal Audit Agency Act, 2003 (Act 658)

stipulates that the Internal Audit Unit shall submit a copy of its

internal audit report to its Management body and such other

persons as it is required to submit the report.

1471. Our review of the Internal Audit functions of the Association

disclosed that there was no internal audit report on the operations

of the unit for the years 2017 and 2018.

1472. Our interactions with Management disclosed that the

Association has not got its own Internal Audit Unit but rather relies

on the Internal Audit unit of the University of Ghana, Legon, hence

the anomalous condition.

1473. In effect Management is denied information needed to run the

Association efficiently. Errors and omission, where they occur in the

books of accounts might not be detected early enough for

Management’s prompt action.

1474. The Auditor-General is also denied one of the tools needed to

monitor the performance of the Association.

1475. We urged Management to ensure that the Internal Audit Unit

is put in place to fulfil its legislative functions as spelt out above.


Uninsured Accident Vehicle without Police Report- GH¢7,700.00 1477. Regulation 16 of Stores Regulations 1984, states that any

accident involving a Government vehicle must be reported to the

Police immediately by the driver in Charge of the vehicle and

thereafter to the officer in charge of the Departmental vehicles, who



will also report immediately to the Head of Department. It also stated

that the Head of Department shall immediately cause an Accident

Report Form ‘A’ to be completed…”

1478. By practice the Ghana Science Association insures its

vehicles in order to transfer some or all the cost of repairs to the

Insurance Company in the event of accidents.

1479. We noted during the review of the vehicle files that, the

insurance cover for vehicle number GV 742-18 of the Association

expired on 22nd January 2017 and was not renewed as at the time

of the audit. The vehicle was later involved in an accident on 28

January 2017. There was no evidence of Police report on file even

though Management said the accident was reported to the Police by

the driver of the vehicle.

1480. Management’s disregard for the above Regulation occasioned

the irregularity.

1481. The Association missed the opportunity to transfer the repair

cost of the vehicle of GH¢7,700.00 to the insurance company.

1482. We recommended that Management should be timely in

insuring its vehicles and obtain police report should such major

accidents occur.

1483. Management stated that events leading to the accident and

the failure to obtain police report seemed to be out of control and

hereby promises that the insurance of the vehicle will promptly be

renewed whenever it expires and a police report will always be

secured if the unforeseen occurs.

Undue Delay in Lodgement of Revenue -GH¢9,941.00 1484. Regulation 15(1) of the Financial Administration Regulations,

2004, (LI 1802), mandates a revenue collector to issue official



receipts for all monies collected and pay them into the relevant bank

account within 24 hours of receipt.

1485. Contrary to the above Regulation, the Account Officer in

charge of lodgements delayed in lodging cash received for a period

ranging between six and seven months during the period under

review before lodging them at the bank. As at 19 February 2018 an

amount of GH¢9,941.00 being cash received had been delayed for

six months and remained unpaid to bank. Details are shown in table

167.

Table 167: Delay in Lodgement of Revenue

Date

Receipt No.

Amount

GH¢

Bank

Date

Amount Banked

GH¢

Diff.

GH¢

14/02/2017 0975873 120.00

05/03/2017 0975885 – 0975886 370.00

07/04/2017 0975889 – 0975891 120.00

16/05/2017 0975893 – 0975701 1,752.00

05/06/2017 0975705 120.00

20/06/2017 0975708 – 0975711 420.00

27/06/2017 0975716 – 0975712 688.00

24/07/2017 0975723 – 0945949 18,837.00 27/07/17 14,250.00 4,587.00

24/08/2017 0975951 – 0975956 326.00

11/09/2017 0975957 100.00

04/10/2017 0975967-0975973 898.00

23/11/2017 0975976 120.00

9/2/2018 0975993 240.00

19/2/2018 0975994 80.00

Total 24,191.00 14,250.00 9,941.00

1486. This was as a result of lack of internal checks and effective

supervision by Management to ensure that the Account Officer

complied with the FAR.

1487. The irregularity could result in loss of revenue and could also

lead to using current moneys collected to account for an already

existing cash shortage.



1488. We recommended that all revenues collected should be paid

promptly to the bank in accordance with the law. Management

should also improve on its supervisory role to prevent any revenue

loss.

1489. Management accepted our observation for compliance

Imprest Not Accounted for - GH¢4,700.00 1490. Regulation 289(I & 2) of the Financial Administration

Regulations FAR 2004 states that Imprest shall be retired at the

close of a financial year and any imprest not so retired shall be

adjusted to a personal advance account in the name of the imprest

holder. (2) Failure to retire an imprest by the due date, unless

occasioned by the death or incapacity of the imprest holder is a

breach of discipline as defined in regulation 8(1).

1491. Our review of records disclosed that a total amount of

GH¢4,700.00 given to two GSA Regional Branches, in Accra and

Tamale, to undertake various activities during the period under

review was not accounted for. Details are shown in table 168.

Table 168: Branch Imprest Unaccounted For

Date Description Payee PV No. Chq. No. Gross

Amt GH¢

02/08/2018 Payment as imprest to Tamale branch to enable branch members attend the 16th Biennial workshop in Kumasi

Lateef Oseni

N-5155 696316 1,700.00

27/11/2018 Payment of branch Imprest to Accra Branch of GSA to support the ongoing Antibiotic Resistance week celebration

GSA-Accra Branch

N-5019 696380 3,000.00

Total 4,700.00



1492. We attributed the above irregularity to control weakness in the

payment procedures in the Association.

1493. Consequently, we could not certify whether the amounts

advanced to the Regions involved were used for the purpose for

which they were given.

1494. We recommended to Management to ensure that, the payees

produce receipts and the necessary documents to retire the imprest

given to them or the amounts be adjusted to personal advance

accounts in their names.

1495. Management responded that returns on imprests advanced

to branches were being pursued. The officers have promised

accounting for the monies without further delay.

UNIVERSITY FOR DEVELOPMENT STUDIES

Introduction

1496. This report relates to the audited accounts of the University

for Development Studies (UDS) for the year ended 31 December

2017.

Operational results

1497. The University ended the year with a surplus of

GH¢11,172,571 as against a profit of GH¢12,283,544 recorded in

2016. This represents a 9.0% decrease over the previous year’s

amount. The summary of the University’s performance for the period

under review is shown table 169.

Table 169: Income and Expenditure Statement for 2017

Income 2017

GH¢

2016

GH¢

%

Change

Compensation of Employees 89,823,899 75,121,711 19.6

Goods Service 4,464,280 3,895,993 14.6

GET fund 1,427,373 1,271,705 12.2



Projects and Research Grant

3,048,155 650,137 368.8

User fees and other student 34,507,915 26,987,994 27.9

Interest Income 377,927 697,408 (45.8)

Other Income 4,899,127 9,386,366 (47.8)

Total Income 138,548,676 118,011,314 17.4

Expenditure



Finance Cost 389,038 1,081,272 (64.0)

Projects and Research 1,165,392 165,974 602.2


Surplus/(Deficit) 11,172,571 12,283,544 (9.0)

1498. Total Income registered an increase of 17.4% from

GH¢118,011,314 in 2016 to GH¢138,548,676 in 2017.

Compensation of Employee, Projects and Research Grant, and User

fees accounted for the increase.

1499. Total Expenditure also went up by 20.5% from

GH¢105,727,770 in 2016 to GH¢127,376,105 in 2017. An increase

of 25.6% in Employee compensation was the main reason for the

increase as it increased from GH¢76,787,104 in 2016 to

GH¢96,480,031 in 2017. Financial position

1500. Presented in table 170 is the financial position as at 31

December 2017.

Table 170: Statement of Financial Position as at 31 December, 2017

2017 GH¢

2016 GH¢

% Change


Current Assets 31,912,351 22,390,571 42.5

Non-Current Liabilities 7,936,638 9,735,525 (18.5)


Net Asset 125,687,712 114,961,657 9.3




1501. Non-Current Assets increased from GH¢97,082,842 in 2016

to GH¢100,419,292 in 2017. The increment resulted from a 3.8%

rise in Property, Plant and Equipment from GH¢88,273,500 in 2016

to GH¢91,609,950 in 2017.

1502. Current Asset went up by 42.5% in 2017 from

GH¢22,390,571 in 2016 to GH¢31,912,351 in 2017. The rise was as

a result of a 74.9% increase in Bank and Cash Balances from

GH¢7,560,166 in 2016 to GH¢13,221,491 in 2017.

1503. Current Liabilities also increased by 47.3% from

GH¢4,511,756 in 2016 to GH¢6,643,931 in 2017. The rise was due

to a 207.7% increase in Accounts Payable from GH¢3,583,858 in

2016 to GH¢6,629,139 in 2017.

1504. The liquidity position of the University as measured by

current ratio went down to 4.8:1 in 2017 as against 5.0:1 in 2016.

In spite of the drop, the University will be able to meet its short-term

debts as and when they fall due.

MANAGEMENT ISSUES

Unearned Salaries-GH¢107,725.83

1505. Regulation 297 (1) of the Financial Administration

Regulations,2004 (LI 1802) states “A head of department shall cause

the immediate stoppage of payment of salary to a public servant

when that public servant has; (a) been absent from duty without


administrative regulations of the establishment; (b) been absent

from duty on leave without pay; (c) been convicted of an offence

involving theft or fraud, or a sentence of imprisonment; (d) resigned;

(e) retired; or (f) died”



1506. We however noted during our audit that, the following

staffs were paid salaries and allowances that were not due them.



Name Staff ID Condition Period of unearned salary

Amount GH¢

Dr. Issahaku

Mustapha 0190 Deceased July, August 2017 20,559.86

Mr. Iddi Braimah 2537 Deceased

0ctober 2016-

March 2017 5,921.55

Mr. Mustapha

Muhammed 2537

Staff not at

post

November 2016-

January 2017 3,845.79

Mr. Adakum Abova 0253

Staff not at

post Sep-17 730.73

Mr. Eric Yaw Naminse 1030

Staff not at post

September 2016- March 2017 38,949.12

Mr. Thomas

Winsum Anabah 05.632

Staff not at

post June-July 2017 18,550.46

Dr. Barnabas B.

Naa Gandau

Staff on

Secondment

January-

December 2017 19,168.32

TOTAL

107,725.83

1507. This was as a result of delays in deleting names of

separated staff from the payroll.

1508. These unearned salaries paid to the deceased person could

be used in running the affairs of the University.

1509. We recommended to Management to be swift in instructing

the Registrar’s Office/Human Resource Department to notify the

Payroll Department whenever there is notice of death, retirement,

secondment and resignation of a staff for immediate action. We

further advised that monies paid to these staff should be

recovered immediately.



1510. Management responded that they did not receive prompt

notification about the death of these staff. They have resolved to

recover these unearned salaries.

Failure to recover advances from Staff-GH¢199,973.79

1511. Regulation 113 (1) of Financial Administration

Regulations, 2004 states that, Recoveries fr om official salaries

shall commence fr om th e salary of the next complete month after

the month in which the advance was made.Sub regulation (2)

further state that a head of department shall ensure that

deductions made from salaries are paid directly into the

Consolidated Fund unless otherwise stated in the agreement

covering the advance.

1512. We noted during the audit that a total of GH¢199,973.79

made up of salary, vehicle loan and rent advances amounting to

GH¢104,013.20 were paid to staff but no deductions have been

made as at the time of audit. Also, rent deductions amounting

to GH¢95,960.59 from staff residing in the University’s

bungalows were not made or charged against their salaries as

at the time of audit.

1513. Failure to notify the Payroll Department for advances paid

to these staff by the finance department accounted for these

anomalies.

1514. There is a risk of the Loan Committee unable to approve

and grant new loans as funds may not be available to support

that course.

1515. We recommended to Management to ensure that the list

of staff that has been given salary advances should be

crosschecked with the Payroll Department to confirm



deductions are made on time. In addition, unearned rent

allowances should be recovered from every staff involved.

1516. Management has begun deductions in 2018, mainly at

the instance of Audit.

Quotations from only two suppliers

1517. Section 20(1) of the Public Procurement (Amendment) Act

2016, Act 914, states “the procurement entity shall request

quotations from as many suppliers or contractors as practicable,

but shall compare quotation from at least three different

sources.”

1518. On the Contrary, the University in procuring its goods and

services amounting to GH¢167,704.71 did not go through the

right procuring processes. They received quotations from less

than three suppliers for comparison.

1519. This is a breach of the Procurement Act and failure to

adhere to this Act by Management of the University should not

be encouraged. The University may not also obtain value for

money in these transactions.

1520. We recommended to Management to ensure Procurement

processes as stated in the Act are adhered to strictly.

GHANA INSTITUTE OF MANAGEMENT AND PUBLIC

ADMINISTRATION (GIMPA)

Introduction

1521. This report covers the audited accounts of the Ghana

Institute of Management and Public Administration for the year

ended 31 December 2017.



Operational results

1522. The Authority recorded a surplus of GH¢3,206,211 in 2017,

thus registering a 33.4% decrease over the 2016 amount of

GH¢4,814,310. The operations for the period under review is

provided in table 172.

Table172: Statement of Comprehensive Income for the year ended 31

December 2017

Income 2017 GH¢

2016 GH¢

% Change

Business School 25,847,299 25,667,997 0.7

Other Schools 22,318,134 19,183,612 16.3

Other Sources 21,005,562 18,540,365 13.3

Total Income 69,170,995 63,391,974 9.1

Personnel Emoluments

32,728,136 27,250,841 20.1

Operating Expenditure

10,501,422 9,953,062 5.5


18,789,806 17,978,487 4.5

Travel and Transport 1,999,844 2,055,777 (2.7)

Repairs and Maintenance

1,945,576 1,339,496 45.2


Excess income over Eexpenditure 3,206,211 4,814,311 (33.4)

1523. Total Income increased by 9.1% from the 2016 amount of

GH¢63,391,974 to GH¢69,170,995 in 2017. The increase was

largely due to a GH¢ 16.3% and 13.3% increases in other schools’

income and other source income respectively.

1524. Total Expenditure increased by GH¢7,387,120 or 12.6% from


was mainly due to a 20.1% increase in Personnel Emolument from

GH¢27,250,841 in 2016 to GH¢32,728,136 in 2017.



Financial position

1525. Presented in table 173 is the financial position as at 31

December 2017.


2017 GH¢

2016 GH¢

% Change


Current Assets 17,071,789 15,353,636 11.2


Current Ratio 1.5 :1 2.2 :1


GH¢41,641,334 in 2016 to GH¢48,003,310 in 2017.The increase

was due to increases in property, plant and equipment, capital work

in progress and deposits.

1527. Current Assets rose by 11.2% to GH¢17,071,789 in 2017

from GH¢15,353,636 in 2016. This comprise inventory, receivables

and prepayment and cash and bank balances. The increase was

mainly due to GH¢72,832,565 or 98.4% increase in receivables and

prepayment.


amount of GH¢6,973,264 to GH¢11,493,965 in 2017. This was due

to a 55% or 3,835,341 increase in accounts payable and accruals.

Current liabilities comprise account payables, accruals and bank

overdraft.

1529. The liquidity position as measured by current ratio decreased

from 2.2:1 in 2016 to 1.5:1 in 2017, this indicates that the company

cannot reasonably meet its short-term obligations when they fall due

when compared with the standard benchmark of 2:1 current ratio.



MANAGEMENT ISSUES

Weaknesses in Bank Reconciliation Statement

1530. Regulation 2(g) of the Financial Administration Regulations

2004 requires the Head of government department to manage and

reconcile the bank accounts authorised by the Controller and

Accountant General.

1531. We noted that the bank reconciliation statements had not

been prepared for some months on four of the bank accounts.

Details indicated in table 174.

Table 174: Weaknesses in Bank Reconciliation Statement

Name of Bank Branch Account Number

Unibank Main Kokomlemle 0510110559613

Unibank Dollar Kokomlemle 0320210559617

Zenith Bank Achimota 6011804357

UBA (Forex) East Legon 1215080702213

1532. We also noted five bank accounts without bank reconciliation

statements. These banks were included in the financial statements. Details

outlined in table 175.

Details given in table 175

Bank Account No. Balance

Merchant Bank 51360 Nil

UBA 51320 Nil

Zenith 51280 Nil

Melban Investment Holding 51190 GH¢89,451.16

Ghana Commercial Bank 51130 Nil

1533. Errors or fraud may go unnoticed if these bank accounts are

not reconciled.

1534. We recommended that Management should ensure all bank

accounts balances are reconciled on a monthly basis. The list of

banks should be regularly updated to keep track of all the Institute’s

accounts.



Unavailability of Condition of Service

1535. Condition of service/employment are conditions that an

employer and employee agree upon for a Job. These include the

respective responsibilities of the employer and the employee’s job

responsibilities, remuneration, vacation, sick days, health

insurance package, retirement plans etc.

1536. Our audit disclosed that the appointment of Prof Philip Ebow

Bondzi-Simpson and Mr Julius Atikpui had been confirmed as the

Rector and the Secretary respectively of the Institute by letters dated

24 July 2017. We could not obtain their condition of service to

review.

1537. We further noted that Professor Philip Bondzi-Simpson, was

paid rent allowance of GH¢57,290.70 in lieu of accommodation.

Management decision to pay Mr Philip Bondzi-Simpson the rent

allowance have not been ratified by the Council. Details contained

in Table 176.

Table 176: Unjustified payment of rent

Date Cheque No GH¢

7th April 2017 021845 18,824.10

7th July 2017 022974 18,824.10

16th Oct 2017 026660 19,642.50

Total 57,290.70

The Rector and the Secretary were paid advances on salaries and

these were termed as allowances as their condition of service had

not been communicated.

1538. It is difficult to ascertain whether the right amount has been

paid in the absence of condition of service. This may lead to

overpayment of allowances.



1539. We recommended that the Council should take steps to

ensure that conditions of service for all categories of staff are

finalised before appointments are made. Also, a reconciliation

should be carried out between amount paid them and agreed upon

entitlements so that the differences can be settled.

1540. No response has been received from management.

Non-Recovery of Sponsorship cost incurred -GH¢327,800.24

1541. According to the Condition of Service of Senior Members

(Effective Date: August 2011), study leave of absence may be granted

to a senior member who has served for a minimum of three years for

such an assignment and shall be approved by Management.

1542. It was noted that Mr. Dominic Npoanlari Dagbanja, a member

of staff was sponsored by the Institute to study Law in Australia. He

was to have completed his course of study in 2016. However, he has

still not reported to the Institute at the time of the audit as of August

2018. A total amount of GH¢327,800.24 have been incurred on him

by the Institute. Our request for a list of members of staff who have

not returned to post after completion of their respective courses of

study was not provided to us.

1543. The Institute did not receive any value for the sponsorship

expenses incurred on Mr. Dominic Npoanlari Dagbanja to undertake

a course in Law in Australia.

1544. The GH¢327,800.24 spent on Mr. Dominic Npoanlari

Dagbanja should be recovered from him or his guarantors in the

event that the Institute cannot recover it from him; also members of

staff who have completed their courses of study must report to the

Institute to serve their bond period or pay the amount expended on

them with interest.



Procurement Breaches on Infilling – Lecture Hall Project

GH¢3Million

1545. Section 35(1) of the Public Procurement Act 2003, Act 663

states that a procurement entity shall procure goods, services or

works by competitive tendering except as provided in this Part.

1546. Management undertook a project to put up a Lecture Hall as

a measure to address a problem the Institute was faced with in

respect of the Accra Central Campus. The project was suspended

when defects were detected. Proper procurement procedures were

not seen to have been followed in awarding the contract as it was

only labour based. Records and documents provided were as shown

in table 177.

Table 177: Procurement Breaches on Infilling

Contractors Tallman House Limited and Bricksfields Limited

Estimated Cost GH¢668,325.87 including labour cost of GH¢178,306.12

Date of Award June 1st 2015

1547. We further noted that as at 17 May 2016 when the project

was suspended an amount of GH¢1,263,686.16 had been spent.

1548. Value for money have not been obtained for the work done and

the Institute stands to lose the amount invested in the project.

1549. We recommended that Management should implement the

recommendation made by the Committee set up to investigate the

award and execution of the contract.

Procurement Breaches on Satellite Campus Renovation-

GH¢201,649.10

1550. Section 20(1) of the Public Procurement (Amendment) Act

2016 Act 914 requires that the procuring organisation has to request



for quotation or estimates from suppliers or contractors as many as

practicable but shall compare quotation from at least three different

suppliers.

1551. Our review of the payments for the renovation works disclosed

that the Institute paid an amount of GH¢201,649.10 to two (2)

different contractors for renovating its satellite campus in Kumasi.


Table 178: Procurement Breaches

1552. There were no alternative quotations before the award of the

contract. We could not also obtain the total cost of the job, type of

work done and certificates of works.

1553. In the absence of the above, we were unable to confirm if the

award of the job met all procurement requirements. The Institute

may not have obtained value for money on the project.

1554. We recommended that Management should make available

all records relating to the renovation works done by the two

contractors, Jeal Engineering Services and Hak Systems Limited,

including all other Alternative quotations, Evaluation reports,

Awards letters and certificates of Works done and paid, for our

review.

Overpayment of Legal Fees-GH¢30,407.97

1555. Regulation 2(c) of the Financial Administration Regulations,

2004 states that the head of government department shall secure

Contrators Amount GH¢

Jeal Engineering Services 8,473.00

Hak Systems Limited 61,197.84

Hak Systems Limited 131,978.26

Total 201,649.10



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.

1556. Our review of legal cost disclosed an overpayment of

GH¢30,407.97 to Sam Okudzeto and Associates. Management could

not provide relevant documentation to cover the excess payment.

1557. The total amount of invoices received including VAT amounted

to GH¢248,953.03 compared with the payment made by the

Institute of GH¢279,361.

1558. Management did not ensure that the relevant documents and

records were attached to the payment vouchers.

1559. Funds which should have been used to enable the Institute

meet its mandate has been lost through overpayment.

1560. The total amount of GH¢30,407.97 should be recovered, and

all relevant documentations including the contract agreement be

made available for our review.

Weak controls over short term investments-GH¢5,645,438.09

1561. Regulation 2(c) of the Financial Administration Regulations,


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.


2004 states that the head of government department shall keep







1563. Our review of the investment portfolio showed that the

Institution held the following fixed deposit as at December 31 2017.


Table 179: Weak controls over short term investments

Institution Amount GH¢

Certificate

Data Bank 301,369.96 Available

Apex Capital 1,649,620.96 Unavailable

NDK Financial Service 476,041.00 Available

Gold Coast Securities 689,901.13 Available

Capstones Capital 1,476,349.04 Available

Ideal Finance 1,052,156.00 Available

Total 5,645,438.09

1564. We did not see Council approvals and evaluation done for the

investments made in 2017 before choosing the institutions to invest

in. We were unable to confirm the amount on the Apex Capital

Investments of GH¢1,649,620.96 since the certificate was not made

available for our review.

1565. The Institute may lose these investments since due diligence

was not carried out as well as obtaining the appropriate

authorisation.

1566. Management should seek Council approval by way of

ratification if no approval was sought for before the deposits were

purchased. Certificate and statements on the Apex Capital

Investments should be obtained for our review.



Absence of Agreement between GIMPA and Ghana Prisons

Service

Memorandum of Understanding (MOU) was signed between GIMPA

and Ghana Prisons Service. Section 9 of the MOU, stated among

other things as follows;

a) that the MOU shall not be deemed to be a joint venture or

partnership,

b) that the MOU did not constitute an agreement, offer or

presentation that a contract would be awarded, and

c) that the MOU did not create a binding contract between the two

parties.

1567. Contrary to the above there was no agreement between

Ghana Prison Service and GIMPA. An amount of GH¢200,000.00

was seen to have been received by GIMPA from Ghana Prison Service

for a database project for the Ghana Prisons Service. The amount

came from an external financier (UniBank) for the project. This

amount has been treated as a Capital Grant in the financial

statement. This amount was later transferred to the Project Account

held with UniBank (Account number 0510104826111).

1568. The following were not made available to us

1) Progress of work done as at the end of the year

2) The budget and projected income and Expenditure for the

Project upon which the MOU was signed,

3) The income and expenditure statement for this Project as at

the end of the year,

4) How the payments were made to GIMPA and the account it

was paid into

5) Terms and Conditions of the Foreign Financing Agency was

also not made available to us on request.

6) Expected deliverables from the parties to the Project namely

the foreign financer, Ghana Prison Service and GIMPA were

not available for our comment.



1569. This potentially puts GIMPA in a situation that could result in

a possible adjudication in the court of law.

1570. We recommended that the institute takes steps to ratify the

situation and copy of whatever Guidelines (Terms and Conditions)

from the financiers should be made available for our review. Also,

expected deliverable from the parties to the Project financier, Ghana

Prison Service and GIMPA should also be made available for our

review.

Unsupported Shipping and Other Associated Charges-

GH¢12,924


2004 states that the head of government department shall keep





1572. The Institute paid for shipping and other associated charges

to Tesco (west Africa) Agencies Limited with cheque no 022288 dated

8 May 2017 for an amount of GH¢12,924. This was in respect of

donated Law Books from International Law Book Facility (ILBF) from

UK. However, the receipt from the clearing agents were not available

for our review. Also, we could not trace the books for inspection.

1573. We could not establish the authenticity of the expenditure

incurred.

1574. We recommended that the relevant supporting documents

including receipt, way bills, shipping documents should be made

available for our review.



STUDENTS LOAN TRUST FUND

Introduction

1575. This report relates to the audited accounts of the Students

Loan Trust Fund for the year ended 31 December, 2018.

Operational Results

1576. The year under review closed with a surplus of GH¢1,356,276

representing a 54.2% decrease from GH¢2,963,584 in 2017. Details

of the performance indicators of the Fund’s operational results are



Income 2018 GH¢

2017 GH¢

% Change

Administrative Grant 4,204,236 2,567,701 63.7

Interest on Students Loan 4,489,165 2,585,934 73.6

Investment Income 1,112,127 5,291,322 (79.0)

Other Income 233,563 31,736 636.0

Total Income 10,039,091 10,476,693 (4.2)

Expenditure

Staff Cost 4,588,353 3,650,427 25.7

Travelling & Transport 978,942 775,668 26.2

Financial & Professional Charges

66,415 122,474 (45.8)

Administrative & Other

Expenses

3,152,561 2,761,068 14.2

Provision for Bad & Doubtful Debt

(103,456) 203,472 (150.8)


Surplus/(Deficit) for the Year

1,356,276 2,963,584 (54.2)

1577. Total Income decreased marginally by 4.2% from

GH¢10,476,693 in 2017 to GH¢10,039,091 in 2018. This decrease

was significantly due to a 79.0% or GH¢4,179,195 decrease in

Income from Investments.



1578. Total Expenditure increased by 15.6% from GH¢7,513,109 in

2017 to GH¢8,682,815 in 2018. This was primarily due to Staff cost

increasing from GH¢3,650,427 in 2017 to GH¢4,588,353 in 2018,

representing a 25.6% increase.

Financial position

1579. The financial position of the Fund as at 31 December, 2018



Items 2018 GH¢

2017 GH¢

% Change

Non-Current Assets

288,575,175

193,081,412 49.5

Current Assets 91,443,344

126,549,796 (27.7)

Current Liabilities

2,759,673

22,367,687 (87.7)


150,841,708

110,342,152 36.7




mainly due to a 49.7% increase in Un-matured Students Loan which

moved from GH¢192,290,643 in 2017 to GH¢287,859,147 in 2018.

1581. Current Assets decreased to GH¢91,443,344 in 2018 from

GH¢126,549,796 in 2017 by 27.7%. The major driver of the decrease

was an 88.4% decrease in Investment.

1582. Current Liabilities decreased by 87.7% from GH¢22,367,687

in 2017 to GH¢2,759,673 in 2018. The reduction was due to a 91.4%

decrease in CEO Allowance.



1583. The Fund’s liquidity position as measured by Current ratio of

33.1:1 (2017: 5.7:1) indicates that the Fund would be able to meet

its immediate financial obligations.

MANAGEMENT ISSUES

Non-Diversification of Investment

1584. The investment policy of the loan protection scheme of the

Students Loan Trust Fund states that, “Up to 50% of the value of the

fund shall be invested in long term listed capital market

instruments. Up to 40% of the value of the Fund shall be invested

in short term dated securities. A minimum of 10% of the fund fund’s

value shall be in cash on call”

1585. Contrary to be above, we noted that investible funds for the

Loan Protection Scheme were all invested in short termed deposit

with Gold Coast Fund Management.

1586. This was caused by Managements failure to adhere to the

Fund’s Investment Policy.

1587. This has resulted in an amount of GH¢2,303,789 being

locked up with Gold Coast Fund Management with no interest

accruing.

1588. We advised Management to strictly adhere to the Fund’s

Investment Policy.

1589. Management responded that they have been working on

changing the policy to reflect current trends in the money markets

and has revised the Investment Policy as recommended in the 2017

Management letter.



1590. They also decided to invest all 100% of the Funds because

there was no immediate need for holding cash on call. Management

mentioned that the poor performance of long-term capital market in

2018 did not warrant investment of 50% of the funds hence the

decision to invest in the 183-Day fixed deposit.

1591. Management in their efforts at getting access to their funds

has written to the Securities and Exchange Commission to intervene

on behalf of the Fund.

Failure to adhere to Loan Recovery Procedures

1592. Section 26(3) of the Students Loan Trust Fund Act, 2011,

states “if the borrower or the guarantor fails to repay or make

satisfactory arrangement to repay the loan in accordance with the

demand notice, the Board shall publish the name of the borrower or

the guarantor in a state-owned daily newspaper”

1593. Section 26(4) of the Act 820 further states ”The publication

shall state the amount owed and demand that the amount owed

should be paid within one month after the publication and that

failure to do so is an admission of the debt and it shall be deemed

that judgment on the amount in addition to cost of five percent of

the debt has been entered by a Circuit Court against the borrower

and guarantor”

1594. We noted that two notices of demand published in the Daily

Graphic on 31 May 2018 and 1 October 2018 failed to state the

amount owed and did not also make demand for the amount to be

paid within a month after publication as spelt out in the Students

Loan Trust Fund Act, 2011, Act 820. The Fund managers also

published names of defaulters on their website contrary to the

provisions of publication in the state-owned daily newspaper.



1595. The anomaly was due to Management’s failure to strictly

adhere to the Act. This could lead to Defaulters not being held liable

as the Act provides in Section 37(3) that “A person shall not be

convicted of an offence if that person proves that the offence was

committed without the knowledge or connivance of that person and

that due care and diligence was exercised to prevent the commission

of the offence having regard to the circumstances”. Thus, the much-

needed cash to run the Fund could be locked and used to settle legal

fees.

1596. We advised Management of the Fund to strictly adhere to the

provisions of the Act in the recovery of loans owed by borrowers.

They can also explore amending the Act to reflect current trends in

the print and electronic media by including online publications as

well.

1597. Management responded that the publication was without the

amounts due to difficulty in computing monthly interest.

Furthermore, over the years Management mentioned that a friendly

atmosphere has always encouraged defaulters to willingly pay up

loans; this resulted in 50% of defaulters paying up. Due to the huge

cost of publishing in state-owned daily papers, Management

published names of defaulters on its website.

1598. Management assured that it will proceed to execute or enforce

judgment for the recovery of loans if borrowers do not respond to the

publications by repaying their loans.

Tax Exemption

1599. Section 36 of the Students Loan Trust Fund Act, 2011, Act

820 states that, “the Trust Fund is exempt from payment of any form

of tax”.



1600. We noted that the Fund continued to pay Value Added Tax

(VAT) on goods and services procured. We further noted that

Management’s efforts at recovering moneys paid through their

writing to the Commissioner; Domestic Tax Revenue Division and

the Minister for Finance, were yet to produce any positive results.

1601. This resulted from the failure of the Tax Authorities and the

Minister of Finance to ensure that the Act is strictly adhered to.

1602. Funds that could be disbursed as loans to assist students are

needlessly used to pay taxes.

1603. Management was advised to continue to work with the

Ministry of Finance and the Ghana Revenue Authority to ensure the

implementation of the Act.

1604. Management responded that they would continue to exploit

avenues to obtain the exemption as spelt out in Act 840.

GHANA EDUCATION TRUST FUND

Introduction

1605. This report relates to the audited accounts of the Ghana

Education Trust Fund (GETFUND) for the year ended 31 December,

2018.

Operational Results

1606. During the 2018 financial year, the fund performed better as

its surplus of GH¢7,321,575 reflect a growth of 1,165% over the

surplus recorded in 2017. A summary of its performance indicators

for 2018 are shown in table 182.


Income 2018 GH¢

2017 GH¢

% Change

Revenue 16,604,000 8,300,000 100.0

Other Income 157,640 5,312 2,867.6



Total Income 16,761,640 8,305,312 101.8

Expenditure


General and Administrative Expenses 5,409,403 3,998,487 35.3

Total 9,440,065 7,726,290 22.2

Surplus 7,321,575 579,022 1,164.5

1607. The Fund’s Total Income for the period increased by 101.8%

as it moved to GH¢16,761,640 in 2018 compared to GH¢8,305,312

recorded in 2017. Allocation for operations caused the rise in

income as it increased by GH¢ 8,304,000 or 100%.

1608. Total Expenditure also increased significantly by 22.2% or

GH¢1,713,775. Generally, increment in Board remuneration,

Monitoring and Evaluation and Compensation of employees by

GH¢434,518, GH¢ 371,142 and GH¢ 302,859 accounted for the

jump.

Financial Position



Table 183 Statement of financial position as at 31 December, 2018

1610. Non-Current Assets increased marginally by 0.4% from

GH¢59,778,155 in 2017 to GH¢60,035,324 in 2018. This increase

2018

GH¢

2017

GH¢

%

Change


Current Assets 831,496,673 611,001,55

9 36.1

Current Liabilities 794,079,154 581,648,44

6 36.5

Net Asset 97,452,843 89,131,268 9.3

Current Ratio 1.0: 1 1.1: 1



resulted primarily from a 0.7% rise in Construction Work-in-

Progress.

1611. Current Assets increased significantly by GH¢220,495,114 or

36.1% from GH¢611,001,559 in 2017 to GH¢831,496,673 in 2018.

The Fund’s Cash and Bank Balances registered a high increase by

378.4% to cause the rise in current assets.

1612. The Current Liabilities also went up by 36.5% from

GH¢581,648,446 recorded in 2017 to GH¢794,079,154 in 2018. The

rise was occasioned by a 701.7% increment in long term loan, being

the release of the first tranche of US$200 Million obtained from Cal

Bank through the approval by Cabinet and Parliament to securitise

a portion of its receivables to raise a loan facility for the development

of emergency educational infrastructure.

1613. The liquidity position recorded at the end of the year as

indicated by a current ratio of 1.0:1 (2016: 1.1:1) which indicates

that the Fund would barely be able to discharge its short-term

financial obligation when they are due.

MANAGEMENT ISSUES

Outstanding legal cases

1614. The Fund has nineteen legal cases with an estimated

cumulative amount payable of GH¢3,979,284.82 and associated

legal fees of GH¢1,528,174.14. The plaintiffs believe GetFund had

acted ultra vires and that their rights had been trampled upon.

1615. If the cases above are not well managed, potential plaintiffs

could also seek redress with the courts. This could have a negative

impact on the already ailing cash flow of the Fund.

1616. Management should seek legal advice on the way forward.



1617. According to Management, majority of the cases relate to

delayed payments and once payments resume most of the cases will

be withdrawn from the courts as discussions are ongoing with most

of the contractors. Management further argued that the estimated

legal fees by the Lawyers are rather on the high and does not expect

to incur so much on legal expenses.

Failure to recover Investment with SIC-FSL GH¢10million


2004, L.I 1802, states that except as otherwise provided in any

enactment, the collection of public and trust moneys shall be the

responsibility of the head of department, who shall appoint

supervising collectors for each area where collection is required.

1619. The Fund on 24 May, 2018 invested an amount of

GH¢10,000,000 with SIC-FSL which was expected to mature on 22

November, 2018; however, upon maturity, the Fund requested for

its redemption which SIC-FSL had not paid to the Fund both the

principal and its accumulated interest of GH¢81,622.82.

1620. Management did not do due deligence before investing the

funds in SIC-FSL hence the anomaly.

1621. Recovery of the investment with its associated interest earned

may be lost in case SIC-FSL is liquidated.

1622. We recommended to Management to agree a payment plan

with the investee to safe guard the Fund from potential loss.

1623. Management accepted the recommendation and stated

further that a meeting was held with the Managing Director who

suggested that the investment be rolled over as there were cash flow

difficulties. This was accepted by Management who had written to

SIC-FSL to transfer full payment by 7 August, 2019.



Contract payments to Consar Limited -GH¢4,000,000

1624. Regulation 12 of the FAR 2004, L.I.1802 states that a person

entrusted with custodial duties for public and trust moneys shall

protect public and trust moneys against unlawful diversion from

their proper purposes and against accidental loss, and locate such

moneys so as to facilitate the efficient and economical discharge of

public financial business.

1625. We noted during our review of payments to contractors that

Consar Limited, which was awarded a contract for the construction

of a ten-storey office complex at Ridge, submitted eleven certificates;

Management paid for all except the last one. Management’s refusal

to honour the 11th certificate with a total value of GH¢5,020,338.76

was due to the fact that the contractor did not comply with the

relevant provisions of the Special Conditions in the contract and this

resulted in an over-payment of GH¢4,000,000 based on the

payments for the first ten certificates.

1626. According to Management, Consar Limited did not apply the

provisions of the CSIR-BRRI cost indices in the contract fluctuation

computation amounts. If this disagreement is not resolved timely the

delay could result in the payment of interest putting extra burden

on the liquidity position of the Fund.

1627. We urged Management to liaise with the Consultant for the

project to get the difference resolved.

1628. Management said the supervising consultants on the project,

who had certified the previous ten certificates had accepted the

mistakes in the computation of fluctuations. The Board of Trustee

would decide on the next action upon the receipt of the report of the

consultant.



UNIVERSITY OF EDUCATION, WINNEBA

Introduction

1629. This report relates to the audited accounts of the University

of Education, Winneba for the year ended 31 December 2017.

Operational results

1630. The operations of the University for the year under review

ended with a surplus of GH¢69,093,636 as compared with

GH¢48,528,114 in 2016 representing 42.4% improvement in its

performance over the previous year. Details are shown in the table

184.

Table 184: Statement of comprehensive income for the year ended

31 December 2017

Income 2017 GH¢

2016 GH¢

% Change

Government Subvention and Grants 102,178,288 99,402,576 2.8

Donor Funds 11,060 10,300 7.4

Fees and other Income 143,723,079 137,462,408 4.6

Total Income 245,912,427 236,875,284 3.8

Expenditure

Employee 112,960,487 96,504,161 17.1

Goods and Services - Non-Teaching 28,871,266 27,417,901 5.3

Goods and Services - Teaching 28,754,059 44,905,965 (36.0)

Investment Written off 6,232,979 19,519,143 (68.1)


Surplus 69,093,636 48,528,114 42.4

1631. Total Income increased by 3.8% from GH¢236,875,284 in

2016 to GH¢245,912,427 in 2017. This rise was due to a 4.6% and

a 2.8% increase in Fees and Other Income and Government

Subvention and Grants respectively.



1632. Total Expenditure decreased by 6.1% from GH¢188,347,170

in 2016 to GH¢176,818,791 in 2017. Decrease in Goods and

Services -Teaching and Investment written off accounted for the

drop. Financial Position

1633. The summarised statement of Financial Position as at 31

December 2017 is shown in table 185. Table 185: Financial Position as at 31 December 2017

Items 2017

GH¢

2016

GH¢

%

Change


Current Assets 197,650,552 130,733,077 51.2



1634. Non-Current Assets rose by 14.0% from GH¢93,655,856 in

2016 to GH¢106,799,657 in 2017 due to the acquisition of

additional assets.


2016 to GH¢197,650,552 in 2017. The increase was due to a 132.2%

and a 32.8% increase in Account Receivables and Short-Term

Investments respectively.

1636. The Current Ratio in 2017 was 18.6:1 as against 20.5:1 in

2016, indicating the ability of the University to meet its Short-term

obligation when they fall due.



MANAGEMENT ISSUES

Failure to redeem Investments with Akyempim Rural Bank

GH¢1.9Million


requires a head of department to ensure that moneys are utilised in

a manner that secures both optimum value for money and the

intention of Parliament.

1638. We however observed that the University invested a total of

GH¢1,879,960.75 with Akyempim Rural Bank which was not rolled

over nor repaid on maturity. These investments matured on 30

September, 2016 and were not paid to the University nor were they

rolled-over as at 25 September 2018. Persistent request for refunds

by the University was not heeded to by the bank. The breakdown

by campuses is shown in table 186.

Table 186: breakdown by campuses

Campus Amount

GH¢

Kumasi 1,290,093.75

Ajumako 200,000.00

Winneba 386,867.00

Total 1,876,960.75

1639. The University not having an investment policy to guide its

investment decisions caused the anomaly. The University risks

losing its funds.

1640. We recommended that every effort should be made to retrieve

all monies invested in Akyempim Rural Bank together with the

accumulated interest. Management should ensure that a

comprehensive investment policy is drawn for approval by the

Council as soon as possible.



1641. Management responded that, the University had had

longstanding working relationship with Akyempim Rural Bank until

the Bank went into liquidity challenges in 2015. As the Bank could

not repay the investments, the University took proactive steps to

ensure the security of the University’s investments with the Bank.

Upon discussions with the Bank, the University rolled over all its

investments with the bank for a period of 365 days effective 19

October, 2016. The University also asked for a representation on the

Board of the Bank which was granted.

1642. Upon the investment maturing on 19 October, 2017, the

University decided to take legal action to recover the fixed deposit

investments as well as any outstanding balances on the University’s

bank accounts with the Bank. The issue was referred to the

University’s Legal Department which has taken up the matter.

Failure to provide procurement documents-GH¢5,789,180.44

1643. Section 87 (1) of the Public Procurement Amendment Act

2016, Act 914 states “except in cases of extreme urgency, where

there will be an aggregate increase in the original amount of the

contract by more than ten percent of the original price, a

procurement entity shall inform the appropriate tender review

committee of the proposed extension, modification or variation order

with reasons”.

1644. Section 11 (2) of the Audit Service Act, 2000 (ACT 584) states

“for the purposes of subsection (1), the Auditor-General or any

person authorised or appointed for the purpose by the Auditor-

General shall have access to all books, records, returns and other

documents including documents in computerised and electronic

form relating to or relevant to those accounts”.

1645. We noted during the 2016 audit that the University awarded

various contracts for the construction and rehabilitation of



Administration Offices, Lecture Halls, Halls of residence, Staff

Bungalows, Fence walls, Security posts and Faculty Blocks over the

period.

1646. We also noted however that some of these contracts attracted

cost variations. We requested for documents approving these

variations but we were not given. The total variation from the original

contract sum of GH¢3.34million was GH¢2.45million representing

an increase of 73.4%. Management has still not produced the

documents to the variations. Details are shown in the table 187.

Table 187: Contract variations

S/N Contractor Project Contract Sum GH¢

Total Payment GH¢

Variations GH¢

Variations %

1 AEON Complex Limited

Renovation and fencing of North Campus Court

115,741.50 182,383.92 66,642.42

57.6

2 Donajos Construction

Auditorium and Examination Hall

924,468.98 1,372,093.92 447,624.94 48.4

3 Donajos Construction

Science Block South Campus Phase 1

191,271.19 357,357.90 166,086.71

86.8

4 D-Pascal Construction

Renovation of HPERS Block

178,996.95 215,202.38 36,205.43

20.2

5 AEON Complex Limited

Renovation of Bungalows at North Campus

78,419.60 95,762.42 17,342.82

22.1

6 Bendart Company

Plumbing Works- Auditorium

186,978.96 229,065.14 42,086.18

22.5

7 Kostnicia Limited

Renovation- Council Chairman’s Guest House

157,973.32 185,591.31 27,617.99

17.5

8 Kostnicia Limited

Renovation- Theatre- Central Campus

174,462.60 181,807.47 7,344.87

4.2



9 Napof Construction

Renovation Bungalow No. 43 North Campus

109,567.00 139,023.65 29,456.65

26.9

10 Nubinco Eectrical Works

Faculty

Building- North Campus

203,752.83 1,105,130.93 901,378.10

442.4

11 Ziggurat Investment

3-Storey Lecture Hall-Mampong

432,455.21 731,137.24 298,682.03

69.1

12 Micsat Limited

Erection & Completion of VC’s Lodge, North Campus

584,892.05 994,624.16 409,732.11

70.1

Total 3,338,980.19 5,789,180.44 2,450,200.25

73.4

1647. Our inability to access the documents made it difficult to

ascertain the true picture of the issues. Also, failure of an entity

seeking approval from appropriate tender review committee for

proposed extension, modification or variation may lead to

inappropriate use of the entity’s resources.

1648. We recommended that the various approval documents

should be made available to us for examination to determine the

appropriateness of the contract variation paid.

UNIVERSITY OF HEALTH AND ALLIED SCIENCES

Introduction

1649. This report is related to the audited accounts of the University

of Health and Allied Sciences for the years ended 31 December 2017

and 2018.

Operational results

1650. The year under review ended with a surplus of

GH¢13,472,861 representing an improvement of 307.4% against a



surplus of GH¢3,306,655 in 2017. A summary of the performance

of the University is shown in table 188.


Income

2018

GH¢

2017

GH¢

%

Change

Tuition Fees (IGF) 13,217,837 9,663,115 36.8

Government Grant & Subvention 37,086,905 34,053,579 8.9

Interest Income 1,046,271 313,353 233.

Other Income 17,315,206 7,809,854 121.7

Total Income 68,666,219 51,839,901 32.5

Expenses

Employee Compensation 36,506,626 33,546,194 8.8

Administrative & Gen. Expenses 12,420,452 9,157,825 35.6

Depreciation 5,567,516 4,957,321 12.3

Repairs and Maintenance 698,764 871,906 (19.9)


Surplus/(Deficit) 13,472,861 3,306,655 307.4


2017 to GH¢68,666,219 in 2018. This was due mainly to an

increment of 121.7% Other Income from GH¢7,809,854 in 2017 to

GH¢17,315,206 in 2018.

1652. Total Expenditure rose by 13.7% from GH¢48,533,246 in

2017 to GH¢55,193,358 in 2018. The movement was due to

increases in both Administration Expenses and Employee

Compensation.

Financial Position

1653. Table 187 shows the financial position of the University as at

31 December 2018.


Items 2018

GH¢

2017

GH¢

%

Change


Current Assets 25,170,210 16,897,320 49.0



Current liabilities 19,006,412 17,132,025 10.9

Non-Current liabilities 63,382,980 73,261,449 (13.5)


1654. Non-Current Assets decreased by 2.8% from GH¢88,329,330

in 2017 to GH¢85,875,644 in 2018. The drop was as a result of an

increase in depreciation charge due to transfers of completed

projects from the Work in Progress accounts during the year.


2017 to GH¢25,170,210 in 2018. The increase emanated from a rise

in Receivables and Cash and Bank balances.

1656. Current Liabilities rose by 10.9% from GH¢17,132,025 in

2017 to GH¢19,006,412 in 2018. This rise was mainly due to an

upsurge in Deferred Tuition Fees.

1657. Non-Current Liabilities decreased by 13.5% from

GH¢73,261,449 in 2017 to GH¢63,382,980 in 2018. This downward

turn of event was due to drops in Non-Monetary Grants and Other

Grants.

1658. The liquidity position of the University as measured by

current ratio of 1.3:1 (2017:1.0:1), means the University will barely


MANAGEMENT ISSUES

Payment of Salaries Despite Resignation of Staff-GH¢14,336.52


Regulations 2004 states “A head of department shall cause the

immediate stoppage of payment of salary to a public servant when

that public servant has (a) been absent from duty without leave or

reasonable cause for a period as stipulated in the administrative

regulations of the establishment; (b) been absent from duty on leave



without pay; (c) been convicted of an offence involving theft or fraud,

or a sentence of imprisonment; (d) resigned; (e) retired; or (f) died”

1660. The audit disclosed payment of salaries amounting to

GH¢14,336.52 made to two members of staff who had vacated their

positions. The details are provided in table 190.

Table 190: Payment of Salaries Despite Resignation of Staff

Name of Staff Postion Net Salary SSF Total

Rev. Emmanuel

Frimpong Lecturer 11,411.91 1,106.43 12,518.34

Moses Ahlijah Security Officer 1,609.00 209.18 1,818.18

Total 13,020.91 1,315.61 14,336.52

1661. This payment was made because the staff in question had

vacated their position without notice to Management in the form of

resignation letters.

1662. The above payment resulted in a loss of GH¢14,336.52 which

could have been used in running the operations of the University.

1663. We advised Management to take immediate action to retrieve

the funds from these persons.

1664. Management made it known that the respective persons have

been contacted to refund the amounts owed. They also informed the

audit team that they organised workshops to sensitize deans,

directors and heads of departments to educate them to take

immediate steps to report any similar vacation of posts by employees

in future.



KWAME NKRUMAH UNIVERSITY OF SCIENCE

AND TECHNOLOGY

Introduction


Kwame Nkrumah University of Sciences and Technology for the

financial year ended 31 December 2018.

Operational Results

1666. The overall financial performance of the University during the

period under review showed a surplus of GH¢88,487,348 as

compared with GH¢90,043,329 recorded in the 2017 financial year,

representing a marginal reduction of 1.7%. Table 191 provides the

details.

Table 191: The University’s performance indicators for the year under review

Income 2018 GH¢

2017 GH¢

% Change


222,072,136 220,762,015 0.6

Fees and Charges 230,379,232 185,276,220 24.3

Miscellaneous Income 54,358,378 57,280,972 (5.1)

Total Income 506,809,747 463,319,206 9.4

Expenditure

Non-Teaching Staff Cost

71,049,445 66,144,857 7.4

Direct Teaching and Research

207,439,557 186,655,969 11.1

General Education Expenses

14,838,469 7,789,360 90.5

Municipal Services 50,903,953 39,641,483 28.4

General Administration 33,221,613 39,132,760 (15.1)

Library Expenses 3,748,702 3,451,771 8.6

Production Cost 10,619,183 9,428,991 12.6

Depreciation 25,724,551 20,716,272 24.2

Miscellaneous 776,926 314,413 147.1




Excess of Income Over Expenditure

88,487,348 90,043,329 (1.7)

1667. Total income for the year 2018 went up by GH¢43,490,541

from GH¢463,319,206 in 2017 to GH¢506,809,747 in 2018,

representing 9.4% growth. The increase was mainly as a result of

24.3% increase in Fees and Charges over the 2017 amount.

1668. Total expenditure increased by 12.1% from GH¢373,275,877

in 2017 to GH¢418,322,399 in 2018. The increase in expenditure

was due to the increases in all the expenditure components over the

2017 figures, with the exception of General Administration which

decreased by 15.1%.

Financial Position

1669. The University’s financial position as at 31 December 2018 is



Items

2018 GH¢

2017 GH¢

% Change

Non-current Asset 369,101,863 267,810,655 37.8

Current Assets 279,061,377 296,669,205 (5.9)

Current Liability 92,797,628 85,040,994 9.1

Net Assets 555,365,613 467,702,705 18.7


1670. Non-current assets increased by 37.8% from


largely as a result of additions to property, plant and equipment to

the tune of GH¢101,119,500, from 267,763,630 in 2017 to

386,883,130 in 2018, indicating 37.8% rise.

1671. Current assets decreased from GH¢296,669,205 in 2017 to

GH¢279,061,377 in 2018, a reduction of 5.9%. The decrease was



mainly due to the redemption of part of the short-term investments

to the tune of 25.7%.

1672. Current liabilities increased by 9.1% from GH¢85,040,994 in

2017 to GH¢92,797,628 in 2018. The upward movement was caused

by increases in accounts payables by 163.2% from GH¢19,513,725

in 2017 to GH¢51,361,604 in 2018.

1673. The University’s liquidity ratio of 3:1, (2017: 3.5:1) is

favourable which indicates that the Institution has the ability to


MANAGEMENT ISSUES

Main Administration

Properties without Title Deeds


921) stipulates that A Principal Spending Officer of a covered entity,





1675. We noted from the initial information obtained from the legal

department that, the University has registered only six out of its 20

landed properties, and of the remaining 14, plotting of one was

ongoing. The registered properties were; the six Nhyiaeso plots, and

the property which is being plotted is plot 37, Okyere flat at

Ayeduase. We further noted from Management’s response that the

registered properties included the following;

1. KNUST Main Campus - Land Title Certificate

2. Plot No 53, Asylum Down - Deed of Assignment-

Plotted

3. Plot 37, Ayeduase - Deed of Assignment-

Plotted



4. Kansaworado-Takoradi - Lease-Plotted

5. Kwabenya-Accra - Deed of Assignment/

Plotting ongoing

6. Watherston Res. Area-Tamale - Lease/ Plotting ongoing

7. No. 53 Ringway Estates - Renewal of Sublease

ongoing at

State Housing Company.

1676. The Legal officer explained that, measures have been

instituted by her outfit, the Welfare Division and Estate department

to ensure that the registration and other necessary measures to

perfect KNUST proprietary interest in all the acquired

lands/immovable properties.

1677. Even though, we attest to the long period of time for the

registration and acquisition of the Title deeds, we are also,

concerned about any unforeseen litigation that could occur.

1678. We attributed the delay in the acquisition of the Title deeds

to Management’s inability to commence the process early enough.

1679. The University stands a risk of losing any of the properties in

the event of litigation regarding ownership of the unsecured

properties.

1680. We recommended to the Legal and Estate Departments, and

Welfare Division to fasttrack the process of registering the remaining

properties of the University.

1681. Management responded that measures have been instituted

to ensure the perfection of title of the other properties by the end of

first quarter of 2020.



Private Developers on the University lands without agreement

1682. Regulation 2(d) of the Financial Administration Regulations

2004 (L.I. 1802) states “The head of government department shall




Accountant-General”.

1683. Article 4.7 (1)(vi) of the University’s administrative manual

also requires the Legal Officer to prepare for and on behalf of the

University conveyance including contract agreements,

memorandum of understanding etc. Under the circumstances, the

Estate Officer liaises with the Legal Officer to ensure effective

management of the University’s assets.

1684. We requested for formal agreements signed between the

University and the private hostel developers and other business

entities that have been offered spaces on the University’s lands for

commercial activities. This was to enable us determine rent

receivables from tenants. However, only one (Royal

Basin/Banivallas) out of seven expected agreements for hostel

developers was made available. Agreements for three out of four oil

companies operating on the University’s land were also, made

available. We again, came across a rent receivable schedule for 27

other business entities operating commercially on campus, without

their tenancy agreements to confirm the accuracy of the rent

schedule. Details of the private developers and business entities

(apart from the rent Schedule) are provided in table 193.

Table 193: Private Developers and Business Entities

No. Name Remarks

1 Credit Union Hostel Agreement not presented

2 Georgia Hostel Agreement not presented

3 Crystal Rose Hostel Agreement not presented



4 Sancity Hostel Agreement not presented

5 Ghana Hostel (SSNIT) Agreement not presented

6 Anglican Hostel Agreement not presented

7 Total (Barima) oil Company

Agreement not presented

8 Royal Basin/Banivallas (Hostel Developer)

Agreement presented, renewed up to 31/10/2014. It was to be renewed upwards in every 5 years but no evidence of the upward adjustment

9 Union Oil Build, Operate and Transfer Agreement

10 Shell Ghana Ltd Agreement presented, renewed up to 31/8/2014. It was to be renewed upwards in every 5 years but no evidence of the upward adjustment

11 Goil Oil Company Agreement presented, renewed up to 31/5/2014. It was to be renewed upwards in every 5 years but no evidence of the upward adjustment

12 HFC Bank(referable to Jubliee Mall)

Agreement signed on 1/11/16 but no evidence of rent payment during the period.

1685. The Legal department’s inability to ensure timely signing of

the tenancy agreements coupled with Management’s indifferent

posture in ensuring that rent due were collected, accounted for the

lapse.

1686. We were unable to determine any rent receivable from these

private business entities in the absence of unexpired agreement

between the entities and the University. We again, did not sight any

evidence of payment of rent by them during the period.

1687. The situation could lead to avoidance of payment of rent by

the Hostel developers and other business entities. Additionally, in

the event that the tenants act contrary to the interest of the

University, the Institution cannot hold any claim against them, but

rather expose the issues to unnecessary litigation.



1688. We recommended to Management to sign formal agreements

with all private hostel developers and other business entities that

have been offered spaces on the University’s lands within six months

after receipt of our management letter; expedite action on the

renewal of the expired agreements and also ensure that any rent

receivables have been recovered.

1689. Management responded that the Auditors findings are noted.

Regarding Tenancy Agreements with commercial entities operating

on University Land, the Tenancy Agreement is for a period of two

years. Same have elapsed and are in the process of being renewed.

Measures are in place already to ensure the renewals of such

tenancy agreements when same elapses.

1690. We advised Management to expedite action on the renewal of

the expired agreements and ensure that any rent receivables are

duly recovered.

Non-assessment of dividend due


2004 (L.I.1802) states “The head of government department shall





1692. We noted that the University signed agreement with Peak

Investment Capital (PIC) on 1 July, 2015 to produce fresh yoghurt.

The paid-up capital of PIC was to provide GH¢650,000.00 for factory

and store upgrade working capital and new packaging. PIC was to

provide documentary evidence to KNUST of the securing and

availability of the GH¢650,000.00, open an account in the joint

name of PIC and KNUST in a bank in Ghana and deposit therein the

portion of the money which shall be required locally by KNUST

Yoghurt Company Limited.



1693. The University’s Equity Share consist of the following;

(a) KNUST Yoghurt Production Unit (the processing room, equipment

and storage facilities); (b) The University log, including its goodwill

in yoghurt production; (c) Old and new sales points at KNUST main

campus (including 2 flagship locations in the commercial (area); (d)

KNUST Yoghurt Company Limited (KYCL) shall at the appropriate

time apply to KNUST for land for expansion for farming. PIC was to

hold 55% shares, and KNUST 45% shares.

1694. Article 12.2 of the agreement requires the parties to deliver

quarterly financial statements which shall include a profit and loss

statement and a balance sheet not later than the 15th working day

after the end of each quarter.

1695. We however, noted that the provision in Article 12.2 was not

being observed by Management of the Venture to be able to

determine the dividend due to each party. We were also, not provided

with an account in the joint name of PIC and KNUST.

1696. The Manager of the Venture explained that KNUST

Management has not been able to value its assets provided to the

Company to form the basis for the preparation of the accounts. He

added that letters have been written to KNUST Management,

however, no action has been taken by KNUST Management.

1697. Management of KNUST’s inability to pay attention to the

Venture by valuing the assets provided, and ensuring the preparation

of the accounts, accounted for the lapse.

1698. Though Management of the Company had made payments in

the sum of GH¢150,000 (9/3/17: GH¢100,000 and 22/5/18:

GH¢50,000), to the University, we could not confirm that the

amounts paid represented the dividends due the University during

the period.



1699. We could not determine the dividend due to each party and

therefore recommended to Management to invoke the sanctions

prescribed in the contract agreement.

1700. Management said that the University has received its

dividend due. The assets provided has also been valued, and the

Accounts of the Joint Venture prepared.

1701. We are yet to receive documents to confirm Management’s

assertion.

Overdue debt-GH¢418,854.32


2004 (L.I. 1802) states “The head of government department shall




Accountant-General”. Regulation 17(a) of the Financial

Administration Regulations (FAR) 2004, L.I. 1802 states “A head of

department shall ensure that all Non-Tax Revenue are efficiently

collected”.

1703. Our review of Rent receivables at the main finance office

disclosed that Ghana Post was indebted to the University to the tune

of GH¢98,688.00 since 2017. A follow up to identify the reason for

the non-payment of the debt disclosed that, Ghana Post was

contesting for waiver of portions of the amount. However,

Management is yet to decide on the request.

1704. In another development, a review of accounts receivables of

the Engineering Guest house showed that 66 Colleges, faculties,

Departments and individuals owed the Guest House an amount of

GH¢ 320,166.32 as at December, 2018.



1705. We further noted that, 63.20% of the debt related to

expenditures incurred on the security officers who were engaged to

maintain law and order during the students’ demonstration within

the year under review, which was to be refunded by the main finance

office of the University. However, as at the time of the audit in July

2019, the main finance office had not reimbursed the Guest House.

1706. We provide in table 194 the outstanding for the financial years

ended 2016, 2017 and 2018.

Table 194: Accounts Receivable – Engineering Guest House

No DEPARTMENT

2018

GH¢

2017

GH¢

2016

GH¢

TOTAL

GH¢

1 AGRIC ECONOMICS 3,044.00 - - 3,044.00

2 AGRIC ENGINEERING 1,386.00 - - 1,386.00

3

CENTRE FOR BUS.

DEV'T 2,837.00 - - 2,837.00

4 PROVOST- COE 1,768.00 16,414.00 568.00 18,750.00

5 LAWYER KODUAH - - 933.00 933.00

6

RELIGIOUS

STUDIES - 110.00 - 110.00

7

CHEMICAL

ENGINEERING 26.00 - - 26.00

8 FRNR - 175.00 - 175.00

9 FACULTY OF AGRIC - 284.00 - 284.00

10

PUBLISHING

STUDIES - 1,200.00 - 1,200.00

11 COMMUNICATION DESIGN - 618.00 - 618.00

12

CROP SCIENCE

DEPT 489.00 290.00 - 779.00

13

GEOLOGICAL

ENGINEERING 2,860.00 - - 2,860.00

14 NIMS-GHANA 70.00 - - 70.00

15

GHANA SCHOOL OF

LAW 4,597.00 - - 4,597.00

16

FAC. OF MECH. &

CHEMICAL 182.00 - - 182.00

17

FAC. OF GEO &

CIVIL ENG 300.00

- 300.00



18

ELETRICAL

ENGINEERING DP 277.00 - - 277.00

19

COMPUTER

ENGINEERING 453.00 - - 453.00

20

FOOD SCIENCE

DEPT 1,015.00 - - 1,015.00

21 IPO 5,900.50 - - 5,900.50

22

MODERN

LANGUAGES 600.00 - - 600.00

23 WILDLIFE DEPT 803.00 - - 803.00

24 GARDEN CITY UNIVERSITY 2,128.00 - - 2,128.00

25

LIVING WATERS A/G

CHRCH 1,993.00 838.00 - 2,831.00

26 COHSS 674.00 - - 674.00

27

DEVELOPMENT

OFFICE 1,445.00 - - 1,445.00

28 ECONOMICS DEPT 640.00 - - 640.00

29 KNUST HOSPITAL 636.00 - - 636.00

30 ENERGY CENTRE 913.00 - - 913.00

31

FAC. OF ALLIED

HEALTH 204.00 - - 204.00

32 FACULTY OF LAW 1,443.00 - - 1,443.00

33 PHYSICAL & COM. SCIENCE 1,303.00 - - 1,303.00

34

FINANCE OFFICE-

KNUST 885.50 - - 885.50

35 GCB 682.00 - - 682.00

36

GEOMATIC

ENGINEERING 928.00 - - 928.00

37 GESA 13,166.00 - - 13,166.00

38

GRADUATE

STUDIES 296.00 - - 296.00

39 LAND ECONOMY 177.00 - - 177.00

40 IDL 5,506.00 - - 5,506.00

41

MECHANICAL

ENGINEERING 4,078.00 660.00 - 4,738.00

42

OTHER

RECEIVABLES 202,344.50 - - 202,344.50

43 PHOTOCOPY UNIT 225.00 - - 225.00

44

PHYSICS

DEPARTMENT 945.00 - - 945.00

45 PREMIUM FOODS 550.00 - - 550.00



46 CABE 458.00 - - 458.00

47 PUBLIC HEALTH 1,706.00 - - 1,706.00

48

REGISTRAR'S

OFFICE 807.00 - - 807.00

49 RTEP 699.00 - - 699.00

50 RWESCK 8,791.00 - - 8,791.00

51 SMS 250.00 - - 250.00

52 SPORT SCIENCE 571.00 - - 571.00

53 TCC 465.00 - - 465.00

54 THEORITICAL 325.00 - - 325.00

55 UITS 569.00 - - 569.00

56 UNITY HALL 380.00 - - 380.00

57 WASCAL CCLU 772.00 - - 772.00

58 ZEGHA ENERGY 1,797.82 - - 1,797.82

59 KSB 4,312.00 - - 4,312.00

60

CIVIL ENGINEERING

DEPT 230.00 780.00 - 1,010.00

61

DEAN OF

STUDENTS 60.00 - - 60.00

62

COMP & ELECTRICAL

ENG. 3,840.00 - - 3,840.00

63

MATERIAL

ENGINEERING 1,036.00 - - 1,036.00

64

PAINTING &

SCULPTURE 1,397.00 - - 1,397.00

65

PETROLEUM

ENGINEERING 910.00 - - 910.00

66

HISTROY & POLITICAL

STDS - 151.00 - 151.00

Total 297,145.32 21,520.00 1,501.00 320,166.32

1707. Management’s inability to decide on the waiver and lack of

debt collection policy resulted in the lapse.

1708. We could not certify that the rent receivable in the Financial

Statements is recoverable. Again, the untimely recovery of the



Engineering Guest House debts had led to uncertainty in their

realisation, which has negatively affected the liquidity position.

1709. We urged Management of the University to decide on the

request by Ghana Post as early as possible and ensure that all rent

receivables are timely collected to improve the cash flow of the

University. Management of the Engineering Guest House should

also ensure timely recovery of the debt. Additionally, a policy should

be instituted to include debt collection mechanism that would

ensure effective management of the Guest house and efficient

collection of non-tax revenue.

1710. Management responded that an amount of GH¢334,214.58

has been collected including additional invoices raised in 2019. A

credit policy is being drafted to manage receivables at the Guest

Houses.

1711. Out of the Engineering Guest house debt of GH¢320,166.32

reported (excluding 2019 transactions) a total of GH¢299,353.08

had been recovered, leaving an outstanding old debt of

GH¢20,813.24. We advise Management of the Guest House to

pursue further for the recovery of the outstanding debt including the

Ghana Post debt of GH¢98,688.00. See details in table 195.

Table 195: Accounts Receivable – Engineering Guest House

No. DEPARTMENT 2018

GH¢

2017

GH¢

2016

GH¢

TOTAL

GH¢

AMT. PAID

GH¢

AMT. NOT

PAID

GH¢

1 AGRIC ECONOMICS 3,044.00 - - 3,044.00 2,131.00 913.00

2 AGRIC ENGINEERING 1,386.00 - - 1,386.00 1,386.00 -

3 CABE 458.00 - - 458.00 458.00 -

4 CENTRE FOR BUS. DEV'T 2,837.00 - - 2,837.00 2,837.00 -

5 CHEMICAL ENGINEERING 26.00 - - 26.00 - 26.00

6 CIVIL ENGINEERING DEPT 230.00 780.00 - 1,010.00 409.00 601.00



7 COHSS 674.00 - - 674.00 - 674.00

8

COMMUNICATION

DESIGN - 618.00 - 618.00 - 618.00

9

COMP & ELECTRICAL

ENG. 3,840.00 - - 3,840.00 3,840.00 -

10

COMPUTER

ENGINEERING 453.00 - - 453.00 453.00 -

11 CROP SCIENCE DEPT 489.00 290.00 - 779.00 489.00 290.00

12 DEAN OF STUDENTS 60.00 - - 60.00 - 60.00

13 DEVELOPMENT OFFICE 1,445.00 - - 1,445.00 1,005.00 440.00

14 ECONOMICS DEPT 640.00 - - 640.00 640.00 -

15

ELETRICAL ENGINEERING

DP 277.00 - - 277.00 181.00 96.00

16 ENERGY CENTRE 913.00 - - 913.00 - 913.00

17 FAC. OF ALLIED HEALTH 204.00 - - 204.00 204.00 -

18 FAC. OF GEO & CIVIL ENG 300.00 - - 300.00 300.00 -

19

FAC. OF MECH. &

CHEMICAL 182.00 - - 182.00 182.00 -

20 FACULTY OF AGRIC - 284.00 - 284.00 - 284.00

21 FACULTY OF LAW 1,443.00 - - 1,443.00 1,443.00 -

22 FINANCE OFFICE- KNUST 885.50 - - 885.50 628.00 257.50

23 FOOD SCIENCE DEPT 1,015.00 - - 1,015.00 1,015.00 -

24 FRNR - 175.00 - 175.00 - 175.00

25

GARDEN CITY

UNIVERSITY 2,128.00 - - 2,128.00 2,034.78 93.22

26 GCB 682.00 - - 682.00 475.00 207.00

27

GEOLOGICAL

ENGINEERING 2,860.00 - - 2,860.00 1,225.00 1,635.00

28

GEOMATIC

ENGINEERING 928.00 - - 928.00 928.00 -

29 GESA 13,166.00 - - 13,166.00 13,166.00 -

30 GHANA SCHOOL OF LAW 4,597.00 - - 4,597.00 4,361.00 236.00

31 GRADUATE STUDIES 296.00 - - 296.00 161.00 135.00

32

HISTROY & POLITICAL

STDS - 151.00 - 151.00 - 151.00

33 IDL 5,506.00 - - 5,506.00 5,506.00 -

34 IPO 5,900.50 - - 5,900.50 5,607.00 293.50

35 KNUST HOSPITAL 636.00 - - 636.00 558.00 78.00

36 KSB 4,312.00 - - 4,312.00 4,312.00 -



37 LAND ECONOMY 177.00 - - 177.00 - 177.00

38 LAWYER KODUAH - - 933.00 933.00 - 933.00

39

LIVING WATERS A/G

CHRCH 1,993.00 838.00 - 2,831.00 - 2,831.00

40

MATERIAL

ENGINEERING 1,036.00 - - 1,036.00 721.00 315.00

41

MECHANICAL

ENGINEERING 4,078.00 660.00 - 4,738.00 2,256.00 2,482.00

42 MODERN LANGUAGES 600.00 - - 600.00 - 600.00

43 NIMS-GHANA 70.00 - - 70.00 70.00 -

44 OTHER RECEIVABLES 202,344.50 - - 202,344.50 202,344.50 -

45 PAINTING & SCULPTURE 1,397.00 - - 1,397.00 1,397.00 -

46

PETROLEUM

ENGINEERING 910.00 - - 910.00 857.00 53.00

47 PHOTOCOPY UNIT 225.00 - - 225.00 225.00 -

48

PHYSICAL & COM.

SCIENCE 1,303.00 - - 1,303.00 1,108.00 195.00

49 PHYSICS DEPARTMENT 945.00 - - 945.00 810.00 135.00

50 PREMIUM FOODS 550.00 - - 550.00 - 550.00

51 PROVOST- COE 1,768.00 16,414.00 568.00 18,750.00 18,750.00

52 PUBLIC HEALTH 1,706.00 - - 1,706.00 1,251.00 455.00

53 PUBLISHING STUDIES - 1,200.00 - 1,200.00 - 1,200.00

54 REGISTRAR'S OFFICE 807.00 - - 807.00 807.00 -

55 RELIGIOUS STUDIES - 110.00 - 110.00 - 110.00

56 RTEP 699.00 - - 699.00 536.00 163.00

57 RWESCK 8,791.00 - - 8,791.00 7,041.00 1,750.00

58 SMS 250.00 - - 250.00 150.00 100.00

59 SPORT SCIENCE 571.00 - - 571.00 571.00 -

60 TCC 465.00 - - 465.00 363.00 102.00

61 THEORITICAL 325.00 - - 325.00 325.00 -

62 UITS 569.00 - - 569.00 569.00 -

63 UNITY HALL 380.00 - - 380.00 380.00 -

64 WASCAL CCLU 772.00 - - 772.00 772.00 -

65 WILDLIFE DEPT 803.00 - - 803.00 768.00 35.00

66 ZEGHA ENERGY 1,797.82 - - 1,797.82 1,346.80 451.02

TOTAL 297,145.32 21,520.00 1,501.00 320,166.32 299,353.08 20,813.24



Payroll

Unearned Salaries -GH¢ 106,167.58


2004 (L.I. 1802) directs a head of department to cause the immediate

stoppage of payment of salary to a public servant when that public

servant has been absent from duty without leave or reasonable

cause for a period as stipulated in the administrative regulations of

the establishment; been absent from duty on leave without pay; been

convicted of an offence involving theft or fraud, or a sentence of

imprisonment; resigned; retired; or died.

1713. Our review of the University’s payroll records noted that nine

officers left the University for various reasons. However, they

continued to earn salaries for a period ranging from one to five

months before their names were deleted from the payroll. Available

records indicated that the University later wrote to the respective

banks to stop the unearned salary of the officers.

1714. We further noted that the University had written letters to the

various banks to stop the unearned salaries of eight other former

officers (apart from the nine officers). However, the banks delayed in

stopping the salaries. These led to unearned salary of

GH¢106,167.58 for the period under review.

1715. Meanwhile, no documents were made available to show that

the banks acted on the instructions of the University by paying the

unearned salaries to the University’s salary accounts. Refer to table

196 for details.



Table 196: Unearned Salary - Late Deletion from Payroll

NAME

DESIG

NATION

DEPART

MENT

STAF

F ID

REASON FOR

SEPERATION

DATE OF

SEPERATION

MONTH OF

DELETION

PERIOD

UNEARNED

ONE

MONTH NET

SALARY

TOTAL UNEARNED

SALARY

Prah,

Benjamin Eric Kwesi (Dr.)

Senior Lecturer

Geomatic Engineering

6122868 Died 10/29/2017 Feb. 2018

Nov. 2017 - Jan. 2018

5,700.82

16,452.50

Annan, John Kwasi (Mr.)

Principal Teacher

University JHS

6179592 Resigned 11/24/2017 Mar. 2018

Dec. 2017 - Feb. 2018

1,989.67

5,722.11

Abdul Hameed, Mustapha (Mr.)

Assistant Lecturer

Chemical Engineering

6191949 Resigned 6/18/2018 Aug. 2018 Jul. 2018

2,655.25

2,655.25

Djan, Edward Kwafo (Dr.) Lecturer

Mechanical Engineering

6199360

Vacation of Post 4/1/2018 Sept. 2018

April - Aug. 2018

3,927.06

19,635.30

Moomen, Abdul-Wadood (Dr.) Lecturer

Geography and Rural Development

6198820 Resigned 8/25/2018 Nov. 2018

Sept. - Oct. 2018 salary and 1,961.10

4,143.07

10,247.24

Darko, Lily (Ms.)

Senior Nursing Officer

University Hospital

6193293

Vacation of Post 10/24/2018 Dec. 2018 Nov. 2018

2,424.04

2,424.04

Asante, Ernest (Mr.) lecturer Nursing

6190731

Vacation of Post Oct. 2018 Dec. 2018 Nov. 2018

4,748.98

4,748.98

Nketiah, Apraku (Mr.)

Assistant Lecturer

Commercial Law

6184677

Vacation of Post 11/1/2018 Dec. 2018 Nov. 2018

4,037.27

4,037.27

Yawson, Nat Ato (Mr.)

Principal Technician

Biochemistry and Biotechnology

6187056 Resigned 8/20/2018 Oct. 2018 Sept.

1,797.47

1,797.47

Total

67,710.16



Table 197: Other Unearned Salaries Written to the Banks

No.

Name

Period Unearned

Total Unearned

Salary Bank

1 Prof. Kwasi Opoku-Amankwah May & June 2018 2,394.88 2 Asamoah Rosina Addo May-18 2,142.87 GCB - KNUST 3 Dr. Darko Joseph Ofei December, 2018 5,705.22 GCB - KNUST

4 Mrs Felicia Adoma Fosu Jan - Mar. 2018

5,818.59 First Allied Savings & Loans, Asafo Branch

5 Mr. Donyinah Stephen Kudom December, 2018 6,138.79 GCB - KNUST

6 Mr. David Ato Quansah Aug. - Sept 2018

6,816.80 Ecobank Gh. Ltd- Knust

7 Prof. Duwiejua Mahama aug. 2018 7,171.62 GCB - KNUST 8 Mr. Samuel Bensah Aug. 2018 2,268.65 CAL. BANK - KNUST

TOTAL 38,457.42

Grand Total (67,710.16 + 38,457.42) 106,167.58



1716. Delay in the deletion of the names from the payroll was as a

result of; Late submission of information by the Dean of Faculties

concerning vacation of post, delay in submission of letters by the

officers themselves to Administration in terms of resignation, and

subsequent instructions from the Human Resource department to

the Payroll Section.

1717. This led to a loss of funds in the sum of GH¢106,167.58 to

the state if not recovered.

1718. We recommended to Management to recover the unearned

salary of GH¢106,167.58 from the former employees and pay same

to the consolidated fund or the authorising and approving officers

be made to refund the amount.

1719. Management responded that unearned salary to the tune of

GH¢66,376.23 had been retrieved from the respective banks, staff

entitlement etc. Details of the recovery are shown in table 198.

Table 198: Separated Staff

Name of the Separated Staff Amount Recovered

Dr. Benjamin Eric Kwasi Prah 16,452.50

John Kwasi Annan 5,722.11

Abdul Hammeed Mustapha 2,655.25

Dr. Wadood Abdul Moomen 10,247.24

Lily Darko 2,424.04

Nat Ato Yawson 1,787.47

Prof. Kwasi Opoku 2,394.88

Dr. Joseph Ofei Darko and Mr. Stephen Kudom Donyinah

11,844.01

David Ato Quansah 3,408.46

Prof. Mahama Duwiejua 7,171.62

Samuel Bansah 2,268.65

Total 66,376.23

1720. Management added that Mr. Nketia Apraku resigned from the

University effective 1 January 2019 but did not give the required six



months’ notice. So GH¢16,791.36 being the six months salary in

Lieu of notice had been deducted from his gratuity by the Pension

office. In addition, Mrs. Felicia Adoma Fosu forfeited three months’

salary after her resumption from the leave of absence because her

bank refused to return her three months unearned salary to the

University.

1721. We advised Management to refund the unearned salary

recovered, in the sum of GH¢83,167.59 (GH¢66,376.23 plus

GH¢16,791.36) to the consolidated fund failing which the Registrar,

Assistant Registrar-H/R and the Heads of the departments at where

this unearned salaries took place together with payroll schedule

officers at the affected units or departments shall be made to

account for the unearned salary. We also, advised Management to

ensure that the remaining unearned salary of GH¢29,935.49 due (as

shown in table 199) is recovered.

Table 199: Unearned Salary yet to be recovered

No.

Name

Period

Unearned

Total

Unearned

Salary

Bank

Remarks

Unearned

Salary

Due

1

Djan, Edward

Kwafo (Dr.)

April - Aug.

2018 19,635.30 ?

Yet to be

recovered 19,635.30

2

Asante,

Ernest (Mr.) Nov. 2018 4,748.98 ?

Yet to be

recovered 4,748.98

3 Nketiah, Apraku (Mr.) Nov. 2018 4,037.27 ?

Six months salary in lieu of notice in the sum of 16,791.36 was deducted from his gratuity -

4 Asamoah Rosina Addo May. 2018 2,142.87

GCB – KNUST

Yet to be recovered 2,142.87

5 Mrs Felicia Adoma Fosu

Jan - Mar. 2018 5,818.59

First Allied Savings & Loans, Asafo Branch

Three months salary was forfeited after her resumption from leave of absence -



6 Mr. David Ato Quansah Sept. 2018 3,408.34

Ecobank Gh. Ltd - KNUST

Yet to be recovered 3,408.34

Total 39,791.35

29,935.49

Failure to serve bond after Study Leave with pay-

GH¢382,796.65

1722. Paragraph five of The University’s terms of conditions for

study leave with pay specifies that “You are required to enter into

Contract of Guarantee with the University to serve the University for

a continous period of five (5) years after the programme”.

1723. We noted from the University’s Payroll records that three

officers were granted study leave with pay to further their education.

Before their departure, they and their guarantors entered into an

agreement with the University. The agreement commits the

guarantors of the beneficiaries to refund to the University whatever

sum of money expended on the awardees, together with interest

thereon at the current bank rate, if the awardees fail to complete the

programme and/or refuse to return to the service of the University

on completing the programme. The awardees however, resigned after

the programme or abandoned the course during the period. Details

about the three awardees are as follows:

1. Assan Seth Kojo Mbra

He was granted 4 years study leave with pay, from 1/8/14 to

31/7/18 for PhD programme in USA. He requested for

extension of time to complete his programme which was not

granted. He therefore resigned on 31/7/18. He was to refund

salary paid him for the entire 4 years.

2. Agyeman Philip

He was granted 3 years study leave with pay from 1/9/15 to

31/8/18 to pursue Masters programme in Mechanical



Designs in China. He was able to complete the programme

within 2 years and resumed work in August 2017. He

subsequently resigned after serving for one year two months,

claiming, he wanted to pursue his doctorate in Engineering.

He was to refund salary paid him from 1/9/15 to 31/7/17.

3. Amankwa Emmanuel

He was granted 3 years study leave with pay, from 1/10/16 –

31/9/19 to pursue PhD programme in South Korea. His pay

was suspended on 1/2/18 after his supervisor from South

Korea, Kyung-Wan Nam wrote to the University that, he has

abandoned his studies. He was to refund salary paid him from

16/10/16 to 1/2/18. Details, and the summary provided in

table 200.

Table 200: Refunds of Study Leave Payments

Staff Name Staff ID Designation Department Period

of

refunds

total Amount

GH¢

Interest GH¢

Grand Total

GH¢

ASSAN, SETH KOJO

MBRA (MR.)

6172784 ASSISTANT REGISTRAR

DEANS OFFICE - FACULTY OF

LAW

1/8/14 -

31/7/18

208,667.29 52,166.82 260,834.11

AGYEMAN,

PHILIP (MR.) 6170315

PRINCIPAL

TECHNICIAN

MECHANICAL

ENGINEERING

1/9//15 -

31/7/17

41,126.73 9,253.53 50,380.26

AMANKWAH, EMMANUEL (MR.)

6184782 ASSISTANT LECTURER

MATERIALS ENGINEERING

1/10/16 -

1/2/18 61,181.43 10,400.85 71,582.28

Total

310,975.45 71,821.20 382,796.65

1724. We attributed the lapse to lack of commitment by the

beneficiaries to their undertakings. The intention to unfairly exploit

the University and the government for their own personal gains

cannot be ruled out.

1725. The University has been deprived of the benefit which should

have been derived from the skills acquired by the officers. The



situation is also, a loss to government, if the expended amount is

not retrieved.

1726. We recommended to Management to recover from Assan Seth

Kojo Mbra, Agyeman Philip and Amankwa Emmanuel and their

guarantors the sum of GH¢382,796.65 expended on them on their

sponsorship and pay same to the consolidated fund within six

months of receipt of our management letter.

1727. Management responded that staff that were granted study

leave with pay but failed to return are being pursued together with

their guarantors.

1728. Concerning Assan Seth Kojo Mbra, the University accepted his

resignation request but informed him to pay back all the monies the

University has expended on him during the period of his study leave.

He then wrote to the Finance officer to arrange for payment

schedule. Management added that the Officer has requested that his

GUSS contributions, being GH¢50,350.95 should be used to defray

part of his total debt, leaving his outstanding debt to

GH¢210,483.16.

1729. We urged Management to pay the GH¢50,350.95 into the

consolidated fund and recover the remaining amount of

GH¢332,445.70(GH¢210,483.16 plus 50,380.26+71,582.28) from

the three officers and their guarantors within six months of receipt

of our management lettter.

1730. Management further responded that the amount of

GH¢50,350.95 which was recovered from the GUSSS entitlement of

Mr Assan has been paid to the consolidated fund. Other amounts

are being pursued, including their guarantors.

1731. We urged Management to expedite action on the recovery of

the remaining GH¢ 332,445.70.



Resignation without appropriate notice–GH¢23,393.53

1732. Paragraph five of Senior staff appointment letter specifies

“The appointment shall be terminable by either party giving the

other party at least three months’ notice in writing or payment of

three months salary in lieu of notice but the University shall have

the right to dismiss you without notice for misconduct or negligence

of duty or incompetence”.

1733. We noted from our payroll audit that, three senior officers who

resigned during the period under review did not give three months

prior notice to the Vice-Chancellor before their departure. They did

not also pay three months’ salary in lieu of notice as required by

their appointment letters. Table 201 shows the details.

Table 201 Resignation without appropriate notice 3 MONTHS IN LIEU OF NOTICE

NAME DESIGNATION

STAFF

ID DEPARTMENT

REASON

FOR SEPERAT

ION

DATE OF

SEPERATION

REQUIRED PAYMENT

PERIOD

One

Month Net Salary

GH¢

TOTAL UNEARNED

SALARY GH¢

KABIR,

CHARLES LWANGA

(MR.)

SENIOR HALL

ASSISTANT 6163181 UNITY HALL Resigned 19/03/2018

3 Months in

lieu of notice 1,997.64 5,992.92

ESSEL,

EMMANUEL (MR.)

SENIOR TECHNICIAN 6190812 INDUSTRIAL ART Resigned 16/03/2018

3 Months in lieu of notice 1,997.64 5,992.92

DAVIDSON,

JAMES NII AFADI (MR.)

SENIOR ICT ASSISTANT 6192441 MEDICINE Resigned 01/04/2018

3 Months in lieu of notice 1,419.27 4257.81

YAWSON,

NAT ATO

(MR.)

PRINCIPAL

TECHNICIAN

6187056 BIOCHEMISTRY

AND

BIOTECHNOLOGY

Resigned 20/08/2018 4 Months in

lieu of notice

and Sept salary

1,787.47 7,149.88

Total 23,393.53

1734. Management’s inability to enforce the provisions contained in

the appointment letters of the resigned officers caused the anomaly.

1735. The anomalous condition denied the University ample time to

fill the vacancies created by the unexpected exit of the Officers. The

situation could also distort the academic plans of the faculties

involved.

1736. We recommended to Management to retrieve the total amount

of GH¢23,393.53 from the former employees, or from their



entitlements within six months from receipt of our management

letter.

1737. Management Responded that the University has arranged to

deduct the three months’ salary in lieu of notice from their

entitlements.

1738. We recommended to Management to pay any recovered

amount into consolidated fund.

Earning Double Salary-GH¢117,946.28

1739. Section 7(1)(a) of the Public Financial Management Act, 2016

(Act 921) states “A Principal Spending Officer of a covered entity

shall ensure the regularity and proper use of money appropriated in

that covered entity”.

1740. Regulation 292(1)(a)&(b) of the Financial Administration

Regulations, 2004( L.I 1802) again, states “Every head of

department shall keep records of all personal emolument of staff

employed in the department, in a form that ensures that payments

are made as and when due; overpayments are not made”.

1741. Article 12 of the Condition of Service for Senior Members also

stipulates that, a senior member may be granted study

leave/Sabbatical leave and leave of Absence for Senior Members

provided in the Recorder No.408, January, 2012 Vol.45 No.6.

1742. Our examination of the records of the separated staff

disclosed that, two officers were granted two years and one year

sabbatical leave respectively. We further noted that the Officers

applied for sabbatical leave to take up appointment as Vice Rector

of the College of Physicians and Surgeons, and Ministerial

appointment respectively. The Officers made these intentions known



to Management. However, Management granted the Sabbatical leave

with pay instead of leave of absence without pay. Refer to table 202

for the salary paid by the University during the period.

Table 202: Sabbatical Leave Payments to be refunded

Name Designation Staff ID Department

Period of

Unearned Salary

Details Monthly

Salary

Total

GH¢ Remarks

Plange-Rhule,

Jacob (Prof.)

Associate

Professor 6147216 Physiology

1/12/14 -

1/12/16 Jan. - Dec 2014

?

Salary for 2014 and

2015 were not available

Jan. - Dec 2015

?

Jan. - Dec 2016

4,693.06

56,316.72

Opoku-

Amankwa Kwasi (Prof.)

Associate Professor

6158927 Publishing Studies

1/5/17 - 30/4/18 May - Dec.

2017 5,021.30

40,170.40

Jan. - April

2018

5,364.79

21,459.16

Total 117,946.28

1743. Management’s disregard for the above quoted laws coupled

with their inability to consider granting Leave of absence instead of

sabbatical leave, under the circumstances resulted in the anomaly.

1744. The lapse has led to double payment of salaries by

Government which could have been used to support other equally

important activities of the state.

1745. We recommended to Management to ensure that the officers

refund the salary paid by the University for the sabbatical leave

period to the consolidated fund, or the Registrar, Assistant

Registrar-H/R and the Heads of the departments at where this

double salaries payments took place together with payroll schedule

officers at the affected units or departments shall be made to

account for the double salary payment of GH¢117,946.28.

1746. Management Responded that the sabbatical leave with pay

was granted to the officers in compliance with Article 2.2 of the

Condition of Service for Senior Members. The University pays only



Basic salary and Market premium to staff on sabbatical leave with

no other allowances. The University has no evidence of payment of

additional salary to the officers at their locations.

Auditors’ comment

1747. Officers made their intentions and copies of their

appointment letters known to Management. We therefore, reiterate

our recommendations for compliance.

Development Office

Contract payment for no works done-GH¢1,722,911.27


921) requires a Principal Spending Officer of a covered entity to


covered entity and manage the resources received, held or disposed

of by or on account of the covered entity. Also, Regulation 39 of the

Financial Administration Regulations, 2004 (L.I. 1802) states that a

head of department shall ensure that monies are utilised in a

manner that secures both optimum value for money and the

intention of parliament.

1749. We noted during inspection of projects at the University that

five contractors were paid for work not executed during the period.

Our physical count of electrical, plumbing, fixtures and fittings and

other related installations indicated that quantities of items installed

by the contractors were less than what was billed by the contractors

and paid for by the University. Total value of the uninstalled items

was GH¢1,722,911.27. Details are contained in table 203a



Table 203a: Summary -Payment for works not done

No. Unit Type of

Work

Value for

uninstalled items

GH¢

Contractor

1 Main

Administration

Joinery and

Plumbing

Installation

18,370.00 Papnoble

Ventures

2 Quality

Assurance

Joinery,

Metal Works, Electrical

Installation

and

Plumbing

Installation

46,790.00

Sibire

Construction Works

3 Finance Block Plumbing

Installation

12,895.00

Kobkas Ltd

4 Regional Water

and Sanitation:

Electrical

Installation

65,550.00 Asib Ltd

5 Business School Electrical

Works and

General

Fixtures

1,579,306.27

Antartic

Contract

Works Ltd.

Total 1,722,911.27

1750. We attributed the anomaly to the supervisors of the projects

and the Director of Works as well as the head of Physical

Development Unit’s inability to monitor and inspect progress of work

before the certification for payment.

1751. In effect, monies that could have been used to meet other

pressing needs of the University or pay for other certificates were

wrongly paid to these contractors for no work done. If the above

practice is allowed to persist the University could lose huge sums of

money.

1752. We recommended to Management to recover the

GH¢1,722,911.27 from the contractors and inform us for verification

within six months from receipt of our management letter. Failure of



which the amount should be recovered from the Directors of Works

and Physical Development and the supervisors of the five projects.

Management Response

1753. By practice payment certificates for work done are treated as

interim payments or payments on accounts. Therefore, any

payments done in error in the previous certificate(s) are corrected in

the subsequent certificate(s) until the final account or the final

certificate which is conclusive of the cost of the project. As indicated,

in your report the affected items are Mechanical and Electrical

Installation which are checked by the Mechanical and Electrical

Consultants. We have noticed same and some have already been

corrected and others will be done from payments due those

Contractors accordingly. Further, we will be involved in verification

of mechanical and electrical installation items.

1754. Later, the Development Officers indicated that their further

physical verification and adjustments either negated or reduced the

value of the uninstalled items as detailed in table 203b.

Table 203b: Summary – Re-Payment for works not done

No. Unit Type of Work

Value for uninstalled items GH¢

Contractor Management comments

Management Value for

uninstalled

items GH¢

1 Main Administrat

ion

Joinery and Plumbing

Installation

18,370.00 Papnoble Ventures

The Supplier has rather installed more

items

(32,290.00)

2 Quality Assurance

Joinery, Metal Works, Electrical

Installation and Plumbing Installation

46,790.00

Sibire Construction Works

The Supplier installed more items

38,680.00

3 Finance Block

Plumbing Installation

12,895.00

Kobkas Ltd The Supplier installed more items

16,360.00

4 Regional Water and Sanitation:

Electrical Installation

65,550.00 Asib Ltd Certified number of uninstalled items was GH¢60,440.00

which has been

-



deducted from

Certificate No. 10

5 Business School

Electrical Works and

General Fixtures

1,579,306.27

Antartic Contract

Works Ltd.

Certified amount of uninstalled items

was GH¢1,482,940.34 which has been deducted from

Certificate No. 13

-

Total 1,722,911.27

1755. We are yet to confirm the additional items said to have been

supplied and whether they have not been paid for during the 2019

financial year. In the case of Regional Water and Sanitation and

Business School projects, we are yet to certify the subsequent works

done and the related values to be able to authenticate any recovery

deductions. Meanwhile, we advised the Director of Works to pursue

the two contractors (Sibire Construction Works and Kobkas Ltd) for

the recovery of the value of the uninstalled items that they (the Development Office) have certified in the sum of GH¢55,040.00

within, failing, which the Director of Works and Physical

Development and the supervisors of the three projects should be

made to refund the amount involved.

VAT charged on Construction Works – GH¢779,822.57

1756. Section 5 of the VAT Act, 2013 (Act 870) states “For the

purposes of this Act, a “taxable activity” means an activity which is

carried on by a person in the country, or partly in the country,

whether or not for a pecuniary profit, that involves or is intended to

involve, in whole or in part, the supply of goods or services to another

person for consideration”.

1757. Section 35 of the VAT Act, 2013 (Act 870) also directs that the

supply of goods and services specified in the First Schedule

paragraph 18(d) are an exempt supply and not subject to the tax.

These exempted supplies include all public civil works.



1758. We noted initially that 24 contractors engaged in construction

or renovation works of 46 projects across the University charged VAT

in the sum of GH¢1,733,659.22 (according to the certificates paid)

on the value of work done during the period. Refer to table 204a for

details.



Table 204a: VAT charged on construction and renovation works

S/No.

Date Description of Service/Works

Contractor PV No. Chq No Amount GH¢

VAT Charged

1 5/9/2018

Interim payment cert No.1 for proposed construction of

concrete retaining wall and storm drain at

Agric junction KNUST - Kumasi.

A.E. Chase

Company Limited

P: 401089 559479 104,900.84 17,400.61

2 10/9/2018

Payment cert No. 1 for proposed renovation of senior member bungalow No. 36 Okodee road at KNUST

Agua Fields Construction Limited

P: 401529 559496 141,092.85 23,404.03

3 10/8/2018

Payment cert No.3 for proposed renovation of senior staff bungalow No.18 Buroburo road at KNUST

Agua Fields Construction Limited

P: 398429 559322 17,803.27 7,722.64

4 10/8/2018

Payment cert No.3 for proposed renovation of

senior staff bungalow No. 22 ridge road at KNUST.

Agua Fields

Construction Limited

P: 398432 559321 21,954.38 8,835.59

5 5/9/2018

Interim payment cert No.1 for proposed construction of concrete u- section drain at procurement and Agric junction, KNUST - Kumasi.

ALC Horizon Limited

P: 401091 559480 20,361.37 3,377.48



6 18-09-18

Interim payment cert No.1 for proposed earthworks from unity roundabout to Agric junction at KNUST-Kumasi.

ALC Horizon Limited

P: 402509 559616 87,246.87 14,472.23

7 12/9/2018

Payment cert No.4 for

construction of proposed five storey classrooms and offices

for school of nursing (phase 1) at KNUST, Kumasi

Asib Limited P: 401909 559469 1,766,461.71 676,069.59

8 5/9/2018

Interim payment cert No.1 for proposed renovation of senior staff housing primary school road no.4 (labour only)

August 6th Company Limited

P: 401067 559438 20,613.35 3,419.28

9 10/8/2018

Payment cert No.2 for proposed renovation of council chamber and UITS at main administration (Lot 1

partitioning and finishes)


P: 398430 559323 73,611.44 7,282.24

10 1/8/2018

Payment cert No. 1 for proposed washroom for KNUST security at KNUST – Kumasi

Critical Path Construction Limited

P: 394353 559274 119,735.15 19,861.28

11 7/9/2018

Interim payment cert No.1 for construction of car park in between security building and

Domeyoo Engineering Co. Ltd

P: 401494 559487 107,452.67 17,823.90



GCB bank (Lot 7) KNUST

12 5/9/2018

Interim payment cert No.1 for proposed site preparation and clearing at Agric

junction, KNUST - Kumasi.

Domeyoo Engineering

Co. Ltd

P: 401088 559477 50,746.79 8,417.71

13 27-07-18 Proposed renovation of junior staff quarters at No. D33b for KNUST

Evemens Mining And Construction Limited

P: 397104 665500 28,735.91 4,766.62

14 22-08-18

Payment cert No. 1 for proposed renovation of staff bungalow at No. F16 KNUST.


P: 399452 665843 47,971.59 7,957.37

15 13-12-18

Payment cert No.1 for proposed renovation of staff bungalow at No.GF 11, KNUST - Kumasi


P: 414032 563587 89,465.52 11,101.25

16 12/9/2018

Interim payment cert

No.1 for proposed construction of concrete u- section drain at Ahinsan Gate and between SRC

Hostel and Mosque, KNUST - Kumasi.

High Craft Engineering Company Limited

P: 401904 559490 104,885.73 17,398.11

17 1/10/2018

Payment cert No.1 for proposed tiling and associated works at Non- Residential

Jobewill Limited

P: 402827 559858 59,608.57 9,887.68



Students' facility near KNUST club 'B' at KNUST.

18 1/10/2018

Payment cert no.1 for proposed installation of fixtures and painting work at non-residential

students' facility near KNUST club 'b' at KNUST.

Jobewill

Limited P: 402826 559857 64,840.56 10,755.54

19 22-08-18

Payment cert No.1 for proposed renovation of washrooms at finance block at KNUST - Kumasi

Kobkas Ltd P: 394335 559287 154,456.96 25,620.82

20 5/9/2018

Interim payment cert no.1 for proposed construction of u-section drain from Administration Roundabout towards Exams Hall traffic light (Lot 1), KNUST -

Kumasi.

Mmanab Company Limited

P: 401085 559482 131,711.88 21,847.94

21 5/9/2018

Interim payment cert no.1 for proposed construction of u-section drain from Administration Roundabout towards Exams Hall traffic light (Lot 1), KNUST - Kumasi.


P: 401080 559485 131,988.94 21,893.90



22 5/9/2018

Interim payment cert no.1 for proposed construction of u-section drain from Administration roundabout towards Exams Hall traffic light (Lot 2), KNUST –

Kumasi


P: 401082 559481 132,301.37 21,945.72

23 5/9/2018


no.1 for proposed installation of fibre cables at car park in between Security Building and Ghana Commercial Bank, KNUST - Kumasi.


P: 401087 559478 36,736.95 6,093.81

24 10/7/2018

Special advance to Mrs. Harriet Eshun for the cost of renovation of the Chancellor's Lounge at the Main Library (ACS71VOL.1F449)

Papnoble Ventures Ghana Limited

P: 394359 665406 128,912.74 21,902.65

25 1/8/2018

Proposed renovation of

senior member housing no. 62 Okodee road KNUST

Papnoble Ventures

P: 394844 559273 124,352.17 20,627.14

26 22-08-18

Proposed renovation of senior member bungalow at No. 51 ridge road, knust – Kumasi

Papnoble Ventures

P: 397404 559286 127,785.78 21,196.69

27 22-08-18 Proposed renovation of offices for stores department at

Papnoble Ventures

P: 397400 559285 134,571.18 22,322.23



procurement office, knust-kumasi

28 7/9/2018

Interim payment cert No.1 for proposed renovation of former roads and culverts section building at GCB

Bank, KNUST.

Perennial Services Limited

P: 401498 559486 106,627.27 17,686.99

29 18-09-18

Interim payment cert No.1 for proposed paving works between security office building and GCB Bank (Lot 1) at KNUST-Kumasi.

Perennial Services Limited

P: 402511 559618 133,148.52 22,086.25

30 10/8/2018

Payment cert No.3 for proposed supply and

fixing of timber doors at Great Hall at knust.

Pideck P: 398434 665692 48,676.90 12,530.61

31 10/8/2018

Payment cert No.3 for proposed finishing to timber works at Great Hall at KNUST.

Pideck P: 398433 665691 71,958.54 27,675.41

32 5/9/2018


no.1 for proposed construction of stone pitching at Bomso gate and Paa Joe Stadium KNUST - Kumasi.

Pure Modern Limited

P: 401069 559484 45,417.27 7,533.67

33 5/9/2018


No.1 for proposed renovation of staff quarters at Security Flat No.6 at KNUST – Kumasi

Radebs Enterprise Limited

P: 401061 559467 56,086.97 9,303.53



34 3/10/2018

Payment cert No.2 for proposed renovation of staff housing JSQ No.F25, F48 and F87B (labour only) at knust.

Rich House Construction Works Ltds

P: 403927 559939 30,945.45 5,133.13

35 14-09-18

Payment cert no.1 for proposed completion of

fence wall along knust-Gyinase Kotei boundary (Lot 2) at KNUST

Rich House

Construction Works Ltds

P: 400151 559497 72,816.26 12,078.53

36 22-08-18 Proposed renovation washrooms at Quality Assurance Office Block

Sibire Construction Works

P: 394838 559289 154,758.23 25,670.80

37 24-09-18

Payment cert No.1 for proposed renovation of senior member housing No.6 new ridge road at KNUST-Kumasi.

Well Built Contract Works And First Atlantic Bank

P: 403437 559665 138,459.83 22,967.27

38 24-09-18

Payment cert no.1 for proposed renovation of senior member housing No.5 new ridge road at KNUST - Kumasi.

Well Built Contract Works And First Atlantic Bank

P: 403439 559664 139,626.46 23,160.79

39 22-08-18

Payment to Papnoble

Ventures for the cost of renovation of staff bungalow No. GF16 (ACS71VOL.1F456)

Papnoble Ventures

P: 394820 559288 72,078.66 11,956.18

40 ########

Payment to Papnoble Ventures for the cost of renovation works at University Relations Office (URO) (ACS71VOL.1F491)

Papnoble Ventures

P: 404238 563061 78,618.02 13,040.90



41 17-09-18

Payment cert No.1 for proposed completion of fence wall along KNUST-Gyinase Kotei boundary (Lot 1) at knust - kumasi.

Emacosand Construction Limited

P: 402331 652275 71,568.69 12,975.92

42 18/12/18

Construction of

proposed five storey classrooms and offices for school of nursing

Messrs Asib Ltd,

P: 414727 908719 1,918,445.96 285,726.00

43 20/12/18

Plumbing works on renovation of toilets at Dept. of Chemistry, KNUST

Maryamank Company Ltd

P: 415314 87586 64,800.50 10,878.86

44 20/12/18

Renovation of washrooms for the Dept. of chemistry, KNUST

Alc Horizon Ltd

P: 415319 87585 82,432.80 14,036.58

45 20-Dec-18

PAYMENT TO GEOFRA CONSTRUCTION FOR THE PROPOSED CONSTRUCTION OF SRC HOSTEL

MESSRS GEOFRA CONSTRUCTION WORKS

P: 421097 60384 382,870.00 135,404.00

46 2/10/2018

Paving works at the

College of Art and Business Environment (CABE).

M/s High

Craft Engineering Services Ltd

P: 405711 10,410.04

Total 7,699,642.87 1,733,659.22



1759. Response however from the Director of Works indicated that

the contractors have been contacted and most of them have

submitted evidence of payment to the Ghana Revenue Authority.

1760. Our analysis of the VAT payments documents presented by

the Development Office showed that most of them could not be

linked to the construction transactions in question. However,

considering those related to the period under review (both direct

payments to GRA and the statutory 7% deductions made by KNUST)

only GH¢953,836.65 had been paid, leaving a difference of

GH¢779,822.57 yet to be accounted for. Refer to table 204b and

210c for the summary and the details of the payments respectively.

Table 204b Summary of VAT payments for 2018 Transactions

No. Contractor Total VAT to be paid for the period

GH¢

Total VAT Paid to GRA and

KNUST

Deductions GH¢

VAT amount yet to be paid

GH¢

1 A.E. Chase Company Limited

17,400.61 6,960.25 10,440.36

2 Agua Fields Construction Limited

39,962.26 31,740.10 8,222.16

3 ALC Horizon Limited 31,886.00 - 31,886.00

4 Asib Limited 961,795.59 676,069.55 285,726.04

5 August 6th Company Limited

10,701.52 - 10,701.52

6 Critical Path Construction Limited

19,861.28 19,861.20 0.8

7 Domeyoo Engineering Co. Ltd

26,241.61 - 26,241.61

8 Evemens Mining And Construction Limited

23,825.24 - 23,825.24

9 High Craft Engineering Company Limited

17,398.11 - 17,398.11

10 Jobewill Limited 20,643.22 4,753.99 15,889.23

11 Kobkas Ltd 25,620.82 15,372.49 10,248.33

12 Mmanab Company Limited

71,781.37 32,057.46 39,723.91

13 Papnoble Ventures Ghana Limited

111,045.79 111,045.76 -

14 Perennial Services Limited

39,773.24 - 39,773.24

15 Pideck 40,206.02 - 40,206.02



16 Pure Modern Limited 7,533.67 - 7,533.67

17 Radebs Enterprise

Limited 9,303.53 - 9,303.53

18 Rich House Construction Works

Ltds

17,211.66 10,267.05 6,944.61

19 Sibire Construction Works

25,670.80 25,670.80 -

20 Well Built Contract Works And First Atlantic Bank

46,128.06 20,038.00 26,090.06

21 Emacosand Construction Limited

12,975.92 - 12,975.92

22 Maryamank Company Ltd

10,878.86 - 10,878.86

23 Messrs Geofra Construction Works

135,404.00 - 135,404.00

24 M/s High Craft Engineering Services Ltd

10,410.04 - 10,410.04

TOTAL 1,733,659.22 953,836.65 779,822.57

Table 204c Details of VAT Payments including KNUST Deductions

No. Contractoy Period of VAT

Returns

Payment to GRA GH¢

Deductions by KNUST GH¢

Period for the

deduction

Total VAT Payment (GRA and KNUST

Deductions GH¢

1 A.E. Chase

Company Limited

- - 6,960.25

Sept. 18

6,960.25

2 Agua Fields Construction

Limited

Sept. 18 Sept. 18

Dec. 18

7,212.98 18,721.02

5,806.10

- -

-

31,740.10

3 Asib Limited Sept. 18 Sept. 18

175,808.99 229,832.77

117,205.99 153,221.80

Sept. 18 Sept. 18

676,069.55

4 Critical Path Construction Limited

July 18 11,916.69 7,944.51 July 18 19,861.20

5 Jobewill Limited - - 3,416.00 1,337.99

Nov. 18 July 18

4,753.99

6 Kobkas Ltd July 18 15,372.49 - - 15,372.49

7 Mmanab Company Limited

- - 8,757.56 8,778.29 8,739.18 2,437.52

3,344.91

Sept. 18 Sept. 18 Sept. 18 Sept. 18

Dec. 18

32,057.46

8 Papnoble Ventures Ghana

Limited

July 18 Sept. 18

Oct. 18

34,035.58 13,393.34

13,474.84

20,934.00 5,216.36

23,991.65

July 18 Sept. 18

Oct. 18

111,045.76

9 Rich House Construction

Works Ltds

Sept. 18 10,267.05 - 10,267.05

10 Sibire Construction Works

July 18 15,408.48 10,262.32 July 18 25,670.80



11 Well Built

Contract Works And First Atlantic Bank

Sept. 18 20,038.00 - 20,038.00

Total 571,288.33

382,548.33

953,836.65

1761. The inability on the part of Management, as well as the

Internal Audit Unit to properly review the bills before payments

caused the anomaly.

1762. The practice did not only increase the contract prices at the

expense of the University, but both the state and the University

stand the chance of losing GH¢779,822.57 should the contractors

fail to pay the VAT amount to the Ghana Revenue Authority (GRA).

1763. We recommended to Management to demand from the

contractors evidence of payment of the VAT in the sum of

GH¢779,822.57 to the GRA or recover same from the contractors for

audit verification. Management should report the contractors to GRA

for appropriate sanctions if they fail to pay the VAT amount to GRA

or refund to the University, and blacklist them from the University’s

activities. Further, we urged Management to cease the inclusion of

VAT on works since public works are VAT exempt.

Payments of fluctuations due to delay in project completion –

GH¢9,031,644.02


921) provides that, a Principal Spending Officer of a covered entity

shall ensure the regularity and proper use of money

appropriated in that covered entity and manage the resources

received, held or disposed of by or on account of the covered entity.

Also, Regulation 39 of the Financial Administration Regulations,

2004 (L.I. 1802) states “A head of department shall ensure that

monies are utilised in a manner that secures both optimum value

for money and the intention of parliament”.



1765. Our review of contract documents of the University indicated

that, the construction of a Proposed 5 – Storey Offices and

Classroom Block and Educational Resort Facilities at Takoradi City

Campuses/Moree for the Institute of Distance Learning, KNUST had

unduly delayed, resulting in the payments of fluctuations totalling

GH¢9,031,644.02 as at 14 March 2019. The contract which was

awarded to Messrs Antartic Contract Works Ltd, commenced in May

2015 at an initial contract sum of 27,039,702.89 and was expected

to be completed within 22 months. The contract was varied and

finally arrived at a contract sum of GH¢55,252,955.31.

1766. Our visit to the sites on 9 July 2019 disclosed that the

educational resort at Moree was yet to be completed. We noted

further that the work had been halted and apart from the caretaker,

no worker was seen at the site of project.

1767. The situation arose as a result of the inclusion of three

separate unrelated projects or contracts (Labouratory Building

(Moree), Clinic, Nurses Bungalow (Moree)) to the existing one. The

Development office’s inability to establish the expected period of

completion after the variation also, contributed to the excessive

delay.

1768. Funds that could have been used to construct other facilities

for the University are being spent on preventable fluctuations.

1769. We recommended to the Director of Works and Physical

Development to establish timelines for the contractor to finish and

hand over the projects to the University, failing which the contract

should be terminated and re-awarded to another contractor for

completion. We further recommended that, officers (the

Development Officer and the quantity surveyor) whose

action/inaction led to the payment of this fluctuations should be



sanctioned. In addition, Management is advised to desist from

adding unrelated contracts to already awarded ones.

1770. Management of the Development Office indicated that the

variations were as result of the agreement reached between the

Institution and the contractor.

1771. Management promised to cease payments of additional

fluctuation and re-visit the previous paid fluctuations. Management

later stated that payment of fluctuations has ceased and notice of

completion of works at the Moree campus had been given by the

Contractor. Final inspection prior to hand over/commissioning

scheduled for 12 March, 2020.

Auditors’ comment

1772. We are of the view that the additional projects could have

been awarded separately to avoid rampant fluctuation payments.

Management is yet to also re-visit the previous fluctuation

payments.

Unclaimed Liquidation Damages resulting from Delayed Tamale

City Campus Project – GH¢822,164.21 1773. Clause 49.1 of the conditions of the contract agreement for

the construction of the Institute of Distance Learning (IDL), Tamale

City Campus’ states “The contractor shall pay liquidation damages

to the employer at a rate per day stated in the Contract Data for each

day that the completion date is later than the intended completion

date”. Clause 49.0 of the Contract Data also, states “The liquidation

damages for the whole of the works is 0.05% of the final contract

price per day. The maximum amount of liquidation damages for the

whole of the works is 10 percent of the final contract price”.

1774. We noted from our review of contract documents of the

construction of the Institute of Distance Learning (IDL), Tamale City

Campus that, the project had unduly delayed. The contract was



awarded to Messrs Myturn Company Ltd. on 11 August 2015 and

was expected to be completed on or before 1 September 2017.

However, the contractor was unable to complete the project within

the specified timeframe and therefore, sought for an extension up to

13 May 2018, which was granted by the University. When we visited

the Project site on 12 July 2019, the contractor had still not

completed the project.

1775. Nonetheless, Management has not activated the Liquidation

Damages clauses as provided in the contract agreement. Liquidation

damages due the University for the period 14 May 2018 to 31

December 2018 amounted to GH¢822,164.21. Details are provided

in table 205.

Table 205: Liquidated Damages due the University

1776. We ascribed this lapse to Mangement inaction to activate the

liquidation damages clauses.

1777. We recommended to Management to recover the liquidation

damages of GH¢822,164.21 and any subsequent delayed period

liquidation damages from Messrs Myturn Company Ltd within six

months from the receipt of our management letter and inform the

audit team for verification, failing which the Director of Works and

Physical Development and the project’s supervising officers shall be

held liable for the liquidation damages; we also advised the Director

of Works and Physical Development to ensure that provisions in

contracts agreements are rigorously enforced, to forestall the

recurrence of this lapse.

Details Computations Amount

(GH¢)

Contract Sum 10,213,213.08

Liquidation damages per day 10,213,213.08*0.05% 5,106.61

Total damages as at 31/12/18 5,106.61*161 days 822,164.21



1778. Management Responded that they have written to Messrs

Myturn of recovery of compensation due the institution pursuant to

the contract conditions, making reference to an earlier letter

granting him the extension of time. The Liquidated and Ascertained

Damages (LAD) takes effect from the expiration of the extended

completion date and termination of additional payment for

fluctuation also begins on expiration of the extended completion

date.

1779. Management further stated ‘The institution has recovered

compensation due, pursuant to the contract conditions. Due to the

slow pace of progress of work on site, the institution has decided to

terminate the contract’.

Unjustified Fluctuation Payments-GH¢200,025.88


921) provides that a Principal Spending Officer of a covered entity


that covered entity and manage the resources received, held or

disposed of by or on account of the covered entity.


2004 (L.I. 1802) also, states “A head of department shall ensure that


for money and the intention of parliament”.

1782. We noted that the development office certified the payment of

unjustified fluctuations amounting to GH¢200,025.88 to Messrs

Myturn Company Ltd after the expiration of the approved extension

period for the completion of the proposed 4-storey offices and

classrooms block for KNUST/Tamale City Campus project. Initially,

the contractor was expected to complete the project on or before 1

September 2017 but later sought for extension to complete and hand

it over by 13 May 2018. However, the contractor could not complete



the project within the extended timeframe. He did not also provide

any tangible reason for his inability to complete the project. Details

of the payments provided in table 212.

1783. The Director of Works and Physical Development’s inability to

enforce conditions of the contract occasioned the irregularity. Again,

the absence of stricter clauses on fluctuations in the terms and

conditions of the contract agreement contributed to the lapse.


Table 206: Unjustified Fluctuation Payment

1784. Funds that could have been used to pay for certificates

emanating from other projects, or meet urgent needs of the

University were expended on avoidable fluctuations.

1785. We recommended to the Director of Works and Physical

Development to recover the GH¢200,025.88 from Messrs Myturn

Company and cease further payment of fluctuations to him. Further,

we urged the development office and for that matter the University,

to include stricter clauses in the terms and conditions of contract

agreements to avert the recurrence of this anomaly.

1786. Management Responded that Payments for additional

fluctuation will cease after the expiration of the extended completion

date and any amount paid in excess will be recovered from the

Contractor.

Date ID Cheque

No.

Description Fluctuation

Amount

17/1/19 416524 496545 Payment of No. 7 certificate of proposed

4-storey offices and

classrooms block for KNUST/Tamale City

Campus

200,025.88



1787. The Development office later indicated that fluctuation has

ceased after the expiration of the extension of time and adjustments

have been made in the fluctuation payments in certificate No. 9.

1788. We urged Management to comply with our recommendation.

This is because the fluctuation amount under reference was paid

after the extension of the date for completion of the project.

1789. Our later verification indicated that only GH¢9,724.10 was

adjusted to certificate No. 9. Against an amount of GH¢200,025.88.

Difference in payment of compensation – GH¢78,616.20





of by or on account of the covered entity.


2004 (L.I. 1802) also states “A head of department shall ensure that


for money and the intention of Parliament”.

1792. We noted from our review of contact documents of the

Takoradi City Campus project that the contractor paid

GH¢188,033.80 as compensations to chiefs, farmers and

inhabitants of Kasaworado and Moree, and cost of surveying works

on the project on behalf of the University. However, the University

refunded an amount of GH¢266,650.00 to the contractor which

included an unaccounted difference of GH¢78,616.20. Refer to table

207 for details.



Table 207: Undue payment of profit on compensation

No. Items Paid for Initial Cost/

Compensation

Amount

Paid to

Contractor

(Diff.)

Margin to

Contractor

Margin

(%)

1 Compensation to

farmers as instructed

by the client through the V.C. on 8 Oct.

2015

55,758.80 86,500.00 30,741.20 55.13

2 Surveying for

boundaries

(Kasaworado) as

instructed by Project Architect, Jimmy

Nkrumah in August

2015

3,000.00 4,650.00 1,650.00 55.00

3 Surveying work for

spot height/contours

(Moreen) as requested

by Project Architect, Jimmy Nkrumah in

January 2015

4,500.00 7,000.00 2,500.00 55.56

4 Geotechnical services

for the works as

instructed by Project

Engineer, Prof. Mark Adom

Asamoah on 1 June

2015

24,775.00 38,500.00 13,725.00 55.40

5 Compensation to

inhabitants

of Moree

100,000.00 130,000.00 30,000.00 30.00

Total 188,033.80 266,650.00 78,616.20

1793. The contractor informed the Director of Works and Physical

Development through two separate letters that the project team on

different occasions instructed him (The contractor) to pay

compensations to the chiefs, inhabitants and farmers of Kasaworado

and Moree as well as conduct survey on the project, which he

executed.



1794. Conversely, we did not come across any signed agreement

between the contractor and the University specifying that margins

were to be added to the amount during repayment. We found this

profit charged the University to be unfair and without bases,

because the contractor was granted an advance mobilisation prior

to the commencement of the project without any interest levied.

1795. The University’s inability to directly pay the compensations

due the chiefs and people of the two communities, and conduct the

survey by themselves caused the irregularity. Further, the Director

of Works and Physical Development did not question the contractor

about the legitimacy of the difference on the amount paid.

1796. The University therefore lost GH¢78,616.20 through the anomaly.

1797. In the absence of any admissible information to substantiate

the claim, we disallowed the GH¢78,616.20, and urged Management

to recover same from Messrs Antartic Contract Works Ltd

immediately and inform the audit team for verification. Additionally,

we implored Management to be meticulous in its future transactions

to avert the recurrence of the lapse.

1798. Management indicated that our recommendation has been

implemented by making deduction of interest amount of

GH¢78,616.20 claimed from certificate No. 16 due the contractor.

Roof Leakages at the Takoradi City Campus





of by or on account of the covered entity.



1800. Furthermore, Regulation 39 of the Financial Administration

Regulations, 2004 (L.I. 1802) states “A head of department shall

ensure that monies are utilised in a manner that secures both

optimum value for money and the intention of Parliament”.

1801. We noted during our visit to the Takoradi City Campus of the

Institute of Distance Learning, KNUST that the roof of the building

leaks badly. We noted that the slope of the roof was not steep

enough, thus preventing free flow of rain water. The water gets

trapped at the base of the roof and allows it to seep in by capillary

action. Further, we realised that the waterproof system was not well

constructed, as some parts have ripped off allowing rain water to

penetrate/soak through the walls without passing through gutters.

1802. The Director of Works and Physical Development attributed

the leakages to solar panels laid on the roof. We disagreed with his

assertion because, the solar panels have been removed from the roof,

but the roof still leaks.

1803. We urged the Director of Works and Physical Development to

direct the contractor to re-roof the entire building at his own cost or

remedy the leakages in a manner that will not allow water to collect

at the base of the roof. In addition, we recommended a total

replacement of the waterproofing system.

1804. The Director of Works indicated that they have instructed the

contractor to remedy the roof leakages at his own cost and any other

item affected as a result of the leakage.

Engagement of Consultants without recourse to the

Public Procurement Laws 1805. Section 35 of the Public Procurement Act (PPA) 2003 (Act 663)

requires a procurement entity to procure goods, services or works

by competitive tendering except as provided in this Part. It further



states “If the procurement entity uses the method of procurement

other than competitive tendering, it shall include in the record

required a statement of the grounds and circumstances on which it

relied to justify the use of that method”.

1806. Section 66 of the Act 663 as amended by Section 32 of Public

Procurement (Amendment) Act 2016 (Act 914) requires a

procurement entity to invite consulting services by causing a notice

seeking expression of interest in submitting a proposal to be

published in the Public Procurement Bulletin for consultancy

contracts in accordance with the fifth Schedule.

1807. We noted from examination of contract documents that the

University engaged the services of two consultants on its

constructional works without going through the necessary

procurement processes. We did not also come across any letter from

the Public Procurement Authority granting the University a

dispensation to procure the consultants through single sourcing.

1808. Management’s non-adherence to the PPA, 2003 (Act 663) and

the Public Procurement (Amendment) Act (Act 914) brought about

the irregularity.

1809. The University could be paying unreasonable consultancy

fees for services rendered by these consultants since there was no

competition in the engagement process. The act could also result in

conflicts of interest and abuse of the procurement processes.

1810. We recommended to Management to regularise the

engagements of these consultants by seeking for retrospective single

source approval from PPA. Failure of which it will result in the

enforcement of sanctions as specified in Section 92 of the Public

Procurement Act 2003 (Act 663) as amended by Section 51 of the

Public Procurement (Amendment) Act, 2016 (Act 914). Further, we



advised Management to ensure that consultants are always engaged

using the appropriate procurement processes to avert the recurrence

of this anomaly.

1811. Management explained that “the Development Office is

responsible for design and supervision of projects for the entity.

However, the office does not have the full complement of

professionals. Therefore, services for Structural Engineering and

Mechanical and Electrical Engineering are outsourced to our faculty

members. They are therefore paid a reasonable fee as motivation

which is far below the approved fees recommended by Ministry of

Works and Housing. Somewhere last year the entity decided to

formalise the engagement of consultants rendering services to the

entity and further open up the engagement through tendering.”

Discriminatory/Unfair award of contract

1812. Section 92 of the Public Procurement Act, 2003 (Act 663)

indicates that, any person who directly or indirectly influences in

any manner or attempts to influence in any manner the

procurement process to obtain an unfair advantage in the award of

a procurement contract commits an offence.

1813. Clause 4.3(j) of contract tenderers instructions document

requires tenderers to include proposals for subcontracting components

of the works to the tune of 10 percent of the contract price.

1814. We noted from our review of contract documents that,

Emmerce Engineering Services Ltd unfairly won the contract for

Electrical Installation of the 5 – Storey Social Sciences Building

Complex on 27 June 2019 at a contract price of GH¢7,506,806.83

to the disadvantage of other bidders. This is because;

a. According to the tender instructions, the tenderers were to

provide audited accounts for the last 3 years, annual

turnover for the last three years and similar projects



undertaken in the last 3 years. The tender evaluation report

indicated that M/s Emmerce Engineering Services Limited

provided GH¢6 million monetary value as work performed

and annual turnover for any of the last three (3) years (2015

– 2017). However, document attached to the evaluation

report indicated that M/s Emmerce Engineering Services

Limited records of similar work done in the past were,

GH¢36,100.00 for the year 2012; GH¢75,601.70 for the year

2014; GH¢332,998.5 for the year 2015 and GH¢410,293.11

for the year 2017, (65% stage of completion).

b. M/s Emmerce Engineering Services Limited was issued with

certificate of incorporation and to commence business on

6/06/16 and 24/06/16 respectively.

c. Obtained SSNIT Clearance on 15/03/18 with employee

strength of three (3).

d. According to the tax clearance certificate dated 14/03/08,

the company was not liable to tax for the year 2016, and the

chargeable income as at end of year 2017 was GH¢7,244.84.

e. Prior to commencement of the procurement process,

Emmerce Engineering Services Ltd had already been

engaged by Messrs Berock Ventures (the main contractor) to

start fixing all the electrical works of the project.

1815. The tender for the Electrical Installation was carried out using

the National Competitive Tendering process and five tenders were

received and evaluated.

1816. Documents available indicated that M/s Delta Engineering

Limited was the most responsive in meeting the GH¢4million



monetary value of work of similar nature for the last 3 years (2015 –

2017) for 2 projects.

1817. We are unable to vouch that the procurement processes and

the award of the contract were carried out in a fair, transparent and

non-discriminatory manner.

1818. Improper evaluation of tenderers could result in the selection

of contractors who may not deliver to satisfaction to obtain value for

money.

1819. We recommended to Management to make future

procurement processes fair, transparent and non- discriminatory to

all tenderers to obtain value for money for their projects; sanction

the procurement officer, the director of works and development as

well as persons involved in the tender evaluation leading to the

award of this contract as prescribed by section 92 of the Public

Procurement Act, Act 663 as amended.

1820. Management responded that “In accordance with the

requirements as specified in the tender document and after the

evaluation process, Messrs Emmerce was the lowest evaluated

tenderer and recommended by the entity tender committee for

concurrent approval from the Central Tender Review Committee,

which was duly approved with all the supporting documents. Due

process was followed in awarding the Electrical Installation Contract

to Messrs Emmerce Engineering Services Limited therefore value for

money was achieved through competitive tendering.”

Auditors’ comment 1821. The available records reviewed indicated the opposite of

Management’s assertion. We therefore reiterate our

recommendation for compliance.



Procurement Office

Contract packages not properly described in the procurement

plan

1822. Section 21 of the PPA, 2003 (Act 663) as amended by Section

7 of the Public Procurement (Amendment) Act 2016 (Act 914), directs

a procurement entity to prepare a procurement plan to support its

approved programme and should indicate; contract packages

description or lots, estimated cost for each package, the

procurement method approvals needed and processing steps and

times’

1823. We noted that the procurement plan prepared by the

Procurement Unit did not indicate contracts into packages or lots in

order to assign cost to each package. Rather the intended items to

be procured were bulked according to the classification of the items.

For example, plan to procure fleet of vehicles (different types) were

bulked with the lump sum quoted in the plan. In effect, identifying

the estimated price for each type of vehicle was difficult.

1824. The procurement officers explained that Public Procurement

Authority electronic platform for preparing procurement plan does

not permit them to make entries for the lots and that contributed to

the bulking of the items in the procurement contracts.

1825. As a result, procurement monitoring and tracking of actual

contracts awarded to the procurement plan were very difficult. We

could not also, track budgeted amounts to the actual contracts

awarded.

1826. We recommended that procurement plan should be classified

in accordance with contract packages to facilitate the use of

appropriate procurement methods and monitoring of the

University’s procurement contracts.



1827. Management stated that “the Contract Names and

Descriptions are predefined in the Public Procurement Authority

(PPA) electronic platform used to capture entity’s procurement plan.

The system does not allow entities to customize their procurement

plans in respect of the package names and lots descriptions. PPA

should make the system flexible for entities to classify their own

package names and lots descriptions.”

1828. We advised the Procurement Unit to classify the contract

packages, names and lots descriptions as an attachment or

appendix to the procurement plan in order to conform to the

provisions of the PPA Act quoted above.

CCTV cameras for Library and students beds for Clinical Hostel

not supplied according to specifications – GH¢43,533.24

1829. Section 15 of the Public Procurement (Amendment) Act, 2016

(Act 914) requires a procurement entity to pay due regard to the use

of standardised trade terms and standardised conditions where

available in the formulation of the terms and conditions of the

procurement contract, the framework agreement, pre-qualification,

pre-selection agreement and the tender document.


(FAR), 2004 (L.I. 1802) also specifies that the head of the accounts

section of a department shall control the disbursements of funds

and ensure that transactions are properly authenticated to show

that amounts are due and payable.

1831. Regulation 8(1)&(4) of the Financial Administration

Regulations, 2004 again, indicates that Instructions or directives

contained in these Regulations or in Departmental Accounting

Instructions for which no variation is permissible, in any

circumstances whatsoever, shall be deemed to include a provision

that any contravention will amount to a breach of financial



discipline. Sanctions for breach of financial discipline shall include

reprimand, suspension, demotion, interdiction and termination.

1832. Paragraph 7.3(6) of Chapter 7 of the Accounting Policies and

Procedures Manual of KNUST, 2016 additionally, states “When

goods procured arrived and the inspection team finds any defects or

variation in price, the inspection team shall reject the order

immediately.

1833. Our review of procurement contracts disclosed that, M/s

Engineering Systems and Services (ESS) Ltd submitted

manufacturer’s authorisation from Ubiquiti Networks, USA and

agreed with the University to supply and install Ubiquiti 30 No.

Dome, 60 No. Bullet and 4-megapixel Cameras at a total cost of

GH¢154,617.74 with USA origin. However, the supplier supplied

and installed Hikvision 80 No. Dome and 10 No. Bullet cameras

originated from China at the same cost of GH¢154,617.74. Our

further checks from the internet indicated that total cost for the

China goods supplied, including the installation and the 17.5% VAT

charged should not exceed GH¢111,084.50. Meanwhile, ten of the

cameras were yet to be installed and one faulty Dome camera was

yet to be replaced by the Supplier.

1834. We further noted from College of Health Sciences that, the

Procurement Unit awarded a contract to Ashanti Foam Ltd for the

supply of students bunk beds to the Clinical hostel. The contract,

though awarded in bits during the same period, summed up to

GH¢150,216.55. The supplier however, supplied a mixture of bunks

and single beds, but the inspection team did not reject the supplies

after the inspection, as stipulated in the University’s Accounting

Manual. Refer to table 208 for details.



Table 208: CCTV cameras not supplied according to specifications

Price of Ubiquiti Brand Quoted

(USA)

Expected

Contrac Price

GH¢

Price of The

Hikvision Brand (China) (Based on

average current

market price from

the internet)

GH¢

Difference (GH¢)

30 Dome @

GH¢1,316.00 39,480.00

80 Dome @

GH¢770.00 61,600.00

60 Bullet @ GH¢1,363.00

81,780.00 10 Bullet @ GH¢850.00

8,500.00

Installation 24,440.00 Installation 24,440.00

Sub-total 145,700.00 Sub total 94,540.00

Discount (14,110.43) Discount -

Price after

discount 131,589.57

Price after

discount 94,540.00

VAT- 17.5% 23,028.17 VAT –

17.5%(Actual) 16,544.50 6,483.67

Contract Sum

(A) 154,617.74 Contract Sum (B)

111,084.50 37,049.57

DEVIATIONS FROM SPECIFICATIONS- Supply to College of Health Science Clinical

Hostel

Date PV No.

Cheque

No.

Items

Procured Amount

Items

Supplied Amount

8/16/2018 398543 447191

Supply of 123

bunk

beds: -

51,720.24

36 No. single

(39*78.5)

beds

9,957.60

87 No.

(35*75)

87 No.

bunk

(35*75)beds

34,059.63

36 No. (39*78.5) 17.5% VAT 7,703.01

51,720.24

8/16/2018 398545 447184

Supply of

120

bunk

beds: -

4 No. single

(39*78.5)

beds

1,106.40

114 No. (35*75) 43,480.59

60 No.

single

(35*75) beds

14,043.00



4 No.

(39*78.5)

2 No. single

(54*75)

beds

714.90

2 No.

(54*75)

54 No.

bunk

(35*75)beds

21,140.46

17.5% VAT 6,475.83

43,480.59

8/16/2018 398547 447183

Supply of

62 bunk

beds: -

29 No. single

(35*75)

beds 6,787.45

58 No.

(35*75)

22,710.30

3 No. single

(39*78.5)

beds

829.80

3 No.

(39*78.5)

1 No. single (54*75)

beds

357.45

1 No.

(54*75)

29 No.

bunk

(35*75)beds

11,353.21

17.5% VAT 3,382.39

22,710.30

8/16/2018 398548 447182

Supply of

88 bunk beds: -

43 No.

bunk (35*75)beds

16,834.07

85 No.

(35*75)

32,305.42

3 No. single

(39*78.5)

beds

829.80

3 No.

(39*78.5)

42 No.

single

(35*75)

beds

9,830.10

17.5% VAT 4,811.45

32,305.42

Total 150,216.55 150,216.55

1835. The anomalous condition could be attributed to professional

negligence on the part of the following schedule officers Mr. Edward

Nkatia-Asante (Head of Procurement), Mr. John Agyapong, (General

Stores “A”) and Mr Peter Amoako-Yirenkyi (ICT Consultant).



1836. The varied cameras supplied resulted in over-invoicing to the

tune of GH¢43,533.24 made up of contract difference of

GH¢37,049.57 and VAT difference of GH¢6,483.67 against the

University.

1837. We could not however, determine the losses of the varied beds

supplied because the order did not specify the unit prices of the

bunk beds, but quoted the total gross amount against the collective

bunk beds ordered. Nevertheless, the supplier quoted prices against

his supplies to suit the amounts of the orders.

1838. We recommended to Management to recover the difference of

GH¢43,533.24 from M/s Engineering Systems and Services (ESS)

Ltd and pay to the University’s account for verification failure of

which the authorising and approving officer should be made to

refund the amount to the university.

1839. We also recommended that allocated and unallocated stores

items supplied and accompanied invoices and way-bills should be

inspected by the procurement officers together with a technical

officer/user department, stores officers, and representative from

internal audit to ensure that the goods supplied are in accordance

with the specifications ordered. Subsequently, the goods should be

received by the Goods Received Voucher (GRV) and recorded in the

store ledgers before inspection certificate is raised for the payment

to be made to the supplier.

1840. Further, Management of the University should sanction the

inspection teams in accordance with Regulation 8(1)&(4), for not

ensuring that the cameras and the beds received met the required

specifications.

1841. Management responded that “the procurement Director

responded by numerating procurement contract activities when

goods are delivered. He added “Your Memo would be forwarded to



the ICT Consultant for his Confirmation; following the confirmation

from ICT Consultant, we would write to the firm M/s Engineering

System and Services Ltd., to amend the contract sum accordingly

and then demand for the refund of the overpaid amount to the

University. The copy of the letter would be sent to the Deputy

Registrar, Legal Office and the Finance Officer for necessary action;

and the supplier, by that letter, would also be asked to provide

evidence of payment of the VAT component to GRA”.

1842. The procurement Office later presented a copy of the letter

sent to the supplier, ESS to refund the over-paid amount.

Concerning the bunk beds supplies, the Procurement Office

attributed the anomaly to error in the notification of the award.

1843. ESS has not yet responded. We therefore advised the

Procurement office to pursue for the refund of the over-invoiced

amount of GH¢43,533.24. Concerning the bunk beds, we advised

the Procurement Office to ensure that specifications and the related

amounts are clearly stated in future contract awards. This would

enable the inspection teams ensure that the requested specifications

are supplied.

Award of contract to an unqualified Supplier GH¢196,431.30

1844. Section 20A (1) of the Public Procurement (Amendment) Act,

2016(Act 914) instructs that an entity tender committee shall ensure

that at each stage of procurement activity, procedures prescribed in

this Act have been followed, exercise sound judgment in making

procurement decisions and evaluated by the appropriate evaluation

panel constituted by the head of entity.

1845. Similary, Section 22 of the Public Procurement Act 2003 Act

663 as amended by section 8 of the Public Procurement

(Amendment) Act, 2016 (Act 914) instructs that a tenderer in public

procurement shall possess the necessary professional, technical and



environmental qualifications, financial resources; have fulfilled its

obligation to pay taxes and social security contributions; have paid

compensation due for damage caused to property by pollution, have

directors or officers who have not in any country been convicted of

any criminal offence relating to their professional conduct or to

making false statement or misrepresentations as to their

qualifications to enter into a procurement contract, within a period

of ten years preceding the commencement of the procurement

proceedings.

1846. We noted during our review of the University’s procurement

activities that the Entity Tender Review Panel in its 127th evaluation

report disqualified all the three tenderers (Giffred Ventures, PBO and

Distributors Limited and Desktex Gh. Limited) who bided for the

procurement of Academic Skill Text Books to be supplied to the

University’s Library.

1847. The reason for the disqualification was that, the tenderers

were not commercially responsive. However, the Entity Tender

Committee sidestepped the recommendations made by EETP and

awarded the contract to Giffred Ventures on 17th May, 2018 without

any stated reason. We further noted that the owner of Giffred

Ventures M/s Frederick Nyarko also owns 80% shares in PBO

Distributors Ltd.

1848. This is because Social Security Clearance Certificate

submitted by the two business bears the same certificate number

“0925307” with the same Telephone No: 0302-766052 and

0244375015 but each has different business name printed on its

letter head. We noted again, that the delivery period elapsed on 31

August 2018 (ie. eight weeks after the award on 5 July, 2018) but

the supplier has not been able to supply all the books as at the time

of audit in August 2019. Meanwhile, performance security was not



secured from the supplier to compel him to fulfil his obligations in

the contract. Details are shown in table 209.

Table 209: Award of Contract to unqualified contractor

Contract No.

Name of Supplier

Contract Amount

Reasons for disqualificatio

n by (EETP)

Quantity procured

Quantity supplied as

at Aug. 2019

Diff. yet to be

supplied

IFT

NO;AS/KNUST/GD/0034/2018

Giffred

Ventures

196,431.3

0

Did not provide

publisher’s authorisation

426 248 178

PBO and Distributors Limited

184,812.90

Did not provide publisher’s authorisation

Desktex Gh Limited

207,568.56

Provided 90 days tender validity period instead of required 150 days

1849. We attributed the irregularity to the Entity Tender

Committee’s inability to ensure that due diligence was exercised in

the procurement processes.

1850. The act by the Entity Tender Committee does not encourage

fair competition and does not ensure value for money because the

commercial responsiveness was ignored. The contract was also, not

awarded to the lowest evaluated bidder M/s PBO and Distributors

Limited to save the University GH¢11,618.40.

1851. We recommended that the ETC of the University should

ensure that the procurement law is followed in awarding contracts.

ETC should also document tangible reason(s) before

recommendation from the EETP is sidestep. We again, advised the

Director for procurement to ensure that the supplier supplies the

remaining 178 books, failure of which would result in disallowance

of any extra cost that would be incurred against the Director for

procurement, should the contract be re-awarded. We further

recommended to the Management to blacklist Giffred Ventures and

report the issue of falsification of Social Security Clearance



certificates to Public Procurement Authority for investigation, and

appropriate sanctions taken against the two companies. Meanwhile,

sanctions as specifed in Section 92 of the Public Procurement Act

2003 (Act 663) as amended by Section 51 of the Public Procurement

(Amendment) Act, 2016 (Act 914) should be enforced against Entity

Tender Committee members for breaching the procurement

processes.

1852. The Director of Procurement stated that the University

Librarian explained at the ETC meeting that it was difficult for the

suppliers to obtained the publishers authorisations, most especially

when the procurement of the various textbooks were to be sourced

from several Publishers. Again, the existing textbooks in the library

were out-of-date and there was the need to restock the library with

current editions of textbooks as a matter of urgency to facilitate

teaching and learning at the Colleges. The Director of procurement

further said that, ETC accepted the plea of the Librarian and

reviewed the recommendations of the EETP and approved Giffred

Ventures for award of the contract amounting to GH¢196,431.30 on

the basis that: M/s PBO and Distributors Ltd., failed to provide at

least 3 Users that had purchased similar items from them for the

past 2 years; and Desktex Gh. Ltd., provided 90days Tender Validity

Period instead of the required 150 days.

1853. The Director however, stated that, they will comply with our

recommendation with effect from (September 2019).

Negotiation with a supplier without approval from Central Tender Review Committees (CTRC) – GH¢1,982,285.58

1854. Section 64 of the PPA, 2003 (Act 663) as amended by Section

31 of the Public Procurement (Amendment) Act, 2016 (Act 914)

instructs that negotiations shall not take place between the



procurement entity and a supplier or contractor with respect to a

tender submitted by the supplier or contractor.

1855. We noted that the Procurement Officer and the Transport

Engineer met M/s Kwaku Ampaw Agyemang, CEO of Klataa

Engineering Solutions Company Ltd and negotiated a tender

submitted by the company for the supply of 1 No Skip truck – DAF

CF-75 and 1 No Aerial Platform Truck at a total cost of

GH¢1,982,385.58 (ie discounted at 2% of the initial quoted price)

without any documented justification of applying to Central Tender

Review Committees (CTRC) for approval before the negotiation. This

was after one of the bidders had failed to submit the tender

documents and another one had been disqualified for late

submission of the documents, leaving only Klataa Engineering

Solutions Company Ltd as a qualified bidder. The Procurement

Officer however, did not conduct market survey on the vehicle to

enhance the negotiation.

1856. This could result in over-pricing of the supplies.

1857. We recommended to Management to ensure that Section 64

of the PPA, 2003 (Act 663) as amended by Section 31 of the Public

Procurement (Amendment) Act, 2016 (Act 914) should be properly

followed. Management should also seek for permission from the

appropriate review committee before entering into any negotiation

when the need arises.

1858. Management responded “EETP at one of its meetings asked

the Director of Procurement and Transport Engineer to enter into

negotiation with M/s Kwaku Ampaw Agyemang, CEO of Klataa

Engineering Solutions Company Limited on the tender for the supply

of the 1 No. Skip Loader Truck – DAF CF – 75 (Lot 7) at

GH¢1,132,273.10; and 1 No. Aerial Platform Truck (Lot 8) at

GH¢850,112.48; all totalling GH¢ 1,982,385.58; This directive by



the EETP was captured in the Minutes, well documented and was

reported back to the EETP the outcome of the negotiation, which

yielded a 2% discount for KNUST; and The recommendation to

ensure that the Section 64 of the PPA, 2003 (Act 663) as amended

by Section 31 of the Public Procurement (Amendment) Act, 2016 (Act

914) should be properly followed during future proceedings will be

complied with and implemented.

General Issues

Payments without accountability- GH¢348,646.20

1859. Regulation 39 of Financial Administration Regulations 2004

(LI 1802) enjoins a head of the accounts section of a department to

control the disbursements of funds and ensure that transactions are

properly authenticated to show that amounts are due and payable.

1860. We noted that, the four Faculties under College of Agriculture

and Natural Resources (CANR) made payments to the tune of

GH¢348,646.20 without obtaining the related receipts, invoices,

signed sheets, claim forms etc. to account for the amount paid. The

payments were made to officers and suppliers for various activities.

Details are shown in the table 210.

Table 210: Payments without accountability - CANR

Trans Date Trans ID Description PAYEE CHEQ NO Amount Remarks Faculty

4/5/2018 P: 380953 Payment Of Funds Requested For The

Beutification Of The Main Entrance

&Frontage Of Knust.

PROF BEN K B BANFUL

759574 10,000.00 PHOTOCOPY ATTACHMEN

T

AGRIC

1/5/2018 P: 362392 Payment Of Snacks In Lieu Of Cash To

Invigilators During First Semister

2017/18 Exams For Ist Week

SARAH MENSAH

759355 1,602.00

NO SIGNED SHEET, AGRIC

1/11/2018 P: 362402 Payment Of Snack Claims To

Invigilators For The 1st Semester

2017/18 Exams ( Snr Members )

SARAH MENSAH

759356 3,105.00

NO SIGNED SHEET AGRIC



1/12/2018 P: 362409 Payment Of Snack

Claim To Invigilators For 1st

Semister Exams To Technicians,

Security & Others

SARAH

MENSAH

759357 4,329.00

NO SIGNED

SHEET AGRIC

2/1/2018 P: 366707 Advance To

Purchase Pavement Blocks Cement And

Sand To Renovate Walk Way To Fac.

Of Agric

MR

GABRIEL K ACHEAMPO

NG

759409 1,860.50 NO

INVOICES, NO RECEIPT.

THE ATTACHMEN

TS WERE ONLY THE

MEMO AND

ESTIMATE AGRIC

3/1/2018 P: 380795 Payment Of Funds Requested For The

Field Work Aspect For The World Food

Programme ( Ghana Office )

MASTER PATH

VENTURES, Amt=20,000

.00],10% LEVY ON

PROJECT, Amt=13,837

.50], DR ROBERT

AIDOO, Amt=103,937.50]

759520 / 759524

137,775.00

NO RECEIPTS.

ONLY INVOICES ATTACHED AGRIC

5/8/2018 P: 384933 Payment For

Invigilation Allowance For The

2nd Semister 2017/18 Mid - Sem Exams

SARAH

MENSAH

759626 4,999.50 NO

ATTANDANCE AND

SIGNED SHEET

AGRIC

5/10/2018 P: 385195 Payment Of

Invigilation Allowance To Snr.

Members Who Took Part In 2017/18 Midsem Exams

SARAH

MENSAH

759626-

628

14,382.00

NO ATTANDANC

E AND SIGNED SHEET AGRIC

9/12/2018 P: 393300 Accrued

Expenditure For Field Support Data

Analysis And Report

Preparation On Ficessa Project.

DR.

CHRISTOPHER ANTWI

759795 5,000.00

No receipts

AGRIC

9/24/2018 P: 394750 Payment For The

Supply Of (2) Epson Projectors For Use

In The Lecture Rooms. As Per The Attached.

DR. B. K.

MAALEKUU

759882 4,400.00

No receipt

AGRIC

10/3/2018 P: 407684 Payment For The

Supply Of One (1) Samsung Single

Door Fridge To Dr. Christopher Antwi's

Office. As Per The Attached.

DR. LAURA

ATUAH

760148 3,093.20

Photocopy attachments

AGRIC

10/8/2018 P: 413042 Payment For The Supply Of (1) Epson

Projector And A Projector Ceiling

Mount For Use In The Entomology

Lab.

DR. CHRISTOPH

ER ANTWI

760251 5,000.00

Photocopy

receipt

AGRIC



10/9/2018 P: 413967 Refund Of Excess

Expenses ( Vacation Training -Gh

9000.00) To Dr Christopher Antwi .

DR.

ROBERT AIDOO

760260 57,000.00

Copies of the receipts to the

Donors not provided

AGRIC

10/24/2018 P: 391480 Payment For Cost Of Tripple

Protector,Digital Display Air-

Condition Installed To Room No,24 Of

The Dept. Of Crop Science As Per The

Attached.

DR. ROBERT

AIDOO

759770 93,600.00

Copies of the

receipts to the Donors not

provided

AGRIC

5/29/2018 P: 387684 Special Advance To

Kofi E. Ansah For Cost Of Labour And

Hired Vehicle To Carry 8000 Teak

Seedlings To Frnr Plantation.

KOFI E.

ANSAH

757364 2,500.00

Photocopy attachment FRNR

TOTAL 348,646.20

1861. We attributed the anomaly to the CANR Accountant’s inability

to supervise the Faculties Accountants, to ensure that the

beneficiaries provide the required expenditure documents, as quoted

above to account for the payments.

1862. We could not therefore, certify that the payments were made

in the interest of the College and the Faculties.

1863. We advised the College and the affected Faculties’

Accountants to ensure that the payees provide the required payment

documentations to account for the amount paid, failing which the

amount of GH¢348,646.20 including interest at BOG prevailing

interest rate shall be recovered from the Provost, the College

Accountant and the Accountants of the affected faculties. We further

recommended the strengthening of internal controls in the faculties,

to ensure proper accountability of all future transactions.

Purchases without alternative quotations - GH¢213,262.37

1864. Section 20 of the Public Procurement (Amendment) Act, 2016,

(Act 914) states “The procurement entity shall request for quotations

from as many suppliers or contractors as practicable, but shall



compare quotations from at least three different sources that should

not be related in terms of ownership, shareholdings or directorship

and the principles of conflict of interest shall apply between the

procurement entities and their members and the different price

quotation sources”.

1865. Section 92 of the Public Procurement Act, 2003, (Act 663) as

amended by section 51 of the Public Procurement (Amendment) Act,

2016, (Act 914) also, specifies that any person who contravenes any

provision of this Act commits an offence and where no penalty has

been provided for the offence, the person is liable on summary

conviction to a fine not exceeding 1000 penalty units or a term of

imprisonment not exceeding five years or to both.

1866. We noted that the University’s Hospital and Institute of

Distance Learning (IDL) procured goods and services to the tune of

GH¢213,262.37 without obtaining a minimum of three alternative

quotations to ensure compliance with the Public Procurement Act.

Details provided in table 211.

Table 211: No Alternative Quotations-University Hospital

Date Ref ID Description Payee Cheque Number

Amount GH¢

10/1/2018 P: 362421

Cost of 60 pieces of A4 sheets supplied to the hospital


2543 5,040.00

10/1/2018 P: 362423

Cost of 39 boxes of floor tiles 78 sqm,

2 gallons asolastic and others supplied to the hospital's environmental unit


2545 4,691.00



10/1/2018 P: 362434

Cost of 4 gallons of acid for washing terrazzo, 50 bags of Portland cement and 1 trip of sand

supplied to the hospital for the peer review exercise

August 6th Company

Limited

2538 4,350.00

10/1/2018 P: 362390

Cost of 90 boxes of (180 square meter)

floor tiles and others supplied to the University hospital


2537 8,160.00

26-03-18 P: 379862

Being payment of special advance to J. Keteku- Atiemo for the purchase of essential medicines for the hospital

Gopens Company Limited

2840 8,342.00

23-05-18 P: 386755

Being cost of 1 no. Nasco air conditioner 1.5 hp for eye clinic, 10 no. Wall clock (large) for OPD and others.

Xpert Vision Computers

3107 7,077.08

19-06-18 P: 391372

Being payment of 1 No. bilirubin direct, 2 No. Hdl cal and 2 No. multical supplied

to the hospital lab.

Arcoa Ghana Limited

3333 8,649.67

19-06-18 P: 391377

Being payment of

2 No .abx diluent 20l and 5 No. abx whitediff 1l supplied to the Labouratory unit.

Arcoa Ghana Limited

3329 7,228.74

19-06-18 P: 391376

Cost of 5 no. Abx whitediff il supplied to the hospital's Labouratory unit - Arcoa Ghana Limited

Arcoa Ghana Limited

3332 5,149.20

25-07-18 P: 396650 Being cost of 20 boxes of interfold tissue paper

Nationwide Medical

3424 5,652.00



supplied to the hospital - Nationwide Medical Supplies

Supplies Limited

25-07-18 P: 396706

Being cost of 150 packets glucometer strips supplied to the hospital's Labouratory unit

Panacea Pharmaceutical Ltd.

3423 8,730.00

7/9/2018 P: 401490

Payment to perfect

home design for the supply and installation of curtains at the director of university health services duty post(no. 44 ridge road) KNUST

Perfect Home Design

3657 9,628.00

1/10/2018 P: 403610

Being cost of 550 ampoules of morphine injection 10mg supplied to the hospital - pharma laud k. Limited

Pharma Laud K. Limited

3716 9,603.00

3/10/2018 P: 405841

Cost of 18,000 tablets of amlodipine 10mg tablet supplied to the university hospital.

C. Crentsil Pharmacy

3708 9,603.00

3/10/2018 P: 405837

Cost of 28.000

tablets of losartan 50mg tablet

supplied to the hospital.


3709 9,506.00

8/11/2018 P: 409827

Cost of 28,000 tablets of losartan 50mg tablet -- C. Crentsil Pharmacy Pv No. 1649/18


3830 9,506.00

1/6/2018 P: 388263

Payment to Nab's Medical Supplies being cost of 18 No. cidezyme supplied to the hospital's theatre unit

Nab's Medical Supplies

3207 6,111.00



1/6/2018 P: 388267

Payment to Nab's Medical Supplies being cost of 30 tins of presept tablet 2.5g

supplied to the hospital's environmental unit

Nab's Medical

Supplies

3209 7,275.00

1/6/2018 P: 388265

Payment to Nab's Medical Supplies

being cost; of 12 no. Cidex opa supplied to the hospital's theatre unit

Nab's Medical Supplies

3208 5,238.00

21-02-18 P: 370334

Being cost of 3000 pieces of blood giving set supplied to the hospital's Labouratory unit

Unique - Luv Company Limited

10100 4,656.00

21-02-18 P: 370319

Being cost of 250 pieces of instant hand sanitizers supplied to the hospital

Kannysco Enterprise

10098 5,000.00

21-02-18 P: 370299

Being cost of 1,200 pieces of disposable aprons supplied to the hospital

Kanb Prestige Venture

10089 4,800.00

21-02-18 P: 370338

Cost of 4 no. Ggt, 4 no. Albumi, 4 no. Bilirubin and

others supplied to the hospital's

Labouratory (Arcoa Ghana ltd.)

Arcoa

Ghana Limited

10099 8,335.00

15-10-18 P: 407270

Being cost of 780 vials of artesun 120mg injection supplied to the hospital

Guilin Pharmaceuticals

10558 9,684.48

15-10-18 P: 407172

Cost of 28,000 tablets of losartan 50mg tablet to the university hospital

C. Crestsil Pharmacy

10578 9,506.00

11/12/2018 P: 413404

Being cost for the supply of 1,110of ampoules of

vitamin k injection

Pharma Laud K. Ltd

10715 9,690.30



to the hospital - pv no. 1767

Total

191,211.47

IDL

Date Ref ID Description Payee Cheque Number

AmountGH¢

26/4/18 P: 383810 simulation software

MSC

International Business

22,050.90


1867. We attributed the irregularity to the Procurement Officer’s

disregard for the provisions of the Public Procurement Act.

1868. The absence of the three different quotations has denied the

departments and the faculty from obtaining competitive pricing of

goods and services to ensure that, value for money is obtained.

1869. We recommended to Management to ensure full compliance

with the provisions of the Procurement Act in its procurement

activities. Meanwhile, Managements of the Units should provide the

basis for evaluating the procurements, failing which the authorising

and the payment officers should be sanctioned in accordance with

Section 92 of the Public Procurement Act, 2003, (Act 663) as

amended by section 51 of the Public Procurement (Amendment) Act,

2016, (Act 914).

1870. Management of the University Hospital indicated that the

hospital makes purchases through the main procurement and the

local procurement. Procurement committee usually hedges prices

for three months which means within the three months period, they

will take delivery from the selected supplier at the agreed price. At

the end of the three months, before the new selection process is

completed, there may be the need to buy some items or drugs. Due



to the nature of work at the hospital, they are forced to take delivery

using the old agreed price from the previously selected supplier by

the procurement committee. They do that until procurement process

for the next purchase is completed.

Auditors’ comment 1871. Hospital Management did not show evidence of a prior

arrangement of the procurement committee and the suppliers.

Management did not also refer the initial awarded contracts and the

hedge prices against subsequent orders to forestall sanity in the

procurement activities. We further advised that re-order levels must

be strictly adhered to in order to avoid the need to buy from outside

of the agreed arrangement.

Transacting business with unregistered suppliers -

GH¢1,488,550.31

1872. Pursuant to Section 3(p) of the Public Procurement Act, 2003

(Act 663) which requires Public Procurement Authority (PPA) to

maintain a database of suppliers, contractors and consultants and

a record of prices to assist in the work of procurement, PPA by a

circular dated, 18th May, 2018 to all Ministries, Departments and

Agencies and subsequently on its website dated 24/05/2018,

requested all Suppliers, Contractors and Consultants doing

business with the Government to register on PPA’s Database so as

to inform policy formulation. Failure to register with the Public

Procurement Authority (PPA) renders a Supplier ineligible to

transact business with government institutions in Ghana’s Public

Procurement Process.

1873. Section 2.4 of the Public Procurement Manual states “a

Procurement Unit is an outfit in a Procurement Entity with the

responsibility of superintending procurement. The Head of the

Procurement Unit (andhis/her team) shall be responsible for

undertaking and co-ordinating all detailed procurement activities



within the procurement entity. This shall include: maintaining and

updating the database of suppliers, contractors and consultants”

1874. The University therefore, maintains the PPA database of

suppliers to inform and guide the various units when sourcing for

quotations for procurement purposes.

1875. Section 20 of the Public Procurement (Amendment) Act, 2016,

(Act 914) also states “The procurement entity shall request for

quotations from as many suppliers or contractors as practicable, but

shall compare quotations from at least three different sources that

should not be related in terms of ownership, shareholdings or

directorship and the principles of conflict of interest shall apply

between the procurement entities and their members and the

different price quotation sources”.

1876. We noted that seven departments and Colleges of the

University; main Finance office, Dean of Students, Institute of

Distance Learning, University Hospital, Katanga Hall, College of

Agriculture and Natural Resources (CANR), and Graduate School

procured goods and services amounting to GH¢1,488,550.31 from

suppliers not on the Public Procurement Authority’s (PPA) database

as well as the University’s registered list of suppliers. We further

noted that alternative quotations supporting most of the

procurements of six departments and Colleges; main Finance office,

College of Engineering, Katanga Hall, College of Agriculture and

Natural Resources (CANR) College of Health Sciences and Dean of

Students were sourced from suppliers not registered with the PPA

and the University.

1877. The Procurement officers’ disregard for the tenets of the PPA

Act occasioned the irregularity.



1878. Procuring from unregistered suppliers and without

appropriate alternative quotations does not promote

competitiveness. Procurement processes could also be abused and

the pricing may be unfair and unreasonable. Besides, quality

services may not be obtained to ensure attainment of value for

money.

1879. We recommended to Management to ensure that, in future,

goods and services are procured from only PPA and the University’s

registered suppliers. Management should also ensure that,

alternative quotations for procurements are obtained from only PPA

and the University’s registered suppliers to avoid sanctions.

Meanwhile, sanctions as specifed in Section 92 of the Public

Procurement Act 2003 (Act 663) as amended by Section 51 of the

Public Procurement (Amendment) Act, 2016 (Act 914) should be

enforced against the Procurement officers of the Departments and

Colleges, the authorising and the paying officers.

1880. Response from the various Units indicated that they have

noted our recommendations for compliance, but commented that

majority of the suppliers mentioned were suppliers registered with

the University.

Duplicity of Tax Identification Number (TIN) - GH¢251,799.41

1881. Section 13(3) & (4) of the Revenue Administration Act, 2016,

(Act 915) states “A taxpayer identification number issued under this

Act is not transferable. A person may have only one taxpayer

identification number at a time and it shall be used for purpose of

all the tax laws”.

1882. Section 41(9) (a) & (b) of the VAT Act, 2013 (Act870) also

states “A person who issues a false tax invoice or sales receipt, uses

a false taxpayer identification number is in addition to the penalty

provided in section 58 liable to pay a penalty of an amount not more



than five hundred currency points or three times the amount of tax

involved, whichever is higher”.

1883. We noted that, suppliers of goods and services to the various

departments and Colleges of the University, in most cases, issued

VAT invoices to support their transactions. However, our enquiry to

confirm the validity and genuineness of the Tax Identification

Numbers (TINs) quoted on the VAT invoices disclosed the following;

i. TINs quoted were invalid,

ii. TINs quoted were in the names of different suppliers,

iii. different suppliers quoting the same TIN on VAT invoices

issued from the same VAT invoice book,

iv. Different suppliers quoting the same TIN on different VAT

invoice books.

1884. Meanwhile, VAT totalling GH¢251,799.41 was included in the

cost of the supplies totalling GH¢6,480,604.97. The summary is in

table 212.

Table 212: Duplicity of Tax Identification Number (TIN)

Department

Net Amount

GH¢

Vat

Charged GH¢

Main Finance Office 1,582,908.21 88,723.30

College of Engineering 83,611.29 1,982.21

College of Engineering (Project) 2,451,233.96 71,659.96

University Hospital 229,524.65 6,684.59

Institute of Distance Learning 268,496.98 14,627.68

College of Humanities and Social Sciences 24,865.29 883.36

Basic School 258,291.97 7,748.76

University Hall 229,800.91 11,041.96

College of Health Sciences 1,019,459.62 34,250.74

College of Agriculture and Natural Resources 313,061.41 14,196.85



College of Science 19,350.68

TOTAL 6,480,604.97 251,799.41

1885. Management’s decision to obtain VAT invoices to support

payment vouchers without carrying out due diligence on the

suppliers to confirm the genuineness of the information provided

before transacting business with them, resulted in the irregularity.

1886. We therefore could not confirm the authenticity of these

transactions. Additionally, VAT component on the cost of the

transactions may not be remitted to GRA.

1887. We recommended that the Provosts, Departments;

Accountants of the various colleges and the Management of the

University should blacklist these suppliers and notify the PPA as

well as the Ghana Revenue Authority accordingly for appropriate

sanctions to be applied in accordance with section 58 of the VAT Act,

2013 (Act 870).

1888. Response from the affected departments and Colleges

indicated that Ghana Revenue Authority (GRA) has not provided any

medium to the University to check the authenticity of VAT invoices

from suppliers. The University submits returns to GRA and expected

them to identify TIN numbers that are incorrect and notify the

University.

Auditors’ comment 1889. In registering vendors of the University, due deligince carried

out should detect fraudulent tax identification numbers when

supplied. We therefore blamed this lapse on the University’s weak

internal oversight control.

Absence of Contract Registers - GH¢ 24,207,410.01

1890. Section 1.10.2 of the Public Procurement Authority Manual

on the Public Procurement Act 2003 (Act 663) requires Procurement



Units to maintain Procurement Dossiers and Contract Registers, but

each Procurement entity must ensure that complete documentation

is maintained in respect of all procurement activities and for

contracts and agreement entered into.

1891. We noted that the Development office is responsible for all

contract works of the University. However, a contract register, which

should contain very important information to track payments and

progress of the constructions, was not kept. Rather, a list showing

the projects under construction was maintained. We further noted

that the Departments and Colleges (Institute of Distance Learning,

College of Health Sciences, Dean of Students, College of Engineering

–project and Basic School) that owned the projects did not maintain

contract registers to track total progress payment of

GH¢24,207,410.01 made to Contractors. Refer to table 213 for

details.



Table 213: Constructions without Contract Register

Date Ref. ID Description Payee Cheque No. Net Amount

GH¢

01-Mar-18 P: 371885

Payment of Certificate No.12 for the construction of 5-storey classroom block &

educational resort facilities for the Takoradi City Campus for KNUST IDL Centre (phase 1)

Messrs

Antartic Contract Works Ltd

Transfer 3,542,810.69

17-May-18 P: 385968

Payment of Certificate No.13 for the construction of 5-storey classroom block & educational resort facilities for the Takoradi City Campus for KNUST IDL Centre (phase 1)

Messrs Antartic Contract Works Ltd

238 3,834,741.95

04 Sept-18 P: 400990

Payment of Certificate No.6 for the Construction of 4-storey offices and classroom block for IDL-KNUST/Tamale City Campus (phase 1)

Myturn Company Limited

101 493,864.78

14-Sep-18 P: 402220

Structural Consultancy fee for claim No.10 for proposed 5 storey classroom block & Educational Resort facilities for KNUST Takoradi Campus (phase 1)

Sonic Engineering Services

495816 112,898.50

14-Sep-18 P: 402222

Mechanical, Electrical & ICT Consultancy Services fee claim No. 4 for proposed 5-

storey classroom block and Educational Resort facilities

Sonic Engineering

Services

495791 71,579.83



for KNUST at Takoradi Campus (IDL)

31-Dec-18 P: 415598

Mechanical, Electrical & ICT Consultancy Services fee claim No. 5 for proposed 5-storey classroom block and Educational Resort facilities

for KNUST at Takoradi Campus (IDL)

Sonic Engineering Services

496547 78,972.21

Total 8,134,867.96

COLLEGE OF HEALTH SCIENCES

Date Pv No Description Payee Cheq.No Amount

3/8/2018 P: 374437

PAYMENT TO MESSRS ASIB LIMITED FOR THE CONSTRUCTION OF CLASSROOM BLOCK FOR ALLIED HEALTH SCIENCES PER ATTACHED

MESSRS ASIB LIMITED 904896

498,164.47

5/11/2018 P: 385282

PAYMENT TO THE MANAGING DIRECTOR MESSRS ASIB LIMITED FOR CONSTRUCTION OF PROPOSED CLASSROOM BLOCK

FOR FACULTY OF ALLIED HEALTH SCIENCE FOR KNUST. CERTIFICATE NO.10

THE MANAGING

DIRECTOR MESSRS ASIB LIMITED 905010

234,829.99

5/16/2018 P: 385762

PAYMENT TO THE MANAGING DIRECTOR MESSRS ASIB LIMITED FOR CONSTRUCTION OF PROPOSED FIVE STOREY

CLASSROMS AND OFFICES FOR SCHOOL OF NURSING (PHASE 1) KNUST- KUMASI CERTIFICATE NO.1

THE MANAGING DIRECTOR MESSRS ASIB LIMITED 905011

1,183,904.90



6/20/2018 P: 391548

CONSTRUCTION OF PROPOSED FIVE STOREY CLASSROOMS AND OFFICES FOR SCHOOL OF NURSING

THE MANAGING DIRECTOR MESSRS ASIB LIMITED 905207

1,384,721.50

12/18/2018 P: 414727

CONSTRUCTION OF PROPOSED FIVE STOREY CLASSROOMS AND OFFICES FOR SCHOOL OF

NURSING

MESSRS ASIB

LIMITED 908719

602,176.03

3/28/2018 P: 380225 PAYMENT TO MESSRS MINING AND BUILDING CONTRACTORS LIMITED FOR CONSTRUCTION OF 3 STOREY CLASSROOM BLOCK/LECTURE THEATRE FOR SMS (CLINICAL STUDENTS) PER ATTACHED

MESSRS MINING AND BUILDING CONTRACTORS LIMITED

905108 843,091.78

7/18/2018 P: 395547 PAYMENT TO MESSRS MININING AND BUILDING CONTRACTORS LIMITED FOR THE CONSTRUCTION OF 3 STOREY CLASSROOMS BLOCK LECTURE FOR SMS PER ATTACHED


905384 594,617.73

5/16/2018 P: 385703 BEING PAYMENT FOR THE CONSTRUCTION OF THE

PROPOSED 4-STOREY BLOCK OF

LECTURE HALLS FOR FACULTY OF PHARMACY AT KNUST-KUMASI

MESSRS ANTARTIC

CONTRACT

WORKS LIMITED

581953 357,221.14

5/29/2018 P: 387611 BEING FOR THE CONSTRUCTION OF 3-STOREY CLASSROOMS BLOCK/LECTURE THEATRE FOR SMS(CLINICAL STUDENTS )


581954 55,216.76

10/25/2018 P: 408342 PAYMENT TO THE MANAGING DIRECTOR STEVO COMPANNY LIMITED FOR THE CONSTRUCTION OF KITCHEN AND

MESSRS STIVO COMPANY LIMITED

753355 48,945.95



LAUNDRY FOR SMS GUEST HOUSE

TOTAL 5,802,890.25

DEAN OF STUDENTS

CONSTRUCTION OF SRC HOSTEL

DATE REF. ID DESCRIPTION PAYEE CHEQUE NO. NET

AMOUNT

10 Apr 2018 P: 416566 CONSTRUCTION OF STUDENTS HOSTEL FOR SRC CERT. NO. 15

MESSRS GEOFRA CONSTUCTION WORKS

060356-357 578,460.10

7 Jun 2018 P: 416571 PROPOSED CONSTRUCTION OF SRC HOSTEL CERT. NO. 16

MESSRS GEOFRA CONSTUCTION WORKS

060365-366 763,937.77

10 Aug 2018 P: 416574 PAYMENT FOR CERT. NO. 17 FOR PROPOSED SRC HOSTEL

MESSRS GEOFRA CONSTRUCTION WORKD LTD

060374-375 1,158,237.74

20 Dec 2018 P: 421097 PAYMENT TO GEOFRA CONSTRUCTION FOR THE PROPOSED CONSTRUCTION OF SRC HOSTEL

MESSRS GEOFRA CONSTRUCTION WORKS

060384 382,870.00

CONSULTANTY

15 Mar 2018 P: 416565 PAYMENT OF CONSULTANCY SERVICES

STRESCON ENGINEERING SERVICES

060354-355 5,021.10



4 May 2018 P: 416569 PAYMENT OF CONSULTANCY FEE FOR PROPOSED SRC HOSTEL

STRESCON ENGINEERING SERVICES

060363-364 6,324.04

10 Jul 2018 P: 416573 PAYMENT FOR CONSULTANCY SERVICES FOR THE

PROPOSED STUDENT HOSTEL

STRESCON ENGINEERING CONSULTANCY LTD

060372-373 7,763.35

14 Aug 2018 P: 421092 PAYMENT TO SONIC ENGINEERING FOR THEIR SERVICES RENDERED TO SRC HOSTEL

SONIC ENGINEERING SERVICES

060369 17,172.42

13 Dec 2018 P: 416576 PAYMENT FOR MECHANICAL, ELECTRICALS AND ICT SERVICES FEE CLAIM NO. 4 FOR THE PROPOSED STUDENT HOSTEL

SONIC ENGINEERING SERVICES

060380-381 23,854.47

TOTAL 2,943,640.99

213b: College of Engineering - Project

Date PV ID Details Payee Chq. No.

Amount (Net) GH¢

17-Apr-18 124/18

BEING PAYMENT OF CERT. 6 FOR THE CONSTRUCTION OF PROPOSED

RWESCK BUILDING ASIB 106

3,981,030.05

12-Jun-18 196/18 BEING PAYMENT OF CERT. NO. 7 OD PROPOSED RWESCK BUILDING

190 2,467,867.57

Total 6,448,897.62



1892. An additional amount of GH¢877,113.19 was paid to ASIB

LTD during the period under review. The payment related to

certificate no. 1, issued by the contractor constructing a

Library/Science Labouratory for the Basic School. However, no

contract register was kept.

1893. Lack of effective supervision and ineffective internal control

at the University resulted in this lapse leading to double payment on

certificate No. 7 for the Construction of a 4-storey office Complex

and classroom block for IDL-KNUST/Tamale City Campus (phase 1)

by GH¢566,951.47 to the Project Contractor (Messrs MyTurn Ltd)

without detection.

1894. We recommended to management to retrieve the

GH¢566,951.47 paid the Project Contractor (Messrs MyTurn Ltd)

within three months from receipt of this report. We further urged the

Head of the Development office and the Accountants for the

Departments and Colleges to keep contract registers for all projects

under their watch.

1895. We also advised Management to sanction any responsible

officer who fails to maintain the register in accordance with Section

92 of the Public Procurement Act 2003 (Act 663) as amended by

Section 51 of the Public Procurement (Amendment) Act, 2016 (Act

914).

1896. Recommendations are noted for compliance.

Fixed Assets Register Not Updated - GH¢4,520,710.32

1897. Section 52 of the Public Financial Management Act, 2016,

(Act 921) requires a Principal Spending Officer of a covered entity,

state-owned enterprise or public corporation to be responsible for





custody and management of the assets. It further provides that a

Principal Spending Officer shall maintain a register of lands and

buildings under the control or possession of that Principal Spending

Officer and all other assets under the control or possession of the

Principal Spending Officer. Additionally, it indicates that the register

is to contain a record of the details of all major items of furniture

and equipment including furniture and equipment issued for either

government quarters or offices, large tools for government works,

plant, equipment and vehicles.

1898. Our review of records disclosed that the College of

Engineering, College of Science, College of Arts and Built

Environment and College of Humanities and Social Sciences did not

maintain a complete and up-to-date asset registers to keep track of

all assets procured during the period under review amounting to

GH¢4,520,710.32. The registers were deficient in information with

regards to the serial numbers, unique identification numbers, the

make, depreciation rates and method, among others. We also

identified instances where different types of assets were marked with

the same identification numbers. Values of assets procured by the

three Colleges during the period under review are shown in table

214.

Table 214: Values of assets purchased by the four Colleges

Faculty/School/Centre Cost of PPE (GH¢)

College of Engineering 1,238,090.30

College of Science 1,528,679.23

College of Arts and Built Environment 656,051.79

College of Humanities and Social Sciences 1,097,889

Total 4,520,710.32

1899. We attributed the anomaly to inadequate coordination

between the user faculties and the finance offices. Delay in labelling

assets acquired with unique identification numbers, and assigning



codes with only alphabets without numbers also contributed to the

lapse.

1900. The situation could create an opportunity for theft, diversion

and misuse of assets. Assets without identification mark may be

replaced with inferior types.

1901. We urged the Colleges’ Finance Officers to liaise with the

heads of departments and Faculties to update the assets registers

immediately and inform us for verification. We further recommended

to Management of the Colleges to institute measures that will

enhance quick recording of assets acquired and the related

information in the assets registers.

1902. Management of the Colleges noted our recommendations for

compliance, but added that there is an on-going exercise to label all

University assets which is being conducted by the Estate Office and

as soon as it is completed, the fixed assets register would be updated

with all the necessary information.

Overdue Borrowed Books –GH¢157,164.92 1903. Section 52 of the Public Financial Management Act, (PFMA)

2016 (Act 921) directs that, a Principal Spending Officer of a covered




systems exist for the custody and management of the assets. A

control system specified in subsection (1) shall be capable of

ensuring that:

(a) preventive mechanisms are in place to eliminate theft, loss,

wastage and misuse; and



(b) processes, whether manual or electronic, and procedures

are in place for the effective, efficient, economical and


1904. Page 15 of the Kwame Nkrumah University of Science and

Technology Library Guide, 2014, also specifies among others that,

normal period for keeping a borrowed book is 14 days. Teaching and

Research staff and others with special reasons for doing so may

request longer periods, but all books must be returned before the

end of the current academic year. It further indicates that, all

borrowers (including members of staff) are subject to fines for books

that are overdue.


Technology Library Guide, 2014, indicates that a loss of books by a

user is a commitment of an offence and shall be liable to pay twice

of the current price of the book in cedis plus servicing charges.

1906. Contrary to the provisions of the above quoted PFMA and the

University guidelines, our review of five Colleges; Engineering,

Science, Humanities and Social Sciences, Agriculture and Natural

Resources and Health Sciences library records disclosed that 219

books lent to lecturers and students from 2007 to 2018 were yet to

be returned to the respective libraries as at April 2019. The current

market value for 155 out of the 197 books totaled GH¢78,582.48.

We could not obtain prices for the remaining 42 books.

1907. Meanwhile, the beneficiaries (Lecturers and students) did not

assign reasons for keeping the books for the long period. The

summary is shown in table 215.



Table 215: Overdue Borrowed Books

COLLEGE

NO. OF UNVALUED

BOOKS

NO. OF VALUED BOOKS

AMOUNT

GH¢

AMOUNT PLUS PENALTY (GH¢)

College of Engineering 14 86

45,989.44

91,978.84

College of Humanities and Social Sciences 21

20 12,087.46

24,174.92

College of Science 6 21

10,533.09

21,066.18

College of Agriculture

and Natural Resources 0

13

4,061.60

8,123.20

College of Health Sciences 1

15 5,910.89 11,821.78

Total 42 155 78,582.48 157,164.92

1908. The Librarians of the various Colleges inability to strictly

enforce sanctions provided in the library guide occasioned the lapse.

1909. The absence of the books has deprived students and other

lecturers from accessing the books for reading, referencing or

borrowing to enhance their academic activities.

1910. We urged the beneficiaries (lecturers and students) to return

the books, failing which, Management should recover a total amount

of GH¢157,164.92 being, twice the market price of the books from

them, as contained in the library guide of the University.

Management should also ensure that defaulters for the non-valued

books or the Librarians pay twice the values of similar books. We

also recommended to management to sanction the librarians for not

living up to their responsibilities of enforcing the library rules;

ensure regular inventory stock taking and ensure that sanctions

provided in the Library guide are applied to any default borrower.

1911. Reponses from the Colleges indicated that efforts were being

made to retrieve the books; letters have been written to users who

are keeping the books to return them with immediate effect, other



measures have also been taken to ensure that all the books are

retrieved.

Missing Library Books – GH¢ 25,435.30

1912. Section 52 of the Public Financial Management Act 2016, act

921 directs that A Principal Spending Officer of a covered entity,




custody and management of the assets. A control system specified

in subsection (1) shall be capable of ensuring that preventive

mechanisms are in place to eliminate theft, loss, wastage and

misuse; and processes, whether manual or electronic, and




Technology Library Guide, 2014, also indicates that a loss of books

by a user is a commitment of an offence and shall be liable to pay

twice of the current price of the book in cedis plus servicing charges.

1914. Our stock count of the library books of the College of

Humanities and Social Sciences and College of Science noted that

31 out of the stock of books could not be found. The current market

value of the 26 missing books out of the 31 totalled GH¢12,717.65.

The prices of the remaining 5 could not be obtained. Details shown

in table 216.



Table 216: Missing Library Books

College of Humanities and Social Sciences - Faculty of Law

BARCODE Class NO Title Author Available

Quantity

Physical Quantity

Counted

Quantities

Missing

Price Per

Book USD$

Rate

GH¢

HD111bar

Land Resource

theEconomics of Real Estate

Barlowe, Releigh

1 0 1 240.02 5.1094

1,226.36

K487.S6 Towards a new legal common sense; laws, glob

De Sousa Santos Baave

1 0 1

56.87 5.1094

290.57

KJA147jol

Historical introduction to

the study of Roman law

Jolowicz,

H.F. 2 1 1

103.2 5.1094

527.29

KD4645gri The politics of

Judiciary

Griffith

J.A.G. 3 2 1

63.82 5.1094

326.08

KD3930fen

Constitutional and Administrative

Law

Fenwick, Helen

4 1 3

143.1 5.1094

2,191.93

KD1949har Principles of tort law

Harpwood Vivienne

2 1 1 115.8 5.1094

591.67

Business School

20067000755 HF5389rob

Business

Etiquuette

David,

Robinson 1 0 1 109.95 5.1094

561.78

20067000073 HD31new

The process management behaviour and

practice

Newman,

William 1 0 1 116.9 5.1094

597.29

20090011018 BF318.M38maz

Learning and behaviour

Mazur, E. James 1 0 1 95 5.1094

485.39



20060000203 HA29hoe

Basic statistics business and

economic Hoel, Paul G 1 0 1 25.21 5.1094

128.81

20000094666 HF5549.2hun

Human resources management

Beardwell, Lan 1 0 1 67.11 5.1094

342.89

20067000383 HD58.7tho

Work Organisations: a critical

introduction

Thomson

Paul 1 0 1 5.84 5.1094

29.84

20067000782 HF5438mor

World class selling: How to

turn adversity into success Mortell Art 1 0 1 19.95 5.1094

101.93

20067001528 HF5485fra

World-class warehousing

and Material Handling

Frazelle Eward 1 0 1 40.21 5.1094

205.45

20067000004 BD438

The 48 law of

power

Greene,

Robert 1 0 1 16.41 5.1094

83.85

Faculty of Social Science

20060000533 BD21 whi Introduction to Philosophy

John Perry, Michael Bratman, et al. 1 0 1 85.45 5.1094

436.60

20060000536 BD418.3 bog

Minding Minds: evolving a reflexive ming by

interpreting others

Radu J. Bogdan 1 0 1 21.95 5.1094

112.15

20060000643 BF121bra

Psychology today: an

introduction

Collective, Richard

Holme, et al 1 0 1 5.98 5.1094

30.55



20060000573 BF121cro

Psychology

Science, behaviour and life.

Neil R. Carlson ,

Miller Jr., Harold L., et al. 1 0 1 207.12 5.1094

1,058.26

20060003011 B1561wil

More nineteenth

century studies: a group of honest doubters Basil Willey. 1 0 1 141.96 5.1094

725.33

Total

22

10,054.02

College of Science

BARCODE NO

CLASSIFICATION NO

AUTHOR TITLE QTY

PRICE PER

BOOK USD$

Rate GH¢

20090014483 QH430INT ANTHONY, JF GRIFFITHS ET AL

AN INTRODUCTION TO GENETIC ANALYSIS

1 191.17 5.1094 976.76

20090012963 QA76.7HOR HOROWITZ ELLIS

FUNDAMENTALS OF PROGRAMMING LANGUAGES

1 65.27 5.1094 333.49

20090011030 QA76.6TAN TANEBAUM, ANDREWS

STRUCTURED COMPUTER ORGANISATION

1 183.64 5.1094 938.29

20090013538 TX376PRI PRIPP HUGO STATISTICS IN FOOD SCIENCE AND NUTRITION

1 81.24 5.1094 415.09

TOTAL 4 2,663.63

https://www.amazon.com/Neil-R-Carlson/e/B001ILM8RS?ref=sr_ntt_srch_lnk_7&qid=1562537377&sr=8-7





https://www.amazon.com/Basil-Willey/e/B001HPR26W?ref=sr_ntt_srch_lnk_1&qid=1562537699&sr=8-1



College of Humanities and Social Sciences

BARCODE Class NO Title Author Available Quantity

Physical

Quantity Counted

Quantities Missing

PRICE

PER BOOK USD$

Rate

GH¢

Business School

20100024621 HB171.5cas Economics Case, Karl E 1 0 1 0 0 -

20067000862 HC865dev Development and Employment

Ndegwa, Philips 1 0 1 0 0 -

Faculty of

Social Science

20060000556 BF121car

Carlson study

guide and unit mastery program to accompany 2 0 2

Out of print -

Total 4

College of Science

BARCODE NO CLASSIFICATION NO

AUTHOR TITLE QTY PRICE PER BOOK USD$

Rate GH¢

20090003624 QD151NEW EAV, EBS-WORTH ET AL

NEW PATHWAYS IN

ORGANIC CHEMISTRY

1 5.1094 -

Total 2



1915. Absence of CCTV Cameras, electronic scanner and other

security checks at the library to deter and detect incident of theft,

contributed to this lapse.

1916. The situation has deprived users of the library access to the

missing books. Besides, the Colleges would be incurring excess

expenditure to replace them.

1917. We advised the two librarians of the Colleges to locate the 26

books for audit inspection or be held liable for the amount of

GH¢25,435.30 being twice the cost, and the 5 other books whose

market price we were unable to determine. We also recommended to

Management to equip the library with security systems such as

CCTV cameras, electronic alarm systems etc. at the entrance and

exit of the library to detect unauthorised removal of library

materials.

1918. Response from the two Colleges indicated that the Faculty

Librarians and Staff of the affected Libraries have been duly notified

and strenuous efforts are being made to search for the books.

College of Science added that, they planned installing CCTV cameras

and book detection gate at the library so that if a student or any

other person goes out with unauthorised book, it will be detected

Operating multiple and dormant bank accounts

1919. Paragraph 11.1(1) of chapter 11 of the KNUST Accounting

Policies and Procedures Manual, March, 2016 states “No bank

account of any type may be opened in the name of the University or

any department/unit of the University unless authorised by the Vice

Chancellor on the recommendation of the Finance Officer”.

1920. Our review of cash management of the College of Engineering

disclosed that, the College operates 16 Bank accounts, apart from

the five services accounts. Three out of the 16 were found dormant,



with the balances ranging between GH¢51.98 and GH¢7,000.

Management however, could not justify the operation of the multiple

bank accounts. Details shown in table 217.

Table 217: Bank Accounts in operation

S/

No

Unit

Name

Account

Name (As on Bank

Statement)

Bank

Name

Bank

Branch

Bank

Account No.

(As in the

Bank)

Cur-

rency

Cash Book

Bal. 31 Dec

2017

GH¢

Cash Book

Bal. 31 Dec 2018

GH¢

Remarks

1 COE College of Engineering

CAL Bank

KNUST 1400001021208

GH¢ 74,426.02 276,125.73 Not closed

2 COE College of Eng.

Research Fund

ECO

Bank

KNUST 02901344

26245103

GH¢ 346,110.18 299,304.23 Not closed

3 COE College of Eng.

Office of Provost

ECO

Bank

KNUST 02920744

77921701

USD 29,431.89 14,876.78 Not closed

4 COE Technology Consultancy

Project

ECO Bank

KNUST 0291164426245101

USD 50,937.03 14,827.81 Not closed

5 COE College of Engineering

Deposit

GCB Bank

KNUST 6031130000894

GH¢ 1,726,244.54

3,297,456.29

Not closed

6 COE Chair of

Chemical Engineering

GCB

Bank

KNUST 60316200

01560

GH¢ 971,905.15 1,060,652.4

5

Not closed

7 COE Sch. of Engineering

Dollar Acct.

GCB Bank

KNUST 6031130007151

GH¢ 26,396.20 26,396.20 Not closed

8 COE College of Eng. Needy Student

HFC Bank

KNUST 0130890771018

GH¢ 18,063.63 52,222.18 Not closed

9 COE Micro-

Concrete Roofing Tiles

GCB

Bank

KNUST 60311300

01717

GH¢ 13,339.97 11,250.78 Not closed

10 COE Road & Transport

Engineering Project

ECO Bank

KNUST 0210134402627501

GH¢ 33,249.06 48,778.01 Not closed

11 COE Road & Transport

Engineering Project

ECO Bank

KNUST 0212084402627501

USD 182,954.62 5,492.68 Not closed

12 COE Steven Paris

Hostel

GCB

Bank

KNUST 60311300

04691

GH¢ 178,504.77 6,907.39 Not closed

13 COE Suame I. T. T.

U. Account

GCB

Bank

KNUST 60311300

01826

GH¢ 4,109.66 16,718.36 Not closed

14 COE Technology Consultancy

Centre

GCB Bank

KNUST 6031130000932

USD 7,919.13 13,787.11 Not closed

15 EGH College of Engineering

Guest House

GCB Bank

KNUST 6031130005188

GH¢ 57,136.96 119,308.75 Not closed

16 EGH College of Engineering

The Royal Bank

KNUST 1710312152615

GH¢ 51.98 51.98 Not closed

1921. The College Accountant did not ensure that the College

operate within a minimum number of bank accounts.



1922. Operating multiple bank accounts defeats efficient cash

management practices. The situation could also cause delay in

preparing bank reconciliation statements. Therefore, any favourable

or unfavourable movement on the accounts may not be detected

promptly, which might result in loss of funds.

1923. We advised Management of the College to close the dormant

accounts, and adopt centralised banking systems, where few bank

accounts would be in operation. This will improve efficiency in cash

management.

1924. Management of the College noted our recommendation for

compliance, and later provided copies of letters closing down three

of the reported accounts.

1925. Only one out of the four identified dormant accounts during

the period had been closed. Operating 16 bank accounts is still on

the high side. We therefore advised Management of the college to

consider closing the three dormant accounts and more of the other

accounts.

Transport

Vehicles procured without ownership documents

1926. Section 38 of the Road Traffic Act 2004 (Act 683) instructs

that, a person shall not own or drive a motor vehicle unless the

vehicle is registered under the Act upon the person seeking

registration of the vehicle applying in the prescribed form to the

Licensing Authority and when the application is accepted per the

Regulation made under the Act issue to the applicant a vehicle

registration certificate in respect of the vehicle registered.

1927. Additionally, Section 52 of the Public Financial Management

Act, 2016 (Act 921), directs Principal Spending Officer of a covered



entity, state-owned enterprise or public corporation to be



systems exist for the custody and management of the assets.

1928. We noted from the Transport Unit that nine vehicles procured

by the University in 2018 financial year and fully paid for were in

the names of the suppliers as at August, 2019. Though Vehicle

Registration Certificates (“form ‘A’”) for the vehicles were available,

no documentations of the right of ownership such as, DVLA Change

of Ownership (“form C”), supplier’s letter of transfer and customs

declaration papers/documents were on file.

1929. We further reviewed files of 15 vehicles owned by College of

Arts and Built Environment, (CABE) submitted by the University

Engineer, and observed that the University (College) has no right of

ownership documents for nine (9) of them. Though, seven (7) out of

the nine (9) vehicles have Vehicle Registration Certificates (“form ‘A”),

the documents are in the names of the suppliers. Two (2) of the

vehicles have no documents (form ‘A’, form ‘C’ etc.) on file. Refer to

Table 218 for details.



Table 218: Vehicles purchased without ownership documents – The University’s Vehicles

No.

Make of Vehicle

Model of Vehicle

Registration No

Chasis No Year of Manufacture

Evidence of ownership Custom

Declaration document

Transfer

of ownership letter from

supplier

Remarks

Form C Form

A

2.

1 Zhongtong Citi Bus GE 4304-

18

LDY6GS2C

8H0005229 2017 X √ X X

Still under the ownership of Neoplan

Gh LTD

2 Zhongtong Citi Bus GE 4303-

18

LDY6GS2C

4H0005230 2017 X √ X X

Still under the ownership of Neoplan

Gh LTD

3 Zhongtong Citi Bus GE 4302-18

LDY6GS2C6H0005231

2017 X √ X X Still under the ownership of Neoplan

Gh LTD

4 Zhongtong Citi Bus GE 4301-18

LDY6GS2C6H0005228

2017 X √ 3. X

X Still under the ownership of Neoplan Gh LTD

5 Toyota Lancruiser Prado

GW 4279-18

JTEBH3FJ70K189779

2017 X √ X X still under the ownership of Toyota Gh LTD

6 Toyota Toyota Hiace

GW 4281-18

JTFJK02P505013846


7 Toyota Hilux GD pick-up

GW 4278-18

AHTH3CDX03421502


8 Mercedes Benz

Actross Skip loader truck

GN 3735-18

WDB93200210025432

2016 X √ X X

still under the ownership of Klataa Engineering Solution LTD

9 Nissan

CABSTAR AERIAL

TRUCK

GN 3734-18

VWASXTF24H7200644

2017 X √ X X

still under the ownership of Klataa Engineering Solution

LTD



CABE VEHICLES

No.

Make of Vehicle

Model

of Vehicle

Registration No

Chasis No

Year of

Manufacture

Evidence

of Form C

Evide

nce Form A

Custom

Declaration document

Transfer of

ownership letter from supplier

Remarks

1 Nissan

Hilux Pick Up

GV 2070-14

JDNJ920000D007988

2003 X X X X

No records of

ownership documents

2

Toyota Coaster Bus

GT 2982-10

JTGB518091028915

2008 X √ √ X

still under the

ownership of Stelin Automotive & Trading LTD

3 TATA L316

GE 5285-W

MAT38906652101638

2005 X X X X No records of ownership documents

4

Nissan QD32 PICK UP

GV2060-14

BO42389 2002 X √ √ X No records of form C & Letter of transfer from supplier.

5

Nissan PICK UP GT 2179-X

ADNJ920000E016919

2005 X √ √ X

still under the ownership of Ministry of Land and Forestry

6

Nissan PICK UP GV 2225-14/GT 2176

ADNJ920000E016918

2005 X √ √ X

still under the ownership of Ministry of Land and

Forestry



7

Nissan D/CAB PICK UP

GV2229-14/GT

2178-X

ADNJ920000E016920

2005 X √ √ X

still under the ownership of Ministry of Land and

Forestry

8

Toyota PICK UP GV 2189-

14

ABTFK22G4

03031229 2008 X √ X X

still under the ownership of Toyota

GH Ltd

9

Land Rover

GV 2236-14

SALLTGM782A756731

2002 X √ X X

No records of form C, Custom papers & Letter of transfer from supplier.

NB: The X symbol stands for absence of those records under the respective headings;

The √ symbol indicates the availability of those records under the respective headings.



1930. The Transport Engineer’s inability to ensure that the vehicles

were registered in the name of KNUST before signing the technical

inspection/delivery certificate to initiate payment accounted for the

anomaly.

1931. The University did not have legal title to the vehicles, since

the suppliers have not transferred same to the University. The

University therefore, stands a risk of losing the vehicles in case of

any litigation of ownership over them.

1932. We advised the Transport Engineer to take urgent steps to

ensure that the ownership of all the vehicles are transferred to

KNUST and copies of the ownership documents filed. We further

advised the Transport Engineer to ensure that all vehicles procured

or donated to the University (Colleges, Departments and Units) are

registered in the name of the University (Colleges, Departments and

Units) before technical inspection certificates and Goods Receive

vouchers are prepared to acknowledge receipt of the Vehicles.

1933. Management responded that “the Transport Department

could not secure the documentation of right of ownership (Form

C, Suppliers transfer and custom declaration papers) for the four

(4) Zhongtong City Buses as a results of an ensuing disagreement

between the University and the supplier, Neoplan Ghana Limited,

on the final amount to be paid for the vehicles. This issue

halted the transfer of ownership processes after persistent attempts.

The Supplier hinted they are willing and ready to transfer of

ownership of the vehicles to the University as soon as the issue of

the disagreement is resolved. With regards to the other five (5)

vehicles (GW 4279 – 18, GW 4281 – 18, GW 4278 – 18, GN 3735 –

18 and GN 3734 – 18), documentations of right of ownership have

been secured for four (4) and transferred in the name of KNUST at

the DVLA. Toyota Ghana Limited, the supplier of the remaining one



(1) that is GW 4278 – 18, is in the process of finalizing the right of

ownership with DVLA.”

1934. We again, advised the Transport Engineer to ensure that legal

title for the vehicles of the Colleges, Departments and Units have

been transferred into the name of the University accordingly.

Colleges and Departments Peculiar Issues

Institute of Distance Learning (IDL)

Unsubstantiated Payments of Compensations and Survey Cost-

GH¢188,033.80





of by or on account of the covered entity. Also, Regulation 39 of the

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

provides that the head of the accounts section of a department shall

control the disbursements of funds and ensure that transactions are


1936. We noted from our examination of contract records of IDL

that an amount of GH¢188,033.80 was expended as compensations

to farmers, chiefs and inhabitants of Kasaworado and Moree

including surveying cost for the construction of Educational Resort.

The money was disbursed through the contractor of the project,

Antartic Ltd. However, no signed records or receipts were available

to show that the contractor paid the amount to persons involved; we

did not sight any signed agreements between the University and the

beneficiaries to indicate that payments of such compensation would

insulate the University against future liabilities and possible

litigations.



1937. The Accountant attributed the anomaly to their inability to

trace the records.

1938. We were unable to confirm the veracity or otherwise of the

payments.

1939. We recommended to Management of the Institute to provide

documentary evidence (signed sheet/receipts, agreement between

the University and the beneficiaries, etc.) to authenticate the

payment of GH¢188,033.80. Failure of which management should

refund the amount to the University for our verification.

1940. Management Responded that the signed sheets for the two

payments GH¢55,758.8 dated 8/10/2015 and GH¢101,969.00

made to 55 farmers at Moree and Akatekyiwa through Mr. Jonathan

Zinzi Ayitey from Department of Land Economy, KNUST are

available for verification.

Auditors’ comment

1941. The documents presented for verification were photocopies

without the originals, while the alleged signed sheets to acquit the

payment of GH¢55,758.8 was rather a covering letter authored by

the then Director for IDL Professor. I.K. Dontwi, seeking approval

from the Vice Chancellor for the contractor, Artartic Construction

Co. Ltd to pay compensation to the affected farmers and families for

the construction of the IDL/KNUST Campus at Takoradi.

1942. There was no approval letter attached to the compensation of

GH¢101,969.00 said to have been paid to Moree and Akatekyiwaa

farmers. We therefore advised Management of the IDL to provide the

original documents and approval letter for the disbursement to the

farmers at Moree to authenticate the payments. Failure of which the

amount should be retrived from the authorising and paying officials.



Abandoned Project

1943. Regulation 39(1) of the Financial Administration Regulations,

2004 (L.I. 1802) states “A head of department shall ensure that

moneys are utilised in a manner that secures both optimum value

for money and the intention of Parliament”.

1944. We noted from our site inspection of the Educational resort

project for the University’s Institute of Distance Learning at Moree

that, construction of the ten chattels have been completed, leaving

the conference rooms and restaurant yet to be completed. We further

noted from the Development Committee’s minutes that, as at

November 2016, the chattels were 90% completed. However, three

years on, as at the time of our visit in July 2019, the facility has not

been put to use and as a result, portions of the fixtures have started

deteriorating, balusters and other metals are rusting and the fascia

boards were rotting.

1945. The Deputy Director explained that the facility is not in

operation because, the construction is not completed.

1946. We however, attributed the situation to the relocation of the

facility; (Takoradi to Moree due to land litigation) in an undeveloped

rural area. If the facility had been constructed in an urban area as

initially planned, it could have been used as guest houses till the

whole project is completed.

1947. The continuous deserting of the completed facility will lead to

its further deterioration and additional maintenance cost. Value for

money cannot also be achieved.

1948. We recommended to Management to expedite action on the

completion of the project and put it to immediate use.



1949. Management noted our recommendations for compliance.

Running expired and Unaccredited Programmes

1950. Section 8(3) of National Accreditation Board Act, 2007 (Act

744) states “An institution shall not operate or run a programme

without accreditation”.

1951. Section 23 (b) of National Accreditation Board Act, 2007 (Act

744) further states “Where the accreditation or a programme is not

renewed and the institution continues to operate or run the

programme the Board may recommend the appropriate action or

sanction which may include withdrawal of public funds, student

loans or the transfer of students to another institution”.

1952. We noted during our review of the records of the Institute of

Distance Learning (IDL) that accreditation certificates of 9

programmes being run by the Institute had expired. The period of

expiration is 31st December 2014 to 14th September 2018. Besides,

Management was unable to provide accreditation certificates for 60

of the Institute’s programmes. Refer to table 219 for details.

Table 219: Expired Accredited programmes

No Programme Certificate

No.

Expiry

Date Remarks

Management

Comments

1 Dip. Architectural

Technology (IDL) 0003053 14/9/18

Not

Renewed

Running by

the Dept.

2 Com. Exec. Masters in Business

Administration (IDL)

000284 31/12/14 Not

Renewed

Submitted to NAB

3

MPHIL. Educational

Innovations and

Leadership Science

(IDL)

0001084 31/8/16 Not

Renewed

Dept.

preparing for

re-

accreditation

4 MPHIL. Industrial Finance and

Investment (IDL)

0000839 31/7/16 Not Renewed

Submitted to NAB



5

MSC. Educational

Innovations and

Leadership Science

(IDL)

0001084 31/8/16 Not

Renewed

Dept.

preparing for

re-

accreditation

6 MSC. Food Quality

Management (IDL) 0000835 31/7/16

Not

Renewed

Submitted to

NAB

7 MSC. Industrial Finance and

Investment (IDL)

0000837 31/7/16 Not

Renewed

Submitted to NAB

8 MSC. Information

Technology (IDL) 0000838 31/7/16

Not

Renewed

Running by

the Dept.

9

MSC. Logistics and

Supply Chain

Management (IDL)

0000833 31/7/16 Not

Renewed

Submitted to

NAB

219b: Programmes with accredited certificates not available

M

Xcvb

‘bvbs.

Programmes Remarks

Undergraduate

1 BA. Sociology (IDL)

Top-up

Accredited Certificate

not presented

Running by the Dept.

2 BA. Social work (IDL) Top-up

Accredited Certificate not presented


3 BSC. Business



not presented


4 BSC Computer

Engineering (IDL)


not presented

Submitted to NAB

5 BSC Computer

Science (IDL)


not presented


6 BSC Construction

Tech. & Mgt. (IDL)


not presented


7 BSC. Electrical & Electronic

Engineering (IDL)



8 BSC. Geomatic

Engineering (IDL)


not presented

Submitted to NAB

9 BSC Information

Technology (IDL)


not presented

Submitted to NAB

10 BSC Mechanical

Engineering (IDL)


not presented

Submitted to NAB

11 BSC. Petroleum Eng (IDL)


Submitted to NAB



12 BSC Quantity Surv.

& Const. Econ. (IDL)


not presented


13 BSC Statistics (IDL) Accredited Certificate

not presented


14 BSC. Agriculture

(IDL)


not presented

Submitted to NAB

15 BSC Chemical

Engineering (IDL)


not presented


16 BSC Civil Eng. (IDL)- Top-up



17 DIP. Business



not presented

Submitted to NAB

18

DIP. Computer

Network Engineering

(IDL) (weekend)


not presented

Submitted to NAB

19 DIP. Horticulture

(IDL)


not presented

Submitted to NAB

20 DIP. Information Technology (IDL)

(weekend)


Submitted to NAB

21 DIP. Mechanical

Engineering (IDL)


not presented

Submitted to NAB

22 Master of Public



not presented


23 MBA. Accounting

(IDL)


not presented


24 MBA. Finance (IDL) Accredited Certificate not presented


25

MBA. Human

Resource

Management (IDL)


not presented


26 MBA. International

Business (IDL)


not presented

Submitted to NAB

27

Meng. Building

Services Engineering with Management

(IDL)



28

Meng. Energy

Systems

Engineering with

Management (IDL)


not presented

Submitted to NAB

29

Meng. Industrial

Operations with Management (IDL)


Submitted to NAB



30

Meng. Information

and Communication

Technology with

Management (IDL)


not presented

Submitted to NAB

31

MBA. Logistics and

Supply Chain Management (IDL)


not presented


32 MBA. Marketing

(IDL)


not presented

?

33

Mphil. Business

Consulting and

Enterprise Risk

Management (IDL)


not presented

Submitted to NAB

34 Mphil. Forensic Science (IDL)


Submitted to NAB

35

Mphil. Logistics and

Supply Chain

Management (IDL)


not presented


36 Mphil. Post Harvest

Technology (IDL)


not presented


37 MSC. Accounting

and Finance (IDL)


not presented


38 MSC. Agribusiness

Management (IDL)


not presented


39 MSC. Applied

Statistics (IDL)


not presented


40 MSC. Biotechnology

(IDL)


not presented

Submitted to NAB

41

MSC. Business

Consulting and

Enterprise Risk

Management (IDL)


not presented

Submitted to NAB

42 MSC. Cyber Security and Digital Forensic

(IDL)


not presented

Submitted to NAB

43 MSC Development

Finance (IDL)


not presented

Submitted to NAB

44 MSC Development

Management (IDL)


not presented

Submitted to NAB

45 MSC Economics

(IDL)


not presented


46 MSC. Energy and Sustainable

Management (IDL)


not presented

Submitted to NAB

47 MSC. Environmental

Science (IDL)


not presented




48 MSC. Forensic

Science (IDL)


not presented


49 MSC. Health

Informatics (IDL)


not presented


50

MSC. Hospitality

and Tourism

Management (IDL)


not presented

Submitted to NAB

51 MSC. Human Nutrition and

Dietetics (IDL)


not presented


52

MSC. Insurance and

Business Continuity

(IDL)


not presented

Submitted to NAB

53

MSC. Procurement

and Supply Chain Management (IDL)


not presented


54

MSC. management

and human resource

strategy (IDL)


not presented


55

MSC. Strategic

Management and

Leadership (IDL)


not presented

Submitted to NAB

56 MSC. Marketing

(IDL)


not presented


57 MSC. Mechanical

Engineering (IDL)


not presented


58

MSC. Procurement

and Supply Chain

Management (IDL)


not presented


59 MSC. Project

Management (IDL)


not presented

Submitted to NAB

60

MSC. Security and

Justice Administration (IDL)


Submitted to NAB

1953. We attributed the anomaly to lack of Management’s pro-

activeness to ensure that all programmes are accredited before

running them, coupled with untimely renewal of the certificates of

the expired accredited programmes accounted for the lapse.

1954. Running unaccredited or expired accredited programmes

could have adverse effects on the validity of the programmes, and

the related certificates that would be awarded to prospective



students. The University could also suffer reputational damages and

sanctions from the Accreditation Board.

1955. We recommended to Management to cease running

programmes that are not accredited or having its accredited

certificates expired until they are accredited or the expired

certificates renewed, to avoid sanctions by NAB. Management

should also ensure timely accreditation of any introduced

programme, and renewal of all the expired accredited certificates, in

order to give credence to the programmes and the related

certificates, and avoid sanctions.

1956. Management Responded that “Programmes from various

departments have accreditation already. All other IDL programmes have

completed the accreditation process and payment effected but NAB are yet

to issue the certificates.”

College of Engineering

Expired Chemicals/drugs in Stock

1957. Section 83(1) of the Public Procurement Act 2003, Act 663

states, ‘The head of a procurement entity shall convene a Board of

Survey comprising representatives of departments with

unserviceable, obsolete or surplus stores, plant and equipment

which shall report on the items and subject to a technical report on

them, recommend the best method of disposal after the officer in

charge has completed a Board of Survey form’.

1958. We inspected the chemical stores of the College of

Engineering, and noted that, quite a number of the chemicals/drugs

in stock had expired. We further noted the following flaws;

i. The general environment under which the chemicals and

other items are kept is not conducive.

ii. The expired chemicals/drugs are mixed up with the

unexpired ones.



iii. Expendable and Non expendable items are kept in the

same place with expired and unexpired chemicals/drugs.

iv. Obsolete and unserviceable items are also, kept in the

same room.

v. Items in the store room are not orderly arranged.

vi. The room is dusty and untidy.

vii. No unserviceable ledger is kept to record the obsolete and

the unserviceable items.

1959. We were also, informed by the store keeper that sometimes,

some of the expired chemicals explode, causing them to be more

dangerous. The hazardous nature of the chemicals, and the general

unconducive environment, made it difficult for us to count the

expired chemicals/drugs. List of the expired chemicals provided by

the store keeper is shown in table 220.

Table 220: Expired Chemicals/drugs

No. Item Units Qty. Manufacturer

1 1-Napthol Gram 1,000 Luctor Baarn

2 2-4 Dinitrophenol Gram 500 BDH

3 Acetamide Gram 1,000 BDH

4 Activated Charcoal Powder

Gram 500 BDH

5 Aga Fibre Gram 50 Merck

6 Albumen Egg Powder Gram 600 BDH

7 Alizarin Powder Gram 200 BDH

8 Aluminium Acetate Gram 500 M & B

9 Aluminium Ammonium

Sulphate

Gram 5,000 BDH

10 Aluminium Chloride Gram 500 BDH

11 Aluminium Fine Powder Gram 2,250 BDH

12 Aluminium Oxide Gram 3,950 Merck

13 Aluminium Sulphate Gram 200 BDH

14 Aluminium Turnings Gram 1,250 BDH

15 Ammonia Solution Litres 34.5 Not

16 Ammonium Chloride Gram 2,000 BDH



17 Ammonium Dichromate Gram 1,500 BDH

18 Ammonium Dihydrogen

Orthophoshate

Gram 1,500 BDH

19 Ammonium Ferric

Sulphate

Gram 2,000 BDH

20 Ammonium Manganese

Sulphate

Gram 500 Not Indicated

21 Ammonium Molybdate Gram 2,500 Fisons

22 Ammonium Nickel

Sulphate

Gram 1,000 BDH

23 Ammonium Oxalate Gram 6,500 BDH

24 Ammonium Persulphate Litres 3 BDH

25 Ammonium Suphate Gram 700 BDH

26 Ammonium Thiocyanate Gram 800 Not Indicated

27 Amyl Alcohol Litres 9 Not Indicated

28 Aniline Litres 13.5 BDH

29 Aniline Sulphate Gram 250 BDH

30 Antaracene Gram 1,000 BDH

31 Antimony Potassium

Tartrate

Gram 500 BDH

32 Antimony Powder Gram 1,500 BDH

33 Antimony Sulphide Gram 1,000 BDH

34 Arsenic Trioxide Gram 480 Not Indicated

35 Asbestos Wool Gram 500 BDH

36 Ascorbic Acid Gram 1,300 BDH

37 Barium Carbonate Gram 1,250 BDH

38 Barium Hydroxide Gram 1,000 BDH

39 Barium Peroxide Gram 1,000 Philip Harris

40 Barium Sulphate Gram 4,000 BDH

41 Benzyl Alcohol ML 4.7 M & B

42 Benzamide Gram 500 BDH

43 Benzene Sulphonic Acid Gram 400 BDH

44 Benzoic Acid Gram 500 Finkem

45 Benzyl Choride Litres 2.5 BDH

46 Bismuth Granulated Gram 400 BDH

47 Bismuth Nitrate Gram 250 BDH

48 Boric Acid Gram 990 Labosi

49 Bromocresol Green Gram 3 BDH

50 Buffer Solution Gram 2,000 Merck

51 Buster (GSM) Litres 100 Not Indicated

52 Cadmium Metal Gram 200 BDH

53 Calcium Acetate Gram 500 BDH

54 Cadmium Carbonate Gram 280 BDH

55 Cadmium Carbonate Gram 2,500 BDH

56 Cadmium Formate Gram 1,000 BDH



57 Cadmium Hydroxide Gram 500 Finkem

58 Cadmium Iodine Gram 400 BDH

59 Cadmium Nitrate

Hydrated

Gram 1,000 BDH

60 Cadmium Sulphate Gram 400 Merck

61 Cadmium Sulphide Gram 1,000 BDH

62 Cadmium Disulphide Litres 2.5 M & B

63 Chloroform Litres 4.5 VWR

64 Chromyl Chloride ML 25 BDH

65 Cobalt Oxide Gram 500 HM

66 Cobaltons Nitrate ML 400 BDH

67 Cobaltous Bromide Gram 400 BDH

68 Copper II Carbonate Gram 500 Philip Harris

69 Copper II Oxide Powder Gram 500 Philip Harris

70 Copper Sulphate Gram 500 Kochlife

71 Cupric Oxide Gram 650 BDH

72 Cupric/Copper

Sulphate

Gram 1,000 M & B

73 Cuprous Oxide Gram 1,000 HM

74 DI-Sodium Tetraborate Gram 3,000 M & B

75 DI Ammonium

Hydrogen Orthophosphate

Gram 3,300 BDH

76 Dioflo Ultra Filtration

Membrane

PCS 5 Dioflo

77 Disodium Disulphide Gram 950 BDH

78 Erochrome Black Gram 5 BDH

79 Ethyl Acetate Litres 5 BDH

80 Ferric Sulphate Gram 1,500 BDH

81 Ferrous Ammonium

Sulphate

Gram 500 BDH

82 Glucose Gram 800 BDH

83 Heptane Litres 2.5 BDH

84 Iodine Crystal Gram 200 Fisher Scientific

85 Iron Ferric Oxide Gram 400 Not Indicated

86 Iron Filings Gram 500 BDH

87 Lanolin Anhydrous Gram 250 BDH

88 Lead Standard Solution ML 500 Not Indicated

89 Litmus Gram 45 BDH

90 Magnesium Carbonate Gram 325 H/W

91 Magnesium Powder Gram 1,000 Philip Harris

92 Magnesium Sulphate Gram 500 Merck

93 Manganese Dioxide Gram 2,500 Hopkins/Williams

94 Manganese IV Oxide Gram 50 Philip Harris

95 Mercuric Chloride Gram 250 Not Indicated



96 Mercury II Chloride Gram 300 Winlab

97 Merthyl Acetate Litres 19 BDH

98 Methanol ML 100 Not Indicated

99 Methylbenzene Litres 2.5 Philip Harris

100 Metol Gram 590 BDH

101 Nasunabee Gram 1,000 Not Indicated

102 Nickel Sulphate Gram 480 Not Indicated

103 Oil of Cedar Wood ML 100 Not Indicated

104 Oil of Gloves ML 900 Fisher Scientific

105 Petroleum Spirit (100 –

1200c)

Litres 20.5 Fishons

106 Picric Acid Gram 100 Not Indicated

107 Potassium Carbonate Gram 3,000 Not Indicated

108 Potassium Chlorate Gram 500 Not Indicated

109 Potassium Dichromate Gram 500 BDH

110 Potassium Dihydrogen

Orthophosphate


111 Potassium Flourise

Anhydrous

Gram 500 Aldrich

112 Potassium Hexacyanoferrate

Gram 250 Raha Hannover

113 Potassium Hydrogen

Carbonate

Gram 1,000 BDH


Sulphate

Gram 500 BDH


Sulphate

Gram 1,000 BDH

116 Potassium Hydroxide Gram 100 VWR

117 Potassium Iodate Gram 2,000 Merck

118 Potassium

Permanganate

Litres 2 FSF

119 Potassium Permanganate


120 Potassium Persulphate Gram 250 Gallenkamp

121 Potassium Sulphate Gram 2,000 FLI

122 Potassium Thiosulphate Gram 250 BDH

123 Pumice Powder Stone Gram 500 Not Indicated

124 Pyridine ML 500 BDH

125 Roll Sulphur 1,000 Not Indicated

126 Safranine Gram 50 Surchem

127 Sodium Acetate

Anhydrous

Gram 1,000 Labosi

128 Sodium Arsenate Gram 250 BDH

129 Sodium Benzoate Gram 500 BDH

130 Sodium Bicarbonate Gram 1,000 Not Indicated



131 Sodium Chloride Gram 1,000 BDH

132 Sodium Cyamide Gram 500 BDH

133 Sodium Dichromate

Crystal

Gram 1,500 BDH

134 Sodium

Hexametaphosphate

Powder

Gram 700 BDH

135 Sodium Oxalate Gram 500 M & B

136 Sodium Sulphate Gram 1,000 Merck

137 Sodium Sulphide Gram 300 Not Indicated

138 Sodium Thiosulphate Gram 1,100 Not Indicated

139 Sodium Tungstate Gram 390 Not Indicated

140 Solution of Tampon Ph7 ML 500 Prolab

141 Stannous Chloride Gram 500 Prolab

142 Stearic Acid Gram 300 West Germany

143 Strontium Chloride Gram 1,000 BDH

144 Sucrose Gram 300 Fisons

145 Tartaric Acid Gram 400 M & B

146 Tin Foil Gram 100 BDH

147 Titanium IV Oxide Gram 100 BDH

148 Toluene Litres 15 BDH

149 Uranyl Acetate Gram 200 BDH

150 Urea Analar Gram 450 Not Indicated

151 Vanadium Pentoxide Gram 25 BDH

152 Xylol ML 100 Merck

153 Zinc Acetate Gram 1,000 Not Indicated

154 Zinc Oxide Gram 300 GPR

155 Zinc Standard Solution ML 500 Not Indicated

156 Zincum Granulation Gram 1,000 Not Indicated

157 Ammonia Solution Litres 34.50 Not Indicated

158 Ammonium Molybdate Gram 2,500 Fisons

159 Calcium Hydroxide Gram 500.00 Finkem

160 Chloroform Litres 4.50 VWR

161 Petroleum Spirit (100 –

1200c)

Litres 20.50 Fishons

162 Potassium Hydroxide Gram 100 VWR

163 Sucrose Gram 300 Fisons

1960. Management’s inability to pursue Environmental Protection

Authority (EPA) to ensure early disposal of these expired

chemicals/drugs, accounted for the lapse.

1961. The undue delay in disposing of these harmful

chemicals/drugs at the stores poses a threat to both staff and



property. Space that could have been used to keep other store items

has also been occupied by expired chemicals/drugs. The possibility

of fire outbreak in the University in any unforeseen explosion can

also, not be ruled out.

1962. We recommended to Management to constitute a Board of

Survey to report on the items and subject to a technical report, follow

up with Environmental Protection Authority (EPA) for direction and

disposal of these chemicals/drugs as early as possible. Management

should also charge the store keeper and the Lab Manager to ensure

rectification of the aforementioned flaws as soon as possible.

1963. Management responded that they have notified EPA to

supervise the disposal of the chemicals and were waiting for their

response to enable them carry out the disposal.

College of Agriculture and Natural Resources (CANR)

Unretired Advances-GH¢213,265.45

1964. Regulation 283(b) of the Financial Administration Regulations

(FAR), 2004, (L.I 1802) requires that, Special Imprests, issued for

making a particular payment, or group of payments must be fully

retired by the date specified in the approval to operate the imprest.

1965. Regulation 288 of the same Financial Administration

Regulations directs that Imprest shall be retired at the close of a

financial year and any imprest not so retired shall be adjusted to a

personal advance account in the name of the imprest holder. Failure

to retire an imprest by the due date, unless occasioned by the death

or incapacity of the imprest holder is a breach of discipline as

defined in regulation 8 (1)”.



1966. Paragraph 4.5(2) & (3) of Chapter 4 of the Accounting Policies

and Procedures Manual of KNUST, 2016 again, states “Special

advances must be accounted for within 21 days reckoned from the

date of payment is made. Heads of Department who fail to account

for special advances after 3 months will have the amount recovered

from their salaries with interest at the prevailing bank rate”.

1967. We noted from a review of payment vouchers of CANR that, a

total amount of GH¢213,265.45 which was granted to 16

officers/payees to undertake various activities in 2018 had not been

accounted for as at the time of the audit in August 2019. The

amount had also, not been recovered from the salaries of the imprest

holders. These were balances after considering Management’s

response of retiring the imprests. Table 221 provides the details.

Table 221: Un-retired Special Advances - CANR

TRANS

DATE

TRANS ID DESCRIPTION PAYEE CHEQ NO AMOUNT REMARKS FACULTY

6/8/2018 P: 389235 SPECIAL ADVANCE

TO PURCHASE EQUIPMENT AND

MATERIALS FOR THE VACATION

TRAINING AT THE DEPARTMENT OF

ANIMAL SCIENCE AS PER THE ATTACHED.

DR

CHRISTOPHER ANTWI

759696-

759697

6,718.45

NOT RETIRED AGRIC


REQUESTED BY

DORIS ASARE BEDIAKO TO

PURCHASE CABLES & OTHER

MATERIALS FOR THE INSTALLATION

OF AIR-CONDITIONERS AT

THE LABS. OF SOIL SCIENCE, ENTO. &

PATHOLOGY, BIOTECH. LAB., INSECTARY LAB. &

LECTURE ROOMS-FF 28, GF 14,& GF 24

AS PER THE ATTACHED.

DR.

ROBERT

AIDOO

760192 115,876.50

NOT RETIRED

AGRIC




REQUESTED BY DORIS ASARE

BEDIAKO TO PURCHASE TWO (2)

PCS. OF 11R 225 TUBELESS TYRES

TO BE FIXED ON VEHICLE NO. GT

8061-14 AS PER THE ATTACHED.

DR. KWASI

OHENE - YANKYERA

760030 8,100.00

NOT RETIRED

AGRIC

5/24/2018 P: 386996 SPECIAL ADVANCE TO ANDREWS C.

BAYUKO TO

PURCHASE ITEMS

FOR REFINISHING OF THREE

EXECUTIVE TABLES AT THE WOOD SCIENCE AND

TECHNOLOGY DEPARTMENT

OFFICE.

ANDREWS C. BAYUKO

757366 1,222.00

NOT

RETIRED FRNR

3/15/2018 P: 378325 SPECIAL ADVANCE TO KOFI E. ANSAH

FOR THE PURCHASE OF WATER TANKS AND TEAK

SEEDLINGS, PER ATTACHED.

KOFI E. ANSAH

757239 1,300.00

NOT RETIRED FRNR


TO DR. EVANS L.K. DAWOE AS FUNDS RELEASED TO AID

ONE-DAY STAKEHOLDER

WORKSHOP ON 31ST DECEMBER 2018

DR. EVANS

L.K. DAWOE

757155 4,540.00

NOT RETIRED FRNR

2/13/2018 P: 368967 SPECIAL ADVANCE FOR THE

ESTABLISHMENT AND MAINTENANCE

OF A NURSERY.

DR. AKWASI ABUNYEWA

757199 5,250.00

NOT

RETIRED FRNR


TO THEOPHILUS AKURUGU FOR THE

PURCHASE OF COMPUTER AND

ACCESSORIES FOR DEAN’S SECRETARY

AS PER ATTACHED

KOFI E.

ANSAH

757411-

757413

3,486.00

NOT

RETIRED FRNR


TO DR N.W. AGBO TO ENABLE HIM

CONDUCT ORAL EXAMINATION FOR

PHD AND MPHIL VIVA VOCE

CANDIDATES AS PER ATTACHED

KOFI. E.

ANSAH

757423 1,000.00

NOT RETIRED FRNR

8/13/2018 P: 398554 SPECIAL ADVANCE TO DR WINSTON

ASANTE FOR THIRD YEAR STUDENTS

VACATION TRAINING AS PER ATTACHED

DR ASANTE 757458 22,180.00

NOT RETIRED FRNR




TO SENIOR ASSISTANT

REGISTRAR FOR THE PURCHASE OF

ONE RAMBO 500 LITRES WATER TANK

FOR THE FACULTY AS PER ATTACHED

DR N.W

AGBO

757564 3,990.00

NOT RETIRED FRNR

1/16/2018 P: 363000 SPECIAL ADVANCE TO BOUNDARY

DEMARCATION AND PILLARING OF

KNUST FRUIT

PROCESSING

FACTORY. PER ATTACHED

PROF. WILLIAM

ODURO

903454 4,425.00

NOT RETIRED PROVOST

1/24/2018 P: 364367 SPECIAL ADVANCE TO PROF. S. K.

OPPONG TO ENABLE THE

IMPLEMENTATION KNUST

BIODIVERSITY INVENTORY

PROJECT. PER ATTACHED.

PROF. SAMUEL

KINGSLEY OPPONG

903471 11,010.00

NOT RETIRED PROVOST

7/10/2018 P: 394461 RE- IMBURSEMENT OF PROVOST

OFFICE IMPREST AUTHORISED

AMOUNT 1,500.00 LESS CASH IN HAND

218.00 AMOUNT PAYABLE

1,282.00

MRS. FELICIA

GYIMAH

903662 1,282.00

NOT

RETIRED PROVOST

10/15/2018 P: 407160 SPECIAL ADVANCE TO PROF RICHARD AKROMAH FOR

PAYMENT OF SERVICING

CHARGES OF THE PASTUERIZER AT

THE KNUST FRUIT PROCESSING

COMPANY AS PER ATTACHED

PROF RICHARD AKROMAH

904120 3,500.00

NOT RETIRED PROVOST

10/2/2018 P: 405702 SPECIAL ADVANCE TO PROF E.L.K

OSAFO AND OTHERS TO UNDERTAKE A

TRAINING SESSION FOR THE DIARY

FARMERS AND PROCESSORS

ASSOCIATION OF GHANA UNDER THE

COTVET PROJECT AS PER ATTACHED

PROF E.L.K OSAFO

904107-904113

19,385.50

NOT RETIRED PROVOST

TOTAL 213,265.45



1968. We attributed this anomaly to lack of effective supervision by

the College Accountant to ensure full retirement of accountable

imprest within the stipulated timeframe.

1969. We were therefore, unable to substantiate that the

expenditures were made for the intended purposes.

1970. We recommended to the College Accountant to ensure that

these special advances are properly accounted for, failing which the

amount of GH¢213,265.45 shall be recovered from the salaries of

the advance holders in accordance with Regulation 288 of the

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

Paragraph 4.5(3) of Chapter 4 of the Accounting Policies and

Procedures Manual of KNUST, 2016.

Non availability of signed project agreement-GH¢344,022.73

1971. Best contract management practices require that an

agreement outlining terms and conditions including responsibilities

and benefit of parties is documented and properly signed by the

parties concerned.


2004 (L. I. 1802) also, requires that, any public officer who is

responsible for the conduct of financial business on behalf of the

Government of Ghana, the receipt, custody and disbursement of

public and trust moneys, or for the custody, care and use of public

stores, shall keep proper records of all transactions and shall

produce records of the transactions for inspection when called upon

to do so by the Minister, the Auditor-General, the Controller and

Accountant-General or any officers authorised by them.

1973. It further indicates that, a public officer who fails to keep or

produce any records under sub-regulation (1) is in a breach of

financial discipline as defined in Regulation 8(1).



1974. We noted that, seven Lecturers of the College were

undertaking various projects, funded by seven Organisations.

Management however, did not provide the agreement showing the

responsibilities of the parties concerned. Reports on the projects

were also not made available. Total funds received for the projects

were again, not made known. Amounts paid for the project’s

activities during the period under review was GH¢344,022.73. This

was after considering Management’s response to the observation.

Refer to table 222 for the details of the payments and the related

projects.

Table 222: Projects Payments without signed agreements

TRANS

DATE

TRANS ID DESCRIPTION PAYEE CHEQ NO AMOUNT TYPE OF

PROJECT

FACULTY

2/6/2018 P: 367145 PAYMENT OF FUNDS

REQUESTED BY STAFF ON FICCESSA

PROJECT

DR ROBERT

AIDOO AND OTHERS

759434,759

435 &75943

64,122.38

FICESSA PROJECT

AGRIC

6/6/2018 P: 388829 PAYMENTS FOR FIELD

SUPPORT FOR DATA

ANALYSIS AND REPORT

PREPARATION.

DR. K. OHENE-

YANKYERA

AND OTHERS

759683-

759686

45,000.00 DATA ANALYSIS

AND REPORT

PREPARATION.

AGRIC

7/3/2018 P: 393314 PAYMENT OF

ACCOUNTABLE IMPREST TO

CULTIVATE SOYBEAN

UNDER THE PLANTING FOR FOOD AND JOBS

PROJECT

PROF.

RICHARD AKROMAH

759792 16,821.00 CULTIVATION

OF SOYBEAN UNDER THE

PLANTING FOR

FOOD AND JOBS PROJECT

AGRIC

11/5/2018 P: 409404 REFUND TO PROF. RICHARD AKROMAH

IN RESPECT OF PRE-

FINANCING THE COST OF SEED

PROCESSING

EXPENSES ON THE

MAIZE HARVESTED UNDER THE PLANTING

FOR FOOD AND JOBS

PROJECT AS PER THE ATTACHED.

PROF. RICHARD

AKROMAH

8E+05 12,249.35 CULTIVATION OF MAIZE

UNDER THE

PLANTING FOR FOOD AND JOBS

PROJECT

AGRIC



12/5/2018 P: 412887 ACCRUED

EXPENDITURE IN

RESPECT OF ALLOWANCE TO

TECHNICAL TEAM

FOR SHAEA PROJECT DOCUMENTS

PREPARATION.

PROF. B. K. B.

BANFUL AND

OTHERS

760239,240,

241,242,2

11,970.00 SHAEA

PROJECT

AGRIC

12/13/201

8

P: 413960 PAYMENT FOR

PREPARATION OF FINAL FICESSA-

GHANA PROJECT

REPORT TO DR. K. OHENE-YANKYERA

(PROJECT

COORDINATOR).

DR.KWASI

OHENE-YANKYERA

760261 4,500.00 FICESSA-

GHANA PROJECT

AGRIC

5/16/2018 P: 385671 PAYMENT OF SUBSISTENCE

ALLOWANCE FOR 5

NGR TEAM MEMBERS FOR DATA

COLLECTION

DR CAMILLUS ABAWIERA

WONGNAA AND

OTHERS

295328-595332

21,450.00

DATA COLLECTION

BIRD

4/18/2018 P: 382664 PAYMENT OF

CONSULTANCY FEES TO DR. DADSON

AWUNYO-VITOR

UNDER MEDA

PROJECT ON RUBBER SEEDLING VALUE

CHAIN AND MARKET

STUDY

DR DADSON

AWUNYO-VITOR

6E+05

7,215.00

RUBBER

SEEDLING VALUE CHAIN

AND MARKET

STUDY

BIRD

5/16/2018 P: 385667 SPECIAL ADVANCE TO CAMILLUS A.

WONGNAA TO FUEL

THE HIRED VEHICLE TO ENABLE THE NGR

MEMBERS TO THEIR

STUDY AREAS.

DR.CAMILLUS ABAWIERA

WONGNAA

6E+05 4,070.00

DATA COLLECTION

BIRD

7/24/2018 P: 396369 RELEASE OF FUNDS

FOR PLANTAIN SUCKER

MULTILPICATION

ACTIVITY UNDER THE SNV- CANR PLANTAIN

PROJECT.

PROF. BEN. K.

BANFUL

9E+05 100,125.00

THE SNV- CANR PLANTAIN

PROJECT. PROVOST


FOR SECOND TRRANCHE TO PROF.

BEN K. BANFUL TO

IMPLEMENT SNV

PLANTAIN SUCKER PRODUCTION

CONSULTANCY

ASSIGNMENT. PER ATTACHED.

PROF. BEN K.

BANFUL

9E+05

56,500.00

THE SNV- CANR

PLANTAIN PROJECT. PROVOST

TOTAL

344,022.73

1975. Lack of proper documentation and the Accountant’s laxity in

ensuring that the required information was provided resulted in the

anomaly.

1976. Consequently, we were unable to determine the required

activities to be performed and the related amount to be paid vis-a-

vis the actual performance and the amount paid.



1977. We recommended to Management of the CANR to provide the

contract agreements, project completion reports along with the total

amounts received and disbursed for each project, failing which

section 33 of the Audit Service Act, 2000 (Act 584) shall be enforced.

1978. Management responded that these projects most of which

have been completed, were funded by both local and foreign donors;

management also said that their record management practice is

such that, project contract agreement is filed separately from

financial transactions and further indicated that arrangements are

being made to retrieve all these agreements for the Auditors’

inspections.

Animal Science Department - CANR

Under-Utilisation of Farm Equipment


2004 L. I 1802 requires that any officer responsible for the financial

management of a department shall ensure that acquisition of

government stores are made and applied to public purpose in the

most economical way.

1980. We noted from our visit to the Animal Science Farm that,

Hatchery equipment and sausage processing machine have been

installed. However, these machines were being underutilised. This

is because, private participation in the hatchery is not effective. Meat

and sausage processing were also based on the frequency of the sale

of processed sausage and availability of funds to purchase pigs.

1981. We attributed this anomaly to Management’s indifferent

posture towards the operations of the farm.



1982. As a result, a loan in the sum of GH¢202,660.00 granted by

CANR in 2015/2016 to the Department by way of paying for

Hatchery expenses had not been fully paid. Only GH¢15,000.00 out

of the amount had been refunded, leaving a difference of

GH¢187,660.00 yet to be paid.

1983. In order to avoid waste that would emanate from non-

functioning and high maintenance cost of the machines, we

recommended to Management of the University to strengthen

internal control systems at the farms, and devise a strategy that

would ensure efficient use of the machines. Management could also

consider outsourcing the facilities or, creating public awareness

about the commercialisation of the facility.

1984. Management responded that “Management share the same

sentiment with the Auditors and appropriate strategies and

measures are being put in place to expand the operations to realise

the maximum potential and financial benefits from the farm.”

Non-Viability of the Animal Science Farm


921) directs that A Principal Spending Officer of a covered entity


that covered entity and manage the resources received, held or

disposed of by or on account of the covered entity”.

1986. It further requires that A Principal Spending Officer shall, in

the exercise of duties under this Act, establish an effective system of

risk management, internal control and internal audit in respect of

the resources and transactions of a covered entity”. Section 90 of the

same Act requires the governing body of a public corporation or

state-owned enterprise to establish and maintain

(a) policies,

(b) procedures,



(c) risk management and internal control systems, and

(d) governance and management practices,

to ensure that that public corporation or state-owned enterprise

manages its resources prudently and operates efficiently in

accordance with the objectives for which the public corporation or

state-owned enterprise was established.

1987. We noted from our review of the payment vouchers of Faculty

of Agriculture that, an amount of GH¢83,167.30 was expended on

the Farm of Animal Science Department during the 2018 financial

year. We further noted that, in the last quarter of 2017, the

University’s main Finance Office and the College of Agriculture &

Natural Resources (CANR) granted a loan of GH¢291,070.50 to the

same Department to support its farm operations.

1988. The University and the CANR granted the loans, with the aim

of revamping the farm to generate income for the department and

the University as a whole. However, as at 31 December 2018, no

repayment had been made. The Hatchery section also received a

loan in 2015/2016 to the tune of GH¢202,660.00 from CANR. The

loan was in a form of paying for Hatchery expenses during the

period. However, as at the end of 2018, only GH¢15,000.00 had been

refunded, leaving a difference of GH¢187,660 unpaid. Refer to table

223 for the details of the amount expended by the faculty of

Agriculture and the loans granted.

Table 223: Animal Science Loan from main finance office

Trans Date Description Loan Loan Repayment

Balance (GH¢)

10 Oct 2017 LOAN TO ANIMAL SCIENCE (DR CHRIS ANTWI) FOR MAINTENANCE AND REPAIRS OF

THE HEN HOUSES

13,300.00 - 13,300.00

10 Oct 2017 LOAN TO ANIMAL SCIENCE (DR CHRIS ANTWI) FOR CHRISTMAS

BROILERS PRODUCTION WRONGLY POSTED NOW CORRECTED

16,000.00 - 16,000.00



10 Oct 2017 LOAN TO ANIMAL SCIENCE (DR. C. ANTWI) TO PURCHASE CATTLE

AND GOATS WRONGLY POSTED TO SPECIAL ADVANCE NOW CORRECTED

10,000.00 - 10,000.00

12 Oct 2017 LOAN TO ANIMAL SCIENCE (DR C. ANTWI) TO PURCHASE STATIONERY FOR MARKETING PRODUCTS UNDER THE ANIMAL

SCIENCE DEPARTMENT WRONGLY POSTED NOW CORRECTED

4,990.00 - 4,990.00

2 Nov 2017 SPECIAL ADVANCE TO CHRIS ANTWI FOR THE COST OF 1NO HP DESKTOP COMPUTER FOR ANIMAL SCIENCE PROJECT

WRONGLY POSTED TO SPECIAL ADVANCE NOW CORRECTED

2,008.50 - 2,008.50

13 Dec 2017 SPECIAL ADVANCE TO RAISE

LAYERS TO FEED HATCHERY AT THE DEPARTMENT OF ANIMAL SCIENCE PER ATTACHED.

10,000.00 - 10,000.00

18 Dec 2017 SUPPORT FROM MAIN

ADMINISTRATION TO AID ANIMAL SCIENCE PRODUCTION UNIT

150,000.00 - 150,000.00

5 Jan 2018 SPECIAL ADVANCE TO DR. C. ANTWI FOR THE PAYMENT OF 2 EXECUTIVE OFFICE DESKS AND TWO SWIVEL CHAIRS FOR

ANIMAL SCIENCE ACCOUNTS OFFICE.

4,532.00 - 4,532.00

8 Jan 2018 SPECIAL ADVANCE TO DR. C.

ANTWI FOR PAYMENT OF 1 NO. HP PRINTER FOR ANIMAL SCIENCE ACCOUNTS OFFICE.

3,240.00 - 3,240.00

25 Oct 2018 LOAN TO ANIMAL SCIENCE DEPARTMENT TO HELP THEM PRODUCE IN LARGE QUANTITIES TO SUPPLY ANIMAL PRODUCTS

TO THE UNIVERSITY COMMUNITY DURING THE CHRISTMAS AS PER ATTACHED

50,000.00 - 50,000.00

12 Dec 2018 LOAN TO ANIMAL SCIENCE

DEPARTMENT TO HELP THEM PRODUCE IN LARGE QUANTITIES TO SUPPLY ANIMAL PRODUCTS TO THE UNIVERSITY

COMMUNITY DURING THE CHRISTMAS AS PER ATTACHED

27,000.00 - 27,000.00

Total 291,070.50 - 291,070.5



Table 223b: Hatchery Loan from CANR

Trans Date Description Loan Loan Repayment

Balance( GH¢)

2/25/2015 TRANSFER TO JAMESWAY CANADA

TO ACQUIRE HATCHERY MACHINE

74,895.37

74,895.37

3/9/2015 COMMISION TRANSFER TO JAMESWAY

748.95 75,644.32

5/15/2015 RETIREMENT BY DR JACOB

HAMIDU IN RESPECT OF SPECIAL ADVANCE TAKEN FOR RE WIRING UNDER THE HATCHERY PROJECT,

7,561.22

83,205.54

5/16/2015 RETIREMENT BY DR. JACOB HAMIDU IN RESPECT OF SPECIAL ADVANCE TO PURCHASE AN AIR COMPRESSOR UNDER THE

HATCHERY PROJECT,

6,750.00 89,955.54

6/4/2015 RETIREMENT BY DR JACOB HAMIDU FOR HATCHERY

RENOVATION WORKS UNDER THE HATCHERY PROJECT,

6,681.00 96,636.54

6/11/2015 RETIREMENT BY PROF R. AKROMAH IN RESPECT OF

TRANSPORTING A 40 FOOT CONTAINER AND INCUBATOR EQUIPMENT FROM THE TEMA

HARBOUR TO KUMASI UNDER THE HATCHERY PROJECT,

1,800.00 98,436.54

6/15/2015 RETIREMENT BY PROF R. AKROMAH IN RESPECT OF

CLEARANCE OF ITEMS UNDER THE HATCHERY PROJECT,

11,000.00 109,436.54

7/8/2015 PAYMENT TO CLETUS HARDWARE

& CO FOR THE SUPPLY OF PLUMBING/ELECTRICAL MATERIALS, POLYTANK & LABOUR UNDER THE HATCHERY PROJECT.

4,737.40

114,173.94

7/8/2015 PAYMENT TO EUGENE OKYERE AND CO IN RESPECT OF PLUMBERING AND ARTISAN

WORKMANSHIP FOR 14 DAYS SPENT UNDER THE HATCHERY RENOVATIONS

900.00 115,073.94

7/16/2015 RETIREMENT BY DR JACOB HAMIDU IN RESPECT OF PREPARING SLIDING DOORS AS PART OF THE HATCHERY

RENOVATION UNDER THE HATCHERY PROJECT,

3,800.00 118,873.94

7/23/2015 PAYMENT TO PANEL DOOR OUTLET UNDER THE HATCHERY LOAN

2,025.00 120,898.94

7/29/2015 PAYMENT TO MR AGYIRE EDMOND SAMPSON UNDER THE HATCHERY LOAN PROJECT

2,831.00 123,729.94



8/4/2015 PAYMENT TO DR JACOB HAMIDU

UNDER THE HATCHERY LOAN PROJECT

881.25

124,611.19

8/7/2015 PAYMENT TO ENGINEERING GUEST

HOUSE IN RESPECT OF ACCOMODATION AND MEALS FOR MR VLADMIR ENIKEEV UNDER THE HATCHERY PROJECT

2,040.50

126,651.69

8/10/2015 RETIREMENT OF SPECIAL ADVANCE TO DR JACOB HAMIDU IN RESPECT OF VOLTAGE REGULATOR FOR THE HATCHERY

RENOVATION PROJECT

6,579.72 133,231.41

8/14/2015 PAYMENT OF ALLOWANCE TO MR RICHARD BOSOMPEM UNDER THE

HATCHERY PROJECT

200.00 133,431.41

8/14/2015 PAYMENT TO EUGENE OKYERE UNDER THE HATCHERY LOAN

PROJECT

665.00 134,096.41

8/24/2015 RETIREMENT OF SPECIAL ADVANCE TO DR JACOB HAMIDU

IN RESPECT TO FULLY OVER HAUL THE GENERATOR AT THE DEPARTMENT OF ANIMAL SCIENCE WHICH SERVES AS STANDY BY

GENERATOR FOR THE HATCHERY PROJECT

1,937.87 136,034.28

8/25/2015 PAYMENT TO JACOB HAMIDU UNDER THE HATCHERY LOAN

PROJECT

1,939.00 137,973.28

9/1/2015 PAYMENT TO ENGINEERING GUEST HOUSE UNDER THE HATCHERY

PROJECT

2,040.50 140,013.78

10/1/2015 PAYMENT TO ABASS ADAMS AS COST OF FIXING FURNITURE

200.00 140,213.78

10/5/2015 REFUND TO JACOB HAMIDU FOR EXPENSES INCURRED TO RECEIVE A DAY OLD CHICKS TO HATCHERY

PROJECT

1,366.00 141,579.78

2/4/2016 SPECIAL ADVANCE TO DR. JACOB HAMIDU IN RESPECT OF FEED FOR THE HATCHERY PROJECT UNDER

THE CANR,KNUST.

4,000.00 145,579.78

7/5/2016 RETIREMENT OF SPECIAL ADVANCE BY DR JACOB HAMIDU FOR THE PURCHASE OF 13KVA

GENERATOR AS A BACKUP FOR HATCHERY AT THE ANIMAL SCIENCE

48,000.00 193,579.78

10/11/2016 REFUND TO DR. JACOB HAMIDU FOR THE INSTALLING AIR CONDITION FOR HATCHERY COLD ROOM

2,361.20 195,940.98

10/19/2016 LOAN TO HATCHERY PROJECT WRONGLY POSTED TO SPECIAL ADVANCE NOW CORRECTED

1,972.00 197,912.98



10/31/2016 LOAN TO HATCHERY PROJECT

WRONGLY POSTED TO SPECIAL ADVANCE NOW CORRECTED

4,747.50

202,660.48

8/10/2018 LOAN PART PAYMENT - 15,000.00

187,660.48

Total 202,660.48 15,000.00

187,660.48

Table 223c: Faculty of Agriculture payment for Animal Science

Department

TRANS

DATE TRANS ID DESCRIPTION PAYEE

CHEQUE

NUMBER AMOUNT

6/19/2018 P: 391367

SPECIAL ADVANCE TO PURCHASE FEED MATERIALS FOR BROILER

PRODUICTION FOR THE VACATION TRAINING AT THE DEPT. OF ANIMAL SCIENCE AS PER THE

ATTACHED.

RAKEB FARMS &

CO. LTD 759765

13,731.30

6/22/2018 P: 391816

SPECIAL ADVANCE TO PURCHASE FEED FOR PIG

PRODUCTION (VACATION TRAINING PROGRAMME)

DR.

CHRISTOPHER ANTWI

759780, 759781

7,454.00

6/22/2018 P: 391813

SPECIAL ADVANCE TO

PURCHASE FEED FOR BROILER PRODUCTION (VACATION TRAINING PROGRAMME)

DR. CHRISTOPHER ANTWI

759778, 759779

7,000.00

7/3/2018 P: 393300

SPECIAL ADVANCE TO PURCHASE DAY OLD GUINEA FOWL, TURKEY,

AND DUCKS AND ALSO FEED AND VACCINES FOR RAISING THE BIRDS

DR. CHRISTOPHER ANTWI 759795

5,000.00

7/9/2018 P: 394309

SPECIAL ADVANCE TO

PURCHASE DAY OLD CHICKS, FEED AND MEDICATION FOR THE

ANIMAL SCIENCE DEPT. AS PER THE ATTACHED.

DR.

CHRISTOPHER ANTWI 759864

25,000.00

8/20/2018 P: 399340

SPECIAL ADVANCE REQUESTED TO

PURCHASE 3000 BIRDS ,FEEDS & MEDICATION FOR SUMMER SCHOOL PROGRAMME.


19,400.00

9/17/2018 P: 402368

SPECIAL ADVANCE REQUESTED BY ALHASSAN OSMAN TO

PURCHASE MILLET MASH TO FEED RABBITS AT THE STATION.


582.00



12/6/2018 P: 413042

ACCRUED EXPENDITURE

OF SPECIAL ADVANCE TO PURCHASE PIGS FOR PROCESSING.


5,000.00

83,167.30

1989. We also visited the farm to assure ourselves of its viability.

The following irregularities were identified:

a. Two uncompleted buildings, constructed from the loans

granted, have been abandoned, one at the foundation stage

and the other at the lintel level;

b. No records were kept by the farm manager to show the day-

old chicks received, the ones that died and those that survived

during the period under review. All effort made to get the farm

Manager to provide the information proved futile;

c. The Poultry section is underutilised, as some of the structures

have been abandoned and deteriorating;

d. Other structures for rearing of goat, sheep, pigs and other

livestock have been left to deteriorate. The numerous

structures meant for these animals only housed a few of them

for practical purposes;

e. The Hatchery and the sausage processing machines are also

underutilised;

f. The processing machine is only used for pigs and cattle

purchased from outside; We requested for records from the

officer in-charge of the processing machine to confirm the

viability or otherwise of the project (whether it is making profit,

breaking-even or making loss) but the officer could not provide

us with the information;

g. There was no substantive officer at the sales point. A farm

Labourer doubles as the salesman of the farm produce. He did



not keep proper records on the farm produce received for sale.

He only keeps scanty sales records which, we could not

confirm their authenticity, because it was deficient in

information as regards to the previous day’s stock balances,

what was received during the day, and the stock on hand, at

a particular time, among others;

h. The farm and the sausage processing managers, did not keep

records on the quantity of eggs, sausage produced and the

quantities sent to the sales point;

i. The accounts officers also visit the sales point every morning

and late afternoon for the sales proceeds, without checking

the stock balances of the farm produce brought forward from

the previous day, what had been received during the day vis-

à-vis the quantity sold and the amount realised, and the

current stock on hand, to certify the accuracy of the amount

received.

1990. Our further scrutiny of the financial records of the

department indicated that an amount of GH¢600,797.35 was

expended during the 2018 financial year, whiles the income for the

same period summed up to GH¢418,857.99, resulting in an excess

expenditure over income of GH¢181,939.36. Cashbook and bank

balances as at 31 December, 2018 amounted to GH¢11,533.81 and

GH¢10,010.94 respectively. Details shown in table 224.

Table 224: Activities during the year including bal. b/f (from the cash

book)

Bal. B/F (from 2017) GH¢

Amount Received

GH¢

Amount Expended

Balance

GH¢

193,473.17 418,857.99 600,797.35 11,533.81

Activities during the year excluding bal. B/F (from the cash book)



Amount Received GH¢

Amount Expended GH¢

Variance GH¢

418,857.99 600,797.35 181,939.36

1991. These irregularities resulted from the following;

a. Weaknesses in the internal control systems for the

management of the farm;

b. Absence of a policy document that spells out how the farm

should be managed, job descriptions, duties and

responsibilities of every worker, and how records are to be

kept at vantage points;

c. Misuse of funds on less importance things (wrong priorities),

as monies were locked-up with new structures that could not

be completed. Whereas the funds could have been used to

renovate the existing structures;

d. Absence of a substantive sales officer;

e. Lack of commitment on the part of the officers manning the

place and;

f. Lack of effective supervision.

1992. The situation has led to unpaid loans and depletion of the

department’s accounts without any compensating asset.

Embezzlement of funds at the vantage points cannot also be ruled

out. As a result, the viability and survival of the farm is in jeopardy.



1993. From the forgoing, it is evidently clear that the present officers

cannot manage the farm.

1994. Even though, the farm was established not only for economic

gains but also, for practical training and research purposes,

Management can leverage on the assets, the strategic location, and

the human resources at its disposal to make a significant financial

gain for the department or the college, and the University as a whole.

1995. We advised Management to develop a policy document that

would show how the farm should be managed, clearly spelling out

job descriptions, duties and responsibilities of every worker,

prescribe records to be kept for all aspects of farm operations, train

existing staff and employ competent and dedicated officers for the

effective and efficient management of the farm.

1996. We further, recommended to Management and the Council of

the University to take pragmatic steps to revamp the farm or seek

strategic partnership with private individuals to get the place revived

to forestall its possible collapse. In addition, Management could

consider outsourcing the management of the farm to a private

person, after setting aside sections of the farm for students’ training

and research purposes. The agreement should include conditions

that would ensure recoupment of the investment and repayment of

loans.

1997. Management Responsded that “Traditionally the facility is

meant for practical training of students and for research purposes.

The potential of commercialising some aspect of the operations is

well noted as observed by the Auditor and Management has already

initiated plans to achieve that.”



College of Health Sciences

VAT charged on exempted supplies – GH¢43,352.89

1998. Paragraph (g) of the First Schedule of the VAT Act 2013 (Act

870) specifies VAT exemptions for Education and medical supplies

among others. It explains education services to mean; the services

supplied to students as part of the education program provided by,

a technical college, community college or university; that is duly

registered or licensed by the Minister for Education. It also, explains

medical services to mean; a supply of a medical, dental, nursing,

midwifery or paramedical service where the service is performed by

or under the supervision and control of a person who is registered

as being qualified to perform that service by the Minister for Health,

other than spa, gymnasium and similar services; The quoted VAT

Act, further describes medical supplies to mean, equipment and

accessories for the supply of medical services as determined by the

Minister responsible for Health.

1999. We noted that four suppliers charged VAT to the tune of

GH¢42,070.23 on medical supplies valued at GH¢1,406,464.36

procured by the College during the period under review. Similarly, a

supplier charged VAT of GH¢1,282.66 on Library books worth

44,038.00 supplied to the College in the same period, bringing the

total VAT charged on exempted supplies to GH¢43,352.89. Refer to

table 225 for the details.

Table 225: VAT charged on Medical and Educational supplies

No. Trans Date Trans ID Description Payee Cheque Number

Amount VAT

1 4/3/2018 P: 380223 PAYMENT TO HUGE LIMITED

FOR THE SUPPLY OF 3 NO LEICA DM2000 LED MICROSCOPES

TO THE DEPT OF PATHOLOGY PER ATTACHED VAT

HUGE LIMITED

905160 169,651.15

5,089.51



NO 14140532 AND

GRV NO 001499

2 7/18/2018 P: 395629 PAYMENT TO

HUGE LIMITED FOR THE SUPPLY OF ANATOMY MODELS TO THE

DEPT OF ANATOMY PER ATTACHED VAT NO 14140852

HUGE

LIMITED

905427

129,515.65

3,885.47

3 5/15/2018 P: 385536 PAYMENT TO HUGE LIMITED AND BARCLAYS BANK GHANA LTD

FOR THE SUPPLY OF 50 PIECES OF LEICA DM500

MICROSCOPES TO THE DEPARTMENTS OF

MICRIOBIOLOGY AND ANATOMY

HUGE LIMITED AND BARCLAYS BANK

905282 358,757.28

10,753.03

4 12/5/2018 P: 409322 PAYMENT TO TRIODENT

VENTURES FOR THE SUPPLY OF DENTAL LABOURATORY

ITERMS

TRIODENT VENTURES

905824 49,820.00

1,494.60

5 7/16/2018 P: 401647 PAYMENT TO HUGE LIMITED

FOR THE SUPPLY OF 1 NO ANATOMAGE TABLE (VIRTUAL

CADEVER) AT THE ANATOMY DEPT

HUGE LIMITED

905380 352,478.11

10,574.34

6 7/6/2018 P: 393986 PAYMENT TO BENBURTO ENTERPRISES LIMITED BEING

THE PAYMENT FOR THE SUPPLY OF LABOURATORY

EQIPMENT TO THE FACULTY

BENBURTO ENTERPRISES LIMITED

759465 115,000.00

3,450.00



7 3/16/2018 P: 378465 PAYMENT TO

LABCHEM KUMASI FOR SUPPLIYING LAB ITEMS TO THE

DEPARTMENT

LABCHEM

LIMITED KUMASI

756413

1,685.00

50.55

8 2/14/2018 P: 369215 COST OF CHEMICALS

SUPPLIED TO THE DEPARTMENT

LABCHEM LIMITED

756337 1,615.00

48.45

9 2/14/2018 P: 369212 COST OF CHEMICALS AND

MICROMETER SUPPLIED TO THE DEPARTMENT

LABCHEM LIMITED

756337 3,500.00

57.48

10 1/22/2018 P: 363903 COST OF LABOURATORY SOLVENT

LABCHEM LIMITED

756274 48,543.69

1,456.31

11 2/1/2018 P: 366602 PAYMENT TO LABCHEM LIMITED FOR THE COST OF ITEMS


LABCHEM LIMITED

756295 1,775.00

53.25

12 2/1/2018 P: 366661 PAYMENT TO

LABCHEM LIMITED FOR THE COST OF A SEPARATING

FUNNEL ,BEAKERS

LABCHEM

LIMITED

756295

1,820.00

54.60

13 3/9/2018 P: 375635 PAYMENT TO

LABCHEM LTD BEING COST OF GLASSWARE SUPPLIED TO THE

DEPARTMENT

LABCHEM

LIMITED

756404

4,205.00

126.15

14 3/9/2018 P: 375644 PAYMENT TO LABCHEM LIMITED FOR

CHEMICALS SUPPLIED TO THE DEPARTMENT

LABCHEM LIMITED

756403 3,280.00

98.40

15 3/9/2018 P: 375640 PAYMENT TO LABCHEM LIMITED FOR CHEMICALS


LABCHEM LIMITED

756402 4,380.00

131.40

16 11/6/2018 P: 409541 PAYMENT OF

CHEMICALS FOR PRACTICALS AT THE DEPT. OF PHARMACOLOGY

LABCHEM

LIMITED

760681

2,650.00

79.50

17 11/26/2018 P: 411765 PAYMENT OF COST OF LABOURATORY

LABCHEM LIMITED

761557 4,615.00

138.45



EQUIPMENTS

PURCHASED

18 11/28/2018 P: 412096 PAYMENT TO LABCHEM LIMITED FOR THE

SUPPLY OF LABOURATORY EQUIPMENT TO FACULTY

LABCHEM LIMITED

761557 4,850.00

140.85

19 12/5/2018 P: 412843 PAYMENT OF COST OF LAB EQUIPMENT

SUPPLIED TO THE FACULTY

LABCHEM LIMITED

761588 4,695.00

142.20

20 12/10/2018 P: 413300 PAYMENT TO

LABCHEM LIMITED FOR THE SUPPLY LABOURATORY

EQUIPMENT TO FACULTY

LABCHEM

LIMITED

761597

4,740.00

142.20

21 12/13/2018 P: 414018 PAYMENT TO

LABCHEM LIMITED FOR THE SUPPLY OF LABOURATORY

EQUIPMENT FOR THE FACULTY

LABCHEM

LIMITED

761666

3,175.00

95.25

22 12/13/2018 P: 413886 PAYMENT TO LABCHEM

LIMITED FOR THE SUPPLY OF LABOURATORY EQUIPMENT TO

THE FACULTY

LABCHEM LIMITED

761658 3,375.00

101.25

24 8/23/2018 P: 399465 COST OF 2 NO. CIRCULATING

COOLERS

LABCHEM LIMITED

759560 44,859.36

1,345.78

25 8/23/2018 P: 399473 COST OF 2 NO. ROTARY

EVAPORATORS AND 2 NO. ROTARY VACUUM PUMPS SUPPLIED

TO THE FACULTY

LABCHEM LIMITED

759592 74,341.12

2.230.23

26 1/22/2018 P: 363897 COST OF LABOURATORY

ITEMS

LABCHEM LIMITED

756275 3,610.00

52.20

27 3/8/2018 P: 374480 PAYMENT TO LABCHEM FOR

THE SUPPLY OF ZOFLORA DISINFECTANT FOR THE

MAINTENANCE OF STUDENTS CADEVERS AND

LABCHEM LIMITED

905033 2,100.00

61.17



PRPEPARATION

OF SPECIMEN

28 10/3/2018 P: 405776 PAYMENT TO LABCHEM LTD FOR THE SUPPLY

OF 90 LITERS OF FORMALIN FOR THE MAINTENANCE OF

THE STUDENTS CADAVERS

LABCHEM LIMITED

905686 1,080.00

31.46

29 12/5/2018 P: 410083 PAYMENT TO LABCHEM

LIMITED FOR 90 LITRES OF FORMALIN FOR THE MAITENANCE

OF STUDENTS CADAVERS

LABCHEM LIMITED

905830 1,080.00

31.46

30 12/5/2018 P: 412923 PAYMENT TO

LABCHEM FOR TH SUPPLY OF POWDERED BLEACH FOR THE

CLEANING OF THE SCHOOL PER THE ATTACHED VAT INVOICE NO.

0595292 AND GRV NO. 21932

LABCHEM

LIMITED

905864

1,528.00

44.50

31 2/23/2018 P: 371122 PAYMENT TO

LABCHEM LIMITED FOR SUPPLY OF PACKS OF ZOFLORA

DISINFECTANT AND NAPHTALENE FOR THE

MAINTENANCE OF STUDENT CADAVERS AND SPECIMEN

PREPARTION AS PER ATTACHED VAT INVOICE NO. 12947970 AND

GRV NO 17935

LABCHEM

LIMITED

904994

2,300.00

66.99

32 2/1/2018 P: 366668 PAYMENT LABCHEM

LIMITED FOR SUPPLYING LAB ITEMS TO THE FACULTY

LACHEM LIMITED

756295 1,440.00

43.20



LIBRARY BOOKS

33 43122 P: 363945 COST OF ITEMS

FOR THE REFURBISHMENT OF THE FACULTIES

LIBRARY

KINGDOM

BOOKS AND STATIONERY

756269

44,038.00

1,282.66

1,450,502.36

43,352.89

2000. Management’s non-compliance with the VAT law caused the

infraction.

2001. We could not confirm that the VAT amount of GH¢43,352.89

had been remitted to the Commissioner of GRA.

2002. We advised Management to ensure that, the suppliers provide

evidence of payment of VAT of GH¢43,352.89 to the Commissioner

of GRA, failing which; Management should recover same from the

suppliers with evidence of recovery for audit validation. We also

urged management to refrain from paying VAT on exempt supplies

and to build capacity of the staff involved in the payment processing

function on rules and regulations that underpins government

financial business.

2003. Management responded that the transactions of the suppliers

have been communicated to the GRA for their attention and actions

as appropriate.

Improper contract award– GH¢55,128.12

2004. Section 8 of the Public Procurement (Amendment) Act, (Act

914) requires a tenderer in public procurement to have the legal

capacity to enter the contract; meet ethical and other standards

applicable in this country.

2005. During our review of payment vouchers of College of Science,

we noted that a net amount of GH¢55,128.12 was paid to Professor

Ben Banful for external Landscaping works at the clinical students

Hostel at Okomfo Anokye Hospital. We further noted that Professor



Ben Banful does not qualify as a registered business operator as per

the Company’s Code apart from the conflict of interest position he

finds himself in as a lecturer at the Horticulture Department of the

University.

2006. We noted from our visit to the site that, the work was not

properly executed; appropriate soil for grass cultivation to bring out

well-shaped landscaping was neither adequate nor used at all. This

is because, we identified among others, spaces in-between the

grasses, and the flowers planted at the edges cannot grow as

expected. The details of payment are show in table 226.

Table 226: Improper contract award

Date PV No./Chq. No. Details Amount (Net) GH¢

28/5/18 387285/447081 Payment of special advance to Prof. Ben Banful of Horticulture Department for execution of the external landscaping works at the Clinical Hostel.

55,128.12

2007. The contract initially, was to be awarded to the Horticulture

Department, but the Lecturer argued that, he could execute the

work and make savings of GH¢10,419.40 from the cost of

GH¢68,449.00, allegedly quoted by Horticulture Department.

However, invoice from the Horticulture Department to confirm his

assertion was not available.

2008. The irregularity was as a result of Management of the

University’s inaction to ensure the contract was awarded to the

Horticulture department or a registered supplier.

2009. The Horticulture Department has been denied an IGF to an

individual lecturer. The contract could have also served as a learning



grounds for the Horticultural students. The act again, signifies

conflict of interest on the part of the Lecturer.

2010. We therefore recommended to Management to ensure that the

supplier reconstruct the landscaping at his own cost, failing which,

section 92 of the Public Procurement Act, 2003 (Act 663) as

amended by Section 51 of the Public Procurement (Amendment) Act,

2016 (Act 914) shall be enforced against the Management of the

University. Management should also ensure that contract awards

follow the PPA procedures as quoted above.

2011. Management responded that they had communicated the

recommendation to Prof. Banful, the supplier who has promised to

reconstruct the landscaping at his own cost.

College of Science

Unplanned works procurement- GH¢287,928.85

2012. Section 21 of the Public Procurement Act, 2003 (Act 663) as

Amended by Public Procurement (Amendment) Act, 2016 (Act 914)

directs that a procurement entity shall prepare a procurement plan

to support its approved programme. The plan should indicate

contract packages description or lots, estimated cost for each

package, procurement method approvals needed and processing

steps and times and submit to its entity tender committee for

approval.

2013. The College of Science awarded contracts to the tune of

GH¢287,928.85 to three contractors through the University

Procurement Office to renovate Department of Chemistry’s

washrooms and fabrication of burglar proofs. However, these

projects were not included in the University’s procurement plan.

Refer to table 227 for details.



Table 227: Contract for works not included in Procurement Plan

Date PV ID Cheque No.

Contractor Type Of Work Contract Sum (GH¢)

Value Of Work Done (GH¢)

Status Of Work

22/5/18

386409

964446

Perfect

Aluminum Enterprise

Construction of aluminum glazed and burglary proof windows for

the lecture halls at the department of chemistry on block 'A' of the

F.A Kufour building, KNUST

94,758.97

94,758.97

Completed

20/12/18

415314

087586

Maryamank Company Ltd

Plumbing works

on renovation of toilets at Dept. of Chemistry, KNUST

93,377.25

64,800.50

Completed

20/12/18

415319

087585

Alc Horizon Ltd

Renovation of washrooms for the Dept. of

chemistry, KNUST

99,792.63

82,432.80

Completed

Total 287,928.85 241,992.27

2014. We attributed the anomaly to the Procurement Officer’s

disregard for the application of the provisions of the Public

Procurement Act.

2015. This act could lead to budget overrun or planned activities

might not be executed.

2016. We recommended that the College Accountant should engage

all heads of departments to make inputs on capital projects

including renovations to be done at their department during budget

preparation for inclusion in the University’s procurement plan. We

further advised Management of the College to ensure that recurrent

and capital expenditures are in accordance with the approved

budget provisions and also recommended that all procurement

activities should be captured in the entity’s procurement plan for

approval by the entity tender commmittee.



2017. Management responded that the recommendation was well

noted.

University Information Technology Services (UITS)

Operating systems without prior approval by the Auditor

General

2018. Section 11 of the Audit Service Act 2000, (Act 584), specifies

that the public accounts of Ghana and of all public offices, including

the courts, the central and local government administrations, of the

Universities and public institutions of like nature, of any public

corporation or other body or organisation established by an Act of

Parliament shall be audited and reported on by the Auditor-General.

The public accounts of Ghana and of all persons and institutions

referred to in subsection (1) including computerized financial and




2019. It further directs that all financial and accounting systems in

respect of the accounts provided under subsection (1) shall be

subject to prior approval of the Auditor-General and any change in

such system shall be notified to the Auditor-General and shall be

subject to prior approval before implementation.

2020. We noted during our interview with the Head of the University

Information Technology Services (UITS) that, the University did not

seek prior approval from the Auditor-General before implementing

the following systems:

Financial Management Information System (Panacea)

Hospital Management Information System (Paperless)

Payroll System (Paymaster)

Academics Records Management Information System (ARMIS)

Admission Management System



2021. Management’s non-adherence to the prescribed provisions in

the Audit Service Act accounted for the lapse.

2022. The Vice-Chancellor and the Director of UITS may be held

liable for any loss occasioned by defective internal controls identified

in any of the systems deployed by the University.

2023. We advised Management of the University to regularise the

anomaly and ensure that approval is obtained from the Auditor

General for all future IT sytems/software procurements.

2024. Management of UTIS responded that steps would be taken to

submit the University’s software for verification and approval

officially.

Absence of an approved IT Policy

2025. IT Policies and Procedures reflect management guidance and

direction over Information Systems, related resources and IT

Department. It is the responsibility of Management to create a

positive control environment by assuming responsibility for

formulating, developing, documenting, promulgating and controlling

policies covering IT/IS goals and directives. Management also has a

responsibility of ensuring that all users (both internally and

externally) of KNUST IT Systems who are affected by the IT/IS policy

receive a full explanation of the policy and understand its intent.

2026. We noted during our review of the IT/IS Policy that, though

the IT Policy was drafted in 2014, it is yet to be approved by

Management.

2027. We attributed the absence of an approved IT/IS policy to

Management’s delay in approving the 2014-drafted policy.



2028. Technically KNUST does not have a working IT policy to

regulate the use of IT. This situation could lead to staff adopting

unauthorised practices in the use of IT thereby, increasing the

overall risk levels of the confidentiality, availability and integrity of

financial and other important data. Early approval of the policy

would allow for periodic reviews and promote efficiency.

2029. We recommended that the UITS should review the draft IT

Policy to reflect changes that have taken place overtime in the

academic, legal and IT environment. Management should also review

and approve the draft IT Policy with urgency. Management should

again, ensure that the policy, if approved, specifies a review date for

it to be reviewed periodically (preferably annually) to address new

threats and vulnerabilities identified by the use of the IT

infrastructures. The policy should be disseminated to all staff and

students of KNUST to ensure awareness and compliance.

2030. Management said that an updated ICT policy yet to be

promulgated is available, and that steps are being taken to update

the policy for adoption.

Absence of IT Risk Management Arrangements

2031. Risk plays a critical role and almost every business decision

requires executives and managers to balance risk and reward.

Therefore, managing business risks effectively is essential to an

enterprise success. IT related risk management framework is

aligned with the overall Enterprise Risk Management framework.

2032. The University has not carried out a risk assessment on its

IT infrastructure.

2033. Without appropriate IT risk management policy, threats and

vulnerabilities to KNUST’s IT infrastructure (especially business

critical systems) may not be identified and managed within



reasonable timeframes. This may ultimately prevent KNUST from

attaining its corporate objectives.

2034. We recommended to Management of UITS to carry out Risk

assessment on its IT infrastructure to enable it identify all potential

threats, and devise effective and efficient strategies to manage these

risks. Management should also ensure that the formulated IT

Policies and Procedures are based on weaknesses identified in the

risk assessment exercise carried out on KNUST’s IT infrastructure.

2035. Management stated among others that they would engage an

expert to help carry out a risk assessment exercise.

Inadequate Segregation of Duties over Management Information Systems 2036. The purpose of segregation of duties is to prevent fraud and

error by splitting tasks and authority to accomplish a process among

multiple employees or managers. Specifically, the duties that should

be segregated are; custody of the assets, authorisation and recording

of transactions. If combined roles are required, then compensating

controls should be described and applied appropriately for the

organisation.

2037. Our review of the segregation of duty arrangements of the

University’s Financial Management Information Systems called

Panacea disclosed that only one officer virtually performs all the IT

functions associated with the system.

2038. We observed that the absence of proper segregation of duties

arrangement is occasioned by the lack of staff to perform the other

roles.



2039. In a situation where a single officer of UITS performs diverse

and critical functions pertaining to a system without adequate

compensating controls could result in the following:

Misappropriation of assets

Misstated financial statements

Inaccurate financial documentation (i.e., errors or

irregularities)

Improper use of funds

Unauthorised or erroneous changes or modification of data

and programs may not be detected in a timely manner and in

the normal course of business processes.

2040. We urged Management of UITS to put in place compensatory

controls to reduce potential control weaknesses that may arise when

duties, functions or positions of UITS staff cannot be practically and

appropriately segregated.

2041. Management responded that teams are formed for the

purpose of system development and also said that due to inadequate

staff; they were unable to assign staff to single roles. Management

further stated that they take advantage of the high skills of the staff

to assign multiple roles based on the number of staff available.

Management Information System (Paperless)

2042. We noted during our analysis of the University Hospital’s

transactional data obtained from the Consolidated Bank (third party

pay collectors) that, the bank’s tellers do not capture the serial

numbers of the University’s custom pre-printed receipts as part of

the transactional data. We also noted that, the bank’s system

automatically generates its own serial numbers. The finance section

of the Hospital performs an arduous task of manually reconciling

the amount paid on the University’s pre-printed receipt with the

amount captured in the Consolidated Bank’s (CBG) transactional



data to confirm that all payments made by patients have been

captured.

2043. The omission of the pre-printed receipt numbers in the data

was due to the absence of a designed field in the CBG data.

2044. The manual method adopted is highly susceptible to errors.

Also, it is difficult to ensure that all the customised pre-printed

receipts issued to the pay-point collectors have been accounted for.

2045. We recommended that the UITS and the Hospital should

collabourate and impress on CBG to create a mandatory field in their

data to capture all serial numbers of the University’s customised

pre-printed receipts.

2046. Management Responded that a meeting was held on Friday

19th June 2020 among the Consolidated Bank, UITS and Finance

staff to resolve the matter fully. The bank brought a report to the

meeting to confirm that pre-printed receipts have already been

inputted into their revenue collection system.



MINISTRY OF AGRICULTURE

GHANA COCOA BOARD

Introduction

2047. This report relates to the audited accounts of the Ghana Cocoa

Board for the year ended 30 September 2018.

Operational results

2048. The COCOBOD recorded a loss of GH¢78.4million in 2018

financial year as compared with a loss of GH¢161.2million registered

in 2017. This represents a 51.3% improvement in the Board’s

financial performance over the period. Detaios are shown in table

228.

Table 228: Statement of Financial Performance for the year ended 30

September, 2018

Revenue 2018 GH¢ 000

2017 GH¢ 000

Variance GH¢ 000

%

Changes

Sale of Cocoa Beans 8,961,963 10,245,118 -1,283,155 (12.5)

Direct Costs (7,210,223) (8,570,434) 1,360,211 (15.9)

Gross Profit 1,751,740 1,674,684 77,056 4.6

Other Income 63,908 72,413 -8,505 (11.8)

Distribution Expenses (115,997) (329,096) 213,099 (64.8)


(1,230,195) (1,298,066) 67,871 (5.2)

Operating Profit 469,456 119,935 349,521 291.4

Finance costs (953,172) (506,604) 446,568 88.2

Finance Income (405,242) (225,378) 179,864 79.8

Loss for the year (78,474) (161,291) 82,817 (51.4)

2049. Total revenue from Sale of Cocoa Beans decreased by 12.5%

from GH¢10.2 million in 2017 to GH¢8.9 million in 2018. The

decrease in turnover was due a to a fall in the average selling price

per tonne to US$2,152 in 2018 compared with average selling price



of US$2,678 per tonne in 2017. Other income also decreased by a

margin of 11.8% due to a fall in sundry income from GH¢

67.2million in 2017 to GH¢63.9million in 2018.

2050. Direct cost incurred during the year decreased by a margin of

15.87% from GH¢8.5million in 2017 to GH¢7.2million in 2018. The

fall was a result of a Government’s reimbursement of the shortfall of

the proportionate reduction in the producer price of cocoa beans

paid to farmers and other industry participants following the fall in

the world market price of cocoa beans during the 2017/2018 crop

year. Distribution expenses also declined by a margin of 64.75%

from GH¢329.0million in 2017 to GH¢115.9million in 2018. This

was mainly due to non-payment of Export duties in 2018.

Administrative expenses decreased by a margin of 5.23% due to the

fall in other administrative expenses from GH¢425.9million in 2017

to GH¢172.5million in 2018. However Financed cost increased by

88.15% due to an increase in interest on loans and borrowings from

GH¢488million in 2017 to GH¢928.2million in 2018. Details are

shown in table 229.

Table 229: Financial position as at 30 September, 2018

2018 GH¢ 000

2017 GH¢ 000

Variance GH¢ 000

% Change

s

Non-Current Assets

4,686,863 4,556,222 130,641 2.9

Current Assets 6,752,356 4,788,711 1,963,645 41.0

Total Assets 11,439,219 9,344,933 2,094,286 22.4

Current Liabilities (8,163,129) (5,287,809) 2,875,320 54.4


(1,775,644) (2,455,596) 679,952 (27.7)

Total Liabilities (9,938,773) (7,743,405) 2,195,368 28.4



Total Equity 1,500,446 1,601,528 (101,082) (6.3)


2051. Non-Current Assets increased from GH¢ 4.5billion in 2017

to GH¢ 4.6billion in 2018, representing an increase of 2.9 %. This

was mainly due to additions to the Property, Plant and Equipment

during the financial year.

2052. The Current Assets increased significantly by 41.0% from

GH¢4.7billion in 2017 to GH¢ 6.7billion in 2018. This was as a

result of increases in Trade and other receivables from GH¢2.4billion

in 2017 to GH¢4.4billion in 2018.

2053. The current liabilities increased by 54.4% from GH¢5.2billion

in 2017 to GH¢8.1billion in 2018. This was mainly due to increase

in loans and borrowings from GH¢3.0 billion in 2017 to GH¢6.7

billion in 2018.

2054. The Board’s liquidity ratio (Current ratio) decreased from

0.91:1 in 2017 to 0.83:1 in 2018. This clearly indicates that the

Board might not be able to meet its short term obligations as and

when they fall due.

MANAGEMENT ISSUES

Imprest Not Accounted for -GH¢ 137,618.60

2055. Regulation 288(1) of the FAR states “Imprest shall be retired

at the close of a financial year and any imprest not so retired shall

be adjusted to a personal advance account in the name of the

imprest holder.” COCOBOD Policy Guidelines also states “An

account shall be rendered to Account Manager for all accountable

imprest within two (2) weeks, after completing the transaction for

which the imprest was granted. For trekking officers, the account



shall be rendered within two (2) weeks after the return of the

officer to base”

2056. On the contrary, we noted from our review of the staff

ledger balances that Accountable Imprest totalling GH¢137,618.60

granted to eight (8) officers to undertake various activities had not

been accounted for at the end of the financial year as detailed in

table 230.

Table 230: Imprest not accounted for

No.

Name of Payee

Period Granted

Amount to be accounted for ( GH¢)

1 Noah K. Amenyah 06/7/2017-30/9/2017 10,925.00

2 K. Asiedu Mensah

5/10/2016-15/6/2017 43,396.00 3 Charles Ampiah 16/3/2016 800

4 Mary Yaa Allotey 27/7/2017 810 5 Alberta N. K.

Aidoo 7/12/2016-25/9/2017 18,104.50

6 Joseph Nsiah 24/4/2017-22/8/2017 43,718.20

7 Alex Baffoe 14/8/2017-22/8/2017 5,655.00

8 David Asare 7/8/2017 14,209.90 Total 137,618.6

0

2057. We attributed this anomaly to lack of effective supervision

by the Accounts Manager to ensure full retirement of accountable

imprest within the stipulated timeframe.

2058. As a result of this, we could not confirm whether these

expenditures were made on the intended purpose. The practice if not

checked, could lead to fictitious claims and abuse of the system.

2059. We recommended to Management to ensure that this amount

is properly accounted for within the stipulated timeframe, failing

which the amount should be adjusted to the personal advance

accounts in the Officers' names, and recovered, in accordance with

Regulation 288(1) of the Financial Administration Regulations (FAR)

2004.



Unapproved Board Fees and Allowances -

GH¢656,200.00

2060. Section 9(6) of the Ghana Cocoa Board Act of 1984 as

amended states “There shall be paid to members of the Board of

Directors other than the Chief Executive and the three workers’

representatives in respect of their membership such subsistence,

travelling and other allowances as the Secretary (Minister)

responsible for Finance may approve in relation to them.

2061. On the contrary, we noted during our audit of Board

allowances and fees that Management of the COCOBOD could not

provide us the evidence to substantiate that the Directors’ fees and

allowances were approved by the Ministry of Finance.

2062. Our further review disclosed that the Board members were

paid Board fees, Sitting and Inconvenience allowances of

GH¢2,500.00 and GH¢1,500.00 for the Chairman; GH¢2,000 and

GH¢1,200 for Members respectively. Again, the Board approved

overnight allowance of GH¢1,500 to the Board members on

30/09/2017 without seeking approval from the Ministry of Finance.

The total unapproved Board of Directors’ fees and allowances of

GH¢656,200.00 was paid in 2017/2018 financial year as detail

Table 231.

Table 231: Unapproved Board Fees and Allowances

Fees and Allowances GH¢

Board of Directors Fees 226,000.00

Sitting Allowance 208,500.00

Sitting allowance for other meetings 131,400.00

Inconvenience allowance 90,300.00

Total 656,200.00

2063. This anomaly could result in an overpayment of Directors

fees and allowances which could also lead to financial indiscipline.



2064. We recommended that the Board should seek

retrospective approval from the Ministry of Finance in consultation

with the Ministry of Agriculture to legitimise the payment of these

allowances.

Cocoa Marketing Company (CMC) Ghana

Outstanding advances to Labour Supply companies-

GH¢85,386.58

2065. Cocoa Marketing Company as part of its policies granted

advances to labour supply companies and deducted them from

their services fees when they made claims. The amount per the

agreement was supposed to be recovered within five months from

the date of the advance.

2066. Our analysis of the Labour Supply Companies ledgers

disclosed that a total of GH¢85,386.58 is still in arrears in respect

of four of the companies. The delayed periods range between 13

months and 67 months. Details are as shown in the table 232.

Table 232: Advances to Labour

Supply Companies

No

Company

name

Last paid date

Delayed period

as at 30/9/2018 (in months)

Outstanding balance as at 1/10/2017

Repayment during the year

Closing balance as at 30/9/201

8 1

Samsmart "B" and Co

22-05-14

55

23,880.00

-

23,880.00

2 Idzom 29-11-17 13 27,024.95 12,518.82 14,506.13

3 Total Innovative

25-04-17 20 34,000.45 - 34,000.45

4 Liberco 29-05-13 67 13,000.00 - 13,000.00

97,905.40 12,518.82 85,386.58

2067. The anomaly was caused by Management’s inaction.



2068. The company is denied the use of its resources.

2069. We recommended that Management s h o u l d take the

necessary steps to recover the amount and also put in measures to

ensure that advances granted are recovered within the agreed

period.

2070. Management indicated that the Legal Department has

initiated legal suit against the companies to recover the monies

advanced. Management further explained that it cannot locate

Liberco premises though judgment had been obtained against the

company, making it difficult to recover the monies. The bank details

of Liberco cannot be found to enable CMC attach the funds.

Auditors’ comment

2071. We advised that in the event that these companies failed to

pay back the monies especially Liberco the authorising officers may

be made to refund the amount for failing to undertake due diligence

on these companies before advancing such monies to them.

Cocoa Health and Extension Division (CHED)

Locked up investments with Ghana Consolidated Bank

2072. The investment po l icy under Sect ion 33.1 of Ghana

Cocoa Board Structure and Operational Guidelines states “Ghana

Cocoa Board shall invest its funds in a manner which shall

provide adequate security with the optimum investment return

while meeting the daily cash flow demands of the Board and

conforming to all state and local statutes governing the investment

of the funds. Investment shall be made with seasoned judgment and

care, under circumstances then prevailing, which persons of

prudence, discretion and intelligence exercise in the management of

their own affairs, not for speculation, but for investment considering



the probable safety of their capital as well as the probable income to

be derived.

2073. We however noted that, CHED investments totalling

GH¢9,172,917.30 are currently being tied up at the newly

established Consolidated Bank Ghana Ltd. We noted that the

investments of GH¢5,925,432.31 and GH¢3,247,484.99 were with

Unibank Ghana Limited and Royal Bank Ghana Limited

respectively. We further noted that the maturity dates for these

investments were 15 October 2018 and 30 September 2018

respectively, however w i t h t h e t a k e o v e r o f t h e s e

b a n k s i n A u g u s t 2 0 1 8 , b y t h e Consolidated Bank

Ghana Ltd, the maturity dates have been extended to cover a

period between 15 October 2019 and 14 January 2022. We also

noted that the interest rates have been negotiated downwards from

20.0% per annum to 7.5% per annum.

2074. This situation was as a result of compulsory liquidation and

takeover of five Banks including Unibank Ghana Ltd and Royal

Bank Ghana Ltd in August 2018 by the Bank of Ghana. These

banks were consolidated into a newly established Consolidated

Bank Ghana Ltd which took over their assets and liabilities. The

anomaly has led to investment worth GH¢9,172,917.30 being locked

up with the Consolidated Bank Ghana Ltd, until January 2022

when full redemption of the investment is expected. Again the

investments that were yielding 20% per annum have now been

reduced to 7.5% per annum.

2075. In order not to lose these investments, we urged

Management to continue to dialogue with the Management of

Consolidated Bank Ghana Ltd to ensure the safety of the

investments and a smooth redemption on maturity dates already

agreed upon.



2076. Management agreed with our observation and stated that

they had series of meetings with the Consolidation Bank and

have come out with a programme for the recovery of the rest of the

investments. Management explained further that they are in

constant engagement with Consolidated Bank over a possible

reduction of the timelines proposed by the bank for redemption

of the investments.

Deteriorating fleet of vehicles

2077. Section 36.1 (a) (iv) of the Cocoa Board Structure and

Operational Guidelines states “Relevant technical details shall

be provided by the Transport Unit emphasis being placed on

efficient fuel consumption and operational cost”. Again Section

36.1 (c) (i-iv) states “Four Wheel Drive vehicles (4x4) shall be

replaced after seven (7) years or 250,000 kilometres whichever

comes first. Ambulances shall be replaced after twelve (12) years or

200,000 kilometres whichever comes first. Trucks, tankers and the

like shall be replaced after ten (10) years or 250,000 kilometres

whichever comes first. Saloon cars shall be replaced after four (4)

years for Directors and five (5) years for Managers.

2078. Contrary to the above policy guidelines, we noted that

out of 108 vehicles only 49 were in very good condition,

seven vehicles were unserviceable and 42 were in poor

condition. We also noted that twenty-four (24) cocoa growing

districts (five old districts and nineteen newly created districts) did

not have vehicles for their operations. The twenty-four districts

comprised six in Ashanti, four in Eastern, six in Western, two in

Volta, three in central and three in Brong Ahafo regions. Some of

these Districts include Mankraso, Juaso, Oda, Nkawkaw, Bibiani,

Manso Amanfi, Nyarkrom, Fosu, Jasikan Bechem, Berekum etc.

2079. Failure to replace very old and unserviceable vehicles as

required by the operational guidelines resulted in this anomaly. This



situation has led to high fuel consumption and high cost of

maintenance since these vehicles break down quite often. Again over

GH¢4,400,000 has been disbursed on project expenses in

2017/2018 financial year which includes, hand pollination,

irrigation project, disease control and other important programmes

and interventions and if there is inadequate number of vehicles to

enable effective implementation and monitoring, these funds could

go waste.

2080. To p r e v e n t C H E D o p e r a t i o n s s u c h a s

m o n i t o r i n g , p r u n i n g , hand pollination, extension services

and disease control coming to a halt due to deteriorating fleet of

vehicles, we urged Management to take immediate steps to replace

all the unserviceable vehicles and those in very poor conditions. We

also urged Management to abide by the structure and operational

guidelines of the organisation.

2081. Management accepted our observation and stated that they

have sent a request to the Chief Executive for additional vehicles to

support their operations. The Chief Executive has been duly

informed of the conditions of all the operational vehicles.

Management again stated that copies of the reminding letters are

available for verifications.

Cocoa Research Institute of Ghana (CRIG)

Abandoned Equipment-GH¢1,060,805.25

2082. Regulation 0602 of the Stores Regulations 1984

state that “Requisitioning officers shall be held responsible for the

proper use of supplies issued to them.”

2083. We no t ed during our audit inspection that four-

equ ipment acquired for the Soil Science Division of the Institute

cos t ing GH¢1 ,060 ,805 .25 , had, since 2009 never been used

for their intended purpose due to non-availability of accommodation



to install the equipment. In a related development we noted that a

Scintillation Counter acquired as part of this set of equipment

detailed in the table below had no assigned values.

Details are shown table 233.

Table 233: Abandoned Equipment

S/N Items Cost

GH¢

Departm

ent

Year

of Purhcase

1 Carbon Coder 225,000.00 Soil Science

2009 2 Centrifuge 167,300.00

-

2009 3 Mass

Spectrophotometer 332,700.00 - 2009

4 Unit Disester 23,805.25 - 2012 Total 1,060,80

5.25

2084. Dr Francis Padi, acting Manager of the Division explained

that there was no available space to install the equipment. This

irregularity was as a result of management’s failure to plan the

Institute’s annual procurements to include accommodation for

installing the equipment.

2085. This has led to waste of the Institute resources.

2086. We therefore, urged Management to ensure that the

equipment are installed and put to operation. We also advised

management to plan their procurement and buy equipment they

need to prevent the wastage of national resources.

2087. Management s t a t e d t h a t t h e e q u i p m e n t w a s

p u r c h a s e d w i t h t h e assurance from Cocobod that there was

going to be a construction of a new Labouratory Complex for the

Institute which have not being built.

Delayed Projects



2088. Best Contract management p r a c t i c e requires

p r o p e r p l a n n i n g a n d adequate b u d g e t a r y

a l l o c a t i o n before Contracts are awarded.

2089. Our audit disclosed that three Contracts awarded by CRIG

in 2017, have not only delayed for more than one year, the

contractors abandoned site only to return to site three months

before our visit in october 2019. Details are shown table 234.

Table 234: Delayed Projects

No. Quarter’s

Type Contractor

Commencement

Date

Expected

Completion Date

Contract Price

(GH¢)

Payments

To Date (GH¢)

Work

Done

1

Rehabilitation of Junior

Staff Qtrs No. A17/1 & 2-

Tafo

Push 'O'Ventures

May-17 Oct-17 145,528.00 28,231.84 32%

2

Rehabilitation of Senior

Staff Bungalow No. 2, Tafo

Ashakes

Co. Ltd. May-17 Oct-17 192,830.99 73,039.27 70%

3

Rehabilitation

of Senior Staff

Bungalaw No. 13 Tafo

K. A Agal Co. Ltd.

Apr-17 Sep-17 140,000.30 92,657.38 80%

Total 478,359.29 193,928.49

2090. The Head of General Services stated that COCOBOD asked

the Contractors to stop work for investigation to be conducted into

the projects.

2091. The Quarters and Bungalows were in a deplorable state

and payments made so far to the contractors could go waste if these

Quarters are not renovated as soon as possible and could increase

project costs.

2092. We recommended to COCOBOD to fast track the renovation

works in order to minimise the risk of incurring further costs which

could arise from the delay.



2093. Management s tated that the pro jects were expected

to have been completed in 2017, but were delayed due to the ban

on the purchase on capital items by Cocobod Head Office and also

said that a formal request has been made to Cocobod to grant

permission to complete these projects.

Cocoa Clinic

Faulty and outmoded medical equipment

2094. Section 37.1 ( a-f) o f t h e C o c o a B o a r d S t r u c t u r e a n d

O p e r a t i o n a l Guidelines states “Maintenance undertaken

through repair or replacement of parts must retain value of assets”.

2095. Contrary to the above policy, we noted from physical

inspection of medical equipment that a Computerised Tomography

Machine (CT scan) at the Radiology Unit had not been functioning

for one year. This CT scan broke down in February 2018 and

had not been repaired by the time of our visit in December 2019.

We further found that the Clinic has no stand-alone X-Ray

machine, forcing the Radiologist to deploy the Fluoroscopy

machine for Fluoroscopy and normal shots. We also noted that two

Hematology machines namely; ABX Pentra 6C+ and ABX Micros 60

used at the Laboratory for blood analysis had gone beyond their

useful life. These machines have an average life span of five years

and beyond that, the machines cease to provide accurate results.

According to the Laboratory Technician, there is frequent

interruption of work flow due to the inefficiencies of the two

machines.

2096. The inability of Management to take concrete steps in

ensuring the speedy repairs and replacement of these medical

equipment resulted in this anomaly.



2097. The faulty medical equipment had led to poor service delivery

and loss of client and revenue. It could also lead to wrong diagnoses

leading to wrong treatment which could result in deaths. The

incessant pressure on the Fluoroscopy machine led to frequent

breakdowns resulting in the Clinic spending over GH¢50,000 on

repairs and maintenance.

2098. To ensure excellent service delivery and revenue

maximisation, we urged Management to make funds available for

the repair and replacement of faulty and outmoded medical

equipment in order to maintain existing clients and attract new ones

to the facility.

2099. Management noted our observation and explained that Cost

benefit analysis for repair versus replacement has been done for the

CT SCAN Machine which will cost GH¢340,917.06 to repair, its

software which expired on (31/12/18) also has to be upgraded.

Management also stated that they have made a request for the

replacement of the Machine as per letter number CC/CE. 1/

V.15/24 dated 31st August, 2018 which is awaiting approval from

COCOBOD.

Locked up investments with Ghana

Consolidated Bank

2100. The investment policy under Section 33.1 of Ghana Cocoa

Board Structure and Operational Guidelines states “Ghana Cocoa

Board shall invest its funds in a manner which shall provide

adequate security with the optimum investment return while

meeting the daily cash flow demands of the Board and conforming

to all state and local statutes governing the investment of the funds.

Investment shall be made with seasoned judgment and care, under

circumstances then prevailing, which persons of prudence,



discretion and intelligence exercise in the management of their own

affairs, not for speculation, but for investment considering the

probable safety of their capital as well as the probable income to be

derived.

2101. We however found that, Cocoa Clinic investments totalling

GH¢3,762,833.69 had been tied up with newly established

Consolidated Bank Ghana Ltd. We noted that the Clinic rolled over

their investment with Unibank Ghana Limited to the tune of

GH¢3,762,833.69 in fixed deposits before it was liquidated and

taken over by the Bank of Ghana. We further noted that the

maturity dates for these investments were April, May and June

2018. However, with the takeover of this bank in August 2018, by

the Consolidated Bank Ghana Ltd, the maturity dates were extended

to cover a period between 15 October 2019 and 14 January 2022.

We also noted that the interest rates were negotiated downward from

20.0% per annum to thirteen 13.0% per annum.

2102. This situation was as a result of compulsory liquidation and

takeover of five Banks including Unibank Ghana Ltd in August 2018

by the Bank of Ghana. These banks were consolidated into a newly

established Consolidated Bank Ghana Ltd which took over their

assets and liabilities.

2103. The anomaly had resulted in investment worth

GH¢3,762,833.69 locked up with the Consolidated Bank Ghana Ltd,

until January 2020 when full redemption of the investment is

expected. Again the investments that were yielding twenty per cent

per annum have now been reduced to thirteen per cent per annum.

The situation has adversely affected the liquidity position of the

Clinic since interest income in respect of the said investment has

reduced significantly, coupled with the fact that both interest and



principal amount of the investment were not paid to the Clinic upon

maturity.

2104. In order not to lose these investments, we urged

Management to continue to dialogue with the Management of

Consolidated Bank Ghana Ltd to ensure the safety of the

investments and a smooth redemption on maturity dates already

agreed upon.

2105. Management accepted our recommendation and f u r t h e r

stated t h a t t h e y w e r e i n c o n s t a n t d i a l o g u e w i t h t h e

Management of Consolidated Bank Ghana Ltd and were hopeful that

all the funds will be fully recovered.

Need to speed up the Clinic expansion project

2106. The Mission of the Clinic states “To provide a 24 hour

quality medical services to farmers, staff and dependents of the

Ghana Cocoa Board (comprising divisions and subsidiaries),

corporate clients and private individuals at an affordable cost with

highly skilled and well-motivated staff using excellent working

tools”.

2107. We however noted that the Clinic was overwhelmed with

many clients seeking medical services every day. The operations

of the Clinic had also increased tremendously resulting in

significant growth in revenue. We observed that the Clinic recorded

a higher revenue growth of GH¢71,859,737 in 2017/2018

compared to the GH¢31,938,288 in 2016/2017 financial year.

2108. We further noted that the Clinic has grown consistently over

the years in terms of number of patients, medical equipment and



supplies; however, the physical infrastructure supporting these

facilities was woefully inadequate and could not continue to support

the ever- inc r eas ing growth in the provision of essential services

to the f a rme r s , staff, dependents o f Ghan a Co coa Board ,

c o rpo ra t e clients and private individuals as captured in the

Clinic’s mission statement. Also, our enquiries disclosed that plans

were far advanced to expand the physical infrastructure of the

Clinic.

2109. Failure by successive administrations of the Ghana Cocoa

Board to vigorously implement the expansion programme, coupled

with in-decision whether to re-locate the Clinic or expand it resulted

in this implementation delay. The delay in the expansion project

has resulted in lack of office space for the staff of the clinic to

discharge their duties effectually. Again, due to lack of space,

regular store items such as chemicals and other consumables as

well as drugs were stored at one place and some consumables were

lying on the bare floor.

2110. To ensure comprehensive achievement of the Clinic’s

mission, we urged Management to speed up the implementation of

the Clinic expansion project. Failing which Management should

renovate the Clinic annex and the abandoned oxygen building to

provide additional office space to accommodate officers and medical

equipment.

2111. Management noted our observation and recommendation

for implementation.

Failure to retire imprest-GH¢ 45,552.80

2112. Regulation 288 sub-regulation 1&2 of the Financial

Administration Regulations 2004 (LI 1802) states “Imprest shall

be retired at the close of a financial year and any imprest not so



retired shall be adjusted to a personal advance account in the name

of the imprest holder. Failure to retire an imprest by the due date,

unless occasioned by the death or incapacity of the imprest holder

is a breach of financial discipline.”

2113. Section 29.4 (c-e) of the Ghana Cocoa Board structure and

operational guidelines also, states “An account shall be rendered to

the Accounts Manager for all accountable imprest within one week,

after completing the transaction for which the imprest was granted.

For trekking officers, the account shall be rendered within one

week after the return of the officer to base. In the event of the

Head of Department failing to account for the Accountable

imprest, the Accounts M a n a g e r s h a l l i n f o r m h i m a n d

s u b s e q u e n t l y s u r c h a r g e a n d sanction him, if

unaccounted for. Where the imprest was utilised by an officer,

the Head of Department shall require the said officer to account

for and failing which the officer shall be surcharged and sanctioned”.

2114. We noted from o u r audit that accountable imprest of

GH¢45,552.80 was not retired as at 30 September 2018. Some

of the unretired imprest dates back to 2015/2016 financial year.

The table 235 provides the details.

Table 235: Failure to retire imprest

Date imprest was granted

Name of Schedule officer

Reference

No.

Unretired amount GH¢

29/04/2016 Akyaa Asamoah FB/15/16/2201 619.60

13/05/2016 Akyaa Asamoah FB/15/16/2381 624.00

28/03/2018 Akyaa Asamoah FB/17/18/2308 300.00

6/4/2018 Akyaa Asamoah FB/17/18/2351 240.00

23/02/2018 Augusta Ayako FB/17/18/1671 500.00

23/04/2018 Augusta Ayako FB/17/18/2512 558.00 30/04/2018 Augusta Ayako FB/17/18/2590 150.00



30/04/2018 Augusta Ayako FB/17/18/2592 180.00

19/07/2018 Augusta Ayako FB/17/18/3538 1,720.00

25/07/2018 Augusta Ayako FB/17/18/3558 2,272.00

16/04/2018 Augusta Ayako FB/17/18/2477 600.00

25/07/2018 Augusta Ayako FB/17/18/3559 285.00

26/04/2018 Augusta Ayako FB/17/18/2561 800.00

30/04/2018 Augusta Ayako FB/17/18/2586 150.00 30/04/2018 Dr.Frederick

Agbemavfor

FB/17/18/2582 400.00

30/04/2018 Dr. Christoph Debre

FB/17/18/2579 400.00

19/04/2018 Dr. Ruby-Peggy Opuni

FB/17/18/2489 400.00

28/06/2018 Emmanuel Koranteng

FB/17/18/3272 200.00

25/07/2018 Emmanuel Quaye

FB/17/18/3551 3,360.00

3/7/2018 EmmanuelQuaye

FB/17/18/3311 500.00

11/7/2018 Frank Owusu Yeboah

FB/17/18/3388 615.00

17/07/2018 Frank Owusu Yeboah

FB/17/18/3389 320.00

22/02/2018 Gifty Brown Gaisie

FB/17/18/1670 900.00


FB/17/18/1850 1,219.50


FB/17/18/2472 1,124.00


FB/17/18/2479 1,041.00


FB/17/18/3028 1,444.50


FB/17/18/3091 1,216.50


FB/17/18/3293 1,167.50


FB/17/18/3372 1,146.50


FB/17/18/3471 1,333.50


FB/17/18/3534 1,247.50


FB/17/18/3561 1,278.50


FB/17/18/1494 1,264.50

24/04/2018 Nana Kwaku Addo

FB/16/17/1849 5,060.00


FB/16/17/1371 3,635.00


FB/17/18/2530 2,508.70

1/12/2017 Patricia Amankwa

FB/16/17/0461 70.00

30/05/2018 Patricia Amankwah

FB/17/18/2941 100.00

30/07/2018 Patricia Amankwah

FB/17/18/3599 190.00

5/2/2018 Peter Hansen Quartey

FB/17/18/1474 1,000.00

30/04/2018 Seth Aduhene FB/17/18/2587 60.00

6/4/2018 Seth Danso FB/17/18/2364 1,750.00

21/03/2018 Seth Danso FB/17/18/0095 909.00

6/7/2018 Simon Donkor FB/17/18/3324 126.00



27/12/2017 Veronica Eshun

FB/17/18/1160 317.00

Total 45,552.80.00

2115. Failure to retire the imprest immediately after completing

the tasks assigned to the schedule officers resulted in this lapse.

This anomaly could lead to imprest being used for unauthorised

expenditure.

2116. We recommended to Management to ensure that the

schedule officers mentioned above account for the

GH¢45,552.80.00 appropriately. We also urged Management to

surcharge any officer who fails to retire the imprest granted to

him/her in accordance with the Ghana Cocoa Board’s structure and

operational guidelines.

2117. Management accepted our observation and stated that a total

amount of GH¢15,111.00 out of the outstanding GH¢ 45,552.80.00

has since been retired and notices have been served to other

defaulters to retire all outstanding imprest in their names.


2004 (LI.1802) states “A person entrusted with custodial duties for

public and trust moneys shall protect public and trust moneys

against unlawful diversion from their proper purposes and

against accidental loss, and locate such moneys so as to

facilitate the efficient and economical discharge of public financial

business”. Also, Regulation 23 of the Financial Administration

Regulations 2004 (LI 1802) states “Except as otherwise provided in

any other enactment, the collection of public and trust moneys

shall be the responsibility of the head of department, who shall

appoint supervising collectors for each area where collection is

required.



2119. Our review of revenue collection disclosed that Clinic’s bills

are paid by the patients directly to the cashiers at the Accounts

Unit. We noted that the cashiers’ account for their collection at the

close of business on daily basis before Fidelity Bank Ghana Limited

comes the next day for collection and subsequent deposit into the

designated Clinic’s Bank accounts. We further noted that even

though management is in the process of introducing an on-site

banking system at the Clinic, there are no time lines attached to the

implementation of this laudable initiative. We also noted that the

current system does not allow the cashiers’ to accept mobile money

payments, master card and other credible electronic forms of

payments.

2120. Considering the fast- g r o w i n g operations of the Clinic and

the average daily collection of GH¢10,000, the Clinic would be

exposed to robbery and other forms of cash irregularities if the

on-site banking is further delayed. Considering the increasing use

and acceptability of the mobile money payment system, master and

visa cards as well as other forms of electronic payment systems,

falling behind means the Clinic may lose its relevance in a world

where competition arises precisely because of the revolution in

electronic payment system.

2121. In order to save time and improve the Clinic’s cash flow,

we urged management to speed up the process of implementing

the on-site banking concept a l ongs ide o the r systems with

adequate internal controls that would allow for the use of mobile

money, master card and other credible electronic payment systems

in the payment of bills at the Clinic.



2122. Management responded that various banks and other

financial Institutions have submitted proposals for consideration

and are in the process of inviting them to defend the proposals for a

final selection to be made.

Indebtedness of corporate clients to Cocoa Clinic-

GH¢7,561,759

2123. Regulation 2(d) of the Financial Administration

Regulations, 2004 (LI 1802) require a head of every department to


collectable by the department within the terms of any enactment.

2124. Our review of the debtors ledger disclosed that 90 corporate

clients owed the Cocoa Clinic GH¢7,561,759 in respect of health

services provided to them as of 30 September, 2018. We noted that

total receivables from corporate clients for the year 2017/2018

was GH¢11,032,288.00. Amounts totalling GH¢3,470,529

representing 31% of the total indebtedness was recovered in the

review period leaving an outstanding balance of GH¢7,561,759.

Details in table 236.

Table 236: Indebtedness of corporate clients

S/N

Company Name

Amount Owing

GH¢

OPENINIG BALANCE AS AT 30/09/2017 7,570,176.86

1 ACACIA HEALTH INSURANCE 50,662.23

2 ACCRA BREWERY LTD KSI 1,988.62

3 ACCRA MARKET LTD 102.00

4 HIPPO COMPANY LTD KSI 8,531.62

5 ADEHYEMAN SAVINGS&LOANS 4,972.17

6 AGRIC DEV.BANK KSI 11,028.78

7 ASSOCIATION OF RURAL BANK 1,263.53

8 BANK OF GHANA KSI 57,049.35

9 GOLDEN LIFE UT LIFE INSURANCE 870.80



10 CPC 1,022,591.62

11 COTVET 906.25

12 DOMOD CO LTD 6,228.61

13 ECOBANK GH LTD 7,967.91

14 ECG ACCRA 259,481.68

15 GLICO KSI 15,171.08

16 GHANA LIBYAN-ARAB HOLDING 151.10

17 GNPC 10,422.34

18 GHANA SHIPPERS AUTHORITY 560.44

19 GWCL-BASE WORKSHOP KSI 373.78

20 GLICO HEALTHPLAN 17,548.27

21 GRAPHIC COMM.GROUP LTD 63,891.77

22 GRAPHIC COMM.GROUP LTD KSI 5,895.91

23 GUARANTY TRUST BANK 116.56

24 REPUBLIC BOAFO MICRO FINANCE 8,157.96

25 HIPPO COMPANY LTD ACCRA 9,459.39

26 HONDA OVERSEAS UNION LTD 5,702.96

27 ICA GHANA 2,237.42

28 JAPAN MOTORS KSI 229.53

29 MANAGED HEALTHCARE KSI 5,910.81

30 MANAGED HEALTHCARE ACCRA 9,085.36

31 METHODIST UNIVERSITY COLLEGE 27,779.19

32 METROPOLITAN HEALTH INSURANCE 43,521.17

33 MUSTEK ENGINEERING SERVICE 10,227.74

34

NATIONAL COMMUNICATION

AUTHORITY 2,800.56

35

NATIONAL COMMUNICATION

AUTHORITY KSI 2,800.56

36 NHIS ACCRA 284,392.88

37 NHIS DEBISO 515,012.29

38 NATIONAL INVESTMENT BANK 13,238.36

39 NATIONWIDE MUTURAL HEALTH ACCRA 222,153.49

40 NATIONWIDE MUTURAL HEALTH KSI 23,128.49

41 NEW TIMES CORPORATION ACCRA 80,224.78

42 NEW TIMES CORPORATION KSI 2,181.40

43 PRECIOUS MINERAL MARKETING COM 2,559.31



44 PREMIER HEALTH INSURANCE 103,581.96

45 PRODUCE BUYING COMPANY 5,506.87

46 PRUDENTIAL BANK LTD KSI 35,079.69

47 QUALITY LIFE INSURANCE COM 18.86

48 RESIGHA LTD KSI 1,942.46

49 SACRON GHANA 478.08

50 SHELL GHANA 2,539.85

51 STANBIC BANK LTD KSI 5,229.04

52 TOYOTA GH.COM LTD 3,102.85

53 TRANSROYAL GHANA LTD 4,094.64

54 TRANSROYAL GHANA LTD KSI 3,235.25

55 UNIBANK GHANA LTD-KUMASI 14,589.44

56 UNIQUE INSURANCE CO.LTD 947.23

57 VITALITY MUTURAL HEALTH 3,427.70

58 WHITE SAND BEACH CLUB 9,767.72

59 OMANFOFO COMPANY LTD 124.64

60 BIBLE SOCIETY OF GHANA 1,015.98

61 ECOBANK GH LTD KSI 5,539.41

62 HFC BOAFO MICROFINANCE KSI 3,466.94

63 STAR ASSURANCE CO LTD 2,344.76

64 ACACIA HEALTH INSURANCE KSI 5,125.46

65 MIDWEST COMPANY LTD 7,424.33

66 PANBROS SALT INDUSTRIES 2,348.12

67 KEH INSURANCE BROKERS 3,591.52

68

GHANA WATER COMPANY-

PROD/BOOSTER 143,570.64

69 GHANA GRID COMPANY LTD 4,660.28

70 PROFIN GHANA LTD 1,099.29

71 STUDENT LOAN TRUST FUND 4,207.21

72 UNIVERSAL HEALTH INSURANCE 323.10

73 APEX HEALTH INSURANCE 68,291.55

74 TOTAL HOUSE 20,048.19

75 HFC BANK LTD ESSAM 1,223.28

76 HFC BOAFO MICROFINANCE ESSAM 93.20

77 KEIZER MUTURAL HEALTH 12,432.57



78 UNICREDIT GHANA LTD 3,756.44

79 UNICREDIT GHANA LTD KSI 844.44

80 PHOENIX HEALTH INSURANCE 5,979.42

81 JAPAN MOTORS ACCRA 1,174.09

82 COSMOPOLITAN HEALH INSURANCE 88,775.06

83 WIRE WEAVING INDUSTRIES 1,829.40

84 GUINNESS GHANA-ACCACIA 1,360.94

85 DIZENGOFF GHANA LTD 4,385.55

86 HFC BANK LTD KSI 4,058.70

87 ACCRA BREWERY LTD 18,301.49

88 GOLDEN BEAM HOTEL KSI 178.46

89 INNOLINK 28,842.69

90 HIPPO TRANSPORT LTD 3,571.92

TOTAL 11,032,287.64

RECOVERIES DURING THE YEAR 3,470,529.07

BALANCE AS AT 30/09/2018 7,561,758.57

2125. The above condition was occasioned by the inability of the

insurance companies and other corporate organisations to honour

their obligations as and when they fell due and in accordance with

the contract agreement with the Clinic. Also the failure by

Management to enforce the payment terms agreed upon with the

clients resulted in this lapse. This has impacted negatively on the

cash flows position of the Clinic, and could lead to the inability of

the clinic to deliver efficient and professional medical services.

2126. We recommended to Management to strengthen the

debt recovery process of the Clinic to ensure that the debts are

recovered on due dates. We also urged Management to send

reminders to all companies whose payment dates have elapsed and

re-negotiate payment terms with companies who were in financial

distress. We further urged Management to explore all means

including legal debt recovery procedures to recover the debt in order

to avoid bad debts; management should as a matter of policy set



credit limits in months and in absolute amounts beyond which

service should be rendered on “cash and carry” bases.

2127. Management responded that a total amount of

GH¢2,771,688.25 out of GH¢7,561,759 has since been recovered

from corporate clients and private insurance companies.

Management also assured the team that the Clinic has put in place

a robust debt recovery team which ensures that debt owed by

corporate clients and private insurance companies are recovered on

time and also mentioned that demand notices are constantly being

issued to all clients who were indebted to the Clinic and the

approach has helped to reduce the debt situation tremendously.

Bunsu Cocoa Institute

Indebtedness of External Customers –

GH¢215,866.89

2128. Section 91 (1) of the Public Financial Management Act states

“The Board of Directors of a public corporation governed by this Act




2129. Our review of the debtor ’s ledger of the Col lege

d isc losed that 46 institutions owed the College an amount of

GH¢215,866.89 in respect of various hosting services offered by the

College as at 30 September 2018. We further noted that, a total debt

of GH¢58,093.67 owed by 23 external customers and relating to

the prior year did not make any payment in the year under review.

Detailsare sh own in table 237.

Table 237: Debts Owed by External Customers

No Company Name 2018 (GH¢)

2017 (GH¢)



1 The Couple Mr & Mrs Ago-Mensah 120.00 120.00

2 Apostle Boakye Yiadom & Rev. Michael Danso

500.00 500.00

3 Fellowship Intercessor-Ghana 160.00

160.00

4 National Assoc. of Edu. Adm. & Secretarial Staff E/R

400.00

400.00

5 Kwame Nkrumah University Of Science & Technology

959.00 959.00

6

University C o l l e g e Of Agriculture And Environmental Studies

15,096.00

15,095.50

7 Light House Chapel International 3,965.50 3,965.50

8 Ghana Police Service 2,275.00 2,275.00

9 Comfort the Needy 2,483.00 2,483.00

10 SOS 180.00 180.00

11 United P e n t e c o s t a l Church 904.00 904.00

12 Eastern Soccer Academy 2,272.00 2,272.00

13 All Nation Gospel Church 3,210.00 3,210.00

14 Project Endtime Missionary 180.00 180.00

15 Adra Ghana 425.55 425.55

16 House of Faith Ministries 12,937.00 12,937.00

17 Voluntary Services Overseas (V.S.O) 4,173.00 4,173.00

18 Seventh-Day Adventist Church 1,000.00 1,000.00

19 Gekad Educational Consult 4,740.00 4,740.00

20 United Cadres Front 558.00 558.00

21 Ghana Baptist Convention 400.00 400.00

22 Director Wacci, University of Gh. Legon 765.62 765.62

23 N.H.I.S - East Akim Municipal 390.00 390.00

Sub Total

58,093.67 58,093.17

24 BSD Mining Services Ltd. 450.00 1,765.00

25 Methodist Church - K'dua Diocesss 3,097.60 358.00

26 Fairtrade Africa 10,994.00 3,963.84

27 GIZ – SSAB 93,993.12 3,186.00

28 All Nations University 8,710.00 0.00

29 World Education 452.00 451.74

30 Church of Pentecost 3,11.00 3,616.00

31 The Church In K'dua 1,604.00 3,604.00

32 Assemblies Of God Church 42.00 5,652.00



33 S.D.A Church 193.00 4,816.00

34 Winners Chapel 870.00 0.00

35 Cocoa Life/ Mondelez 7,657.00 22,447.60

36 University of Education Winneba 5,625.00 10,085.00

37 Local Churches In Ghana 12,795.00 1,810.00

38 Touton 848.50 914.50

39 Living Flames Baptist Church 820.00 0

40 Church ofPentecost – Effiduase 1,500.00 0

41 Sos-Hgic (Tema ) 44.00 0

42 MOFA/Srid 6,747.00 0

43 Child Right International 48.00 0

44 Centre For Christian Mission 412.00 0

45 Olam Ghana Ltd 300.00 0

46 SDA Church - Accra 260.00 0

Sub Total 160,578.22 62,669.68

Grand Total 215,866.89 120,762.85

2130. Ineffective d e b t c o l l e c t i o n s t r a t e g y i n c l u d i n g

the absence of a dedicated officer to follow up on the outstanding

debts resulted in the non-collection of the receivables.

2131. This has negatively affected the cash flow position of the

College, while the long delay has made it difficult for the college to

collect the debt.

2132. We recommended that Management should strengthen the

debt recovery processess of the College by appointing an officer with

the sole responsibility for the collection of debts so as to ensure that

the debts are recovered timely.



MINISTRY OF JUSTICE AND ATTORNEY-

GENERAL’S DEPARTMENT

ECONOMIC AND ORGANISED CRIME OFFICE (EOCO)

Introduction

2133. This report relates to the audited accounts of the

Economic and Organised Crime Office (EOCO) for the year


Operational results

2134. The Office recorded a deficit of GH¢1,111,635 for the 2017

financial year as compared to a surplus of GH¢654,828 registered

in 2016, representing a decrease of 269.76 percent. The details are


Table 238: Statement of Financial Performance for the year ended

31 December 2017

Income 2017

GH¢

2016

GH¢

Variance

GH¢

%

Change

Government

Subvention

16,076,818 15,542,835 533,983 3.44

Other Income 1,960,281 254,457 1,705,824 670.38

Total Income 18,037,099 15,797,292 2,239,807 14.18

Expenditure

Employees

Compensation

15,944,900 12,814,219 3,130,681 24.43

Goods and Services 3,203,834 2,328,245 875,589 37.61

Total Expenditure 19,148,734 15,142,464 4,006,270 26.46

Surplus/(Deficit) (1,111,635) 654,828.00 (1,948,463) (269.76)

2135. Total income increased by 14.18% from GH¢15,797,292 in

2016 to GH¢18,037,099 in 2017.



2136. Total expenditure incurred in 2017 was GH¢19,148,734 as

against GH¢15,142,464 in 2016, representing a significant increase

of 26.46%. This was due to a 24.43% and 37.61% increase in

Compensation of Employees and Goods and Services respectively

over the 2016 figures. Also, the 37.61 increase in Goods and Services

expenditure was mainly due to depreciation charges totalling

GH¢1,422,579 in 2017.

Financial position

2137. The Financial position of the Office as at 31 December 2017

is shown in table 239.


Items 2017

GH¢

2016

GH¢

Variance

GH¢

%

Changes

Non-Current Assets 7,046,364 8,225,644 (1,179,280) (14.34)

Current Assets 3,986,592 9,441,954 (5,455,362) (57.78)

Current Liabilities 211,758 - 211,758 100

Net Current Assets 3,774,834 9,441,954 (5,667,120) (60.02)

Long Term Liabilities 3,617,507 9,352,148 (5,734,641) (61.32)

Net Assets 7,203,692 8,315,450 (1,111,758) (13.37)

2138. Non-Current Assets decreased from GH¢8,225,644 in 2016

to GH¢7,046,364 in 2017, representing 14.34%. This was mainly

due to depreciation and some disposals of Property, Plant and

Equipment during the year 2017.

2139. Current Assets recorded a decrease of 57.78% from

GH¢9,441,954 in 2016 to GH¢3,986,592 in 2017 due to decrease in

bank balances.

2140. Current Liabilities increased by 100% from zero balance in

2016 to GH¢211,758 in 2017 due to unpaid Transfer Grants to

various officers of the Office on transfer during the year 2017.



2141. The Office’s Long-term Liabilities which represent Exhibits

held, awaiting the outcome of investigations and court rulings,

decreased by 61.32% from GH¢9,352,148 in 2016 to GH¢3,617,507

in 2017.

2142. Net Assets decreased by 13.37% from GH¢8,315,450 in 2016

to GH¢7,203,692 in 2017.

MANAGEMENT ISSUES

Deteriorating Kumasi Building project due to litigation

2143. Section 13 (e) of the Audit Service Act, 2000, Act 584

provides that “The Auditor-General shall examine in such

manner as he thinks necessary the public and other

government accounts and shall ascertain whether in his

opinion programmes and activities have been undertaken with

due regard to economy, efficiency and effectiveness in relation

to the resources utilised and results achieved”.

2144. We noted during the audit that in 2012, EOCO started

the construction of its Kumasi office building project at

Adiebeba. However, the Kumasi High Court (Land Division) on

4 February 2013 placed an injunction on the land resulting in

a court injunction Order granted by, restraining EOCO from

proceeding with the project. We further noted that the legal suit

was filed by one Nana Adu Abankroh Acheampong II,

Adiebebahene (Plaintiff) in November 2012 against the Attorney

General and Lands Commission (Defendants) claiming

ownership of the said land (Plot No. 2A Block “U” Adiebeba),

but later amended his Writ of Summons and the Statement of



Claim to replace the Attorney General with EOCO in March

2018.

2145. The project which was about 40% complete before being

suspended was deteriorating due to the unfair weather

conditions. Considering the extent of damage and deterioration

of the project, EOCO would incur additional costs to rectify and

complete the project, should it win the case.

2146. The situation might therefore result in increased cost for

the completion of the project without any compensation,

should the Courts judgment be in favour of the Office. Also, the

building may have to be pulled down if the ligation further

delays. This might therefore not achieve value for money.

2147. We recommended that EOCO should amend its

Statement of Defence and include damages, costs or any other

relief(s) that the Court deems just and equitable, in its Counter

Claims against the Plaintiff to compensate the Office for the

additional costs it will incur on the building as a result of the

suit, should judgment be in its favour. We further urged

Management to actively involve its Legal Unit to liaise and

collaborate with the Attorney General in defence of the case.

2148. Management accepted our recommendations and further

expressed their readiness to implement them.

Deterioration of seized vehicles 2149. Section 24 (1) and (3) of the Economic and Organised

Crime Act, 2010 (Act 804) states that “An authorised officer of

the Office or any other public officer authorised by the



Executive Director, shall seize property if the officer has

reasonable grounds to suspect that the property is the

proceeds of a serious offence. The Court shall make an order

for the continued seizure of the property for a period of not

more than three months at a time from the date of seizure and

for a total period of not more than two years”.

2150. Section 52 (1) & (2a) of the Public Financial Management

Act, 2016 (Act 921) also provides “A Principal Spending Officer

of a covered entity, state-owned enterprise or public

corporation shall be responsible for the assets of the institution

under the care of the Principal Spending Officer and shall

ensure that proper control systems exist for the custody and

management of the assets. A control system specified in

subsection (1) shall be capable of ensuring that preventive

mechanisms are in place to eliminate theft, loss, wastage and

misuse”.

2151. We noted that out of thirty-four (34) vehicles which were

impounded or seized from individuals and companies by EOCO

some dating as far back as 1997 in respect of cases under

investigations. Ten (10) were in a deteriorating state due to the

effect of the weather while some were unserviceable.

2152. The anomaly, if not properly checked, may result in

owners of such deteriorated or damaged vehicles taking legal

action against the Office which might result in damages or

judgment debts being awarded against EOCO.



2153. We attributed the cause of this lapse to the fact that

EOCO does not have a convenient garage for keeping such

vehicles which therefore compelled it to keep most of the

vehicles under its custody in the open at the premises of its

office and a residential building, thereby exposing them to the

unfair weather conditions.

2154. We recommended that Management should take steps to

provide a secured and convenient garage for the purposes of

keeping all such vehicles being held for longer periods in order

to prevent them from deterioration caused by the weather and

other damages. We also urged the Office to speed up

investigations into the seizure of these vehicles so as to dispose

of the cases timeously. We further urged Management to

conduct routine checks to ensure that vehicles remain in the

shape in which they were impounded.

2155. Management accepted our recommendations and

promised to implement them.

LAW REFORM COMMISSION Introduction

2156. This report relates to the audited accounts of the Law Reform

Commission for the year ended 31 December 2016.

Operational Results

2157. The financial year 2016 ended with operational deficit of

GH¢40,952.86, representing (339.53) % decrease of the prior year’s

surplus of GH¢17,097.37. The decrease was due to decreases in

Compensation for Employees and Goods and Services by (3.54) %



and (26.66)% respectively. The comparative indicators for the two

years are shown in Table 240.

Table 240: Income Statement 2016

Income 2016 GH¢

2015 GH¢

% Change

Govt. Subvention 506,476.03 607,341.81 (16.61)

Other Income 3,739.20 170.00 2,099.53

Total Income 510,215.23 607,511.81 (16.02)

Expenditure


493,000.88 511,098.19 (3.54)

Goods and Services 58,167.21 79,316.31 (26.66)

Total Expenditure 551,168.09 590,414.50 (6.65)

Surplus/(Deficit) (40,952.86) 17,097.37

2158. Total income registered a decrease of 16.02%, from

GH¢607,511.81 in 2015 to GH¢510,215.23 in 2016. The downward

movement was mainly due to the decrease in Government

Subvention from GH¢607,341.81 in 2015 to GH¢506,476.03 in

2016, a 16.61% decrease.

2159. Total Expenditure also went down by 6.65 % from

GH¢590,414.50 in 2015 to GH¢551,168.09 in 2016. Compensation

for Employees decreased by 3.54% from GH¢511,098.19 in 2015 to

GH¢493,000.88 in 2016. Goods and Services also went down by

26.66%, from GH¢79,316.31 in 2015 to GH¢58,167.21 in 2016.

Financial Position

2160. The Commission’s financial position as at 31 December 2016

is shown in Table 241.



Table 241: Balance sheet as at 31 December 2016

Items 2016 GH¢

2015 GH

% Change

Non-Current Assets

168,629.06 179,620.06 (6.1)

Current Assets 1,247.11 31,209.50 (96.0)

Current Liabilities - - -

Total Assets 169,876.17 210,829.56 (19.4)

2161. Non-Current Assets decreased by GH¢10,99.00 representing

6.1% from Ghc179,620.06 in 2015 to Ghc168,629.06 in 2016 due

to consumption of fixed assets.

2162. Current Assets decreased by 96.0%, from GH¢31,209.50 in

2015 to GH¢1,247.11 in 2016.

2163. There were no Current Liabilities in both 2015 and 2016.

2164. We therefore advised Management to utilise the funds to

improve the Commission, in accordance with budget provisions.

2165. Section 52(1 and 2). Of the Public Financial Management Act

2016, Act 921 states “a Principal Spending Officer of a covered




systems exist for the custody and management of the assets’

(2) A control system specified in subsection (1) shall be capable of

ensuring that (a) preventive mechanisms are in place to eliminate

theft, loss, wastage and misuse;

2166. Our examination of records showed that Law Reform

Commission (LRC) purchased two (2) motorbikes with registration

Nos. M-13-GR 8291 and M-13-GR 8292 in 2013.



2167. However, our asset verification noted that the motorbikes had

not been used since they were purchased.

2168. No reason was attributed to this anomaly by Management.

2169. Monies spent on T&T for dispatching could be channelled to

other pressing needs of the Commission and the deterioration of

these motorbikes could lead to loss of government funds which could

be used for other activities.

2170. We recommended to management to send the motorbikes to

the Ministry of Justice if they have no need of them so that they

would be re-allocated to other agencies of the Ministry that has need

for them.

2171. Management responded that, the Law Reform Commission

did not receive the motor bikes from its sector Ministry, but they

were rather purchased by the Commission. They have set up a Board

of Survey for that purpose.

Auditors’ comment

2172. Management obviously did not need the the motor bikes yet

went ahead and bought them, we therefore recommended that the

authorising and approving officers should be made to refund the

current market price of the motorbikes to the institution for our

verification.

LEGAL AID SCHEME

Introduction

2173. This report relates to the audited accounts of the Legal Aid Scheme

for the year ended 31 December 2016.



Operational results

2174. The 2016 financial year ended with a deficit of GH¢44,605.79

representing 75.5% of the previous year’s deficit of GH¢182,173.25.

Details of comparative figures are stated in table in table 242.

Table 242: Income Statement as at 31 December 2016

Income 2016 GH¢

2015 GH¢

Difference GH¢

% Change


3,969,540.72 3,789,291.94 180,248.78 4.76

Internally Generated Fund

24,821.10 3,600.00 21,221.10 589.4

Donor Fund 35,092.87 303,926.32 (268,833.51) (88.45)

Total Income 4,029,454.69 4,096,818.26 (67,363.57) (1.6)

Expenditure

Compensation For Employees

3,902,197.31 3,653,291.80 248,905.51 6.81

Goods and Service

171,380.17 606,195.61 (434,815.44) (71.73)

Capital Expenditure

483.00 19,504.10 (19,021.10) (97.52)

Total Expenditure

4,074,060.48 4,278,991.51 (204,931.03) (4.8)

Surplus/(Deficit) (44,605.79) (182,173.25) (137,567.46) (75.5)

2175. Total Income decreased by GH¢67,363.57 representing 1.6%

from GH¢4,096,818.26 in 2015 to GH¢4,029,454.69 in 2016. The

decrease was due to donor fund which reduced from GH¢303,926.32

in 2015 to GH¢35,092.81 in 2016.

2176. Total Expenditure also reduced by GH¢204,931.03




GH¢4,074,060.48 in 2016. This was caused by 71.7% reduction in

releases for Goods and Services from GH¢606,195.61 in 2015 to

GH¢171,380.17 in 2016.

Financial Position 2177. The Scheme’s financial position as at 31 December 2016 is

shown in Table 243.


Item 2016 GH¢

2015 GH)

Diff % Change

Current Assets 114,094.39 160,150.18 (46,055.79) (28.76)

Current Liabilities

990.00 940.00 50.00 5.3

Net Assets 113,104.39 159,210.18 (46,105.79) (28.96)

Liquidity 115.2:1 170.4:1

Current Assets 2178. Current Assets reduced by GH¢46,055.79 representing 28.76

% from GH¢160,150.18 in 2015 to GH¢114,094.39 in 2016. This

was caused by reduction in the deposit of cash and cash equivalent

during the year under review.

2179. Current Liabilities increased by GH¢50.00 representing 5.3%

from GH¢940.00 in 2015 to GH¢990.00 in 2016.

2180. The liquidity ratio of 115.2:1 shows that the Scheme is in the

position to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

IT Unit under resourced

2181. Information Technology (IT) which is the driving force of any

Institution requires adequate resources to function effectually.



2182. We noted during the audit that the IT unit was under

resourced and therefore unable to perform its required functions.

There was only one staff in charge of the Unit who was initially

employed to handle software management but ended up performing

hardware duties as well. We further noted that the antivirus for the

computers had expired long before the Audit Team visited and had

still not been renewed as at the time the Team exited the audit

location in 2017.

2183. The condition above could be attributed to inadequate

budgetary allocation of funds from the government.

2184. The Legal Aid Scheme stands a risk of losing most of its

information should there be a software crash.

2185. We recommended that Management should resource its IT

unit as a matter of urgency to enable it achieve its objectives.

2186. Management responded that, efforts would be made to

acquire human and other resources to the IT Unit.



MINISTRY OF COMMUNICATION

GHANA POST COMPANY LIMITED

Introduction 2187. This report relates to the audited accounts of the Ghana Post


Operational Results 2188. The operations of the Company for 2017 saw a 25.3%

upwards movement from a surplus of GH¢248,744 in 2016 to

GH¢311,649 in 2017. Details are provided in table 244.

Table 244: Income and Expenditure for 2017

Income 2017 GH¢

2016 GH¢

% Change

Revenue 54,812,706 46,906,219 16.9

Operating Cost (47,600,483)

(40,886,627)

16.4

Gross Profit 7,212,222 6,019,592 19.8

Other Income 5,904,281 4,140,685 42.6

Operating Income 13,116,504 10,160,277 29.1

Gen & Admin Expenses (12,107,609)

(9,396,816) 28.8

Profit before finance charge and tax

1,008,885 763,461 32.1

Finance cost (95,461) (113,254) (15.7)

Profit before tax 913,424 650,207 40.5

Tax (601,775) (401,463) 49.9

EAIT 311,649 248,744 25.3

Other Comprehensive Income - -

Total Comprehensive Income 311,649 248,744

2189. Total Income of the Company, which is made up mainly of

Letter Mails, Letter Boxes, Parcels, EMS, Business Mail and

Financial Services increased by 16.9% from GH¢46,906,219 in 2016



to GH¢54,812,706 in 2017. Other Income also increased from

GH¢4,140,685 in 2016 to GH¢5,901,281 in 2017.

2190. General and Administrative Expenses also grew by 28.8%

from GH¢9,396,816 in 2016 to GH¢12,107,609 in 2017. This

resulted mainly from a 142.5% rise in Recurrent Expenditure from

GH¢1,539,766 in 2016 to GH¢3,733,352 in 2017.

Financial Position

2191. The Company’s financial position as at 31 December 2017 is

shown in Table 245.


2017

GH¢

2016

GH¢

%

Change


Current Assets 34,385,785 22,842,819 50.5



Net Assets 10,591,856 2,065,760 412.7


2192. Non-Current Assets increased by 55.1% from GH¢24,296,325

in 2016 to GH¢37,690,298 in 2017. This was as a result of additions

to Property, Plant and Equipment and the Capital Work in Progress.

2193. Current Assets also increased by 50.5% from GH¢22,842,819

in 2016 to GH¢34,385,785 in 2017. This was due to 58.9% and

54.0% increases in Trade and Other Receivables and Cash and Cash

Equivalents respectively.

2194. Current Liabilities increased by 48.1% from GH¢31,208.289

in 2016 to GH¢46,227,024 in 2017 as a result of increases in Trade

and Other Payables, Advance from Waylead, and Tax Payable.



2195. The liquidity of ratio of 0.7:1 (2016: 0.7:1) shows that the

Company may not be able to meet its short-term obligations as and

when they fall due.

MANAGEMENT ISSUES Non-Existent Entity Tender Committee (ETC)

2196. Section 17 (1) of the Public Procurement Act,2003 (Act 663)

states “Each procurement entity shall establish a Tender Committee

in the manner set out in Schedule 1B as amended”.

2197. Section 17 (2a, b & c) of the Act 663 also states “In the

performance of its functions, a Tender Committee shall

(a) ensure that at every stage of the procurement activity,

procedures prescribed in this Act have been followed;

(b) exercise sound judgment in making procurement decisions;

and

(c) refer to the appropriate Tender Review Board for concurrent

approval, any procurement above its approval threshold,

taking into consideration the fact that approval above the

Entity Tender Committee is a one stop only approval.”

2198. Our review of records disclosed that the Company made

several procurements in respect of goods works and services worth

millions of Ghana Cedis; there was however no Entity Tender

Committee (ETC) to monitor and supervise all such procurement

activities as stipulated above.

2199. We attributed this infraction to Management’s inability to

comply with the relevant provisions of the Public Procurement Act,

2003 (Act 663 and Act 914) as amended.



2200. The non-existence of an Entity Tender Committee has serious

consequences with regards to procurement infractions and also

undermines Section 17 (2a, b & c) of the Public Procurement Act,

2003 (Act 663).

2201. We recommended that management of Ghana Post as a

matter of urgency should constitute the Entity Tender Committee to

take charge of all procurement activities as prescribed by the law

without any further delay for audit validation.

Inappropriate Method of Procurement for Goods-

GH¢1,211,192.52

2202. The Fifth schedule of the Public Procurement (Amendment)

Act, 2016 (Act 914) spells out the thresholds for procurement as

reproduced in table 246.

Table 246: Use of Inappropriate Method of Procurement for Goods

Procurement Method Contract Value Threshold

International Competitive Tender:

a. Goods

b. Works

c. Technical Services

Above GH¢10,000,000.00 Above GH¢15,000,000.00 Above GH¢5,000,000.00

National competitive Tender:

a. Goods

b. Works

c. Technical Services

More than GH¢100,000.00 up to GH¢ 10,000,000.00 More than GH¢200,000.00 up to GH¢ 15,000,000.00 More than GH¢50,000.00 up to GH¢ 5,000,000.00

Price Quotation: a. Goods

b. Works

Technical Services

Up to GH¢100,000.00 Up to GH¢200,000.00 Up to GH¢50,000.00



Restricted tender and Single Source Procurement and Selection

Subject to approval by the Board

Consultancy Services No threshold limits but Single Source Subject to Public Procurement Authority Approval

2203. Our review of transactions of Ghana Post with regards to

procurements disclosed that the Company procured several goods

using Request for Quotation as the method of procurement instead

of varying the methods where applicable.

2204. We noted that seven (7) of these transactions with a total

value of GH¢1,211,192.52, exceeded the request for quotation

threshold in contravention of the procurement law. Details are

shown in table 247.

Table 247: Use of Inappropriate Method of Procurement for Goods

Date PV. No Bank Details of payment

Amount GH¢

Supplier

05/05/17 5&6 N.I.B Payment for assorted money order and remittance booklet supplied

149,995.00 Tripple A

31/05/17

33 /05 N.I. B Payment of GH¢ equivalent

US$29,238.37 for One (1) new Nissan Panel Van

130,110.76 Japan Motors

Trading Co Ltd

22/06/17 09/06 N.I.B Payment of GH¢1,211,192.52 equivalent US$ 29,238.37 for One (1) new Nissan Panel Van

130,110.76

Japan Motors

17/10/17 17,18,19,20,21&29

N.I.B Payment for the supply of office furniture and fittings

103,581.00 Expert Furnish



30/08/17 08/80 Fidelity

Payment for 40 pcs of Desktop Computers

107,395.00

I.P.M.C

14/12/17 12/22 Fidelity

Payment for three (3) used Benz buses

270,000.00

Benows Ventures

22/12/17 12/12 N.I.B Payment for the supply of 100,000 pcs of EMS Plastic Envelopes

320,000.00 Medazee Ventures

Total 1,211,192.52

2205. Management’s inability to constitute the Entity Tender

Committee led to this infraction.

2206. The procurement of these goods was not subjected to the

appropriate National Competitive Tendering processes; hence we

could not establish whether value for money was achieved in the

procurement of these goods or not.

2207. We advised Management to as a matter of urgency regularise

the above anomaly with the Public Procurement Authority (PPA) in

accordance with the Public Procurement (Amendment) Act, 2016

(Act 914) and inform our office for verification.


Procurement Above Head of Entity’s Threshold - GH¢1,700,643.44

2209. Section 21(4&5) of the Public Procurement Act, 2003 (Act

663) states “The procurement entity shall send to the Tender Review

Board, procurement notices for contracts and procurement plans

above the thresholds stipulated in Schedule as shown in table 248

for publication in the Public Procurement Bulletin and 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.”

2210. Section 15 (4) of the Public Procurement Act, 2003 (Act 663)

also states “The head of an entity is responsible to ensure that

provisions of this Act are complied with; and concurrent approval by

any Tender Review Board shall not absolve the head of entity from

accountability for a contract that may be determined to have been

procured in a manner that is inconsistent with the provisions of this

Act”

2211. The Second schedule of the Public Procurement (Amendment)

Act, 2016 (Act 914) set out the Approving Authority threshold as in

table 248.

Table 248: Procurement Above Head of Entity’s Threshold

Approving Authority

Category A and B

Goods GH¢

Works GH¢

Services GH¢

Central Tender Review Committee

Above 1,000,000 Above 15,000,000

Above 1,000,000

Entity Tender Committee

Above100,000-1,000,000

Above 500,000 to 15,000,000

Above 100,000 to 1,000,000

Entity Head Up to 100,000 Up to 500,000 Up to 100,000

2212. Contrary to the above provisions, our review of records

disclosed that the Head of Entity of Ghana Post sanctioned the

procurement of goods and services worth GH¢1,700,643.44, that

were above his threshold, without recourse to the Entity Tender

Committee or the appropriate Tender Review Board for approval.




Table 249: Sanctioned procurement goods and services

Date PV. No Bank Details of

payment

Amount

GH¢

Supplier

05/05/17 5&6 N.I.B Payment for

assorted

money order

and remittance

booklet

supplied

149,995.00 Triples A

31/05/17

33 N.I.B Payment GH¢

equivalent

USD 29,238.37 for

One (1) new

Nissan Panel

Van

130,110.76

Japan

Motors

Trading Co Ltd

22/06/17 09/06 N.I.B Payment GH¢

equivalent

USD 29,238.37 for

One (1) new

Nissan Panel

Van

130,110.76

Japan

Motors

17/10/17 17,18,19,

20,21&29

N.I.B Payment for

the supply of office

furniture and

fittings

103,581.00

Expert

Furnish

30/08/17 08/80 Fidelity Payment for

40 pcs of

Desktop Computers

supplied

107,395.00

I.P.M.C

14/12/17 12/22 Fidelity Payment of

three (3) used

Benz buses

270,000.00

Benows

Ventures

22/12/17 12/12 N.I.B Payment for

the supply of

100,000 pcs of EMS

Plastic

Envelopes

320,000.00 Medazee

Ventures



11/10/17 22

N.I.B Contract for

installation of

&

implementatio

n of Accounting

Software

(SAGE)

489,450.92

Trust

Consult

Total 1,700,643.44

2213. We attributed this anomaly to Management’s non-compliance

with the provisions of the Public Procurement Act, 2003 (Act 663).

2214. Non-compliance with provisions in the procurement law

impacts negatively on transparency and proper accountability in the

public financial management and also compromises value for money

concept. There could also be fictitious procurements.

2215. We urged Management as a matter of urgency to constitute

the Entity Tender Committee and refer those transactions to the

Committee for ratification and inform our office accordingly.

2216. Management accepted our recommendation for compliance

Inadequate documentation on Procurement activities

2217. Section 1.10.2 of the Public Procurement Manual states

“Procurement Units have a general responsibility for maintaining

Procurement Dossiers and Contracts Registers, but each

Procurement Entity must ensure that complete documentation is

maintained in respect of all procurement activities and for contracts

and agreements entered into.

2218. Responsibility for the official maintenance of record files,

authority to access files, and co-ordination of management and

follow-up actions must be clearly defined in each Procurement

Entity to avoid:



i. partial and incomplete records being held by several different

departments and individuals;

ii. unauthorised access to records; or

iii. failure to take any necessary action at the right time.”

2219. Section 1.10.3 of the Public Procurement Manual also states

“All documents regarding a particular procurement shall be kept for

future reference and monitoring and control purposes. The

recommended filing structure for a record of procurement shall

include the following documentation:

Original Request from Originating Officer

Correspondence with Originating Officer

Correspondence with Suppliers, Contractors and

Consultants/ (pre-order only)

Internal Correspondence within Procurement Unit

Requests for Expressions of Interest

Shortlist or Advertisement

Tender documents and Specifications/Terms of Reference

Correspondence with suppliers relating to Tender

Tenders, Quotations or Pro-forma invoices received

Tender opening records

Record of Tender Securities and release

Evaluation Report

Submission to the relevant authority & Minutes of proceeding

Notice of Contract Award and publication

Contract/Purchase Order & Acknowledgement of receipt

Delivery/Executions Documentation

Inspection and Acceptance Reports

After sales warranty and performance claims

Copy of Record of Commitment of Funds (A & EI)”



2220. We noted during our review of records that Ghana Post as a

Procurement Entity made several procurements in respect of goods,

works and technical services, but did not maintain sufficient and

proper documentation in respect of each supplier, contractor or

service provider as required by the above provisions.

2221. We attributed these infractions to lack of effective monitoring

and supervision on the part of Management over the activities of the

Procurement/Material Unit. We are also of the view that, the non-

establishment of the Entity Tender Committee contributed to these

infractions.

2222. Inadequate and well organised documentation on

procurement activities made it very difficult for the Audit Team to

review and ascertain the validity of transactions with regards to

transparency, competitiveness as well as value for money.

2223. Lack of sufficient documentation on procurement activities

exposes Ghana post to huge financial risks. In the event of any

litigation, Ghana Post would require appropriate documentary

evidence whether as plaintifs or defendants.

2224. We urged Management to intensify its monitoring and

supervisory role over its procurement function; build capacity of the

procurement staff and ensure that all necessary measures are put

in place for strict compliance with the Public Procurement Act and

the Manual.

2225. Management accepted our recommendation and said steps

were being taken to implement our recommendations

Purchases without alternative Quotations - GH¢716,201.71 2226. Section 43(1) of the Public Procurement Act 2003, (Act 663)

states “The procurement entity shall request quotations from as



many suppliers or contractors as practicable, but from at least three

different sources.”


Regulations, 2004 (LI 1802) also requires any officer responsible for

the financial management of a department to ensure that acquisition

of government stores is made and applied to public purposes in the

most economical way.

2228. We found to the contrary of the above provisions that the

Company procured goods and services worth GH¢716,201.71,

without sourcing for three (3) or more alternative quotations with the

view to obtaining value for the tax payers money. Details are shown

in table 250.

Table 250: Purchases Without Alternative Quotations

DATE PV. NO BANK DETAILS OF PAYMENTS

AMOUNT GH¢

PAYEE

01/11/2017 3 NIB Payment for 20 cartons ENOES 15W40 Engine oil & 416L ENOES 10W40

16,588.76 BASHE VENTURES

01/11/2017 9 NIB Payment of 12 boxes of (80A) Hp Toner supplied

2,335.80 SLY- LAUDEESCO ENTERPRISE

07/04/2017 90 Fidelity Cost of engine overhauling of

official vehicle No GT-8144-09

9,514.39 PROFESSIONAL AUTO CENTRE

LTD

07/04/2017 89 Fidelity Cost of Spare parts supplied for replacement for vehicle No GR 503-P

7,422.44 PROFESSIONAL AUTO CENTRE LTD

19/07/17 09-Jul NIB Payment for 100,000 plastic combi seal supplied

35,495.00 Control Company Ltd

19/07/17 01/07/2017 NIB 30% part-payment of 35,000 pcs A5 size window envelopes quarto size for UEW

11,550.00 Grober Hand Grafix



19/7/2017 17/07/2017 NIB Payment for 10,000 LS EMS Prepaid Envelopes supplied

18,320.00 BOSOMPEM BUS VENTURES

19/7/2017 08/07/2017 NIB Payment for 1000 EMS PRIORITY Envelopes A4 KNUST

34,350.00 Norbert Printing


17,175.00 BOSOMPEM BUS VENTURES

18/9/2017 19/09/2017 NIB Payment for 25,000

LS EMS PRIORITY ENVELOPES supplied

50,093.75 Norbert Printing

19/7/2017 06/07/2017 NIB Payment for 30,000 A4 & 30000 Quarto size EMS Priority Envelopes supplied

60,112.50 Triple A

17/10/17 17/10/2007 NIB Payment for 40 pcs of swivel chairs supplied

32,279.62 Expert Office Furnish



17/10/17 15/12/2017 NIB Payment for 20 pcs of swivel chairs and 3pcs 4 in 1 work

station supplied


22/11/17 29/01/2017 NIB Payment for the supply of furniture and fittings


17/10/2017 13/10/2007 NIB Payment of 6 pcs of Conference Chairs


18/9/2017 9/43/17 NIB Payment for 50,000

pcs medium size EMS Plastic envelopes supplied

36,000.00 Control

Company Ltd

15/11/2017 11 NIB Payment of (6000) pcs Postal Blank Keys supplied

41,220.00 HOMEFIELD ENTERPRISE

22/12/2017 13 NIB Payment for 35,000 pcs of EMS Plastic Envelopes

25,956.00 CONTROL COMPANY LTD

22/12/2017 15 NIB Payment for 20 pcs of Swivel chairs supplied

37,428.60 EXPERT OFFICE FURNISH

22/12/2017 18 NIB Payment of 5000 pcs EMS Priority Envelopes

5,000.00 SOUND STEP



22/12/2017 24/12/2017 NIB Payment for 20,000 pcs of Priority Envelopes

29,770.00 CHUDY GRAFIX

22/12/17 25/12/2017 NIB Payment for 15000 prepaid A4 Envelopes supplied

17,175.00 BOSOMPEM BUS. VENTURES

11/08/2017 44 UBA Payment for 40 asset track motor cycle for operational vehicles

9,600.00 MTN SCANCONM LTD

16/2/17 28 UBA Payment of 40%

contract sum for the evaluation of some selected office premises

14,330.00 BEN DWIMOH

& CO

22/12/2017 26 NIB Payment of 6000 A4 and 6000 Quarto size EMS Priority Envelopes

12,022.50 NORBERT PRINTING

14/12/2017 38 Fidelity Payment of 25pcs, 15pcs and 55pcs of battery

3,575.00 ROYAL MOTORS

15/03/17 27 Fidelity Payment for manager's chair ,office executive desk and visitors chair for MD's office

5,749.37 ORCA DECO

19/04/2017 85 Fidelity Cost of three (3) boxes of Printronix Ribbons P 7000

7,058.93 REISS & CO GH LTD

14/12/2017 10 Fidelity Cost of buying motorbikes parts for speedInk

5,708.95 JAPAN MOTORS

18/9/2017 3 NIB Payment for 5000

pcs of EMS Priority Envelopes printed and supplied

4,293.75 CHARVALYN

AGENCY

17/11/17. 125/11 UBA cost of lacoste and printing on each

6,000.00 Atistik Co. Ltd

11/08/2017 84/11 UBA Refreshment for 450 people

11,250.00 Diplomat 2 Ventures

TOTAL 716,201.71

2229. We attributed this anomaly to Management’s inability to

adhere to the provisions of the Public Procurement Act, 2003 (Act

663).



2230. This anomaly could lead to over pricing and supply of inferior

goods due to lack of competitiveness. The Company thereby risks

paying higher prices for goods and services rendered.

2231. We advised Management to comply with the Public

Procurement Act to promote competition, transparency and to

obtain maximum value for money in all future procurements.

2232. Management said they will strictly adhere to our

recommendation going forward.

Office Space Turned into a Store for Obsolete Items and non-

disposal of unserviceable items

2233. Regulation 2 (h) of the Financial Administration Regulations,

2004 (L.I 1802) states “The head of government department shall

preserve in good order and secure the economical use of all

equipment and stores used by the department;”


(Act 921) also states “A Principal Spending Officer of a covered entity,





2235. Section 82 (1 & 2) of the Public Procurement Act, 2003 (Act

663) states “The head of procurement entity shall convene a Board

of Survey comprising representatives of departments with

unserviceable, obsolete or surplus stores, plant and equipment

which shall report on the items and, subject to a technical report on

them, recommend the best method of disposal after the officer in

charge has completed a Board of Survey form. (2) The Board of



Survey’s recommendations shall be approved by the head of the

procurement entity and the items shall be disposed of as approved.”

2236. During our review of inventory, we noted that an office space

of approximately 386 square metres at Head Office Block B had been

converted to a store for obsolete and waste materials.

2237. These obsolete and unserviceable items kept in these offices

do not only occupy office spaces, they could be auctioned to earn

revenue and the office space put to economic use.

2238. We reviewed the tenancy agreements between Ghana Post

and Fidelity Bank for the rental of an office space at Ghana Post

Office and noted that, rent payable per square metre at the Head

Office block earned an income of $14.00/square meter.

2239. There is a possible gain of at least $5,404.00 ($14/sqm *386)

per month and or $64,848.00 per year in revenue to the Company if

the place was renovated and rented out.

2240. We urged Management to take immediate steps to constitute

a board of survey to dispose of the obsolete materials and effectively

dispose the unwanted ones, renovate and put the office space to

economic use.

2241. Management responded that its Estate Department was

handling the materials kept in the open office and also said steps

were being taken to constitute a Board of Survey to to dispose of the

obsolete materials.



Purchase and Use of Software without Approval from the

Auditor-General -US$ 108,766.87

2242. Section 11(3) of the Audit Service Act, 2000 Act 584 states

“The public accounts of Ghana and of all persons and institutions





2243. Regulation 2 (b) of the Financial Administration Regulations,

2004 (L.I 1802) also requires the head of government departments

to ensure that the department’s accounting system has been

approved by the Controller and Accountant-General in consultation

with the Auditor-General;”

2244. Our review of records of Ghana Post disclosed that, for the

past 20 years the Company has been using an Accounting Software

called ‘SCALA” for its financial operations without any approval from

the Auditor-General or Controller and Accountant-General.

2245. We also noted that, in October 2017 the Company procured

and installed another Accounting Software called “SAGE” worth

US$108,766.87 without prior approval from the Auditor-General, in

contravention of the above law. We further noted that prescriptions

of the Public Procurement Law were not applied. Additionally, we

found that not all the modules on the software have been activated

and further noted that no budget was approved for the procurement

of the software.

2246. We blame the anomaly on Management’s inaction.

2247. Non-approval of accounting software and its continuous

usage by the Company may make it difficult to rely on the integrity

of the information generated. There is also the likelihood that the



software may not have adequate control measures to reduce the risk

of duplication, deletion, amendment, alteration and unauthorised

access.

2248. This also constitutes financial indiscipline as per Regulation

8 (1) of the FAR.

2249. We therefore recommended that, for the software to be

accepted for use, Management should regularise the anomaly with

the office of Auditor-General and the Public Procurement Authority

without further delay and also advised Management to ensure that

approval is obtained from the Auditor General for all future IT

sytems/software procurements.

2250. We advised Management to seek a retrospective approval from

the board to regularise the transactions and also encouraged

Management to ensure that the irregularity is never repeated.

2251. Management accepted the recommendation for compliance.

Non -Deduction of Withholding Tax - GH¢48,485.66 2252. Section 88(1) of the Internal Revenue Act, 2000 (Act 592) as

amended states “A withholding agent who fails to withhold tax in

accordance with this Subdivision is personally liable to pay to the

Commissioner the amount of tax which has not been withheld, but

the withholding agent is entitled to recover this amount from the

payee”.

2253. Our review of payment vouchers disclosed that Management

did not deduct the 3% & 7.5 % withholding tax respectively

amounting to GH¢48,485.66 from twenty-five (25) payments

totalling GH¢1,130,829.20 as shown in table 251.



Table 251: Failure to Withhold Tax DATE PV. NO BANK DETAILS OF

PAYMENTS AMOUNT GH¢

PAYEE

28/11/17 10 Fidelity Payment for a Consultancy Fee for IT Professional

3,500.00 262.50 Mohammed B Zaman

19/07/17 01/07/2017

NIB 30% part-payment of 35,000 pcs A5 size window envelopes quarto size for UEW

11,550.00 347.00

Grober Hand Grafix

10/02/2017 04/10/2017

NIB 50% part-payment of assorted Vertical Blinds

5,677.65 170.00 Sylvester Kings Décor Ent

15/11/2017 09/11/2017

NIB Payment for 10 pcs of HP Laptops supplied

24,862.18 745.87 Officepal Ltd

30/8/2017 8/80/17

Fidelity Payment for 40 pcs of Desktop Computers supplied

107,395.00 3,221.85 IPMC

14/12/2017 Fidelity Part-payment of Three (3) used Bens bus procured

180,000.00 5,400.00 Benows Ventures Ltd

10/02/2017 03/10/2017

NIB Payment for Curtains, lining, tape, track hooks and carpets

5,558.00 166.74

PHINA INTERIORS

31/05/17 02/02/1900

NIB Payment GH¢ equivalent USD 29,238.37 for One (1)

new Nissan Panel Van

130,110.76 3,903.32

JAPAN MOTORS

22/6/2017 9 NIB Payment GH¢ equivalent USD

29,238.37 for One (1) new Nissan Panel Van

130,110.76 3,903.32

JAPAN MOTORS

05/09/2017 31 NIB Payment for Ten (10) new RY 125-9 Motor Bikes with helmet

29,000.00 870.00 ROAYL MOTORS GH LTD

19/7/2017 15 NIB Payment for One (1) Executive Desk for CFO

3,507.38 105.22 EXPERT OFFICE FURNISH

19/7/2017 1 NIB 30% part-payment of 35,000 pcs A5 size window envelopes quarto size for UEW

11,550.00 346.50

GROBER HAND GRAFIX

18/9/2017 5 NIB 1st payment for 100,000 pcs of EMS plastic Envelopes supplied

38,638.30 1,159.15

MEDAZEE VENTURES

10/02/2017 3 NIB Payment for Curtains, lining, 5,558.00 166.74

PHINA INTERIORS



tape, track hooks

and carpets

10/02/2017 4 NIB 50% part-payment of assorted Vertical

Blinds

5,677.65 170.33 SYLVESTER KINGS

DÉCOR ENT.

22/11/17 23 NIB 2nd payment for 100,000 pcs of EMS

Plastic envelops supplied

38,638.30 1,159.15

MEDAZEE VENTURES

12/07/2017 5 NIB Payment for four (4)

Gree Lomo Air-condition supplied

17,716.00 531.48

EMENASTER

COMFORT SYSTEMS

12/07/2017 6 NIB Payment for Gree Lomo Air-condition supplied

18,334.00 550.02 EMENASTER COMFORT SYSTEMS

12/08/2017 8 NIB Payment for 20pcs of A3 FORM

3,400.00 102.00 DEBIS VENTURES

22/12/2017 13 NIB Payment for 35,000 pcs of EMS Plastic Envelopes

25,956.00 778.68 CONTROL COMPANY LTD

22/12/2017 17 NIB Payment for 5000

vehicle Log card supplied

4,120.00 123.60

OGASAKUM

PRINTING PRESS

21/6/17 64 UBA Payment of

allowances to Eight (8) officers during suppliers presentation at

Koforidua for NDPAS PROJECT

9,000.00 900.00

PHYLICIA

PARRY & CO

07/07/2017 3 UBA Payment of sitting

allowance for participants of 2017 performance contract negotiations

at State Eterprise Commission

4,350.00 435.00

L.A.ARMARF

IO

16/2/17 28 UBA Payment of 40%

contract sum for the evaluation of some selected office premises

14,330.00 1,071.75

BEN

DWIMOH & CO

17/11/17 22 NIB Payment for GH¢ equivalent of US$ 96,746.52 for

software acquisition

109,910.00 8,243.25

TRUST CONSULT LTD.

14/12/2017 10 NIB Payment for GH¢ equivalent of US$ 96,746.52 for

software acquisition

106,429.22 7,982.19

TRUST CONSULT

17/11/17 125/11 UBA cost of lacoste and printing on each

6,000.00 180.00 Aistik Touch Co.Ltd

11/08/2017 84/11 UBA refreshment for 450 11,250.00 337.50

Diplomat 2 Ventures



15/6/17 40/6 UBA Hiring of bus to

convey staff to Nandom for a funeral

4,700.00 352.50

OA Travel &

Tour

15/6/17 39/6 UBA cost of hearse to

convey corpse to Nandom 4,000.00 300.00

Accra

Ambulance & Motor Hearse Drivers Asso.

13/1/17 32/1 UBA Conversion of financial statement to IFRS

20,000.00 1,500.00 John Kay

17/3/17 58/3 UBA Conversion of financial statement to IFRS

30,000.00 2,250.00 John Kay

08/02/2017 2/8' UBA Conversion of financial statement to IFRS

10,000.00 750.00 John Kay

Total 1,130,829.20 48,485.66

2254. This infraction was due to non-compliance with tax laws,

thereby, denying the state the needed resources for its economic and

developmental activities.

2255. We recommended an urgent recovery of those taxes from the

suppliers and service providers and remit same to the Ghana

Revenue Authority and submit the receipt for our verification, failing

which the Managing Director and the Deputy Managing Director in

charge of Finance & Administration be asked to refund the amount

of GH¢48,485.66 for audit verification.


Un-Receipted Payments - GH¢2,956,621.63

2257. Regulation 39 (2c & d) of the Financial Administration

Regulations requires that ‘the head of the accounts section of a

department shall control the disbursement of funds and ensure that

transactions are properly authenticated to show that amount are

due and payable; and (d) any order for disbursement that does not

meet these requirements rejected.




2004 (L.I 1802) provides that official receipts should be obtained to

support all payments made.

2259. The above Regulations are intended as additional controls to

ensure that signatures of alleged payees are not forged to support

and acknowledge payments for fictitious transactions.

2260. We noted to the contrary that the Company made several

payments covering the sum of GH¢2,956,621.63 to vendors and

some staff of the company for varied activities as shown in table 252.

We however noted that the transactions were not properly

authenticated.



Table 252: Un-receipted Payments

DATE

PV. NO BANK DETAILS OF PAYMENTS

AMOUNT GH¢

PAYEE

01/11/2017 1 NIB Payment of (10) pcs of Barcode Labels & 5 pcs of Ribbons supplied

9,399.30

MANNA PLAZA

01/11/2017 2 NIB Payment for (11) Wireless scanner unit for selected offices

6,927.25

SHIELDSOFT CONSULT

01/11/2017 3 NIB Payment for 20 cartons ENOES 15W40 Engine oil & 416L ENOES 10W40

16,588.76

BASHE VENTURES

01/11/2017 4 NIB Payment for One (1) set of 5.0 HP Air-condition for the IFAD office at Mamprobi P/O

6,122.73

TRADE & SAVE LTD

05/09/2017 7 NIB Cost of 5000 pcs of GP (Form 10) supplied

21,984.00

Norbert Printing

05/09/2017 8 NIB Final payment of 2,000 pcs of EMS Form 8 printed and supplied

9,340.00

Norbert Printing

07/07/2017 17 UBA Payment of cleaning services at various offices in the

Western Reg

5,032.68

MESSRS AGOJAMAN & CO

19/07/17 01/07/2017 NIB 30% part-payment of 35,000 pcs A5 size window envelopes quarto size for UEW

11,550.00

Grober Hand Grafix

18/9/2017 14/09/2017 NIB Payment for 10,000 GP FORM 836 supplied

7,557.00

Frontline Commercials

19/7/2017 08/07/2017 NIB Payment for 1000 EMS PRIORITY Envelopes A4 KNUST

34,350.00

Norbert Printing




17,175.00

BOSOMPEM BUS VENTURES


18,320.00

BOSOMPEM BUS VENTURES

17/8/17 08/54/17 UBA Payment of 20 cartons of

ENEOS Super Diesel Oil supplied

9,354.89

Bashe Ventures

11/08/2017 03/11/2017 NIB Payment for the supply of 7 pieces of zebra paper rolls

8,750.00

Manna Plaza

15/11/2017 10/11/2017 NIB Payment of 1000 pcs GP Form 48 supplied

8,587.50

ST Michael Printing

10/02/2017 04/10/2017 NIB 50% part-payment of assorted Vertical Blinds

5,677.65

Sylvester Kings Décor Ent

11/08/2017 04/11/2017 NIB Payment for the supply of 8

pieces of thermal zebra ribbon

8,424.60

Manna Plaza

22/12/2017 14/12/2017 NIB Payment for 2pcs of laptop computers supplied

7,609.50

OFFICE PAL GHANA LTD

18/9/2017 19/09/2017 NIB Payment for 25,000 LS EMS PRIORITY ENVELOPES supplied

50,093.75

Norbert Printing

30/8/2017 8/80/17 Fidelity Payment for 40 pcs of Desktop Computers supplied

107,395.00

IPMC

19/7/2017 06/07/2017 NIB Payment for 30,000 A4 &

30000 Quarto size EMS Priority Envelopes supplied

60,112.50

Triple A


32,279.62

Expert Office Furnish


34,221.60


17/10/17 15/12/2017 NIB Payment for 20 pcs of swivel chairs and 3pcs 4 in 1 work station supplied

37,428.60




22/11/17 29/01/2017 NIB Payment for the supply of furniture and fittings

59,533.20


05/05/2017 05/05/2017 NIB Payment for assorted money order and remittance booklet supplied

135,110.00

Triple A

17/10/2017 13/10/2007 NIB Payment of 6 pcs of Conference Chairs

17,642.95


04/07/2017 04/04/2017 UBA Payment of final instalment of Contract sum in respect of valuation of selected office premises

19,745.00

BEN DWIMOH & CO

18/9/2017 9/43/17 NIB Payment for 50,000 pcs medium size EMS Plastic envelopes supplied

36,000.00

Control Company Ltd

18/9/2017 NIB 2nd payment for 100,000 pcs of EMS plastic Envelopes supplied

38,638.30

MEDAZEE VENTURES

22/12/17 25/12/2017 NIB Payment for 15000 prepaid A4 Envelopes supplied

17,175.00

BOSOMPEM BUS. VENTURES

10/02/2017 03/10/2017 NIB Payment for Curtains, lining,tape,track hooks and carpets

5,558.00

PHINA INTERIORS

07/04/2017 89 Fidelity Cost of Spare parts supplied for replacement for vehicle No

GR 503-P

7,422.44

PROFESSIONAL AUTO CENTRE

LTD

07/04/2017 90 Fidelity Cost of engine overhauling of official vehicle No GT-8144-09

9,514.39

PROFESSIONAL AUTO CENTRE

LTD

12/08/2017 21 UBA Cost of lifting of refuse office in GPO and ARN offices

4,730.00

ZOOMLION DESTIC SERV



13/12/17 33 UBA Payment of Court fee for the Lawyer acted on behalf of the plaintiffs

5,000.00

ELEANOR LARBIE

11/08/2017 44 UBA Payment for 40 asset track motor cycle for operational vehicles

9,600.00

MTN SCANCONM LTD

13/2/17 2 UBA Payment of property rate in

arrears from 2010 to 2014 in respect of Sunyani Post Office

12,000.00

SYI MUNICIPAL

ASSEMBLY

11/05/2017 37 UBA Payment of property rate and business operating permit fee for 2017 of Tamale Main Post Office

15,818.25

TAMALE METRO ASSEMBLY

11/08/2017 38 UBA Payment of property rate and business operating permit fee for 2017 of Navrongo Post Office

8,000.00

KASSENA NANKANA ASS.

11/08/2017 39 UBA Payment of property rate and

business operating permit and Property rate for 2016 in respect of the compan's landed properties in New Juaben Metro

15,574.00

NEW JUABEN

MUNICIPAL ASS

12/04/2017 1 UBA Payment of Rent Advance to

the landlord of Tema Community 11 Post Office

29,070.00

PRINCE ALLOTEY

TMC1

01/11/2017 3 UBA Payment for medical assistance to Rita Theodora Atamudzi

12,272.42

RITA THEODORA ATAMUDZI

04/07/2017 8 UBA Payment for medical assistance to an officer to undergo medical treatment

4,000.00

EMMANUEL GU



05/09/2017 32 UBA Payment of medical services to staff and their dependants in Oct,2016

2,894.23

PORT MEDICAL CENTRE

05/09/2017 34 UBA Payment for medical bill incurred by a staff

2,835.07

PORT MEDICAL CENTRE

05/09/2017 35 UBA Cost of optical services granted a staff

3,420.00

RICH EYE CARE CENTRE

05/09/2017 36 UBA Cost of optical services granted a staff

3,780.00

RICH EYE CARE CENTRE

08/11/2017 38 UBA Payment of medical expenditure incurred by a staff

2,271.97

PORT MEDICAL CENTRE

16/2/17 28 UBA Payment of 40% contract sum for the evaluation of some selected office premises

14,330.00

BEN DWIMOH & CO

04/07/2017 5 UBA Payment of 80% on account IRO 228,014 pcs of 2016 GES/CSSPS WAEC placement cards

112,056.00

WEST AFRICA EXAMS COUNCIL

20/7/17 80b UBA Funds to undertake the business of the WAEC Results Checker(Scratch cards)

70,000.00

ADB WEST AFRICA EXAM

08/04/2017 4 UBA Payment of comprehensive insurance policy cover

4,853.30

QUALITY INSURANCE

22/12/2017 26 NIB Payment of 6000 A4 and 6000 Quarto size EMS Priority Envelopes

12,022.50

NORBERT PRINTING

14/12/2017 35-37 Fidelity Cost of repairs on various official vehicles

9,745.59

ST ANDREWS AUTO

04/11/2017 11 UBA Purchase of 1,200 for 2017/2018 May Day

26,900.00

GEN. SECRETARY CWU OF TUC



celebration T- shirt for employees

31/05/17 56 Fidelity Payment for assorted items procured to renovate 2no. Offices for proposed customer service dept

5,053.00

HEAD/CHARLES ASIEDU

30/8/2017 85 Fidelity Imprest Warrant to procure

1000 pcs of twine for operational use

4,000.00

HEAD/MATERIALS

14/12/2017 10 Fidelity Cost of buying motorbikes parts for speedInk

5,708.95

JAPAN MOTORS

11/08/2017 84/11 Uba refreshment for 450 11,250.00

? And Co

11/07/2017 76/11 Uba Cost of lunch for participants at Ghana-Togo

800.00

Jonathan Ansah & Others

11/03/2017 35/11 Uba cost of servicing emergency SNC meeting

1,320.00

James Kwofie and Co

31/10/17 11/8 Uba sitting Allowance for panel fpoor ICU positions interview

435.00

Moses A.O Adebayo. & Co.

19/10/17 78/10 Uba payment for postal operation committee meeting

325.00

Martin Amedeku & Others

10/12/2017 32/10 Uba payment of lunch for 16 officers at a mgt meeting

430.00

unknown officers

22/9/17 26/10 Uba payment of lunch for steering committee team members for NDPAS

9,650.00

NDPas Steering Committee Members

21/8/17 2/9' Uba cost of service of meeting for nine committee members on e-commerce

2,550.00

Mrs l.Mensah-Kumah &Co

06/07/2017 4/6 Uba payment of refreshment for SNC meeting

1,440.00

James Kwofie and Co



29/11/17 131/11 Uba payment of t&T allowance for five students on attachment

500.00

Abigail Tackie &others

29/11/17 130/11 Uba payment of Allowance for 6 students national service personnel extension for Nov.,2017

3,594.00

GLORIA ADORFUL & CO.

05/11/2017 62 Uba REGISTRATION OF VAN

700.00

CHIEF

TRANSPORT MANAGER

16/2/17 3 Uba Payment ofwhat 3 words and police escort

4,000.00

MR ERIC YAO

08/04/2017 9 Uba Payment of expenses 2,130.00

PROTOCOL

11/03/2017 13 Uba Visa and insurance fee for Adu Boafo and Nii Armah

640.00

EKOW B. PAINTSIL

03/09/2017 1 Uba 1st tier social security contribution

222,031.85

SSNIT IST TIER JAN

05/11/2017 61 Uba funeral contribution 2,000.00

EMP

17/10/17 23 Uba Commission payment 300.00

CHRISTIANA ADJEI LARBI

13/01/17 33 Uba Payment of licence fee 20,000.00

POSTAL & COUIERIER

SERVS REGU

24/10/17 63 Uba Refreshment cost 1,458.00

HEAD GEN. ADMIN

24/10/17 64 Uba Funeral grant 3,000.00

EX PRIN SECURITY OFFICER

07/10/2017 28 Uba Cost to attend court 205.00

WINIFRED KOUKO & CO



17/7/17 62 Uba Court expenses to Takoradi 670.00

HELEN SAMLAFO

05/11/2017 62 Uba REGISTRATION OF VAN 700.00

CHIEF TRANSPORT MANAGER

16/2/17 3 Uba PROTOCOL 4,000.00

MR ERIC YAO

08/04/2017 9 Uba Payment of expenses 2,130.00

PROTOCOL

17/8/17 45 Uba Facilitation fee 93.34

METRO LABOUR OFFICE

29/9/17 49 Uba Workmen's compensation 11,385.38

GYILIGNUOL DINSAMBA

18/10/17 35 Uba 2% processing fee

246.56

CHIEF LABOUR

OFFICE

08/11/2017 40 Uba Payment of final instalment of repair work on letter boxes

5,882.08

JYC METAL WORK

08/11/2017 41 Uba Spraying /relettering of letter boxes-Accra Central

6,694.97

C.K METAL WORK

12/08/2017 27 Uba Spraying /relettering of letter boxes-Accra Central

6,694.97

C.K COMMUNICATION

14/8/17 43 Uba CONVEY IN PARCLE 8,703.76

O A Travels

14/8/17 44 Uba CONVEY IN PARCLE 12,668.89

O A Travels

05/09/2017 43 Uba Cost of ice chest and tea set 960.00

HEAD PUBLIC RELATION

12/07/2017 12 Uba COST OF MOBILE PHONE 700.00

ERIC AWUAH GM/F&A

11/08/2017 45 Uba INTERNET BUNDLE 1,500.00

DOUGLSAS D.SARPONG



06/07/2017 12 Uba TOP-UP ALLOWANCE-MARCH 3,630.50

TELECOM CHARGES

06/07/2017 13 Uba TOP-UP ALLOWANCE-APRIL 3,730.50

TELECOM CHARGES

19/6/17 52 Uba Post-paid MTN charges

4,332.02

SCANCOM PLC

(MTN GHANA

14/7/17 60 Uba PAYMENT FOR RESEARCH

FOR IT

400.00

LARISA MENSAH

KUMAH

18/10/17 36 Uba TOP UP CREDITS 300.00

LAMBERT LAMPTEY

09/06/2017 15 Uba TOP UP ALLOWANCE 1,869.00

TELECOM CHARGES

09/06/2017 16 Uba TOP UP ALLOWANCE-JUNE 17

1,869.00

TELECOM CHARGES

09/06/2017 20 Uba TOP UP ALLOWANCE-MAY 17 1,849.00

TELECOM CHARGES

12/07/2017 13 Uba TOP UP ALLOWANCE-AUG 17 1,906.00

EMMANUEL KOFI BAAH

12/07/2017 14 Uba TOP UP ALLOWANCE-SEP 17 2,149.00

POSTMASTER & CO

12/07/2017 15 Uba TOP UP ALLOWANCE-OCT 17 2,119.00

EMMANUEL KOFI BAAH

12/07/2017 16 Uba TOP UP ALLOWANCE-NOV 17

1,936.00

ABDUL-NASHIRU

BUKARI

23/01/17 39 Uba LOST ARTICLE 211.77

LETICIA SARPOMAA

11/03/2017 29 Uba PLUMBING MACHINE 1,800.00

FAIRWORK LIMITED

08/11/2017 30 Uba MARCH BILL 2,740.39

GHANA WATER CO

28/2/17 63 Uba WATER BILL-MAMPROBI 1,176.96

GHANA WATER CO. LTD



08/11/2017 29 Uba APRIL BILL 2,521.51

GHANA WATER CO

08/11/2017 31 Uba JANUARY BILL 1,988.90

GHANA WATER CO

31/01/17 44 Uba APRIL 2016 BILL

115,168.99

ELECTRICITY

COMPANY OF GH.

27/2/17 59 Uba 1ST INSTALLMENT PAYMENT

131,201.00

ELECTRICITY

COMPANY OF GH.

23/3/16 61 Uba PAYMENT OF 2ND INSTALLMENT

131,201.00

ELECTRICITY COMPANY OF GH.

05/11/2017 59 Uba 3RD INSTALLMENT PAYMENT 131,201.00


23/11/17 109 Fidelity COST BILL -KUMASI (2ND INSTALLMENT)

20,000.00


117/17 33 Fidelity GPO YARD & ACCRA NORTH BILL

105,699.19


29/9/17 50 Fidelity 5TH INSTALLMENT 131,201.00


12/08/2017 29 Fidelity BILL FOR JULY 2017-PARAKUO ESTATE

855.40


01/09/2017 5 Fidelity COST OF ADVERT 700.28 NEW TIMES CORPORATION

01/09/2017 6 Fidelity COST OF ADVERT 1,025.31 GRAPHIC

COMMUNICATION

01/11/2017 13 Fidelity PAYMENT OF WHT 763.05 GHANA REVENUE AUTHORITY

02/07/2017 7 Fidelity PURCHASE OF HAMPER 1,750.00 GM / FINANCE

02/10/2017 39 Fidelity REPAIR OF AIR CONDITION 3,356.20

ELECTROLAND

20/03/17 67 Fidelity AIR FARE TO TAMALE 780.00 CHARLES ASIEDU

24/03/17 74 Fidelity COST OF PAINTING 2,535.00 HEAD/ESTATES



27/03/17 80 Fidelity NATIONAL SERVICE ALLOWANCE-28 PERSONNEL

9,800.00

NATIONAL SERVICE ALLOWANCE

04/06/2017 17 Fidelity ADVERT 3,640.50 GRAPHIC COMM GROUP

04/06/2017 16 Fidelity ADVERT 2,298.01 GRAPHIC COMM GROUP

04/06/2017 18 Fidelity ADVERT 2,341.14 NEW TIMES CORPPORATION

04/06/2017 20 Fidelity ADVERT 1,335.83 BUSINESS & FIN TIMES

04/06/2017 30 Fidelity MARCH ALLOWANCES-NATIONAL SERVICE

350.00 STEPHEN K. AHANYEVI, MARCH 2017

10/02/2017 3 Fidelity RENOVATION OF BOARD ROOM

10,255.00 EMELIA ADU-ASARE

10/02/2017 11 Fidelity VAT, AND NHIL ON EMS-JANUARY 2017

83,227.71 GHANA REVENUE AUTHORITY

10/02/2017 12 Fidelity VAT, AND NHIL ON EMS-FEBRUARY 2017

88,348.09 GHANA REVENUE AUTHORITY

10/02/2017 13 Fidelity VAT, AND NHIL ON EMS-MAR 2017

82,690.89

GHANA REVENUE AUTHORITY

10/06/2017 14 Fidelity ELECTRICTY BILL FOR AUG

2017

20,000.00

ELECTRICITY

COMPANY OF GHANA

10/06/2017 19 Fidelity COURT FEE 1,340.00

COMFORT B. ARYEE

10/06/2017 20 Fidelity COST OF WORLD POST DAY 10,000.00

ESTHER SQUIRE

10/06/2017 40 Fidelity NATIONAL SERVICE ALLOWANCE

6,261.36

NATIONAL SERVICE SECRETARIAT



18/7/2017 111 Fidelity COST OF MID YEAR REVIEW 26,551.20

EASTERN PREMIER HOTEL LTD

26/7/2017 134 Fidelity COST OF ICE CHEST/TEA SET

1,720.00

SELINA AZU

27/7/2017 137A Fidelity FUNERAL DONATION 200.00

HEAD FINANCE

27/7/2017 138 Fidelity OVERNIGHT ALLOWANCE 180.00

PRINCE PEASAH

18/7/2017 98 Fidelity REPAIR OF OFFICIAL VEHICLES

3,514.67

YUNISEC MOTORS


3,867.39

NYAME NYE ADE MOTORS

18/7/2017 102 Fidelity REPAIR OF OFFICIAL

VEHICLES

3,732.70

GENESIS MOTORS


1,468.75

YUNISEC MOTORS


5,925.40

YUNISEC MOTORS

27/12/17 47 Fidelity COST OF REPAIRS OF OFFICIAL VEHICLES

5,778.54

GENESIS MOTORS


4,814.31

WISE TERQ ENG. LTD


1,380.00

PREDOM ENGINEERING WORK


700.00

L. WATERGATE ENT


440.00

NYAME NKYE ADE

13/9/2017 23B Fidelity COST OF POLYTHENE BAGS 1,620.00

HEAD MATERIALS



09/07/2017 7 Fidelity COURT FEES 2,000.00

STEPHEN K. KESSE

09/07/2017 8 Fidelity COST OF RUBBER STAMP 560.00

HEAD/ MATERIALS

09/11/2017 10 Fidelity AIR TICKET: ACCRA-KUMASI

2,370.00

JOSEPHINE

NKANSAH TEMANU

13/9/2017 26 Fidelity COST OF RAIN COAT 530.00

HEAD/ MATERIALS

09/12/2017 14 Fidelity HOUSING ALLOWANCE MD-AUG 17

5,285.88

JAMES Y. KWOFIE

13/9/2017 22 Fidelity COST OF HAND SET 505.00

PRINCE JOHN NABILA

18/9/2017 2 Fidelity 20% PMT FOR 80 UPS

4,480.00

TURKS SERVICE

LTD

13/9/2017 31 Fidelity TRAINING IN EMS DUTIES 1,460.00 GM/HR&A

13/9/2017 37 Fidelity DESKTOP LAND LINE PHONE 100.00 COMFORT INKUM & CO.

15/9/17 51 Fidelity INSTALLATION OF AIRCONDITION

2,743.00 ESTATE MANAGER

15/9/2017 103 Fidelity BILLS OF QUANTITY 3,000.00 OCLAP VENTURES

20/9/2017 111 Fidelity BUSINESS CARDS 1,400.00 EKOW PAINTSIL

20/9/2017 112 Fidelity REDECORATION OF TRANSPORT OFFICE

2,090.00

ESTATE MANAGER

20/9/2017 117 Fidelity VISA FEE 2,208.00 EKOW PAINTSIL

20/9/2017 118 Fidelity COST OF PHOTOSHOOT 600.00 EKOW PAINTSIL

16/11/17 83 Fidelity COMMUNICATION GUDGET 1,500.00 EKOW B. PAINTSIL

18/04/2017 81 Fidelity APRIL 21 DURBAR 9,420.00 HEAD/PUBLIC RELATIONS



19/04/2017 84 Fidelity 2ND & 3RD INSTALLMENT OF LICENCE FEE

50,000.00 POSTAL& COUERIER SERV REG COMM

24/8/2017 61 Fidelity COST OF CURTAINS 3,770.00 HEAD/MATERIALS

24/8/2017 67 Fidelity TRACKER ON 21 VEHICLE 1,250.00 HEAD/MATERIALS

28/8/2017 77 Fidelity SECURITY SERVICES 9,955.00 CORPORATE

INTELLIGENCE BUREAU

28/8/2017 78 Fidelity SECURITY SERVICES 9,955.00 CORPORATE INTELLIGENCE BUREAU

30/8/2017 81 Fidelity SECURITY SERVICES 5,996.00 ONASSIS SECURITY SERVICES

30/8/2017 82 Fidelity SECURITY SERVICES 4,675.00

ONASSIS SECURITY SERVICES

30/8/2017 83 Fidelity SECURITY SERVICES 4,675.00

ONASSIS SECURITY SERVICES

TOTAL 2,956,621.63



2261. Managerial override on the part of the Finance Manager in the

Company accounted for the anomalous situation.

2262. This situation undermines effective and efficient cash

management practices and could lead to payments to unidentified

persons, leading to legal tussles over payments or payments for

goods and services not delivered.

2263. We recommended that the Managing Director and the Head of

Finance should ensure that the said payments are appropriately

acknowledged with official receipts and/or signatures of the payees

to authenticate the payments, failing which they will be held liable

to refund the amount involved to the company and our office notified

accordingly.


Resignation without a Handing Over Notes

2265. Regulation 1 (3, 4 & 6) of the Financial Administration

Regulations, 2004 states “Where a public officer is proceeding on

transfer, leave or is for any other reason being relieved of the duties

under sub-regulation (1), the officer shall hand over the financial

and accounting records to the person taking over from the officer.

2266. The obligation of a public officer to keep proper records of

transactions and to produce the records for inspection under sub-

regulation (1) shall not be complete until that officer has properly

handed over the financial and accounting records kept by that officer

to the officer who takes over that duty under sub-regulation (3).

2267. An officer handing over financial and accounting duties to a

relieving officer shall prepare and sign a statement in triplicate

showing:



(a) details of all accounting records and documents kept;

(b) details of all keys, cash and bank balances, public stores and equipment on hand;

(c) details of all pending financial business, including

outstanding audit queries;

(d) details of financial and accounting duties assigned to subordinate staff;

(e) details in respect of particular classes of business as required by regulations or Departmental Accounting

Instructions.”

2268. We found that Mr Solomon Agyei who was the Deputy

Managing Director in charge of Finance, Administration and Human

Resource of Ghana Post resigned from the Company effective 19

August, 2017 serving three month’s notice. We also noted that there

was no proper handing over between Mr. Solomon Agyei and his

successor in the manner prescribed by the financial regulation cited

above.

2269. Notwithstanding the fact that Mr Agyei gave adequate notice

to resign, he was paid three month’s salary in lieu of the notice

period and asked to leave immediately on the instruction of the

acting Managing Director to which he obliged.

2270. We attributed this lapse to the Acting Managing Director’s

failure to allow due process to be followed in a manner prescribed by

law.

2271. Failure to properly hand over financial and administrative

records as well as other items could lead to loss of financial and

other essential information in his possession to the Company. It can

also make the officer taking over, ineffective in his new role.



2272. We urged management to follow due process in handling the

business of the organisation to forestall any loss to the Company.

We also recommended that any person leaving a position should be

made to properly hand over to the new person to forestall any loss

of information to the Company.


Creation of Unauthorised Deputy Managing Directors’ Position

2274. Section 10 (1) of Ghana Postal Corporation Act, 1995 (Act

505), states that there shall be appointed by the President in

accordance with the advice of the Board given in consultation with

the Public Services Commission Two Deputy Directors-General for

Ghana Post.

2275. Section 10 (2 to 5) also state the terms, conditions and duties

of the Deputy Directors-General.

2276. Contrary to the above we noted during our review of the

organisational chart of Ghana Post that Management in consultation

with the Minister of Communication had created a Chief Commercial

Officer Position which had been upgraded to a Deputy Managing

Director’s position by the Board via a Board Memo dated 25 July

2018 without recourse to the dictates of the Act.

2277. During our review and interaction with Management on the

issue, we were provided with the Postal and Courier Services

Regulatory Commission Act of 2003, Act 649 which repealed the

Ghana Postal Corporation’s Act, 1995 (Act 505). We however noted

that Act 649 does not say anything about Ghana Post Company’s

organogram.



2278. We attributed this anomaly to Management’s use of

discretionary power in the creation of the new position.

2279. The upgrade to the new position without recourse to the HR

Policy Manual of the Public Services Commission of Ghana as well

as other applicable laws, could lead to conflict of roles and financial

benefits that might put financial stress on the scarce resources of

the Company.

2280. We advised that the Board should suspend the creation of the

third Deputy Managing Director’s position to forestall any conflict of

roles.

2281. We also urged the Board and the Minister of Communication

to take up the issue of the repealed Act and clearly define the roles

of the Board, the Managing Director and the Sector Minister in the

form of a new Act.

2282. We additionally advised Management to in consultation with

the Sector Minister present a bill which will clearly define Ghana

Post and its authority and functions as a player in the industry to

parliament for necessary action.

2283. Management said it has noted the anomaly surrounding the

creation of the third Deputy Managing Director’s Position and will

endeavour to bring it to the attention of the board of Directors and

the Minister.

Payment of Judgement Debt - GH¢169,168.23 2284. Regulation 12 of the FAR, 2004 (L.I. 1802) states “A person







public financial business”.

2285. Section 96 (1a & c) of the Public Financial Management Act

2016 (Act 921) also states that a person, acting in an office or

employment connected with the procurement or control of

Government stores, or the collection, management or disbursement

of amounts in respect of a public fund or a public trust who:

(a) makes an unauthorised commitment resulting in a financial

obligation for the Government,

(b) is responsible for any improper payment of public funds or

payment of money that is not duly verified in line with existing

procedures, commits an offence and is liable on summary

conviction to a term of imprisonment of not less than six

months and not more than five years or to a fine of not less

than one hundred penalty units and not more than two

thousand, five hundred penalty units or to both”

2286. We established that on 30 March 2009, Management of

Ghana Post Company Limited entered into a contract with Messrs

Brick House (GH) Limited to renovate the Kaneshie Post Office at a

cost of GH¢125,022.15.

2287. We did not sight the following pre-qualification documents:

Tax clearance certificate

Business registration certificate

Ministry of Works and Housing Certificate of classification

Letters of Credit/ Bid Security/Performance Bond and

SSNIT Clearance

to justify the Company’s capacity to execute the contract.

2288. Messrs Brick House not having the financial capacity as

prescribed by the provisions of the Public Procurement Act of 2003

and the pre-qualification documents as stated above, went for a loan



of GH¢45,000.00 from the then Amalgamated Bank Ltd, now Bank

of Africa to finance the Project.

2289. Management of Ghana Post gave the bank an assurance of

payment in joint names of Messrs Brick House and Bank of Africa

when the job is done and certified.

2290. Ghana post was not able to pay Messrs Brick House the

certificate amount of GH¢95,883.63 for work done and therefore

could not pay the bank.

2291. Because of the assurance of payment given to the Bank, the

Bank filed a suit in court against Messrs Brick House and Ghana

Post to recover the loan amount with interest.

2292. Judgement was subsequently entered against Ghana Post

and the amount of GH¢45,000.00 with interest accrued over the

period to the sum of GH¢169,168.23.

2293. Ghana Post did not pay the said amount which led to a court

order to attach some assets of Ghana Post (vehicles) as a result of

which Ghana post eventually paid the sum together with the accrued

interest of GH¢169,168.23 to the Bank. The payment vouchers for

these two payments were however not authorised and approved by

any official of Ghana Post.

2294. An additional GH¢49,796.68 was claimed by Messrs Brick

House as the difference between the amount of GH¢140,886.13

charged by the Bank and the face value of the certificate

(GH¢91,089.45) raised by Messrs Brick House, as a result an

amount of GH¢46,000.00 was agreed and paid by Ghana Post.



2295. This led to the payment of a judgement debt of

GH¢169,168.23 to the bank. An additional amount of

GH¢46,000.00 was paid to Messrs Brick House summing up to

GH¢215,168.23. This amount could have been used for other

developmental projects that could benefit the Company.

2296. We recommended that the Board together with the Managing

Director, Nicholas N. Y. Dery be held liable for the loss and be made

to refund the amount of GH¢90,146.08 (the difference between the

contract sum and the total debt incurred) to the Company’s

accounts for our verification as per table 253

Table 253 Payment of judgement debt

ITEM AMOUNT (GH¢)

Agreed Contract Sum (a) 125,022.15

Vendor Loan Guaranteed By Ghana Post 45,000.00

Judgement Debt-(b) 169,168.23

Negotiated Amount From Messrs Brick HousePaid by Ghana Post-(c) 46,000.00

Total Amount Paid By Ghana Post-(a+b) 215,168.23

Amount to be refunded=Amount paid less Agreed contract Sum =(a+b-c) 90,146.08

Unearned Salaries - GH¢339,479.41

2297. Regulation 8 (1 a & b) of the Labour Regulations, 2007 (L.I

1833) provides that: (a) Where an employer interdicts an employee,

the employer shall:

i. pay not less than fifty per cent of the employee’s salary for

six months, during investigations, disciplinary or criminal

proceedings for an offence for which the employee has been

charged, and



ii. pay the employee the salaries withheld during the

interdiction if the employee is exonerated from the offence

for which the employee has been charged.

2298. Section 35 clause 8c of the Collective Agreement (C.A)

between Ghana Post Ltd and Communication Workers Union (CWU)

of the Trades Union Congress (Ghana) also stipulates that an officer

against whom an official allegation of a major offence has been made

subject to further investigations (by the Investigation Branch of the

Company or the Police) or where criminal proceedings are about to

be instituted against the employee, such an officer shall be made to

proceed on indefinite leave without pay and that officer shall NOT

remain on indefinite leave without pay or interdiction for more than

Six (6) months unless criminal prosecution has been instituted

against the officer.

2299. Contrary to the above provisions, our audit disclosed that, the

Company through its Acting Company’s Secretary wrote a letter

referenced BOD/GP/34/12 and dated 1st June, 2012 to two (2)

officers Messrs Nii Armah Aryeetey and Komla Onny to proceed on

indefinite leave without pay for an alleged misconduct regarding

their positions as members of the Board of Trustees representing

Management on the Provident Fund Management.

2300. The letter further asked the officers to report to the

Head/Investigation & Security Branch of the Company twice every

week until the case was disposed of.

2301. Surprisingly, Management did not expedite action on the

resolution of the issue within the time frame specified by the

Company’s Collective Bargaining Agreement, resulting in a court

action which was ultimately determined in favour of Ghana Post.



2302. The court ordered Ghana Post to put the Plaintiffs on 50% of

their salaries up to six months during which time investigation

would have been concluded and necessary disciplinary action taken.

2303. Management of Ghana Post defied the Court Order and

recalled the two officers to duty and paid them unearned salaries

including leave allowances amounting to GH¢339,479.41. The

detail of payment is shown in table 254.

Table: 254: Unearned Salaries

Mr. Komla Onny GH¢

Mr. Nii Armah Aryeetey

GH¢

Total

GH҃¢

Accrued Salary 117,085.95 119,597.34 236,683.29

Salary in lieu of leave

12,215.95 17,242.17 29,458.12

Accrued Allowances

36,669.00 36,669.00 73,338.00

Grand Total 165,970.90 173,508.51 339,479.41

2304. Negligence of duty on the part of the previous Management

and the Board to act promptly and decisively on issues of major

offences as contained in the Collective Bargain Agreement of Ghana

Post as well as failure by the current Management to comply with

the Court’s Order, led to this infraction.

2305. Due diligence, meticulous and timeous use of Alternative

Disputes Resolutions mechanisms would have prevented the

unnecessary Court Suits against the Company which resulted in the

payment of GH¢339,479.41 for no work done by these officers.

2306. We asked Management to explain with relevant supporting

documents in respect of actions taken prior to the Court Suit as well

as the implementation of the Court Order, failing which the

Managing Director, Deputy Managing Director in charge of Finance



and the Board Chairman of Ghana Post who sanctioned the

payments, be held liable to refund the amount of GH¢339,479.41.

Out of Court Settlement – GH¢150,000.00 2307. Regulation 12 of the FAR, 2004 (L.I. 1802) states “A person






2308. Section 96 (1a & c) of the Public Financial Management Act,

2016 (Act 921) states “A person acting in an office or employment

connected with the procurement or control of Government stores, or

the collection, management or disbursement of amounts in respect

of a public fund or a public trust who:

(a) makes an unauthorised commitment resulting in a financial

obligation for the Government, and

(b) is responsible for any improper payment of public funds or

payment of money that is not duly verified in line with existing

procedures, commits an offence and is liable on summary

conviction to a term of imprisonment of not less than six

months and not more than five years or to a fine of not less

than one hundred penalty units and not more than two

thousand, five hundred penalty units or to both.”

2309. Our review of Ghana Post Company’s records disclosed that

Management of the Company abrogated a contract with Achap

Company Limited for the construction of a Community Information

Centre (CIC) with Post Office facilities at Nyinahin in the Ashanti

Region, resulting in the payment of GH¢150,000.00 as Out of Court

Settlement for breach of contract.



2310. The Writ of Summons dated 21st April, 2015 with Suit No. BC

524/2015 which was made available to the Audit Team disclosed

that Management of Ghana Post on 3rd June, 2008, entered into a

contract with Achap Company Limited for the construction of a

Community Information Centre (CIC) with Post Office facilities at

Nyinahin in the Ashanti Region.

2311. The initial contract price of the project of GH¢46,939.39 was

readjusted after appraisal by the project consultant Messrs Arckito

Consult to GH¢216,000.00. This was further reviewed to

GH¢748,928.25 for which the parties consented to the terms and

conditions therein.

2312. Management did not provide the audit team with any

approved variation orders to justify the variations to the Project.

2313. Our review disclosed that the contractor moved to site and

almost completed the 1st Floor of the Project, until a letter dated 18th

October, 2010 issued by Management of Ghana Post directed the

contractor to suspend the project due to lack of funding.

2314. Management of Ghana Post for over 55 months after the said

letter did not recall the Contractor to site to continue with works

contrary to the terms and agreements of the contract.

2315. Several letters written by the Contractor and his lawyers to

Management of Ghana Post on the project were not attended to,

resulting in a legal action against the Company.

2316. Ghana Post paid GH¢150,000.00 as an out of court

settlement for the dispute.



2317. This was due to Management’s inability to budget for the

Project and therefore lacking the necessary financial resources to

execute the Project to its successful completion. The consultant also

did not do feasibility studies on the nature of the soil and the

topography of the land on which the Project was to be sited.

2318. This led to a financial loss to the Company and the eventual

abandonment of the Project.

2319. We urged Management not to enter into Projects which have

not been planned for and does not have the financial capacity to

undertake.

2320. We also recommended that those who took the decision to

abrogate the contract be made to refund the amount of

GH¢150,000.00 to the company for our verification.

Abandoned Project - GH¢210,300.00 2321. Section 52 (1) of the Public Financial Management Act, 2016

(Act 921) states “A Principal Spending Officer of a covered entity,




custody and management of the assets”.

2322. Regulation 12 of the FAR, 2004 (L.I. 1802) states “A person






2323. We noted that in 2008 Management of Ghana Post Company

Ltd entered into an agreement with Achap Company Limited for the

construction of a Community Information Centre (CIC) with Post



office facilities at Nyinahin, in the Ashanti Region but has since

abandoned the project after paying GH¢210.300.00 to the

Contractor as mobilisation fee and Out of Court Settlement for

breach of contract. This contravenes the provisions of the above

laws.

2324. Our visit to the project site at Nyinahin in the Ashanti Region

disclosed that the project has been left unattended to despite huge

sums of monies invested in it.

2325. Negligence of duty and lack of due diligence on the part of

present and past Management resulted in this infraction.

2326. The locked-up resources, in our view could have been avoided

if the procurement procedures were followed. The inability of having

these projects completed on schedule:

(i) denied the Company the use of these facilities,

(ii) resulted in locking up funds in a project that is not producing

any benefit at this present time.

2327. We urged Management not to undertake projects that have

not been budgeted for. We further urged Management to liaise with

the Sector Ministry to release funds to complete the abandoned

Project.



MINISTRY OF TOURISM & CREATIVE ARTS

KWAME NKRUMAH MEMORIAL PARK

Introduction 2328. This report relates to the audited accounts of the Kwame

Nkrumah Memorial Park for the year ended 31 December 2014.

Operational results

2329. The Park’s 2014 financial year ended with a deficit of

GH¢1,384.76 which was a reduction in the deficit of GH¢6,387.98

in 2013. Table 255 shows a summary of the Park’s performance

indicators for the year ending 31 December 2014.

Table 255: Income and Expenditure - 2014

Income 2014

GH¢

2013

GH¢

Difference

GH¢

%

Change

Subvention 141,720.70 94,407.44 47,313.26 50.1

Internally Generated

Fund 323,000.30 258,967.40 64,032.90 24.7

Total Income 464,721.00 353,374.84 111,346.16 31.5

Expenditure

Compensation for

Employees 173,496.89 150,072.55 23,424.34 15.6

Goods and Services

(IGF) 292,608.87 209,690.27 82,918.60 39.5

Total Expenditure 466,105.76 359,762.82 106,342.94 29.6

Surplus/Deficit (1,384.76) (6,387.987) 5,003.22 (78.32)

2330. Total Income for the Park increased by GH¢111,346.16

representing 31.5% from GH¢353,374.84 in 2013 to

GH¢464,721.00 in 2014.



2331. The increase in total income was due to increase in internally

generated fund by GH¢64,032.90, representing 24.7% from

GH¢258,967.40 in 2013 to GH¢323,000.30 in 2014.

2332. Total expenditure increased by GH¢106,342.94 representing

29.6% from GH¢359,762.82 in 2013 to GH¢466,105.76 in 2014. The

increase in expenditure is attributed to increase in expenditure for

goods and services from GH¢209,690.27 in 2013 to GH¢292,608.87

in 2014.

Financial position

2333. Table 256 shows the financial position of the Park as at

31 December 2014.

Table 256: Statement of Financial Position

Current Assets 2014 GH¢

2013 GH¢

Change GH¢

% Change

Staff Debtors 50.00 390.00 (340.00) (87.2)

Cash and Bank 709.94 1,754.7 (1,044.76) (59.5)

Net Current Assets 759.94 2,144.70 (1,384.76) (64.6)

2334. The Park had no Non-Current Assets during the period under

review. Total Current Assets reduced by GH¢1,384.76 representing

64.6% from GH¢2, 144.70 in 2013 to GH¢759.94 in 2014. This is

attributable to decrease in cash and bank balances of GH¢1,044.76

in 2014.

MANAGEMENT ISSUES

Operating without enabling act 2335. Section 5 (2) of the Financial Administration Act (FAA), 2003

states “Except as otherwise provided in this Act, any fund other than

the Consolidated Fund shall be governed by the enactment

establishing the fund’.



2336. We noted that the Park has been operating without an Act

since its inception.

2337. Though Management of the Park collects revenue and

receives other funds, there was no Act to govern its operations. Also,

Management of the Park received a number of proposals from private

organisations for partnership with the Park to generate revenue but

owing to interferences from other interested parties, the

partnership could not work.

2338. The indifferent attitude of past and present Management of

the Park to consult the appropriate authority to commence the

process and eventually get the Park regulated, has accounted for

this anomaly.

2339. In effect Management of the Park has no mandate to pursue

other income generating activities which could boost its Internally

Generated Funds.

2340. We advised, and Management accepted to consult its sector

Minister and the Attorney–General and Minister for Justice for the

commencement of the processes and eventually obtain a Legislative

Instrument (L.I) for the Park.

Leaking Administration block

2341. It is a generally acceptable practice to regularly maintain fixed

assets to ensure that their values are preserved for the organisation

to derive maximum benefit from its usage for the achievement of its

objectives.

2342. Our physical inspection of the Administration Block of the

Park disclosed leakages in the roof of the Administration block

resulting in flooding of the offices whenever it rains.



2343. Management explained that it had obtained estimates from

the AESL for the maintenance of the roof, but were unable to award

the contract due to lack of funds.

2344. The increasing reduction in the release of subvention for

Goods and Service and non- release of funds for Capital expenditure

also accounted for this situation.

2345. The Administration block risks collapsing if immediate action

is not taken to prevent further deterioration.

2346. Management should take all steps to obtain funds to

undertake this maintenance as soon as possible to prevent the

edifice from collapsing.

NATIONAL THEATRE OF GHANA

Introduction 2347. This report covers the audited accounts of the National Theatre of

Ghana for the period 1January 2015 to 31 December 2017.

Operational Results 2348. The year 2017 ended with a total surplus of GH¢490,621.85

representing 209.6% increase over the previous year’s total surplus

of GH¢158,320.86. The comparative performance indicators for the

two years are shown in Table 257.




Items 2017 GH¢

2016 GH¢

Change GH¢

% Change

GoG Subvention 1,310,727.73 1,265,653.33 45,074.40 3.6

I G F 2,423,688.66 1,996,377.60 427,311.06 21.4

Other Income 118,203.75 71,579.03 46,624.72 65.1

Total Income 3,852,620.14 3,333,609.96 519,010.18 15.6

Expenditure

Compensation 1,265,386.72 1,251,537.00 13,849.72 1.1

Uses of Goods and Services

2,097,124.57 1,923,752.10 173,372.47 9.0

Total Expenditure

3,362,511.29 3,175,289.10 187,222.19 5.9

Surplus/(Deficit) 490,108.85 158,320.86 331,787.99 209.6

2349. Total income moved from GH¢3,333,609.96 in 2016 to

GH¢3,852,620.14 in 2017 representing an increase of 15.6 % over

the period. The upward movement was largely due to the increase in

other income which went up by 65.1%.


GH¢3,175,289.10 in 2016 to GH¢3,362,511.29 in 2017. This could

be attributed to an increase of 9.0% in use of Goods and Services

which encompasses Program Development and other Administrative

Cost, moving from GH¢1,923,752.10 in 2016 to GH¢2,097,124.57

in 2017.

Financial Position 2351. The Company’s financial position as at 31 December 2017 is

shown in Table 258.




Items 2017

(GH¢)

2016

(GH¢)

Change

GH¢

%

Change

Non-Current Assets 1,567,786.59 1,524,293.33 43,493.26 2.9

Current Assets 681,302.55 461,802.36 219,500.19 47.5

Current Liabilities 911,837.34 1,138,952.75 (227,115.41) (19.9)

Net Asset 1,337,251.80 847,142.94 490,108.86 57.9


2352. Non-Current Assets increased by GH¢43,493.26 or 2.9%

from GH¢1,524,293.33 in 2016 to GH¢1,567,786.59 in 2017. This

was due to additions in Office Equipment and other fixed assets


2353. Current Assets went up by 47.5%, from GH¢461,802.36 in

2016 to GH¢681,302.55 in 2017. The rise was due to increase in the

Company’s Staff Debtors by 119.3%.

2354. Current Liabilities recorded a decrease of GH¢227,115.41,


GH¢911,837.34 in 2017. This was mainly due to payment of

Electricity and Water Bills.

2355. The liquidity position as measured by a current ratio of 0.75:1

in 2017 as compared with 0.41:1 in 2016 financial years even

though showed an increase, but still indicating the inability to meet

her short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Failure to Prepare and Submit Procurement Report GH¢138,294.92

2356. Paragraph 1.4.5 of the Public Procurement Authority Manual

mandates that there shall be a monthly report that shall be



submitted to the Public Procurement Authority by each Tender

Committee.

2357. We noted that Management of the Theatre spent an amount

of GH¢138,294.92 on procurement of goods and services but did not

prepare and submit monthly reports on these procurements to the

Public Procurement Authority during the period of audit.

2358. The Tender Committee’s disregard for the tenets of the

Manual caused the anomaly.

2359. Failure to prepare and submit the monthly reports on

procurement to the Public Procurement Authority could affect

decision making.

2360. We recommended that the management prepares and submit

the monthly report as mandated by the Manual to avoid sanctions.


Non-Certification of Works - GH¢9,224.13 2362. Regulation 1522, of Store Regulations of 1984 requires that

before any repair work is carried out, works orders should be issued

to the service providers, to ensure satisfactory work performance

with a view to promoting value for money.

2363. Our audit disclosed that four (4) payments were made for

repairs and maintenance of two official vehicles, an office generator

and fumigation of the theatre costing GH¢9,224.13 without the

certification or job order by the estate Officer before payments were

made. Details are shown in the table 259.



Table 259: Non-Certification of Works

Date PN No. Details Amount

GH¢

Payee Remarks

3/15/15 OPS/55/15 Repairs and

maintenance of

office generator

2,656.13 Marathon

Electrical

Eng. Works

No

Certificate

Issues

2/26/15 OPS/50/15 Payment for fumigation of

the theatre

3,855.00 Trusol GOC Co.

Ltd.

No Certificate

Issues

11/19/15 OPS/310 Payment of

power and

fanbelt for

Honda Saoon car number

GV32-14

1,350.00 Mohammed

Motors

No

Certificate

Issues

2/9/17 OPS/42/17 Repairs for

Honda GV31-

14

1,363.00 Dominion

ET Motors

No

Certificate

Issues

Total 9,224.13

2364. The lapse could be attributed to the Estate Officer’s disregard

for the regulation.

2365. The absence of the internal control measure could result in

the organisation paying for unsatisfactory works executed.

2366. We advised the Schedule officer to adhere to the internal

control systems of the Theatre.

Non-Insurance Policy f or National Theatre

2367. Section 184 of Insurance Act, 2006, (Act 724) states “Every

building engaged in commercial activity shall be insured with an

insurer against the hazards of collapse, fire, earthquake, storm and

flood, and an insurance policy issued for it.” And “The insurance

policy shall cover the legal liabilities of an owner or occupier of

premises in respect of loss of or damage to property, bodily injury or

death suffered by any user of the premises and third parties”.



2368. We noted that management of National Theatre have not

insured the edifice where major events are organised against

disasters as at the time of audit in 2019.

2369. Management’s disregard for the Act above resulted in this

anomaly.

2370. In the event of any uncertainty as stated in the Act, there

would be no compensation.

2371. We recommended to Management to insure the property as

required by the Act without further delay and this office informed.

2372. Management in their response stated that, they were making

strenuous effort to appeal to Government to get the building re-

insured.

Irregular Appointment 2373. Article 195(1) of the Forth Republican Constitution of Ghana

stipulates that subject to the provisions of this Constitution, the

power to appoint persons to hold or to act in an office in the public

services shall vest in the President, acting in accordance with the

advice of the governing council of the service concerned given in

consultation with the Public Services Commission.

2374. Section 11(3) of Ghana National Theatre Act, 1991 (P.N.D.C

L.259) also states that the employees of the National Theatre shall

be appointed under such terms and conditions as the Board may on

the recommendations of the Executive Director determine in

consultation with the Public Service Commission.

2375. We noted that Mr. Tewfik Prah Meekail was appointed by the

Hon Minister for Tourism and Creative Art on 5th June, 2017 as the

Deputy Executive Director of National Theatre. The appointing



Authority did not seek advice from the Governing Board as well as

the Public Services Commission to determine his conditions.

2376. The irregularity could be attributed to failure of the Chief

Director of the Ministry to advice the Minister to follow due process

of appointment into the office.

2377. This anomaly could lead to abuse of the due process of

appointments into the public service if this deviation is not

addressed.

2378. We recommended to Management as matter of urgency to

liaise with the appointing authority to follow due process to

regularise his appointment.

2379. Management said they have forwarded the issue to the Chief

Director, Ministry of Tourism Arts and Culture for advice. “They will

revert to the Service immediately they received response from the

Sector Ministry”.



MINISTRY OF INTERIOR

NATIONAL DISASTER MANAGEMENT ORGANISATION (NADMO)

Introduction 2380. This report covers the audited accounts of the National

Disaster Management Organisation for the year ended 31 December

2015.

Operational results

2381. The Organisation ended the 2015 financial year with a deficit

of GH¢3,336,528.04, representing 54.5% lower than the prior year

deficit of GH¢7,327,352.61. The tables 268 and 260 shows the

financial performance and position of the Organisation for the period

reviewed.

Table 260: Financial performance as at 31 December 2015

Income

2015

GH¢

2014

GH¢

%

Change

GoG Subventions 99,243,450.58 82,977,655.37 19.60

Other Income 1,398,754.86 394,946.03 254.16

Total Income 00,642,205.44 83,372,601.40 20.7

Expenditures

Compensation for

Employees 62,528,652.68 52,297,655.37 19.56

Goods & Services 40,571,406.44 37,513,107.44 8.2

Other expenditure 878,694.37 889,191.50 (1.18)

Total Expenditures 103,978,733.49 90,699,954.01 14.6

Deficit/Surplus (3,336,528.05) (7,327,352.61) (54.5)

2382. Total income increased by GH¢17,269,604.04 representing

20.7% from GH¢83,372,601.40 in 2014 to GH¢100,642,205.44 in

2015. The increase was due to an increase in GOG subvention of

(GH¢16,265,795.21) representing 19.6% from GH¢82,977,655.37 in

2014 to GH¢99,243,450.58 in 2015.



2383. Total Expenditure also increased by GH¢13,278,779.48


GH¢103,978,733.49 in 2015. This was largely due to an 83.6%

increase in expenditure for relief items from GH¢15,333,606.74 in

2014 to GH¢28,146,245.61 in 2015.


2015 GH¢

2014 GH¢

Change GH¢

% Change

Non-Current Assets 3,830,035.43 7,602,781.35 (3,772,745.92) (49.6)

Current Assets 831,981.90 395,764.03 436,217.87 110.2

Total Assets 4,662,017.33 7,998,545.38 (3,336,528.05) (41.7)

2384. Non-Current Assets decreased by GH¢3,772,745.92,


GH¢3,830,035.43 in 2015. This was due to depreciation of the

Assets. Current Assets increased by GH¢436,217.87 representing

110.2% from GH¢395,764.03 in 2014 to GH¢831,981.90 in 2015.

This could also be attributed to increase in cash and bank balances


MANAGEMENT ISSUES

Unearned Salary- GH¢113,773.31

2385. Regulation 298(1) (a-f) of Financial Administration

Regulations, L.I.1802 enjoins a head of department to immediately

stop the payment of salary to a public servant, who either resigned

or retired, dies or absents him or herself from duty without leave or

reasonable cause for a period as stipulated in the administration

regulations of the establishment. Regulation 298 of the FAR 2004

again requires among others that a head of department shall notify

the bank for repayment into the Consolidated Fund of salary or other

payments credited to the public servant’s bank account.



2386. We noted that, forty-three (43) members of staff who

separated from the organisation by way of death, retirement,

resignation and vacation of post were paid unearned salary of

GH¢113,773.31 after their separation. Although Management

informed the Controller and Accountant-General’s Department

(C&A-G Dept.) for the deletion of their names, their bankers were not

informed to return their salaries to government chest. Details are

shown in table 262.

Table 262: Unearned Salary

No. Name Cessation

Form Rank

Effective

Date

Deletion

Date

Months

Delayed Salary

UNEARN

SALARY

1 Jacob Eshun

Deceased ADCO III 15-Jan-15 5-Aug-15 6 397.13

2,382.78

2 Eric Yirenkyi Mensah

Deceased DCO 2-Feb-15 5-Aug-15 6 728.60

4,371.60

3 Kwadwo Danso

Deceased DCDCO 8-May-15 5-Aug-15 2 1,780.33 3,560.66

4 Arhin Kofi

Thompson Deceased DCO 8-May-15 5-Aug-15

2 728.60 1,457.20

5 Seth Amedeka

Deceased DCO 8-May-15 5-Aug-15 2 728.60 1,457.20

6 George Teye Deceased ADCO I 8-May-15 5-Aug-15 2 454.47 908.94

7 Vivian Ampofo

Deceased ADCO II 30-May-15 20-Aug-15 2 446.87 893.74

8 Matilda Balbuyie

Deceased ADCO II 29-Jul-15 1-Sep-15 1 446.87 446.87

9 William Hammond

Deceased ADCO III 25-Sep-15 16-Nov-15 1 397.13

397.13

10 Ibrahim

Zebrila Resignation ASDCO 3-Jan-15 5-Aug-15

8 907.11 7,256.88

11 Godwin Selorm Kornyoh

Resignation SPDCO 20-Jan-15 15-Sep-15 7 1,406.07 9,842.49

12 Francis Arhin-Koomson

Resignation DCDCO 28-Jan-15 5-Aug-15 7 1,780.33

12,462.31

13 Samuel Fianko Agyemfra

Resignation SDCO 3-Feb-15 5-Aug-15 6 1,148.56

6,891.36

14 Amos Darko

Resignation ADCO II 16-Feb-15 5-Aug-15 7 446.87 3,128.09

15

Eunice

Offei Ameyaw

Resignation SDCO 26-Mar-15 5-Aug-15 4 1,148.56

4,594.24

16 Ameyaw

Offei Resignation SDCO 31-Mar-15 19-Aug-15

4 1,148.56 4,594.24



17 Brenda

Osei-Sarfo Resignation SDCO 1-Apr-15 19-Aug-15

4 1,148.56

4,594.24

18 Rebecca Afrifa

Resignation ADCO I 8-May-15 5-Aug-15 3 502.84 1,508.52

19 Ethel Boadi Asomaniwaa

Resignation ADCO II 19-Jun-15 11-Apr-16 11 446.87 4,915.57

20 Love Asare Bediako

Resignation SDCO 22-Jun-15 5-Aug-15 1 1,148.56

1,148.56

21 Nene Korley

Zanyoh Resignation ADCO II 30-Jun-15 1-Sep-15

2 446.87

893.74

22 Issahaku Issah

Resignation DCDCO 1-Jul-15 16-Nov-15 3 1,810.59

5,431.77

23 Henry Davidson Fefeh

Resignation ADCO II 1-Sep-15 26-Apr-16 8 446.87

3,574.96

24 Andani Iddrisu

Resignation ASDCO 31-Apr-15 5-Aug-15 3 907.11

2,721.33

25 Joyce A.

Opoku

Vacation of

post ADCO II 16-Feb-15 5-Aug-15

6 446.87

2,681.22

26 Charlotte Arthur

Vacation of post

SDCO 18-Feb-15 5-Aug-15 6 1,148.56

6,891.36

27 Benjamin Opoku-Antwi

Vacation of post

ADCO II 4-Mar-15 19-Aug-15 5 446.87

2,234.35

28 Emmanuel K. Odamtten

Vacation of post

DCO 20-Mar-15 5-Aug-15 4 728.60

2,914.40

29

Dorcas

Zepora Moses

Vacation of post

ADCO I 13-Apr-15 5-Aug-15 4 502.84

2,011.36

30 Nana Yaw

Adjei

Vacation of

post ACDCO 8-May-15 5-Aug-15

3 1,529.72

4,589.16

31 Umar Issahaku

Vacation of post

ADCO I 19-Jul-15 1-Dec-15 6 502.84

3,017.04

Total

113,773.31

2387. Management’s inaction to send prompt notice to the Banks

resulted in the payment of the above unearned salary.

2388. The above irregularity led to loss of funds amounting to

GH¢113,773.31 to the state.

2389. We recommended that efforts be made by Management to

recover the total amount of GH¢113,773.3 from the ex-officers, pay

same to Government chest, obtain Treasury Receipt to support the

payment and notify us for verification.



2390. In response, Management explained that letters have been

sent to their respective Banks to have the monies returned to chest.

Absence of Scheme of Service and Collective Bargaining Agreement (CBA) 2391. The purpose of Scheme of Service and CBA is to set forth the

issues relating to;

Equal Employment Opportunity policies

Employee classifications

Workdays, paydays, and pay advances

Overtime compensation

Study leave with pay and without pay

Payroll deductions

Promotions

Vacation policies

Holidays

Sick days and personal leave (for bereavement, jury duty,

voting, etc.)

Performance evaluations and salary increases

Performance improvement

Termination policies and

other terms and rules of employment

2392. Our review of the Human resource department indicates that,

the Institution did not have a standard scheme of service nor



collective bargaining agreement which spells out how the above

stated terms and conditions can be managed in the Organisation.

2393. This is a result of non-adherence to Human resource

management policies by management.

2394. The situation could result in job dissatisfaction as evidenced

in the high rate of labour turn over which will not enable the

Organisation to achieve its objectives.

2395. We recommended that Management in consultation with its

stake holders should draft a scheme and collective bargaining

agreement as a matter of urgency to ensure smooth running of the

Organisation.

2396. Management provided the team with draft Condition of

Service which is yet to be finalized.

Koforidua

Unearned salaries-GH¢3,880.92

2397. Regulation 92 (1) of the Public Financial Management

Regulations, 2019 (L.I. 2378) states “A Principal Spending Officer of

a covered entity shall ensure the immediate stoppage of salaries to

a public servant that was absent from duty without leave or

reasonable cause.”

2398. We noted that in May and June 2019, two (2) separated staff

in the regional NADMO office were paid salaries totalling

GH¢3,880.92 for no work done. Details are provided in table 263.



Table 263: Unearned salaries

Staff

ID Name Period Rank

Salary

GH¢

Deduction

GH¢ Net GH¢

994260 Crankson

Samuel

May & June,

19

SDCO 4,053.72 2,113.26 1,940.46

915401

Debrah Enoch

Frempong

May & June,

19 SDCO 4,053.72 2,113.26

1,940.46

Total 8,107.44 4,226.52 3,880.92

2399. Management’s failure to stop the salaries of the separated

staff during the monthly validation of salaries, accounted for the

irregularity. The situation has deprived the State of GH¢3,880.92.

2400. We recommended that the unearned salaries of GH¢3,880.92

should be recovered from the separated staff and paid to government

chest.

2401. The Acting Regional Director stated “The spending officers

involved have been contacted to submit requisite attachment

(receipts) to respective PVs. Efforts are being made to retrieve

receipts from the individuals concern’’.

Overpayment of Allowances - GH¢7,800.00


921) stipulates that a principal Spending Officer of a covered entity


that covered entity.

2403. Per the category 2&3 allowances jointly approved by

Government and the Public Service Joint Standing Negotiation

Committee (PSJSNC), a Director of NADMO is entitled to a maximum

night/out of station allowance of GH¢250.00 per night for Local

Trips and where accommodation or meals are provided, the rate

should be abated by one-third (1/3). However, Management paid a

total night/out of station allowance of GH¢46,800.00 to seventy-

eight (78) District/Municipal Directors without abating the rate by



the 1/3 even though meals were provided to the Directors resulting

in an overpayment of GH¢7,800.00. The details are attached and


Table 264: Overpayment of Allowances

PV No PV Date

Total

Allowance

(250*78*3days)

Allowance

Due

(2/3*58,500)

Amount

Paid GH¢

Over

Payment

GH¢

*0002323 07/26/2018 58,500.00 39,000.00 46,800.00 7,800.00

2404. The Municipal Director and the Accountant indicated

that, even though the total amount was lodged into their

account for the workshop and disbursement done at their

region, the allocation of the fund was done in their

headquarters in Accra; hence their outfit did not have control

over the allocation.

2405. This led to an overpayment of GH¢7,800.00 to the

department which could have been used to undertake other

beneficial activities.

2406. We urged the Director and Accountant of the Organisation to

retrieve the amount of GH¢7,800.00 from the beneficiaries.

2407. According to the Acting Regional Director “The spending

officers involved have been contacted to submit requisite

attachment (receipts) to respective PVs. Efforts are being made

to retrieve receipts from the individuals concern’’.



Biakoye District

Relief items not accounted for 2408. Regulation 39 (2c) of the Financial Administration

Regulations (FAR 2004) (L.I.1802) requires that, the head of

Accounts Section of a department shall control the disbursement of

funds to ensure that transactions are properly authenticated to


2409. We noted that Mr. Wovenu Gidisu the officer in-charge of

stores failed to account for the use of relief items received from the

headquarters meant for distribution to flood victims in the District.

Also, we noted that Mr. Gidisu issued out to staff, sixteen (16) pairs

of wellington boots meant for distribution to flood victims in the

district without approval.

2410. The lapse occurred as a result of poor supervision on the part

of the District NADMO Coordinator and also failing to ensure that

relief items received were appropriately distributed to the right

beneficiaries and proper documentation kept to authenticate issues.

2411. The distribution of relief items without the necessary

documentations constituted a control weakness in the distribution

process and could result in the diversion of relief items.

2412. In order to ensure accountability and effective control over the

distribution of relief supplies, we recommended that the total items

involved should be accounted for by Mr. Wovenu Gidisu without

delay.



Techiman

Unearned salary-GH¢12,899.01

2413. Regulation 92 of the Public Financial Management

Regulations 2019 (L.I. 2378) requires among others that, the

Principal Spending Officer of a covered entity shall ensure the

immediate stoppage of payment of salary to public servants and

notify the Controller and Accountant-General on the vacation of post

by an employee and the head of a covered entity shall take the

necessary action to retrieve any unearned compensation occasioned

by that.

2414. We noted that, Mr. Obeng Edward with staff ID 678721 of the

Techiman NADMO, vacated post for the period February to October

2019 but was paid a total unearned salary of GH¢12,899.01.

2415. Management’s failure to ensure the immediate stoppage of

the salary and also write to the bank to pay all salaries into the

Controller’s Salary Suspense Account resulted in the payment of the

unearned salary.

2416. We recommended to Management to recover the amount from

the officer failing which the officers who validated the officer should

refund the amount.



MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS AUTHORITY

Introduction

2417. This report covers the audited accounts of the National Sports

Authority for the year ended 31 December 2015.

MANAGEMENT ISSUES

Missing Cash Balance - GH¢31,058.45

2418. During our review of the bank reconciliation statements

prepared by the Account Unit, we noted that cash balances

amounting to GH¢31,058.45 for Accounts ‘2’ and ‘5’ were neither

paid to bank nor carried forward to the next month as opening

balances. Details are shown in table 265.

Table 265: Missing Cash Balance

Account Name Details Amount

GH¢

A/C 5 Gate Proceeds Cash Balance for Sept 2017 28,000.75

A/C 2 GOG Cash Bal for June 2017 967.70

A/C 2 GOG

Refunds from Staff

Receipt Nos

0735871-0735875

2,090.00

Total 31,058.45

2419. The above situation resulted from lack of supervision on the

operations of the accounts officers resulting in loss of funds to the

Authority.

2420. We recommended to Management to ensure that the amount

stated above is retrieved from the officers involved, paid to bank for

verification.



2421. Management responded that the Authority has given the

Officers up to the end of the month of February, 2019 to pay the

money to bank and bring the pay-in-slips for verification.

2422. “Management has also put measures in place to avoid the

occurrence of such situation by intensifying its monitoring systems

and ensuring that the Internal Audit Unit audits the cashiers

weekly”.

Excessive Cash Payments 2423. Regulation 48(1) of the Financial Administration Regulations,

2004, L I 1802 states that a head of department shall ensure that

cash holdings are kept to the absolute minimum, consistent with the

efficient discharge of public financial business by;

(a) Promptly lodging collections into bank accounts established

for the purposes of receiving monies into the consolidated

fund or other public funds; and

(b) Using bank accounts for holding cash balances; and

(c) Making payments by cheques wherever possible

2424. Sub Regulation (2) also states that the head of department

shall ensure, as far as it is consistent with the convenience of the

public and the control of transactions, that collections or payments

are made by cheque, bank transfer or direct payment to bank

accounts.

2425. We noted during our review that gate proceeds collected for

matches played, were not lodged into bank account (Account No.5)

which was opened by the Authority specifically for that purpose.

2426. The anomaly above resulted in the disbursement of huge

sums of money to the football clubs and other organisations by cash

rather than cheques. Details are shown in table 266.



Table 266: Excessive Cash Payments

Date PV

No.

Chq

No.

Amount

GH¢

Payee Details

20/2/17 7-Apr Cash 30,998.49 Accra Hearts Of

Oak F/C

Pymt of share of Gate

Proceeds in cash

13/3/17 12-Mar

Cash 40,860.00 Accra Hearts Of Oak F/C(AHO)

Pymt of share of Gate Proceeds in cash

21/3/17 30/3 Cash 32,766.80

Chief Acct

Pymnt of match

expenses

8/5/2017 1-

May

Cash 6,802.00 Accra Gt.

Olympics(AGO)

70% of gate proceeds

for match btn AGO &

Aduana Stars

22/5/17 12-

May

Cash 3,090.16 Kotoko Royals 25% Net gate proceeds

for match btn AHO & Kotoku Royals F/C

28/8/17 6-

Aug

Cash 11,992.48 Accra Gt.

Olympics

70% Share of gate

proceeds - AGO Vrs

AHO 27/8/17

31/8/17 11-

Aug

Cash 19,028.91 Accra Hearts of

Oak

70% Share of gate

proceeds - AHO Vrs

Aduana Stars (30/8/17)

Total 145,538.84

2427. The irregularity above also put the lives of account staff in

danger for handling such amounts of cash.

2428. We recommended to Management to put a stop to the practice

and ensure compliance with the regulation stated above. We also

advised Management that subsequently, all payments above petty

cash threshold should be made through the bank.

2429. Management responded that it has directed that all gate

proceeds for all matches be paid in gross to bank before

disbursements to the stakeholders are made by the use of cheques.

2430. In addition, a workshop was organised to teach staff to

enhance their understanding of the financial regulations.



Loan Received Not Recorded in Cash Book nor Accounted for

GH¢60,000.00 2431. Our review of records at the Kumasi Regional Sports Office

disclosed that an amount of GH¢60,000.00 was advanced to the

Headquarters to meet urgent expenses on the National Sports

Festival. Details are shown in table 267.

Table 267: Loan Received Not Recorded in any Cash Book

Date PV. No. Chq. No

Amt Details Recipient

5/9/17 RSC/01/09/17 235597 60,000.00 Being loan advanced to Hqtrs to meet urgent expenses for the National Sports Festival.

Mr. S A Avio

2432. We noted that this amount was not recorded in any of the

cash books of the Authority at the Headquarters. A letter dated 3

September, 2017 and signed by the former Director-General; Hon.

Robert Sarfo-Mensah stated that the loan will be reimbursed later.

We did not see any document accounting for the above stated

amount, neither was it refunded to the Kumasi Office as at the date

of this report.

2433. The above transaction lacks transparency and accountability.

It also denied the Kumasi office the needed funds to support their

operations.

2434. We advised Management to call on the former Director-

General, Hon. Robert Sarfo-Mensah and the former Chief



Accountant, Mr. S.A. Avio to account for the GH¢60,000.00 received

from the Kumasi office failure of which the amount should be

recovered from them and paid to the Kumasi Regional Sports Office

for verification.

2435. Management responded that the then Director-General, Hon.

Robert Sarfo-Mensah and Mr. S.A. Avio respectively have been

directed to account for the amount received from the Kumasi

Regional Office. Furthermore, steps are being taken to make the

relevant entries in our books to recognize the loan.

Overdue Rent - GH¢242,300.00 2436. Regulation 2(d) of FAR 2004 (L.I.1802) provides that the head

of government department shall secure the due and proper collection

of government revenue collectable by the department within the

terms of any enactment or of instructions issued or approved by the

Controller and Accountant-General.

2437. We noted that 15 Tenants of the National Sports Authority

were owing rent amounting to GH¢242,300.00 from January 2016

to December 2018. Details are shown in table 268.

Table 268: Overdue Rent – 2017

PARTICULARS

NO. OF SHOPS

NO. OF MONTHS

RATE/ MONTH

GH¢

YEAR TOTAL

GH¢

AMOUNT PAID GH¢

BALANCES GH¢

Dinabert Restaurant 1 12 800.00 9,600.00 - 9,600.00

Maxgringo Production 1 12 800.00 9.600.00 9,600.00 -

Maxgringo Production 1 12 700.00 8,400.00 8,400.00 -

El-Sayus Ltd 2 12 800.00 19,200.00 - 19,200.00

J. Initiative 1 12 800.00 9,600.00 - 9,600.00

Agambii Clothing 1 12 800.00 9,600.00 7,200.00 2,400.00

Estrher Kitchen 1 12 70.00 840.00 - 840.00

Patterns Exclusive 1 12 800.00 9,600.00 - 9,600.00

Haramani Sports Wear 1 12 800.00 9,600.00 - 9,600.00

Tagoe’s Kitchen 1 12 800.00 9,600.00 - 9,600.00

Quan’s Catering Services 1 12 800.00 9,600.00 - 9,600.00

Professional Football Association

2 12 500.00 12,000.00 - 12,000.00

Hydep Enterprise 1 12 800.00 9,600.00 7,000.00 2,600.00



E-5 Ltd (Grapa Company

Ltd.)

1 12 800.00 9,600.00 3,000.00 6,600.00

Total 16 168 136,440.00 35,200.00 101,240.00

Overdue Rent – 2018

Dinabert Restaurant 1 7 800.00 5,600.00 - 5,600.00

Maxgringo Production 1 12 800.00 9.600.00 9,600.00 -

Maxgringo Production 1 12 700.00 8,400.00 8,400.00 -

El-Sayus Ltd 2 12 800.00 19,200.00 - 19,200.00

J. Initiative 1 12 800.00 9,600.00 7,200.00 2,400.00

Agambii Clothing 1 12 800.00 9,600.00 - 9,600.00

Estrher Kitchen 1 12 70.00 840.00 180.00 660.00

Patterns Exclusive 1 12 800.00 9,600.00 - 9,600.00

Haramani Sports Wear 1 12 800.00 9,600.00 - 9,600.00

Tagoe’s Kitchen 1 12 800.00 9,600.00 - 9,600.00

Quan’s Catering Services 1 12 800.00 9,600.00 - 9,600.00

Professional Football

Association

2 12 500.00 12,000.00 - 12,000.00

Hydep Enterprise 1 12 800.00 9,600.00 2,000.00 7,600.00

Grapa Company Ltd. 1 12 800.00 9,600.00 - 9,600.00

Hon. Afenyi 3 6 2,000.00 36,000.00 - 36,000.00

Total 19 174 172,440.00 27,380.00 141,060.00

Grand Total 101,240.00 + 141,060.00 242,300.00

2438. The Marketing Officer reneged on his duty to ensure that the

Tenants paid their rent on time.

2439. He explained that there was a halt in activities at the stadium

due to renovation works to prepare for the AFCON Games.

2440. The inaction of the Marketing Officer denied the Authority the

needed revenue to support its operations for the period stated above.

2441. We urged the Marketing Officer to ensure that the above

stated amount of rent owed by the tenants are collected and paid

into the Authority’s accounts.

2442. Management responded that they have invited all the tenants

for a meeting to impress upon them the need to meet their financial

obligation to the Authority. The meeting took place on January 10,

2019 and they have been given a month’s ultimatum to pay or be

ejected. Management further promised to keep the auditors updated

on this development.



Absence of Tenancy Agreement Between NSA and Tenants 2443. Regulation 2(d) of FAR 2004 (L.I.1802) provides that the head

of government department shall secure the due and proper collection

of government revenue collectable by the department within the

terms of any enactment or of instructions issued or approved by the

Controller and Accountant-General.

2444. We noted that Management rented some of the facilities at the

Accra Sports Stadium to 20 companies and 2 individuals to

undertake commercial activities. Our review of the records showed

that there were no tenancy agreements between the Tenants and the

Authority. Details are as shown in table 269.

Table 269: List of Shops at the Stadium

No.

1 Tague’s Catering

2 Quans Catering

3 Dinabert

4 Mocart Chemist

5 El-Sayus

6 Maxgringo Productions

7 Ghalca (Not Rented)

8 Professional Footballers Association of Ghana

9 Willy Clutse Sports Shop

10 Madam Isha

11 J-Initiative

12 Easter’s Kitchen

13 NSA Stores

14 Hyderp (Mr. Anane’s Office)

15 NYEP

16 Grapa Company Ltd

17 Patterns Exclusive

18 Haramani Sports Shop

19 DDP Giant Billboards –2

20 NDK - Car Park

Corporate Boxes (NSA)

No.



1 Hon. Afenyo Markins 3 Boxes

2 Charles Stephens Fobi 1 Box

2445. The marketing officer explained that some tenancy

agreements were drafted but the tenants did not agree with the rent

because in their view the rates were too high, and so refused to sign,

meanwhile they were still operating at the stadium.

2446. Absence of signed tenancy agreement with the tenants by the

Authority could lead to loss of revenue in the event of default.

2447. We advised Management to to legally regularise their relations

with all the tenants at the stadium to avoid litigations.

2448. Management responded that during the meeting with the

tenants, they were notified that a new tenancy agreement was being

prepared and only those who were in good standing will have their

agreements extended.

Taxes Not Withheld - GH¢26,853.50

2449. Section 116(2) of the Income Tax Act, 2015 (Act 896) states

that a resident person, other than an individual, shall withhold tax

on the gross amount of the payment at the rate specified in the First

Schedule when the person makes payment to another resident

person for

(a) The supply or use of goods,

(b) The supply of any works, or

(c) The supply of services

2450. We noted that the Authority made payments to companies

and individuals for the supply of goods and services amounting to

GH¢405,970.00 without withholding taxes amounting to

GH¢26,853.50 in contravention of the above stated Regulation.

Details are provided in table 270.



Table 270: Taxes not Withheld

A/C 4

Date PV No. Chq No.

Amount GH¢ Payee Details WHT

9/3/2018 5-Mar 730214 3,000.00 Chief Acct Payment to contract workers 300

5/3/2018 1-Apr 730215 3,000.00 Chief Acct

Pymt of O'time all'ce to staff who disloged

the tank 300

25/4/17 3-Apr 730222 3,000.00 Chief Acct Pymt to contract workers 300

25/4/18 2-Apr 730223 8,500.00 Chief Acct Pymt to contract workers 850

3/11/2017

3/11/2017 8-Nov 730086 20,000.00 Chief Acct

Pyment of honorarium for inspection of the

stadium 2,000.00

8/11/2017 8-Nov 730087 8,300.00 Chief Acct Pymt for sitting all,ce for Board members 830.00

9/11/2017 14-Nov 730093 20,000.00 Chief Acct Hono to handball team in Kintampo 2,000.00

15/7/17 28/11 730108 20,000.00 Yoyoko Xo. Ltd

Payment for repairs for the Authority's Off Veh. 1,000.00

21/2/18 14/2 491755 3,000.00 Chief Acct

Pymt to contract

workers 300

15/11/17 29/11 730109 40,000.00 Firanko Ent

Pymt for Stationery Supplied 2,000.00

13/11/17 30/11 730110 50,000.00

Oforosy

Ent

Part pymt for Tyres &

Baatteries 2,500.00

15/11/17 31/11 730111 30,000.00

Jubilee Trav & Tour

Part pymt for Airtickets purch in 2012 1,500

15/12/17 32/11 730112 30,000.00

Glorious

Bay Cost of Tonners 1,500

15/12/17 33/11 730113 20,000.00 Haramani Ventures

Part pymt for outstanding debt 1,000

15/12/17 34/11 730114 10,000.00 Pioneer P. Awareness

Part pymnt of cost of sanitory items to Tema 500

10/8/2017 8-Aug 922472 8,600.00 Chief Acct

Printing of T'Shirts for May Day celebration 430



12/12/2017 14-Dec 491722 4,000.00 Chief Acct Pymt of all'ce to Cont Staff 400

5/10/2017 47/9 730057 20,000.00 Oforosy Ent

Part pymt for spply of soap & toiletories 1,000.00

5/10/2017 51/9 730062 10,000.00 Glorious Bay Pymt for Stationery 500

6/10/2017 52/9 730064 30,000.00 2KB Ent Pymt for T'Shirts 1,500.00

27/9/17 20/9 730018 8,300.00 Chief Acct Sitting all'ce to Board members 1,660.00

15/12/17 54/9 730066 14,670.00

Do the

Right Thing Ent

Part pymt for cost of repairs 733.50

6/10/2017 55/9 730067 5,000.00

Sekbee Creations Ent Cost of Decoration 250.00

1/8/2017 1-Aug 729970 40,000.00

Do the Right

Thing Ent

Part pymt for U8

engine

14/2/18 6-Feb 491747 3,200.00 Chief Acct

Cost of Binding, Printing of documents for Board mtg 160

6/6/2018 6-Feb 491778 3,000 Chief Acct Pymt for Cont Cleaners 300

6/6/2018 6-Mar 491779 8,700.00 Chief Acct Pymt to contract workers 870

15/12/17 7-Nov 922500 17,000.00 Chief Acct Pymt of Hono to B/A 1,700.00

A/C 5

28/3/17 34/3 Cash 7,700.00 Chief Acct Pymnt of all'ce to Mgt & Core Staff of NSA 770

Total

405,970.00 26,853.50

2451. The Chief Accountant did not ensure that all the necessary

deductions of withholding taxes were made before authorising

payments to the companies and individuals.

2452. The irregularity above prevented inflow of revenue into the

consolidated fund which consequently denied the government the

timely use of the funds.



2453. We urged the Chief Accountant to ensure that the above

stated taxes be retrieved from the payees, paid to the Ghana Revenue

Authority, and receipts made available for verification, failure of

which the amount should be recovered from the Chief Accountant.

2454. Management responded that they have taken note of this

observation and effort was being made to pay all withholding taxes

not withheld. The Accounts Staff were also being given the needed

training to build their capacity so as to avoid such mistakes.

Misapplication of VAT - GH¢97,872.02 2455. Section 117(1) of the Income Tax Act, 2015 (Act 896) states

that a Withholding Agent shall pay to the Commissioner- General

within 15 days after the end of each calendar month, a tax that have

been withheld in accordance with this division during the month.

2456. We noted that the Authority collected a total of

GH¢140,038.27 as 17.5% VAT on the sale of match tickets during

the period under review. However, only GH¢42,196.00 was paid to

Ghana Revenue Authority, leaving a difference of GH¢97,872.02

unpaid. Details are shown in table 271.

Table 271: Misapplication of VAT

Date Venue Details VAT Monthly

Totals

VAT Paid

to GRA

VAT

Outstanding

2/12/2016

Accra Sports stadium

Bechem United vs MC Alger 562.23

2/19/2017


Hearts vs Medeama 9,844.68

2/22/2017


Olympics vs Elmina sharks 593.96

2/26/2017


Hearts vs Wa All Stars 4,399.57

15,400.44 1,156.00 14,244.44



3/2/2017


Olympics vs Bechem United 414.34

3/5/2017


Olympics vs WAFA 702.23

3/12/2017


Hearts vs Olympics 13,012.55

3/15/2017

Accra

Sports stadium

Olympics

vs Inter Allies 420.89

3/19/2017

Accra

Sports stadium

Hearts vs Kotoko 40,846.49

55,396.50 1,124.00 54,272.50

4/2/2017


Olympics vs Dwarfs 861.89

4/5/2017


Hearts vs Bechem United 2,977.23

4/10/2017


Olympics vs Aduana Stars 1,051.19

4/16/2017


Hearts vs Elmina Sharks 6,562.13

4/23/2017


Hearts vs Sporting Miren 793.83

12,246.27 12,246.00 0

5/6/2017


Olympics vs Kotoko 2,847.66

5/8/2017


Hearts vs Wafa 8,557.87

5/21/2017


Hearts vs Kotoku Royals 2,801.49

5/27/2017


Olympics vs Berekum Chelsea 375.77



5/28/2017


Hearts vs Liberty Prof. 9,969.79

24,552.58 3,177.00 21,375.58

6/9/2017


Hearts vs Bolga All Stars 2,783.62

6/10/2017


Olympics vs Tema Youth 400.04

6/25/2017


Olympics

vs Liberty Prof. 431.47

6/28/2017


Hearts vs Ashgold 5,553.83

9,168.96 9,169.00 0

7/9/2017


Olympics vs Wa All Stars 338.09

7/12/2017


Hearts vs Berekum Chelsea 3,190.21

7/16/2017

Accra Sports

stadium

Olympics vs

Medeama 333.62

7/23/2017


Hearts vs Tema Youth 5,278.30

7/30/2017


Hearts vs Dan Bort F/C 3,778.51

12,918.73 12,918.00 0.73

8/27/2017


Olympics vs Hearts 4,144.15

8/30/2017


Hearts vs Aduana Stars 6,210.64

10,354.79 2,406.00 7,948.79

Total 140,038.27 140,038.27 42,196.00 97,842.04

2457. Management’s disregard for the above law occasioned the

anomaly.



2458. Consequently, non-payment of tax revenue amounting to

GH¢97,872.02 to GRA resulted in denying Government the needed

revenue.

2459. We advised Management to ensure that the above stated

amount of tax revenue is remitted to the GRA upon the receipt of

this Management letter failure of which the amount of

GH¢97,872.02 should be recovered from the Ag Chief Accountant.

2460. Management responded that it has tasked the Chief

Accountant to pay the above stated tax due government, however

measures have been put in place to avoid future occurrence of such

issues.

Payment without obtaining VAT Invoice - GH¢23,507.13

2461. Section 41(1) of VAT Act 2013, Act 870 states “A taxable

person shall on making a taxable supply of goods or service, issue

to the recipient, a tax invoice in the form and with the details of that

as prescribed by the Commissioner-General.”

2462. Our examination of the payment vouchers disclosed that an

amount of GH¢256,165.04 was paid by the Authority for goods and

services for which GH¢23,507.13 was paid as VAT without obtaining

VAT invoices as required by the VAT Act stated above. Details are

stated in table 272.

Table 272: Failure to Obtain Vat Invoice

A/C 2

Date PV No Chq No.

Amount GH¢ Payee Details VAT Paid

23/6/17 74212 - 34,121.40 Firanko ent.

Pymt for Stationery 5,307.73

23/6/17 74204 - 4,851.00

Firanko

ent.

Pymt for

Stationery 754.60

23/6/17 74208 - 23,936 Firanko ent.

Pymt for Toyota Hilux

engine

3,723.91



PFM

A/C

15/9/17 2-Dec 491709 5,000.00 Charles

Stephe Const.

Part-pymt for

Floor Carpet in DG's Office

573.00

4-Dec 1-Apr Cash 8,186.17 Chief Acct

Servicing of Pitch

1,273.40

5/6/2017 1-Jun Cash 4,200.00 Green

Grass Techn

Pymt for

preparing pitch at Kumasi

632.15

A/C 4

30/8/17 30/8 730002 78,910.00 Glovision Inv Ltd

Pymt for 2000 T’Shirts

2,700.00

30/8/17 31/8 730003 21,169.00

Maxgee Services Ltd

Pymt for disinfectation of matresses 3,292.98

15/11/17 22/11 730102 36,217.00 2KB Co. Ltd

Final pymt for Polo Shirts 1,810.00

5/10/2017 43/9 730035 9,574.47

True Tower Elect Eng Ltd

Part pymt of repair of generator 1,489.36

6/10/2017 52/9 730064 30,000.00 2KB Ent Pymt for T'Shirts 1,950.00

Total

256,165.04 23,507.13

2463. The Chief Accountant did not ensure that VAT invoices were

received from the vendors before authorising payment.

2464. Failure to obtain VAT invoices for procuring goods and

services from VAT registered companies did not only violate the Act

stated above but could also result in the suppliers not accounting

for the VAT charged, leading to loss of funds to the state.

2465. We urged the Chief Accountant to ensure that VAT invoices

for the procurement of goods and services are obtained and our office

notified for verification failing which the authorising and approving

officers may be made to refund the amount stated above.

2466. Management responded that it has directed the accounts

department to secure VAT invoices from the companies concerned.



A training programme was organised for all Accountants and

Managements staff to enhance their understanding of financial

regulations.

Use of photocopy VAT invoices - GH¢125,252.47

2467. Regulation 39(2b) of the Financial Administration

Regulations, 2004, LI 1802, requires that the Head of Accounts

Section of a Department shall control the disbursements of funds to

ensure that transactions are properly authenticated to show that

amounts are due and payable.

2468. We noted that a total amount of GH¢125,252.47 was paid by

the Authority to Ghana Football Association (GFA) as cost of printing

tickets from the gate proceeds of matches played during the period

under review. However, the Head of Accounts at the Authority did

not demand original VAT invoices from the Printing House

(Commercial Associates) from GFA for the above-mentioned amount.

Details are stated in table 273.

Table 273: Photocopied VAT Invoices

No Date Venue Details Cost of

Printing

1 2/12/2016 Accra Sports stadium

Bechem United vs MC

Alger

2 2/19/2017 Accra Sports stadium Hearts vs Medeama 2,180.80


Olympics vs Elmina

sharks 159.00

4 2/26/2017 Accra Sports stadium Hearts vs Wa All Stars 2,180.80

5 8/30/2017 Accra Sports stadium Hearts vs Aduana Stars 1,410.00

6 8/27/2017 Accra Sports stadium Olympics vs Hearts 2,068.00

7 7/30/2017 Accra Sports stadium Hearts vs Dan Bort F/C 601.60

8 7/23/2017 Accra Sports stadium Hearts vs Tema Youth 1,410.00

9 7/16/2017 Accra Sports stadium Olympics vs Medeama 197.40


Hearts vs Berekum

Chelsea 2,096.20


Olympics vs Wa All

Stars 198.00

12 6/28/2017 Accra Sports stadium Hearts vs Ashgold 2,096.20




Olympics vs Liberty

Prof. 197.40


Olympics vs Tema

Youth 192.70


Hearts vs Bolga All

Stars 1,400.60

16 5/28/2017 Accra Sports stadium Hearts vs Liberty Prof. 1,400.60


Olympics vs Berekum

Chelsea 192.70

18 5/21/2017 Accra Sports stadium Hearts vs Kotoku Royals 177.00

19 5/8/2017 Accra Sports stadium Hearts vs Wafa 2,838.80

20 5/6/2017 Accra Sports stadium Olympics vs Kotoko 2,838.80


Hearts vs Elmina

Sharks 2,838.80


Olympics vs Aduana

Stars 197.40


Hearts vs Bechem

United 2,841.65

25 4/2/2017 Accra Sports stadium Olympics vs Dwarfs 197.40

26 3/19/2017 Accra Sports stadium Hearts vs Kotoko 3,478.00

27 3/15/2017 Accra Sports stadium Olympics vs Inter Allies 197.40

28 3/12/2017 Accra Sports stadium Hearts vs Olympics 2,180.80

29 3/5/2017 Accra Sports stadium Olympics vs WAFA 197.40

Total 35,965.45

Table 273 a Date Venue Match VAT Inv Amt

GH¢

22/2/17 K'si Sports Stadium Kotoko Vrs Bechem United 3,322.40

13/12/17 K'si Sports Stadium Kotoko Vrs Liberty 3,322.90

5/3/117 K'si Sports Stadium Kotoko Vrs Elmina Sharks 1,442.90

2/4/2017 K'si Sports Stadium Kotoko vrs Inter Alles 1,913.00

9/4/2017 K'si Sports Stadium Kotoko Vrs Dwarfs 1,725.00

26/4/17 K'si Sports Stadium Kotoko vrs Aduana 2,665.00

14/5/17 K'si Sports Stadium Kotoko vrs Tema Youth 1,583.90

4/6/2017 K'si Sports Stadium Kotoko Vrs Olympics 2,665.17

11/6/2017 K'si Sports Stadium

Black Stars vrs Ethiopia National Team 24,675.00



24/6/17 K'si Sports Stadium Kotoko vrs Wa All Stars 1,424.00

9/7/2017 K'si Sports Stadium Kotoko vrs Mediama 1,420.00

6/8/2017 K'si Sports Stadium Kotoko vrs Heart 3,379.00

20/8/17 K'si Sports Stadium Black Stars vrs Burkina Faso 3,818.75

27/8/17 K'si Sports Stadium Kotoko vrs Bolga All Stars 698.00

4/9/2017 K'si Sports Stadium

Black Vrs Congo

World Cup 21,609.00

5/10/2017 K'si Sports Stadium Kotoko vrs Ashgold 2,251.00

15/10/17 K'si Sports Stadium Kotoko Vrs Berekum F/C 11,372

Total

89,287.02

2469. We attributed the above condition to negligence on the part of

the Ag. Chief Accountant at the Headquarters in Accra and the

Accountant in Kumasi.

2470. The photocopies of the VAT Invoices presented by GFA to

claim the above amount could have been falsified to increase the cost

of printing. Similarly, the original copies of the VAT invoices could

also be used by GFA to claim funds elsewhere, which will result in

claiming twice the amount spent in printing the tickets.

2471. We recommended that the Head of Accounts should obtain

the original copies of the VAT invoices from GFA for our verification.

Furthermore, the Head of Account should always insist on obtaining

original and authentic copies of VAT Invoices from the Printing

House before paying for cost of printing.

2472. Management responded that it has directed the Ghana

Football Association (GFA) to provide the original copies of the VAT

invoices.



Sponsorship for Sports Associations Not Accounted for

($214,484 & GH¢939,126.09) 2473. Section 18(1) of the Sports Act, 2016 (Act 934) states that

each national sports association shall submit a budget on the

activities of the association in respect of

(a) the national team; and

(b) any other national sporting activity

2474. Subsection (2) also states that a national sports association

shall account through the Authority to the Minister for moneys

received from sponsorship, gifts and any other benefits for purposes

of paragraphs (a) and (b) of subsection (1).

2475. We noted during review of the records that, the Authority

advanced a total of GH¢939,126.09 and $214,484.00 to 10 sports

associations to prepare and participate in various national and

international games during the year under review. However, the

associations did not account for the moneys received from the

Authority, in contravention of the above stated provisions of the Act.


Table 274a: Sponsorship Funds Not Accounted For - FOREIGN ACC

(Dollars)

Date Chq No.

Amount

$ Payee Details

30/7/17 877027 84,900 Bawa Fuseni

Amt released for National Athletic Team to represent in London IAAF World Champ (4-14/8/17)

8/8/2017 877028 50,000 Joseph Bortey

Amt released for celebration of National Sports festival in Kumasi

30/8/17 877031 26,584 S. Avio Amt released for celebration of National Sports festival

30/8/17 877032 50,000 S. Avio Amt released for National Sports Festival



7/11/2017 877033 3,000.00 Seth Ntim

Amt released for Zone 2 Junior Swimming Ass. to enable Team Ghana participate in Lagos, Nigeria Tournament

Total 214,484

Table 274b: Sponsorship Funds not accounted for in Cedis

DATE PV. No Chq No Amount

GH¢ Payee Details

PFM A/C

10/7/2017 1-Jul 922447 22,000.00 Christiana Ashley

Imprest to 2018 World Volley Ball Championship sched for 7-11/7/17

21/7/17 5-Jul 922455 20,000.00 Daniela Arhin Ghana Dwarfs Sports Ass, Participation in 2017 World Dwarfs Games in AUELPIA

21/7/17 6-Jul 922456 16,450.00 Chief Acct Amt released for Para Athletics and Officers to World Para Athletics Ch'ship in UK-London

20/6/17 3-Aug 922467 3,828.00 Chief Acct Ghana Amputee Football Ass. - GAFA membership fees

25/9/17 2-Sep 922480 10,000.00 Chief Acct Amt released to support National Under 18 Female

Handball to Participate in All African T'nament

20/11/17 5-Nov Cash 10,434.00 Chief Acct Pymt for 13th African Shooting Ch'ship in Cairo, Egypt

15/12/17 7-Nov 922500 17,000.00 Chief Acct Pymt of Hono to B//A

A/C 4

17/1/18 8-Jan 730179 8,404.00 Chief Acc'tant Payment for camping of Boxers

18/1/18 9-Jan 730180 60,000 Chief Acc'tant Payment for

transport, feeding, all'ce for camping



19/1/18 11-Jan 730184 15,000.00 Ignatius Elettey

Ghana Badminton Ass., Preparation for impending C'wealth Games

19/1/18 12-Jan 730185 6,000.00 Seth Ntim Payment for preparation for C'wealth Games

19/1/18 13/1 730186 10,000.00 Abubalio Taylor

Ghana Weightlifting Federation

19/4/18 14/1 730187 10,000.00 Tatranor Johnson

Sponsorship for Table Tenis Ass

19/1/17 15/1 730188 30,000.00 Nasahaku Yakubu

Sponsorship for Ghana Hockey Ass. Preparation for

impending C'wealth games

19/1/18 16/1 730189 5,000.00 Patrick Johnson

Ghana Shootings Ass Prep for C'wealth Games

19/1/18 17/1 730191 5,000.00 Peter Adjei Para Power lifting Ass. Preparation for C'Wealth Games

19/1/18 18/1 730192 6,000.00 Ignatius Elettey

Para Athletics Ass. Preparation for C'wealth Games

19/1/18 19/1 730261 6,000.00 Denis K. Moore Pymt for residential camping for impending C'wealth games

19/1/18 18/2 730202 5,000.00 Denis K. Moore Ghana Cycling Ass

7/3/2018 1-Mar 730209 7,800.00 Chief Acc'tant Imprest for hono to Officiating Officers

9/11/2017 15 Nov 730094 27,900.00 Charles Amofa Amt released to

support Handball Ass. Of Ghana to take part in Int Handball federation

Congress in Turkey from 10-13/11/17

Total 301,816.00



Table 274c-Sponsorship Funds not Accounted for PV No. 4/3/ of

9/3/18 Chq No. 730213 No. Payee Amount Purpose Remarks

1 George Lamptey, 10,000.00

Preparation by

Ghana Boxing

Federation t'wds

2018 c'wealth

Games, Gold Coast Australia

No details of

expenditure with suporting documents

2 Yeboah Evans 20,000.00

Honour Certificate

for Equipment

purchased

No details of

expenditure with

suporting documents

3 Cillian G. 10,000.00 Equipment

No details of expenditure with

suporting documents

4 Peter Adjei 40,000.00 Equipment

No details of

expenditure with

suporting documents

5 Mawuko 25,000.00 Equipment

No details of

expenditure with suporting documents

6 Ghana Athletic Ass. 20,000.00 Equipment

No VAT Inv, SRA, WHT Recpt etc

7

Richard

Akpokavie 20,000.00 Equipment

No details of

expenditure with

suporting documents

8

Ghana

Swimming

Ass. 15,000.00 Logistic Suport

No details of

expenditure with

suporting documents

9

Shaaba

Mohammed 40,000.00

Honour Certificate for Logistic Suport

to Ghana Cycling

Ass.

No details of

expenditure with

suporting documents

10

Shaaba

Mohammed 40,000.00

Honour Certificate

for Logistic Suport

to Ghana Para

Athletic Ass.

No details of

expenditure with

suporting documents

11 Samuel Sarpong 1,350.00 Pymt of Overtime

No attendance sheet nor authorisation

12

Diamond

Hotel, K'si 49,280.00

Food & Acc'tion

for 22 people for 7

dayss

No attendance sheet

for names, address &



contact no.s for

participants

13

Sekinatu

Bempong 2,000.00

Honour

Certufucate for imprest for Board

Meeting

No details of expenditure with

suporting documents

14

Hon.

Korankye

Donkor 5,000.00 Car Rental

No details of

expenditure with

suporting documents

15

Providence

Bookshop 1,400.00

Printing &

Binding of bks

No VAT Inv, SRA, WHT

Recpt etc

16

Rics Consult

Ltd 1,598.00

cost of document

reproduction

No VAT inv, SRA, WHT

recpt etc

17

Frederica M.

Davies 15,000.00

Amt released to

organise press

conference

No details of

expenditure with

suporting documents

18 Grace Asiam 2,000.00

Amt released for T

& T for staff No signed claim sheet

19

Samuel

Sarpong 2,600.00

Amt paid to

Florence Sepenu

& co

No purpose stated nor

WHT deducted

20

DWA

Dizengoff Gh. Ltd 3,200.00

Cost of service provided

No VAT Inv, nor kind of service stated

21

ACACIA

Services Ltd 1,802.00 -

No purpose nor VAT

inv provided

22

Jingle Hotel -

C-Coast. 28,110.00

Refreshment for

officials

No list of officials and

their designations

23

Diamond

Hotel, K'si 22,610.00

Catering services for athletics for 7

days

No list of athletics and

their disciplines

24

Samuel

Sarpong 6,000.09

Amt paid to

Jonalists from

various media

houses

No authorisation nor

approval

25

Authentic

Catering Services 8,000.00

Food, Drinks & Water purchased

No VAT Inv nor

purpose for the transaction

26 Evans Yeboah 30,000.00

Preparation and

procurement of

logistics, kitting &

equipment iro

No details of

expenditure with

suporting documents



2018 C'wealth

Games

27 Bawa Fuseni 12,800.00

Part payment of

camping all'ce to

qualified Athlketes

iro C'wealth

Games, Australia No signed claim sheet

28

Haramani

Ventures 100,000.00

Part-payment for supply of general

kitting for the

impending 2018

C'wealth Games

No VAT Inv, WHT,

SRA etc.

TOTAL 532,750.09

Table 274d Sponsorship Funds not accounted for

A/C 4

DATE PV.NO.

CHQ

NO. AMT PAYEE DETAILS REMARKS

03-07-18

730219 810.00 GRA Withholding Tax for contract workers

No Receipt from GRA

03-07-18

01-Mar

730209 2,300.00 Table Tennis

Officials Hono for officiating officials

Claim sheet not signed by officials

03-07-18

01-Mar

730209 1,450.00 Boxing & Medical Team Hono for

officiating officials

No autority note from intended payees

03-09-18

10-Mar

730220 100,000.00 Haramani Ventures

Part-payment for supply of general kitting for the impending 2018

No VAT Inv, WHT, SRA etc.



C'wealth Games

Total 104,560.00

2476. Improper controls exercised over disbursements at the

Authority accounted for the anomalous condition.

2477. We therefore could not certify that the moneys collected by

the Associations were used for their intended purposes.

2478. We advised Management to liaise with the presidents of the

associations involved to submit the relevant documents to account

for the above stated amounts received from the Authority and notify

our Office for verification, failing which the authorising and

approving officers should be held accountable.

2479. Management responded that it has directed all Presidents of

the various associations involved to submit accounts on all advances

given them in connection with the games for proper scrutiny.

Imprest Not Retired - GH¢39,905.00 2480. Regulation 289(1&2) of the FAR states that; imprest shall be

retired at the close of a financial year and any imprest not so retired

shall be adjusted to a personal advance account in the name of the

imprest holder.

2481. We noted that a total amount of GH¢39,905.00 was advanced

to some members of staff by the Ag. Chief Accountant to undertake

various activities during the period under review. None of the

members of staff have retired these advances as at 30th June 2018.

Details are stated in table 275.



Table 275: Imprest Not Retired

Date PV No. Chq No.

Amount GH¢ Payee Details

A/C 4

26/4/18 - 730225 3,000.00 Chief Acct Trip to K'si for Kotoko Vrs Hearts Match

Acc'tion & Acc. Imprest not retired

15/12/17 56/9 730068 14,400.00 Chief Acct Imprest to D-G to travel to India

Imprest not retired

PFM A/C

14/2/18 16/2 491,757.00 7,000.00 Chief Acct Acc'ble imprest for Acc'tion, feeding for Coaches

Purpose not stated

28/2/18 18/2 491761 5,000.00 Chief Acct Acc'ble Imprest for 1 day familiarisation tour in Cent Region

Amt not accounted for. Claim sheet not signed

21/2/18 1-Mar 491764 6,805.00 Chief Acct Amt released to cater for task force w'shop in Accra from 7 - 9/3/18.

7/12/2017 9-Dec 491716 3,700.00 Chief Acct Pymt of Acc'dation and acc'ble imprest for Board members who attended the

renaming of Tamale Stadium

Total 39,905.00

2482. Non- compliance with the provisions of the FAR by the

individuals resulted in the above stated condition.

2483. We could not ascertain whether the amounts advanced to

them were judiciously spent in the interest of the Authority.

2484. We recommended that the Ag. Chief Accountant should call

on the members of staff to account for the amounts received as

imprest, failure of which the amounts should be debited to their

personal accounts in line with regulation 289 of the FAR.



2485. Management responded that the then Head of Accounts, Mr.

Samuel Sarpong has been directed to ensure that all those who were

given the imprest retire them immediately and bring the receipts for

verification.

Inadequate Supporting Documents (GH¢819,062.92) 2486. Regulation 1(a) of the Financial Administration Regulations

(FAR) 2004 requires that any public officer who is responsible for the

conduct of financial business on behalf of the Government shall keep

proper record of all transactions and shall produce records of the

transaction for inspection when called upon to do so by the Minister

or any officer authorised by him.

2487. We noted that, sixty-one (61) payment vouchers totalling

GH¢819,062.92 used to pay for goods and services procured during

the period under review were without the necessary source

documents. Details are shown in table 276.

Table 276: Inadequate Supporting Documents

A/C - 4

Date PV No Chq No. Amount Payee Details Remarks

9/1/17 3-Jan 730174 5,000.00 Chief Acct Adm Expenses No source documents

10/1/18 6-Jan 730177 3,000.00 Chief Acct, (Lizz's frozen shop)

Pymt for X'mas Package for Staff

No distribution list

23/1/18 11-Jan 730198 1,200.00 Emmanuel Brobbey

Pymt for Upholsory Wks on GV 75-14

No Receipt

9/3/18 5-Mar 730214 3,000.00 Chief Acct Pymt to Cont Cleaners

No Cont Agreemts

5/3/18 5-Mar 730215 3,300.00 Chief Acct Pymt of O'time to staff

No attendance sheet

8/11/17 8-Nov 730086 20,000.00 Chief Acct Pymt of Honorarium for inspection of the Stadium

No signed claim sheets



8/11/17 14-Nov 730093 20,000.00 Chief Acct Pymt of

Honorarium to Handball Team in Kintampo

No info on

games, No claim sheet

10/11/17 16/11 730096 16,813.15 Chief Acct Overtime all'ce for July -Sept 2015

No attendance sheet

10/11/17 18/11 730098 15,985.58 Chief Acct Overtime all'ce for Oct-Dec 2015

No attendance sheet

14/11/17 20/11 730098 22,670.00 Hon Sarfo Mensah & Others

Pymt for trip to visit Cape Coast

Acc'dation & Fuel not accounted for

15/11/17 22/11 730102 36,214.00 2KB Co. Ltd Final pymt for printing of Polo Shirts

No source documents

15/11/17 28/11 730108 20,000.00 Yoyoko Xo.

Ltd

Payment for

repairs for the Authority's Off Veh.

No source

documents

14/11/17 25/11 730105 30,000.00 ECG Pymt of Electrity Bill is

photocopy,

14/11/17 26/11 730106 20,000.00 ECG Pymt of Electrity Amt paid on Rcpt No. 37000198 0f

3/11/17 is Ghc6,000.00

14/4/17 27/11 730107 20,000.00 ECG Pymt of Electrity Bill is

photocopy,

28/10/17 40/9 730051 5,000.00 Dinbert Catering Services

Part payment for Catering services for Sports

Festival

No supporting document and ref. to initial

paymt

15/11/17 29/11 730109 40,000.00 Firanko Ent Pymt for Stationery

Supplied

No source documents

13/11/17 30/11 730110 50,000.00 Oforosy Ent Part pymt for Tyres &

Baatteries

No source documents

15/11/17 31/11 730111 30,000.00 Jubilee Trav & Tour

Part pymt for Airtickets purch in 2012

No source documents

15/12/17 32/11 730112 30,000.00 Glorious Bay Cost of Tonners No source documents

15/12/17 33/11 730113 20,000.00 Haramani Ventures

Part pymt for outstanding debt

No source documents

15/12/17 34/11 730114 10,000.00 Pioneer P. Awareness

Part pymnt of cost of sanitory

items to Tema

No source documents

6/9/2018 - Cash 5,000.00 Goil Purch of Fuel

coup

No Inv. Nor

Recpt from GOIL



PFM

A/C

17/1/17 8-Jan 922428 5,667.00 Pymt for electrical

accessories

No source documents

25/1/17 15/1 922434 5,000.00 Chief Acct Part-payment for airtickets

No source documents

25/1/17 15/1 922435 2,300.00 Chief Acct Pymt to cont Staff No Signed claim sheet

- 18/1 922438 7,000.00 Director-Gen Pymt for overtime for 3rd qtr of 2013, 2014 2015

No supporting documents/Attendance

sheet

30/1/17 19/1 922439 5,000.00 GOIL Purch of Fuel coup

No source documents

2/11/17 3-Nov 922493 10,000.00 Chief Acct Part-payment for preparationn of Baba Yara Stadium for

Ghana Vrs Ethiopia Match

No source documents

20/11/17 6-Nov 922497 2,556.00 Kee Masters Repair of Corp.

Box

No source

documents

15/12/17 16/12 491724 2,500.00 Chief Acct Refund of Expenses on

behalf of the Authority

No source documents

15/12/17 15/12 291723 1,500.00 Hon. Robert

S. Mensah

Accomodation for

3 days trip to Ashanti Region

No source

documents, PV not signed

17/10/17 3-Oct 922486 3,200.00 Ephraim

Afenya

T & & for

banking duties from June to Dec 2016, and Jan to Dec 2017

No details

provided. PV not signed

17/10/17 3-Oct 922987 3,200 Benjamin Neequaye

T & & for banking duties from June to Dec

2016, and Jan to Dec 2017

No details provided. PV not signed

27/7/17 5-Jun Cash 1,200.00 Chief Acct Pymt of overtime to Mr Nasitu Yakubu for 3/16

- 3/17

No attendance sheet, PV not signed

A/C 2

27/6/17 46/7 5028 31,680.00 Chief Acct Amt released for Mgt retreat at Cape Coast

No source documents

A/C 5

20/2/17 16/2 Cash 7,240.00 Fresh Breez Ent

Cost of Tonners for Office use

No source documents

21/3/17 30/3 Cash 32,766.80 Chief Acct Pymnt of match expenses

Not properly accounted for



27/3/17 42/3 Cash 1,600.00 Dornyo Eng

Works

Repair of Off Veh No source

documents

22/2/17 46/3 Cash 3,998.00 Zoomlion Pymt for refuse collection

No source documents

11/4/17 10-Apr Cash 3,025.13 Accra Gt. Olympics

70% of gate proceeds for

match btn AGO & Aduana Stars

No receipt

8/5/17 1-May Cash 6,802.00 Accra Gt. Olympics

70% of gate proceeds for

match btn AGO & Aduana Stars

No receipt

22/5/17 12-May Cash 3,090.16 Kotoko Royals 25% Net gate

proceeds for match btn AHO & Kotoku Royals F/C

No receipt

22/5/17 16/5 Cash 5,121.21 GFA Pymts of share of net gate proceeds AHO Vrs Kotoku

Royals

No receipt

29/5/17 17/5 Cash 796.12 Accra Gt. Olympics

Share of gate proceeds for

match btn AGO Vrs Chelsea 27/5/17

No receipt

12/6/17 8-Jun Cash 883.75 Accra Gt.

Olympics

Share of gate

proceeds AGO Vrs Tema Youth Club

No receipt

27/6/17 13/6 Cash 994.07 Accra Gt. Olympics

Gate proceeds No receipts

10/7/17 4-Jul Cash 656.56 Accra Gt.

Olympics

Gate proceeds No receipts

28/8/17 6-Aug Cash 11,992.48 Accra Gt. Olympics

70% Share of gate proceeds - AGO Vrs AHO 27/8/17

No receipts

31/8/17 11-Aug Cash 19,028.91 Accra Hearts

of Oak

70% Share of

gate proceeds - AHO Vrs Aduana Stars (30/8/17)

No receipts

A/C 4

14/8/17 11-Aug 729982 3,822.00 2KB Payment for60 polo T'Shirts

No SRA nor distreibution

list

18/8/17 27/9 730036 11,298.00 Oforosy Ent Refreshment for VVIP

No source documents

5/10/17 46/9 730057 11,290.00 Chief Acct Pymt of Honorarium to Medical Team




5/10/17 47/9 730057 20,000.00 Oforosy Ent Part pymt for

spply of soap & toiletories

No source

documents. No distribution list

5/10/17 44/9 730060 10,000.00 Chief Acct Pymt of Honorarium to Handball Team of

B/A


5/10/17 51/9 730062 10,000.00 Glorious Bay Pymt for Stationery

No Invoice

15/12/17 54/9 730066 14,670.00 Do the Right Thing Ent

Part pymt for cost of repairs

No source documents

1/8/17 1-Aug 729970 40,000.00 Do the Right

Thing Ent

Part pymt for U8

engine

No source

documents

30/8/17 30/8 730002 78,910.00 Glovision Inv Ltd

Pymt for 2000 T'Shirts

No invoice & distribution

list

11/8/17 11-Aug 729982 3,822.00 2KB Co. Ltd Pymts for 60 Polo T'Shirts

No invoice & distribution list

23/8/17 13/8 729988 9,270.00 Glorious Inv Ltd

Pymts for Polo T'Shirts

No invoice & distribution list

Total 819,062.92

2488. Control weakness in the payment procedures of the Authority

occasioned the irregularity.

2489. Absence of adequate supporting documents to payment

vouchers may result in illegitimate disbursement of funds leading to

misappropriation and loss of funds to the State.

2490. We recommended to the Ag. Chief Accountant to ensure that

the necessary source documents for the payment vouchers are

provided for verification, failing which the amount should be

recovered from the authorising and approving officers.

2491. Management responded that it has directed the then Ag.

Chief Accountant, Mr. Samuel Sarpong to fully discharge those

payment vouchers by providing the memo’s and the supporting

documents duly approved by the spending officer of the Authority

for verification.



Disbursements made from IGF - GH¢28,240.00


states ‘A department that has a legislative approval to retain all or a

portion of Internally Generated Funds (IGF) must first lodge the

funds in gross into the Operational Bank Account Designated by

C&A-G before disbursements are made.’

2493. We noted that the Accounts Officer at the National Hockey

Pitch (NHP) disbursed an amount of GH¢28,240 from NHP’s IGF of

GH¢58,000 collected before remitting the difference of

GH¢29,760.00 to the Headquarters.

2494. The Accountant explained that the bank accounts of the

National Sports Authority were frozen by their suppliers for non-

payment of their debts.

2495. Spending from IGF before lodgments exposes the Authority to

the risk of loss of funds and possible abuse by the staff of the

Authority.

2496. We recommended that all IGF collected by the Authority

should be lodged at the bank before any disbursements are made by

cheques or bank transfer.

2497. Management responded that, the Accounts of the Authority

have been defrozen and the problem has been resolved.

Furthermore, in strict compliance with Regulation 18 of the

Financial Administration Regulations, all Accountants of the

Authority both at Headquarters and the Regions have been directed

to desist from the practice of disbursement from IGF before lodgment

and that any Accountant who violates this provision shall be

sanctioned.



Unpresented Payment Vouchers - GH¢299,847.18 2498. Regulation (1) of the Financial Administration Regulations

2004 states “Any public officer responsible for financial business,

receipt, custody and disbursement of public and trust money should

keep proper records of all transactions and should produce them for

inspection when called upon by the Minister, Auditor-General,

Controller and Accountant-General or any officer authorised by

them”.

2499. Contrary to the above regulation, 31 payment vouchers valued

at GH¢299,847.00 said to have been used for various activities

within the period under review were not presented for audit. Details

are stated in table 277.

Table 277: Unsighted Payment Vouchers

Date PV No. Chq No. Amount

GH¢ Details

7/27/2017 6,418.53

Payment to M J Septic

services

7/27/2017 4,851.00

payment for supply of

items by Firako Ent

Ltd

7/27/2017 23,936.16

payment for supply of items by Firako Ent

Ltd

7/27/2017 34,121.49

payment for supply of

items by Firako Ent

Ltd

Total 69,327.18

3/30/2017 41/3 cash 5,000.00

1/6/2017 5/1 922423 6,000.00

Part payment for

dislodgement of septic

tank- M J Septic

1/30/2017 17/1 922437 7,800.00 Allowance to Board

Members

2/6/2017 3/02 922444 5,000.00

3/31/2017 1/3 cash 3,998.00 Administrative

Expenses



7/12/2017 3/7 922452 9,700.00 out of station

allowance

5/31/2017 7/5 cash 850.00 Allowance to zoomlion

staff

7/11/2017 2/7

1,000.00 pump servicing

11/17/2017 4/11 922495 3,000.00 Administrative

Expenses

11/28/2017 10/11 491703 10,000.00 part payment for air

tickets

11/28/2017 11/11 491704 10,000.00 DG/MGT trip to Brong Ahafo

12/7/2017 12/12 491720 4,400.00

Donations refund to

supporter’s union of

Ghana

12/7/2017 13/12 491721 30,000.00 Payment of service

provided

2/21/2018 16/2 491758 720.00 Repairs on NSA vehicle

(GV 75 14)

5/3/2018 1/5 491771 5,742.00 Administrative Expenses

Total 103,210.00

Account 4

9/27/2017 43/09 730054 20,000.00 part payment for

feeding

9/27/2017 57/09 730069 33,300.00 repairs of official

vehicle

11/9/2017 6/11 730084 5,000.00 refund of expenses

11/9/2017

730085 5,000.00 refund of expenses

11/9/2017


11/10/2017




11/13/2017


1/18/2018 10/01 730181 15,000.00

payment for residential

camping for Ghana Athletics Association



towards impending

Common Wealth

Games

1/19/2018 19/01 730194 8,000.00

payment for residential

camping for Ghana

Boxing federation towards impending

Common Wealth

Games

1/30/2018 23/01 730198 1,000.00 refund of fuel expenses

Total 127,310.00

Grand Total

299,847.18

2500. Improper handling of payment vouchers at the finance

directorate of the Authority accounted for the irregularity.

2501. Consequently, we could not verify the authenticity of the

payments and withdrawals made from the bank by the account’s

office.

2502. We recommended that the payment vouchers together with

the supporting documents should be provided for examination,

failing which the amount should be recovered from the Ag Chief

Accountant.

2503. Management responded that it has directed the then Ag. Chief

Accountant, Mr. Samuel Sarpong who is on leave to report to work

immediately to assist in providing the payment vouchers and their

supporting documents duly approved for your verification.

Unbudgeted Expenditure-GH¢1,531,760.00

2504. Section 30 (1) of the Public Financial Management Act 2016

(Act 921) states that a Principal Spending Officer shall plan and



manage the activities of a Covered Entity in accordance with the

policy statement and financial estimates of that Covered Entity.

2505. We noted that a total amount of GH¢1,531,760.00 meant for

goods and services was transferred into A/C 4 of the Authority to

meet part of expenses of the 2017 Sports Festival. We further noted

that there was no provision for the celebration of National Sports

Festival in the 2017 budget.

2506. We attributed the above anomaly to Management’s disregard

for the above provisions in the Public Financial Management Act.

2507. We advised Management to desist from the practice and

ensure that all activities should be properly planned and budgeted

for to avoid spending above their budget.


Stock Register of Value Books not sighted


Regulations 2004 L I 1802 requires that a head of department shall

ensure the effective and efficient control of stocks of value books.

2510. We noted that the head of Accounts of the Authority did not

keep any register to record nor control the General Counterfoil

Receipts (GCRs) and other value books of the Authority.

2511. The New Head of the Accounts Office, Mr Salisu Umaru stated

that no such register was handed over to him when he assumed

office.



2512. The above irregularity could be attributed to weakness in the

use and management of General Counterfoil Receipts and other

value books of the Authority.

2513. The Authority stands the risk of losing revenue which might

be collected with stolen GCRs that might not have been recorded in

the register, leading to loss of funds to the state.

2514. Management was advised to ensure that the former Ag Chief

Accountant, Mr Samuel Sarpong is made to produce the stock

register and inform us for inspection.

2515. Management responded that a stock register for value books

has been currently procured and entries are being made for

verification.

Failure to Prepare Financial Statement for 2017

2516. Section 79(1) of the Public Financial Management Act (PFMA),

2016 (Act 921) requires that a Principal Spending Officer shall,

through the Principal Account Holder, prepare and submit quarterly

financial statements to the Controller & Accountant–General (C&A-

G) by 15th day of the month following each quarter of each financial

year; and submit any other relevant report within the time that the

C&A-G may determine.

2517. Section 80(1) of PFMA also requires that A Principal Spending

Officer of a covered entity shall, within two months after the end of

each financial year, prepare and submit to the Auditor-General and

C&A-G the accounts and information set out in the Schedule.

2518. We noted that Management did not prepare and submit

quarterly financial statements to the C&A-G; neither did they



prepare annual accounts to the Auditor-General and the C&A-G for

the 2017 financial year.

2519. Inadequate record keeping and laxity on the part of the Ag.

Chief Accountant resulted in the above anomaly.

2520. Consequently, the above irregularity makes it difficult to

measure Management’s stewardship for the year under review. It

also stifles planning and decision making by stakeholders.

2521. We urged Management to prepare the financial statements

and submit to the Auditor-General and C&AG to avoid sanctions by

the Minister.

2522. Management responded that the new Director-General, who

was appointed in December, 2018 has taken serious note of this

observation. To address it, he has tasked the new Chief Accountant

to form a task force to prepare the financial statements of the 2017

and 2018 financial years by the end of the first quarter of 2019.

Unearned Salary - GH¢20,732.47

2523. Regulation 297(1)(e) of the Financial Administration

Regulations, 2004 says that a head of department should cause the

immediate stoppage of payment of a public servant when that public

servant had retired or ceases to be a staff.

2524. Our review disclosed that a total amount of GH¢20,732.47

was paid to 9 former employees of the Authority who were separated

by way of death, retirement, resignation and vacation of post. Details

are a stated in table 278.



Table 278: Unearned Salary

No. Staff Name Type of

Separation

Date of

Separation

No. of

Months of

Unearned

Salary

Amount

Unearned

(Gross)

Total

Amount

GH¢

1 Samuel Ampaw Retirement 06-10-17 1 1,263.15 1,263.15

2 Anthony A. Songe Retirement 01-09-17 1 2,354.88 2,354.88

3 Abraham K. Gyasi Retirement 12-03-17 1 997.61 997.61

4 Vida Appiah Retirement 13-06-17 1 638.05 638.05

5 SeiduZubbah Retirement 08-04-18 6 1,145.32 6,871.92

6 Emma Ekue Deceased 10-06-18 1 1,035.14 1,035.14

7 Ben Neequaye Vacated Post 13-04-18 4 1,425.93 5,703.72

8 Patrick Agordjor Interdiction 08-06-18 1 934.00 934.00

9

Federica Mensah

Davies Interdiction 09-06-18 1 934.00 934.00

Total 20,732.47

2525. The above condition resulted from failure of the Human

Resource Unit to notify the Controller & Accountant-General and the

Banks of the ex-staff members to stop payment of their salary.

2526. Consequently, a total amount of GH¢20,732.47 have been

lost to the state, by way of unearned salaries to the ex-staff members

involved.

2527. We urged Management to take necessary steps to retrieve the

above stated amount from the ex-staff members involved and inform


2528. Management responded that it has directed the Human

Resource Department of the Authority to invite all those concerned

or their relatives in the case of the dead for a meeting calculated to

retrieve the said money as early as practicable for our verification.

Fuel Purchased Not Logged nor Registered - GH¢148,453.50

2529. Regulation 1604 of the Ministry of Finance Stores

Regulations, 1984, requires that a vehicle log book shall be



maintained for each vehicle and shall always be carried on the

vehicle. Journeys undertaken shall be recorded and full particulars

of receipts of fuel and lubricants shall be entered in the log book by

the driver. Recordings in the log book shall be made in duplicate.

All journeys recorded in the log book shall be certified by the officer

using it.

2530. We noted that fuel purchased from filling stations amounting

to GH¢75,853.50 were not recorded in any log book by the Transport

Unit. We also noted that fuel coupons purchased amounting to

GH¢72,600.00 were also not registered in the Coupons’ Register.

Details are stated in table 279

Table 279: Fuel Purchased Not Logged nor Registered

A/C 4

Date PV No Chq No.

Amount

GH¢

Payee/Veh

No. Purpose

9/1/2017 1-Jan 729964 1,610.00 Chief Acct Fuel purchased


10/1/2018 6-Jan 730177 4,026.00 Chief Acct Ref of fuel to Head of Adm, HR & PRO

24/4/18 - 730224 1,500.00 Chief Acct Fuel Purchased from Adm Exp


17//1/17 1-Aug 729967 2,300.00 Chief Acct

25/10/17 4-Oct 730073 2,085.00 Chief Acct

Fuel Purchased from

Adm Exp

Hawkers A/C

Fuel Purchased from Adm Exp

29/11/17 - Cash 856.50 Chief Acct Fuel Purchased from Adm Exp

30/1/17 - Cash 1,000.00 Chief Acct Fuel Purchased from Adm Exp

14/3/17 - Cash 735.00 Chief Acct Fuel Purchased from Adm Exp

PFM A/C

- 1-Jan 922419 2,100.00 Chief Acct Fuel Purchased from Adm Exp

- 2-Jan 922420 860 Chief Acct Fuel Purchased from Adm Exp



30/1/17 19/1 922447 1,680.00 Chief Acct Fuel Purchased from Adm Exp

3/4/2017 3-Apr Cash 1,540.00 Chief Acct Fuel Purchased from Adm Exp

12/5/2017 1-May Cash 1,200.00 Chief Acct

Fuel purchased for Oly vrs Kotoko Match on 6/5/17

2/5/2017 2-May Cash 1,200.00 Chief Acct Purchase of fuel for generator

10/5/2017 4-May Cash 1,635.00 Chief Acct Fuel Purchased from Adm Exp

31/5/17 5-May Cash 1,435.00 Chief Acct Fuel Purchased from Adm Exp

14/4/17 4-Apr Cash 1,189.00 Chief Acct Fuel Purchased from Adm Exp

10/2/2017 1-Jul 922450 1,200.00 Chief Acct Fuel Purchased from Adm Exp

21/7/17 12-Jul 922463 1,039.00 Chief Acct Fuel Purchased from Adm Exp

18/10/17 2-Oct 922485 720.00 Chief Acct Fuel Purchased from Adm Exp

31/5/17 8-May Cash 1,200.00 Chief Acct Purchase of fuel for generator

18/5/17 10-May Cash 1,880.00 Chief Acct

Fuel Purchased from Adm Exp

6/6/2017 2-Jun Cash 1,200.00 Chief Acct Fuel purchased for generator

15/6/17 6-Jun Cash 1,449.00 Chief Acct Fuel purch from Adm exp

15/6/17 7-Jun Cash 1,000.00 Chief Acct Fuel purchased

20/6/17 10-Jun Cash 1,000.00 Chief Acct Fuel Purchased

11/7/2017 1-Jul Cash 1,030.00 Chief Acct Fuel Purchased

19/7/17 6-Jul Cash 1,450.00 Chief Acct Fuel Purchased

5/7/2017 10-Jul Cash 1,200.00 Chief Acct

A/C – 4



22/2/18 18/2 491760 1.075.00 Chief Acct Fuel Purchased from Adm Exp



1/2/2017 4-Feb 922447 1,680 Chief Acct Fuel Purchased from Adm Exp



10/7/2017 1-Jul 922450 1,600.00 Christiana Ashley Fuel not logged

A/C 2

20/6/17 54/7 478 1,370.00 Chief Acct Cost of fuel

12/6/2017 48/7 5030 1,050.00 Chief Acct Cost of fuel

2/8/2017 5029 1,385.00 Chief Acct Cost of fuel

26/7/17 - 5019 975.00 Chief Acct Cost of fuel

9/8/2017 6-Aug 5047 1,640.00 Chief Acct Cost of fuel

A/C 5

20/3/17 35/3 Cash 11,900 Chief Acct Cost of fuel for generator

Total 75,853.50

Table 279a: Fuel Coupon Purchased Not Registered Nor Accounted For

HAWKERS - A/C

Date PV No. Chq. No.

Amount GH¢ Payee

Serial No. Remarks

6/9/2017 - Cash 5,000.00 Chief Acct - No Inv. & Rcpt from GOIL

PFM A/C

5/1/2017 4-Jan 922422 1,000.00 GOIL - No Invoice & Receipt from Goil

30/1/17 19/1 922439 5,000.00 GOIL - No Inv. & Rcpt from GOIL

24/10/17 922450 1,600.00 GOIL -

No Inv. & Rcpt

from GOIL

A/C 2

27/6/17 480 20,000.00 GOIL - Proforma Inv

21/6/17 426 18,000.00 GOIL - No Inv. & Rcpt from GOIL

A/C 5

14/3/17 11-Mar Cash 2,000.00

A/C 4

28/8/17 308927 - 20,000.00

Total 72,600.00

2531. The irregularity above resulted from failure on the part of the

Ag. Chief Accountant to ensure proper control on fuel purchased by

the Authority.

2532. Failure to log fuel purchased nor register fuel coupons

purchased could result in misappropriation of funds, since the



receipts obtained from filling station attendants could not be relied

upon as evidence of fuel purchased.

2533. We advised Management to ensure that the above amount of

fuel purchased by the authority is properly accounted for, for

verification. Furthermore, fuel issued to drivers for official vehicles

and the generator, should be recorded in log books and the mileage

computed to ensure accountability and effective use of fuel by the

Authority.

2534. Management responded that staff of the Accounts

Department has been tasked to make entries of fuel coupons

purchased and how it is utilised. Log books have been procured for

the Transport Officer for immediate use.

Official Vehicles Taken Over by Creditors - GH¢23,531.25

2535. We noted that the Authoritie’s official Tata bus with

registration No. GV70–14 and a Toyota Hilux Pick Up with

registration No. GV112-14 assigned to Headquarters and Tamale

Regional Sports Office respectively, were taken by creditors through

court orders for non-settlement of debts owed by the Authority.

2536. The team did not sight any document for the details of the

case involving the Tata Bus. In the case of the Toyota Hilux Pick Up,

available documents showed that, the action was in relation to an

official vehicle travelling from Accra to Tamale which broke down

around Buipe. Mr Musah Abdulai, the then Chief Administrative

Officer sought assistance from the then Northern Regional Sports

Director, Mr John Bosco Abase to help get a mechanic to work on

the vehicle.

2537. Mr. Mohammed Alhassan of Mohammed Auto Works was

then tasked to work on the broken-down vehicle. Upon completion



of the work, payment for the service from Headquarters became a

challenge.

2538. According to the records, Mr. Mohammed made several

attempts including travelling to Accra to meet officials of the

Authority’s Head Office to retrieve his money but to no avail. He

then took the matter to court and it was ruled in his favor to recover

a total of GH¢23,531.25 from the Authority. The breakdown is

shown in table 280.

Table 280: Official Vehicles Taken Over by Creditors

No. Details Amount

GH¢

1 Principal sum 11,750.00

2 Interest on Ghc11,750 @ 30% from 30/9/15 to

30/8/18 (35 months)

10,281.25

3 Cost 1,500.00

Total 23,531.25

2539. Failure to pay the above stated amount by the Authority

resulted in impounding the only official vehicle for the Tamale office,

Toyota Hilux Pick-Up No. GV112 –14 on 13/11/18. This has

affected the official movement and also increasing transportation

cost for the Tamale Office.

2540. We blamed Management of the Authority for not addressing

the issue by then, which eventually doubled the initial cost from

GH¢11,750.00 to GH¢23,531.25 and consequently leading to the

loss of the vehicle.

2541. We advised Management to take immediate action to resolve

future issues of such nature in order to avoid further loss of the

Authority’s assets.

2542. Management responded that the Authority lost the case in

court and the vehicle confiscated. The plaintiff has been invited for



a discussion to settle the case amicably by paying the bills and

repossession of the vehicle.

Official vehicles abandoned at vorkshops 2543. Regulation 1520 of Store Regulations 1984 states that in the

event of any defect or breakdown of official vehicles, an immediate

report shall be made to an officer authorised by the Head of

Department to receive such reports, and he shall be responsible for

making arrangements for its early repairs.

2544. Our inspection of the Authorities vehicles disclosed that 5 out

of 10 official vehicles were abandoned at private workshops for

periods ranging from 10 months to 5 years, contrary to the

Regulation above. Details are shown in table 281.

Total 281: Official vehicles abandoned at workshops

Reg No. Vehicle Make

Location Date Sent Duration Remarks

GV 78-14 Nissan Patrol 37 Workshop

March 2018

11 months Body Works, Suspension/Uphosery

GV 110-14 Toyota Hilux Pick Up

Dornyo W’shopOsu

2016 2 years Accident

GE 4910-10 Tata Pick Up 37 Workshop

2013 5 years Engine Problem

GE 4912-10 Tata Pick Up H/Q 2013 5 years Accident

GV 69-14 Tata 33-

Seater Bus

H/Q April 2018 10 mths Servicing

GE 3451-X Yamaha Motor Bike

Odorna Workshop

2545. The transport officer intimated that insufficient budgetary

allocation coupled with financial challenges being faced by the

Authority resulted in the above situation.

2546. The Authority could lose some vital parts of these vehicles

which are still serviceable, through thievery by workshop

attendants, leading to increase in cost of repairs.



2547. We recommended to Management to seek funding from the

Ministry to repair the serviceable ones to avoid further deterioration.

Again, steps should be taken to seek approval to dispose of those

that would be found unserviceable.

2548. Management responded that the recommendation to seek

funding from the Ministry is well noted. The Director-General has

already contacted the Ministry for financial assistance to repair the

Land cruiser after assessing it.

2549. They further stated that the other vehicles were being

assessed by a committee set up by the Authority to determine those

that can be repaired and those to recommend for disposal.

2550. In addition, the committee has been tasked to bring all

vehicles back to the premises.



MINISTRY OF EMPLOYMENT AND LABOUR RELATIONS

SOCIAL SECURITY AND NATIONAL INSURANCE TRUST (SSNIT)

Introduction 2551. This report covers the audited accounts of the Social Security

and National Insurance Trust (SSNIT) for the year ended 31

December 2018.

Operational results

2552. SSNIT recorded a deficit of GH¢442million in 2018 financial

year as compared to a surplus of GH¢131million registered in 2017.

This represent a 436.4% decrease in the Trust’s financial

performance over the period. The details of the operational result


Table 282: Statement of Changes in net assets available for benefits

for the year ended 31 December 2018

Income 2018

GH¢ 000

2017

GH¢ 000

Change

GH¢ 000

%

Change

Contributions Received

2,719,515 2,374,229 345,286 14.5

Net investment

income 435,960 405,980 29,980 7.4

Other income 41,014 421,995 (380,981) -90.3

Total Operating

Income 3,196,489 3,202,204 (5,717) -0.2

Expenditure -

Direct Cost and

Expense

Operational Cost 195,463 185,910 9,553 5.1

Benefits 2,495,447 2,189,475 305,972 14.0

Total Direct Cost and Expense

2,690,910 2,375,385 315,525 13.3



Surplus of income

over direct Cost 505,579 826,819 (321,240.00) -38.9

Administrative

Expenses 289,045 261,523.00 27,522.00 10.5

Credit loss Expense 153,446 153,446.00 100

Transfer to

National Health Insurance Scheme

506,022 433,643.00 72,379.00 16.7

Net Surplus/

(Deficit) (442,934.00) 131,653.00 (574,587.00) -436.4

2553. Total Operating Income decreased by 0.2% from GH¢3,202

million in 2017 to GH¢3,196 million in 2018. The fall in income was

largely due to 90.3% decrease in other incomes following a

substantial decrease in Penalty paid on Delayed Contribution among

others. Contributions Received and Net Investment income however

increased by 14.5% and 7.4% respectively.

2554. Direct Cost also increased by GH¢315 million, from GH¢2,375

million in 2017 to GH¢2,690 million in 2018 representing a 13.3%

rise. The rise is as a result of an increase in Benefit payment by 14%

from GH¢2189 million in 2017 to GH¢2495 million in 2018.

2555. Operational Cost also increased marginally by 5.1% resulting

in a decrease of Surplus of Income over Direct Cost by 38.9% from

GH¢826million in 2017 to GH¢505 million 2018.

Administrative Expense and Transfer to National Health Insurance

Scheme (NHIS) also increased by 10.5% and 16.7% respectively. The

increase in the transfer to NHIS is attributed to the 14.5% increase

in Contributions Received.

Financial position 2556. The Trust’s financial position as at 31 December 2018 is

shown in Table 283.



Table. 283: Statement of net assets available for benefit as at 31

December, 2018

Items 2018

GH¢000

2017

GH¢000

Change

GH¢000

%

Change

Non-Current Assets 8,408,549 8,626,015 (217,466) -2.5

Current Assets 852,444 1,557,678 (705,234) -45.3

Current Liabilities 447,999 350,422 97,577 27.8

Net Current Assets 404,445 1,207,256 (802,811) -66.5

Net Asset 8,812,994 9,833,271 (1,020,277) -10.4


2557. Non-Current Assets decreased by GH¢215 million from

GH¢8,626 million in 2017 to GH¢8,408 million in 2018,

representing a 2.5% fall. The decrease in Non-Current Assets was

mainly due to a GH¢1million value of assets disposed and

depreciation and amortization charges for the financial year.

2558. The Current Assets decreased significantly by 43.5% from

GH¢1,157 million in 2017 to GH¢852 million in 2018. This was as

a result of decrease in prepayment and advances and Cash and

Bank balances by 14.9% and 11.2% respectively.

2559. The Trust’s liquidity ratio (Current ratio) decreased from

4.45:1 2017 to 1.90:1 in 2018. This indicates that the Trust Liquidity

position has worsen, although, it can still meet its short-term

obligations as and when they fall due.

MANAGEMENT ISSUES

Failure to transfer SSNIT contribution by CAGD-GH¢1.26Billion

2560. Section (3) of the National Pension Act, 2008, Act 766 states

that out of the total contribution of eighteen and a half per centum

(18.5%) an employer shall within fourteen days from the end of each

month transfer the following remittances to the mandatory schemes

on behalf of each worker (a) thirteen and half per centum (13.5%) to



the first tier mandatory basic national social security scheme; and

(b) five per centum (5%) to the second tier mandatory occupational

pension scheme.

2561. Section 64. (1a) of Act 766 provides that in case of default, a

sum equal to three per centum per month of the contribution

payable shall be added to the contribution due as a penalty.

2562. Our review of Social Security Fund (SSF) Contributions in

respect of employee deduction of 5.0% together with employers’

contribution of 13.5% for 2016 amounting to GH¢491,527,717.88

had not been remitted to the trust by the Controller and Accountant

General Department (CAGD) as at the time of our audit in

Augst2019.

2563. We also noted that out of the total bill of

GH¢2,492,656,064.01 submitted by SSNIT, CAGD paid only

GH¢1,719,627,683.40, leaving a balance of GH¢1,264,556,098.49

as at 31/12/2018. We further noted that Management did not

charge the default penalty of 3% on the delayed contribution paid.

Table 284 provide the details.

Table 284: Details of outstanding contribution due from CAGD

BILLS (GH¢) DATE OF PAYMENT

CONTRIBUTIONS RECEIVED

(GH¢)

CONTRIBUTIONS DUE (GH¢)

Balance From 2016 491,527,717.88

2017

January 93,055,516.15 11-Apr-17 90,317,602.96 2,737,913.19

February 93,135,333.55 11-Apr-17 9,682,397.04 83,452,936.51

March - 14-May-17 81,707,577.97 (81,707,577.97)

March 93,425,147.34 31-May-17 93,057,167.56 367,979.78

April 99,282,617.81 31-May-17 95,540,999.49 3,741,618.32

May 101,784,869.38 17-Jul-17 99,996,680.99 1,788,188.39

June 100,262,814.42 8-Aug-17 102,908,589.95 (2,645,775.53)

July 91,387,774.78 29-Sep-17 91,140,496.42 247,278.36

August 92,355,697.47 2-Nov-17 50,000,000.00 42,355,697.47

13-Nov-17 42,079,270.80 (42,079,270.80)



September 96,195,774.97 12-Jan-18 95,527,897.82 667,877.15

October 94,618,455.17 5-Feb-18 93,656,962.97 961,492.20

November 99,596,139.61 5-Mar-18 99,205,896.11 390,243.50

December 97,702,495.49 4-Apr-18 97,126,197.12 576,298.37

2018

January 106,111,196.62 4-Jun-18 105,868,937.11 242,259.51

February 110,373,452.13 11-Jul-18 109,692,190.44 681,261.69

March 115,944,613.76 17-Sep-18 50,000,000.00 65,944,613.76

March 28-Sep-18 62,118,818.65 (62,118,818.65)

April 109,474,960.48 19-Oct-18 50,000,000.00 59,474,960.48

May 109,157,495.26 21-Nov-18 100,000,000.00 9,157,495.26

June 107,541,513.00 1-Feb-19 100,000,000.00 7,541,513.00

July 110,524,308.82 110,524,308.82

August 114,455,250.12 114,455,250.12

September 121,979,373.68 121,979,373.68

October 110,655,755.68 110,655,755.68

November 111,099,984.79 111,099,984.79

December 112,535,523.53 112,535,523.53

Total 2,492,656,064.01 1,719,627,683.40 1,264,556,098.49

2564. Failure to remit the contribution to the Trust could result in

the following:

Non-investment of the First Tier of workers contribution on

time to ensure value for money.

Non-transfer of the Second Tier to National Pension

Regulatory Authority (NPRA) for onward transfers to the

Trustees for timely investment.

Non-transfer of 2.5% National Health Insurance Levy to the

Scheme to enable timely transfer to the Services providers in

order to ensure delivery of quality health services.



The Trust’s ability to pay pension on time may be hampered,

and thereby pose a threat to retirement income security to

workers.

2565. We recommended to Management to enforce Section 64 of Act

766 to recover all outstanding balances of SSF contributions to

ensure retirement income security for workers.

2566. Management Responded that “SSNIT Management over the

past two years has engaged, and continue to engage, the Controller

and Accountant General’s Department (CAGD)/Ministry of Finance

for the settlement of the outstanding contributions. SSNIT has held

series of meetings and sent a number of correspondences to CAGD,

with copies to Ministry of Finance, and NPRA in respect of the

outstanding contributions. These discussions resulted in the

payment of GH¢430 million of the outstanding debt and a tradable

bond of GH¢235 million as at June, 2019. Therefore, total payment

received is GH¢665.48 million. Efforts are being made by

Management of SSNIT to get CAGD to pay up their outstanding debt.

We attach some correspondences and Demand Notices to CAGD in

support of our efforts made to retrieve the contribution arrears.

SSNIT applies 91-day Treasury Bill rate to outstanding contribution

from CAGD instead of the 3% penalty rate under the Act 766 as

stated in your audit observation. Going forward, we will charge the

3% penalty prescribed by the Act.”

Failure by Agent Banks to transfer Direct Payment of 1st Tier

on Due date to BoG-GH¢26.3 Million

2567. The Trust entered into an agreement titled SSNIT Pension

Contribution Collection Services Agreement with 21 banks to receive

the 1st Tier and 2nd Tier contributions of workers on the Trusts’



behalf for onward transfer into a designated account at the Bank of

Ghana.

2568. Paragraph 3.1.2 of the agreement states that, the transfer of

all cash received and cleared cheques on behalf of SSNIT between

Mondays to Thursday of any week shall be transferred to the

designated account on the first working day of the ensuing week.

2569. In contravention of the agreement, our review of the Bank

statements disclosed that 9 Agent Banks had not remitted to the

designated 1st tier account at Bank of Ghana, a total of

GH¢9,229,885.89 and GH¢17,101,228.90 as at the end of the

financial years 2017 and 2018 respectively. Details are shown in

table 285.

Table 285: Delayed Transfers by Agent Banks

BANK 2017 GH¢

2018 GH¢

ADB 4,897,163.20 3,112,247.13

GCB 26,554.54 2,385,863.13

HFC 16,805.76

SCB 55,390.93 6,672,592.97

CAL 376,164.47 2,251,607.85

FIRST ATLANTIC 45,135.47 61,931.13

STANBIC 2,462,781.14 1,129,842.78

ACCESS 441,403.68 198,625.91

FIDELITY 908,486.70 1,288,518

TOTAL 9,229,885.89 17,101,228.90

2570. The anomaly persisted because of the laxity of Management

to enforce the provisions in the Agreement.

2571. We recommended that Management should ensure the banks

transfer the outstanding balances to SSNIT Account at BOG without

further delay.



2572. Management stated that “The balances were duly transferred

but at the end of the month. Management have therefore, accepted

your recommendation and have started taking measures to ensure

prompt transfers of Contribution collected henceforth”

Failure to charge penalty on non-transfer of collections by

Agent Banks-GH¢7 million 2573. The Trust entered into an agreement titled SSNIT Pension

Contribution Collection Services Agreement- with 21 banks to

receive the 1st Tier and 2nd Tier contributions of workers on the

Trusts’ behalf for onward transfer into a designated account at the

Bank of Ghana.

2574. Paragraph 4.0 of the agreement states that, a monthly penalty

of three percent (3%) shall be imposed on any amount due the client

but held beyond the agreed duration herein as stated in clause 3.1.2

by the Service Provider and such monthly penalty shall continue

until sums due are received by the client.

2575. On the contrary, Management did not impose the monthly

penalty of 3% totalling GH¢7,242,437.12 on the delayed transfers of

the affected Agent Banks for the 2017 and 2018 financial years.

Details of the penalty are shown in table 286.

Table 286: Delays by Agent Banks to Transfer Direct Payment to BOG

Bank 2018 GH¢

2017 GH¢

ADB 4,897,163.20 3,112,247.13

GCB 26,554.54 2385863.13

HFC 16,805.76

SCB 55,390.93 6,672,592.97

CAL 376,164.47 2,251,607.85

FIRST ATLANTIC 45,135.47 61,931.13

STANBIC 2,462,781.14 1,129,842.78



ACCESS 441,403.68 198,625.91

FIDELITY 908,486.70 1,288,518

Total 9,229,885.89 17,101,228.90

2576. The anomaly was caused by the failure of the Trust to impose

the 3% penalty clause in the agreement.

2577. Management not enforcing the Penalty clause of the

agreement could encourage the banks to delay the transfer of

collections to SSNIT, thereby reducing funds available for

investments.

2578. We recommended to Management to enforce the penalty

clause in the agreement on the banks who are not complying with

the terms of the agreement. We also recommended to Management

to recover the outstanding balance with interest at the prevailing

Bank of Ghana Interest Rate from the affected banks and inform our

office for verification, failing which the agency arrangement with the

affected banks should be terminated.

2579. Management responded that “Penalty on delayed transfers

have been duly computed and forwarded to the Banks for payment.

The total amounts involved is GH¢7,242,437.12 making up of

GH¢2,901,044.46 and GH¢4,341,392.66 for years 2017 and 2018

respectively. Penalty on delay transfers computed are summarsed in

table 287.

Table 287: Penalty at 3% on delayed transfers computed

July -Dec 2017 GH¢

Jan-Dec 2018 GH¢

Total GH¢

ADB 237,067.22

353,198.22 590,265.44

FAB 74.30

364.51 438.81



FIDELITY 38,520.68 49,820.19

88,340.87

ACCESS 17,299.00

15,709.29 33,008.29

GCB 386.29

12,041.69 12,427.98

GT 3.80

33,356.97 33,360.78

SCB 120.95

319,095.73 319,216.68

REPUBLIC 125.18

- 125.18

STANBIC 47,298.60

183,540.54 230,839.15

UMB 1,141,321.02

420,008.56 1,561,329.58

UNIBANK 217,354.16

1,549,343.50 1,766,697.66

SG-SSB 1,578.43

42,319.80 43,898.23

ZENITH 1,127,195.39

469,006.04 1,596,201.43

UBA -

2.88

2.88

ECOBANK 72,699.44

766,642.56 839,342.00

CAL

-

126,942.18

126,942.18

TOTAL 2,901,044.46 4,341,392.66

7,242,437.12

2580. We urged Management to recover the amount involved.

Untimely Transfers of NHIL-GH¢521,682,904.54

2581. Section 63. (4) of the National Pension Act 2008, Act 766,

states that, out of the total contributions of thirteen and half per

centum (13.5%) received on behalf of each member, two and half per

centum (2.5%) shall be deducted and transferred to the National

Health Insurance Fund (NHIF).



2582. We noted that although Management of SSNIT transferred the

2.5% National Health Insurance Levy (NHIL) to the National Health

Insurance Authority, the transfers delayed for periods ranging

between 2 and 8 months as detailed in the table 288.

Table 288: Untimely Transfers of NHIL

Date Description Amount GH¢

Period of Delay

10-May-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/70 Item Description: PAYMENT OF NHIS CONTRIBUTIONS-PRIVATE AND GOVT SUBVENTED

28,885,312.37 8 MONTHS

18-May-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/71 Item Description: NHIS CONTRIBUTION FOR SEPTEMBER 2016

19,200,310.80 7 MONTHS

18-May-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/72 Item Description: NHIS CONTRIBUTION FOR OCTOBER 2016

21,512,905.78 6 MONTHS

18-May-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/73 Item Description: NHIS CONTRIBUTION FOR NOVEMBER 2016

19,835,539.43 5 MONTHS

18-May-17 4. Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/74 Item Description:

35,453,480.22 4 MONTHS



NHIS CONTRIBUTION FOR DECEMBER 2016

12-Jun-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/06/03 Item Description: 2.5% NHIS CONTRIBUTION JAN.2017

21,359,340.24 4 MONTHS

19-Jun-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY

Invoice Number: SS/FA/06/04 Item Description: 2.5% NHIS CONTRIBUTION FEB.2017

20,884,875.17 3 MONTHS

19-Jun-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/06/05 Item Description: 2.5% NHIS CONTRIBUTION MARCH 2017

22,618,179.34 3 MONTHS

19-Jun-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/06/06 Item Description: 2.5% NHIS CONTRIBUTION APRIL 2017

39,852,354.51 2 months

29-Aug-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/08/03 Item Description: 2.5% SOCIAL SECURITY CONTRIBUTIONS (MAY) 2017

26,574,255.84 2 MONTHS

29-Aug-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/08/04 Item Description: 2.5% SOCIAL SECURITY CONTRIBUTIONS (JUNE) 2017

40,072,507.96 2 MONTH

5-Oct-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/09/26 Item Description: PAYMENT OF 2.5% NHIS CONTRIBUTION FOR JULY, 2017

42,830,036.66 2 MONTHS



5-Oct-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY Invoice Number: SS/FA/10/26 Item Description: 2.5 % SOCIAL SECURITY CONTRIBUTIONS ON BEHALF OF WORKERS TO NHIS

68,136,852.32 5 DAYS

20-Dec-17 Supplier: NATIONAL HEALTH INSURANCE AUTHORITY

Invoice Number: SS/FA/11/56 Item Description: PAYMENT OF OCTOBER 2017 NHIS CONTRIBUTION

24,770,257.81 3 months

26/2/2018 BEING NHIS LEVY CONTRIBUTIONS FOR NOVEMBER 2017 ACCRUED

58,936,430.66 2 MONTHS

14-Mar-18 BEING NHIS LEVY CONTRIBUTIONS FOR DECEMBER 2017 ACCRUED

30,760,265.43 3 MONTHS

TOTAL 521,682,904.54

2583. Non-provision of time lines in the Act for transfer of the Levies

collected in our view resulted in the anomaly.

2584. The untimely transfer of the levies could impede the

Authority’s ability to timely disburse funds to the health service

providers of the Schemes.

2585. We recommended to Management to promptly transfer to

NHIA all Levies deducted. We also advised Management to sign a

memorandum of understanding with the Authority to agree on

specific dates of transfers.

2586. Management responded that “Under Section 63(4) of the

National Pensions Act, 2008 (Act 766) SSNIT is required to transfer

2.5% out of the 13.5% contributions received to the National Health



Insurance Fund. SSNIT also has the core mandate of paying monthly

pensions, which has been increasing over the period.

2587. The main sources of inflows to SSNIT are the contributions

from the Controller and Accountant General’s department on behalf

of Government workers and contributions from private

establishments. Unfortunately, transfers from the Controller and

Accountant General Department (CAGD) have not been regular for

some time. In the absence of regular receipts from the CAGD, the

Trust’s relies totally on its cash reserves and on the insufficient

private sector contributions to meet its statutory monthly

obligations. The default of monthly contributions by CAGD,

seriously impairs the Trust’s ability to meet its timely obligations to

the National Health Insurance Scheme.”

Avoidable Cost on the Purchases of HFC Shares-

GH¢875,522.15

2588. Regulation 39 (1) Financial Administration Regulations

requires a head of department to ensure that moneys are utilised in

a manner that secures optimum value for money.

2589. Social Security and National Insurance Trust (SSNIT) as at

January 2017 had total shares of 77,591,323 representing 26.1% of

shares of HFC holding.

2590. We noted that HFC Bank Limited on 30th November 2017

invited SSNIT to participate in a rights issue offer of 23,716,629 of

shares amounting to GH¢13,044,145.95 or to renounce its

entitlement.

2591. On 8th December 2017 the Portfolio Manager, Equities

(Akosua M. Nelson- Cofie) wrote a memo attached with an appraisal

report to inform the General Manager, Investment and Development



Division (IDD) and copied Deputy Director General (DDG)-IDD on

the HFC Bank Limited Renounceable Rights Issue that commenced

on December 4, 2017 and expired on December 20, 2017. The

appraisal report recommended SSNIT to take up the 23,716,629

shares at the rights issue price of GH¢0.55.

2592. Also, the Deputy Director General-Investment and

Development in a letter dated December 19, 2017 addressed to HFC

Bank (Gh) Limited requested for an extension of the offer deadline

since SSNIT Board of Trustees meeting was scheduled for the 15th of

January 2018.

2593. Management agreed with Republic Financial Holdings

Limited the major shareholder of HFC Bank to buy back the

Subscription Shares.

2594. The Board at its 310th meeting held on 23rd January 2018

approved Management’s recommendation to take up its rights under

the rights issue by subscribing to purchase 23,716,629 shares at a

price of GH¢0.55 per share.

2595. Our review of the HFC rights issue offer disclosed the

following;

Management did not inform the Board of the cost

implementation for not holding an emergency meeting to take a

decision to participate in the rights offer.

The Trust received 22,860,423 shares from Republic Financial

Holdings Limited instead of 23,716,629 shares it was entitled to

under the rights issue offer. This has resulted in a loss of

856,206 shares valued at GH¢470,913.30 for not taking the

opportunity to participate in the rights issue offer before the end

of the offer.



The Trust incurred extra cost amounting to GH¢875,522.15 on

the 22,860,423 shares for failing to take a decision to participate

in the rights offer before the 20th of December 2017 deadline.

Table 289 shows the breakdown of the extra cost incurred by the

Trust.

Table 289: Avoidable cost on the purchases of HFC Shares

DETAILS GH¢

Commission and fees – HFC Brokerage (Sell side) 176,025.26

Commission and fees – NTHC Brokerage (Buy side) 176,025.26

Financing Cost 154,022.10

Bank Transfer Cost 62,866.14

Legal Fees 23,782.00

Exchange Rate Difference 282,801.40

Total 875,522.16

2596. The Board’s inability to meet to take decision to participate in

the rights offer before the end of the offer resulted in the anomaly.

2597. The delay in the decision made the Trust to lose

GH¢875,522.16 which could have been invested to yield returns.

Also, the Trust’s shares in HFC Bank (Gh) Limited has been diluted

since after the sale and purchase with Republic Financial Holdings

Limited, the Trust has lost 856,206 shares in the Bank as well as

the right to future dividend over them.

2598. We recommended that Management and the Board must be

proactive in its decision-making processes by taking into

consideration deadlines to prevent the Trust from loss of funds.

2599. Management responded that “The audit memo states that,

“On the 8th of December, 2017, the Portfolio Manager, Equities

wrote a memo attached with an appraisal report to inform the

General Manager, (IDD) and copied DDG Investments on the HFC

Bank Renounceable Right Issue…”. It assumes that the memo was



final and received on the date indicated. From the records, that

memo was received by both the GM-IDD and DDG-IDD on 11th

December, 2017. It must be clarified that, the reference attached

appraisal report was the very first draft. Such reports to the Board

go through a series of reviews and amendments before they get

finalised. These reviews could include remodelling the finances of

the company and changes in the assumptions underpinning the

model. It is worth noting that the 8th December dated draft did not

even have forecasts whereas the final report that went to the Board

did.

2600. Our records indicate that the rights issue offer letter dated

30th November, 2017, that came with the prospectus of the offer was

received by our Equities Department from then HFC Banks Limited

(HFC) on 8th December, 2017. The offer period was indicated in the

letter as December 04, 2017, to December 20, 2017. Thus, the

commencement date of the offer preceded the date of receipt of the

offer letter and the prospectus. The Equities Department started

work on the same date it received the prospectus, knowing the

urgency of the transaction. The first draft was prepared and

submitted by the department on 11th December, 2017.

2601. Legal and financial due diligence, and due diligence on the

bank and its major shareholders, had not been done then. Guided

by what had been happening in the Trust in the past, Management

needed to ensure all the due diligence had been done and satisfied

itself with the outcomes before submitting a request to the board for

consideration. This was not possible within the short time available

for the closure of the offer. Meanwhile, from a preliminary

cost/benefit analysis that was done, it had been found to be

financially prudent that the Trust is not heavily diluted through that

rights issue due to the heavy discount on the offer price.



2602. Given the extent of the due diligence required, the deadline,

and the fact that the Trust did not want to be diluted and lose the

potential gain from the heavily discounted offer price, the Trust

therefore made an arrangement with the Republic Bank Holdings

Limited (Republic), the majority shareholder of HFC, to buy and hold

for the Trust, the amount of shares Republic would be able to

acquire in the market for SSNIT to retain its shares in HFC.

2603. On the issue of acquiring a smaller number of shares that the

Trust was entitled to under the rights issue, it is explained by the

fact that, once the rights issue period had elapsed, the shares were

offered to the public per the rules of the Securities and Exchange

Commission. Republic therefore, purchased the balance that was

available to hold for the Trust. Republic could not have purchased

more shares that it was entitled to under the rights issue before the

expiration of the period. All the relevant approvals needed were

sought and obtained from the relevant regulatory authorities.

2604. The cost incurred for the transaction, which was 6.96%, of

the transaction value should be considered in the context of the

rights issue price of GH¢0.55, the share price at the time of GH¢1.39

and our estimated intrinsic value of GH¢1.20 representing an upside

of 152.73% or 118.18% respectively. The potential net gain of

145.77% or 111.22% respectively, which justified making the

investment was therefore, significant. This was outlined in the report

to the Board.”

Delays in the recovery of rent income from Property Managers-GH¢5.6Millioon

2605. Management of SSNIT signed an agreement with Broll Ghana

Limited to manage 7 number properties for the Trust. For a fee of

10.0% gross monthly collection.



2606. Paragraph 4.3.1 of the Property Management Agreement

between SSNIT and Broll Ghana Limited states that, Broll Ghana

Ltd shall collect rent and other charges, including operating

expenses, due by the Tenants and promptly follow up on late

payments.

2607. We noted from our review of ledgers that, Broll Ghana Limited

has not recovered a total of GH¢5,590,115.15 as rent owings from

114 tenants who have vacated the properties during the periods

under review as shown in table 290.

Table 290: Delays in the recovery of rent income from Property

Managers

Facility No. of Tenants Balances as at 31st December, 2018

GH¢

WTC 13 1,884,781.28

Takoradi Office Complex 19 202,783.13

Ridge Tower 11 531,456.52

Premier Tower 31 1,621,358.72

Okofo House 1 87,885.00

Heritage Tower 38 1,237,995.40

North Industrial Area Property 1 23,855.10

Total 114 5,590,115.15

Details of Tenant is shown in table 290b

Column1_ Debtor Debtor_Code Rent Owings (GH¢)

Building Name

1 INTERCOM DATA NETWORKS

GHWTCAINDNET 627,655.55 WORLD TRADE CENTRE

2 GHANA GULF COOPERATION CHAMBER OF COMMER

GHWTCAGHGCCC 403,200.00 WORLD TRADE CENTRE

3 GREENVIEW

INTERNATIONAL COMPANY LIMITED

GHWTCAGREENV 289,800.00 WORLD TRADE

CENTRE

4 HOPE CITY LIMITED GHWTCAHOPCIT 151,200.00 WORLD TRADE

CENTRE

5 CEDDEX W.A LIMITED GHWTCACEDDEX 119,970.25 WORLD TRADE CENTRE

6 MILLICOM GHANA LIMITED

GHWTCAMILCOM 63,000.00 WORLD TRADE CENTRE



7 INTERCOM DATA

NETWORKS

GHWTCAIDNE-U 61,390.86 WORLD TRADE

CENTRE

8 DEVERE INVESTMENT SOUTH AFRICA (PTY)

LTD

GHWTCADEVERE 47,250.00 WORLD TRADE CENTRE

9 CEDDEX W.A LIMITED GHWTCACEDD-U 41,437.06 WORLD TRADE CENTRE

10 LUKOIL OVERSEAS GHANA LIMITED

GHWTCALUKOIL 40,425.58 WORLD TRADE CENTRE

11 AFRI-MAHS GHANA

LIMITED

GHWTCAAFRIMA 21,525.00 WORLD TRADE

CENTRE

12 LUKOIL OVERSEAS GHANA LIMITED

GHWTCALUKO-U 12,611.29 WORLD TRADE CENTRE

13 DEVERE INVESTMENT SOUTH AFRICA (PTY) LTD

GHWTCADEVE-U 5,315.69 WORLD TRADE CENTRE

14 CONSUMER CREDIT LTD

GHTAKOCONSUM 72,528.97 TAKORADI OFFICE COMPLEX

15 AB & DAVID LAW GHTAKOAB&DAV 20,745.52 TAKORADI OFFICE COMPLEX

16 COASTAL NETWORK

COMPANY

GHTAKOCOASTA 18,825.25 TAKORADI

OFFICE COMPLEX

17 MANAGED

HEALTHCARE COMPANY

GHTAKOMANAGE 18,599.53 TAKORADI

OFFICE COMPLEX

18 ARB APEX BANK GHTAKOARAPEX 17,723.27 TAKORADI

OFFICE COMPLEX

19 UNIGLOBE M & J GHTAKOUNIGLO 13,182.77 TAKORADI

OFFICE COMPLEX

20 ARB APEX BANK GHTAKOAPEX-U 10,110.59 TAKORADI OFFICE

COMPLEX

21 EXPRESS FUND INTERNATIONAL

GHTAKOEXFUND 7,931.41 TAKORADI OFFICE

COMPLEX

22 NIIT EDUCATION & TRAINING INSTITUTE

GHTAKONIIT-U 6,733.55 TAKORADI OFFICE

COMPLEX

23 HOPE SPRING FOUNDATION

GHTAKOHOPESP 4,817.31 TAKORADI OFFICE COMPLEX

24 AB&David Law GHTAKOAB&D-U 2,861.30 TAKORADI OFFICE COMPLEX

25 NIIT EDUCATION & TRAINING INSTITUTE

GHTAKONIITED 2,612.54 TAKORADI OFFICE COMPLEX

26 EXPRESS FUND INTERNATIONAL

GHTAKOEXPR-U 2,505.26 TAKORADI OFFICE COMPLEX



27 GHANA EXPORT

PROMPTION COMPANY

GHTAKOGHEXPO 1,215.44 TAKORADI

OFFICE COMPLEX

28 MANAGED

HEALTHCARE COMPANY

GHTAKOMAHC-U 1,008.42 TAKORADI

OFFICE COMPLEX

29 SARAGO LTD GHTAKOSARAGO 581.59 TAKORADI OFFICE

COMPLEX

30 ZORMELO & ASSOCIATES

GHTAKOZORMEL 405.4 TAKORADI OFFICE

COMPLEX

31 TV3 NETWORK GHTAKOTV3NET 346.67 TAKORADI OFFICE

COMPLEX

32 RESOLUTE AMANSIE MINING COMPANY

GHTAKOAMANSI 48.34 TAKORADI OFFICE

COMPLEX

33 SCANCOM GHANA LIMITED-UTILITIES

GHRIDGSCAN-U 286,968.98 RIDGE TOWER

34 SCANCOM GHANA LTD GHRIDGSCANCO 89,063.25 RIDGE TOWER

35 CLYDESTONE GHANA LTD

GHRIDGCLYDES 61,493.90 RIDGE TOWER

36 MOMENTUM GHANA LTD

GHRIDGMOMENT 17,233.10 RIDGE TOWER

37 EXPORT DEVELOPMENT

&INVESTMENT FUND

GHRIDGEDIFGH 10,920.24 RIDGE TOWER

38 HFC BANK GHRIDGHOMEFI 9,098.21 RIDGE TOWER

39 METROPOLITAN

INSURANCE CONPANY

GHRIDGMETLIF 8,866.01 RIDGE TOWER

40 BULKSHIP TRADING GHRIDGBULKSH 6,303.90 RIDGE TOWER

41 BARCLAYS BANK GHANA LTD

GHRIDGBARCLA 3,964.93 RIDGE TOWER

42 BULKSHIP & TRADE LIMITED-UTILITIES

GHRIDGBULK-U 412.35 RIDGE TOWER

43 EMERGE CONSULT GHRIDGEMERGE 37,131.65 RIDGE TOWER

44 GALILOO GHANA LTD GHPREMGALILO 5,434.58 PREMIER

TOWER

45 GALILOO GHANA LTD GHPREMMONSYS 300 PREMIER TOWER

46 GLOBAL NS COMPANY LTD

GHPREMGLONS1 104,125.31 PREMIER TOWER

47 THE CANDELA GROUP GHPREMCANDEL 103,580.30 PREMIER

TOWER

48 INTERNATIONAL MONETARY FUND

GHPREMINTMON 56,814.53 PREMIER TOWER

49 CHINA GEO -ENGINEERING

GHPREMCHINAG 52,203.14 PREMIER TOWER

50 WEST AFRICAN

MONETARY INST.

GHPREMWAMI.. 43,459.20 PREMIER

TOWER

51 GC NET GHPREMGCNET. 38,284.41 PREMIER TOWER



52 RG RESOURCES

LIMITED

GHPREMRGRE-T 33,123.36 PREMIER

TOWER

53 GHANA COMMU NETWORKS LTD-

UTILITIES

GHPREMGNET-U 27,160.79 PREMIER TOWER

54 CHINA-GEO ENGINEERING-UTILITIES

GHPREMCGEO-U 10,448.19 PREMIER TOWER

55 GHANA COMMUNITY NETWORK SERVICES LIMITED

GHPREMGCNET6 9,806.88 PREMIER TOWER

56 PEN TRUST LIMITED GHPREMPENTRU 7,207.89 PREMIER TOWER

57 PEN TRUST LIMITED-UTILITY

GHPREMPENT-U 1,872.81 PREMIER TOWER

58 GLOBAL NS CO LTD GHPREMGLON-U 1,614.49 PREMIER TOWER

59 INTERNATIONAL MONETATY FUND-UTILITIES

GHPREMITMF-U 1,459.41 PREMIER TOWER

60 ACS- BPS UTILITIES GHPREMACSB-U 632.09 PREMIER TOWER

61 CANDELA CAPITAL GROUP-UTILITIES

GHPREMCAND-U 606.77 PREMIER TOWER

62 GHANA INSTITUTE MGT & PUBLIC ADMIN.

GHPREMGIMPAB 107.16 PREMIER TOWER

63 BEDROCK VENTURE CAPITAL FINANCE CO.LTD

GHPREMBEDROC 68.63 PREMIER TOWER

64 GOOD GOVERNANCE

AFRICA

GHPREMGOGOAF 0.78 PREMIER

TOWER

65 CROWN AGENTS GHPREMCROWNA - PREMIER TOWER

66 KAAF UNIVERSITY COLLEGE

GHPREMKAAFUN 277,099.11 PREMIER TOWER

67 KAAF UNIVERSITY COLLEGE-UTILITIES

GHPREMKAAF-U 11,739.25 PREMIER TOWER

68 FAS CONSULT LIMITED-UTILITIES

GHPREMFASC-U 599.56 PREMIER TOWER

69 VENTURE CAPITAL-UTILITIES

GHPREMVENT-U 8,274.62 PREMIER TOWER

70 ARABIAN GULF OIL GHANA LIMITED

GHPREMAGOLGH 376,850.56 PREMIER TOWER

71 TANDEM NETWORK GHPREMTANDEM 172,263.01 PREMIER TOWER

72 A-MEN INTERNATIONAL GHPREMA-MENI 139,931.28 PREMIER TOWER

73 RORAIMA DATA SERVICES

GHPREMRORAIM 130,692.00 PREMIER TOWER

74 AMEN INTERNATIONAL-

UTILITIES

GHPREMAMEN-U 5,598.62 PREMIER

TOWER

75 GHANA HEALTHCARE GHOKOFGHCARE 87,885.00 OKOFO HOUSE

76 EDGE TECHNOLOGIES

LIMITED

GHHERIEDGETE 4,642.28 HERITAGE

TOWER

77 ROYAL DIAMOND VENTURES-UTILITIES

GHHERIROYA-U 1,142.43 HERITAGE TOWER



78 MESSRS PARAGON

INVESTMENT

GHHERIPARAGO 67,414.45 HERITAGE

TOWER

79 GOLDKEY PROPERTIES LIMITED

GHHERIGLDKEY 49,788.16 HERITAGE TOWER

80 NORTH END TECHNOLOGY LTD

GHHERINORTHE 45,728.84 HERITAGE TOWER

81 AFRICAN

DEVELOPMENT BANK

GHHERIADBANK 40,649.51 HERITAGE

TOWER

82 ICON COMMUNICATIONS

LIMITED

GHHERIICONCO 39,651.18 HERITAGE TOWER

83 ZAKHEM INTERNATIONAL CONST.LTD

GHHERIZAKHEM 38,911.80 HERITAGE TOWER

84 CANAL GROUP GHHERICANAGR 38,699.73 HERITAGE TOWER

85 NEWWORLD RENAISSANCE SECURITIES LIMITED

GHHERINEWORL 33,396.21 HERITAGE TOWER

86 MICROMEDIA CONSULTANT GH LTD

GHHERIMICROM 31,078.44 HERITAGE TOWER

87 MILLICOM GHANA LTD GHHERIMILLIC 28,945.06 HERITAGE TOWER

88 CHASE PETROLEUM GHHERICHASEP 25,851.16 HERITAGE TOWER

89 TRAVEL EXCELLENCE & TOURS

GHHERITRAVEX 25,444.62 HERITAGE TOWER

90 TRAVEL KING LIMITED GHHERITRAVKI 21,071.74 HERITAGE TOWER

91 POTOMAC INVESTMENT GHHERIPOTOMA 18,292.08 HERITAGE TOWER

92 ROYAL DIAMOND VENTURES

GHHERIROYALV 17,601.81 HERITAGE TOWER

93 GRAS SAVOYE GHANA

LIMITED

GHHERIGRAS-U 5,255.09 HERITAGE

TOWER

94 ASSOCIATION OF CERTIFIED CHARTERED ACCOU

GHHERIACCAGH 5,053.08 HERITAGE TOWER

95 GOLD KEY PROPERTIES GHHERIGOLDKE 3,697.91 HERITAGE TOWER

96 CANAL GROUP-UTILITIES

GHHERICANA-U 3,145.74 HERITAGE TOWER

97 NEWWORLD SECURITIES-UTILITIES

GHHERINEWW-U 2,068.75 HERITAGE TOWER

98 INTERNAL AUDIT AGENCY

GHHERIAUDIT1 1,926.19 HERITAGE TOWER

99 OXFORD & BEAUMONT NOMINEES LTD ANNAEX

GHHERIOXFANN 1,819.12 HERITAGE TOWER

100 CHINA HARBOUR

ENGINEERING (GH) LTD-UTILI

GHHERICHIN-U 1,379.38 HERITAGE

TOWER

101 OXFORD BEAUMONT NOMINEES

GHHERIOXFORD 1,252.20 HERITAGE TOWER

102 GRAS SAVOYE GHANA LIMITED

GHHERIGRASSA 750.95 HERITAGE TOWER



103 BULK OIL STORAGE

&TRANSPORT CO LTD

GHHERIBOSTGH 554 HERITAGE

TOWER

104 GOV.OF GH.(MIN OF LANDS FORESTRY &

MINES

GHHERILANDS. 384.77 HERITAGE TOWER

105 BULKSHIP TRADING GHHERIBULKSH 351.85 HERITAGE TOWER

106 NATEL LIMITED-UTILITIES

GHHERINATE-U 115.55 HERITAGE TOWER

107 TEAM GHANA LIMITED GHHERITEAMGH 20.52 HERITAGE

TOWER

108 GTZ GOOD GOVERNANCE PROG.GH.

GHHERIGTZGGP 2 HERITAGE TOWER

109 NATIONAL SECURITY COUNCIL

GHHERINATSEC 419,030.43 HERITAGE TOWER

110 MESSRS NATEL

LIMITED

GHHERINATELL 128,200.09 HERITAGE

TOWER

111 AFRICAN LEGAL AID GHHERIALEGAL 126,187.98 HERITAGE TOWER

112 CHASE PETROLEUM-UTILITIES

GHHERICHAS-U 3,305.16 HERITAGE TOWER

113 LE PREMIERE

SERVICES LIMITED

GHHERIPREMIE 5,185.14 HERITAGE

TOWER

114 KALIBRE CATERING SERVICES

GHNIAPKALIBR 23,855.10 NORTH INDUSTRIAL

AREA PROPERTY

5,590,115.15

2608. We further noted from our review of payment vouchers that

Management authorised and paid a total of GH¢677,134.27 as

utility bills for the Tenants of Word Trade Centre when they

boycotted to pay their rents and utility bills due to poor conditions

of the facility.

2609. The inability of the Trust to include in the agreement clauses

to ensure that the fees payments to Broll Ghana Ltd as Property

manager is tied to his ability to collect outstanding rent from

tenants, coupled with probable non- responsiveness of the Trust to

the maintenance needs of the facility in our view, have resulted in

these anomalies.



2610. The situation if not checked, could lead to loss of rent revenue

to the Trust.

2611. We urged Management to impress upon Broll Ghana Ltd to

recover the amount from the tenants. Again, we urged Management

to revise the agreement with the properties Managers to include

clauses that will tie fee payments to the rate of recovery of rent

outstanding from the tenants. We further advised Management to be

responsive to maintenance needs of the Properties.

2612. Management responded that “The Trust Commercial

Properties being managed by Messrs Broll Ghana Limited were

constructed over two (2) decades ago. These properties are

deteriorating with time and are bedevilled with obsolete

electromechanical installations that have exhausted their

operational/economic life span. This has led to frequent breakdowns

and in some cases, total shutdowns causing dissatisfaction amongst

tenants and their customers. Whilst some tenants have terminated

their leases on these properties (high turnover recorded between

2017 and 2018), some have purposely withheld payment of

Rent/Common Area Maintenance (CAM) Charges till their concerns

raised on the defects above are addressed. Unfortunately, a number

of these tenants have vacated the premises and absconded with their

rent/CAM.

2613. As a result, revenue generated from CAM for routine

maintenance and other CAM related activities have declined

considerably. Due to the fact that CAM related activities are

independent of occupancy levels, the Property Managers have

struggled to keep up with the provision of CAM services to ensure

that the remaining tenants are not inconvenienced further.

2614. In order to retain the few tenants remaining (including high

profile tenants who occupy a larger proportion of the facilities), the



Trust sought to pre-finance CAM charges at the World Trade Center

(WTC), being the worst affected by tenant turnover at the time, in

order to ensure that, routine maintenance and other CAM related

activities are undertaken on schedule.

Actions being taken

Messrs Broll, through their lawyers have initiated processes

to take legal action against defaulting tenants (both sitting and

former) to retrieve rent arrears.

Negotiations have been held with some tenants who have

agreed to a payment plan rolled out by the Property Manager

to clear their outstanding debt.

Board of Trustees has approved the retrofitting/replacements

of the defective electromechanical installations in the most

affected property, the WTC, while considering proposals for

same for all the other such properties. The implementation of

these proposals is expected to considerably reduce tenants’

dissatisfaction whilst increasing revenue generation and

arrears recovery.

To further improve the performance of Messrs. Broll regarding

rent collection, the Trust has reviewed the Property

Management Agreement with them to incorporate Key

Performance Indicators that tie their fees to their performance

on these indicators, which include rent collection, arrears

recoveries and attainments of targeted occupancy levels.”

Auditors’ Comment

2615. We disagree with Management’s response above. Messrs

Broll Ltd was engaged at a fee to manage the properties and their

contract at the time of engagement should have been explicit enough



to include the Key Performance Indicators referred to in the

Management response above. We blame the above avoidable

anomaly on both Management and Messrs Broll’s inaction in the

management and proper maintenance of the investment property(s)

resulting in the loss of valuable tenants and rental revenues.

2616. The payment of GH¢677,134.27 as utility bills for the Tenants

of Word Trade Centre when they boycotted to pay their rents and

utility bills due to poor conditions of the facility was as a result of

the negligence of the property managers who had the responsibility

of ensuring that conditions in the facility were conducive and to the

satisfaction of the tenants. We therefore recommend that Messrs

Broll Ltd should be made to refund the GH¢677,134.27 to SSNIT for

audit validation. In addition to this, we advise management to

include key performance indicators in all future property

management agreements to avert the possibility of a repeat of the

above anomaly.

GETFUND Bond Repayment in Dispute - GH¢57.3Million

2617. Social Security and National Insurance Trust (SSNIT) bought

a three (3) year Coupon Bond of GH¢55,555,555.56 at a rate of 22%

per annum from Ghana Education Trust Fund (GETFund) to

support GETFund operations. GETFund entered into a Receivables

Agreement with SSNIT to repay SSNIT over a three-year period

ending 26th September 2016. The agreement also assigned to SSNIT

the expected monthly Value Added Tax (VAT) receivables of GET

Fund from Ministry of Finance and Economic Planning (MOFEP)








2619. We noted from our audit that the repayment period of the

Bond had elapsed and GETfund still owed SSNIT a total amount of

GH¢57,259,666.46 as at 31 December 2018. The outstanding

balance is made up of unpaid principal and interest amount of

GH¢27,777,777.78 and GH¢29,481,888.68 respectively.

2620. However, GETfund confirmed to our circularisation that they

owed SSNIT GH¢30,853,330.36. Our further review and explanation

obtained from the Schedule officers disclosed that the difference of

GH¢26,406,336.10 (GH¢57,259,666.46 - GH¢30,853,330.36.)

represent interest that arose from default.

2621. The Administrator further attached to his responds of the

circularisation a copy of a letter dated 15th of September 2017

written by him to the Director General of SSNIT and copied to the

Minister of Finance indicating that, any default penalty and

additional interest beyond the maturity date of the bond should be

directed to the Minister of Finance, because they failed to transfer

the expected monthly Value Added Tax (VAT) receivables. He further

requested in his letter dated 9th November 2017 to SSNIT that, the

Trust should offset the outstanding balance on the Bond with an

amount of GH¢26,418,000 owed them by the Trust. SSNIT

Management disagreed and stated that the two transactions should

be treated separately.

2622. The anomaly could be attributed to the failure of the Ministry

of Finance (MoF) to transfer the expected monthly Value Added Tax

(VAT) receivables when the repayment was due, coupled with

disagreement between the parties on the mode of final settlement on

the transaction.



2623. Failure to recover the repayment of the interest and principal

on due dates has resulted in the reduction of investible funds. This

may further reduce the Trust ability to pay pension on time and

thereby pose a threat to retirement income security to workers.

2624. We recommended to Management to reach an agreement with

GETFund and Ministry of Finance to ensure the repayment of the

Bond outstanding amount.

2625. Management responded that “The issue with this bond from

GETFund is that, GETFund is insisting on the Trust using a

disputed debt to it by the Trust to offset the then outstanding

amount. Since this debt is not yet established SSNIT also insists to

separate these two transactions.

Actions being taken

2626. On the first issue of who is responsible for the payment,

SSNIT recognises GETFund as the borrower and thus makes

demand of payment from them. SSNIT and GETFund are still in

discussion as to establishing the tenancy of any such debt. SSNIT

has requested the intervention of the Ministry of Finance, on whose

behalf the disputed debt transaction was made by GETFund.The

Ministry is yet to respond. Meanwhile, SSNIT consistently issues

Demand Notices to the Fund on the unpaid bond.”

Non-Recovery of Loan from separated staff GH¢178,819.05 2627. Regulation 113 (1) of Financial Administration Regulations,

2004 (L.I 1802) states "recoveries from official salaries shall

commence the next complete month after the month in which

advance was made.'' Regulation 112 of the LI 1802 further provides

that recoveries can be made by any other means which may appear

to be feasible should deduction from borrower's salary at source

fails.



2628. Dr. Caleb K Afaglo, who was the General Manager for

Management Information System (MIS), as part of his benefit was

granted various loans to the tune of GH¢251,537.64 by the Trust.

Upon his separation from the Trust on 30th August 2017, a

computation of his entitlement showed a total of GH¢72,718.59.

2629. We noted from our review of personnel files that on 30 August

2017 Management offseted his entitlement with the unrecovered

Loan in accordance with Management Vehicle Loan Scheme

acceptance requirement, leaving a difference of GH¢178,819.05. We

further noted that as at 31/12/2018, Management had not

recovered the outstanding loan from Dr. Caleb K Afaglo.

2630. Management advancing loans to Dr. Caleb K Afaglo, whilst

he was on probation resulted in this anomaly. Non-recovery of the

loan would deprive other staff access to the loan facility.

2631. We urged Management to take all necessary steps to recover

the remaining loan balance from Dr. Caleb K Afaglo with interest at

the Bank of Ghana prevailing interest rate.

2632. Management ensures that loans are not granted to staff on

probation. The Legal Services Department is taking all the necessary

steps to initiate legal action against Dr Caleb Afaglo to

retrieve/recover the debt.

Overdue Bond Receivable from Kings University College-GH¢

8.7Million

2633. The Trust on November 11, 2011 fully subscribed to a

GH¢2,000,000.00 five-year Private placement issued by Kings

University College (KUC). The facility has 6 months coupon payment



cycle, with bullet repayment of the principal amount on maturity.

The facility is secured by a parcel of land located at Odeso.


921, provides that, the Board of Directors of a public corporation




2635. On the contrary, we noted from our review of the investment

Schedule as at 31/12/2018 that, Management did not collect a total

of GH¢8,708,996.04, KUC owed the Trust. This amount is made up

of principal of GH¢2,000,000.00 and 6,708,996.04 capitalised

interest over 7 years period. Our further review of underlining

records of the bond disclosed that the University paid only the 1st.

2nd, and 3rd coupons interests totalling GH¢694,225.28. We noted

that the last coupon was paid on 10 May 2013.

2636. In our view poor due diligence carried out on the investment

by the head of Fixed Income resulted in the anomaly and could lead

to loss of the Trust’s funds.

2637. We advised Management to ensure that Investment officers

effectively perform due diligence on all SSNIT investment. We also

urged Management to recover the GH¢8,708,996.04 from the Kings

University College.

2638. Management responded that “Thorough due diligence was

done before the Trust subscribed to the bond. The due diligence

disclosed some risks that led to the Trust insisting on collateral to

secure the bond, for which a piece of land was assigned. This

demand by SSNIT is very unusual for a bond transaction because

bonds, by their nature and features, are not secured with any landed

asset as collateral. Nonetheless, SSNIT insisted on the collateral due



to the outcome of the due diligence. With the issuer defaulting in the

payments, the land is being valued and proceeds used to pay off.

2639. At the moment the Trust is at the final stages of finalising the

value-for-asset swap for the facility, which would mitigate the loss of

funds to the Trust.

2640. Going forward, the Trust is putting in place a new Investment

Policy and Guidelines document to guide them on future

transactions. The document will contain stricter and more rigorous

procedures, which include due diligence to be met before an

investment as above is undertaken.”

Locked up Pensioners Funds in RSS Project - GH¢ 652.2Million

2641. In 2010, SSNIT entered a Joint venture agreement with

Regimanuel Gray (RSS) for a development of housing project at

Klagon, Tema and Asokore for sale. The arrangement provided a

percentage holding of 60% to SSNIT and 40% to Regimanuel Gray.

Also, the expected cost for construction and completion of the

projects at Klagon was US$206,465,000.00.






2643. We noted from our review of Investment files at the Property

and Investment Unit of the Trust that, SSNIT has invested

US$7,500,000 as equity and granted 2 loans of Ghana cedi

equivalent of US$177,750,000.00. Our review indicated that none of

these loans is been serviced even though they are due for repayment.

We further noted from a memo indicating that, the Board of the Trust

in May 2016 directed the freezing of interest accumulation on the



loan from January 2016. The total cedi equivalent of the loan as at

31 December 2015 was GH¢652,246,210.72.

2644. We noted from our visit to the project site that, (at the Eagle

place of Community 13, Sakumono) out of the 32 completed housing

units, only two of them were sold. Also, none of the 9 flats completed

blocks at Klagon, Sakumono site was sold. We also noted that the

project has come to a halt.

2645. In our view, no due diligence was performed on the

investment, the inability to anticipate the increased supply of houses

in the housing market, coupled with wrong estimation of the project

cost resulted in this state of affairs.

2646. Over US$185,250,000.00 of Pensioners’ funds has been

locked up in the investment.

2647. We urged the Board to impress on RSS, the Joint Venture

operators to consider and intensify their efforts to sell the completed

projects. Also, the Board should consider RSS proposal for renting

the houses to reduce the losses on the investment. We further

recommended to the Trust to institute an effective project evaluation

process in investment of similar high capital outlay. Also, the

interest accumulation on the loans should be unfrozen to enable the

Trust determine the quantum of losses likely to be made on the

project after completion

2648. Management responded that “RSS Limited is a joint venture

company (JV) formed by SSNIT and Regimanual Gray Limited (RGL)

in 2009. The goal for the formation of the Company was to combine

the expertise of Regimanual in the real estate sector with SSNIT’s

financial strength to develop high class residential, commercial and



industrial properties in Accra (Klagon & Sakumono) and Kumasi

(Asuoyeboah).

2649. Due diligence was conducted on the viability of the project

and found to be viable at the time. However, in the course of

implementation there was a downturn of the national economy

coupled with significant changes in the project concept at the

company level. A number of real estate developers were caught in

the sudden unexpected economic meltdown experienced and that

created a glut of that class of housing units in the market.

2650. The significant change in the scope of the project at the

company level resulted in the project cost being significantly

different from the originally estimated cost.

Actions taken/ being taken

An asset-liability match exercise has been done following

which SSNIT Board called for a swap of debt own it by RSS

with completed housing units.

An Emergency General Meeting (EGM) has been held by the

company and the shareholders agreed to the swap. The swap

is currently underway.

The Trust is putting in place a new Investment Policy and

Guidelines document to guide future transactions. The

document will contain stricter and more rigorous processes,

which include that any change in project scope at any joint

venture company level that causes a change in the project’s

financials as approved should be referred to the SSNIT Board

for consideration before implementation.



Also, the SSNIT Board has already directed that in future

SSNIT shall not enter into any joint venture agreement where

a partner in the JV will be the contractor for the project the

JV is to undertake.

There has also been commissioned a value-for-money audit of

the entire RSS Company and its operations, the draft report

of which has been received and being studied; the

recommendations of which would guide the Trust on the way

forward.”

Poor Investment on NTHC - GH¢151.9Million 2651. The Trust owns 43.48% equity of National Trust Holding

Company (NTHC). On May 29, 2012 SSNIT granted a loan of Ghana

cedi equivalence of US$40,000,000.00 to NTHC payable within 5

years. The loan was secured over both Cocoa-Take-Over-Receipts

(CTOR) and the borrower debt service account.

2652. Section 91(1) of Public Financial Management Act 2016, (Act

921) provides that, the Board of Directors of a public corporation




2653. Our review of the management of loans at the Property and

Investment Department of SSNIT showed that, as at December 2018,

the total balance of the loan was GH¢151,944,040. We further noted

that, NTHC paid only the 1st and 2nd interest amounts but did not

pay any part of the principal amount. The 1st Principal repayment

was due on July 2013, which was 6 months after the initial

disbursement of the loan.



2654. In our view, the anomaly arose because SSNIT did not carry

out effective due diligence on the loan. Also, the Trust did not enter

into any agreement with NTHC, its Bankers or COCOBOD to ensure

that the receipts from Cocoa taken over by COCOBOD due NTHC

were channelled to pay off the loan.

2655. The situation could lead to loss of the Trust funds or

increasing its equity in unprofitable ventures.

2656. We advised Management to ensure that Investment officers

effectively perform due diligence on all SSNIT investments. We also

urged Management to recover the GH¢151,944,040 from NTHC

without further delay.

2657. Management responded that “The SSNIT Board, at its 249th

meeting held on 18th January, 2012, approved a loan facility of

US$40 Million (Ghana cedi equivalent) to NTHC. The Company failed

to honour its obligations as expected under the Loan Agreement, due

to its liquidity challenges then but made unscheduled periodic

payments on account. The Company made part payments of payable

instalments, totalling GH¢34,640,337.68 over the period April 2013

to November 2015.”

Actions taken

There has been a series of meetings and negotiations between

Managements of both SSNIT and NTHC on how to recover the

debt.

The SSNIT Board of Trustees at its meeting held on October 31,

2017 directed a conversion of part of the outstanding debt to

equity to achieve 75% holding and the balance into preference

shares.



The equity conversion is being concluded and processes are

underway to convert the loan balance to the preference

shares.”

Non-Reconciliation of Rent Receivable

2658. Paragraph 4.7 SSNIT Operations Accounts Manual requires

the Operations Account department to prepare rent reconciliation

and check for accuracy of the prepared rent schedules and submit

to Final Accounts Manager.

2659. Our comparison of rent receivable balances provided by the

Properties Department and Operations Account Department for

2017 and 2018 disclosed a difference of GH¢61,964,845.93 for 2017

and GH¢39,350,310.49 for 2018. The balances provided by

Operations Account department are represented in the Financial

Statements as rent receivables. The details of differences are shown

in the table 291a and table 291b for 2018 and 2017 respectively.

Table 291a Differences in Rent receivable between Properties and Accounts

2018

Tenant Properties Department

GH¢

Ledger Balance (Operations Department)

GH¢

Differences GH¢

SSNIT Managed Properties

2,521,387.11 6,044,800.96 (3,523,413.85)

Rent Debtors – Broll Ghana Limited

3,855,101.39 12,020,697.49 (8,165,596.10)

Rent Receivable – World Trade Centre

11,019,535.16 28,143,693.66 (17,124,158.50)

Rent Receivable – Car Park

231,319.22 7,660,723.27 (7,429,404.05)

Rent Receivable–Adenta Shopping Centre

467,243.67 652,644.30 (185,400.63)



Rent Receivable SSNIT Emporium

-19,839.92 2,902,497.44 (2,922,337.36)

Total 18,074,746.63 57,425,057.12 (39,350,310.49)

Table 291b Differences in Rent receivable between Properties and Accounts

2017

Tenant Properties Department

GH¢

Ledger Balance GH¢

Difference GH¢

SSNIT Managed Properties

Amount could not be provided by the schedule officer

4,766,116.76

(4,766,116.76)

Rent Debtors – Broll Ghana Limited

3,609,507.47

20,689,496.82

(17,079,989.35)

Rent Receivable – World Trade Center

7,864,865.01

29,313,595.91

(21,448,730.90)

Rent Receivable – Car Park

213,296.23 6,568,735.50 (6,355,439.27)

Rent Receivable – Adenta Shopping Center

375,208.29

704,765.61

(329,557.32)

Rent Receivable SSNIT Emporium

(1,708,706.33)

10,276,306.00

(11,985,012.33)

Total 10,354,170.67 72,319,016.60 (61,964,845.93)

2660. The anomaly was as a result of inadequate supervision by

Management to ensure regular reconciliation by schedule officers

coupled with the software reconciliation failures.

2661. The Trust may lose rent revenue if the departments are

unable to establish the actual balances owed by these occupants.

Also, the financial statements may be misstated if regular

reconciliations are not performed.

2662. We recommended to Management to ensure that monthly

reconciliations are carried out between the Operations and

Properties Departments. We also recommended periodic

reconciliation between SSNIT and the Property Management



Companies. We further urged Management to investigate the

respective rent receivable differences and appropriately adjust the

Financial Statements.

2663. Management responded that the differences in balances

between Properties Departments and the General Ledger (GL) figures

were due to the expiration of some leases in the Oracle Investment

Management System (IMS) which were not updated in the Oracle

FMS due to some technical challenges.

2664. The challenges were to be resolved by the consultants, M/s.

ProVision before their appointment were terminated. However,

Properties and Operations Accounts Departments have met and

agreed on how to resolve this particular issue by working around the

System (i.e. manual reconciliation) going forward. The reconciliation

exercise of the figures from 2017 and 2018 are on-going. Details of

the balances between the Properties and the GL Balances as

provided by SSNIT are shown in table 292 for your attention.

Table 292: balances between the Properties and the General Ledger

2018

TENANT LEDGER BALANCES DIFFERENCES

SSNIT Managed Properties 2,521,387.11 2,521,387.11 6,044,800.96 (3,523,413.85)

Rent Debtors- Broll Ghana USD 3,855,101.39 4.8200 18,581,588.70 12,020,697.49 6,560,891.21

Rent Receiveble-World Trade USD 11,019,535.16 4.8200 53,114,159.47 28,143,693.66 24,970,465.81

Rent Receiveble-Car Park 231,319.22 231,319.22 7,660,723.27 (7,429,404.05)

Rent Receivable-Adenta Shopping Center 467,243.67 467,243.67 652,644.30 (185,400.63)

Rent Receivable SSNIT Emporium (19,839.92) (19,839.92) 2,902,497.44 (2,922,337.36)

TOTAL 74,895,858.25 57,425,057.12 17,470,801.13

2017

TENANT LEDGER BALANCES DIFFERENCES

SSNIT Managed Properties - - 4,766,116.76

Rent Debtors- Broll Ghana USD 3,609,507.47 4.4142 15,933,087.9 20,689,496.82 (4,756,408.95)

Rent Receiveble-World Trade USD7,864,865.01 4.4142 34,717,087.1 29,313,595.91 5,403,491.22

Rent Receiveble-Car Park 213,296.23 1,447,918.61 6,568,735.50 (5,120,816.89)

Rent Receivable-Adenta Shopping Center 375,208.29 572,496.37 704,765.61 (132,269.24)

Rent Receivable SSNIT Emporium (1,708,706.33) 3,672,175.67 10,276,306.00 (6,604,130.33)

TOTAL 56,342,765.65 72,319,016.60 (11,210,134.19)

BALANCES BETWEEN PROPERTIES AND THE GENERAL LEDGER

PROPERTIES DEPT

PROPERTIES DEPT



Failure to correct Thin Capitalisation on CENIT Investment

Limited-GH¢17.5 Million 2665. CENIT Investment Limited (CIL) a wholly owned investment

company of SSNIT at its inception had a capital structure of 82%

debt and 18% equity.

2666. Section 33 of the Income Tax Act 2015, Act 896, provides

that where a resident entity which is not a financial institution and

in which fifty percent or more of the underlying ownership or control

is held by an exempt person either alone or together with an

associate has a debt-to-equity ratio in excess of three-to-one at any

time during a basis period, a deduction is disallowed for any interest

paid or foreign currency exchange loss incurred by the entity during

that period on that part of the debt which exceeds the three-to-one

ratio, being a portion of the interest or loss otherwise deductible but

for this subsection.

2667. The SSNIT Board also, at its 292nd meeting on 19 May 2016,

approved the conversion of 100% of the outstanding debt of

GH¢684,830,020 with CENIT into preference shares. This

arrangement was expected to eliminate the thin capitalisation of the

company and also reduce its interest burden.

2668. However, our review of SSNIT’s investments in CENIT

Investment Limited indicates that Management of SSNIT did not

convert the Loan into preference shares as authorised by the Board

at its 292nd sitting.

2669. The situation continues to persist as a result of non-

adherence to the Board of Directors approval by Management of the

Trust.

2670. This resulted in a total tax liability of over $17million due to

interest expense disallowed by the tax authority on CENIT



Investment Limited on the basis of thin capitalisation. It is also

estimated in the Tax audit report from KPMG that, the total tax

liability of CIL due to thin capitalisation from 2013 to 2016 was

GH¢128,494,635.

2671. We recommended that Management should follow up and

ensure that conversion of the Loan into preference share is done to

eliminate the problem of the thin capitalisation and further

recommended to Management to effectively evaluate the impact of

all laws on the Trust’s investment decisions.

2672. Management responded that “The SSNIT Board of Trustees

held its 292nd meeting on 19th May, 2016 and approved the

conversion of 100% of an outstanding GH¢684,830, 020 of debt

owed to it by Cenit Investment Limited (CIL) into preference shares

and a conversion of Cenit Investment Limited (CIL) and Cenit Energy

Limited (CEL) into a management company. A letter dated 31st

October, 2016 was sent to the then Board Chairman of CENIT

Energy informing them of these decisions of the SSNIT Board. The

company was asked to initiate the requisite processes for the

implementation of those decisions.

2673. In the process of implementing those conversions, the thin

capitalization issue came up regarding the borrower, CENIT

Investment Limited (CIL). It became obvious to Cenit that CIL could

not be liquidated until the tax liability arising from the thin

capitalization had been resolved. Whilst at the resolution with

assistance from SSNIT Corporate Law department, SSNIT Board of

Trustees at its meeting on 18th October 2018 cancelled its 19th May,

2016 decision to convert the loan to preference shares and gave a 3-

year moratorium on the repayment of the loan. Then at its 320th

meeting held on 28th November, 2018, the SSNIT Board revoked the



3-year moratorium granted to Cenit following an improvement in the

latter’s finances.

2674. Management of Cenit is in an ongoing discussion with GRA

on the thin capitalisation issue, which its resolution will pave way

for the voluntary liquidation of CIL or merging CIL and CEL into a

new CEL and converting (new) CEL into a management Company.”

Pensions for over 72-years without Life Certificates 2675. Pensioners aged 72 and above are expected to renew their

Pensioner’s (Life) Certificate yearly on their birth dates with the

SSNIT Biometric Card to warrant payment of their monthly pension

and prevent payments to deceased pensioners. Pensioners, who fail

to renew the pensioner’s (Life) certificate will have their names

deleted from the Pension Payroll.

2676. We noted that SSNIT paid an amount of GH¢153,646,675.30

from March 2018 to December 2018 on 300,967 transactions to

pensioners over 72 years who have not renewed their life certificates.

2677. The situation arose because Management did not configure

the required controls in the Pension (OBS) system to prevent paying

pensioners over 72 years without life certificate. Also, ineffective

internal reviews/checks on the monthly pension data against the

prerequisite controls and regulations to expose shortfalls of the OBS

system.

2678. Data integrity of the OBS cannot be assured and SSNIT may

be losing funds by paying dead Pensioners.

2679. We recommended to Management to ensure that, the required

controls are configured to prevent loss of Pensioners funds. Also,

Management should ensure effective Internal reviews on the OBS

system.



Management responded as follows that

2680. “(a) As a mechanism to protect the scheme from financial risk

resulting from payment of funds to deceased pensioners, all

pensioners on PNDCL 247 and Act766 aged 72 and 75 respectively

are required by policy to complete a Pensioner’s Certificate as a

confirmation of status of life. The frequency of renewal of the

certificate may be varied from time to time as may be determined by

the Trust.

2681. The pensioner (Life) certificate policy was reviewed in August

2017 which changed the Certificate renewal period from three (3)

years to one (1) year.

(i) By the three-year renewal policy, all pensioners aged 72 and

75 under

the respective social security laws were required to confirm

them

status of life by renewing their life certificate once every

three years.

(ii) Under the current one-year renewal policy, pensioners are

required to

complete the certificate once every year.

Challenge with the implementation of the one-year life/pensioner certificate policy 2682. Inability of the Trust to change the 3-year renewal period of

pensioners (aged 72+) already tagged to 1-year period in the OBS

system due to the inflexibility of the OBS system and lack of system

support from the OBS Vendors.

However, the one-year policy has been implemented on the OBS as

at October 2018 for pensioners who turned 72 thereafter. This could



not take retrospective effect for the already tagged pensioners for the

three-year period. Actions undertaken to mitigate the Challenge:

i. SMS Text messages were sent to pensioners informing them

that the period of life/pensioners certificate renewal had

changed from three years to one year and that each pensioner

was to visit the nearest SSNIT Office on their birth anniversary

date to renew their pensioners’ certificates.

ii. Branch Offices were directed to take records of pensioners who

showed up at their branches for verification. The sample list of

pensioners can be found on the Audit Observation data. These

are also pensioners on the pension payroll.

iii. 8,366 pensioners who had not renewed their Life/Pensioners

Certificate were de-activated.

A total of 8,366 pensioners aged 72 and above who had

not renewed their pensioner (life) certificates and re-

enrolled biometrically were de-activated.

The exercise was done for 6,129 pensioners aged

between 72 and 79 years in February 2018. A similar

exercise was conducted in March 2018 for 1,851

pensioners aged between the 80 and 89 years. In April

2018, 386 pensioners who were 90 years and above

were deactivated.

Also in August 2018, 723 pensioners who had turned

72 years were deactivated.

2683. We have fostered a relationship with the National Pensioners

Association (NPA) in order to access information on deceased

Pensioners. Monthly returns on dead pensioners from the National

Pensioners Association are collected and subsequently deactivations

of such pensioners on the Payroll are affected.



Audit Report Data List of payment transactions

2684. The Audit list of 300,967 transactions was made up of 36,220

pensioners. Out of the number, 6,057 were found to have already

been deactivated based on the non-re-enrolment and non-renewal of

life certificate exercise that was conducted by the Benefits Division

as at the end of 2018. In spite of the challenges with the OBS system,

the Benefits Division continues to put in measures to curb the risk

of paying pensions to deceased pensioners unknown to the Trust.

The new system (the fallback system) has been designed to take care

of these challenges observed in the OBS”.

Undue Delay in recovering Judgment Debt -GH¢1.38million

2685. On 21st June 1996 and 9th February 1998, the Trust granted

Fidan Construction a mortgage facility or loan in the sum of

GH¢328,200 at 39% interest per annum for the development of a

site and serviced plot project at Kwabenakwakrom near Obuasi in

the Adansi West District of the Ashanti Region.

2686. Paragraph 6(iv) of Suit No.CI/233/07 in the Kumasi High

Court between Nana Kwaddu-Kesse Ko II (Plaintiff) Vrs Fidan

Construction Limited (Defendant 1) and SSNIT (Defendant 2) states

“The Interlocutory order granted by the Court on 23rd July 2007

restraining SSNIT from the judicial sale of the mortgage property to

recover the debt of Fidan Construction shall be vacated upon

adoption of this Terms of Settlement.

2687. Despite the Court order and adaptation of the term of

settlement to recover the debt, our review of the loan balances

revealed that, SSNIT has still not recovered GH¢1.38 million debt

owed by Fidan Construction Limited as at 31 December 2018. Our

further review of the file indicated that the appointed auctioneer

(City Auctions Mart, Dela Akpey) realised only GH¢100,000.00 from

the sale. The Auctioneer communicated to the Trust that they cannot



proceed with the services because of the difficulty associated with

making the sales.

2688. The anomaly is due to non-availability of readily available

market for the property.

2689. The delay in recovery of the debt may lead to the loss of

Pensioners funds, especially when the land is encroached upon.

2690. We advised Management to ensure that the court judgment

is executed to enable the Trust recover the balance of GH¢1.38

million on judgment debt.

Management Response

2691. We make reference to your above stated Audit Observation

Memorandum (AOM) dated January 3, 2019 and submit the

following response. We wish to brief you on the status of the property

in question as follows:

2692. The Trust on 21st June, 1996 and 9th February, 1998 granted

a mortgage/loan facility in the consolidated sum of GH¢328,200 at

39% interest per annum to FIDAN CONSTRUCTION COMPANY

LIMITED (herein after referred to as “the Company”) for the

development of a site and serviced plot project at Kwabenakwakrom,

near Obuasi (Adansi West District) in the Ashanti Region of Ghana.

2693. The said loan facility to the Company was secured by a legal

mortgage of the entire land, site and the service housing projects

thereon in favor of the Trust registered as 16589 with serial number

73/2000.

2694. The title of the said land used as security for the mortgage

was a 99-year leasehold effective July, 1995.



2695. The Company defaulted in repayment and the Trust

instituted an action in the High Court, Tema for the recovery of the

loan and accrued interest which as at May 2001 was GH¢110,280.

2696. The High Court, Tema on the 31st day of March, 2002 gave

judgment in favor of the Trust for the recovery of the total sum of

GH¢148,050 inclusive of the principal, accrued interest on the

principal, the court interest upon judgment and legal cost or in the

alternative the judicial sale of the mortgaged property for the

recovery of the said amount.

2697. Pursuant to the judgment of the honorable High Court in

favor of the Trust, since the Company could not pay its debt owed,

the entire serviced site covering about 258 acres granted for 99 years

to the Company was attached by the Court Officials for public

auction to recover the amount owed to the Trust.

2698. The entire property of the Company which is the subject

matter of the mortgage transaction which even included some

buildings were later valued and the Court approved the valuation of

GH¢760,000.00 as the open market value of and GH¢520,000.00 as

the forced sale value.

2699. The process of the sale was however stalled because by a

letter dated the 1st day of March, 2006 the Court appointed

auctioneer (MR. C.A. ARYEE of CONTRANTCO MART, ACCRA) wrote

to the then head of the Legal Department to inform him of the weedy

nature of the property to be auctioned and further solicited for some

funds to be made available to the Area Manager, Kumasi of the Trust

for the said weeds to be cleared.

2700. Further to the above, the auctioneer further requested that

there was a need to demarcate the entire site into separate plots.



2701. Later in 2006, the property was revalued by MESSRS VALUE

PROPERTIES and by a letter dated 30th October, 2006, MR. C.K.

KUMAH, the Principal Consultant of Value Properties by a letter

written to the Head of the Properties Management Department,

SSNIT indicated that the then current Open Market Capital Value of

the land as at August 2006 was GH¢814,700.00.

2702. The Trust further caused the land to be delineated into plots

and allotments pending the sale to the public by the Court appointed

auctioneer.

2703. By a letter dated the 29th day of January 2007, referenced

SS/LD. 52/V.7 the head of Legal Department of the Trust wrote to

the appointed Auctioneer indicating that the demarcation of the site

into individual plots had been completed as follows:

Four (4) completed detached residential buildings

Two (2) uncompleted semi-detached residential

buildings

341 serviced Plots

531 unserviced Plots

2704. However, by a memo dated the 27th day of May, 2010 the

Legal Service Manager per a memo to the Ag. General Manager, IDD

with reference number SS/LD. 52/V. 10 indicated that after the

demarcation of the land into individual building plots the following

were the result:

Three-bedroom estate unit Houses – 3 units

One uncompleted 3-bedroom house

Three uncompleted semi-detached two-bedroom houses



821 service plots pf about 0.23 of an acre per plot

Services extended to the site include:

Graveled road networks with combination of open

and covered concrete drainage

Electricity (2) transformer units

Water supply system

2705. The Head of Legal by a memo dated 2nd March, 2007 with

reference number SS/LD. 52/V7 directed at the Branch Manager,

Obuasi the Head of Legal requested him as a matter of urgency

tohave the entire site cleared to enable the auctioneer proceed with

the auction.

2706. The licensed auctioneer appointed by the Court was informed

to proceed with the auction sales.

2707. After the first auction that was held on 10th May, 2007 the

auctioneer by a letter dated 14th May, 2007 directed to the Head of

Legal, SSNIT reported that a lot of interested persons attended the

auction but the bids offered for the plots and buildings were below

the figures arrived at by the valuers which by law and the Courts

order are the reserved prices below which the property cannot be

sold.

2708. The public auction of the mortgaged properties however had

to come to a halt due to a suit filed by the original lessors of the land

(Kwabenakwakrom) against the Trust in the High Court, Kumasi to

forfeit the lease granted to the Company under which the Trust



derived its mortgage interest as security for the loan for non-

payment of the ground rent.

2709. The said suit in the High Court, Kumasi was titled:

NANA KWADUKESE-KO II

VRS

FIDAN CONSTRUCTION LIMITED

SOCIAL SECURITY AND NATIONAL INSURANCE TRUST

SUIT NO: C1/233/07

2710. The above suit resulted from the fact that, the Administrator

of Stool Lands, Ashanti Region served a demand notice on the Trust

to pay ground rent owed by the Company for the years 2004 to 2006.

Although, the then Properties Management Department was

advised by the Legal Services Manager to pay the said ground

rent and later have the amount of the said ground rent added

to the debt of the Company, the Properties Management

Department failed to pay the said ground rent.

The said suit was therefore mounted in the High Court, Kumasi.

The suit therefore further obstructed the sale to recover the

judgment debt owed by the Company to the Trust.

By a letter dated 22nd April, 2009 the Head of the Legal Services

Manager wrote a letter to the Municipal Stool Lands Officer,

Office of Administrator of Stool Lands, Obuasi-Adansi about the

Court action that had been instituted in the High Court, Kumasi

by Nana Kwadukese-Ko II since 2007 which was virtually

frustrating the Trust’s efforts in realizing our judgment debt

despite the Trust paying the necessary ground rents regularly

in respect of the said Site which the Stool consented for the use



of same to be used as a security for the loan taken from the

Trust by the Company.

By a letter dated 19th June, 2009, the Regional Stool Lands

Officer, NANA NSUASE POKU AGYEMAN III from the Office of

the Administrator of Stool Lands wrote to the Legal Services

Manager and indicated that the issues raised in the Legal

Services Manager’s letter could be best settled out of Court.

That NANA NSUASE POKU AGYEMAN III further by his letter

invited the Head of Legal for the Trust, NANA KWADUKESE-KO

II and his Counsel for a meeting on the 4thday of August, 2009

at the office of the Ashanti Regional Stool Lands Officer at 10

am.

By a letter dated 6th July, 2009 the Head of Legal Services

Department acknowledged receipt of the letter dated 19th June,

2009 from NANA NSUASE POKU AGYEMAN III and further

confirmed his attendance at the said meeting.

On 4th August, 2009 the parties met in the Office of the Ashanti

Regional Stool Lands Officer in Kumasi to discuss settlement of

the case out of Court.

At the said meeting the Chiefs explained that the late MR. KOFI

DANSO the owner of the Company (Fidan Construction

Company Limited) hailed from the area and he approached the

Chiefs to do the project on the land. He further promised the

Chiefs that he will provide them with some buildings and some

money.



However, after collecting the money from the Trust and

obtaining the consent from the Stool to mortgage the land to the

Trust, the late MR. KOFI DANSO failed to honor his promises

and he also could not complete the project before his death.

On the basis of the above, the original lessors (Chiefs) agreed to

forward their proposal for settlement to the Trust through the

Regional Lands Officer for the Trust to take its decision on

same.

By a letter dated 7th October, 2009, the Regional Lands Officer

for the Office of the Administrator of Stool Lands forwarded the

Proposal for the out of Court settlement of the case to the Trust.

By way of a proposal the original lessors (represented by NANA

KWADUKESE-KO II) demanded the following as compensation

and as condition to end the litigation to enable the Trust sell

the land and the few buildings on same to be able to recoup the

amount given to the Company:

The release of fifty (50) acres of the disputed property to

Sebenso Stool

The allocation of one of the completed housing units

which was then under construction by the Trust on the

disputed land to Sebenso Stool

The payment of a lump sum of Ten Thousand Cedis

(GH¢10,000.00)



2711. If the Trust can fulfill the above request, then the NANA

KWADUKESE-KO II would be prepared to assist the Trust in any

manner possible to lift the Court injunction placed on further

developments on the disputed property and assist in ensuring that

the Trust is guaranteed the peaceful atmosphere in carrying out its

intended project on the disputed property. The Sebenso stool further

pledged to assist the Trust in acquiring any right be it legal or social

necessary for the purpose of achieving its corporate objectives in

respect of the disputed property.

By a letter (without prejudice) dated

23rdday of June, 2010 the Legal Services

Manager wrote to the Counsel for NANA

KWADUKESE-KO II (WILLIAM OSEI

KUFFOUR ESQ.) with the Ag. General

Manager/IDD, SSNIT and the Ag. General

Manager/GCD, SSNIT in copy proposed the

following:

The Trust will accept the GH¢10,000.00 demanded by

his client

The Trust will allocate one of the completed buildings to

his client

The Trust will also offer 50 serviced plots to his client

On 24th day of June, 2010, the Trust

attached the proposal made to the Counsel

for the Plaintiff in the suit that was pending

in the High Court, Kumasi against the

Company and the Trust to the Regional

Stool Lands Officer, NANA NSUASE POKU

AGYEMAN III.



2712. The Plaintiff in the suit NANA KWADUKESE-KO II VRS FIDAN

CONSTRUCTION LIMITED and SOCIAL SECURITY AND NATIONAL

INSURANCE TRUST with SUIT NO: C1/233/07 accepted the counter

proposals made by the Trust and agreed that the Terms of settlement

be filed in Court as final terms to be adopted by the Court to end the

suit.

After agreeing to the Terms of settlement by both parties, the

interlocutory injunction order granted by the Court on 23rd

July, 2007 restraining the Trust from the judicial sale of the

mortgaged property to recover the debt of the Company was

therefore vacated on the 20thday of August, 2010 thereby paving

way for the Trust to sell the land and building to recover the

judgment debt.

After the settlement of the said suit, the Legal Services Manager

by a memo dated 7th September, 2010 wrote to the Properties

Manager to have the property revalued at the earliest possible

time so the Trust may instruct the auctioneer to conduct the

sale.

Due to the death of the Court appointed auctioneer (MR. C.A.

ARYEE of CONTRANTCO MART, ACCRA) at the time, and by a

letter dated 8th September, 2010MR. DELA AKPEY of CITY

MART was later appointed to conduct the sale of the land.

Upon MR. DELA AKPEY of CITY MART taking over the auction

process, the Trust received a letter from the Ag. Managing

Director of the Ghana Water Company (MR. KWEKU BOTWE)

alleging that plot numbers 89 and 90 were part of the Odaso

Water supply project by Messrs Biwater in 2000. Therefore, the



two (2) bungalows have since served as duty post for successive

District Distribution and Customer care officers posted to the

District.

After the Ghana Water Company submitted their said

documents, the Trust by a letter dated 30th September, 2011

wrote to the Managing Director of Ghana Water company to

inform him that per the documents submitted, the said

documents were self-serving and it further gave little assurance

as far as their probative value on their title is concerned since

the long adverse possession of GWCL staff in the said 2NO.

Bungalows could not crystallize into ownership of the said

properties.

The Obuasi Municipal Assembly per a letter dated 21st

February, 2011 wrote to MESSRS VALUE PROPERTIES with

the Area Manager, Kumasi (SSNIT) and other people in copy

that they are advised to stop using the unapproved planning

scheme for the allocation and take immediate steps in arranging

a meeting with the assembly for a discussion on the planning

proposal for the area.

Further to the above, the auctioneer by a letter dated 5th

September, 2011 wrote to the Head of Legal, SSNIT indicating

the following:

All housing units on the site had been sold at an auction

and payment is almost completed. He requested if payment

should be made to Court, a cheque should be written in

favor of the Trust or a designated account should be given

to them into which all subsequent sales would be paid into.

Their sales were hampered by 2 key things namely:



the late withdrawal of HFC Real Estate and

the “Stop Sale” letter they received from the Obuasi

Municipal Assembly.

To the above, they proposed the way forward as:

They were holding talks to commence payment for

the land on installment basis into designated SSNIT

accounts

Individuals can only obtain title upon full payment

made to the Trust

There is coordination with Obuasi Municipal

Assembly (hereinafter referred to as “O.M.A”) to

approve permit to build only upon title issued by the

Trust

The O.M.A to rezone or replan the area to conform to

its bye laws.

He further indicated that he had drawn the attention

of the O.M.A to the excess land apportioned to the

Chief in their new re-demarcation

That the auctioneer further notified the Trust that

before the “Stop order” the Chief of Obuasi had

trespassed into areas not allocated to him and sold

substantial portions of the land bordering on his

allocation.

He forecasted that on a monthly basis commencing

from 30th September, 2011 he would be able to remit

to the Trust about GH¢100,000.00 and sales

expected from both serviced and unserviced plots



would amount to GH¢1.5 million cedis before 31st

March, 2012.

Pursuant to the letter written by the

auctioneer to the Trust dated 5th

September, 2011 the Trust per the Legal

Services Manager by a letter dated 8th

September, 2011 directed the auctioneer to

pay the proceeds of the auction sale in the

designated account with the details as

follows:

Account Name: Social Security & National Insurance Trust

Account Number: 01201004300-6

Branch: SG-SSB Bank Limited, Accra Main

By a letter dated 4th November, 2011 by the auctioneer, a draft

payment totalling One Hundred Thousand Ghana Cedis

(GH¢100,000.00) in respect of the properties bought by the

Ghana Police Service at the auction dated 25th October, 2011

was brought to the attention of the Trust.

2713. Payment was however made at the Head Office Branch of the

Trust with receipt number 10520111100118 instead of payment

into the designated account as indicated by the Trust to the

auctioneer. The auctioneer by the said letter indicated that he would

submit to the Trust in due course his auction sales account that

specifies the details.

The Ghana Water Company Limited later on the 27th day of

October, 2010 initiated an action against the Trust, Ghana



Police Service, the auctioneer (Dela Akpey) and Fidan

Construction Limited.

By a memo dated 2nd November, 2011 and reference SS/LD.

Prop 171/V.2 the Legal Services Manager enquired from the Ag.

Properties Manager whether or not the two bungalows of which

the GWCL have sued the Trust and other parties are situate on

the Chief’s land or that of the Trust.

By a memo dated 17th November, 2011 and referenced

DED/SSA.16/295/V.2 the Projects Development Manager wrote

to the Ag. Properties Manager with the Legal Services Manager

in copy that the 2 bungalows for which the Trust had been sued

in the High Court, Accra were not located on the 50-acre land

ceded to the Chief as the bungalows are located around the

transformer right turn from the entrance of the site.

The Projects Development Manager per a memo dated January

5, 2012 with reference number DED/SSA. 16/295/V. 2 further

informed the Legal Services Manager that NANA KWADUKESE-

KO II had gone beyond the 50 plots allocated to him by the Trust

as part of the settlement adopted by the High Court, Kumasi and

has demarcated further portions of the land for sale.

The Legal Services Manager by a memo dated 26th January,

2012 with reference number SS/LD. PROP 171 addressed to the

Projects Development Manager enquired of the extent of

encroachment committed by NANA KWADUKESE-KO II on the

Trust property.



By a letter written by NANA KWADUKESE-KO II dated 22nd May,

2012, NANA KWADUKESE-KO IItitled “PLEAD OF UNSERVICED

PLOTS” expressed his appreciation for the 50 serviced plots

granted him in the terms of settlement which was adopted as

final judgment of the High Court, Kumasi and further pleaded

that the Trust should divide the unserviced plots into two parts

so that the Trust can take one part and he can also take the

other part.

The Trust in reply to the said letter dated 16th August, 2012

declined the request of NANA KWADUKESE-KO II and reminded

the Chief of the terms agreed upon by the parties and further

stated that, from the date of the judgment, the Trust had fulfilled

all its legal obligations under the judgment of the High Court.

The issue was therefore deemed as closed.

By a letter dated 6th May, 2014 referenced SS/LD PROP 171/V.2

the Trust wrote to the auctioneer (MR. DELA AKPEY) to submit

a report on the sale as soon as practicable since the internal

audit of the Trust revealed that after paying the GH¢100,000.00

to the Trust an account on the balance of GH¢1,380,523.79 was

yet reported on by the auctioneer.

The auctioneer responded to the Legal Services Manager’s letter

on 5th November, 2014 stating among other things that:

Upon his assumption as the auctioneer for the property,

no sales had been made by his predecessor.

HFC agreed in principle to acquire the entire property and

that made the auctioneer ceased the sale advertisements

but they later backed out of the said negotiation.



Upon the advertisement one MR. KUMAH (the Principal

Consultant for Value Properties) an Obuasi based property

valuer proposed to buy the whole property for

GH¢900,000.00.

The said offer per the auctioneer was agreed in principle

but the said MR. KUMAH could not make any payment to

show good faith.

While negotiations were ongoing, a letter was received

from the Obuasi Municipal Assembly (O.M.A) prohibiting

the sale since the Town and Country planning scheme had

not been complied with.

The auctioneer indicated that unknown to him, MR.

Kumah had received the new planning scheme from the

Obuasi Municipal Assembly and gone ahead to allocate

plots to prospective buyers.

Several warnings to Mr. Kumah to desist from allocating

the lands proved futile.

The auctioneer indicated that the only sale he made were

as follows:

5 housing units to the Ghana Police Service

2 bungalows to Ghana Police Service

2 housing units to the Obuasi Municipal Assembly

1 uncompleted house sold to the Obuasi Municipal

Assembly

and that all sales were lodged with the Trust and the court

accordingly.



In the process of the sale they were stopped by a writ

issued by Ghana Water Company Limited contesting the

ownership of 2 bungalows of which they were awaiting

the outcome of the said litigation.

He further indicated that he has been informed that 12

acres of the land inquestion has been allocated to the

Chief of Kwabenakwakrom at Asonkore of which he does

not know the boundaries.

He finally indicated that the job of allocating lands to

individuals will be difficult for him since he lacks the

expertise in that field. That the sales in the land had

become difficult for him due to the closure of the Obuasi

mines since most of the workers of the mines had been

retrenched.

He therefore suggested that the Trust repossess the

entire land and allocate same by itself since the Trust

has more expertise in that field.

In conclusion, he indicated that he will in due course

submit his accounts to the Trust for the payment of his

commission as an auctioneer for the work done so far.

The Trust further by a letter dated 16th December, 2014

and referenced SS/LD PROP/171/V.12 invited the

auctioneer to as a matter of urgency submit accounts of all

monies including those lodged in the registry of the Court

he had received for and on behalf of the Trust in respect of

the Trust property at Kwabenakwakrom by 31st December,

2014.



By a memo dated 17th December, 2014 the Legal Services

Manager wrote to the Area Manager, Kumasi for the Estate

Officer in Kumasi to liase with the Obuasi Branch Manager

to identify all the encroachers on the land at

Kwabenakwakrom for prosecution.

The Trust later on the 25th November, 2015 wrote to the

auctioneer titled, “FINAL INVITATION NOTICE TO

ACCOUNT” for him to appear at the office of the General

Counsel, SSNIT on Tuesday the 8th day of December, 2015

and in response to the said letter, the auctioneer replied by

a letter dated 2nd December, 2015 stating that the property

was auctioned at the reserved price of GH¢814,700.00 and

the only sales he made were as follows:

GHANA POLICE SERVICE – GH¢100,000.00

OBUASI MUNICIPAL ASSEMBLY - GH¢80,000.00

As indicated earlier, MR. C.K. KUMAH of VALUE

PROPERTIES stated the then current Open Market

Capital Value of the land as at August 2006 as

GH¢814,700.00.

By a letter dated 22nd April, 2015 Mr. Kumah of Value

Properties wrote to the Trust and he made certain serious

allegations against the auctioneer. Some of these allegations

were that:

They won the bid at a total price of GH¢819,000.00

They obtained the layout for the site which did not

conform to what is existing



That with the auctioneer’s consent and authority, they

ordered a new layout to be prepared by the Municipal

Assembly

That the auctioneer approached them later just when

they were about making payment that 50 plots had been

given to the Chief under the instruction of the Trust

Whilst waiting for the auctioneer to discuss further on

the land they were arranging to make payment of

GH¢100,000.00 by the end of June 2015.

Note must be taken of the fact that the Trust on 1st April 2016

initiated an action in the Circuit Court, Obuasi against the said

Principal Consultant for Value Properties (MR. C.K. KUMAH) and

other encroachers on the subject-matter.

The above is because, the said MR. C.K. KUMAH later without

the consent of the Trust sold portions of the land to encroachers.

By a memo dated 1st September, 2016 from the Investment

Accountant to the Head of Legal Services referenced

SSA/IAD/08/16/05 the Investment Accountant informed the

Head of Legal Services that the aggregate sum of GH¢100,000.00

with cheque numbers 354692 and 354693 paid at the Pension

House branch of the Trust on 4th November, 2015 by MR. C.K.

KUMAH were dishonoured.

Counsel for the Defendants on the11th day

of March 2019 and 12th day of April, 2019

prayed the Honourable Circuit Court for

adjournments so they discuss an out of

Court settlement with the Trust.



By a letter dated 15th May, 2019 the lawyers

of Mr. Kumah and the other defendants

wrote to the Legal Services Manager to

schedule a meeting for the amicable

settlement of the matter.

That on 17th May 2019 the team from the

Trust comprising the Ag. Legal Services

Manager, Mr. William Fearon (Lands

Officer) and Ms. Priscilla Osei Amponsah

(Legal Officer) from the Legal Department

met Mr. Kumah and his Counsel.

That Mr. Kumah indicated that he wanted

to pay for the reserved price of the land

which was quoted in 2015 as

GH¢814,700.00 minus certain works he

claimed to have done on the said land.

That the representative of the Trust duly

informed Mr. Kumah that we were not

aware of any work done by him since all

cost on the land were borne by the Trust.

Mr. Kumah further indicated his interest in

still acquiring the plots at Kwabenakrom

which he accepted were owned by the

Trust.

The team from the Trust therefore informed

him that they needed to revalue the land to



ascertain its current value in order to

properly deal with Mr. Kumah and the

other Defendants.

Surprisingly, by a letter dated 4th July,

2019, Mr. Kumah enclosed 2 cheques from

Standard Chartered with cheque numbers

379757 and 379758 in the total sum of

GH¢50,000.00 indicating that it is his sign

of good faith in purchasing the land.

The Trust responded to his said letter by

returning his cheques to him with the

explanation that he had to wait till the

conclusion of the revaluation exercise so

that the Trust can meet with him and see

the way forward.

Note must be taken of the fact that, the

Trust had to return his cheques to him due

to:

His credit unworthiness (since his cheques were

dishonored earlier)

His dubious nature

We have since August 6th, 2019 requested

the Properties Manager, Cluster “C” to have

the land revalued for the parties to continue

with the out of Court settlement if possible.



The Trust has taken all the necessary steps

to recover the amount due since the court

judgment and the above proceedings affirm

that we are serious in the recovery of the

debt.”

Procurement of Management Furnishing without alternative quotations -GH¢990,637.58 2714. Section 20 of the Public Procurement (Amendment) Act, 2016

(Act 914) states “The procurement entity shall request for quotations

from as many suppliers or contractors as practicable, but shall

compare quotations from at least three different sources.”

2715. Contrary to the above provision, Management used single

quotation to procure furnishing for qualified Management officers’

dwellings, instead of obtaining 2 other alternative quotations for

price comparisons and value for money considerations. The total

supplies paid for using single quotation for 2017 and 2018

amounted to GH¢990,637.58. The table 293 provide a summary of

the procurements.

Table 293: Summary of Procurement of Management furnishing without alternative quotations Year Amount Remarks

2017 323,515.00 Single quotations used in 41 transactions

2018 667,122.58 Single quotations used in 38 transactions

Total 990,637.58



2716. Management explained that they did not see the need to use

3 quotations since the assets will eventually be transferred to the

officers.

2717. The practice has rendered the procurement processes

uncompetitive with no consideration for obtaining value for money.

2718. In order to ensure value for money, we urged Management to

ensure compliance with rules and regulations governing

procurements of public funds in procuring furnishing for

management dwellings meanwhile the officers involved in the breach

of the act should be sanctioned in accordance with section 92 (1) of

the Public Procurement Act.

Management Response

2719. Management agreed to our recommendation and stated that,

the “GM Finance has written to General Service Manager to ensure

at least 3 Proforma invoices/quotations are submitted/attached by

staff applying for Management Furnishing facility to ensure price

comparisons.”

Non-recovery of loans from Related Companies-GH¢2.38

Billion






2721. We noted during our review of loan portfolio that the Trust

granted various loans amounting to GH¢2,379,233,073.10 to the

under listed related companies as at 31/12/2018.



2722. These companies have defaulted and Ridge Royal is also likely

to default because it started full operations in 2018 and its revenue

would not be able to service the loans per the agreed terms. The

detail of the Loans is shown in Table 294.

Table 294: Non-recovery of loans from Related Companies

DATE OF THE

LOAN

INVESTEES PURPOSE DURATION OF DEBT

EXPECTED LAST DATE

OF REPAYMENT

AMOUNT IN LOAN

CURRENCY ($)

AMOUNT IN LOAN CURRENCY (GH¢)

BALANCE AS AT 31/12/2018

SECURITY REMARKS

27/4/20012

ALU-WORKS To acquire second cold mill

6yrs, 3yrs moratorium at 2y treasury note +300 basis point

20/8/2018 10,000,000.00 82,292,211.73 Letter of understanding, Debt service accounts for redemption of the bond

Defaulted in all installments

Sub total 82,292,211.73

11/1/2011

RSS Developers Limited 1

To fund RSS housing development

4yrs including 1yr morat.

16-Mar 50,000,000.00 174,151,528.00

12/11/2012

RSS Developers Limited 2

To fund completion of the Meridian Garden Project

7 yrs including 2yrs Mora.

Dec. 2020 115,000,000.00 424,962,036.45 Asset of the Proj.

Has not paid any amount due

4/11/2014

RSS Developers Limited Bridge

To fund construction of bridge and cary out dredging works at the housing development project. At Klagon, Accra

4yrs 6months with full tenur of 7 yrs

17,000,000.00 53,132,645.90 Floating Charge and Fixed Charge on the Land and Building of Borrower Land Building at Klagon

Restructure 3 times. Interest calculation stop on 31/12/2015

Sub total 652,246,210.35

28/9/2011

CENIT Investment Limited

To fund the Gas turbine Generator and to pay creditors and mobilized.

10yrs inclusive of 2yrs morat

Sept. 2021 122,000,000.00 949,419,664.17 No Security mention

payments in arrears

22/12/2013

CENIT Investment Limited - Supp.loan

To augument the borrower working capital

3yrs inclusive 1yr morat

18-May GH¢109,222,699

430,983,240.17 Fixed and floating Charge over the assets of the borrower

Sub total 1,380,402,904.34

11/12/2009

Intercity STC Coaches Limited (Loan 1)

To settle the judgement debt and interest thereon owed by

4 years (1 year moratorium period)

14-Jan 1,737,852.98

2,811,440.00 The Borrower's Head Office buildings which land and buildings belong to the Company



the Borrower to the creditor company.

situated at Ring Road West Industrial Area, Accra.

16/10/2012

ISTC Coaches Limited (Loan 3)

To make payment of staff salaries


15-Dec 2,500,000.00

6,523,760.00 Fixed and floating charge on the assets of the Borrower in favour of the Lender

16/10/2012

ISTC Coaches Limited (Loan 3)

To make payment of staff salaries


16-Oct 1,660,000.00


Sub total 16,403,165.47

29/05/2012

NTHC - Cocoa Takeover Receipt

To finance the internal cocoa marketing sector and factoring Licensed Buying Companies' CTORs

5 years 17-Jun 40,000,000.00 182,656,844.18 charge over both Cocoa Take-Over Receipts and (CTOR) and the Borrower's Debt Service Account with ring-fenced Receivables in favour of the Lender.

Sub total 182,656,844.18

22/08/2014

The Trust Logistics Ltd (a)

To procure bulk haulage vehicles and tankers.

5 years (18 months moratorium period) from the date of disbursement.

19-Sep 5,000,000.00


The Company has not made any instalment after the expiration of the Mporatorium period of eighteen (18) months on both Principal and Interest repayments.

6/11/2014

The Trust Logistics Ltd (b)

To procure bulk haulage vehicles and tankers.

5 years (18 months moratorium period) from the date of second disbursement

1,242,690.00 3,974,992.50

Fixed and floating charge on the assets of the Borrower in favour of the Lender

Sub Total 22,857,468.43

17/09/2014

Kumasi Abattoir Company Limited

To fund the completion of the payment of the processes leading to the perfection of the


17-Sep 1,000,000.00

1,253,234.81 The land to be perfected and the land on which the Company's premises is situated.



Company's title to its land.

Sub Total 1,253,234.81

21/07/2000

Oguaa Hotels Limited (Loan 1)

To be utilised for the rehabilitation and expansion of the Catering Rest House in Cape Coast owned by the Borrower.

6 years (1 year moratorium) in monthly instalments. The moratorium on both principal and interest repayments during the period of rehabilitation of the hotel and initial six (6) months of operation after rehabilitation.

25-Feb 255,000.00

24,834,460.00 secured by a mortgage to the Trust of the land/building on which the project is sited and other assets of the company.

28/09/2012


To partly finance the completion of the Ridge Royal Hotel Project and construction of thirty-eight (38) additional guest rooms.

10 years (1 year moratorium period after commissioning of the Hotel).

Feb-29 3,370,299.00 12,876,000.00 Fixed and Floating charges on the assets of the Borrower in favour of the Lender.

30/09/2016


To finance the completion of the Ridge Royal Hotel.

10 years (1 year moratorium period after commissioning of the Hotel).

Feb-29 1,911,374.98

2,030,050.00 the Ridge Royal Hotel to be completed shall be the collateral

Sub-total 39,740,510.00

Grant Total 2,377,852,549.31

2723. In our view, the Trust did not carry out effective due diligence

on the investments and this has put serious financials stress on the

Trust. This could lead to loss of Pensioners’ funds.

2724. We recommended to Management to improve on the Trust’s

loan granting processes and also ensure that the loans are fully

recovered.



Management Responded that;

i. ALUWORKS LIMITED

Effective due diligence not carried out

2725. “Due diligence on the viability of the project was undertaken

before the facility was granted. The loan facility was granted to build

a new cold mill to improve the company’s production, given the old

mill had deteriorated and become obsolete.

2726. The project was adversely affected by government’s trade

liberalisation policy when the new cold mill was completed. This

resulted in a huge influx of cheaper Chinese and Indian products

that benefitted from export rebates in their home countries.

2727. The recent reduction in tariffs at the ports has also adversely

affected Aluworks.

2728. In order to reduce the debt burden owed to SSNIT the first

phase of the restructuring of Aluworks, involved the swap of land for

debt and working capital.

2729. Subsequent to this, and as part of the second phase of the

proposed restructuring, the Board of Aluworks Limited has given its

consent to a Subscription Agreement between Caitlyn Limited (a

20% equity shareholder in Aluworks) and Aluworks Ltd, for the

purchase of additional shares in the company.

2730. The funds from this transaction will primarily be used to

retire a significant portion of the SSNIT debt and the remainder,

restructured into a seven-year loan. This transaction is yet to be

approved by the SSNIT Board.



2731. SSNIT Management is also considering other options which

will help resolve the debt issue and provide the needed injection of

external capital into the company.

ii. RSS DEVELOPERS LIMITED


2732. “RSS Limited is a joint venture company (JV) formed by SSNIT

and Regimanuel Gray Limited (RGL) in 2009. The goal for the

formation of the Company was to combine the expertise of

Regimanuel in the real estate sector with SSNIT’s financial strength

to develop high class residential, commercial and industrial

properties in Accra (Klagon & Sakumono) and Kumasi (Asuoyeboah).

2733. Due diligence was conducted on the viability of the project

and found to be viable at the time. However, in the course of

implementation, there was a downturn in the economy coupled with

a significant change in the project concept at the company level. A

number of real estate developers were caught in the unexpected

economic slowdown. This created a glut in the market of the types

of housing units being built by RSS.

2734. The significant change in the scope of the project at the

company level resulted in the project cost being significantly

different from the originally estimated cost.

An asset-liability matching exercise has been done following

which SSNIT Board approved the swap of debt owed SSNIT by

RSS with completed housing units.

An Extraordinary General Meeting (EGM) has been held by the

company and the shareholders have agreed to the swap.



The Trust is putting in place a new Investment Policy and

Guidelines document to guide such future transactions. The

document contains stricter and more rigorous processes. In

this regard, any change in project scope at any joint venture

company level that causes a change in the project’s financials

as approved should be referred back to the SSNIT Board for

consideration before implementation.

The SSNIT Board has also directed that, in future, SSNIT shall

not enter into any joint venture agreement where a partner in

the JV will be the contractor for the project the JV is to

undertake.

A value-for-money audit of the entire project has been

commissioned. The draft report has been received and is

currently being studied. Recommendations from the report

would also guide the Trust on the way forward.”

iii. CENIT ENERGY LIMITED (CEL)


2735. “The investment in CEL was undertaken when the country

had a huge power crisis with insufficient generation capacity. The

loan to CEL was part of the capital structure during SSNIT’s initial

investment in the company, which was duly evaluated. The capital

structure was to ensure that, SSNIT would be able to recoup a

greater proportion of its investment early rather than being locked

in the equity of the company.

2736. Since then, a lot more power plants with relatively ‘cheaper’

tariffs have been built which have increased the country’s generation



capacity and made CEL uncompetitive. CEL has therefore fallen

down the pecking order for dispatch by the national grid.

SSNIT negotiated with the Government and swapped part of

the ECG debt owed CEL for ESLA Bonds. CEL has pledged its

outstanding US$100 million ESLA bonds to SSNIT. In

addition, CEL plans to add any other bonds that Government

would issue for the company’s outstanding indebtedness to

SSNIT. Interest on the ESLA bonds currently held by CEL has

therefore, started financing repayments of the outstanding

debt.

CEL is in discussions to enter a gas purchase agreement to

begin operations in order to improve the finances of the

company and be able to settle any outstanding debt due

SSNIT.”

iv. INTERCITY STC COACHES LIMITED

Effective due diligence not carried out Loan 1

2737. “This was due to judgment debt against ISTC in favour of the

creditor SVANI Limited. ISTC which is 80% owned by SSNIT was not

in a position to pay the debt so SSNIT stepped in to settle the debt

on the company's behalf.

Loan 2

2738. This was also due to judgment debt against ISTC in favour of

the creditor National Investment Bank (NIB). ISTC which is 80%

owned by SSNIT was not in a position to pay on their own, and the

bank was going to auction the assets of ISTC to recover their loan.



SSNIT therefore stepped in to settle the debt on the company's

behalf.

Loan 3

2739. This was due to ISTC not being able to pay staff salaries for a

period. This led to staff agitation in the period leading up to the 2012

Christmas. ISTC being 80% owned by SSNIT, the Trust thought it

prudent to step in and salvage the situation so as to avoid the

looming reputational damage in the media.

SSNIT is in discussions with the Board and Management of ISTC

on how all the outstanding loans and shareholder advance will

be repaid over a period of time.

An agreement with a repayment schedule is yet to be firmed up.

ISTC has currently prioritised the servicing of its debt obligations

to the Government.”

v. NTHC (COCOA TAKE-OVER RECEIPTS)


2740. “The SSNIT Board, at its 249th meeting held on 18th January,

2012, approved a loan facility of US$40 million (Ghana cedi

equivalent) to NTHC. The Company failed to honour its obligations

as expected under the Loan Agreement, due to its liquidity

challenges then but made unscheduled periodic payments on

account.

2741. The Company made part payments of payable instalments,

totalling GH¢34,640,337.68 over the period, April 2013 to November

2015.



The SSNIT Board of Trustees, at its meeting held on 31st

October, 2017, directed that part of the outstanding debt be

converted to equity to achieve 75% holding, and the balance

be converted into preference shares.

The equity conversion has been concluded and processes are

underway to convert the loan balance to preference shares.

There have been a series of meetings and negotiations between

managements of both SSNIT and NTHC on how to recover the

debt.

NTHC is being restructured and a Special Purpose Vehicle

(SPV) is being set up to house the debt. The company is in the

process of retrieving some of the debts within the SPV through

the Courts.”

vi. TRUST LOGISTICS LIMITED

Due diligence not carried out 2742. ‘Trust Logistic Limited was formerly the bulk haulage division

of STC till it was split in 2012. There was no injection of equity

capital into the company at its inception (i.e. after the split in 2012).

The Trust therefore granted a loan of GH¢5,000,000 to the company

in September 2014 and a top-up facility of cedi equivalent of

US$1,242,690 in November 2014 for procurement of haulage trucks

for their operations.

2743. The company paid interest of GH¢246,291.21 in December

2014. The two loans were eventually consolidated and covered by a

Consolidated Loan Agreement in March 2017.



There are ongoing discussions to convert SSNIT’s existing

loan (i.e. the consolidated loan balance) with Trust Logistics

Limited into equity in the company.

In order to improve the finances of the company, new

management has also been introduced and a new strategy

is being put in place aimed at better utilisation of land and

other assets.

The company’s land has been physically secured and title is

being perfected to facilitate the new strategy.”

vii. Kumasi Abattoir Company Limited (KACL)

2744. “The loan was advanced by SSNIT to Kumasi Abattoir

Company Limited to primarily perfect the company’s land title. This

was to prevent the repossession of the land by the owners due to

non-payment of the relevant fees. The aim was that, the perfection

of title would enable the company use its assets to acquire a loan for

the refurbishment of its equipment and as working capital.

KACL has appealed to SSNIT to convert the loan into preference

shares which is yet to be considered by the Trust.”

viii. Oguaa Hotels Limited

2745. Oguaa Hotels Limited was incorporated in January 1993 as a

limited liability company under the Companies’ Code (Act 179) to

acquire the then Cape Coast Catering Rest House, which had been

put on divestiture by the Divestiture Implementation Committee

(DIC).



Loan 1

2746. Per the Loan Agreement dated 26th May, 1995, the Trust

granted a loan facility of GH¢175,000 to the company. Another loan

facility of GH¢80,000 was approved for the company in April 1999.

The loans were disbursed in tranches over the period December

1995 to September 1999 to pay consultancy fees and approved

certificates of works executed on the Project.

2747. The two loans were consolidated and covered by a

Consolidated Loan Agreement dated 21st July, 2000.

2748. The project was stalled for nine years (i.e. from 11th January,

2001, to 31st December, 2009) due to delay in the payment of the

Trust’s portion of the 3rd call on shares. Interest on the loan was

frozen over the nine-year period.

Loan 2

2749. The SSNIT Board, at its 253rd meeting held on 23rdMay, 2012,

approved additional loan facility of Ghana cedi equivalent of

US$3,370,299 to the company for the completion of the Project and

construction of 38 additional guest rooms.

2750. The facility is covered by a Loan Agreement dated 28th

September, 2012.

Loan 3

2751. The SSNIT Board, at its 295th meeting held on 16th August,

2016, approved another loan facility of GH¢1,911,374.98 for the

following cost variations on the project:

Electrical installations (Project cost variations) -

GH¢1,097,218.98.



Mechanical works (Project cost variations) - GH¢814,156.00.

The facility is covered by a Loan Agreement dated 30th

September, 2016.

The Hotel was commissioned for full operations in February

2019. The loan facilities are currently in moratorium.

However, the loan balances were recently reconciled with the

Management of the company.

The Trust will issue the first demand notice for payment of

the first instalment in September 2019.

A new CEO is being recruited by the Board of the hotel, and

corporate objectives have been set for the company to

improve its occupancy and performance significantly”.

Losses in Investing in Government Affordable housing-

GH¢80.9Million

2752. “In December 2014 the Government of Ghana acting through

Ministry of Work and Housing (MW&H) entered a Memorandum of

Understanding with SSNIT to complete the Affordable Housing

Project at Borteyman, which were at various stages of completion.

Also, per the agreement SSNIT was to provide the necessary funding

(US$102million) for the completion of the 104 blocks of flats

containing 1,536 apartments.

2753. Again, SSNIT engaged Ghana Institute of Surveyors (GhIS) to

determine the Market prices for the SSNIT Borteyman Affordable

Housing Project. GhIS suggested 3 mode of pricing, Cost plus profit

approach (which considers only the cost of the project.), Market

approach pricing and Cost-plus subsidy pricing.




2004, requires a head of department to ensure that moneys are

utilised in a manner that secures optimum value for money.

2755. Management stated that the total expected cost of the project

to be GH¢256,934,609.00. The Surveyors were of the view that the

cost of the projects was high as compared to comparative housing

offered by the private sector, especially when cost of land, cost of

capital, design cost and all other cost incurred up to the point of

transfer were not factored into the cost build up. The detail of the

cost is shown in Table 295.

Table 295: Detail of the cost for the Affordable housing

2756. After comparing the sales price to the prices by GhIS, based

on full cost pricing recovery model, the Project is expected to make

a total loss of (GH¢80,914,176.00). The detail of comparison is

shown in Table 296.

Table 296: Comparison of the sale price to the prices by GhIS

1 Main Building 109,875,688.00

2 Building Services 34,540,648.00

3 Infrastructure/Community

facilities

98,623,250.00

4 Maintenance and Consultancy 13,895,023.00

Total Cost 256,934,609.00

HOUSE TYPE

Description Selling Price

(GH¢)

Cost Base Pricing

(GHIS) (GH¢)

Loss Per Unit Sold

(GH¢)

Units To Build As Indicated

In The Feasibility Report

Total Loss

GH¢

A 1 Bedroom (Regular)

87,000.00 135,352.00 48,352.00 248 (11,991,296.00)

A1 1 Bedroom

(Special)

119,900.00 174,024.00 54,124.00 496 (26,845,504.00)

B 2 Bedroom 149,900.00 203,028.00 53,128.00 792 (42,077,376.00)

Total 155,604.00 (80,914,176.00)



2757. The total expected loss of GH¢80,914,176.00, could erode

pensioners’ funds.

2758. We recommended to Management of SSNIT to ensure that,

there is always opportunity for competition in the delivery of housing

Units to the Public as this will ensure value for money. We further

recommended to Management to review the selling prices upwards

to minimise the expected losses.

2759. Management Responded “Government of Ghana through the

Ministry of Water Resources Works and Housing (MWRWH)

commenced implementation of housing in 2005 under the

Government of Ghana Affordable Housing Project including the site

at Borteyman - Nungua, Accra. However, the project was abandoned

in 2008 and consequently, Government of Ghana handed over the

project to SSNIT for completion on 25th March, 2014.

State of Project Handed Over

2760. The state of the project before the Trust took over from

MWRWH included the following:

1. Infrastructure had been partly done but had deteriorated

over the period that the project had stalled. There was

further deterioration once construction resumed and heavy

trucks started plying the roads.

2. Cables installed under electrical services in some of the

flats had been pilfered.

3. Remedial works were required for many blocks. For

instance, deeply corroded reinforcement which had lost

significant sections needed to be replaced. Some concrete

members had also developed honeycombs.



In view of the above, some of the works already implemented and

paid for by MWRWH, needed to be redone.

Key Observations 1. The audit’s conclusion of an expected total loss of

GH¢80,914,176.00 is based on the total expected cost of

GH¢256,934,609.00.

2. Additionally, the audit concludes that the cost of the

project, except for the delay, is also due to the strategy used

to select contractors for the works.

Clarification 2761. The total expected cost of GH¢256,934,609.00 consist of the

following in table 297

Item Description Amount

(GH¢)_

1. Main Buildings 109.875,688.00

2. Building Services 34,540,648.00

3. Infrastructure/Community

facilities

98,623,250.00

4. Maintenance and Consultancy 13,895,023.00

5. Total Cost 256,934,609.00

2762. The amount of GH¢98,623,250.00 for infrastructure and

Community facilities is detailed in table 298

ITEM DESCRIPTION COST (GH¢) SUB-TOTAL (GH¢)/ REMARKS

1 External Power Supply/Street Lighting

21,800,979.23 58,866,846.11

2. Construction and

Completion of Water

Distribution Mains, Water

Tank and Pump

Installations

12,029,467.71



3. Access Road, Slip Road,

Internal Access Roads,

Rehabilitation of Internal

Roads and drainage

23,019,304.17

4. Civil works and walkway

along internal roads (A & G)

2,017,095.00 Infrastructure to be

absorbed by Government of

Ghana (A)

5 School 10,720,003.65 21,525,456.03

6. Shopping Mall 10,805,452.38 Cost of Community

facilities to be sold to

recoup funds (B)

- 80,392,302.14

C=(A+B)

7. Police Station 848,706.04 18,230,937.98

8. Management Office Suite 1,180,677.64

9. 4 No. Communal Car Parks 2,591,419.04

10. Sewer Network 3,494,239.34

11. Central Sewage System 10,115,895.92 Other community facilities (D)

Total 98,623,240.12 98,623,240.12

2763. In line with item 2.8 of the Memorandum of Understanding

(MOU), dated 22nd December, 2014, between SSNIT and the

Government of Ghana (Acting per Ministry of Water Resources

Works and Housing), the ‘Government shall provide access roads

including offsite roads from the Motorway and Ashaley Botwe and

extension of utility services such as water and electricity to the

project site at no cost to SSNIT.’ Accordingly, the referenced costs

(for roads and utility services to site), though already incurred by

SSNIT, are to be absorbed by the Government of Ghana.

2764. The cost for community facilities such as the Basic School

and Shopping Mall are also to be recouped through the sale of those

facilities, independent of the blocks of flats. It is worthy of mention



that, there is scope to sell the basic school and shopping mall at

market values above the respective construction cost.

2765. Per the initial strategy for the implementation of the project

under MWRWH, the Project Consultant was responsible for the

appointment of Contractors who were also provided with a price

schedule. Consequently, Contractors’ rates for same work items

were standardised.

2766. Subsequent to the handing over of the project to SSNIT for

completion, the Trust proceeded in the same manner. Against this

background, contracts of non-performing Contractors at the time of

take over as well as subsequent novation of contracts of defaulting

Contractors, have progressed with Contractors nominated by the

Project Consultant.

2767. SSNIT is in discussion with Government of Ghana to make

good its obligation as stated in the referenced MOU.

Due approval was granted by the PPA for the novated

contracts and a follow-up request has been made to the PPA

for the approval of the engagement of some of the performing

contractors on the Completion of Government of Ghana

Affordable Housing Project, to complete the remaining

outstanding works.

As planned, an updated valuation of the apartments will be

undertaken to ascertain the current market values, and a

revision of the selling prices made if necessary”.

Overpayment of Loan by Krachi East District Assembly GH¢206,141.52

2768. The District Assemblies’ Common Fund (DACF) is a pool of

resources created under Article 252 of the 1992 constitution of



Ghana. The Common Fund is a development Fund that is intended

to ensure equitable development of the various Assemblies in the

country.

2769. The SSNIT Board at its 210th meeting approved a loan of

GH¢2,000,000.00 payable within 10years to Krachi East District

Assembly to construct a market complex in Dambai in the Volta

Region.

2770. Reconciliation and investigation carried out by the Fixed

Income and Financial Advisory Services (FI&FAS) and Investment

Account on this investment indicated excess receipt of

GH¢206,141.52. The overpayment was as a result of direct

payments made by the District Assemblies Common Fund upon a

request by the President to settle the outstanding debt to SSNIT on

behalf of Krachi East District Assembly.

2771. The anomaly could be attributed to the delay in deciding by

Management to either transfer the overpayment to DACF or Krachi

East District Assembly.

2772. Funds for the development of the Krachi East District

Assembly has been locked up with SSNIT.

2773. We advised Management to ensure that the overpayment of

GH¢206,141.52 is appropriately refunded to Krachi East District

Assembly.

2774. Management responded that “The reconciled overpayment

figure is GH¢442,461. The delay in refunding the overpayment to

the appropriate party is not attributable to SSNIT. The parties

involved i.e. Krachi East District Assembly and the District

Assemblies Common Fund have not agreed on the party to whom



the refund should be made. SSNIT has sent out several invitations

to both parties for a meeting to resolve the issue. They are yet to

respond.

2775. Management is therefore awaiting the two parties to resolve

the issue for the refund to be effected.”

Payment to 11 Officers with Forged Certificates after Probation

GH¢593,726 Section 248 of the Criminal Offences Act 1960, Act 29 states

“Whoever, in order that he may obtain or be qualified to act in any

public office or to vote at any public election makes, signs,

publishes, or uses any declaration, statement or oath, required by

law in such case, or any certificate or testimonial as to his conduct

or services, or as to any other matter which is material for the

obtaining by him of such office, or for his qualification to act in such

office or to vote at such election, shall, if he does so, knowing that

the declaration, statement, oath, certificate, or testimonial is false in

any material particular, be guilty of a misdemeanour”.

2776. Eleven (11) members of staff were dismissed in 2017 and

2018 for using forged certificates to gain employment in the Trust.

Our review also disclosed that, they were paid salaries for periods

ranging from 2 to 12 months after serving their probation term. We

noted that the dismissed staff received salary and lump sum

payment from their contribution to staff benefits Schemes of the

Trust, totalling GH¢840,502.38. The details of dismissed staff with

the respective salaries paid them during the period of employment

are shown in table 299:



Table 299: Payment of 11 Officers with Forged Certificates

S/N

Employee Number

Name Units Termination Date

Period Of Payment

Total Salary Paid

(GHc)

Lump Sum From Other

Benefits

Total Payment

After 6months

Probation(GH¢)

1 2017-081 Sackey, Mr.

Emmanuel

IT Applications

Management

8-Feb-18 31-Jan-2017 to 31-

Jan-2018

77,931.43 6,472.35 51,500.44

2 2015-021 Kwakye, Mr. Patrick

Kwasi

Bawku 14-Mar-18 30-Nov-2015 to 31 –

Mar-2018

71,699.11 59,124.01

3 2015-019 Afaglo, Dr.

Caleb Kwaku

Office of the

General Manager MIS

31-Aug-17 31-Oct-

2015 to 31-Jul-2016

250,640.42 72,718.59 206,129.96

4 2016-285 Donkor, Ms. Joyce

Abena

Investment Accounts

Department

31-Oct-17 31-Aug-2016 to 31-

Oct -2017

78,281.55 11,136.45 60,868.20

5 2016-280 Asmah,

Mr. Jevanael

Anael Anthony

Final

Accounts

2-Nov-17 31-Aug-

2016 to 31 –Oct-2017

78,281.55 6,810.33 56,542.08

6 2016-020 Obuoba, Mr.

Lawrence

Breman Asikuma

31-Oct-17 31-5-2016 to 31-Oct-

2017

40,618.91 2,702.38 32,706.36

7 2016-137 Okine,

Mrs. Susuana

Accra

Industrial Area

31-Oct-17 31-Aug-

2016 to 31-Oct-2017

78,281.55 7,436.45 57,168.20

8 2017-062 Adiok, Ms.

Jennifer

Adum 31-Mar-17 31-Jan-

2017 to 31-Mar-2017

16,326.09 1,263.25 1263.25

9 2017-013 Dzokoto, Mr. Eric

Adum 4-Oct-17 31-Jan-2017 to 30-

Sept-2017

49,480.59 4,388.71 20,965.96

10 2017-147 Bannerma

n, Ms. Brenda

Corporate

Affairs

4-Oct-17 31-Jan-

2017 to 30-Sept-2017

49,480.59 4,388.71 26,491.71

11 2017-084 Boh, Ms. Sylvia

Kade 4-Oct-17 31-Jan-2017 to 30-

Sept-2017

49,480.59 4,388.71 20,965.96

Total 840,502.38 121,705.93 593,726.13

2777. We further noted that the appointments of all the dismissed

staff, except Dr Afaglo Caleb Kwaku were terminated after

confirmation of their forged certificates.

2778. Dr Afaglo’s appointment was not immediately terminated

after the Trust established from a confirmation received on 15th

January 2016 from the University of Cincinnati, Ohio USA and



Georgia University of Technology USA that his two certificates were

not authentic.

2779. However, Management in a letter dated 26th May 2016 with

reference No. DG/MIS/SSA/V.1/002 confirmed the appointment of

Caleb K. Afaglo as the General Manager of Management Information

System (MIS) despite the response from the University until his

dismal in August 2018.

2780. Management subsequently computed and paid other

entitlements totalling GH¢121,705.93 due the dismissed staff.

2781. We attributed this to the failure by the Human Resource

Department to confirm certificates of all the newly appointed staff

during staff probation period and Management failure to adhere to

Section 248 of the Criminal Offences Act 1960.

2782. This led to loss of the Trust’s funds through wrongful

payment of salaries and benefits totalling GH¢ 962,208.31 to

unqualified persons.

2783. We recommended that Management should improve its

recruitment processes including confirming staff certificates during

probation periods to avoid loss of public funds. We urged

Management to institute criminal proceedings against the affected

officers

2784. Management Responded that they have already instituted an

improved recruitment process including:

a. Vetting of staff certificates shortly after engagement.



b. Rigorous follow ups to make sure awarding institutions of

certificate provide feedback before staff probationary period

ends.

2785. Monies paid to dismissed staff are monies due them i.e.

a. Employee Contribution to SOS

b. Union Leave Balance

c. SSA Welfare Balance. Attached for your information are

copies of Entitlements Payments to staff affected. These

payments could not be deemed as “End of Service Benefits”

2786. We stand by our earlier recommendations.

Weak Security in the Oracle Database

2787. ISO/IEC 27002:2013(6.1.1) issued by International Standard

Organisation (ISO) requires that all information security

responsibilities shall be defined and allocated. This is to ensure that

user and group access levels to server are secured and these

accesses are securely managed.

2788. Oracle 11g installation comes with default accounts and

passwords to enable database administrators to have full control

over the database for initial configuration and setup.

2789. Based on the stated ISO standard, Oracle recommends

certain actions to be taken on the default accounts after the initial

setup of the database. These actions in order of preference include:

Drop the user account

Lock the user account

Change the default password



2790. Our audit disclosed the following security lapses in the

system.

a) Five (5) default accounts are still left opened in the database.

These accounts still maintain their default passwords in the

database. Two of these accounts have system administrative-

like privileges. This means that these accounts can give anyone

full access to the Oracle database to make changes, create or

drop a table and so on. These accounts and passwords are

known publicly.

b) The default oracle sample schemas SCOTT and OE were also

found to be in the database. Oracle sample schemas are not

needed for the operation of the database.

c) SSNIT still maintain Oracle DEFAULT profile account which for

instance gives a user account unlimited password usage,

password life time, CPU per call or session. This weak oracle

default profile policies do not reflect the security policies of

SSNIT.

d) SSNIT continues to use the Oracle DEFAULT port number 1521

to connect to the Oracle database server. This number can

easily be known on the internet.

2791. The anomaly is as a result of the laxity of the Oracle

Consultant and Database Administrator(s) to ensure that proper

oracle database security management practices are adhered to as

required per best practice.

2792. These publicly known default accounts and port numbers

expose SSNIT system to unauthorised access. Also, the continual

usage of the default policies of the default profile allows poor



password security policies and encourages a single application or

user to consume excessive CPU or system resources. This may result

in weakening database performance and cause denial of service to

the Oracle database.

2793. We recommended to Management to ensure that these default

accounts are locked or password changed. Default profile policies

should be reviewed and necessary amendment made to reflect

SSNIT’s security policies and ensure that users profile settings have

appropriate values set for the particular database and application.

Management Response

2794. Management response is shown in table 300.

Table 300

BULLET NO.

AUDIT FINDING COMMENT

1 Five (5) default accounts are still left opened in the database. These accounts still maintain their default passwords in the database. Two of these accounts have system administrative-like privileges. This

means that these accounts can give anyone full access to the Oracle database to make changes, create or drop a table and so on. These

accounts and passwords are known publicly.

The Oracle systems/databases were deployed and managed by an external vendor and the system configuration documentation has not been submitted to SSNIT. Additionally, the technical staffs are not adequately trained to maintain the deployed

oracle systems. Network controls have however been deployed to mitigate any potential risk.

Subsequent to the recommendation of the external auditors, the passwords for the five (5) default accounts have been changed.

2 The default oracle sample schemas SCOTT and OE were also found to be in the database. Oracle sample schemas are not needed for the operation of the database.

The SCOTT and OE Schemas existed in our environment; however, they did not have any access privileges in our production environment. Notwithstanding this, these accounts have been locked.

3 SSNIT still maintain Oracle DEFAULT profile account which for instance gives a user account unlimited password usage, password life time,

A new profile has been created and all non-oracle database defined and EBS schemas have been assigned to this profile.



CPU per call or session. These weak oracle default profile policies do not reflect the security policies of SSNIT.

Additionally, the default profile has been altered in line with best practice. Finally, the five (5) user-created schemas namely POPO, JOE, NICKY, MARTIN, and

JOACHIM have been locked. We have also revoked DBA role from POPO, JOE, and JOACHIM.

4 SSNIT continue to use the ORACLE DEFAULT port number1521 to connect to the Oracle database server.

This number can easily be known on the internet

This is one of the issues that SSNIT identified in the past. We are unable to change this port at the database level because it is being used

by the oracle applications. However, a mitigation strategy has been implemented on our network firewalls to BLOCK all network connections to this port while we await the engagement of a new vendor to help in the resolution of these issues.”

Absence of Actuarial Valuation Report of the Trust 2795. Section 53(1) of the National Pensions Act 2008, Act 766,

states, ‘the Trust shall obtain actuarial valuations from an external

actuary;

a. at intervals of not more than one year or, if obtained for

the intervening years, at intervals of not more than three

years, and

b. in other circumstances and on other occasions that may

be prescribed by the Authority.”

2796. On the contrary, we noted that the last actuarial valuation of

the Trust was obtained using its 2014 Financial Statements. Per the

reference of Section 53(a) of Act 766, the actuarial valuation of the

Trust should have been done by the end of 2017. Our further review

disclosed that as at December 2019, Management of SSNIT has not

undertaken the actuarial valuation of the Trust. This is 5 years after

the last valuation.



2797. We attributed the anomaly to the fact that Management of the

Trust delayed in publishing its financial statements and contracting

external actuary to undertake the valuation.

2798. Failure to undertake the valuation may not enable the Trust

to determine the actual value of the scheme’s assets and liabilities,

thereby reducing the Trust’s ability to effectively deal with challenges

that may affect the scheme’s sustainability.

2799. We recommended to Management to ensure that, external

actuary valuation is undertaken in every 3 years in accordance with

Section 53a of Act 766.

2800. Management responded that “Section 53(1) of the National

Pensions Act 2008, Act 766 states ‘the Trust shall obtain actuarial

valuations from an external actuary;

(a) At intervals of not more than one year or, if obtained for the

intervening years at intervals of not more than three years,

and

(b) In other circumstances and on other occasions that may

be prescribed by the Authority.

2801. In line with the above provision, the Trust has been

undertaking Actuarial valuations every three years.

2802. The last external actuarial valuation based on 2014 data was

undertaken by the Actuarial Services Unit of the Social Protection

Department of the International Labour Office and was presented to

the Board of Trustees in October 2017.

2803. Actuarial valuations all over the world are done based on the

following;



1. Demographic and Statistical data of the country

2. Demographic and Operational data of the Social Security

institution

3. Audited Financial Report of the Social Security institution.

2804. The 2017 Actuarial valuation is based on the 2017 data and

could not have been undertaken by the end of 2017, because data

on the first two items (1) and (2) above were ready by July 2018.

However, the 2017 audited financial accounts of the Trust which is

essential for the actuarial valuation was also not ready.

2805. Please be informed that the 2017 external actuarial valuation

is currently been undertaken by the Actuarial Services Unit of the

Social Protection Department of the International Labour Office and

it is expected to be completed by August 2020.”

Auditors’ comment

2806. We urged Management to ensure that all the necessary data

are available to ensure valuation is completed within the period

stipulated in Section 53(1) of the National Pensions Act 2008, Act

766.

Non-Valuation of Investment Properties -GH¢1.99Billion

2807. International Financial Reporting Standards (IFRS) – IAS 40

permits investment properties to be initially measured at cost and

subsequently measured using the fair value model or the cost model

by an entity. The Trust’s Accounting Policy is to use the fair value

model for measuring investment properties. This means the

investment properties of the Trust must be valued every accounting

year.



2808. Our review of the 2018 Financial Statements of the Trust

disclosed that, investment properties totalling

GH¢1,995,555,000.00 reported in the Financial Statements were

not valued.

2809. This anomaly could be attributed to delay in contracting

valuation officers to value the Properties.

2810. Investment properties have not been fairly stated in

compliance with International Financial Reporting Standards.

2811. We recommended that Management should ensure that the

properties are valued and appropriately incorporated into the

financial statements.

2812. Management responded that “Revaluation of SSNIT landed

properties countrywide became due in the year 2018. In accordance

with the Procurement Law, the Trust in June 2018 initiated the

procurement process for the engagement of qualified valuation firms

to undertake the exercise through National Competitive Tendering.

Unfortunately, the tendering processes ended in 2019 and as such

we could not revalue externally the landed properties for 2018.

2813. The project finally commenced in November, 2019 and is

expected to be completed by the end of February 2020.”



MINISTRY OF TRANSPORT

VOLTA LAKE TRANSPORT COMPANY LIMITED

Introduction

2814. This report relates to the audited financial statements of Volta

Lake Transport Company Limited for the year ended 31 December

2018.

Operational Results

2815. The company closed the 2018 financial year with a loss of

GH¢21,270,885 compared with a loss of GH¢11,603,795 in 2017.

This represented a worsen performance of 83.3% over the previous

years. A summary of the performance indicators for 2018 are shown

in the table 301.


Income 2018 GH¢

2017 GH¢

% Change

Revenue 9,514,363.00 13,581,166.00 (29.9)

Operating Cost 9,001,203 9,541,482 (5.7)

Gross Profit 513,160 4,039,684 (87.3)

General and Administration

Expenses 25,406,304 18,486,817

37.4

Net Operating Profit/(Loss)

(24,893,144.00)

(14,447,133.00) 72.3

Other Income 3,729,625 2,843,338 31.2

Impairment Gain/(Loss) (Access

Control System (107,366) - (100.0)

Deficit (21,270,885.00) (11,603,795.00) 83.3

2816. Total Revenue decreased from GH¢13,581,166 in 2017 to

GH¢9,514,363 in 2018 representing a decline of 29.9%. This was

mainly due to a reduction of 80.8% in revenue from fuel which

dropped from GH¢4,809,194 in 2017 to GH¢922,728 in 2018.



2817. Operating Cost of the Company also went down by 5.7% from

GH¢9,541,482 in 2017 to GH¢9,001,203 in 2018.

2818. General and Administrative Expenses however, increased

significantly by 37.4% from GH¢18,486,817 in 2017 to

GH¢25,406,304 in 2018. This was mainly due to a 38.4% increase

depreciation charge as a result of revaluation of the all property, plant and

equipment during the year.

Financial Position

2819. The financial position of the Company as at 31 December,

2018 is summarised in the table 302.

Table 302: Financial Position as at 31 December, 2018

Item 2018 GH¢

2017 GH¢

% Change


Current Assets 1,916,303 3,185,770 (39.8)


Net Current Assets (24,226,603) (19,129,225) 26.6


23,163,099 46,464,965 (50.1)

Net Assets 98,972,199 129,189,902 (23.4)


2820. Non-Current Assets decreased from GH¢194,784,092 in

2017 to GH¢146,361,901 in 2018 representing a 24.9% fall in value.

This was as a result of revaluation of properties, plant and

equipment which increased the yearly depreciation cost of the fixed

assets.

2821. Current assets also reduced by GH¢1,269,467 or 39.8% in

2018, as it moved to GH¢1,916,303, compared with GH¢3,185,770



in 2017. This was largely due to a 51.0% and 79.4% reduction in

Accounts Receivable and Withholding Tax Receivables respectively.

2822. Current Liabilities went up by 17.2% after it increased to

GH¢26,142,906 in 2018 from GH¢22,314,995 in 2017.This was

caused largely by increase in Accounts Payable and Intercompany

Payables by 23.6% and 41.0% respectively.

2823. Non-current Liabilities also decreased from GH¢46,464,965 in

2017 to GH¢23,163,099 in 2018 representing a decline of 50.1%

which was the current portion of the grant from government.

2824. The company’s Current ratio of 0.1:1 (0.1:1 in 2017) is

unfavourable as it is below the required bench mark. Consequently,

the Company will be unable to meet its short-term obligations as

and when they fall due.

MANAGEMENT ISSUES

Absence of a transponder device for monitoring of vessels

2825. All marine vessel transport operating companies for safety

reasons are required to install tracking devices for monitoring by the

Ghana Maritime Authority.

2826. In the year under review, Volta Lake Transport Company

(VLTC) mounted a new radar and GPS units on board the MV Yapei

Queen and MV Volta Queen and there is also an already installed

Vessel Traffic Monitoring Information System (VTMIS). However, the

company has not procured the transponder device which will make

it easy to track the vessels wherever they are located at any point in

time.

2827. Unavailability of funds caused the infraction.



2828. Vessel Monitoring will be a challenge to VLTC and the Ghana

Maritime Authority.

2829. We recommended that Management should look at the

possibility of procuring the Transponder device to help vessel

monitoring.

Payment for incomplete delivery- GH¢107,366 ($48,500)

2830. Regulation 104 (c) of the Financial Administration

Regulations, 2004 L.I. 1802 states that advances are duly recovered

in accordance with the regulations or agreements relating to them.

2831. We noted that VLTC entered into an agreement with Basic

Security Systems Limited (BSSL) to provide electronic security and

computerisation services on a pilot scheme at Adawso and Ekye-

Amanfrom Ferry Stations.

2832. Subsequently Management advanced GH¢107,366 ($48,500)

on 21 June, 2013 for the installation of two turnstiles at Adawso

leaving Enkye-Amanfrom overbank project to BSSL.

2833. The supplier did not complete the installation and the VLTC

treated this amount as receivable in its books.

2834. Management’s failure to enforce contents of the contract

caused the infraction. This is a loss to the Company as the supplier

failed to deliver on the terms of the contract.

2835. We urged Management to pursue BSSL to complete the

project as stated in the signed contract or recover the sum paid with

interest at the BOG prevailing rate. Management should also initiate

legal actions against the BSSL.



2836. Management responded that they had written to the Board to

seek approval to write off the cost of GH¢107,366.00 from the books.

Auditors’ comment

2837. Our recommendations still stand for the recovery of the sum

paid.

Non-Payment of Statutory Deductions - GH¢3,986,035

2838. Section 96 (3) The National Pensions Act, Act 766 of 2008

states that an employer of an establishment shall remit a mandatory

contribution of 5% to an approved trustees of occupational pension

scheme out of the total contribution of 18.5 % made on behalf of that

worker.

2839. The Ghana Revenue Act (GRA) Tax Act, Act 896 as amended

makes it mandatory for income taxes to be deducted from the

earnings of employees. It is also mandatory for contributions to be

remitted within 14 days from the end of each month.

2840. We noted that Tier 2 deductions totalling GH¢428,029 had

not been paid even though the company had deducted the

contributions from employees’ salaries.

2841. Furthermore, withholding taxes for P.A.Y.E which amounted

to GH¢3,558,006 had not also been remitted.

2842. Management’s failure to comply with the provisions of the

acts quoted above caused these lapses. Penalties would be levied on

the amounts outstanding as a result of the delay in payment which

would further worsen the liquidity position of the Company.



2843. Management should plan and remit both deductions to the

respective institutions within the stipulated period to avoid fines and

penalties.

2844. Management said deductions were not paid because of lack

of funds; however, the 2nd Tier and PAYE deductions from January

2019 to date had been paid.

Auditors comment

2845. We reiterate our earlier recommendation.

GHANA MARITIME AUTHORITY

Introduction

2846. This report covers the audited financial statements of the

Ghana Maritime Authority for the year ended 31 December 2018.

Operational results

2847. The operations of the Authority ended with a surplus

GH¢72,895,752 as against GH¢43,190,466 recorded in 2017

showing a 68.8% increase in surplus. The details of the operations

of the Authority are provided in table 303.


Income 2018 GH¢

2017 GH¢

% Change

Service Charges 42,656,571

35,362,234 20.6

Maritime Safety Charges 86,209,267

55,887,117 54.3

Other Income 12,617,442

8,377,425 50.6

Total Revenue 141,483,280 99,626,776 42.0

Expenditure

Administrative and Overhead Expenses 64,809,508

53,631,863 20.8



Audit Fees 177,500

176,875 0.4

Depreciation Charge 3,600,520

2,627,572 37.0


Excess Expenditure over Income 72,895,752 43,190,466 68.8

2848. Total Revenue increased by 42.0% from GH¢99,626,776 in

2017 to GH¢141,483,280 in 2018. The increment in the total was

due to huge increase in Maritime Safety Charges from

GH¢55,887,117 in 2017 to GH¢86,209,267 in 2018 showing a

54.3% change.

2849. Total Expenditure for the year went up from GH¢56,436,310

in 2017 to GH¢68,587,528 in 2018, representing an increase of

21.5%. This increase was due to a rise in salaries by GH¢7,362,468

or 37.6%.

Financial Position

2850. Table 311 shows a summary of the Authority’s financial

position as at 31 December 2018.


2018 GH¢

2017 GH¢

% Change


Current Assets 118,601,135 71,153,045 66.7

Non-Current Liabilities 1,511,079 - -



2851. Non-Current Assets as at the close of 2017 stood at

GH¢7,632,911 and increased to GH¢27,437,573 in 2018, showing

an increase of GH¢19,804,662 or 259.5%. The increment was due

to additions to Property, Plant & Equipment amounting to

GH¢23,405,182.



2852. Current Assets also went up by 66.7% from GH¢71,153,045

to GH¢118,601,135 in 2017 and 2018 respectively. The increase was

largely due to a 54.3% rise in Trade and Other Receivables from

GH¢38,497,395 in 2017 to GH¢59,382,431 in 2018.

2853. Current Liabilities declined by 87.0% from GH¢8,218,864 in

2017 to GH¢1,064,785 in 2018. The dip was due to a reduction in

Sundry Payables from GH¢2,980,442 in 2017 to GH¢437,122 in

2018 representing an 85.3% decrease.

2854. Current Ratio in 2017 of (8.7:1) bettered in the current year

showing 111.4:1. This indicates the ability of the Authority to meet

its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Procurement above approved Threshhold-GH¢3.0Million

2855. Section 35 (1) of the Public Procurement Act, 2003 (Act 663)

as amended requires that a procurement entity shall procure goods,

services or works by competitive tendering except the other methods

as provided in the Act.

2856. The second schedule of the Public Procurement (Amendment)

Act 2016, act 914) provides that transactions of value between

GH¢100,000 and GH¢1,000,000 for service should be approved by

the Entity Tender Committee (ETC).

2857. We noted the following procurement irregularities totalling

GH¢3,011,506.57:

1. the Authority contracted SQW Consultancy for the

development of accounting policies and Procedures Manual at

a sum of USD56,640 (GH¢250,280.83). The procurement was

not subjected to the approval of the ETC.



2. The Director-General of the Authority approved procurement

for oversea passage expenditures. These expenditures were

above his threshold.

Details of the expenditures are shown in table 305

Date Details Cheque No Amount GH¢

1/3/2018 Special T.

Travel

023472 106,494

2/5/2018 Special T.

Travel

025087/8/6/92/93 140,796

Total 247,290

3. the Authority during the year procured goods amounting to

GH¢2,513,935.74 without complying with the appropriate

procurement procedures. The head of entity approved the

transactions even though the contract value exceeded its

threshold.

Details of the expenditures are shown in table 306

Item Description Date of Purchase Cost (GH¢)

Nissan Hard Body Truck 02/02/2018 115,588.37

German Speed Boats 09/05/2018 373,232.37

Computing Devices 16/02/2018 125,115.00

Land 29/08/2018 1,900,000.00

Total 2,513,935.74

2858. These are in contradiction of the Public Procurement Act,

2003 (Act 663). These acts also undermine transparency in

procurement processes that ensure value for money.

2859. We urged Management to ensure compliance with all the

provisions of the Act in all future transaction; meanwhile the officers

involved in the breach of the act should be sanctioned in accordance

with section 92 (1) of the Public Procurement Act.



2860. Management replied that the Authority will seek ratification

with the Entity Tender Committee.

Payment to Contractor Prior to the signing of a Contract-

GH¢119,706


Regulations 2004 states that an advance shall not be made to a

contractor except in accordance with the terms of the contract

signed between the Government and the Contractor.

2862. We noted during our audit that the Authority made an initial

payment of GH¢119,709.11 to Silver Star Auto Limited for the

purchase of a 33-seater Mercedes Benz Bus on 1 June 2018 before

the contract was agreed on, on 12 November 2018. The approval for

the use of restricted tendering was dated 20 August 2018.

2863. This practice is inconsistent with the provisions of the

Financial Administration Regulations 2004 and the Public

Procurement Act 2003, (Act 663).

2864. This anomaly could also deny the Authority the benefits that

could accrue from competition, transparency and value for money.

2865. We recommended to Management to subject any

procurement to the requirements of the Public Procurement Act

2003, (Act 663) prior to any payment being made meanwhile the

officers involved in the breach of the act should be sanctioned in

accordance with section 92 (1) of the Public Procurement Act.

2866. Management accepted our recommendation and also said

that there was an agreement in principles pending formal approval.



Unapproved Fixed Deposit Investments by the Board-

GH¢5.0million

2867. Section 18 (5) of the Ghana Maritime Authority Act, 2002 (Act

630) as amended provides that ‘the Authority may make investments

that the board considers necessary’.

2868. Our audit disclosed that there was no Board resolution

authorising the placement of additional Investments of

GH¢3,000,000 and GH¢2,000,000 with Royal Bank Limited and

UniSecurities Ghana Limited respectively during the year under

review.

2869. The oversight functions of the Board are being circumvented

which could impact adversely on effective corporate governance.

2870. We urged Management to ensure strict adherence with the

requirements of the Ghana Maritime Authority Act, 2002 (Act 630)

as amended.

2871. We also entreated the Authority to put in place an investment

policies and procedures to guide investment decisions.

2872. Management responded that the said fixed deposits were

made on the approval of Management.

Motor Vehicle in custody of the former Director-General

2873. Regulation 1 of the Financial Administrative Regulations,

2004 (L.I.1802) requires that where a public officer is proceeding on

transfer, leave or is for any other reason being relieved of the duties

under sub-regulation (3), the officer shall hand over the financial,

accounting records and assets to the person taking over from the

officer.



2874. We noted that an Audi A6 vehicle with registration number

GH768-17 for the official use of the former Director General (Kwame

Owusu) is still in his custody after he was relieved of his post in

March 2019.

2875. Disregard for the above Regulation occasioned this anomaly.

2876. This practice if allowed to fester would lead to official assets

being taken over by either outgoing or separated staff for private use.

2877. We recommended to Management to provide a sufficiently

documented basis for the assignment of the vehicle to the former

Director General, failure of which the vehicle should be returned to

the Authority.

Internal Audit Functions


(Act 921) states “the Internal Auditor of a covered entity shall, within

thirty days after beginning of the financial year, submit:

a) the annual audit work plan to the Principal Spending Officer

of that covered entity and the Audit Committee established

under section 86; and

b) a copy of the annual audit work plan to the Internal Audit

Agency.

2879. Page 66 of the Ghana Maritime Authority Accounting and

Procedures Manual states that a payment voucher shall be valid for

payment if it is vetted by the Internal Auditor and approved by the

Director-General.

2880. We noted that there was no evidence of the preparation and

submission of an annual audit work plan for the 2018 financial year



by the internal auditor and payment vouchers used were not vetted

by the Internal Audit before payments were made.

2881. These are in contravention of the Public Financial

Management Act and the Ghana Maritime Authority Accounting and

Procedures Manual.

2882. We advised Management to comply with the above provisions.




MINISTRY OF TRADE AND INDUSTRY

GHANA EXPORT PROMOTION AUTHORITY

MANAGEMENT ISSUES

Absence of Comprehensive Strategic and Operational Plan


(Act 921) states ‘’A Principal Spending Officer shall, plan and

manage the activities of a covered entity in accordance with the

policy statement and financial estimates of that covered entity’’.

2885. We noted that there was no comprehensive strategic plan or

operating plan covering the period of our audit which is to provide

key guidance for the achievements of the Authority’s strategic

objectives.

2886. Lack of supervision by the oversight Ministry, the Ministry of

Trade and Industry and negligence on the part of the Governing

Board accounted for this anomaly.

2887. As a result, we could not establish how efficient resources of

the GEPA have been utilised in the year under review.

2888. To ensure efficient use of the Authority’s resources, we

entreated the Governing Council and the Executive Secretary to have

a comprehensive strategic plan, prepared to provide guidance for

driving Ghana’s Export Agenda.

2889. Management stated that, the office has a short-term strategic

plan it is working with. This plan was put together at a retreat in

Ada when Management took office in June, 2018. Management has



committed itself to developing a National Export Development

Strategy (NEDS) which is almost completed. GEPA’s long term

strategy will be developed out of the NEDS when it is approved and

adopted.

Unbudgeted Expenditure by Management- GH¢16,836,235.00

2890. Article 178(1) of the 1992 Constitution states “No moneys

shall be withdrawn from the Consolidated Fund except-

(a) to meet expenditure that is charged on that Fund by this

Constitution or by an Act of Parliament; or

(b) where the issue of those moneys has been authorised-

i. by an Appropriation Act; or

ii. by a supplementary estimate approved by resolution of

Parliament passed for the purpose; or

iii. by an Act of Parliament enacted under article 179 of this

Constitution; or

iv. by rules or regulations made under an Act of Parliament in

respect of trust moneys paid into the Consolidated Fund”.

(2) No moneys shall be withdrawn from any public fund, other than

the Consolidated Fund and the Contingency Fund, unless the issue of those moneys has been authorised by or under the authority of

an Act of Parliament”. 2891. We noted that Management during the period under review

spent a total amount of GH¢16,836,235.00 on administrative and

operational activities without any approved budget. Details are

shown in table 307.

Table 307: Unbudgeted expenditure by Management

No. Expenditure Amount GH¢

1 Motor Vehicle 2,344,252.57

2 Office Equipment 197,869.12

3 Computers 90,161.50



4 Foreign Travel 3,001,599.56

5 Local Travel 665,759.14

6 Zonal Offices 37,679.74

7 National Export Strategy 3,932,311.01

8 Staff Cost 3,135,185.16

9 Board Expenses 340,907.99

10 Office Expenses, Taxes and Accrued expenses

3,090,509.21

Total 16,836,235.00

2892. Failure on the part of the Governing Council to ask

Management to prepare a budget for review and approval accounted

for this anomaly.

2893. As a result, we could not establish whether the amount of

GH¢16,836,235.00 spent was in accordance with GEPA’s core

activities for the period under review.

2894. We urged the Executive Secretary to seek retrospective

approval from parliament through the Ministry of Finance for the

amount of GH¢16,836,235.00 spent to avoid disallowance and

surcharge sanctions.

2895. In response Management explained that in 2018, a 4-year

work plan was developed for the operations of GEPA. From the 4

year work plan, a budget was prepared and presented to Parliament

through the Ministry of Trade and Industry. The budget team has

provided a work plan and a budget for which same was presented to

the Ministry for onward submission to the Minister of Finance.

Unauthorised Utilisation of Import Levy Funds-

GH¢15,738,319.76 2896. Regulation (2)(c) of the Financial Administration Regulations,

2004 (L.I. 1802) states: “The head of Government department shall

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”.

2897. We noted that the Authority received a total amount of

GH¢15,738,319.76 from Exim bank for export development.

However, these funds were disbursed without any approved budget.

Details are provided in table 308.

Table 308: Unauthorised Utilisation of Import Levy Funds

Month Total Received GH¢

10% Share of Import Levy Received

GH¢

January 20,553,828.18 2,055,382.82

February 19,429,474.68 1,942,947.47

March 17,988,424.88 1,798,842.49

April 19,464,470.37 1,946,447.04

May 22,159,008.38 2,218,834.96

June 22,159,008.38 2,215,900.84

July 15,599,641.39 1,559,964.14

August 2,466.80 -

September 1,254.12 -

October 446.10 -

November 18,677,445.46 2,000,000.00

December 21,598,798.43 -

Total 177,634,267.17 15,738,319.76

2898. This is due to the absence of an approved budget to regulate

the utilisation of the fund.

2899. In the absence of an approved budget, funds could be

misused or utilised in areas that may not directly be export driven.

2900. We advised the Authority to seek retrospective approval from

Parliament through the Ministry of Finance for the utilisation of

Exim Bank Funds and inform us accordingly.



2901. Management responded that the 10% of the 0.75 import levy

that accrues to GEPA as per Act 911 (2016) was utilised for the

business of the Authority for the year under review. “We therefore do

not believe that we used the funds without authorisation for the

business of the Authority in accordance with our mandate. Like

many agencies, before the beginning of the year, we submitted a

budget to the Ministry of Finance through the Ministry of Trade and

this budget includes all the work plans of the Authority for the year.

Copies of the budget can be made available for your attention”.

Failure to Prepare Financial Statements for Certification 2902. Section 80 of the Public Financial Management Act, 2016 (Act

921) requires that a Principal Spending Officer of a covered entity

shall, within two months after the end of each financial year, prepare

and submit to the Auditor-General and Controller and Accountant-

General, the accounts and information set out in the Schedule.

2903. We noted that the Ag. Director of Finance did not prepare and

submit to the Auditor-General for validation and certification, the

financial statements for the years 2017 and 2018.

2904. Lack of supervision by the Governing Council, the Executive

Secretary and the Deputy Executive Secretary, Finance and

Operations accounted for the anomaly.

2905. The financial performance and the state of affairs of the

Authority could be misleading in the absence of financial

statements.

2906. To promote accountability, transparency and probity, we

urged the Executive Secretary to ensure that the Ag. Director of

Finance prepares and submit to the Auditor-General for validation

and certification, the financial statements for the years 2017 and

2018.



2907. In response Management said, they were late in the

preparation of quarterly and annual financial statements because of

challenges with the current accounting software. However, a work

plan has been submitted to the GIFMIS secretariat to be migrated

onto the GIFMIS Platform. Copies available. A copy of the draft

financial statements would be made available to the audit team as

soon as it is finalized.

Failure to Prequalify Travel and Tour Companies – GH¢316,103.54 2908. Section 22 of the Public Procurement Act, 2003 (Act 663)

requires among other things the fulfilment of obligations to pay taxes

and social security contributions as key consideration of a tenderer

in public procurement.

2909. We noted that Management did not prequalify four Travel and

Tour companies before engaging them in ticket transactions

amounting to GH¢316,103.54. Details are shown in table 309.

Table 309: Failure to prequalify Travel and Tour Companies

No Date PV

No.

Cheque

No.

Payee Details Amount

GH¢

1 11/12/2018 58 639467

Westside

Travel Services

Accra - Cairo

Exhibition forum

10,761.00

2 11/12/2018 59 639468

Alpha

Insurance

Brokers Ltd

Cairo

Exhibition 2,592.00

3 24/12/2018 146 947517

Westside

Travel

Services

Geneva Beirut

Cairo 3,060.00

4 31/10/2018 2 639334 Westside Travel

Services

China

International Import

Exposition

23,746.20



5 31/10/2018 3 639335

Bespoke

Travel

Consult

China

International

Import

Exposition

16,655.00

6 05/11/2018 4 639336

Escaville

Travel and Tours Ltd

2018 Lagos fair

Tickets 9,429.00

7 16/10/18 43 639253

Escaville

Travel and

Tours Ltd

Air Tickets for

sensitization

programme in

Bolga and Wa

8,480.00

8 16/10/18 46 639256 Westside Travel

Services

Air Tickets for

WTPO Conference in

France : Accra

Paris Accra

49,246.00

9 30/10/18 89 639297

Escaville

Travel and

Tours Ltd

Air tickets for

Lagos

International

Fair

3,862.00

10 30/10/18 104 639313 Samuel

Dentu

Refund of Accommodation

Bookings at

Hilton

2,221.34

11 19/09/18 22 639159

Bespoke

Travel Consult

Air Tickets for

Salon

International Del chocolate

event in Madrid

31,202.00

12 27/09/18 63 639200

Bespoke

Travel

Consult

Air tickets for

World Export

development

forum in

Lusaka , Zambia

67,950.00

13 30/08/18 72 639127

Bespoke

Travel

Consult

Air Tickets for

sensitization

programme in

Brong Ahafo

(Accra-Kumasi-Accra) @

959.00

10,549.00



14 09/07/2018 22 821159

Bespoke

Travel

Consult

Air Ticket for

AGOA Forum

and Africa-

America Trade

Summit

30,492.00

15 16/07/18 41 639004 Bespoke Travel

Consult

Tickets for Business forum

in Latvia

25,873.00

16 07/06/2018 45 821095

Westside

Travel

Services

Air Ticket for to

attend the 84th

Plenary General

Assembly Convention in

Arkansas , USA

15,499.00

First Atlantic Bank

17 15/11/2018 18 639350

Bespoke

Travel

Consult

Additional

charges for

deferral of

return trip from

Madrid chocolate event

4,486.00

Total

316,103.54

2910. Failure to follow due procurement processes including the

use of single-sourcing without approval accounted for this anomaly.

2911. The absence of prequalification of these Travel and Tour

companies could result in GEPA doing business with unqualified

entities at the expense of the State.

2912. As a result, we were unable to establish whether the

companies were in good standing with the Ghana Revenue

Authority.

2913. Further, The State has been denied GH¢54,475.82 in VAT tax

revenue and GH¢23,707.80 in withholding taxes as a result of



failure to deduct and pay appropriate taxes from the ticket

transactions.

2914. We recommended that Management must ensure that all

business entities must meet the statutory prequalification criteria

outlined in section 21 of the Procurement Act before they are

considered for businesses.

2915. Meanwhile, the Executive Secretary should furnish us with

copies of Income Tax and VAT registration certificates and any tax

returns filed for 2018 on these companies for our review.

2916. In response, Management explained that the protocol

Department of the Authority usually makes enquiries and provides

three quotes of invoices to support the purchasing of air ticket.

However, due to the impromptu nature of some travel arrangement

they resort to any travel agent for prompt service delivery. They have

now requested the Procurement Department to begin the process of

pre-qualifying all travel agents based on our recommendation and

this process is currently on-going.

Payment not fully accounted for- GH¢30,597.00,

US$15,200.00, £1,564.00 and €4,655.00


2004 (L.I. 1802) requires that payments must be authenticated to


2918. We noted that imprest payments on 18 payment vouchers in

various currencies were made. Out of these parts was accounted

leaving various balances yet to be accounted with relevant

expenditure documents such as receipts, signed list and/or initials

of recipient. A summary of these is shown in table 310



Table 310: Summary of Unaccounted Imprest

Currency Imprest Granted Amount Accounted for Unaccounted

GH¢ 192,136.00 161,539.00 30,597.00

US$ 29,805.00 14,605.00 15,200.00

£ 2,455.00 891.00 1,564.00

€ 5,670.00 1,015.00 4,655.00


Table 311: Payment not fully accounted for NO DATE PV NO. CHQ NO. Details Payee PV

Amount Amount

Accounted Refund Remarks

1 01/10/2018

002/10 Pru 639205 IT department and Audit

logistics

Francis Apah

10,300.00

9,400.00

900.00

No Receipts and fuel

receipt attached

2 30/10/2018

102/10 Pru 639311 Logistics and servicing of

motorbike

George Bamfo

5,880.00

4,680.00

1,200.00

No receipts

attached

3 04/12/2018

013/12 Pru 639421 Logistics to internal audit

departments iro zonal visit

George Bamfo

5,400.00

4,400.00

1,000.00

Imprest not accountable

for by George Bamfo

4 31/01/2018

064/01 Fab 413802 Board sitting allowance

Grace Akrofi & Kwesi

Korboe 21,700.00

19,100.00

2,600.00

Grace Akrofi and Kwesi

Korboe not signed

5 13/4/2018

032/04 Fab 414029 GEPA board sitting

allowance iro GFZB board

room

Sandra O, Agyeman

9,000.00

6,500.00

2,500.00

Sandy O. Agyeman not

signed



6 15/5/2018

048/05 Fab 414118 Logistics and DSA

Paul Zuberu

3,406.00

2,406.00

1,000.00

Fuel receipts was

Duplicated

7 17/5/2018

056/05 Fab 414128 Logistics and transportation

for press iro visit to Wenchi

Finance and Admin

7,200.00

4,700.00

2,500.00

Jonas Larbi not signed, no

receipt of transportation

8 19/03/2018

029/03 Fab 413940 Logistics iro Maiden made in

Ghana Bazaar

Extranganza

Regina Manu

1,600.00

1,200.00

400.00

Used call

cards not

attached

9 27/03/2018

073/03 Fab 413987 Logistics for Cocoa

processing Association of

Ghana

Regina Manu

2,100.00

1,900.00

200.00

Used call card

not attached

10 03/04/2

019

009/04 Pru 947911 Accountable

imprest

Michael

Mensah 1,250.00

-

1,250.00

No

receipt/recipient not signed

11 07/05/2019

026/05 Honorarium for NEDS

Workshop iro NEDS

Finance and Admin/Ruth

Maafo/Nelly Spio & others

124,300.00

107,253.00

17,047.00

Receipt of Visa fee/Signed list

& others not attached

192,136.00 161,539.00 30,597.00

US$ US$ US$

12 01/02/2

019

001/02 Fab 391334 Logistics to

assess avocado project with

stakeholders in Kenya

Afua A. Asare

& others

9,564.00

4,164.00

5,400.00 No receipts attached

12 21/2/2019

003/02 Fab 391336 Logistics iro, theITC MOSPSE

program in Zanzibar,

Tanzania

Banda Abdallah/Afu

a A. Asare

6,964.00

3,764.00 3,200.00

No receipts

attached

14 22/2/20

19

004/02 Fab 391337 Logistics iro, the

Global Economic

Banda

Abdallah/Samuel Dentu 6,489.00 3,689.00 2,800.00

No receipts attached



Summit in Mumbai, India

15 28/03/2

019

005/03 Fab 391346 Logistics iro,

theITC MOSPSE program in

Kampala, Uganda

Banda

Abdallah/Albert K. Diwura

5,788.00 2,988.00


16 29/03/2019

006/03 Fab 391347 Logistics iro, Annual

Investments

Meeting

Kwabena Baffour-

Kumah

1,000.00

- 1,000.00

No receipts

attached/No

signed list

29,805.00 14,605.00 15,200.00

£ £ £

17 01/02/2

019

Cash Logistics for

opening warehouses and

retail shops Ghanaian made product, Uk

Afua A. Asare

2,455.00

891.00


€ € €

18 01/02/2019

Cash Logistics fro Fruit Logistica

Fair 2019, Germany

Afua A. Asare/Samue

l Dentu 5,670.00

1,015.00

4,655.00

No receipts attached



2919. This was due to failure of the Ag. Director of Finance to ensure

that beneficiaries provided receipts or signed list for acquittal.

2920. It made it difficult to establish whether the money released

was actually used for the intended purposes.

2921. We requested the Ag. Director of Finance to ensure all payees

who benefited from these funds to account fully, failing which the

various amounts should be refunded by the responsible officers.

2922. In response Management said, the payment vouchers and the

supporting document are available for audit inspection.

Failure to Obtain VAT Invoice- GH¢25,160.52

2923. Section 41 of the VAT Act 2013, (Act 870), states “A taxable

person shall, on making a taxable supply of goods or services, issue

to the recipient, a tax invoice in the form and with the details that

are prescribed by the Commissioner-General”.

2924. Section 58 further states “A person who fails to issue a tax

invoice or sales receipt as required under section 41 for taxable

goods supplied or taxable services rendered, commits an offence and

is liable on summary conviction to a fine of not more than one

hundred penalty units or to a term of imprisonment of not more than

six months or to both”.

2925. Contrary to the above, the Authority did not obtain VAT

invoice of GH¢25,160.52 for a total value of GH¢203,995.35 being

goods procured and services rendered by fifteen (15) suppliers.




Table 312: Failure to Obtain VAT Invoice

Date PV No. CHQ No. Details Payee Gross Amount

VAT/GETF/ NHIL

Amount

15/5/2018 059/05 Pru 821029 Catering Services Done Deal Catering Services

6,300.00 1,102.50

37/7/2018 082/07 Pru 639050

Payment of

accommodation package

Aqua Safari Resort Ltd

22,400.00 3,920.00

05/09/2018 010/09 Pru 639146 Payment of Vehicle Tyre -No. GR 1849-13

Infinity Tyres Ghana Limited

3,495.16 104.85

19/9/2018 023/08 Pru 639160

Exhibition stand branding and promotional flyers Ediamos Concepts

1,275.00 223.13

30/11/2018 001/12 Pru 639409

Accomodation iro pum expert on shea products, Wa Blue Hill Hotel

4,595.74 804.26

03/12/2018 007/12 Pru 639415

Accomodation iro pum expert on shea products, Bolga Akayat Hotel

5,106.38 893.62

10/12/2018 054/12 Pru 639463

Hotel and conference package iro, market hub awareness

Golden Tulip Kumasi City

18,260.49 3,195.59

11/12/2018 057/12 Pru 639466 Accomodation iro, market hub awareness Eusbett Hotel Ltd

3,080.00 539.00

20/12/2018 110/12 Pru 639476

Conference facility iro, market hub awareness at cape coast Pempamse Hotel

7,700.00 1,401.63

20/12/2018 148/12 Pru 947519 Business card for CEO and DCEO Ediamos Concepts

1,700.00 260.31

22/03/2018 033/03 Fab 413944

Conference and accomodation iro, 2 Peduase Valley

15,818.57 2,768.25



day conf. on cashew 10yr devt plan

25/2/2019 067/02 Pru 947770

Lanyards for NES review and update workshop Inkit Limited

2,200.00 385.00

24/4/2019 069/03 Pru 185648 Billboard rental Alliance Media Ghana Limited

17,493.00 3,019.63

12/04/2019 006/04 Pru 185667 Additional works on Abompe craft village

AEA Construstruction Ltd

46,521.00 1,395.63

29/05/2019 147/05 Pru 185812 Usage of conference facilities HW Realty Limited

5,000.00 906.25

29/05/2019 148/05 Pru 185813

Usage of conference facilities iro, T4SD Hub and ITC She Trades Training Session HW Realty Limited

19,500.00 3,534.38

18/03/2019 054/03 Fab 414207 3KVA Rockmount UPS

Matrix ICT Enterprise

23,550.00 706.50

203,995.35

25,160.52



2926. This could mean that the suppliers were either not VAT

registered suppliers or deliberately failed to issue VAT invoice in

order to avoid the remitting of the VAT charged to the Ghana

Revenue Authority.

2927. VAT amount may not be remitted to the Ghana Revenue

Authority (GRA) and this may deprive the government of the needed

revenue for developmental activities.

2928. We urged the Ag. Director of Finance to recover the VAT

amount of GH¢25,160.52 from the suppliers failing which she

should refund the said amount to GRA.

2929. In response, Management said, they have contacted and

continue to contact suppliers to correct the anomalies. A report on

same will be shared and discussed with the audit team for further

action.

Unsubstantiated VAT invoices from suppliers - GH¢206,950.92 2930. Regulation 39 (2c) of the Financial Administration

Regulations, 2004 (L.I. 1802) states, “The head of the accounts

section of a department shall control the disbursements of funds

and ensure that transactions are properly authenticated to show

that amounts are due and payable”.

2931. Section 41 of the Value Added Tax Act, 2013 (Act 870) states”

A person who (a) issues a false tax invoice or sales receipt, uses a

false taxpayer identification number, is in addition to the penalty

provided in section 58 liable to pay a penalty of an amount not more

than five hundred currency points or three times the amount of tax

involved, whichever is higher.



2932. We noted that the Authority procured goods and services totalling GH¢1,589,355.89.

However, the VAT/GETF&NHIL invoices totalling GH¢206,950.92 issued in respect of these

procured goods and services were either without Tax Identification Numbers (TIN) and wrong

TIN. Details are shown in table 313.

Table 313: Unsubstantiated VAT invoices from suppliers

Date PV No. CHQ No Details Amount Rate TIN Invoice No.

AGS Worldwide

Movers Limited

31-12-18 150/12 Pru

947521

Movement of office

equipment and IT assets to Export Trade

House

15,890.00 17.50%

2,780.75

921T000001 13/4148528

Akayat Hotel

-

16-10-18 047/10 Pru

639257

Accommodation an

conference package iro Bolga

22,311.91 17.50%

3,904.58

C0000959367 15/10076465

Auto Parts Limited -

24-10-18 067/10 Pru

639278

2 Nissan hardbody

pick-up vehicles

225,757.28 3.00%

6,772.72

VAT

214V000003

FRA

14457964

Channel IT

-

11-09-18 013/09 Pru

639149

Accomodation for

sensitization programme, Takoradi

8,200.20 17.50% 1,435.04 424V033545 15/8849935

China State Haulong

Construction (Gh) Limited

-

07-09-18 006/09 Pru 639139

Payment of Office partitioning

14,047.00 17.50% 2,458.23

-

14/5125770



Craftique Classics -

05-06-18 011/06 Pru

821059

40% contractsum for

construction of expert production village

50,995.74 17.50%

8,924.25

P0004871782 15/10039451

19-09-18 027/09 Pru 639164

Construction of export production village

50,725.93 17.50% 8,877.04

P0004871782 15/10039452

04-12-18 014/12 Pru 639422

10% contract sum for construction of export

production village

12,681.48 17.50% 2,219.26

P0004871782 15/10039453

114,403.15 20,020.55

Ediamos Concepts

-

11-09-18 013/09 Pru 639150

Promotional materials and stand design

2,500.00 17.50% 437.50 P000045969 13/4033250

19-10-18 066/10 Pru 639276

Backdrop,banner, programme outline

and T-Shirt

3,069.02 17.50% 537.08 45969 13A/8275714

31-10-18 106/10 Pru

639315

Promotional material

iro lagos fair 2018

14,850.00 17.50% 2,598.75 P000045969 13/4033215

26-11-18 043/11 Pru

639277

Promotional materials

iro intra-Africa Trade Fair, Cairo

24,710.00 17.50% 4,324.25 P000045969 15/9706847

11-12-18 108/12 Pru

947473

Promotional materials

iro hub awareness workshops

14,490.00 12.50% 1,811.25 P0000045969 15/9706802

59,619.02 9,708.83

Eusbett Hotel Ltd

16-02-18 001/02 Pru

820940

Lunch for dignitaries 22,000.00 17.50%

3,850.00

C0005028418 15/10289801

27-08-18 033/08 Pru

639088

Accomodation for

sensitization programme

22,733.76 17.50%

3,978.41

C0005028418 15/10289801

10-12-18 052/12 Pru 639461

Conference package iro, marke hub

awareness

14,520.00 17.50% 2,541.00

C0005028418 15/1039260

59,253.76 10,369.41

Fali's Restaurant



24-10-18 075/10 Pru 639283

Catering services 5,859.57 17.50% 1,025.42

7220000009 15/60336633

24-10-18 076/10 Pru

639284

Catering services 5,655.32 17.50%

989.68

7220000009 15/60336627

11,514.89 2,015.11

Fotobank Media

Services

17-01-18 018/01 Fab 386755

Advert placement in made in Ghana

magazine

6,000.00 17.50% 1,050.00

924V009755 FRA 6495755

Hartco Ventures

26-11-18 042/11 Pru

639276

Freighting and

transportation of exhibit, Cairo

1,925.45 3%

57.76

-

FRA

12456919

26-11-18 042/11 Pru 639276

Freighting and transportation of

exhibit, Cairo

30,394.95 3% 911.85

-

FRA 12456926

05-12-18 040/12 Pru

639448

Change of

consine/amendment air cargo

873 3%

26.19

-

FRA

12456918

04-05-18 002/10 Fab 414135

Transportation of exhibits for Lagos Int.

Fair, 2018

30,291.85 3% 908.76

-

FRA 12456916

63,485.25 1,904.56

Jilac Print-Outs

22-11-18 039/11 Pru 639372

Branded pendrives for Export school

19,250.00 17.50% 3,368.75

V005644062 15/9246693

Madarfss Company Limited

16-05-18 005/05 Pru

820972

Toner for Office 5,184.47 3%

155.53

321N000005 V17/0234280

05-06-18 012/06 Pru

821060

Toner catridge for

photocopies machines

1,572.82 3%

47.18

321N000005 V17/1532188

06-07-18 027/07 Pru

821161

Printers and scanners

for office of CEO and DCEOs

8,075.00 17.50%

1,413.13

321N000005 15/1866855



17-07-18 036/07 Pru 821173

Apple laptops and phones for CEO and

DCEOs

40,086.00 17.50% 7,015.05

321N000005 15/1866854

28-02-18 007/03 Fab 413913

Toners for official use 7,815.53 3% 234.47

321N000005 V17/0234294

62,733.82 8,865.36

Nakaadi Ventures

16-07-18 042/07 Pru

639005

Installation of intercom

systems

8,468.09 17.50%

1,481.92

C000643360 15/6433635

20-07-18 045/07 Pru

639008

Supply of headsets 6,650.00 3%

199.50

C000643360 15/6433634

15,118.09

1,681.42

Officepal Ghana

Limited

04-12-18 020/12 Pru

639428

Payment of Laptop

Computers

83,226.00 3%

2,496.78

C0003250806 V17/4991029

04-12-18 020/12 Pru 639428

Payment of Laptop Computers

6,935.50 3% 208.07

C0003250806 V17/4991030

90,161.50 2,704.85

Rain Forest Lodge

16-03-18 069/03 Fab 413982

Break fast for participants iro One

district one factory-Export product

18,085.11 17.50% 3,164.89

524V049161 13/4607346

TBWA/MARKCOM

16-02-18 011/02 Pru

820952

Part payment of

Branded T-shirt etc for 10 year cashew devt

plan launch at Wenchi

80,450.00 17.50%

14,078.75

322-V00-0003 A/2679724

16-02-18 012/02 Pru

820953

Cost of Travel and

Transport, logistics and technical

39,550.00 17.50%

6,921.25

322-V00-0003 A/2679723

30-05-18 007/05 Pru 821042

GEPA promotional strategy for

advertisement

46,041.92 17.50% 8,057.34

322-V00-0003 A/2679278



08-08-18 009/08 Pru 639063

Printing of 100 pcs of processed Cocoa

2,500.00 17.50% 437.50

322-V00-0003 A/2679749

15-10-18 005/10 Pru

639208

Call cards forCEO and

DCEO's

4,200.00 17.50%

735.00

322-V00-0003 A/2679576

03-04-18 002/04 Fab

413995

Call cards forCEO and

DCEO's

2,200.00 17.50%

385.00

322-V00-0003 A/2679734

06-04-18 026/04 Fab

414023

Official GEPA letter

heads

2,300.00 17.50%

402.50

322-V00-0003 A/2679735

06-04-18 027/04 Fab

414024

Laminated call cards

directors and deputies

4,620.00 17.50%

808.50

322-V00-0003 A/2679737

13-04-18 033/04 Fab 414032

Export school sertificate and folders

17,825.00 17.50% 3,119.38

322-V00-0003 A/2679729

13-04-18 034/04 Fab 414033

Booth branding, information kits, flyers

and bookmarker

4,400.00 17.50% 770.00

322-V00-0003 A/2679733

13-04-18 035/04 Fab

414034

Payment GEPA

brochures

2,300.00 17.50%

402.50

322-V00-0003 A/2679714

09-05-18 042/05 Fab

414112

Oneline digital

marketing and boost of UNIDO sponsored

GEPA mkt hub

12,875.79 17.50%

2,253.26

322-V00-0003 A/2679700

13-03-18 017/03 Fab

413924

Printing of letterheads 4,600.00 17.50%

805.00

322-V00-0003 A/2679713

16-03-18 022/03 Fab 413932

Branding of 3 pick up vehicles

1,500.00 17.50% 262.50

322-V00-0003 A/2679730

225,362.71 39,438.47

Tilly's Palatables Catering Services

03-10-18 012/10 Pru

639217

Catering Services for

ITC training session

1,625.00 17.50%

284.38

P000734173 15/8423879

18-10-18 059/10 Pru 639269


P000734173 15/3423888

15-11-18 020/11 Pru

639352


2,026.50

522V000026 15/9455545

28-11-18 059/11 Pru

639393

Food and drinks for

78th Nat. Exporters Forum

4,900.00 17.50%

857.50

G0003142310 15/9455549

13-12-18 066/12 Pru 639473


P000734173 13/5674563



04-01-19 010/01 Pru 947532


G0003142310 13/5674576

06-02-19 10-02-

19

Pru

947705


196.88

G0003142310 15/11083573

06-02-19 11-02-

19

Pru

947706


210.18

G0003142310 15/11083572

10-01-19 035/01 Pru

947575


850.50

P0007349173 13/5674564

21//01/2019 070/01 Pru

947617


2,068.50

G0003142310 15/11083563

01-03-19 007/03 Pru 947807


G0003142310 15/11083579

21-03-19 027/03 Pru 947827


G0003142310 15/11083597

08-03-19 030/03 Fab 414180


G0003142310 15/11083587

18-04-19 042/04 Fab 414252


G0003142310 15/0075073

18-04-19 043/04 Fab 414253


G0003142310 15/0075063

143,401.00

25,095.18

28-01-19 059/02 Pru

947758

Accomodation and

Conference iro, NES update and review

151,128.44 17.50%

26,447.48

C0002309289 15/10352897

Channel IT

12-01-19 038/01 Pru 947579

Accomodation for regional visit to

Capecoast

7,118.65 17.50% 1,245.76

4244033545 15/8516132

Digicraft

21-01-19 073/01 Pru 947620

Artworks iro, Intra African Trade Fair in

Cairo, Egypt

14,023.90 17.50% 2,454.18

C0001810251 15/4047316

IYOPO Studios

29-05-19 142/05 Pru 185807

80% cost of refurbishing GEPA's Takoradi Office

100,173.21 17.50% 17,530.31

P0002741717 15/10238701

Matrix ICT

Enterprise



05-03-19 027/03 Fab 414177

Network accessories 85,317.00 3.00% 2,559.51

P0000677450 13A/8968385

R.M Ventures

25-05-19 130/05 Pru

185795

Billboard rental 57,000.00 17.50%

9,975.00

P0003974766 No.21219990

TOTAL 1,589,355.89

206,950.92



2933. The Internal Audit did not scrutinize the VAT invoices before

payments were made to suppliers.

2934. The VAT amount may not be remitted to the GRA thereby

denying the government of the needed revenue for development.

2935. We urged Ag. Director of Finance to provide us with the

Completed VAT returns form, VAT payment receipt and VAT

schedule from suppliers indicating that payments remitted to the

GRA or the responsible Directors should refund the VAT of

GH¢206,950.92 to the Authority.

2936. In response Management said, they are currently in contact

with the Registrar General’s Department to check on the Tax

Identification Number of the identified invoices and also in

communication with the suppliers to re-verify their records. Moving

forward, they would verify from the Ghana Revenue Authority and

the Register General’s Department’s website before payments are

processed.

Unsubstantiated payment of contract staff-GH¢291,030.73 2937. Section 7(1) (a&b) of the Public Financial Management Act,

2016 (Act 921) state among others that a Principal Spending Officer

of a covered entity shall ensure the regularity and proper use of

money appropriated in that covered entity; authorize commitments

for the covered entity within a ceiling set by the Minister under

section 320.

2938. Additionally, paragraph 3.1.5 of the 2018 Budget

Implementation Instructions on Compensation of Employees issued

by the Ministry of Finance, requires approval for financial clearance

for every recruitment whether temporary or permanent in the public

sector.



2939. We noted from our review of records that Management

between January 2018 and April 2019 engaged forty (40) workers on

contract basis ranging between six months and two years renewable

without seeking clearance from the Ministry of Finance.

2940. We again noted that Management ignored the already existing

approved salary structure for GEPA as a result made salary

payments to the contract staffs at discretionary rates.

2941. The Acting Director of HR, Miss Akua Botwe indicated during

an interview that, the salaries of the contract staff are determined

by what is on the Single Spine Salary Structure and top-up

percentage, because of the absence of certain benefits which are the

preserve of permanent employees.

2942. We sighted a memo referenced GEPA/241, dated 4th January,

2019 in which the Executive Secretary, Afua Asabea Asare had

requested the assistance of the Fair Wages and Salaries Commission

in determining the contract sum of temporary employees contracted

by the Authority. However, a response to the request from the Fair

Wages and Salaries Commission was not sighted.

2943. Consequently, a total of GH¢291,030.73 was expended on

such employees for the period under review. Details are shown in

table 314.



Table 314: Unsubstantiated payment of contract staff SN PV

NO DATE AMOUNT PAYEE PURPOSE

1 35 09/18/2018 2,700.00

Bernice Awube Armah Ampofo & One other

SSNIT deductions for the month of July 2018

2 36 09/18/2018 2,700.00


SSNIT deductions for August 2018

3 34 09/18/2018 5,391.80


Ghana Revenue Authority for July 2018

4 33 09/18/2018 5,391.80


Ghana Revenue Authority for July 2018

5 60 09/26/2018 1,404.50 Prudential Bank Ltd Contract fees to Cleaners and Watchmen

6 8 09/26/2018 2,700.00 Bernice Awube Armah Ampofo & One other

SSNIT payment for Sept 2018

7 11 09/07/2018 1,000.00 Yaa Ablorh-Quarcoo Salary advance

8 55 09/26/2018 1,342.46 Bruce Liman Bulu Contract salary for Sept. 2018

9 54 09/26/2018 5,000.00 George Adomako Contract salary for Sept. 2018

10 53 09/26/2018 809.54 Adam Salifu Contract salary for Sept. 2018

11 52 09/26/2018 622.94 William Awuah Contract salary for Sept.

2018

12 51 09/26/2018 1,982.38 Jacintha Ama Tamakloe Contract salary for Sept. 2018

13 50 09/26/2018 3,005.65 David Apetsi Contract salary for Sept. 2018

14 49 09/26/2018 1,342.46 Victoria Akpene Ocloo Contract salary for Sept. 2018

15 48 09/26/2018 2,412.79 Edna Obuo Ansa-Asare Contract salary for Sept. 2018



16 47 09/26/2018 2,412.79 Kwame Mpiani Contract salary for Sept. 2018

17 45 09/26/2018 1,342.46 Emma Owusuwaa Contract salary for Sept. 2018

18 30 11/20/2018 6,307.26 Ghana Revenue Authority P.A.Y.E

19 14-15

11/13/2018 8,563.10 Edwin Oduro Contract salary for June-Oct 2018

20 64 10/22/2018 2,700.00


SSNIT payment for October 2018

21 63 10/22/2018 5,391.80


P.A.Y.E

22 137 24/12/2018 2,684.92 Emma Owusuwaa Addo Contract salary for Nov & Dec. 2018

23 133 24/12/2018 1,245.88 William Awuah Contract salary for Nov & Dec. 2018

24 134 24/12/2018 2,684.92 Bruce Liman Bulu Contract salary for Nov & Dec. 2018

25 135 24/12/2018 2,684.94 Victoria Akpene Ocloo Contract salary for Nov & Dec. 2018

26 104 17/12/2018 1,314.03 Gideon Arhin Contract salary for Dec. 2018

27 105 17/12/2018 1,314.03 Hairatu Lansah Adam Contract salary for Dec. 2018

28 ? 06/07/2018 16,964.52 Bernice Awube Armah Ampofo Contract salary for June 2018

29 ? 06/07/2018 13,689.52 Akua Botwe Contract salary for June 2018

30 ? 06/07/2018 16,964.52 Bernice Awube Armah Ampofo Contract salary for July 2018

31 ? 06/07/2018 13,689.52 Akua Botwe Contract salary for July 2018



32 ? Aug-18 16,964.52 Bernice Awube Armah Ampofo Contract salary for August 2018

31 ? Aug 18 13,689.52 Akua Botwe Contract salary for August 2018

32 ? Sep-18 16,964.52 Bernice Awube Armah Ampofo Contract salary for Sept

2018

33 ? Sep-18 13,689.52 Akua Botwe Contract salary for Sept

2018

34 ? Oct-18 16,964.52 Bernice Awube Armah Ampofo Contract salary for Oct 2018

35 ? Oct-18 13,689.52 Akua Botwe Contract salary for Oct 2018

36 ? Nov-18 16,964.52 Bernice Awube Armah Ampofo Contract salary for Nov 2018

37 ? Nov-18 13,689.52 Akua Botwe Contract salary for Nov 2018

38 ? Dec-18 16,964.52 Bernice Awube Armah Ampofo Contract salary for Dec 2018

39 ? Dec-18 13,689.52 Akua Botwe Contract salary for Dec 2018

Total 291,030.73



2944. We blamed the anomaly on Management’s disregard for

relevant laws and payroll policy guidelines.

2945. The practice lacked transparency and accountability of public

payroll management and undermines the authority vested in the

Minister of Finance to grant clearance before any recruitment is

made.

2946. Further, staff harmony at the Authority could also not be

assured as contract staffs are overpaid compared with the

permanent employees who have worked for the Authority over the

years.

2947. We recommended an immediate halt of the practice and urged

Management to seek retrospective approval for their engagement, in

line with the 2018 Budget Implementation Instructions on

Compensation of employees, regularise the contract staff and put

them on the Ghana Universal Salary Structure (GUSS).

2948. In response Management explained that, they find it difficult

to acknowledge the suggestion of unsubstantiated payment of

contract staff. Again, according to Management “the Authority

required the services of all the staff hired on the contract to ensure

efficient delivery of its mandate. An application was made to the

Ministry of Finance for financial clearance to hire but we have not

received any response to the request. The Governing Council

therefore approved the contract staff to be recruited. In fixing the

salaries of the contract staff, we contacted both the Public Services

Commission (PSC) and the Fair Wages Services Commission (FWSC)

who advised us to adhere to the provision in the PSC human

resource manual regarding the fixing of contract staff wages”.



Auditors’ comment 2949. Notwithstanding this explanation the team still thinks that

the Authority should first seek clearance from the Ministry of

Finance before engaging any contract staff.

Unlawful payment of monthly salary to Executive Secretary, Ms.

Afua Asabea Asare-GH¢162,180.84


921) states that a Principal spending Officer of a covered entity shall


covered entity.

2951. Further, Section 4(k) of the Public Service Commission Act,

1994 is to advise Government on the principles and procedures for

determining salaries and other conditions of service within the

Public Services.

2952. Additionally, Section 3 of the Fair Wages and Salaries

Commission (FWSC) Act, 2007 (Act 737) places the determination

and development of salary structure for public services for which

GEPA forms part, as a core function of the fair wages commission.

2953. Pursuant to Article 195 (1) of the 1992 constitution which

states “Subject to the provisions of this Constitution, the power to

appoint persons to hold or to act in an office in the public services

shall vest in the President, acting in accordance with the advice of

the Governing Council of the service concerned given in consultation

with the Public Services Commission”.

2954. In response to the stated provision of the Constitution, the

Chairman of the Governing Council of Ghana Export Promotion

Authority (GEPA) wrote officially to the Chairman of the Public

Services Commission (PSC) requesting for its Executive Secretary,



Ms. Afua Asabea Asare to be interviewed and issued with a formal

appointment letter.

2955. This interview took place upon the payment of an amount of

GH¢4,640.00 for logistics. Thereafter, a formal appointment letter

referenced AC/22/757/01 and dated 3 December 2018 stating her

salary and other emoluments was subsequently issued. However, Ms

Afua Asabea Asare together with the Governing Council on receipt

of the appointment letter from the PSC, ignored the salary contained

in the appointment letter and settled on their own arranged salary

totalling GH¢20,967.19 instead of the FWSC approved net monthly

salary of GH¢7,452.12 of an Executive Secretary of GEPA. For the

period July 2018 to June 2019, a salary totalling GH¢162,180.84

was over paid to Ms. Afua Asabea Asare. Details shown in the table

315.

Table 315: Unlawful payment of monthly salary to Executive

Secretary

SN PV No Date Month Net Salary

Per GEPA GH¢

Net Salary

Per FWSC GH¢

Overpaid

Salary GH¢

1 1 20/9/18 Jul-18 20,967.19 7,452.12 13,515.07

2 11 5/9/18 Aug-18 20,967.19 7,452.12 13,515.07

3 4 26/9/18 Sep-18 20,967.19 7,452.12 13,515.07

4 6 &8 22/10/18 Oct-18 20,967.19 7,452.12 13,515.07

5 3 & 5 26/11/18 Nov-18 20,967.19 7,452.12 13,515.07

6 1 & 3 18/12/18 Dec-18 20,967.19 7,452.12 13,515.07

7 Jan-19 20,967.19 7,452.12 13,515.07

8 Feb-19 20,967.19 7,452.12 13,515.07

9 Mar-19 20,967.19 7,452.12 13,515.07

10 Apr-19 20,967.19 7,452.12 13,515.07

11 May-19 20,967.19 7,452.12 13,515.07

12 Jun-19 20,967.19 7,452.12 13,515.07

Total 251,606.28 89,425.44 162,180.84

2956. We traced the anomaly to the inability of the Governing

Council and the Ministry of Trade and Industry to ensure that

payment of salary to the Executive Secretary is made within the



approved condition of service by the Fair Wages and Salaries

Commission (FWSC).

2957. As a result, GEPA has been denied funds totalling

GH¢162,180.84 needed for export development activities.

2958. We advised that the overpaid salary totalling GH¢162,180.84

should be refunded by the Executive Secretary Ms. Afua Asabea

Asare failure which the members of the Governing Council and the

Executive Secretary Ms. Afua Asabea Asare would be jointly held

liable.

2959. In response, Management explained that “the salaries of

Executive Director and her deputies were paid on the approval of the

Governing Council based on the salaries of their predecessors. The

Council has already written to the Minister of Finance through the

Minister of Trade for ratification. While we wait for the Minister, the

Council ordered that only 70% of our approved salary be paid and

this has been the case since July 2018. The Board is working

frantically to ratify and regularise our salaries since it is established

that we are politically appointed executives of the Authority. We are

not supposed to be worse off compared to our previous employment.

The Deputies are still waiting to be recalled by the PSC for the much-

awaited interview”.

2960. The team would be grateful if payslips detailing their salaries

from their previous employment could be provided by the ES and

her Deputies to justify the above claim that they are political

appointed executives and not supposed to be worse of compared to

their previous employment.



Overpayment of salary to Deputy Executive Secretaries –

GH¢246,993.88

2961. Section 7 (1a) of the Public Financial Management Act, 2016

(Act 921) states that a Principal spending Officer of a covered entity


that covered entity.

2962. Further, Section 4(k) of the Public Service Commission Act,

1994 is to advise Government on the principles and procedures for

determining salaries and other conditions of service within the

Public Services.

2963. Additionally, Section 3 of the Fair Wages and Salaries

Commission (FWSC) Act, 2007 (Act 737) places the determination

and development of salary structure for public services for which

GEPA forms part, as a core function of the Fair Wages and Salaries

Commission.

2964. Pursuant to Article 195 (1) of the 1992 constitution which

states “Subject to the provisions of this Constitution, the power to

appoint persons to hold or to act in an office in the public services

shall vest in the President, acting in accordance with the advice of

the Governing Council of the service concerned given in

consultation with the Public Services Commission”, the Chairman of

the Governing Council of Ghana Export Promotion Authority (GEPA)

wrote officially to the Chairman of the Public Service Commission

(PSC) in response, requesting for its two Deputy Executive

Secretaries (Mr. Samuel Dentu and Mr. Albert Kassim Diwura) to

be interviewed and issued with formal appointment letters.

2965. However, we noted per a letter referenced AC22/757/01 and

dated 31 August 2018 inviting Mr. Dentu and Mr. Albert Kassim

Diwura for an interview on Tuesday 18th September 2018 at



10:00am; to date, the two officers have not subjected themselves to

be interviewed. When asked during an interview session with the two

Officers, they confirmed that they are yet to be recalled by the PSC

after the initial invitation for interview was postponed. This claim

was however not backed with any official correspondence.

2966. Whilst waiting for PSC to invite them for the interview; the

Governing Council authorised the payment of total salaries of

GH¢214,846.80 and GH¢197,443.00 to to Mr. Samuel Dentu and

Mr. Albert Kassim Diwura respectively between July 2018 to June

2019. These were far above the approved Fair Wages and Salaries

Commission’s condition of service net monthly salary of

GH¢6,887.33 resulting in an overpayment of GH¢246,993.88.


Table 317: Overpayment of salary to Deputy Executive Secretaries Date Position Month Net Salary

Per GEPA

Net Salary

Per FWSC

Overpaid

Salary

Mr. Samuel Dentu

DES, Finance

Jul 2018-Jun 2019 214,846.80 82,647.96 132,198.84

Mr. Albert

Kassim Diwura

DES,

Administr

ation

Jul 2018-

Jun 2019 197,443.00 82,647.96 114,795.04

412,289.80 165,295.92 246,993.88

2967. We traced the anomaly to the inability of the Governing

Council and the Ministry of Trade and Industry to ensure that

payment of salary to the Executive Secretary is made within the

approved condition of service by the Fair Wages and Salaries

Commission (FWSC).

2968. The anomaly amounts to abuse of power and undermines the

principles of probity, propriety and accountability highly required of

public office holders.



2969. GEPA has been denied funds totalling GH¢246,993.88

needed for export development activities.

2970. We advised that the overpaid salary totalling GH¢246,993.88

should be refunded by the two officers’ failure which the members

of the Governing Council together with Mr. Samuel Dentu and Mr.

Albert Kassim Diwura should be jointly held liable.

2971. In response, Management explained that “the salaries of

Executive Director and her deputies were paid on the approval of the

Governing Council based on the salaries of their predecessors. The

Council has already written to the Minister of Finance through the

Minister of Trade for ratification. While we wait for the Minister, the

Council ordered that only 70% of our approved salary be paid and

this has been the case since July 2018. The Board is working

frantically to ratify and regularise our salaries since it is established

that we are politically appointed executives of the Authority. We are

not supposed to be worse off compared to our previous employment.

The Deputies are still waiting to be recalled by the PSC for the much-

awaited interview”.

Unrecovered staff loans-GH¢32,180.76


2004 L.I 1802 requires that the head of government department

shall secure the due and proper collection of government revenue


of instructions issued or approved.

2973. Management between March 2017 and June 2018 granted

staff loans totalling GH¢47,604.50 to 12 Staff for which only

GH¢15,423.74 has been recovered leaving a difference of



GH¢32,180.76 yet to be collected from the Officers over a year that

the advances were granted. Details are shown in table 318.

Table 318: Unrecovered staff loans SN Loan date Name of beneficiary Total Loan

Granted

GH¢

Total Loan

Recovered

GH¢

Outstanding

Loan

GH¢

1 09/05/2018 Ruth Acquaah 7,220.00 2,700.00 4,520.00

3 08/17/2017 Hajara Issaka 3,400.00 1,780.63 1,619.37

4 09/11/2017 Godwin Anku 1,224.00 1,045.27 178.73

5 09/11/2017

Fortune Komla

Worlanyo 2,024.00 403.17 1,620.83

7 09/26/2017 Francis Arthur 2,244.00 977.27 1,266.73

8 10/03/2017 Ramatu Zeanafa 2,295.00 1,447.78 847.22

9 10/03/2017 Juliet Obese 2,677.50 1,533.59 1,143.91

10 01/24/2018 Hamza Addallah 3,060.00 927.21 2,087.79

11 01/26/2018 Francis Yeboah 2,040.00 670.92 1,369.08

12 02/23/2018 Anthony Komieter 3,060.00 1,114.44 1,945.56

13 02/26/2018 Anthoinette Quayson 10,200.00 1,480.38 8,719.62

14 03/20/2018 Catherine Gordor 8,160.00 1,343.08 6,816.92

47,604.50 15,423.74 32,180.76

2974. However, the team did not sight any official policy document

indicating the terms and conditions of granting such facilities to

Staff.

2975. We blamed the anomaly on Management’s lack of

commitment in pursuing the beneficiaries for the outstanding loans

and non-existence of agreed terms of repayment before the loans

were granted.

2976. The delay to recover the outstanding loan could deprive the

Authority funds to carry out its mandate and other staff could also

be denied the opportunity to benefit.

2977. In the event a Staff defaults in payment of the loan,

Management would not have any basis to institute an appropriate

action against him/her.



2978. We urged Management without further delay to recover the

overdue advance from the beneficiaries’ failure which the

authorising and approving officers who made the payment should

be jointly held liable.

2979. We again impressed upon the Governing Council to put

together a policy document to regulate the terms and conditions of

granting loans and any other credit facility to staff at the Authority.

2980. In response Management said that they have written to all

staff reminding them to redeem their indebtedness to the Authority

and will continue to pursue recovery of the debt to the Authority.

Overpayment of SSNIT contribution on behalf of Ms. Afua

Asabea Asare-GH¢40,480.80 2981. Section 3 of the Fair Wages and Salaries Commission (FWSC)

Act, 2007 (Act 737) places the determination and development of

salary structure for public services for which GEPA forms part, as a

core function of the fair wages commission.

2982. Section 3 (1) of the National Pensions Act, 2008 (Act 766)

states that an employer of an establishment shall deduct from the

salary of every worker in the establishment immediately at the end

of the month, a worker’s contribution of an amount equal to five and

half per centum of the worker’s salary for the period, irrespective of

whether or not the salary is actually paid to the worker.

2983. Section 3(2) further requires that an employer of an

establishment shall pay for each month in respect of each worker,

an employer’s contribution of an amount equal to thirteen per

centum of the worker’s salary during the month.



2984. We noted that the Governing Council of the Authority ignored

the approved condition of service in accordance with section 3 of the

Fair Wages and Salaries Commission (FWSC) Act, 2007 (Act 737)

and authorised a basic monthly salary of GH¢22,500.00 to the

Executive Secretary Ms. Afua Asabea Asare instead of the FWSC

approved basic monthly salary of GH¢4,265.39. Consequently,

monthly SSNIT contribution computation was based on the

Council’s approved basic salary of GH¢22,500.00 instead of the

FWSC approved basic monthly salary of GH¢4,265.39 resulting in

an overpayment of SSNIT contribution of GH¢40,480.80 between

July 2018 to June 2019. Details shown in the table 319.

Table 319: Overpayment of SSNIT contribution SN PV NO Date Month Basic

GEPA Salary

18.5% SSNIT on

GEPA Basic

Salary

FWSC Basic Salary

18.5 % SSNIT

on FWSC

SSNIT overpayment

1 Jul-18 22,500.00 4.162.50 4,265.39 789.10 3,373.40

2 11 5.9.18 Aug-18 22,500.00 4,162.50 4,265.39 789.10 3,373.40

3 4 26.9.18 Sep-18 22,500.00 4,162.50 4,265.39 789.10 3,373.40

4 6 &8 22.10.18 Oct-18 22,500.00 4,162.50 4,265.39 789.10 3,373.40

5 3 & 5 26.11.18 Nov-18 22,500.00 4,162.50 4,265.39 789.10 3,373.40

6 1 & 3 18.12.18 Dec-18 22,500.00 4,162.50 4,265.39 789.10 3,373.40

7

Jan-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

8

Feb-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

9

Mar-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

10

Apr-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

11

May-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

12

Jun-19 22,500.00 4,162.50 4,265.39 789.10 3,373.40

40,480.80

2985. The Governing Council’s disregard for a statutory Public

Services salary structure resulted in the anomaly.



2986. The situation deprived GEPA of funds totalling GH¢40,480.80

needed to prosecute its core mandates.

2987. We advised that Management should seek for a refund of the

SSNIT contribution totalling GH¢40,480.80 and pay back to the

Authority’s accounts for verification or ask the Executive Secretary

Ms. Afua Asabea Asare to refund the difference.

2988. In response Management explained that, “the SSNIT paid for

the Executive Secretary and her Deputies was based on their

salaries as approved by the Governing Council upon their

appointment on assumption of office. That, their salaries were paid

following the approval of the Governing Board based on the salaries

of their predecessors. The Board have already written to the Minister

of Finance through the Minister of Trade for ratification. Whilst

waiting for the reply from the Minister of Finance, the Council

actually ordered that only 70% of their approved salary must be paid

and this has been the case since July 2018. The Board is working

frantically to ratify and regularise the salaries of the Executives.

2989. As a rule of thumb in salary administration, no employee

must be made worse of in terms of salaries when moving from one

job to another even as a political appointee of the President of the

Republic. The ES was moved from one role to the current role where

she was on Article 71 pay structure. Advocating for her to be paid

GH¢4,263.39 as basic salary is not only irregular but demotivating,

hence the Governing Council in its wisdom decided to approve same

basic salary of the previous Executive team for the current team”.

Auditors’ comment

2990. The Audit team still maintain the view that the determination

of salaries for the Executive Secretary and the two Deputies does not

rest with the Governing Council and that the salaries being enjoyed



is unlawful. The earlier response that the Executive Secretary, Ms.

Efua Asabea Asare was previously on Article 71 pay structure is

completely false because according Article 71 (1) of the 1992

Constitution” the salaries and allowances payable, and the facilities,

privileges available to-

(a) The Speaker and Deputy Speakers and members of

Parliament;

(b) The Chief Justice and the other Justices of the Superior

Courts of Judicature;

(c) The Auditor General, the chairman and Deputy Chairmen of

the Electoral Commission, the Commissioner for Human

Rights and Administrative Justice and his Deputies and the

District Assembly Common Fund Administrator;

(d) The Chairman, Vice-Chairman and the other members of

(i) A National Council for Higher Education, howsoever

described

(ii) The Public Services Commission;

(iii) The National Media Commission;

(iv) The Lands Commission; and

(v) The National Commission for Civic Education

2991. Being expenditure charged on the Consolidated Fund, shall be

determined by the President on the recommendations of a committee

of not more than five persons appointed by the President, acting in

accordance with the advice of the Council of State”. In view of the

above, the Executive Secretary does not fall into any of the

aforementioned positions.

Overpayment of SSNIT contribution on behalf of Deputy Executive Secretaries – GH¢67,507.68

2992. Section 3 of the Fair Wages and Salaries Commission (FWSC)

Act, 2007 (Act 737) places the determination and development of



salary structure for public services for which GEPA forms part, as a

core function of the fair wages commission.

2993. Section 3 (1) of the National Pensions Act, 2008 (Act 766) state

that an employer of an establishment shall deduct from the salary

of every worker in the establishment immediately at the end of the

month, a worker’s contribution of an amount equal to five and half

per centum of the worker’s salary for the period, irrespective of

whether or not the salary is actually paid to the worker.

2994. Section 3(2) further require that an employer of an

establishment shall pay for each month in respect of each worker,

an employer’s contribution of an amount equal to thirteen per

centum of the worker’s salary during the month.

2995. We noted that the Governing Council of the Authority ignored

the approved condition of service in accordance with section 3 of the

Fair Wages and Salaries Commission (FWSC) Act, 2007 (Act 737)

and authorised a basic monthly salary of GH¢19,125.00 each to the

Deputy Executive Secretaries Mr. Samuel Dentu and Mr. Albert

Kassim Diwura instead of the FWSC’s approved basic monthly salary

of GH¢3,920.62. Consequently, monthly SSNIT contribution

computation was on the Council’s approved basic salary of

GH¢19,125.00 instead of the FWSC approved basic monthly salary

of GH¢3,920.62 resulting in overpayment of of GH¢33,753.84 to

each of the Deputy Executive Officers. Details are shown in the table

320.



Table 320: Overpayment of SSNIT contribution

Name Basic

GEPA Salary

18.5%

SSNIT on GEPA

Salary

FWSC

Basic Salary

18.5%

SSNIT on FWSC

Salary

SSNIT

Overpayment

Mr. Samuel

Dentu

229,500.00

42,457.56

47,047.44

8,703.72

33,753.84

Mr. Albert

Kassim

Diwura

229,500.00

42,457.56

47,047.44

8,703.72

33,753.84

459,000.00

84,915.12

94,094.88 17,407.44 67,507.68

2996. The Governing Council’s disregard for a statutory Public

Services salary structure resulted in the anomaly.

2997. The situation deprived GEPA of funds totalling GH¢67,507.68

needed to prosecute its core mandates.

2998. We advised that Management should seek for a refund of the

SSNIT contribution totalling GH¢67,507.68 and pay back to the

Authority’s accounts for verification or ask the Deputy Executive

Secretaries Mr. Samuel Dentu and Mr. Albert Kassim Diwura to

refund the difference.

2999. In response Management explained that, “the SSNIT paid for

the Executive Secretary and her Deputies was based on their

salaries as approved by the Governing Council upon their

appointment on assumption of office. That, their salaries were paid

following the approval of the Governing Board based on the salaries

of their predecessors. The Board have already written to the Minister

of Finance through the Minister of Trade for ratification. Whilst

waiting for the reply from the Minister of Finance, the Council

actually ordered that only 70% of their approved salary must be paid

and this has been the case since July 2018. The Board is working



frantically to ratify and regularise the salaries of the Executives. As

a rule of thumb in salary administration, no employee must be made

worse of in terms of salaries when moving from one job to another

even as a political appointee of the President of the Republic.

Auditors’ comment

3000. The Audit team still maintain the view that the determination

of salaries for the Executive Secretary and the two Deputies does not

rest with the Governing Council and that the salaries being enjoyed

is unlawful.

Imprest for Foreign Travel expenses not accounted for-US$62,814.49


Regulations, 2004 (L.I. 1802) requires that imprest shall be retired

by the close of the financial year and that any imprest not so retired

shall be adjusted into a personal advance account in the name of

the imprest holder.

3002. Our review of Foreign Travel Expenses disclosed that out of a

total amount of US$751,061.00 granted as imprest to various

members of staff, US$688,246.51 was retired leaving a balance of

US$62,814.49 unretired. Details are shown in table 321.



Table 321: Imprest for Foreign Travel expenses not accounted for

No. Date PV No.

Cheque No.

Payee Imprest Amount

USD

Amount Accounted

for

USD

Imprest not

Accounted

for USD

1 10-05-18 1 391306 Abdallah Z.K.

Banda

2,643.00 1,762.00 881.00

2 10-05-18 1 391306 Gifty Otoo 2,643.00 1,762.00 881.00

3 10-05-18 1 391306 Joyce Owusu

Kwarteng

2,643.00

1,762.00

881.00

4 13-07-19 1 391307 Samuel Dentu 3,192.00 1,592.00 1,600.00

5 13-07-20 1 391307 Zakari Bandah 3,192.00 1,992.00 1,200.00

6 05-09-18 1 391310 Mr. Hope

Amrado

10,268.00 9,668.00 600.00

7 05-09-18 1 391310 Ms. Catherine Gordor

10,268.00 9,768.00 500.00

8 05-09-18 1 391310 Ms. Joana

Abombisa

10,268.00 9,768.00 500.00

9 05-09-18 1 391310 Ms. Juliet

Sintim

10,268.00 9,968.00 300.00

10 05-09-18 1 391310 Mr.

Athanasius

Kudjoe Ziku

10,268.00

9,968.00

300.00

11 07-09-18 3 391312 Afua Asabea Asare

9,795.00 7,795.00 2,000.00

12 07-09-18 3 391312 Samuel Dentu 9,795.00 8,195.00 1,600.00

13 07-09-18 3 391312 Erasmus Eshun

9,795.00 8,595.00 1,200.00



14 07-09-18 4 391313 Afua Asabea

Asare

6,090.00 2,545.00 3,545.00

15 07-09-19 4 391313 Ursula Tawiah 6,090.00 5,090.00 1,000.00

16 18-10-18 1 391314 Jacinta

Tamakloe

11,919.00 10,919.00 1,000.00

17 18-10-18 1 391314 Samuel Dentu 11,919.00 10,119.00 1,800.00

18 18-10-18 1 391314 Agnes Adjei

Sam

11,919.00 10,719.00 1,200.00

19 18-10-18 1 391314 Michael

Mensah

11,919.00 10,919.00 1,000.00

20 18-10-18 2 391315 Afua Asabea Asare

13,902.00 11,902.00 2,000.00

21 18-10-18 2 391315 Albert Kassim

Diwura

13,902.00

12,302.00

1,600.00

22 18-10-18 2 391315 Banda

Abdallah

Zakaria

13,902.00

12,702.00

1,200.00

23 18-10-18 3 391316 Samuel Dentu 3,550.00 1,950.00 1,600.00

24 18-10-18 4 391317 Finance &

Admin

42,477.00 39,894.51 2,582.49

25 18-10-18 4 391317 Regina Manu 42,477.00 41,477.00 1,000.00

26 18-10-18 4 391317 Samuel Lartey 42,477.00 41,477.00 1,000.00

27 18-10-18 4 391317 Theodora

Froko

42,477.00 41,277.00 1,200.00

28 18-10-18 4 391317 Afua Asabea

Asare

42,477.00 40,477.00 2,000.00

29 30-11-18 5 391326 Samuel Dentu 2,146.00 734.00 1,412.00



30 30-11-18 6 391327 Afua Asabea

Asare

37,160.00 29,460.00 7,700.00

31 30-11-18 6 391327 Sandy Osei 37,160.00 35,160.00 2,000.00

32 30-11-18 6 391327 Afua Asabea

Asare

37,160.00 35,160.00 2,000.00

33 30-11-18 6 391327 Joice Tawiah-

Baah

37,160.00 36,160.00 1,000.00

34 30-11-18 6 391327 Joice Owusu Kwarteng

37,160.00

36,160.00

1,000.00

35 30-11-18 6 391327 Erasmus

Eshun

37,160.00 35,960.00 1,200.00

36 30-11-18 6 391327 Samuel Dentu 37,160.00 34,448.00 2,712.00

37 30-11-18 6 391327 Sandy Osei

Agyemang

37,160.00

35,160.00

2,000.00

38 31-10-18 8 391321 Ama Achiaa

Amankwah

Baafi

1,940.00

1,540.00

400.00

39 30-11-18 6 391327 Finance and

Admin

37,160.00 31,940.00 5,220.00

Total 751,061.00 688,246.51 62,814.49



3003. Failure by the Ag. Director of Finance to demand

accountability from the Imprest Holders after the officers have

returned from the various trips accounted for this anomaly.

3004. The situation undermines Probity, Propriety and

Accountability. We were therefore unable to establish whether the

imprest of US$62,814.49 was used for the intended purposes.

3005. We urged the Executive Secretary and the Ag. Director of

Finance to ensure that all imprest given out are retired without

further delay.

3006. Meanwhile, the Executive Secretary who authorised this

imprest should pursue various individuals to fully account for them

or refund same.

3007. In response Management explained that this observation is

being addressed and will like to indicate that the DSA given to staff

when travelling abroad basically takes care of hotel and feeding. The

ED will be engaging the Board and the relevant authorities to discuss

the matter for resolution going forward.

Assistance to the Ministry of Trade and Industry not supported– GH¢440,000.00


921) requires that a Principal Spending Officer should ensure

regularity and proper use of funds appropriated to that covered

Entity.

3009. We noted that the Ministry of Trade and Industry on four

occasions wrote to seek financial support totalling GH¢440,000.00

from the Authority to attend various trade forums, summit and



exhibitions without providing relevant supporting documents.

Details are attached as table 322.

Table 322: Assistance to the Ministry of Trade and Industry not

supported No Date PV

No. Cheque No.

Payee Details Amount Remarks

1 17/09/18 15 639151 Ministry of

Trade and

Industry

Support for

China

International

Import

Exposition

380,000.00 Not

Accounted

for with

any

expenditure documents

or

Exposition

report

2 27/7/17 72 639040 Ministry of

Trade and Industry

Support for

Ministry of Trade to

attend the

launch expo

2020 in

Dubai

10,000.00 Expo 2020

report

3 05/06/2018 15 821063 Ghana

Investment Promotion

Authority

Support for

Agro Summit in

London -

GBP

4,000.00

25,000.00 Summit

Report

First Atlantic

Bank

4 13/04/18 37 414037 Director of

Finance , MOTI

Support for

Business Forum in

London

25,000.00 Forums

Report from the

Ministry

Total 440,000.00

3010. Failure by the Executive Secretary to demand from the

Ministry of Trade reports on the fora, summit and exhibitions

attended accounted for this anomaly.



3011. As a result, we could not establish whether these amounts

were used for the intended purposes.

3012. We advised the Executive Secretary to ensure that the

Ministry of Trade provides supporting documents to cover such

events. Meanwhile relevant supporting documents relating to the

assistance offered should be made available from the Ministry for

our review, failure of which the amount of GH¢440,000.00 should

be recovered from the Ministry of Trade.

3013. In response Management explained that the Ministry of Trade

and Industry is the parent and all requests for support from the

Ministry were signed by the Chief Director of the Ministry with the

appropriate documents and same was used to support the payment

vouchers. Management wish to mention that all funds sent to the

Ministry for the purpose for which they were requested were duly

acknowledged and receipted. Normally, the Ministry will not report

back to the Authority on the utilisation of the funds and so will

advise the audit team to visit the Chief Director of the Ministry to

ascertain any evidence of use of funds.

Rentals for Office Premises not supported-GH¢444,000.00


921) requires that a Principal Spending Officer should ensure

regularity and proper use of funds appropriated to that covered

Entity.

3015. We noted that a debit note of GH¢638,150.00 was served by

Ghana Supply Company Ltd to the Authority demanding the

payment of outstanding rents and cost of repairs to damages caused

by staff of the Authority in 2017.



3016. In response, a total payment of GH¢444,000.00 was made

without any evidence of tenancy agreement or cost of damages.

Details of payments are provided in table 323.

Table 323 Rentals for Offices Premises not supported

No Date PV No. Chq No Amount

1 08/12/17 030 386655 100,000.00

2 25/01/18 056 413794 75,000.00

3 28/02/18 089 413903 75,000.00

4 26/11/18 005 639413 194,000.00

Totals 444,000.00

3017. Weak internal checks accounted for this anomaly.

3018. In the absence of any tenancy agreement and records on

liabilities, we could not ascertain the authenticity of the payments

made.

3019. To promote transparency and accountability, we requested

the Executive Secretary to justify the payments made with Tenancy

Agreement and records of all debit notes served by the Company

from 1992 to date or risk having the total payment of

GH¢444,000.00 disallowed.

3020. In response Management explained that the Authority until

2017 operated from the Republic House that belongs to the Ghana

Supply Company Limited. Since the property did not belong to

GEPA, the Authority paid rent for the occupancy of the property.

Management have formally written to the Ghana Supply Company

Limited for a copy of the agreement and same will be furnished to

the audit team.



Non judicious use of Funds for Video Production-

GH¢100,000.00


states “A head of department shall ensure that moneys are utilised

in a manner that secures both optimum value for money and the

intention of Parliament”.

3022. We noted that a total payment of GH¢93,650.80 vide PV No.

032, dated 19/03/2019 was in respect of a contract awarded to Yaw

Pare Photography to produce a 1 and 3 minutes video in English and

French as an urgent need to strategically showcase Ghana Export

Promotion Authority (GEPA).

3023. The initial invoice from Yaw Pare Photography was

GH¢100,000.00. An audit scrutiny of the supporting documents

disclosed two additional computer-generated invoices from 3Cubes

Gallery and WON Films with GH¢140,000.00 and GH¢120,000.00

respectively all bearing 18/10/2018 as dates of issue and 0001 as

invoice numbers.

3024. The audit team views these two invoices as not authentic and

cannot be relied on as genuine enough to serve as alternative

quotations. The audit team also discovered that Yaw Pare

Photography issued to the Authority a VAT invoice which bears a

Tax Identification Number (TIN) not belonging to him; with wrong

calculations and no official receipt rather, a computer generated one.

3025. A further review disclosed a memo dated 18th March, 2019

from the former Procurement Officer, Kwabena Baffour Kumah to

the Executive Secretary (ES) through the Deputy Executive

Secretary (DES) indicating that the Procurement Department

reviewed the contract and their initial checks indicates the

Supplier’s quoted price of GH¢100,000.00 was about 50% higher



than the market price but the Supplier remains unwilling to review

their quoted price. The Procurement Department further advised

Management that the Supplier be paid an amount consistent with

the prevailing market price.

3026. Notwithstanding the advice, the ES insisted that Yaw Pare

Photography be paid the said contract sum of GH¢100,000.00

(inclusive VAT and Withholding Tax) which the team viewed to be

injudicious use of funds.

3027. This anomaly could be attributed to the failure of the Internal

Audit Unit to exercise proper internal control and procurement

procedures.

3028. This situation has resulted in the Authority not making

judicious use of available funds and has not achieved value for

money.

3029. We recommended that in the absence of genuine and reliable

procurement documents on the award of the contract, the ES, Ms.

Afua Asabea Asare, the DES, Samuel Dentu and the Ag. Director of

Finance, Bernice Armah Ampofo who authorised this payment

should be made to refund the amount of GH¢100,000.00.

3030. In response Management explained that it was sought to

project GEPA positively through Mass Media. The output of the

production of the video entails a huge background work, which in

their view was worth the amount expended on the video.

Management further stated that it will investigate the issues raised

by the Audit team.

Auditors’ Comment

3031. The Audit team is however waiting to hear from management

on the outcome of the investigation.



Overpayment of Bonus- GH¢28,374.80


(Act 921) states that “A Principal Spending Officer of a covered entity

shall (a) ensure the regularity and proper use of money appropriated

in that covered entity”.

3033. We noted that, on winning the World Trade Promotion

Organisation Award for 2018 held in Paris, the Executive Secretary

per memo referenced GEPA/241 and dated 11th December, 2018

requested the Board Chairman to approve for payment for staff a full

months basic salary totalling GH¢187,764.81 as bonus. The

breakdown is shown in table 324.

Table 324: Overpayment of Bonus

Staff Amount

GH¢

Permanent Staff 120,085.85

Contract Staff 32,241.96

ES and Two Deputies 35,437.00

187,764.81

3034. The Permanent and Contract staff as depicted above were

paid based on the approved Fair Wages and Salaries Commissions

revised Single Spine Salary Structure for 2018.

3035. However, the Executive Secretary and the two Deputies opted

for their seven (7) months pro-rata bonuses to be calculated on

unapproved basic salaries of GH¢22,500.00 and GH¢19,125.00

respectively, resulting in overpayment of GH¢28,374.80 to them.



Table 324b: Overpayment of Bonus

Name Rank Bonus

Paid

GH¢

Fair

Wages

Approved

Scale GH¢

Difference

GH¢

Afua Asabea Asare

Chief Executive

Officer

3,125.00

2,488.15 636.85

Samuel Dentu

Deputy Chief Executive

Officer

11,156.00 2,287.03 8,868.97

Albert Kassim

Diwura

Deputy Chief

Executive

Officer 11,156.00

2,287.03 8,868.97

35,437.00

7,062.20 28,374.80

3036. These basic salaries were purported to have been approved

by the Board Chairmen per a letter signed on 25th June, 2018 stating

minutes of a meeting held on 18th June, 2018 at the Authority’s

premises.

3037. Paragraph 2 of the said letter states “The Board also resolved

to take appropriate steps to write to the Ministry of Finance through

the Ministry of Trade and Industry and the Public Services

Commission for the ratification of same”. No correspondence to that

effect has been sighted. The team also sighted an appointment letter

signed on behalf of the Chairman of the Public Services Commission

to the ES, stating an annual basic salary scale of SSS Level 24L

between GH¢51,184.73- GH¢53,839.78 per annum. And she is to

enter the scale at the 1st point of GH¢51,184.73 per annum and the

monthly basic is GH¢4,265.39. The two Deputies who are also

supposed to be on Level 23H are also entitled to a monthly basic

salary of GH¢3,920.64.



3038. The Governing Council and Management’s total disregard for

laid down procedures in salary administration caused this anomaly.

3039. The anomaly amounts to illegitimate disbursement of public

funds without due process.

3040. We requested Management to provide evidence of ratification

of the approval of the basic salary for the three (3) officers, failure of

which the ES and the two Deputies be made to refund the

overpayment bonuses totalling GH¢28,374.80.

3041. In response Management said the Council approved the

payment of bonus. The basis for calculation was the basic salaries.

Failure to Implement Audit Recommendations 3042. Section 29 of the Audit Service Act, 2000 (Act 584) states:

(1) The Auditor-General or any authorised person acting on his

behalf shall, as a result of an audit conducted by him, issue

observations to the Controller and Accountant-General or the

management of the audited organisation and the comments made

by the management shall be returned to the Auditor-General within

30 days after the receipt of the observation. (2) A person who fails

or refuses to reply to the audit observations within the period

specified in subsection (1) shall, if the Auditor-General so directs,

have his emoluments and allowances withheld for so long as the

person fails to comply.

3043. The Executive Secretary did not ensure that Management

responded to our 2018 Management letter (reference no.

AS/GEPA/2018/04) for the period January 2012 to April 2018

issued in September 2018.



3044. Poor Supervision by the Governing Council and the absence

of an Audit Committee to perform its statutory role accounted for

this anomaly.

3045. Audit Recommendations made in the previous Management

letter have still not been addressed as at the time of audit.

3046. We requested the Executive Secretary to explain with valid

reasons why GEPA did not respond to the Management letter after

212 days of issue and why sanctions should not be imposed for

failing to comply with Act 584.

3047. In response Management acknowledged the observation and

said, they have however made contacts at the Audit Service (Public

Accounts) Office to address the responses and also get clearance

before appearing at the Public Accounts Committee of Parliament.

Issues Outstanding from Special Audit (January 2012 to April 2018)

Use of the 10% of 0.75% Import Levy funds from EXIM Bank to pay salaries and other allowances without approval-

GH¢3,390,703.76

3048. Article 178 (2) of the 1992 Constitution of the Republic of

Ghana states “No moneys shall be withdrawn from any public fund,

other than the Consolidated Fund and the Contingency Fund,

unless the issue of those moneys has been authorised by or under

the authority of an Act of Parliament”.

3049. Regulation 179 (1) & (2) of the Financial Administrative

Regulations, 2004, (L.I. 1802) further providess “Except as provided

for in the Financial Administration Act, 2003, (Act 654), and these

Regulations, a head of department may not authorise payment to be



made out of funds earmarked for specific activities for purposes

other than those activities. A person who makes a payment contrary

to sub-regulation (1) is in breach of financial discipline as defined in

regulation 8(1)”.

3050. We noted that between April 2017 and June 2018,

Management of the Authority ignored the existing arrangement with

the CAGD for the payment of the Authority’s staff salaries and

unilaterally used a total amount of GH¢3,390,703.76 from the 10

percent share of 0.75 percent Import Levy funds received from the

EXIM Bank to pay salaries and other emoluments of the Authority’s

staff as well as honorariums to members of Parliamentary Select

Committees without approval from Fair Wages and Salaries

Commission and Public Services Commission. A summary of the

payments are shown in table 325.

Table 325 Use of the 10% of 0.75% Import Levy funds from EXIM

Bank

Date/Period Details Payee Amount

GH¢

May 2017 to

May 2018 Executive Salaries Hon. Gifty Klenam, ES 432,216.40

May 2017 to

May 2018 Executive Salaries

Mr. Eric Twum

Amoako, deputy ES 418,749.20

May 2017 to May 2018

Executive Salaries Mr. Akilu Sayibu, deputy ES

278,768.56

May 2017 to

May 2018 Executive Salaries

Mrs. Bernice Ampofo

Armah 282,665.06

May 2017 to

May 2018 Executive Salaries Ms. Akua Botwe 194,530.06

22 May 2017 Rent Allowance

Advance Hon. Gifty Klenam, ES 324,000.00

27 May 2017 Rent Allowance

Advance

Mr. Eric Twum


18 July 2017 Rent Allowance Advance

Mr. Akilu Sayibu, deputy ES

72,000.00

17 Jan. 2018 Clothing

Allowance

Hon. Gifty Klenam,

Eric Twum Amoako &

Akilu Sayibu

94,500.00



11 July 2017 For Soft

Furnishing Hon. Gifty Klenam, ES 65,530.00

11 July 2017 For Soft

Furnishing

Mr. Eric Twum


Aug. to Dec.

2017

Honorarium,

sitting allowances, courtesies &

protocols, special

allowances

Members of

Parliamentary Select

Committee on Trade & Industry, Women’s

Caucus in Parliament

and Finance

Committee

192,400.00

May 2017 to

April 2018

50% Motivation

Allowances Staff of GEPA 639,417.62

June 2018 Executive Salaries Ms. Afua Asabea Asare, ES

26,446.68

June 2018 Executive Salaries Mr. Albert Kassim

Diwura, deputy ES 22,570.09

June 2018 Executive Salaries Mr. Samuel Dentu,

deputy ES 22,570.09

Total 3,390,703.76

3051. This anomaly arose due to the absence of

regulations/guidelines on the Utilisation of the levy.

3052. This lapse could defeat the objectives for which the 10 percent

Import Levy funds was instituted.

3053. We requested Management to provide justification for using

the 10 percent Import Levy funds to pay staff salaries, allowances

and honorarium to Parliamentarians, failure of which the amount

should be disallowed.

3054. We also advised that Management should seek for clear

guidelines to regulate the use of the funds.

3055. We again urged Management to ensure that future payments

of salaries and other entitlement are made within legally approved

and mandated constitutional body. Failure to comply with this, will



lead to the activation of the Auditor-General’s mandate under Article

187 (7) (b) to disallow the expenditure.

3056. In response, Management referred to Section 6 (6) of the GEPA

Act, 1969 (N.L.C.D.396) which states “The remuneration, allowances

and other payments payable to officers and employees of the

Authority shall be paid by the Authority out of funds at its disposal,

unless other arrangements have been made for the payments” and

further indicated that they believe that the funds from the Exim

Bank is to support the running of GEPA which payment of Executive

salaries form part. Also, Management has disclosed that they have

submitted the observation to the former executives for the

appropriate responses on some of the payments.

3057. However, we disagree with Management since under Section

3 (h) of the FWSC Act, 2007 (Act 737), which is a later creation of

Parliament, it is the FWSC which shall “develop salary structures for

the public service”. Secondly, the GEPA Act quoted by the

Management does not prescribe the mode of payment which is the

subject matter as addressed under Regulation 295 of the FAR, 2004

(L.I. 1802) which also states “When a public servant’s personal

emolument is payable on Controller and Accountant General’s

Department mechanised payroll or the Departments main payroll,

payment by manual vouchers is prohibited except as approved by

the Controller and Accountant-General and any other system used

in payment of public servants shall be approved by Controller and


Over payment of salary to Hon. Gifty Klenam-GH¢332,982.88

3058. Section 4(k) of the Public Service Commission Act, 1994

(Act482) is to advise Government on the principles and procedures



for determining salaries and other conditions of service within the

Public Services.

3059. We noted that the former ES, Hon. Gifty Klenam and the

Governing Council of the Authority ignored the FWSC approved

SSSS salary structure for all staff of the GEPA and the existing

arrangement with the Controller and Accountant-General for the

payment of the Authority’s staff salaries. They however, instituted a

different and unapproved salary structure with accompanying

allowances and paid the salary and other allowances of the former

ES, Hon. Gifty Klenam from the Authority’s 10% EXIM levy funds

which resulted in an overpayment of GH¢332,982.88 to her between

April 2017 and May 2018. Details of payment shown in table 326

Table 326: Over payment of salary to Hon. Gifty Klenam

Month Net Salary Per GEPA

GH¢

Net Salary per FWSC

GH¢

Overpaid Salary GH¢

April, 2017 32,878.12 6,885.88 25,992.24

May, 2017 32,878.12 6,885.88 25,992.24

June, 2017 29,536.87 6,885.88 22,650.99

July, 2017 29,536.87 6,885.88 22,650.99

August, 2017 29,536.87 6,885.88 22,650.99

September,

2017 29,536.87 6,885.88 22,650.99

November, 2017 29,536.87 6,885.88 22,650.99

November, 2017 29,536.87 6,885.88 22,650.99

December, 2018 29,536.87 6,885.88 22,650.99

January, 2018 29,587.87 7,452.12 22,135.75

February, 2018 33,091.05 7,452.12 25,638.93

March, 2018 32,341.05 7,452.12 24,888.93

April, 2018 32,341.05 7,452.12 24,888.93

May, 2018 32,341.05 7,452.12 24,888.93

432,216.40 99,233.52 332,982.88



3060. The former ES attributed this lapse to the fact that, at the

time she was appointed, there was no Governing Council and had to

rely on the advice of the Minister of Trade and Industry, which had

not been evidenced by any documentary proof.

3061. As a result, the much-needed funds meant for the core

activities of the Authority have been lost.

3062. We recommended that Hon. Gifty Klenam should refund the

overpaid salary of GH¢332,982.88 to the accounts of GEPA for our

verification

3063. In response, the former ES, stated that she took the salary

based on the advice of the Minister of Trade and Industry since there

was no Governing Council in place and that her appointment letter

issued from the office of the President was silent on remuneration.

As a result, the Governing Council after being inaugurated

subsequently ratified the salary already negotiated with the Minister

of Trade and Industry.

Auditors’ comment

3064. We however disagree with the explanation since there was an

existing approved salary structure for the GEPA which includes the

salary level for the ES position at the time she was appointed. Also,

the Governing Council and the Ministry were not the final approving

authorities on the determination of the ES’s salary and other

conditions of service.

Over payment of salary to Mr. Eric Amoako Twum-

GH¢326,445.43




Public Services.




Council of the Authority disregarded and ignored the FWSC

approved SSSS salary structure for all staff of the GEPA and the

existing arrangement with the Controller and Accountant-General

for the payment of the Authority’s staff salaries. They however,

instituted a different and unapproved salary structure with

accompanying allowances and paid the salary and other allowances

of Mr. Eric Amoako Twum, a Deputy ES from the Authority’s 10%

EXIM levy funds which resulted in an overpayment of

GH¢326,445.43 to him between April 2017 and May 2018. Details

of payment shown in table 327.

Table 327: Over payment of salary to Mr. Eric Amoako Twum

Month Net Salary Per

GEPA

GH¢

Net Salary per

FWSC

GH¢

Overpaid Salary

GH¢

April, 2017 32,045.62 6,429.68 25,615.94

May, 2017 32,045.62 6,429.68 25,615.94

June, 2017 28,879.87 6,429.68 22,450.19

July, 2017 28,879.87 6,429.68 22,450.19

August, 2017 28,879.87 6,429.68 22,450.19

September, 2017 28,879.87 6,429.68 22,450.19

November, 2017 28,879.87 6,429.68 22,450.19

November, 2017 28,879.87 6,429.68 22,450.19

December, 2018 28,879.87 6,429.68 22,450.19

January, 2018 26,646.63 6,887.33 19,759.30

February, 2018 31,856.81 6,887.33 24,969.48

March, 2018 31,331.81 6,887.33 24,444.48

April, 2018 31,331.81 6,887.33 24,444.48

May, 2018 31,331.81 6,887.33 24,444.48

418,749.20 92,303.77 326,445.43


time she was appointed, there was no Board and had to rely on the

advice of the Minister of Trade and Industry, which had not been

evidenced by any documentary proof.



3068. As a result, the much needed funds meant for the core


3069. We recommended that Mr. Eric Amoako Twum should refund

the overpaid salary of GH¢326,445.43.

3070. In response, Mr. Eric Amoako Twum stated that he was only

a Deputy ES and therefore did not determine his salary. He further

emphasised that in comparison with other agencies under the

Ministry of Trade, his salary was average.

Over payment of salary to Mr. Akilu Sayibu-GH¢175,985.73


(Act482 is to advise Government on the principles and procedures


Public Services.


Council of the Authority disregarded and ignored the FWSC

approved SSSS salary structure for all staff of the GEPA and the

existing arrangement with the Controller and Accountant-General

for the payment of the Authority’s staff salaries.

3073. They however, instituted a different and unapproved salary

structure with accompanying allowances and paid the salary and

other allowances of Mr. Akilu Sayibu, a Deputy ES from the

Authority’s 10% EXIM levy funds which resulted in an overpayment

of GH¢175,985.73 to him from May 2017 to May 2018. Details of

payment is shown in table 328.



Table 328: Over payment of salary to Mr. Akilu Sayibu

Month Net Salary Per

GEPA GH¢

Net Salary per

FWSC GH¢

Overpaid

Salary GH¢

May, 2017 16,501.82 6,429.68 10,072.19

June, 2017 16,501.88 6,429.68 10,072.20

July, 2017 19,333.63 6,429.68 12,903.95

August, 2017 19,333.63 6,429.68 12,903.95

September, 2017 17,893.63 6,429.68 11,463.95

November, 2017 17,893.63 6,429.68 11,463.95

November, 2017 17,893.63 6,429.68 11,463.95

December, 2018 17,893.63 6,429.68 11,463.95

January, 2018 19,558.03 6,887.33 12,670.70

February, 2018 26,730.99 6,887.33 19,843.66

March, 2018 26,546.19 6,887.33 19,658.86

April, 2018 26,566.39 6,887.33 19,679.06

May, 2018 19,212.69 6,887.33 12,325.36

261,859.82 85,874.09 175,985.73


time she was appointed, there was no Board and had to rely on the

advice of the Minister of Trade and Industry, which had not been

evidenced by any documentary proof.



3076. We recommended a refund of the overpaid salary of

GH¢175,985.73 to Mr. Akilu Sayibu.

3077. In response, Mr. Akilu Sayibu stated among other things that

he never paid himself the salary and that the laws and regulations

quoted above by the audit team were not applicable to the payment

of his emoluments since he was not being paid by the CAGD. He

further stated that he was not overpaid any salary since other deputy

ESs in other similar organisations were paid salaries equivalent or

even higher than what he was paid.



Overpayment of salary – GH¢50,360.08




Public Services.

3079. We noted that Management of GEPA ignored the approved

Single Spine Salary Structure of Fair Wages Salary Commissionn for

all staff of the GEPA and the existing arrangement with the

Controller and Accountant-General for the payment of the

Authority’s staff salaries. The Authority paid the salary and other

allowances from its Internally Generated Funds amounting to

GH¢71,586.86 which resulted in an overpayment of GH¢50,360.08

to Ms. Afua Asabea Asare, ES, Mr. Albert Kassim Diwura (DES) and

Mr. Samuel Dentu (DES) for the month of June 2018. Details are


Table 329: Overpayment of salary -

NAME

SALARY

LEVEL MONTH

Net

Salary Per

GEPA

(GH¢)

Net

Salary per

FWSC

(GH¢)

Overpaid

Salary

(GH¢)

Ms. Afua Asabea

Asare

24L Jun-18 26,446.68 7,452.12 18,994.56

Mr. Albert Kassim

Diwura

23H Jun-18 22,570.09 6,887.33 15,682.76

Mr. Samuel Dentu 23H Jun-18 22,570.09 6,887.33

15,682.76

TOTAL

71,586.86

21,226.78

50,360.08

3080. The anomaly was caused by Management’s inability to

regularise the appointment of thethese officials by obtaining a formal

appointment letter detailing their conditions of service from the

Public Services Commission after they were appointed by the

President.




activities of the Authority have been lost through the payment of

uapproved salary.

3082. We requested these officers to refund the overpaid salary of

GH¢50,360.08 to GEPA accounts for verification.

3083. We again urged Management to ensure that future payments

of salaries and other entitlement are made within legally approved

and mandated constitutional body.

3084. Management stated that the salary was paid based on the

instructions of the Governing Council waiting for ratification from

the Ministry of Finance and Public Services Commission.

Auditors’ comment

3085. However, we disagree with the above assertion and wish to

state that the Ministry of Finance does not determine the salaries of

ESs and Deputy ESs of the Authority rather, Public Service

Commission is the authorised institution that is mandated to issue

formal appointment letters after the ES and the deputies have been

interviewed. Thereafter, Salaries scales are therefore determined by

the Fair Wages and Salaries Commission. Therefore, we still

maintain our earlier recommendation for the refund of the overpaid

salary.

Over payment of salary to Mrs. Bernice Armah Ampofo-

GH¢186,485.26






Public Services.

3087. We noted that the former ES, Hon. Gifty Klenam on 1 May

2017, engaged the services of Mrs. Bernice Armah Ampofo as the

Director of Finance, on a two year contract effective 2 May 2017

without financial clearance in accordance with Section 25 (5) of the

Public Financial Management Act, 2016 (Act 914). The former ES

further ignored the existing approved salary structure and

conditions of service applicable to a Director and unilaterally

determined and approved her starting monthly salary of

GH¢12,000.00 with other benefits which resulted in an overpayment

of GH¢186,485.26 for the period May 2017 to May 2018. Details of

payments are shown in table 330.

Table 330: Over payment of salary to Mrs. Bernice Armah Ampofo


GH¢

Net Salary per FWSC

GH¢

Overpaid Salary GH¢

May, 2017 19,711.87 5,700.41 14,011.46

June, 2017 19,475.62 5,700.41 13,775.21

July, 2017 19,475.62 5,700.41 13,775.21

August, 2017 19,475.62 5,700.41 13,775.21

September, 2017 19,475.62 5,700.41 13,775.21

November, 2017 19,475.62 5,700.41 13,775.21

November, 2017 19,475.62 5,700.41 13,775.21

December, 2018 19,475.62 5,700.41 13,775.21

January, 2018 19,516.42 6,172.93 13,343.49

February, 2018 22,130.14 6,172.93 15,957.21

March, 2018 21,755.14 6,172.93 15,582.21



April, 2018 21,755.14 6,172.93 15,582.21

May, 2018 21,755.14 6,172.93 15,582.21

262,953.19 76,467.93 186,485.26

3088. The anomaly occurred because the former ES did not consult

the Public Services Commission and Fair Wages and Salaries

Commission in determining the salary and other conditions of

service for the Director of Finance.



3090. We recommended an immediate refund of the overpaid salary

of GH¢186,485.26 from Bernice Armah Ampofo.

3091. We further urged Management to either regularise the

appointment of the officer for her salary to be paid from the CAGD

or terminate her appointment on its expiration.

3092. Management stated that it is unable to renegotiate or

terminate the contract of the affected staff due to the nature and

terms of the contract, hence the Governing Council have directed

that the contract be allowed to expire before further action is taken.

Over payment of salary to Ms. Akua Botwe-GH¢105,825.26




Public Services.

3094. We noted that the former ES, Hon. Gifty Klenam on 1 May

2017, engaged the services of a Ms. Akua Botwe as the Director of

Human Resource and Administration, on a two-year contract



effective 2 May 2017 without financial clearance in accordance with

Section 25 (5) of the Public Financial Management Act, 2016 (Act

914).

3095. The former ES further ignored the existing approved salary

structure and conditions of service applicable to a Director and

unilaterally determined and approved her starting monthly salary of

GH¢8,000.00 with other benefits which resulted in an overpayment

of GH¢105,825.26 for the period May 2017 to May 2018. Details of

payment shown in table 331.

Table 331: Over payment of salary to Ms. Akua Botwe


GH¢

Net Salary Per FWSC

GH¢

Overpaid Salary

GH¢

May, 2017 12,236.87 5,700.41 6,536.46

June, 2017 13,495.62 5,700.41 7,795.21

July, 2017 13,495.62 5,700.41 7,795.21

August, 2017 13,495.62 5,700.41 7,795.21

September, 2017 13,495.62 5,700.41 7,795.21

November, 2017 13,495.62 5,700.41 7,795.21

November, 2017 13,495.62 5,700.41 7,795.21

December, 2018 13,495.62 5,700.41 7,795.21

January, 2018 13,536.42 6,172.93 7,363.49

February, 2018 15,175.14 6,172.93 9,002.21

March, 2018 15,625.14 6,172.93 9,452.21

April, 2018 15,625.14 6,172.93 9,452.21

May, 2018 15,625.14 6,172.93 9,452.21

182,293.19 76,467.93 105,825.26

3096. The anomaly occurred because the former ES did not consult

the Public Services Commission and Fair Wages and Salaries

Commission in determining the salary and other conditions of

service for the officer.





3098. We recommended an immediate refund of the overpaid salary

of GH¢105,825.26 to Ms. Akua Botwe.

3099. We further urged Management to either regularise the

appointment of the officer for her salary to be paid from the CAGD

or terminate her appointment on its expiration.

3100. Management stated that it is unable to renegotiate or

terminate the contract of the affected staff due to the nature and

terms of the contract, hence the Governing Council have directed

that the contract be allowed to expire before further action is taken.

Overpayment of rent advance to Mr. Eric Amoako Twum-

GH¢239,778.88

3101. Regulation 45 of the FAR, 2004 (L.I 1802) states that if any

expenditure is made in excess of the amounts actually due, the

overpayment 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 the head of

department or the appropriate authority.

3102. According to the Public Service Commission’s formal

appointment letters reference no. AC22/757/01 dated 26 August

2014 and 30 August 2016 issued to Mr. Gideon Quarcoo and Mr.

James Zuugah Tiigah respectively, former ESs, paragraph 5 (a)

states “you will be entitled to a fully furnished accommodation.

However, if an such accommodation is not provided, you will be

entitled to a Rent Allowance of 20% of your basic salary.

3103. We noted however that the former ES, Hon. Gifty Klenam on

27 May 2017, approved a monthly rent allowance of USD$2,500.00

and, subsequently paid a total amount of USD$60,000.00

(GH¢270,000.00) to Mr. Eric Amoako Twum, a former Deputy ES,



representing a two year rent allowance advance for the period July

2017 to June 2019. However, Mr. Twum left office in June 2018 after

his appointment was terminated by H.E. President Nana Akuffo

Addo on 7 June 2018.

3104. We further noted per available records that the salary scale

attached to the post was the SSSS, approved by the Fair Wages and

Salaries Commission as at 2017 which put the ES at Level 24H with

salary ranging from GH¢43,105.60 to GH¢45,341.57 per annum.

3105. This anomaly was occasioned by the former ES’s inability to

go through the formal process of informing the governing council to

write officially to the Public Services Commission which is

constitutionally mandated body to issue a formal letter to the former

Deputy ES, stating the Conditions of Service attached to the post as

well as her decision to pay the rent allowance in advance to the

officer.

3106. As a result, the Authority had been denied the much needed

resources to carry out its core activities.

3107. We recommended that Mr. Eric Amoako Twum should refund

the balance of the rent advance of GH¢239,778.88 paid to him as

detailed in table 332.



Table 332: Overpayment of rent advance to Mr. Eric Amoako Twum

Two years’ Rent Advance Paid

To the Officer

(A)

20% Entitled yearly Accommodation Allowance GH¢

(B)= 43,105.60*20%

8% withheld Tax on Rent Advance paid

GH¢

(C)

Total to be deducted GH¢

(D)=

(B + C)

Difference to be refunded

GH¢

(E)=(A – D)

$60,000.00 = GH¢270,000.00

8,621.12 21,600.00 30, 221.12 239,778.88

3108. In response, Mr. Eric Twum stated that the payment of the

rent was not determined by him but was calculated as a percentage

of his salary. He further indicated that the Board has proceeded to

make some pronouncements on the matter which he disagrees with

in principle.

Overpayment of rent allowance advance to Mr. Akilu Sayibu- GH¢48,997.76

3109. Further, regulation 45 state that if any expenditure is made

in excess of the amounts actually due, the overpayment 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 the head of department or the

appropriate authority.

3110. According to the Public Service Commission’s formal

appointment letters reference no. AC22/757/01 dated 26 August

2014 and 30 August 2016 issued to Mr. Gideon Quarcoo and Mr.

James Zuugah Tiigah respectively, former ESs, paragraph 5 (a)

states “you will be entitled to a fully furnished accommodation.

However, if such an accommodation is not provided, you will be

entitled to a Rent Allowance of 20% of your basic salary.

3111. We noted however that the former ES, Hon. Gifty Klenam on

18 July 2017, approved and paid a total amount of GH¢72,000.00



to Mr. Akilu Sayibu, former Deputy ES in respect of a two-year rent

allowance advance the period July 2017 to June 2019. However, Mr.

Akilu left office in June 2018 after his appointment was terminated

by H.E. President Nana Akuffo Addo on 7 June 2018.

3112. We further noted per available records that the salary scale

attached to the post was the SSSS, approved by the Fair Wages and

Salaries Commission as at 2017 which put the ES at Level 24H with

salary ranging from GH¢43,105.60 to GH¢45,341.57 per annum.

3113. This anomaly was occasioned by the former ES’s inability to

go through the formal process of informing the governing council to

write officially to the Public Services Commission which is

constitutionally mandated body to issue a formal letter to the former

Deputy ES, stating the Conditions of Service attached to the post as

well as her decision to pay the rent allowance in advance to the

officer.

3114. As a result, the Authority had been denied the much needed

resources to carry out its core activities.

3115. We recommended that Mr. Akilu Sayibu refund the remaining

balance of the rent advance of GH¢48,997.76 paid to him for

verification as detailed in table 333.



Table 333: Overpayment of rent allowance advance to Mr. Akilu

Sayibu Two years’ Rent

Advance Paid

To the Officer

GH¢

(A)

20% Entitled yearly Accommodation Allowance GH¢

(B)= 43,105.60*20%

8% withheld Tax on Rent Advance paid

GH¢

(C)

Total to be deducted GH¢

(D)=

(B + C)

Difference to be refunded

GH¢

(E)=(A – D)

72,000.00 8,621.12 21,600.00 30, 221.12 48,997.76

3116. Management responded that the observation has been

forwarded to the former Deputy ES for his response.

3117. In response, Mr. Akilu Sayibu stated among other things that

he did not pay the rent to himself but was paid by his former boss.

He further indicated that he has formally written to the current ES

of the Authority requesting her to use his terminal benefits to pay off

the outstanding rent.

Unsubstantiated Payments - GH¢164,891.23 and

USD$30,241.00

3118. Regulation 39 (2) (c) of the FAR, 2004, (L.I 1802) stipulates

that “the head of account section of a department shall control the

disbursement of funds and ensure that transactions are properly

authenticated to show that amount are due and payable”.

3119. Contrarily, we noted that the Authority made payments for

goods, services and foreign travels amounting to GH¢164,891.23

and USD$30,241.00 between July 2014 and July 2018 which were

without the relevant supporting expenditure documents such as

receipts, invoices, claim sheets, boarding pass, reports, etc. Details

are shown in table 334a & 334b.



Table 334a: Unsubstantiated Payments

Date PV No. Payee Details Amount GH¢

Remarks

ACCOUNT: Prodential Bank A/C

21/7/2014 PV006 Mr Akpor Ago-

Ablo

Being payment for DSA, Hotel accommodation and

other logistics as per attached 1,272.00

No receipts &

details of expenditure

27/10/2014 PV 23 Eusbett Hotel Ltd

Being payment of conference package for Awareness raising workshop 11,932.95

No receipt & itinary and beneficiaries

9/9/2014 PV030 Sanaa Lodge

Being payment of conference package for the upcoming Awareness raising workshop 10,580.00

No receipt & itinary and beneficiaries, attendance sheet

16/9/2014 PV056 Capital View Hotel K,dua

Beign payment of the preparation to organise the upcoming awareness Raising Workshop at 12,799.15

No receipt & itinary and beneficiaries, attendance sheet

10/12/2014 PV031 Extee Crystal

Hotel

Payment of accommodation iro sensitization workshop

in bolga and bongo from 16th to 17 December 3,375.00

No payees' official

receipts provided.

01/09/14 PV032 De-Roy's Quisine

Beign payment for catering services rendered during Export School Training Programme as per attached

2,328.75

No attendance sheet and list of participants



31/7/2015 PV046 CMG HR Solutions

payment of 30% on submission of inception report

10,843.03

No inception report sighted

6/11/2017 PV001 GEPA Credit Union

Payment of refund of loan to the GEPA credit Union 10,000.00

No receipts of utility bills

ACCOUNT: Bank of Ghana

22/6/16 PV011 Paul Zubeiru & 44 others

Refreshment for staff for

attending funeral of father of Maxwell Osei-Kusi of GEPA 1,380.00

Beneficiaries did

not sign to acknowledge receipt of claims

22/11/16 PV01 Stephen Normashie

Honorarium for working on Annual Budget on Saturday

650.00

Claimant did not sign to acknoledge receipt of claim

ACCOUNT: Zenith Bank

3/11/16 PV01 Director of finance

Cost of purchasing Prepaid Units for Zonal Offices

11,500.00

No evidence of prepaid units purchased. The funds were only lodged into the personal accounts of Zonal officers.

ACCOUNT: NIB

25/10/16 PV019 Nastagor Ventures

Repair & servicing of GE-2864 X for Bolga 1,738.00

Provide payee's official receipt

9/11/16 PV009 Catherine Gordor

Honorarium for persons iro export marketing programme

1,500.00

Yaw Opoku, Lemmy

Kwawu and Laud Kojo Mintah did not sign to acknoledge receipt of the claims.



ACCOUNT: Prodential Bank - Project A/C

04/11/2016 PV026 Finance and Adm

Allowance for tender committee meeting 2,790.00

No evaluation report

01/11/2016 PV 007 Finance and Administration

Honorarium for media 1,700.00

The amount of GHC 1,700 not signed for claimants.

26/10/16 PV029 Savoy Confectioneries

Supply of buffet dinner 30,900.00

No Tender evaluation report sighted

11/08/2016 PV031 OAK Plaza Management retreat 21,375.00

No signed list and activity report from the retreat sighted.

14/9/2016 PV017 Finance and Administration

Allowance for tender committee meeting 1,620.00

No activity report

16/3/2016 PV008 Madarfss Company

Supply of electronic tablets 6,785.63

No evidence of delivery sighted

14/3/2016 PV007 Theresa Anakwa

Training in fruits and vegetables

19,821.72

No activity report and signed attendance sheet

Total

164,891.23



Table 334b: Unsubstantiated Payments - USD$30,241.00

Date Ref. No Payee Details

Amount USD$

Remarks

ACCOUNT: 1ST ATLANTIC BANK USD ACCOUNT

8/7/2017 FT/005 Professor

Robert Hinson

Rebranding of GEPA -

Evaluation of Advertising Agencies - 15th August 2017

600.00 No acknowledgement of

receipt by the payee and evaluation report.

29/9/2017 FT/016 Eric Twum To participate in the Food Fair in Cologne, Germany from 6th to 12th October 2017

2,671.00 No evidence of actual trip undertaken by Mr. Eric Twum who took $2,671.00 for the trip.

5/10/2017 FT/018 Eric Twum Amoako

To participate in the Investment Promotion Mission to Canada from 12th-21st October 2017

2,950.00 No details/evidence of trip undertaken. The invitation letter also requested for one participant and not two.

4/12/2017 PV001 Eric Amoako Twum and Four others

To travel to Italy on the invitation by AB Plastics Production Ltd.

9,532.00 No evidence of actual trip undertaken by the participants. Four

Participants did not sign to acknowledge receipt of GH¢6,000.00 paid.

26/1/2018 PV009/291 Eric Amoako Twum

DSA iro trade mission to Iran to meet with prospective investors in the handicrafts sector in

4,064.00 No evidence of trip and meetings undertaken and held by the officer.



Ghana from 28th-3rd January 2018

1/3/2018 PV003/297 Sarkodie Osei (on behalf of

four companies)

Support for the FOODEX 2018

Exhibition in Japan for four participating companies

8,400.00 No acknowledgement of receipt of the support

by the other three participating companies

13/7/2018 PV001/307 Mr. Samuel Dentu and Mr. Banda Abdallah

Logistics to travel to Latvia with Minister of Foreign Affairs from 17th-21th July 2018

2,024.00 No evidence of trip undertaken by the officers. Also, the Invitation letter from the MFA&RI requested for only one senior officer from the Authority, but two senior officers were paid for to undertake the trip. The amount of $2,024.00 as DSA paid to the additional officer

was not justified.

Total 30,241.00



3120. We attributed this anomaly to the Authority’s

authorising/approving Officers’ inability to ensure that the relevant

documents were attached to the payment vouchers before approving

them.

3121. As a result, we could therefore not ascertain whether the

monies were used for their intended purposes. This practice could

also lead to fictitious payments and loss of funds.

3122. We recommended that in the absence of the necessary

documents to substantiate the payments, the authorising officers

who made the payments, should be held liable to refund the total

amounts of GH¢164,891.23 and USD$30,241.00.

3123. According to Management the accounts department has been

tasked to provide all the supporting documents to substantiate the

payments. However, the documents covering the said amounts were

yet to be provided for verification.

EXPORT TRADE, AGRICULTURE AND INDUSTRIAL

DEVELOPMENT (EDAIF)

Introduction

3124. This report covers the audited accounts of the Export Trade,

Agricultural and Industrial Development Fund for the period ended

31 December 2015 and 31 March 2016.

Operational results

3125. The Fund recorded a surplus of GH¢2,546,193 in 2016 as

against a figure of GH¢ GH¢136,405,058 registered in 2015

constituting 98.13% decrease. The operations for the period under

review is provided in table 335.



Table 335: Statement of Comprehensive Income for the period

ended 31 March 2016

Income 2016 GH¢

2015 GH¢

% Change

Revenue from non-exchange transactions

34,925,592

145,747,036

(76.04)

Revenue from exchange transactions

18,844,915 67,986,682 (72.28)

Total Income 53,770,507 213,733,718 (74.84)

Expenditure

Operating expenses 39,117,006 33,193,681 17.84

Grant expenses 11,989,756 43,872,866 (72.67)

Finance cost 117,552 262,113 (55.15)


(Loss)/Profit for the year 2,546,193 136,405,058 (98.13)

3126. The Fund recorded a total revenue of GH¢53,770,507 in the

period ended 31 March 2016. Total revenue was made up of revenue

from non-exchange transactions and revenue from exchange

transactions. Total revenue constituted 65% and 35% of revenue

from non-exchange transactions and exchange transactions

respectively.

3127. Total expenditure of GH¢51,224,314 is largely represented by

operating expenses and grant expenses which constitute 76.4% and

% 23.4% of total expenditure respectively.

Financial position

3128. The Financial position of the Organisation as at 31 December

2016 is shown in table 336.



Table 336: Financial Position as at 31 March 2016

2016 GH¢

2015 GH¢

% Change

Current Assets 670,159,668 667,578,763 0.4

Current Liabilities 3,185,767

3,151,055 1.1

Current Ratio 210.4 :1 211.9:1

3129. Current Assets rose by 0.4% to GH¢670,159,668 in 2016

from GH¢667,578,763 in 2015. This comprise cash and cash

equivalent, investments, loans to Desgninated Financial Institutions

(DFI), receivables, interest free loans, property and equipment,

intangible assets (computer software) and other assets. The increase

was due to GH¢152,760,766 increase in investment held to

maturity.


amount of GH¢3,151,055 to GH¢3,185,767 in 2016. Current

liabilities comprise accrued audit fees, other accrued expenses,

sundry payables and provisions.

3131. The liquidity position measured in current ratio reduced from

211.9:1 in 2015 to 210.4:1 in 2016, despite the reduction, the

company can meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

Reconciliation are not performed with Designated Financial

Institution (DFIs)

3132. Section 3.12 of EDAIF’s Guidelines for the Export

Development and Promotion and Export Credit and Project Facilities

requires the DFI to submit reports to EDAIF in respect of funds

disbursed to each beneficiary, loan repayment, interest accrued on



disbursement amounts and balances on the undisbursed funds

allocated. This is to help EDAIF to monitor the DFI’s and reconcile

loan balances periodically.

3133. The entity disbursed facilities to beneficiaries through DFIs.

However, the entity did not perform regular reconciliations with the

DFIs in respect of loans disbursed hence variances were noted

between the loan balances in the entity’s books and balances

confirmed by the DFIs for the period ended 31 March 2016.

3134. The financial statements may be misstated if regular

reconciliations are not performed. Also, the identification and

reconciliation of variances which are only performed during the

audit prolongs the audit period.

3135. We recommended that Management should perform monthly

reconciliations with the DFIs. All variances noted should be

investigated and resolved within a reasonable timeframe.

3136. Management responded that they have put in place measures

whereby the risk and monitoring team will reconcile loan facility

balances with DFIs at least on half yearly basis going forward.

Long outstanding loan balances-GH¢17,602,831

3137. Section 17(4) of the Export Trade, Agriculture and Industrial

Development Fund Act 2013 (Act 872) states that the designated

financial institution granted a credit facility shall bear the full credit

risk.

3138. Loan agreements between EDAIF and DFIs include a clause

indicating that the DFIs bear full credit risk.



3139. There were significant balances amounting to

GH¢17,602,831 which are long overdue but have not been paid as

at 31 March 2016.

3140. EDAIF may be unable to collect these facilities after a long

period resulting in significant impairment losses or financial loss to

the state.

3141. We recommended that Management should follow up with the

DFIs to ensure that all outstanding loans which are long overdue are

repaid. Where beneficiaries are unable to repay the loans, the

amount should be retrieved from the DFIs in accordance with the

Act and signed agreement with the DFIs.

3142. Management responded that the Fund has held discussions

with the BoG and DFIs on the feasibility of directly debiting DFIs to

recover outstanding facilities.

No evidence of monitoring and evaluation (M&E) report prior to

subsequent grant disbursements

3143. As part of the grant approval process, grantees are to submit

a monitoring and evaluation (M & E) report on previous

disbursement to EDAIF before subsequent disbursement are made.

3144. From our review of grant expenses, there were no M&E

reports to the subsequent 4 disbursement of grants totalling

GH¢17,862,515. Details to the grantees are in table 337.



Table 337: No evidence of monitoring and evaluation (M&E)

Grantee Transaction date per

detailed

listing

Amount approved

by board

Initial disbursement

Current disbursement

Munisco

Limited,

27-July-16 19,822,026 2,660,214 13,454,043

Sea Freight

Pineapple Exporters of

Ghana (SPEG),

9-May-2016

14,962,000

11,816,243

1,360,370

Adventist

Development

and Relief

Agency (ADRA).

17-May-16

4,202,910

216,048

2,898,856

Adventist Development

and Relief

Agency (ADRA).

1-Aug-16

4,202,910

3,114,904

149,246

Total 43,189,846 17,807,409 17,862,515

3145. The grant may be used for purposes other than the original

intended purpose.

3146. We advised Management to ensure that M&E reports are

obtained and reviewed prior to disbursement of subsequent

amounts.

3147. Management accepted our recommendation for

implementation



GHANA EXPORT AND IMPORT BANK (EXIMBANK)

Introduction 3148. This report covers the audited accounts Ghana Export and

Import Bank for the financial years ended 31 December 2016 and

2017.

Operational Results 3149. The bank recorded a surplus of GH¢5,073,762.00 in 2017 as

compared with a deficit of GH¢79,205,949.00 for the previous year.

The increase of GH¢84,279,711.00 represented

106.41% over the prior year’s deficit. Details are shown in table 338.


Income 2017 GH¢

2016 GH¢

% Change

Interest Income 59,404,178.00 53,284,639.00 11.5

Fees Income 40,122.00 0.00 100

Other Income 205,868.00 0.00 100

Total Income 59,650,168.00 53,284,639.00 11.94

Expenses

Net Impairment of financial assets

14,505,503.00 56,394,526.00 (74.28)

Personnel Expenses 24,276,031.00 13,980,530.00 73.64

Capacity Building 9,237,372.00 54,458,337.00 (83.04)

Other Operating exp 5,835,535.00 6,525,887.00 (10.58)

Amortisation and Depreciation

721,965.00

1,131,308.00 (36.18)

Total Expenses 54,576,406.00 132,490,588.00 (58.81)

Income Surplus/ (Deficit)

5,073,762.00 (79,205,949.00) 106.41

3150. Total Income for the year 2017 went up by GH¢6,365,529.00

from GH¢53,284,639.00 in 2016 to GH¢59,650,168.00 in 2017

representing 11.95%. This increase was mainly due to a rise in

interest income and other income.



3151. Total expenses reduced from GH¢132,490,588.00 in 2016 to

GH¢54,576,406.00 in the period under review representing 58.81%.

The reduction was as a result of a decrease in net impairment in the

financial assets and capacity building.

Financial Position 3152. The bank financial position as at 31st December 2017 is

shown in table 339.

Table 339: Statement for financial position as at 31 December

2017 Items 2017

GH¢ 2016 GH¢

% Change

Non- Current Assets

230,704,583.00 181,100,644.00 27.39

Current Assets 681,228,853.00 513,895,258.00 32.56

Liabilities 269,091,724.00 57,227,950.00 370.0

Net Current Assets 412,137,129.00 456,667,308.00 (9.75)

Net Assets 642,841,712.00 637,767,952.00 0.80

Liquidity Ratio 2.5:1 9:1

3153. Non- Current Assets rose by GH¢49,603,939.00 representing

27.39% in 2017 due to acquisition of share in Oasis Capital Limited,

equipment and construction of the bank’s building.

3154. Current Assets went up by GH¢167,333,595.00 from

GH¢513,895,258.00 in 2016 to GH¢681,228,853.00 in 2017

representing 32.56%. The increase was due to a rise in cash& cash

equivalent, investment securities and loans and advances.

3155. Current liabilities increased from GH¢57,227,950 in 2016 to

GH¢269,091,724.00 representing 370%. The increase was due to a

rise in Government funding and other liabilities.



3156. The liquidity position as measured by current ratio has

reduced from 9:1 in 2016 to 2.5:1 in2017 financial year. The bank

still has the ability to settle its short-term debts as and when they

fall due.

MANAGEMENT ISSUES

Reconciliation are not performed with Designated Financial

Institution

3157. In accordance with section 17(2) of the Export Trade,

Agricultural and Industrial Development Fund Act, 2013, the funds

assigned to credit facility shall be disbursed in the proportion and to

the designated financial institutions (DFIs) determined by the Board.

3158. The entity disburses facilities to beneficiaries through DFIs.

However, the entity did not regularly prepare such statements of

accounts and reconciliation with the DFIs in respect of loans

disbursed.

3159. The Bank may be unable to determine the amount settled and

pursue the recovery of the outstanding debt.

3160. We recommended that Management should perform monthly

reconciliations with DFIs. Also, long outstanding items should be

investigated.

Management responded that they have noted our recommendation

for action going forward.



Difference between the Credit Department’s and Finance

Department’s records on loan balances

3161. The Bank acquired and installed a Credit Management

System (CMS) to manage its credit facilities. The system is expected

to provide up-to-date information on loan balances for each loan

beneficiary. The CMS is managed by the credit department while

financial management of the Bank’s operations is by the finance

department. Since the CMS is not integrated with the accounting

system (SunSystem), best financial practice requires that there

should be periodic reconciliations between the loan balance in the

CMS and accounting system and all differences investigated and

resolved accordingly.

3162. The credit department maintains credit records in the CMS,

and the finance department maintains records in Microsoft Excel.

The credit department receives data on repayment either from the

finance department or from the DFIs through loan statements

delivered upon request. However, differences between the loan

balances obtained from the finance department and credit

department are not reconciled regularly.

3163. Inconsistencies in record keeping could adversely impact on

Bank’s ability to recover all debts.

3164. We recommended that the department of finance and credit

should perform regular reconciliations on credit balances.

3165. Management accepted our recommendation for action.

No specific number of shares allocated for the minimum capital

3166. In accordance with section 27(1 and 2) of the Ghana Export-

Import Bank Act, 2016 (Act 911), the authorised shares of the Bank

are 100,000,000 of no-par value. The initial capital of the Banks



shall be at least GH¢50,000,000 and shall be sourced from the funds

specified under section 24(1) (a).

3167. As at 31 December 2016, the Bank was yet to issue shares

for the GH¢50,000,000 consideration received for the stated capital.

3168. The non-allocation of shares may result in disputes if shares

are not allocated and properly documented.

3169. We advised that the Bank should decide on the number of

shares to issue in respect of the minimum capital of GH¢50,000,000

and update the share register accordingly.

3170. Management accepted our recommendation for action.

Non-Existent IT Policy for Exim Bank

3171. IT Policies and Guidelines govern the management and the

use of Organisations IT resources throughout Organisations. It also

provides direction and guidance on the principles to be applied in

the maintenance of data integrity, confidentiality and storage of IT

resources and information. This Instruction applies to all staff

members as well as individuals and entities that are authorised to

access and/or use IT resources in the performance of their duties.

3172. Our consideration of the operations and activities of the Exim

Bank Ghana discosled that the enterprise risk management

framework and operational risk management framework considers

the significance of Technology Risk in its operations. However, the

bank is yet to have an IT Policy to help regulate staff and others

approved to work for the Bank in relation to IT infrastructure as an

integral part of modern banking operation.

3173. The Management’s less consideration of IT Unit and its

function is the cause of the non-existence of IT Policy.



3174. This could lead to operational deficiency since there is no

defined IT policy to govern the Exim Bank’s operations.

3175. There is a need for Management to consider developing a

comprehensive IT policy to prevent any operational risk to

complement the risk management framework and operational risk

framework.

3176. Management said a draft ICT Security Policy and Manual

developed is being reviewed by the Board sub-committee for the

necessary approval. The approved document should be in place

before the end of the year 2018.

Review of Accounting Manual 3177. Organisation maintain rules, policies and procedures relevant

to their departments (e.g. accounting, budgeting, treasury,

procurement, travel, human resources, IT security, operational

manuals and guidance notes) which seeks to regulate business

processes and activities of employees to reflect the current

operations in line with its mission and vision.

3178. Our review of the Accounting Manual disclosed that Exim

Bank continues to use the old accounting manual from ex-wile

Export Trade, Agricultural and Industrial Development Fund

(EDAIF) which operated under the mandate of EDAIF Act 2013, Act

872.

3179. For instance, section 53 (1 b) of the Public Financial

Management Act, 2016 Act 921 mandates that, write off of public

funds should be routed through the Finance Minister to seek

approval from parliament. Sub-section (3) states that “The approval

under subsection (1) shall specify the amount authorised for each

abandonment or write off the total sum authorised”. On the other

hand, Paragraph 5.1.1.2 of the EDAIF accounting manual indicates



that provisions and write-off of doubtful and bad debt are adequately

provided for each year. However, per EDAIF's policy, write- off in

respect of credit for projects is only done with approval from the

Ministry of Finance through the Ministry of Trade and Industry.

3180. Our enquiry confirmed that Management has not come out

with a revised accounting manual in line with the current operation

of Exim Bank Ghana as a legal entity.

3181. This could lead to operational challenges in the use of the

manual in some key processes which is not in tune with the

requirements of Public Financial Management Act, 2016 Act 921.

3182. Management should as a matter of urgency prioritize the

revision of the accounting manual for the operations to fall in line

with the Public Financial Management (PFM) Act 2016 Act 921, to

forestall any confusion between EDAIF and PFM Act.

3183. Management agreed to the recommendation and indicated

that the Board is discussing issues to ensure the accounting

manual reflects the current status of the bank’s operations.

Revenue verification challenge

3184. Section 24(a) of Ghana Export -Import Bank Act 2016, Act

(911) requires that the Bank’s source of funds shall include an

amount equivalent to 90% of 0.75% levy on dutiable value of import

of non-petroleum products. Section 27 of the Act mandates that the

initial capital of the bank shall be sourced from the levies.

3185. Our review of the revenue records of the Exim Bank disclosed

that the bank relied on Bank Statements obtained from Bank of

Ghana (BOG) as evidence of its share of the levies. There is no other

source document from the major stakeholders of the revenue



collection agency of Custom Division of Ghana Revenue Authority

(GRA) and GCNet to vouch for the accuracy of the allocated fund

from BOG.

3186. The non-collaboration between the mandated revenue

collection agency and Exim bank is the main underpinning factor.

3187. In the event of any error as to understatement or

overstatement of levies captured in the BOG Statement it could not

be detected for correction. There is accountability and transparency

challenge with regards to full disclosure on the amount equivalent

to 90% of 0.75% levy on dutiable value of import of non-petroleum

products as a source of funding.

3188. Management of Exim Bank Ghana as a matter of urgency,

should work towards securing joint collaboration between the GRA

and GCNet towards obtaining corroborating evidence as far as the

levies are concerned for the purpose of accountability and

transparency.

3189. Management accepted our recommendation and explained

that they have held discussion with the Ministry of Finance who

regularly receive the data which forms the bases of the computation

of the levies. They have agreed to share the data with our bank

subject to obtaining the necessary approval.

Need for Effective Asset Management

3190. Section 52 (1) of the Public Financial Management Act 2016,

Act 921 requires that a Principal Spending Officer of a covered entity,







3191. We noted that the asset register of Exim Bank Ghana did not

capture some vital information on vehicles such as the year of make,

the vehicle numbers and the status of the asset. Additionally, the

asset register is not updated with the relevant embossments details

(code) for the procured asset. Our enquiry dislosed that asset

verification exercises have not been carried out for the year under

review.

3192. The situation is blamed on the limited number of staff in the

accounting department of the bank.

3193. We found it difficult to reconcile the recorded assets in the

asset register to the physical existence which could inhibit imely

asset replacement thus affecting effective execution of the Bank’s

operations.

3194. The possible loss and theft of asset would not be identified

early by the Management to enable the necessary preventive

measures to be put in place.

3195. We urged Management to conduct verification exercise to

enable high reliance to be placed on the records for informed

decision making and to meet asset replacement requirements.


Non-compliance with Conditions of Service - GH¢502,380.05 3197. Paragraph 4.1 of the Condition of Service for management

staff requires that staff upon serving the Bank for (18) months (one

and half years), and when the need arises, the Bank shall assist an



employee with a loan not exceeding two years basic salary to

purchase a car or a means of transport. The loan shall be at 2.5%

interest. Payment shall be in equal installments. The total deduction

of principal each month shall not exceed 35% of his basic salary.

3198. Our examination of accounting records and personnel records

showed that, six (6) newly employees had been granted staff car loan

amounting to GH¢502,380.05. We noted that these 6 employees had

not satisfied the requirement of the conditions of service before the

loans were granted in December 2017. The employees had their

appointment on November 1, 2017 and November 6, 2017 and had

not even served their probation period ending April 30, 2018 and

May 5, 2018 respectively. Details are showed in table 340.

Table 340: Non-compliance with Conditions of Service

Transactio

n Date

Trans

Reference

Transfer

Description

Cheque

No.

Payee Amount

GH¢

22/12/2017 FBL86/12/1 Payment of

Staff Car Loan

020436 John Bour 49,606.73

21/12/2017 FBL71/12/1 Payment of

Staff Car

Loan

020421 Solomon Nii

Amon Kotey

Dsana

91,928.29

21/12/2017 FBL72/12/1 Payment of

Staff Car

Loan

020422 Patrick

Nsiah-

Yeboah

75,234.59

22/12/2017 FBL85/12/1 Payment of Staff Car

Loan

020435 Isaac Amissah-

Aidoo

128,409.27

22/12/2017 FBL94/12/1 Payment of

Staff Car

Loan

020444 Raymond

Acromond

14,036.68

21/12/2017 FBL70/12/1 Payment of

Staff Car

Loan

020420 William

Obeng

143,164.49

Total 502,380.05



3199. Management’s override of controls in the bank is attributed to

the granting of the car loan to staff that were not due.

3200. The funds earmarked for other operational activities was used

as loans for the newly recruited staff thereby causing delays in

effective execution of intended task.

3201. We recommended that Management should stick to strict

compliance in respect of the conditions of service to avert any future

recurrence of similar transactions.

3202. Management explained that the Board approved employment

of some experienced staff from the banking industry and most of the

staff came with staff loan which they disclosed during their

interview. They also indicated that it is a practice within the banking

industry that new employer’s takeover the loans of their new staff

from their previous banks. Management is reviewing the bank staff

condition of service to reflect this industry practice.

Need for regulation/constitutional instrument for Exim bank

3203. Best practice requires that with the establishment of an Act of

parliament there is the need to develop a regulation or constitutional

instrument to support effective implementation of the Act.

3204. We noted that with the establishment of the Ghana Export-

Import Bank by an Act of parliament which was assented by the

President on 29th March, 2016, there was no constitutional

instrument or regulation to give effect to Ghana Export-Import Act,

2016 (Act 911).

3205. Delay on the part of Management led to the absence of the

regulation or constitutional instrument.



3206. The absence of regulation or constitutional instrument means

that there are no guidelines that dictate how the provisions of the

Act are applied and this creates room for Management discretion in

the implementation of the Act in order to fill the legislation gap.

3207. Management in consultation with the Board should work

towards securing the regulation or the constitutional instrument to

fill the current legislation gap.

3208. Management accepted our recommendation for

implementation

Assessment of Internal Audit Unit and its functions

3209. Section 22(1) of the Ghana export and import bank act, 2016

Act 911 stipulates that” the bank shall have an internal auditor’’ and

sub-section(2) further requires the internal auditor to be responsible

to the chief executive officer and the chairperson of the audit

committee in the performance of the functions as internal auditor”.

3210. Best practice requires that internal auditing should give an

independent, objective assurance and consulting activity designed

to add value and improve an organisation's operations. It helps an

organisation accomplish its objectives by bringing a systematic,

disciplined approach to evaluate and improve the effectiveness of

risk management, control and governance processes.

3211. Our review of the internal audit unit revealed that the unit

currently has three (3) permanent staff and one (1) support staff with

the head of internal audit who has been acting in that capacity since

28th February 2017 to the time of our audit on 12th August 2018.

3212. The scope of the internal audit function and the limited

number of staff at the unit hampered the coverage of work in



sensitive areas of the Bank’s operations such as loans and their

recoveries.

3213. The limited human resource at the Internal Audit (IA) Unit was

at variance with scope of the operations of Exim bank.

3214. This can lead to staff fatique and demotivation to existing staff

and possibility of not being able to cover other core areas of the bank.

3215. The Management team is encouraged to facilitate the

appointment of substantive head of the IA Unit and recruitment of

competent personnel to augment the staff strength at the IA unit

with adequate resources to make it more efficient in execution of its

function.

3216. Management has noted the staffing issues raised and would

work to address as soon as practical. With respect to the resourcing

of the department, Management is embarking on restructuring

exercise of the bank to make it more responsive to its mandate with

proportionate resource allocations.

Monitoring challenge on Equity Holding

3217. Section 3(i) of Ghana Export and Import Bank Act 2016, (Act

911) requires that the bank shall jointly invest in domestic business

operations in order to support export and import.

3218. We noted that Exim bank Ghana entered into an agreement

with Oasis Capital Ghana Limited in September 2016. The

objective/focus of oasis capital is to support the agro-processing and

industrial sectors in the country. Based on the agreement, the board

approved an amount of Fifty Million Ghana Cedis

(GH¢50,000,000.00) equity fund representing 95% holding in Oasis



Capital Limited whereas the remaining 5% contributions will be

made by Oasis Capital (callable over a period of five years).

3219. Exim bank Ghana contributed GH¢5,000,000.00 which

represents 10% of its equity share to Oasis Capital on January 14,

2017.

3220. Contrary to the terms of the agreement, Oasis Capital did not

submit audited financial statements within 120 days of each year-

end. Also, they did not submit quarterly un-audited financial

statements within 45 days at the end of each quarter.

3221. EDIF (Exim bank) will also receive on quarterly basis, a

summary of transaction during the period and descriptive

investment information for each of the portfolio. The information

shall include a description of all distributions made by the portfolio

companies. The investors will also receive on annual basis, a

portfolio valuation based on December 31st financial statements,

within 120 days.

3222. Management’s inability to enforce the terms of the agreement

caused the information gap.

3223. The fund investor (Exim bank) will not be able to monitor the

performance of the investment made for well-informed Management

decision.

3224. Without the quarterly and annual information provided by

Oasis Capital, the Exim banks end of year financial statements

could be misrepresented in terms of the returns (dividend) and

valuation of equity stake with the accompanying note to the financial

statements.



3225. The government of Ghana as a major stakeholder (parliament)

of Exim bank with other interested stakeholders will be misguided

in their decision making on the true performance of Exim bank.

3226. The audit team could not ascertain and review the

documentations on the progress of the equity investment at the time

of the audit.

3227. The Management and Board of Exim bank should as a matter

of urgency prevail upon Oasis Capital to provide the necessary

information for effective monitoring of the performance and progress

of the equity.

3228. Management has engaged the Oasis Ghana Ltd and has

appointed a representative of Eximbank to be part of the Board of

Oasis. Management would ensure all periodic report required under

the agreement submitted timely for consideration.

Outstanding Staff advances-GH¢69,660.69

3229. Regulation 110 of the FAR, 2004, L.I 1802 requires a head of

department to ensure that advances issued are duly recovered in

accordance with the appropriate agreement.

3230. Section 3.4 of the Condition of Service also states “The

employees shall be required to redeem any financial commitment

he/she may have to the Fund such as car loans and staff welfare

loans, working imprest, etc after the notice has been given and

before the termination date and same shall be recovered from any

benefits due to the employee.”

3231. Our audit disclosed that Mr. Sulemana Issifu who was no

more with the Bank still owed a total amount of GH¢69,660.69 in

respect of car loan and welfare loan granted him.



3232. Management’s inability to enforce the Condition of Service

resulted in the separated staff not redeeming their financial

commitments.

3233. Failure on the part of Management to ensure the recovery of

advances could negatively impact on the cash flow position of the

bank and result in loss of funds.

3234. We recommended to Management to recover the amount from

the defaulter without further delay or the authorising officers should

be held liable to refund the amount involved.

3235. Management is pursuing the collection of the said amount.

Unpresented Payment Vouchers - GH¢14,506,397.03

3236. Regulation 1(1a & b) of the Financial Administration

Regulations states “Any public officer who is responsible for the

conduct of financial business on behalf of Government of Ghana, the

receipt, custody and disbursement of public and trust moneys shall

keep proper records of all transactions and shall produce record of

the transactions for inspection when called upon to do so by the


General or any officer authorised by them”.

3237. Contrary to the above regulation, Management did not present

a sample of about 41 payment vouchers to cover total amount of

GH¢14,506,397.03.

3238. We were unable to examine and vouch the authenticity of

these payments. Details are shown in table 341.



Table3 41: Unpresented Payment Vouchers DATE PV NO. DETAILS CHQ NO. PAYEE AMOUNT

GH¢

REMARKS

28/3/2017 FBL71/3/17 Airline ticket for

Board Chairman

and CEO

029086 Riali Consult 103,986.00 No receipt

attached to

the PV

28/4/17 FBL83/4/1 Airline Ticket for

staff

029189 Riali Consult 91,421.00 No receipt

attached to

the PV

18/8/17 FBL124/8/1 Assets Acquisition 029745 Architectural

Dev.

Partnership

942,906.89 No receipt

attached to

the PV

13/9/17 FBL36/9/1 Rent- Kumasi

Office

029817 JK Agyemang&

Son Co.


attached to

the PV

5/10/17 FBL33/10/2 PAYE for sept

2017

029913 GRA 133,998.33 No PV and

receipt

attached

24/10/17 FBL90/10/1 Transfer allowance 029965 Abdul baaki 40,756.00 No receipt to

the PV

27/10/2017 FBL133/10/17 Payment of

terminal benefits

to former CEO

020209 Dr. Barfour

Osei


attached to

the PV

06/01/2017 FBL11/3/17 Payment of

medical premium

029025 Metropolitan

Health

Insurance


attached to

the PV



06/01/2017 FBL96/10/17

Payment of

Medical premium

029971 Metropolitan

Health

Insurance


attached to

the PV

10/01/2017 FBL58/9/17 Payment of

medical premiums

for staff

029841 Metropolitan

Health

Insurance


attached to

the PV

01/02/2017 FBL1/2/17 Payment of

training fees for

staff

028947 National

Banking

College


attached to

the PV

03/04/2017 FBL1/4/17 Payment for staff

training program

029110 National

Banking

College


attached to

the PV

13/11/2017 FBL36/11/17 Payment Of Airline

Tickets

020253 Westside Travel

Services


attached to

the PV

02/03/2017 FBL9/3/17 Payment for

Software support

029023 Somuah

Information

Systems


attached to

the PV

7/12/17 FBL12/12/17 Payment for cost

of lunch

020362 Coconut Grove

Sakumono

Hotel


attached to

the PV

16/10/2017 FAB1/10/17 Disbursements of

Funds

0277743 Adventist Dev.

Relief Agency


attached to

the PV


Grant Facility

0277746 Messrs Mudene

Limited


attached to

the PV



22/11/2017 FAB3/11/17 Grant Facility For

Irrigation Project

0277747 Ghana

Irrigation

Development A


attached to

the PV

22/11/2017 FAB3/11/17 Grant Facility For

Irrigation Project

0277749 Grumah Twins

Company

Limited

4,062,622.51 No receipt

attached to

the PV


Grant Facility

0277734 Gillytas

Enterprise


attached to

the PV


Grant Facility

0277737 Directorate Of

Research,Innov

a


attached to

the PV

07/03/2017 FAB2/3/17 Disbmnt of grant

IFO Sea Freight

Pineapple Export

0277739 Sea Freight

Pineapple

Exporter


attached to

the PV


Funds

0277744 Csir - Food

Research

Institute


attached to

the PV

30/11/2017 FAB4/11/17 Disbursement of

funds for

maintenance

0277750 Kobbiman

Farms Limited


attached to

the PV

15/12/2017 FAB3/12/17 Disbursements Of

Grant Facility

0277753 Maripoma

Enterprise Ltd

2,327,976.10 No receipt

attached to

the PV

18/8/2017 FBL67/8/17 Service to Export

Building

029745 Architectural

Design

Partnership

1,002,169.43 No receipt

attached to

the PV



24/10/2017 FBL88/10/2 Asset Acquisition 029963 Architectural

Design

Partnership

1,002,169.43 No receipt

attached to

the PV

06/10/2017 FBL38/10/17 Payment of

retirement

package for former

board member

029919 Mrs. Pearl Esua

- Mensah


/Attachments

to the PV

06/10/2017 FBL39/10/17 Payment of

retirement

package for former

board member

029920 Dr. Johnson P.

Asiama


/Attachments

to the PV

06/10/2017 FBL40/10/17 Payment of

retirement

package for former

board member

029921 Mr. James Z.

Tiigah


/Attachments

to the PV

06/10/2017 FBL41/10/17 Payment of

retirement

package for former

board member

029922 Emmanuel

Mammara


/Attachments

to the PV

06/10/2017 FBL42/10/17 Payment of

retirement

package for former

board member

029923 Nana Dr.

Akuadjei

Dankawoso


/Attachments

to the PV

06/10/2017 FBL43/10/17 Payment of

retirement

package for former

board member

029923 Mr. Joseph

Enimil Armah


/Attachments

to the PV



28/02/2017 FBL63/2/17 Payment of Rent

for Annex office

029014 Valco Trust

Fund


attached to

the PV

07/11/2017 FBL19/11/17 Payment for

Generator set for

CEO

020235 Mr. Lawrence

Agyinsam


attached to

the PV

07/11/2017 FBL20/11/17 Payment for

Generator set for

Deputy CEO's

020236 Mrs.Cynthia

Pamela Addo


attached to

the PV

07/11/2017 FBL21/11/17 Payment for

Generator set for

Deputy CEO's

020237 Mrs. Nana Ama

Poku


attached to

the PV

29/11/2017 FBL96/11/201

7

60% Pmt for

internet

connection

020311 Vodafon Gh 60,193.46 No receipt

attached to

the PV

17/11/2017 FBL75/11/17 Purchase of fuel 020291 GOIL 89,370.00 No receipt

attached to

the PV

4/12/2017 FBL3/12/17 Rent- Ho office 020359 Dr. Koku

Awoonor

Williams


attached to

the PV

22/12/2017 FBL84/12/17 Payment of end of

year package for

Board of Directors

020434 Patrick Boa-

Amponsem

140,000.00 No receipt/

attachment to

the PV

Total 14,506,397.03



3239. The Director of Finance explained that there was an outbreak

of fire at the bank premises and their documents including files that

contained payment vouchers were destroyed.

3240. We could therefore not ascertain the genuineness of the

expenditures for which the Payment vouchers were prepared to

support.

3241. We urged Management to consider complying with fire safety

regulations and safeguarding property and scanning vital

documents/records for archiving electronically to meet the demands

of the regulations above.

3242. Management provided the payment vouchers after

painstaking search based on the audit findings. However, there were

no receipts and attachments to support the payment.

Auditors’ comment

3243. We urged management to provide the necessary supporting

documents for verification and review failure of which the

authorising and approving officer should held liable.

Failure to follow procurement process – GH¢349,688.57

3244. Section 21(1&2) of the Public Procurement Act 2003, Act 663

as amended states ‘A procurement entity shall prepare a

procurement plan to support its approved programme and the plan

shall indicate:

a) Contract packages description or lots,

b) Estimated cost for each package,

c) The procurement method approval needed and

d) Processing steps and times.



3245. We noted during our audit that the bank procured goods and

services amounting to GH¢349,688.57 without recourse to the Act

cited above. The bank did not prepare a procurement plan for goods

and services to be procured from January to September 2017. Also

the procurement plan prepared in October to December did not

cover the items listed in table 342.

Table 342: Failure to follow procurement process

Date Details PV No Chq No Payee Amount GH¢

20/10/17 Consultancy Service

FB87/10/17

029962 Terra Consult

37,012.50

24/4/17 Acqusition of toners for stores

FBL/4/17 029180 Recalm Ltd

7,808.90

31/8/17 Consultancy as transaction advisor

FBL/8/17 029779 Bouders Advisors Ltd

125,490.00

12/9/17 Outstation rebranding Signage

FBL28/9/17

029808 Verdant Zeal Ltd

73,700.00

20/10/17 Consultancy service

FBL87/10/17

029962 Terra Consult

34,650.00

15/12/17 Diaries and Calendars

FBL50/11/17

020400 Orbit Doyag

67,947.17

16/10/17 Exim signage at Ho

FBL88/10/17

029940 Verdant Zeal

3,080.00

Total 349,688.57

3246. We could not ascertain whether National Competitive

tendering procedures and request for quotations under section 44(1)

and 43(1) respectively of the procurement processes were followed.

3247. Management failure to prepare procurement plan to outline

the steps above caused the non-compliance.



3248. Failure by the bank to follow the procurement process did not

give an assurance that the procurements were transparent and that

value for money was achieved.

3249. We recommended that Management should strictly comply

with the Public Procurement Act and develop a workable

procurement plan to guide its procurement activities.

3250. Management indicated in their response the Board of the

Bank which is responsible for giving final approval for procurement

plan was put in place in August 2017. This created a situation where

Eximbank had to wait for the appointment of the new Board of

Directors who will approve the budget submitted by Management for

which procurement could be prepared for 2017.

Auditors’ comment

3251. Section 21 (2) of the Public Procurement Act 2003, Act 663 as

amended states “A procurement entity shall submit to its Tender

Committee not later than one month to the end of the financial year the

procurement plan for the following year for approval”. We therefore

disagree with Management’s position on the issue.

Accounting Software without approval

3252. Section 11(3) of the Audit Service Act 2000 Act 584 states ‘The

public accounts of Ghana and of all persons and institutions




to review by the Auditor-General’.

3253. Similarly, Section 32(1) of the Ghana Export- Import Bank Act

2016, Act 911 states “The Board shall keep books of account and



proper records in relation to the accounts in the form approved by

the Auditor-General’.

3254. We noted that the bank uses Sun-System Software to process

accounting transactions without approval from the Auditor-General.

The audit team did not sight the agreement signed with the software

resource person or entity.

3255. A further review of the software disclosed the following

challenges:

a) The software could not generate financial statements.

Thus, financial statements are prepared manually.

b) The core banking transactions could not be captured in

the system rather the Bank uses Microsoft Excel to

record those transactions.

c) The software could not prepare payroll hence the bank

uses Topaz outsourced by KPMG to prepare its payroll.

3256. Management failure to inform the Auditor-General to review

the Sun- System before its implementation caused the lapse.

3257. Errors arising from the compilation of data and preparation of

financial statements could not be detected easily.

3258. We recommended to Management to seek approval from the

Auditor-General on the software and any subsequent acquisition of

softwares for the purpose of processing accounting information.

Management should make the agreements on the software available

for our review.



3259. Management explained that the SUN accounting software was

acquired during the days of EDAIF and was adequate for their

function at that time. SUN software can generate financial

statements automatically depending on the version acquired and its

configurations. The bank is in the process of acquiring a core

banking software for the purpose of managing its operations as a

bank and the issued raised would be taken into consideration during

implementation.

Construction of irrigation projects – GH¢8,584,890.00

3260. Section 3(x) of the Ghana Export and Import Bank Act, 2016

(Act 911) requires the bank to provide support for small and medium

enterprises engaged in Agro-processing and export trade.

3261. Section 3(z) of the Ghana Export and Import Bank Act, 2016

(Act 911) also mandates the bank to perform any other function that

is incidental to the achievement of the objective of the bank.

3262. We noted that a total amount of GH¢8,584,890.00 was paid

to Messrs Grumah Twins Company Ltd (Contractor) as grants for

the construction of two irrigation dams at Kiape and Mandari in Bole

district. Our enquiry from the community leaders indicated that

after the construction of the dams, handing over was made to the

Ghana Irrigation Development Authority (GIDA) in Bole as a

supervisory body. However, after the said handing over, the GIDA

has not paid any working visit to the dam sites to assess the

situation on the ground.

3263. Our verification of the dams on the 23rd August 2018

disclosed the following in table 343.



Table 343: Construction of irrigation projects

Description Kiape dam Mandari dam

Date of construction and completion

2016 June 2017

Accessibility to road to the dam Motorable Not motorable

Availability of water in the dam Water available Scarcity of water

Spillage of water Sighted spillage Not sighted

Deplorable state Not sighted Deplorable state

3264. The pictures below showed the pictorial representation of the

two dams:

Picture footage of Mandari dam



3265. The audit evidence of two pick-ups parked with audit staff and

community elders at the base of the dam at Mandari.

Picture footage of Kiape Dam



3266. Mandari Community explained that, there was no water in the

dam during the dry season in 2017 and during the time of our visit

in the raining season they were expecting the dam to provide them

with water but the situation was not so.

3267. The Ghana Irrigation Development Authority as a supervisory

body was unable to conduct post implementation review to ascertain

whether the dams are providing water. We enquired if consultation

was made with regards to the siting of the dams especially the

Mandari dam. Considering the sighting of the dams the communities

were consulted. However, the Assembly man of the District indicated

that the District Chief Executive Officer and the Coordinating

Director of the district were not privy to the Architectural design of

the dams to enable them monitor the progress of work.



3268. The non-availability of water in the Mandari dam during the

dry season has caused the Community not to derive any benefit from

the construction of the dam.

3269. We advised Management of Exim Bank to demand post

implementation review from the Ghana Irrigation Development

Authority to assess the two dams and remedy any challenges so that

the purpose of the dam is achieved.

3270. Management said they counted on the requesting agencies to

ensure the effectiveness of the supported programmes that the Bank

assisted them to roll out. Eximbank would therefore be deviating

from its core mandate if they go back to review every project which

they supported agencies, department and other organisations to roll

out which will amount to and misuse of resources.

Interest free repayable facilities – GH¢32,881,864.65

3271. Section 3(x) of the Ghana Export and Import bank Act, 2016

(Act 911) requires the bank to provide support for small and medium

enterprise engaged in Agro-processing and export trade.

3272. We visited twelve beneficiaries of the interest free repayable

facilities to ascertain whether the beneficiaries are still in the

business of which the facilities were granted and seek the reasons

why the repayment of the loans have been overdue. The following

observations were made by the audit team at the selected

beneficiaries’ location. Details are shown in table 344.



Table 344: Interest free repayable facilities Name Approved

Amount

GH¢

Disbursed Amount

GH¢

Details Location Remarks

Sumkoyus Company ltd

2,136,160.00 1,424,106.70 Purchase of raw materials to produce

rubber for pure water sachets

Tamale Repayment should have

started after marketing the product.

Tiberias Ghana

Ltd

9,958,844.00 7,662,404.00 Factory for fruits Tamale Promised to start

operating in 2019

Estacy Natural Ltd 331,500.00 301,500.00 Not visited Tamale Was not available

DPS Company Ltd 1,000,000.00 535,000.00 Construct 1 pen, 1Mechanized bole hole drilled, two Polytanks

(Rambo140) sighted

Tamale Production not started

Yahaya Mohammed farms

150,000.00 150,000.00 Two new pens Constructed at the

new site.

Kumasi Project in progress

Akate Farms and Trading Co. Ltd

2,400,000.00 680,000.00 Well established farm with infrastructure and

equipment


Senyah Farms and Trading

180,000.00 180,000.00 4 Pens accommodating

7,000 birds of 75 weeks old and 5,000 bird of 3 week old.


Kwama Farms and Trading

180,000.00 180,000.00 1 pen petitioned in 3 section with the capacity to house about 10,000-

12,000 birds


Universal Plastic Product

35,000,000.00 16,953,939.00 Not visited Accra Personnel were not available

Safe lanes Ltd 2,000,000.00 1,999,625.00 Stock pile of raw materials in the factory

Accra Yet to commence production

Solution Oasis Ltd 622,622.15 552,622.15 Acquisition of assets and raw materials for the process of shear butter

Accra Project in progress

Tower Animal farm 700,000.00 393,084.00 2 major pens petitioned into three each housing 7,500

birds

Aburi (ER) Project in progress

Ada Premier Diappers 1

1,057,915.00 742,965.00 Breakdown of machines.

Ada (GA) Factory closed down

Groupe PJ Ltd 2,307,698.00 1,126,618.80 Waiting for working capital and payment of assets by Eximbank

Volta Work has not commenced

58,024,739.15 32,881,864.65



3273. Our field visit and interactions with beneficiaries indicated

that extensive due diligence was not carried out in the disbursement

of the funds because some of the beneficiaries lacked technical

ability to carry out the broiler projects.

3274. The delay in disbursement of the remaining approved funds

contributed to production difficulties of the projects.

3275. The beneficiaries of the broiler projects had operational

difficulties with the exception of Akate farms and Trading Ent.

3276. According to Safe Lane Ltd Management, they are facing stiff

competition from foreign products and it is having a toll on its

operations.

3277. The delay in the repayment of the loan could deny other

beneficiaries to access the facilities. Outstanding undisbursed funds

resulted in project execution being stalled.

3278. We advised Management to consider engaging the

beneficiaries of the facilities to address the difficulties by

restructuring the loan repayment terms.

3279. Management should also conduct extensive due diligence in

future disbursement of facilities to prevent recurrence of non-

payment of loans.

3280. Consideration should be given by Management of the bank to

facilitate the payment of outstanding undisbursed approved funds

to enable already committed funds to be repaid by beneficiaries.



3281. Management explained that the loans are legacy facilities

given during the tenure of the old Management and Board. They

have noted for consideration in availing new facilities and

restructuring of currently existing facilities.

GHANA INVESTMENT PROMOTION CENTRE

Introduction


Ghana Investment Promotion Centre for the year ended 31

December 2017.

Operational results

3283. The operations of the Centre for the year under review ended

with a surplus of GH¢23,452,287 as compared with a surplus of

GH¢4,523,508 in 2016 representing a significant increase of 418.5%

in performance. Details of the performance indicators are shown in

the table 345

Table 345: Income and Expenditure Statement for 2017:

Income

2017

GH¢

2016

GH¢

%

Change

Government Subvention 1,108,888 1,222,085 (9.3)

Internally Generated Fund 40,556,892 19,120,214 112.1

Total Income 41,665,780 20,342,299 104.8

Expenditure

General and Administrative Expenses 18,213,493 15,818,791 15.1


Surplus / (Deficit) 23,452,287 4,523,508 418.5


2016 to GH¢41,665,780 in 2017. This increment was as a result of

an increase in Internally Generated Fund from GH¢19,120,214 in

2016 to GH¢40,556,892 in 2017.



3285. The Total expenditure for the year 2017 was GH¢ 18,213,493

as against GH¢15,818,791 in 2016 representing a 15.1% increase.

This was due to an increase in Salaries and Related cost from

GH¢7,039,512 in 2016 to GH¢9,007,869 in 2017.

Financial Position

3286. The Centre’s financial position, as at 31 December 2017 is



Item 2017 GH¢

2016 GH¢

GH¢ Change

% Change

Non- Current Assets 12,198,334 12,551,520 (353,186) (2.8)

Current Assets 31,108,216 6,332,239 24,775,977 391.3

Current Liabilities 3,073,790 2,103,287 970,503 46.1

Net Asset 40,232,760 16,780,472 23,452,288 139.8


3287. Non-Current Assets went down from GH¢12,551,520 in 2016

to GH¢12,198,334 in 2017 which represents a 2.8% decrease. The

reduction was as a result of an increase in Depreciation on Motor

Vehicle from GH¢1,126,373 in 2016 to GH¢1,539,467 in 2017.

3288. Current Assets increased from GH¢6,332,239 in 2016 to

GH¢31,108,216 in 2017 representing a significant rise of 391.3%.

The increase was due to a 610.6% rise in Cash and Cash Balances

from GH¢3,570,101 in 2016 to GH¢25,369,722 in 2017.

3289. Current Liabilities also increased by 46.1% from

GH¢2,103,287 in 2016 to GH¢3,073,790 in 2017. The rise was

mainly due to an increase in Accounts Payable.



3290. The Liquidity position as measured by the Current ratio of

10.1:1 for 2017 and 3.0:1 for 2016 financial year shows an

improvement in the liquidity position. This indicates that the Centre

can meet its short- term obligations as and when they fall due.

MANAGEMENT ISSUES

Bank Reconciliation Statements not prepared monthly

3291. Regulation (2g) of the Financial Administration Regulations,

2004 (L. I. 1802) requires the Head of a Government department to

manage and reconcile the bank accounts authorised for the

department.

3292. Contrary to the above we however noted that Bank

Reconciliation Statements were not prepared at the end of every

month.

3293. The irregular supervision of the Account staff to prepare

statements as required by this Act accounted for this.

3294. The inconsistency in the preparation of bank reconciliation

statements would prevent stale cheques, unpresented cheques, and

uncredited cheques to be addressed and corrected.

3295. We advised Management to make sure that Bank

Reconciliation Statements are prepared at the end of every month

and reviewed by a supervisor to ensure that the right balances are

carried forward to the ledgers.

Management accepted our recommendation.



GHANA FREE ZONES AUTHORITY (GFZA)

Introduction

3296. This report covers the audited accounts of the Ghana Free

Zones Authority for the two years ended 31 December 2016 and

2017.

Operational results


table 347

Table 347: Income Statement for the year ended 31 December 2017

Income 2017

GH¢

2016

GH¢

%

Change

Operating income 41,245,180 73,821,200 (44.1)

Other income 7,606,609 2,339,181 225.2

Released from construction fund 348,730 348,730 -

Total Income 49,200,519 76,509,111 (35.7)

Expenditure

Operating expenses 3,216,926 8,372,717 (61.6)

Employee costs 6,182,018 4,685,213 31.9

Board and committee expenses 433,779 1,588,292 (72.7)

Financial and professional charges 332,020 470,412 (29.4)

Travelling & transport 2,497,805 2,829,710 (11.7)

Repairs and maintenance 6,626,190 2,253,405 194.1

Administrative and general

expenses

10,862,512 5,917,215 83.6


Excess of income over expenditure 19,049,269 50,392,147 (62.2)

3298. The company recorded a surplus of GH¢19,049,269 in 2017,

thus registering a 62.2% decrease over 2016 surplus of

GH¢50,392,147.

3299. Total Income decreased by 35.7% from the 2016 amount of

GH¢76,509,111 to GH¢49,200,519 in 2017. The decrease was due

to a 41.1% decrease in operating income from GH¢73,821,200 in



2016 to GH¢41,245,180 in 2017. Operating income is made up of

Leased land premiums, Ground rent income, Annual license &

renewal fees, Vehicle registration & clearing fees, sale of forms and

processing fees.

3300. Total expenditure increased by GH¢4,034,286 or 15.4% from

GH¢26,116,964 in 2016 to GH¢30,151,250 in 2017. The increment

was due to a 194.1% increase in repairs and maintenance from

GH¢2,253,405 in 2016 to GH¢6,626,190 in 2017 and an 83.6%

increase in Administrative and General Expenses from

GH¢5,917,215 in 2015 to GH¢10,862,512 in 2016.

Financial position

3301. The financial position for 2017 is summarised in table 348


Item 2017

GH¢

GH¢2016 %

Change


Current Assets 108,690,867 89,673,613 21.2


Current Ratio 5.5:1

3.9:1

3302. Non-Current Assets registered a decrease of 6.7% or

GH¢3,436,399 from GH¢51,253,922 in 2016 to GH¢47,817,523 in

2017.The decrease was due to depreciation charge for property,

plant and equipment.

3303. Current Assets increased by 21.2% to GH¢108,690,867 in

2017 from GH¢89,673,613 in 2016. This comprise asset held for

trading, accounts receivable, assets available for sales and cash &

cash equivalent. The increase was due to 1053.4% or

GH¢20,429,828 increase in assets available for sale.



3304. Current Liabilities recorded 13.7% decrease over the 2016

amount of GH¢22,727,221 to GH¢19,607,536 in 2017. This was due

to GH¢7,047,433 decrease in payables of head office buildings.

3305. The liquidity position measured in current ratio increased

from 3.9:1 in 2016 to 5.5:1 in 2017, and this indicates the company


MANAGEMENT ISSUES

No Approval from Ministry of Finance sighted for Board

Allowances Paid GH¢981,642.74

3306. Section 4(3) of the Free Zone Act, 1995 (Act 504) states that

members of the Board shall be paid such allowances as the Minister

responsible for Finance shall determine.

3307. We noted that the allowances paid to members of the Board

during the period under audit were not approved by the Minister of

Finance as required in the Free Zone Act. A schedule of payments

made for the period under review is detailed in table 349.

Table 349: Board Allowances Paid

Description of Payment 2017

GH¢

2016

GH¢

Board Allowances *280,361.09 224,573.50

Board Bonus 123,750.00

Committee allowances 122,683.30 230,274.85

Total 403,044.39 578,598.35

*Includes Bonus

3308. The Board members felt that the sector (Trade) Minister’s

approval was adequate, since he is the chair of the Board.

3309. The Board approved their own allowances against general

corporate guidelines and the Free Zone Act.



3310. We recommended that the Board should seek retrospective

and current approval from the Minister of Finance for allowances

paid to members.

3311. Management responded that the Ministry of Finance recently

circulated the approved rates to be applied in payment of Boards

and committees sitting allowances. The Authority has started

implementing the directive. Prior to this circular, the Board and the

sector Minister for Trade and Industry deliberated on the fees.

Non-Compliance with Ministry of Finance Directive on IGF

retention

3312. Section 47(2 & 3) of the Public Financial Management Act,

2016 Act 921 requires revenue collected or received by a covered

entity to be paid into and form part of the Consolidated Fund.

3313. A covered entity may retain revenue collected or received,

where the revenue is in the form of a levy, license fee or

administrative penalty and the covered entity is authorised through

appropriation by Parliament to retain the revenue.

3314. Management did not present authorisation for full retention

of GFZA internally generated funds, hence did not comply with

section 47 of the PFMA 2016, Act 921 and Ministry of Finance

directive on state enterprises compliance to the Act 921.

3315. Management felt GFZA is not included in the clause since

they do not receive Government’s Subvention. Government is

deprived the use of such funds for national development.

3316. We recommended to Management to comply with the Act 921

and seek approval from Parliament through the Minister of Finance

to retain the funds.



3317. Management indicated that since its creation in 1995 by an

Act of Parliament, the Free Zone Act, 1995 (Act 504), the GFZA has

not received any budgetary support from the central government

even though by law it is a government subvented Agency.

3318. It solely depends on the internally generated funds to finance

its operation including payment of staff salaries. The Authority

therefore has applied to the Minister of Finance for special

exemption as a free zone regulator from the NTR/IGF Policy. Copy of

correspondence available for perusal.

Dealing with non-Value Added Tax (VAT) registered Entities

3319. Regulation 183(4) of the Financial Administration

Regulations, 2004 states that a department shall procure

government stores from only VAT registered persons or entities and

any department that requires an exemption for any specific case

shall apply to the Minister with necessary justification.

3320. During our review of contracts and payments, we noted that

some of the suppliers engaged by GFZA during the period under

audit were Non-VAT registered entities. Accordingly, VAT was not

charged on the payments for these services.

3321. Management overlooked the need for all suppliers to be VAT

registered.

3322. Dealing with Non-VAT registered companies lead to loss of

revenue to Government.

3323. We recommended that GFZA should comply with the relevant

Act and deal with only VAT registered Entities.



3324. Management indicated that since then they have changed the

service provider (SAPEX, Vehicle servicing garage) and now deals

with VAT registered service providers.

Long Outstanding Receivables



the due and proper collection of government revenue collectible by

the department within the terms of any enactment or of instructions

issued or approved by the Controller and Accountant-General.

3326. Our review of the receivables disclosed long outstanding

balances owed by Free Zones Companies to the Authority. Table 350

is a summary of these outstanding receivables to be collected from

Free Zones Companies.

Table 350: Long Outstanding Receivables

Type of Receivables 2017 GH¢

2016 GH¢

Power Usage Receivable 909,733.12 909,733.12

Ground Rent Receivable 1,048,653.89 1,048,653.89

License Renewal Receivable 817,960.00 817,960.00

Total 2,776,347.01 2,776,347.01

3327. This anomaly could be attributed to Management inadequate

strategy for retrieving receivables and the folding up of some of the

companies. This has negatively affected the cash flow position of the

Authority and may lead to loss of revenue to Government.

3328. We recommended that Management should device

appropriate plans to retrieve all receivables. Management should in

line with the PFMA begin the process of writing off debts that have

become uncollectible.



3329. Management indicated that they have instituted additional

measures, apart from normal demand notices to impose

penalty/surcharges and suspension of services of defaulters to

reduce long standing debt. Also, a task force and a credit control

team have been established to do follow-up visits to defaulters to

ensure that debts are liquidated.

Unapproved Ex-Gratia Payments-GH¢308,729.01

3330. Regulation 39(2c) of Financial Administration Regulations

requires the head of the accounts department to control

disbursement of funds and ensure that transactions are properly

authenticated to show that amounts are due and payable.

3331. Section 4(3) Free Zones Act 1995 (Act 504) requires members

of the Board to be paid allowances as the Minister responsible for

Finance shall determine.

3332. During our review of Board expenses, we noted that the Board

members received a total of GH¢308,750 as ex-gratia payment in

2016. The amount was paid on 30 December 2016 with cheque no

005570. No approval from the Ministry of Finance was sighted for

our review as shown in table 351.

Table 351: Unapproved Ex-Gratia Payments

Name Gross GH¢

Tax GH¢

Net GH¢

Hon. Dr. Ekow Spio-Gabrah

25,000.00 5,000.00 20,000.00

Mrs. Gifty Anku 20,000.00 4,000.00 16,000.00

Ms. Katherine Oduro 20,000.00 4,000.00 16,000.00

Mrs. Eugenia Jackson-Cofie

20,000.00 4,000.00 16,000.00

Mr. William Adotei Addo 20,000.00 4,000.00 16,000.00

Mrs. Florence Hutchful 20,000.00 4,000.00 16,000.00

Ms. Anita De Sosoo 20,000.00 4,000.00 16,000.00



Mr. Kwabena Yeboah 20,000.00 4,000.00 16,000.00

Acp (Rtd) Alhaji Mahama Adams

20,000.00 4,000.00 16,000.00

Kwadwo Twum Boafo-CEO 212,952.84 52,223.83 160,729.01

Total 308,729.01

3333. The disregard for the provision of the law has accounted for

this infraction.

3334. The amount paid to the Board members was not

appropriately authorised. The Board should seek approval from the

MOF for the payments, otherwise the amount should be refunded by

the Board members immediately.

3335. Management indicated that the Ministry of Finance has been

engaged in the matter and they are hoping to get their directive for

action.

Payment without adequate supporting documents-

GH¢1,010,000.00


2004 states that the head of the accounts section of a department

shall control the disbursement of funds and ensure that


due and payable.

3337. We noted that payment was made for some transactions

without adequate supporting documents attached to the payment

voucher. In some instances, we sighted only payment vouchers with

a description of the payment made. The details of the payment have

been indicated in table 352.



Table 352: Payment without adequate supporting documents

Date Description Amount

(GH¢)

30/06/17 Interest accrued on Ministry of Trade & Industry Debt

300,000.00

14/08/17 National Policy Summit-Ministry of Trade &

Industry

100,000.00

14/12/17 Made in Ghana Fair-Ministry of Trade &

Industry (MOTI)

20,000.00

29/08/17 Honorarium to Select Committee of

Parliament

50,000.00

12/09/17 Honorarium to members of Public Accounts

Committee of Parliament to GFZB invitation.

40,000.00

05/07/16 First ECOWAS Industry Summit in Accra-MOTI

500,000.00

1,010,000.00

3338. Poor supervision in ensuring adequate supporting documents

were attached to payment vouchers before payments accounted for

this anomalous condition.

3339. Without supporting documents it is difficult to ascertain that

value for money was received for the expense. Expenses paid for may

not have been legitimately incurred.

3340. We recommended that the amount should be accounted for

with relevant supporting documents. Officials who signed for those

payments should refund if they cannot obtain the appropriate

supporting documents.

3341. Management responded that these payments were in support

of the protocol and business facilitation process led by the Ministry

of Trade and Parliamentary Select Committees.



Licenses of Dormant Companies not revoked

3342. Section 18(1) of the Free Zone Act 1995 (Act 504) states that

the Board may revoke a license where it is satisfied that there has

been a breach of the condition attached to the license.

3343. We noted during the audit that some Free Zone Enterprises

(FZE) have been dormant for several months whiles some companies

also operated without renewing their licenses. The list of dormant

companies is detailed in table 353.

Table 353: Licenses of Dormant Companies not revoked

1. 888 Investment 13. Met Trade Gh Ltd

2. Air Liquide Ltd Manu 14. Myroc Logistics

3. Akanfo Cocoa Processing 15. N&C Food Ltd

4. Anarch Ghana Ltd 16. Newrest First Catering

5. Ayensu Starch Ltd 17. Provest Export (GH) Ltd

6. Bear Machine Ltd 18. Rajkumar Ltd

7. Blackstar Foods Ltd 19. Ruker Venturs

8. Cagy Ghana Limited 20. Samgladwin Company

Ltd

9. Dernan Salt Trading 21. Viking Offshore

10. Globalpak Ltd 22. Infonaligy Ltd

11. Shebu Ind 23. Kpone Lobster

12. Spring and Bolts

3344. The Authority did not follow up on dormant companies

neither were there sanctions by FZE for licences not renewed.



3345. The Authority has receivables that may never be collected.

Revenue from license renewal has not been collected for the

organisation’s use.

3346. We recommended that Management should sanction

companies that operate without licenses. License of those that

remain dormant for specific number of months should be revoked

and deleted as a Free Zone Enterprise.

3347. Management indicated that they currently have reviewed the

register of FZE’s and those found to have been inactive for long time

have been deleted.

Procurement Breaches- GH¢470,433.76

3348. Section 21(5) of the Public Procurement Act 663 states that a

procurement entity shall not divide a procurement order into parts

or lower the value of a procurement order to avoid the application of

the procedures for public procurement.

3349. Section 22(1) (a)(i) states that a tenderer in public

procurement shall possess the necessary and technical

qualifications and competence.

3350. We noted that procurement contracts were segregated in

some instances to enable the transaction fall within the threshold of

the Head of Agency. These include several weeding contracts that

were awarded within a short period of time. Details are shown in

table 354 for the 2016 and 2017 financial years’ bulk breaking

procurement.



Table 354: Procurement Breaches

Date Contractor Description CHQ PV Amount GH¢

2016

15/06/16 Nobta Ltd 50% clear & dispose debris at Garment Vil. Enclave

500/2016 20,850.00

20/06/16 Koinna Ventures

50% weed clearing/Debris

coll./Service road @

TEPZ

4549 501/2016 18,435.00

27/06/16 Coltran 50% weed clearing, debris disposal @ TEPZ

4426 545/2016 34,690.00

27/06/16 Apex 50% weeds clearing/debris disp. @ canteen TEPZ

541/2016 17,762.50

17/06/16 K.O. Adom 50% weeds clearing, service Road at TEPZ

17,325.00

109,062.50

2017

22/06/2017 Grapa Gh Ltd 50% for celaring of weed and collection @ main road to red sea

6090 23,676.25

22/06/2017 Fregiingo Co Ltd

50% clearing of weeds & creation of fire belt

6011 66,328.75

21/06/2017 Double Moderno

50% clearing of weeds @multipurpose

industrial park

6085 24,675.00

20/06/2017 Zabarnes Co Ltd

50% clearing of weeds @ TEPZ

6081 54,520.00

20/06/2017 Asgl Gh. Ltd 50% clearing of weeds @ TEPZ

6079 522 52,757.50

31/07/2017 Kokro Royal Co.

Ltd

50% clearing of weeds at

ICT park TEPZ

5759 690 80,193.76

27/07/2017 Raysant Domestic

50% clearing of weeds @ clinic & canteen

6238 59,220.00

361,371.26


3351. Moreover, basic statutory documentation required to qualify

suppliers were not taken from tenderers. Business registration

certificates and VAT registration certificates could not be submitted

to us for audit.



3352. Disregard for the relevant section in the Procurement Act led

to this anomaly.

3353. Breaking of bulk procurement does not ensure value for

money and contracts may be awarded to unqualified suppliers.

3354. We recommended that Management should review all

suppliers’ files and update them with the requisite statutory

documentation. Contracts should not be divided in order to avoid

the appropriate authorisation and approval.

3355. Management indicated that the Authority’s Procurement

Plans and Budgets have always been cleared with the Public

Procurement Authority before implementation.

Due process not followed for auction of Vehicles

3356. Section 83(1) of the Public Procurement Act 2003 states that

the head of a procurement entity shall convene a Board of Survey

comprising representations of departments with unserviceable,

obsolete or surplus stores, plant and equipment which shall report

on the items and subject to a technical report on them, recommend

the best method of disposal after the officer in charge has completed

a Board of Survey form.

3357. Section 52(8) of the Public Financial Management Act 2016,

Act 921 states that the Minister may by legislative instrument

delegate powers of deletion and disposal of government assets to the

Principal Spending Officer of a covered entity, state-owned

enterprise or public corporation.



3358. We noted that certain assets were disposed of in 2016, the

assets included vehicles and furniture which were purchased by

various persons at the GFZA. However, we did not sight approval of

Legislative instrument delegating disposal authority to the CEO. We

also did not sight any evidence of a Board of Survey set up to

authorise the disposal.

3359. Management felt that the Boards approval was adequate to

dispose of the assets.

3360. The disposal was not done in accordance with due process;

hence value for money may not have been realised.

3361. We recommended that Management should seek

authorisation for all disposals in line with the PFMA and set up a

committee to oversee the exercise. Management should seek

retrospective approval for the items disposed of. Otherwise, the

disposal process should be nullified.

3362. Management explained that the Authority had the Board’s

and the sector Minister’s approval to dispose of the vehicles which

were too old and did not make economic sense to continue using

them. A licensed auctioneer was engaged to manage the process

including valuation of the vehicles and report issued by the State

Transport Company.

High encroachment at Takoradi FZ enclave 3363. Section 52(1) of the Public Financial Management Act 2016,

Act 921 states that a Principal Spending Officer of a covered entity,



Officer and shall ensure proper control system exists for the custody

and management of the assets.



3364. We noted during our visit to the Takoradi enclave that there

is serious encroachment on the land by various persons.

3365. The Authority did not have full possession of the parcel of

land designated as Free Zone enclave. Land designated as Free Zone

enclave may not be available for industrial development to meet its

set objective.

3366. We recommended to Management to review the agreement

with the custodians of the land and pay the appropriate

compensation. The land designated as Free Zone enclave should be

secured from encroachers.

3367. Management indicated that they have taken action to secure

the land through erection of signpost to warn encroachers and re-

demarcation of the land for the construction of a fence to ward-off

encroachers.

MANAGEMENT DEVELOPMENT AND PRODUCTIVITY

INSTITUTE

Introduction

3368. This report relates to the audited financial statements of

Management Development and Productivity Institute for the year


Operational Results

3369. The Institute closed the 2015 financial year with a deficit of

GH¢130,906 as compared with a surplus of GH¢38,750 in 2014.

This implied that there was a reduction of 438.0% over the previous



year’s surplus. A summary of Institute’s performance indicators for

2015 are shown in table 355.


Income 2015 GH¢

2014 GH¢

% Change

Subvention 1,334,635 1,367,478 (2.4)

Internally generated

funds

1,216,315 1,023,625 18.8

Total Income 2,550,950 2,391,103 6.7

Expenditure

Compensation for employees

1,334,635 1,367,478 (2.4)

Goods and Services 1,347,271 984,875 36.8

Total 2,681,906 2,352,353 14.0

Surplus/(Deficit) for the year

(130,956) 38,750 (438.0)

3370. Total Income increased from GH¢2,391,103 in 2014 to

GH¢2,550,950 in 2015, representing a rise of 6.7%. This was mainly

due to an 18.8% increase in Internally Generated Fund during the

year under review.

3371. Total Expenditure of the Institute increased by 14.0% from

GH¢2,352,353 in 2014 to GH¢2,681,906 in 2015. This was mainly

due to increases in electricity and water costs by 595.0% and

Training and Conferences Fees by 1,707%.

Financial Position

3372. The financial position of the Institute as at 31 December,





Item 2015 GH¢

2014 GH¢

% Change

Non-Current Assets 690,294 612,022 12.8

Current Assets 313,191 321,190 (2.5)


Net Current Assets 86,210 190,163 (54.7)

Net Assets 776,504 802,185 (3.2)

Current Ratio 1.4 : 1 2.5: 1

3373. Non-Current Assets rose from GH¢612,022 in 2014 to

GH¢690,294 in 2015 representing a 12.8% increase. This increase

can be attributed to additional assets acquired during the year.

3374. Current assets decreased marginally by GH¢7,999,

representing a 2.5% fall in value from GH¢321,190 in 2014 to

GH¢313,191 in 2015. This was as a result of redemption of treasury

bills that matured during the year.

3375. Current Liabilities also went up by 73.2% from GH¢131,027

in 2014 to GH¢226,981 in 2015. Increases in Other Creditors by

GH¢81,015 or 81.1% accounted for this rise.

3376. The Institute’s liquidity which is measured by the current ratio

stood at 1.4:1 in 2015 (2.5:1-2014). This shows that the institute

will barely be able to meet its short-term obligations as and when

they fall due.



MINISTRY OF INFORMATION

GHANA NEWS AGENCY

MANAGEMENT ISSUES Financial Statements not submitted for validation

3377. Regulation 40(2) of the Financial Administration Regulations

2004, (L.I 1802) states “The requirement for receipt of financial

support shall be subject to the condition that the institution assisted

shall render audited annual statements of accounts to the Minister

with a copy to the Controller and Accountant-General.”

3378. Section 80 (1) of Public Financial Management Act, 2016 (Act

921) states “A Principal Spending Officer of a covered entity shall,

within two months after the end of each financial year, prepare and

submit to the Auditor-General and Controller and Accountant-

General, the accounts and information set out in the Schedule.”

3379. Mr. Ibrahim Aryeequaye and Ms. Grace B. Atipaga both

Principal Accountants in charge of the financial records of the

Agency during the audit period did not prepare Financial Statements

for, 2016/2017 and 2018 respectively. Consequently, the audit team

was not given the period’s financial statements for validation.

3380. This anomaly was as a result of successive Management’s

indifferent posture towards the preparation of the Agency’s financial

statements.

3381. The absence of annual financial statements from

Management does not engender accountability for its stewardship.

This anomaly has the tendency to deny stakeholders reliable

information for decision making.



3382. We recommended that, Management make available for

validation signed financial statements covering the 2016, 2017 and

2018 financial years.

3383. Management said it will investigate as to why Financial

Statements were not prepared by previous accountants and

submitted for audit. Consequently, the responsible officers have

been summoned and tasked to produce the Financial Statements

with the assistance of Mr. Kwaku Agyei Larbi, current Head of

Accounts.

Auditors’ comment

Though Ghana News Agency submitted the required financial

statements, the action took place when the Management letter for

the audit had long been issued to the Agency the reason why same

was not captured in this report.

Payments without official receipt – GH¢56,368.15


Regulations 2004 (L.I. 1802) stipulates that the head of accounts





3385. Our examination of payment vouchers disclosed that the

Agency made payments for goods and services amounting to

GH¢56,368.15 without obtaining official receipts. Details are shown

in table 357.



Table 357: Payments without official receipt

3386. Management attributed this infraction to the negligence of the

cashiers, Mr. Isaac K. Sasu and Mr. Daniel Aryeh.

Date PV No.

PV Amount

GH¢

Cheque

No. Description Payee Irregularity Remarks

02/02/16 22

1,222.15 Agent Service

Commission paid

John Agent to Provide

receipt for payment or

authority note for John to

receive

Provide agent receipt or

authority note

02/12/16 53 796.00

PER DIEM for

21 days -

training

programme in Beijing

(ghc3.98X$200)

Rex Annan No invite or

admission letter

attached

provide invite or

admission letter

16/3/16 86 3,083.00

Expenses for

Opening CHINA/AFRICA

Desk

Without evidence of

expenditure

Provide receipt

and others

1/6/16 158 1,000.00

Purchase of

Modem

Rex Annan Without

evidence of expenditure provide receipt

06/10/16 163 815.00

Cable and Fuse purchased

Henry Adomako

Oduro

No evidence of purchase

attached

Provide receipt

of payment

07/08/16 190 2,112.00

Trip to Sunyani

for COH Documentary

Ernest

Lartey & Other

No receipt

obtained for Accommodation

of GHC1000

Receipt for accommodation

or refund

10/10/18 109/18 10,000.00 172829 GNA/ MAIN 80 staff

members No Distribution list to

beneficiaries

Provide list with

signatures

10/10/18 108/18 6,750.00 172828 GNA/ MAIN Payment of Budget

Committee Allowance

No memo to payment

Provide Memo with names of

beneficiaries

31/01/18 Jul-18 5,000.00 173108 Editorial Dept Sponsorship No supporting document

Provide receipt and other

related

documents

22/01/18 Apr-18 1,590.00

173107 William Ezah, Edna Quansah

and William Fiabu

Visa Payment

No Receipt attached to

voucher

Provide receipts

19/01/18 Aug-18 24,000.00

173106 William Ezah, Edna Quansah

and William Fiabu

Payment for ticket

(inspect receipt to

ticket)

No Receipt attached to

voucher

Provide receipts

Total 56,368.15



3387. We could therefore not certify whether the payments were

made to the intended payees nor confirm whether the moneys

expended were in the best interest of the Agency.

3388. We urged, Management to ensure that the accounts officers

obtain the receipts from the payees to account for the payments or

refund the GH¢56,368.15 to the Agency’s account. In addition,

Management should ensure that all subsequent payments must be

supported with the relevant documents including receipts from the

payees.

3389. Management stated that, the cashiers have been directed to

liaise with all the clients involved to obtain official receipts for the

period under review.

Use of IGF without retention approval – GH¢773,145.42 3390. Regulation 17(b) of the Financial Administration Regulations

2004, (L.I 1802) states “A head of department shall ensure that all

Non-Tax Revenue is immediately lodged in the designated

Consolidated Fund Transit bank accounts except in the case of

Internally Generated Funds retained under an enactment”.

3391. Our review of revenue management disclosed that, the

Institution generated a total of GH¢527,739.42 being revenue from

operating activities (advert charges & commissions, news

subscriptions, publications, media coverage and documentary) and

commercial rental of office space and lands covering the period

01/01/16 to 31/12/18, but did not remit same into the

Consolidated Fund.

3392. We further noted that the Agency, on its own frolic spent the

total internally generated revenue of GH¢527,739.42 on non-

revenue generation activities and without recourse to the Minister of



Finance for approval for retention as required by the Retention of

Funds Act 2007(Act 735).

3393. The Agency later went for the full refund of the IGF spent from

its parent Ministry, i.e. Ministry of Information because according to

the Agency the activities on which those IGF were spent were pre-

financed. The Agency again did not pay the refunded IGF of

GH¢527,739.42 to the consolidated fund but went ahead and spent

it.

3394. Other revenue comprising donation and sponsorship received

from both SOEs and private institutions within the same period also

totalled GH¢245,406.00. Details are shown in table 358.

Table 358: Use of IGF without retention approval

IGF Summary

Year

Operating Activities

GH¢

Rent

GH¢

Others

GH¢

Total

GH¢

2016 69,891.45 151,415.00 196,681.00 417,987.45

2017 39,113.91 141,700.00 11,200.00 192,013.91

2018 27,529.06 98,090.00 37,525.00 163,144.06

Total 136,534.42 391,205.00 245,406.00 773,145.42

3395. Management attributed this anomaly to budgetary funding

gaps and the need to fall on IGF in meeting high operational costs.

3396. We recommended that the Agency should refund the total IGF

accrued of GH¢527,739.42 to the consolidated fund. We further

urged Management to desist from that practice until IGF Retention

Clearance is sought from the Minister of Finance.

3397. Management said it will as a matter of urgency seek clearance

from the Ministry of Finance through the sector minister with regard

to the use of IGF to support it operational costs.



Unauthorised Payments – GH¢149,310.00 3398. Regulation 39 (2) (c) and (d) of FAR requires that

disbursements of funds be controlled to ensure that transactions are

properly authenticated to show that amounts are due and payable

and any order for disbursements that does not meet these

requirements is rejected.

3399. We noted that instead of a single Budget Committee as

required by FAR (L.I 1802), Management formed 4 budget

committees with the same principal officers serving on all the

committees and took separate sitting allowances. Each committee

recorded nine (9) sittings.

3400. Upon further scrutiny, it was disclosed that Management had

no Board approval for the formation of these committees and to

commit the Ghana News Agency to paying such sitting allowances.

The illegitimate committees had no working files and minutes of

sittings to show proof of work done. The committees were; Budget

Preparation Committee; Budget Technical Committee; Performance

Based Budget (PBB) Production Committee and Budget Data

Capturing Committee. The Agency spent GH¢149,310.00 on sitting

allowances for the committees. Details are shown in table 359.

Table 359: Unauthorised Payments

Beneficiaries Fiscal Year Committee Sittings

Allowance Taken GH¢

No. Name 2018 Budget Tech nical Com.

Perfor-mance Based Budget

(Pbb) Produc-

tion Com.

Budget Prepa-ration Com.

Budget Data

Capturing Com.

Total No. Of Sitting

Rate Amount Received

1 Kweku Osei Bonsu 9 9 9 9 36

500.00

18,000.00

2

Grace

Batayire Atipaga 9 9 9 9 36

400.00

14,400.00



3

Henry

Adomako Oduro 9 9 9 9 36

400.00

14,400.00

4 Daniel Aryeh 9 9 0 0 18

400.00

7,200.00

5 Barbara B. Dodoo 9 0 0 0 9

400.00

3,600.00

6 Zeinabu Musah 9 9 0 0 18

400.00

7,200.00

7

Angela

Ohene 9 0 0 0 9

400.00

3,600.00

8 Rama Okai 9 0 0 0 9

400.00

3,600.00

9 Thomas Appiagyei 9 0 9 9 27

400.00

10,800.00

10

Solomon

Nkansah 0 9 0 0 9

400.00

3,600.00

11 Kubra Alhassan 0 9 0 0 9

400.00

3,600.00

12 Cynthia Berko 0 9 0 0 9

400.00

3,600.00

13

Irene

Nkansah 0 9 0 0 9

400.00 3,600.00

14 Andre Botchway

0 0 9 0 9 400.00 3,600.00

15 Linda A. Monakey 0 0 9 0 9

400.00

3,600.00

16 Charles Ahinful 0 0 9 0 9

400.00

3,600.00

17 Mary Kafui

0 0 9 0 9 400.00 3,600.00

18

Rosemary

Amoateng 0 0 0 9 9

400.00

3,600.00

19 Juliet Koomson 0 0 0 9 9 400.00 3,600.00

20 Margaret Asare 0 0 0 9 9

400.00

3,600.00

21

Esther

Nkansah 0 0 0 9 9

400.00

3,600.00

22 Janet Lomotey

0 0 0 9 9

400.00 3,600.00

23 Eric D. Amartey 0 9 0 0 9

400.00 3,600.00

2016

1 Ibrahim Aryeequah 0 0 0 3,300.00

3,300.00

2 Francis Rex Annan 0 0 0 3,300.00

3,300.00

3 Samuel Bruce Nyarko 0 0 0 3,260.00

3,260.00



4 Donatus Siilo 0 0 0 3,250.00

3,250.00

5 Irene Nkansah

0 0 0 2,000.00

2,000.00

6 Zeinabu Musah 0 0 0 1,000.00

1,000.00

TOTAL

149,310.00

3401. Management’s disregard for Board authority and due process

accounted for the irregularity.

3402. The four committees with same key officers were a duplication

of effort and a waste of scarce financial resources.

3403. In the absence of the Board approval, these payments are not

due and payable, therefore, we recommended that the

GH¢149,310.00 be retrieved from the payees, failing which the

spending officer and accountant should refund in full and evidence

presented for verification.


Inappropriate Payment of Fuel & Maintenance Allowance - GH¢135,504.18 3405. Regulation 39 (2) (c) and (d) of Financial Administration

Regulations 2004, (L.I 1802) states “The head of the accounts section

of a department shall control the disbursements of funds and ensure


are due and payable; and any order for disbursements that does not

meet these requirements is rejected.”

3406. A review of compensation related allowances paid to staff over

the period under review identified fifteen (15) officers without cars

yet received fuel and maintenance allowance. A total of

GH¢135,504.18 was wrongfully paid and claimed by these officers.

Details shown in table 360.



Table 360: Inappropriate Payment of Fuel & Maintenance

Allowance

No. Names

Amount Paid

(F & M) GH¢

Amount Due

(Kakdee) GH¢

Over Payment

GH¢

Remarks

1 Elizabeth Kankam Boadu

19,183.50

5,602.50

13,581.00

Without car

2 Justina Hilda Paaga 21,802.50 5,602.50 16,200.00 Without car

3 Osei Nana Kyeretwie 15,862.50 5,602.32 10,260.18 Without car

4 Hannah Kwakai Tufuor 9,130.50 5,602.50 3,528.00

Without car

5 Barbara Bernice Dodoo

13,459.50 5,602.50 7,857.00 Without car

6 Henry Adomako Oduro

21,978.00 5,602.50 16,375.50 Without car

7 Samuel Osei Frimpong

12,946.50 5,602.50

7,344.00 Without car

8 Daniel Aryeh 13,459.50 5,602.50 7,857.00 Without car

9 Albert G. K. Quansah 7,398.00 4,320.00 3,078.00 Without car

10 Beatrice Savage Asamani

3,816.00 0.00 3,816.00 Without car (joint ownership)

11 Augustine Appiah 2,576.26 1,518.75 1,057.50 Sold Car (28/9/18)

12 Kweku Kissi Yeboah 3,816.00 0.00 3,816.00 Without car

13 Christabel Addo 20,911.50 5,602.50 15,309.00 Without car (joint ownership)

14 Patrick Dela Cofie 15,759.00 2,565.00 13,194.00 Without car (vehicle is registered to a woman)

15 Patience A. Gbeze 13,513.50 1,282.50 12,231.00 Without Car (Ownership is from 23/3/18)

Total 135,504.18

3407. This is as a result of the Head of Account’s failure to ensure

that the amounts are due and payable.

3408. Making payments for claims that is not grounded on proven

documentary evidence denies the Agency the needed funds to carry

out its legetimate operations, and also deprive government the funds

to meet other pressing needs or demands.



3409. We urged, Management to ensure that the beneficiaries,

refund the amount wrongfully received, failing which, the

authorizing and approving officers should be made to pay.

3410. Subsequently, the current accountant, Mr. Kwaku Agyei

Larbi, should control the disbursements of funds and ensure that


due and payable; and any order for disbursements that does not

meet requirements is rejected.

3411. Management responded that, the paying officers have been

queried as to why due process was not followed in making those

payments. Consequently, all the officers involved have been asked

to refund the money immediately or will be set against any

subsequent compensation related allowances to be paid in the first

and second quarter of 2019.

Vehicle and Ownership Documents Not Presented for Audit

Inspection – GH¢127,611.00 3412. Section 33 (1a) of Audit Service Act, 2000 (Act 584) states

“Any person who fails to produce for inspection by the Auditor-

General or otherwise fails to give the Auditor-General access to any

book, record, return or other document relating or relevant to any

account to be audited by the Auditor-General, when so requested by

the Auditor-General commits an offence and is liable on summary

conviction to a fine not less than 500 penalty units or to

imprisonment for a term not exceeding 2 years or to both.”

3413. Five officers did not show up for vehicle and documents

inspection conducted at the GNA’s head office for all staff with

vehicles, who took fuel and maintenance allowance for the period

under review. Details are shown in table 361.



Table 361: Vehicle and Ownership Documents Not Presented for Audit

Inspection

3414. This was as a result of complete disregard for Section 33(1a)

of Act 584.

3415. Since these officers failed to show proof, that fuel and

maintenance (F&M) allowances paid them were due and properly

claimed, any subsequent payments to them constitute a loss to the

Agency.

3416. We recommended that, Management cease any further

payment of fuel and maintenance allowances to them until they have

fully satisfied the Auditor General through the Audit Team that their

claims were legitimate and payments received for the year 2016,

2017 and 2018 were due and proper. Any payments to the contrary

will be charged against the responsible officer(s).

3417. Management said, it has written to the officers involved to

explain their actions and submit their vehicles for inspection.

Recovery of Overpayments - GH¢71,602.00


2004 (L.I. 1802) states “If any expenditure is made in excess of the

amounts actually due, the overpayment shall be recovered

No. Name Level

Jan to

Dec. 2016

Jan to

Aug. 2017

Jul to

Dec. 2017

Jan to

Mar. 2018

Apr to

Jun. 2018

Jul to

Sept.

2018

Oct. to

Dec.

2018

Total

Received

1

Kwaku Osei-

Bonsu

SS.PSL

21

7,452.00

4,968.00

6,732.00

3,528.00

3,528.00

4,095.00

4,095.00

34,398.00

2

Clement

Tweneboah Adams

SS.PSL 18

7,452.00

4,968.00

3,816.00

2,245.50

2,245.50

2,576.25

2,576.25

25,879.50

3

Donatus

Mwinnogme

Siilo

SS.PSL

18

7,452.00

4,968.00

3,816.00

2,245.50

2,245.50 - -

20,727.00

4

Domena

Attafuah

SS.PSL

18

7,452.00

4,968.00

3,816.00

2,245.50

2,245.50

2,576.25

2,576.25

25,879.50

5

Edward

Kwadwo Boahen

SS.PSL 17

7,452.00

4,968.00

3,816.00

2,245.50

2,245.50 - -

20,727.00

TOTAL

37,260.00

24,840.00

21,996.00

12,510.00

12,510.00

9,247.50

9,247.50

127,611.00



immediately and paid into the account from which it was originally

paid and the officer concerned shall report the circumstances

immediately to the head of department or the appropriate authority.”

3419. In December, 2016 the Accountant, Mr. Ibrahim Aryeequaye

on PV No. 345 of 30/12/16, paid five (5) officers twice for the Jan.

to Dec. 2016 fuel allowance due them. The amount over paid totalled

GH¢18,954.00.

3420. In December 2018, the Accountant Ms. Grace Atipaga paid 6

months Fuel and Maintenance allowance vide PV no. 184/18 dated

31/12/18 (VN 218406 of 27/12/18) for 4 months’ arrears of

September to December 2017, resulting in a two months

overpayment of GH¢52,648.00 to thirty-nine (39) staff. Details are

shown in table 362.

Table 362: Recovery of Overpayments

FUEL ALLOWANCE OVERPAID - JANUARY TO DECEMBER, 2016

NO. NAME

FUEL /

MONTH

Tax Paid

(10%) NET AMT.

MAINT.

/MONTH

ALLOWANCE

/MONTH

NO. OF

MONTHS

TOTAL

REFUNDABLE

1 Devine Koblah 540.00

54.00

486.00 - 486.00 7 3,402.00

2 Proper Kuorsoh

180.00

18.00

162.00 -

162.00 12

1,944.00

3 Fati Anafo

180.00

18.00

162.00 -

162.00 12

1,944.00

4 Alice Tettey

540.00

54.00

486.00 -

486.00 12

5,832.00

5

Patrick

Dela Cofie

540.00

54.00

486.00 -

486.00 12

5,832.00

Total

1,980.00

198.00

1,782.00 -

1,782.00 55

18,954.00

FUEL AND MAINTENANCE ALLOWANCE OVERPAID - JULY TO DECEMBER, 2017

NO. NAME

FUEL /

MONTH

Tax Paid

(10%) NET AMT.

MAINT.

/MONTH

ALLOWANCE

/MONTH

NO. OF

MONTHS

TOTAL

REFUNDABLE

1

Rex Francis

Annan

1,080.00

108.00

972.00

150.00

1,122.00 2

2,244.00

2

Ibrahim M.

Aryeequaye

1,080.00

108.00

972.00

150.00

1,122.00 2

2,244.00

3

Samuel Bruce

Nyarko

1,080.00

108.00

972.00

150.00

1,122.00 2

2,244.00

4

Yaa

Oforiwaa Asare-

Peasah

1,080.00

108.00

972.00

150.00

1,122.00 2

2,244.00



5

Domena

Attafuah

540.00

54.00

486.00

150.00

636.00 2

1,272.00

6

George

Benamba

540.00

54.00

486.00

150.00

636.00 2

1,272.00

7 Francis Ameyibor

540.00

54.00

486.00

150.00

636.00 2

1,272.00

8 Edward Nana Asare

540.00

54.00

486.00

150.00

636.00 2

1,272.00

9 Moses Bawa

540.00

54.00

486.00

150.00

636.00 2

1,272.00

10 Joyce Agyemfra

540.00

54.00

486.00

150.00

636.00 2

1,272.00

11 Richard K. Ennin

540.00

54.00

486.00

150.00

636.00 2

1,272.00

12 Alice Tettey

540.00

54.00

486.00

150.00

636.00 2

1,272.00

13

Hannah

Tapang

540.00

54.00

486.00

150.00

636.00 2

1,272.00

14

Samuel

Akapule

540.00

54.00

486.00

150.00

636.00 2

1,272.00

15

Proper

Kuorsoh

540.00

54.00

486.00

150.00

636.00 2

1,272.00

16 Edmund Quaynor

540.00

54.00

486.00

150.00

636.00 2

1,272.00

17 William Dodze Ezah

540.00

54.00

486.00

150.00

636.00 2

1,272.00

18 Ceasar Abagali

540.00

54.00

486.00

150.00

636.00 2

1,272.00

19 Eric Amoh

540.00

54.00

486.00

150.00

636.00 2

1,272.00

20

Linda

Asante-Agyei

540.00

54.00

486.00

150.00

636.00 2

1,272.00

21 Hannah Awadzi

540.00

54.00

486.00

150.00

636.00 2

1,272.00

22 Edward Boahen

540.00

54.00

486.00

150.00

636.00 2

1,272.00

23 Christopher Arko

540.00

54.00

486.00

150.00

636.00 2

1,272.00

24 Robert Anane

540.00

54.00

486.00

150.00

636.00 2

1,272.00

25

Audry

Dekalu

540.00

54.00

486.00

150.00

636.00 2

1,272.00

26 Ghosh Osei

540.00

54.00

486.00

150.00

636.00 2

1,272.00

27

Clement

Adams

540.00

54.00

486.00

150.00

636.00 2

1,272.00

28

Kwaku Osei

Bonsu

540.00

54.00

486.00

150.00

636.00 2

1,272.00

29 Bertha Badu

540.00

54.00

486.00

150.00

636.00 2

1,272.00

30 Emma Doodo

540.00

54.00

486.00

150.00

636.00 2

1,272.00

31

Nana Kwaku

Jehu Appiah

540.00

54.00

486.00

150.00

636.00 2

1,272.00

32 Tony Simpson

540.00

54.00

486.00

150.00

636.00 2

1,272.00

33

Anthony Bells Kafui

Kanyi

540.00

54.00

486.00

150.00

636.00 2

1,272.00



34

Comfort

Fetrie

540.00

54.00

486.00

150.00

636.00 2

1,272.00

35

Mrs.

Hannah Zemp-

Tapang

540.00

54.00

486.00

150.00

636.00 2

1,272.00

36 Dasmani Issifu Laary

540.00

54.00

486.00

150.00

636.00 2

1,272.00

37

Mildred Siabi-

Mensah

540.00

54.00

486.00

150.00

636.00 2

1,272.00

38

Donatus

Siilo

540.00

54.00

486.00

150.00

636.00 2

1,272.00

39

Fati Anafo

(M. Bike)

180.00

18.00

162.00

50.00

212.00 2

424.00

Total

16,740.00

1,674.00

15,066.00

4,050.00

19,116.00 54 52,648.00


3421. Financial indiscipline on the part of the accountant, Ms.

Grace B. Atipaga caused this irregularity.

3422. This is a willful waste of public funds and institutional

resources at the expense of the Agency’s already strained coffers.

3423. We recommended that, the total over paid fuel and

maintenance allowance of GH¢71,602.00 be recovered from the

officers who signed for them, failing which the authorising and

approving Officers as per schedule 1 should pay, and evidence of

full recovery of the amount involved presented to our office for

verification. Details are shown in table 362b.

Table 362b: Schedule 1

Name Position Amount GH¢

Date Paid

Period

Mr. Francis Rex Annan Ag. General Manager 18,954.00

30/12/16

Jan. to Dec. 2016 Fuel Allowance Mr. Ibrahim

Aryeequaye Accountant

Mr. Kwaku Osei Bonsu Ag. General Manager 52,648.00

31/12/18

Sept. to Dec. 2017 F&M Allowance

Ms. Grace Atipaga Accountant

Total 71,602.00

3424. Management stated that, it was unaware of this overpayment

and has called on all the officers involved to refund these claims



immediately or they will be set against any subsequent

compensation related allowances to be paid in the first and second

quarter of 2019.

Un-retirement of Imprest - GH¢20,440.00

3425. Regulation 115 (1c) also directs that an advance payment to

a public officer shall not be made if; any advance is outstanding

against the officer on account of losses, uncleared cheques or

unretired imprest.

3426. Regulation 288(1) states that Imprest shall be retired at the

close of a financial year and any imprest not so retired shall be

adjusted to a personal advance account in the name of the imprest

holder.

3427. Accountable imprest totalling GH¢20,440.00 were not retired

by 10 Regional Managers at the end of 2018. Details are shown in

table 363.

Table 363: Unretired Imprest

DATE

PV

NO. AMOUNT CHEQUE REGION QTR BANK

ACCOUNT

NAME

ACCOUNT

NAME

8/10/2018 119

2,000.00 172839 VOLTA 2 GCB - HO MAIN

GHANA

NEWS AGENCY 501113002156

8/10/2018 118

1,000.00 172838

TEMA

OFFICE 2

ADB -

ADABRAKA

SAMUEL OSEI

FREMPONG 1070025830101

8/10/2018 104

1,940.00 172824 ASHANTI REGION 2

STANBIC -

HARPER ROAD

ELIZABETH

KANKAM BOADI 9040000255984

8/10/2018 103

2,000.00 172823 EASTERN 2

GCB -

KOFORIDUA CENTRAL

GHANA

NEWS AGENCY 2241180000793

8/10/2018 102

2,000.00 172822 NORTHERN 2

GCB - DIAMOND

HOUSE

CAESAR

ABAGALI 1011150003085

8/10/2018 100

2,000.00 172820

UPPER

WEST 2

NIB - KUMASI

CENTRAL

ISSIFU

LAARY 2019026038001

8/10/2018 99

2,000.00 172819

BRONG

AHAFO 2

NIB –

KUMASI

NANA OSEI

KYERETWIE

8/10/2018 98

2,000.00 172818 WESTERN 2

CAPE COAST

MAIN

JUSTINA

PAAGA 3011010052030



8/10/2018 97

2,000.00 172817 CENTRAL 2

CAPE COAST

MAIN

ALICE

TETTEY 3011010035390

14/6/18 64

1,000.00 CASH VOLTA 1

A B KAFUI

KAMI

14/6/18 64

1,000.00 CASH EASTERN 1 EDMUND QUAYNON

14/6/18 64

1,000.00 CASH ASHANTI 1

ELIZABETH KANKAM

BOADI

14/6/18 64

500.00 CASH GREATER ACCRA 1

YAA O.

ASARE-PEASAH

TOTAL

20,440.00

3428. The previous accountant’s inability to demand the

expenditure documents from the Regional Managers before

reimbursement caused the anomaly and this could lead to

misappropriation of the funds.

3429. We recommended that, the unretired imprest of

GH¢20,440.00 be fully accounted for failing which, the amounts

shall be adjusted to the personal advance account of the imprest

holders.

3430. Management stated that it has tasked the Head of Accounts

to, as a matter of urgency liaise with all the Regional Managers

involved to ensure that all returns relating to this accountable

imprest are duly submitted.

Cash on Hand Not Fully Accounted For – GH¢12,011.31

3431. Section 7(1)(a) of Public Financial Management Act, 2016 (Act

921) states “A Principal Spending Officer of a covered entity shall


covered entity”.



3432. We noted that a total amount of GH¢12,011.31 could not be

accounted for by the Accountant Ms. Grace B. Atipaga, when called

upon to do so. The first part of the shortage represents,

GH¢4,719.01 being the difference between the audited amount of

GH¢318,056.36 and the amount handed over of GH¢313,337.35.

The remaining GH¢7,292.30 was monies purportedly “borrowed” by

Management from 2018 employee compensation related allowances.

The breakdown is shown in table 364.

Table 364: Cash on Hand Not Fully Accounted For

Name

Cash from 2018 unexpended balance

Less 2018 compensation related payments

Equal amount “borrowed” for 2018 payments

Less documents received for 2018 payments

cash unaccounted

Grace B. Atipaga 48,622.30 - 48,622.30 41,330.00 7,292.30

3433. The lack of adequate controls over cash management caused

this irregularity.

3434. In the absence of proper accountability, funds meant for the

day to day activities of the institution could be misdirected towards

unrelated expenditure as far as the activities of the Agency is

concerned.

3435. We recommended that, the Principal Spending Officer Mr.

Albert Kofi Owusu, should ensure that the monies are properly

accounted for, failing which, the amount of GH¢12,011.31 should

be retrieved from Ms. Grace B. Atipaga and evidence of refund be

made for our verification.

Unremitted Taxes Due GRA – GH¢9,318.70 3436. Section 84 (2) of the Internal Revenue Service Act 2000, Act

592 as amended states “withholding tax should be deducted by

Government Departments from the payments for goods and services



to suppliers and subsequently paid to the Ghana Revenue Authority

not later than the 14th day of the month following that which the

payment was made.”

3437. We noted that an amount of GH¢6,851.20 withheld from

payments of allowances and purchases of goods and services was

not remitted whiles GH¢2,467.50 was not withheld at all, bringing

the total to GH¢9,318.70 yet to be remitted by the Agency to the

Ghana Revenue Authority. Details are shown in table 365.



Table 365: Unremitted Tax DATE PV

NO.

PV

AMOUNT

Cheque

No. DESCRIPTION PAYEE

TAX

WITHHELD NOT PAID

TAX

NOT WITHHELD

AMOUNT

DUE GRA (GH¢)

IRREGULA

RITY

RECOMMEN-

DATION

23/3/16 106 2,000.00 HR Sub-

committee allowance paid

at meeting

Nii Addokwei Moffat & 5

others

- 200.00 200.00 10% tax not

deducted

Pay ghc200

tax

04/07/16 118 240.00 10% tax on

allowance paid interview

panel members

240.00 - 240.00 Deducted

but not remitted

pay and

present tax receipt

22/11/16 315 1,200.00 Allowance paid

interview panel on sitting

Mohammed N. Issahaq

- 120.00 120.00 10% Tax not

withheld

PAY TAX and present

receipt

25/10/16 320 4,200.00 Board

Allowance - Oct. meeting

Wilberforce Dzisah

420.00 - 420.00 10% tax

withheld not paid

PAY TAX and

present receipt

30/12/16 340 2,175.00 Night Duty allowance paid

Gideon

Charway & 3 others

- 217.50 217.50 10% tax not

deducted

PAY TAX and

present receipt

28/12/17 226 4,106.00 CASH Housing

Subsidy

Principal

Accountant

821.20 - 821.20 GRA not remitted

Provide GRA payment

10/10/18 113/

18

4,450.00 172834 Board members

Allowance

Board

Members

3,560.00 - 3,560.00 GRA was

not charged

to members

Members

should

refund GRA

payment

10/10/18 107/

106

5,250.00 172827

GNA/ MAIN Restructure committee

- 525.00 525.00 No GRA

calculated

Henry Oduro,

Grace, Atipaga, Osei

Bonsu and Daniel Ayerh

should pay to GRA



10/10/18 106 5,250.00 CASH Committee members

Restructure committee

- 525.00 525.00

No GRA

calculated

Provide minutes and

GRA payment

13/06/18 70/

18

5,400.00 173185

Monitoring

Team

Allowances to

Upper West monitoring by

Yaa Peasah and Co was not

charged with

GRA

540.00 -

540.00

GRA not

remitted

Amount

should be surcharged to

members and

paid to GRA

22/06/18 85/18 4,400.00 172803

Yaa Peasah

and 6 others

Payment to

Board Members for

February sitting without GRA

- 440.00 440.00 Deducted

GRA but not

remitted NO Memo, NO signatures

for payment

Amount should be

surcharged to members and

paid to GRA and query

why no memo

raised

25/06/18 88/18 3,900.00 172806

Yaa Peasah and 7 others

Payment to

Board Members for February

sitting without GRA

390.00 - 390.00 Deducted but not

remitted

Amount should be

surcharged to members and paid to GRA

inspect minutes for

the month

09/04/18 27/18 4,400.00 173128

Yaa Peasah

and 6 others

Payment for Board

allowance

- 440.00 440.00 NO Deduction for GRA

Inspect GRA payment and minutes for

that month

(APRIL)

27/12/17 186 4,400.00 CASH

-

Directors

Remuneration for Dec. 2017.

Olivia Kwapong and 7 others

880.00 - 880.00 GRA was

not remitted

Total 90,271.00

6,851.20 2,467.50 9,318.70



3438. We attributed the above irregularity to non-compliance with

the IRS Act as stipulated above by Management which denied the

state the use of GH¢9,318.70 as tax revenue.

3439. We recommended that, Management should pay the taxes

due government to Ghana Revenue Authority (GRA), failing which,

the total of GH¢9,318.70 be recovered from the Accountant.

3440. Management said, it has ordered for all taxes withheld not

remitted to be paid GRA immediately, and that steps are being taken

to reach other clients and staff whose taxes were not withheld to

retrieve them.

Unclaimed Sitting Allowances Not Returned to Chest –

GH¢10,200.00 3441. Regulation 41 (1) of Financial Administration Regulations,

2004 (L.I. 1802) states “A head of department shall submit

statement of un-discharged commitments, ten working days after

the end of the financial year to the Minister, with copies to the

Controller and Accountant-General.”

3442. We noted during our examination of Payment Vouchers that

sitting allowances totalling GH¢10,200.00 that were not signed for

or received by the beneficiaries due to absence, were not returned to

chest. Details are shown in table 366.

Table 366: Unclaimed Allowances

Date PV No.

PV Amount

GH¢

Chq No.

Descrip- tion

Payee Uncla-imed GH¢

Irregularity Recommen-

dation

30/12 /16

347 34,500.00

Casual

staff allowance

Hawa Batie & 11 others

9,000.00

Hawa Batie, Samuel Atinga and Kofi Apiya

did not sign to receive; However, Isaac Sasu

signed for Samuel and

refund payment of

GHC9,000 or produce prove of payment



Kofi but

without authority note

19/12/ 2017

175 400.00

Cash

Directors Remune-

ration (Kofi Boakye unreceipted)

ag. Private

Secretary direct remune ration

400.00

Unsigned claim

Cash to be

paid to chest if its unclaimed

27/12/ 2017

??? 400.00

Cash

Directors Remun-eration (Kofi Boakye

unreceipted)

ag. Private Secretary direct

remuneration

400.00

Unsigned claim

Cash to be paid to chest if its

unclaimed

27/12/ 2017

186 4,400.00

cash -

Directors Remuneration for Dec. 2017. Olivia

Kwapong and 7 others

400.00

GRA was not

remitted and Kwame Nyamekye never

signed for his allowance

Ensure unclaimed allowance GH¢400.00

is paid to chest

TOTAL 39,700.00 10,200.00

3443. The accountant’s complete disregard for the above regulation

caused the anomaly.

3444. Monies not signed for if not returned to chest or paid to the

bank account could lead to misuse of same, depriving the Agency

the needed resources to undertake its activities.

3445. We recommended that, Management should ensure that

officer(s) in charge show proof of payment of GH¢10,200.00 to chest

or same be recovered from them.


Unearned Salaries - GH¢7,650.80 3447. Regulation 297 of L.I. 1802 enjoins a head of department to

immediately stop the payment of salary to a public servant, who



either resigned or retired, dies or absents himself from duty without


administration regulations of the establishment.

3448. We noted that four separated staff who retired in 2018

enjoyed unearned salaries totalling GH¢7,650.80. Even though

Management made efforts and informed the Controller and

Accountant-General Department (C & A-G Dept.) to delete their

names from the payroll, it took a month in each case for the deletion

to be affected, resulting in the said unearned salaries. Details are

shown in table 367.


3449. The failure of C&A-G Dept. to promptly respond to deletion

request caused the infraction.

3450. Failure to promptly delete names from the payroll by C&A-G

Department could result in the risk of losing money to separated

staff.

No. Name Designation Date Remark JAN MAR JUL AUG OCT

TOTAL

GH¢

1

Mr. Francis

R. Annan

Director,

Admin. 1/1/2018 Retirement 514.05

514.05

2

Mrs. Yaa O.

Asare-Peasah

Deputy, Dir.

Editorial 1/7/2018 Retirement

71.25 5,342.18

5,413.43

4

Mr. Solomon

Owusu-Bonah

Technical

Coordinator 11/3/2018 Retirement

987.00

987.00

5

Mrs. Hannah

K. Tufour

Chief

Admin. Officer

7/10/2016 Retirement

736.32 736.32

TOTAL 514.05 2684.18 71.25 5342.18 736.32 7,650.80



3451. We recommended that Management recover the total

unearned salary of GH¢9,347.98 from the beneficiaries and pay

same to Government chest.

3452. Management said it has taken note of our recommendation

and will pursue the matter to its logical conclusion.

Salary Advance not fully recovered - GH¢5,227.56 3453. Regulation 112 of Financial Administration Regulations,

2004 L.I. 1802 states “Advances may be recovered by any of the

following methods: (a) deduction from payments due from

Government to the borrower; (b) direct payment to the Government

by the borrower or the borrower’s proxy; (c) recovery from the

borrower’s estate; or (d) any other means which may appear to be

feasible.”

3454. Our review of Advances ledger disclosed that salary advances

granted to staff were not fully recovered from the beneficiaries. Some

have defaulted in payments ranging from 6 months to 3 or more

years. A total of GH¢18,697.51 was granted to staff against their

salaries but only GH¢13,469.95 was recovered leaving a difference

of GH¢5,227.56 at the end of 2018. Summary of the advances

position is shown in table 368.

Table 368: Salary Advance Defaulted

Year

Balance

b/f

GH¢

Salaries

Advanced

to Staff

GH¢

Total Salary

Advanced

GH¢

Recovered

GH¢

Carried

Forward

GH¢

2016 8,247.51 4,450.00 12,697.51 5,084.95 7,612.56

2017 7,612.56 6,000.00 13,612.56 7,240.00 6,372.56

2018 6,372.56 – 6,372.56 1,145.00 5,227.56

Total 8,247.51 10,450.00 18,697.51 13,469.95 5,227.56



3455. This was mainly due to the failure of C&A-G Dept. to effect

deductions and Management’s lack of commitment to ensure full

recovery of the unpaid advances due from staff.

3456. Failure to recover salary advances made to staff deprives

others the opportunity to benefit in future.

3457. We recommended that Management should exercise the

options granted by L.I 1802 to retrieve from defaulting staff all salary

advances granted.

3458. Management took note of our recommendation for

compliance.

Retired Officers in Official Bungalows

3459. Section 52 (1) of Public Financial Management Act, 2016 (Act

921) states “A Principal Spending Officer of a covered entity, state-





3460. Mr. Mohammed N. Issahaq and Patrick Firempong of Accra

and Kumasi respectively, did not vacate their official residence after

retirement. The two have denied the Agency use of these properties

without any compensation or rent payments. Details shown in table

369.



Table 369: Retired Officers in Official Bungalows

Occupants Date Retired Property Address Years of

Occupancy

Mr. Mohammed

N. Issahaq

21/11/16 Flat No. B.34,

Sakumono Estate,

Accra.

2 years 6

months

Patrick

Firempong

11/10/14 Flat No. F.19,

Chirapatre Estate,

Kumasi.

4 years 7

months

3461. Management’s inability to properly manage its residential

properties could be attributed to this anomaly.

3462. The bungalows are not serving their intended purpose due to

the continuous use by these retirees. The continuous payment of

rent allowance to those intended to occupy the bungalows is an

avoidable cost to the Agency and ultimately government.

3463. We recommended that Management take possession of these

bungalows for their rightful beneficiaries without further delays.

Additionally, Management should ensure the repairs and

maintenance cost to these properties are charged against Mr.

Issahaq and Mr. Firempong or retrieve from them for the periods of

occupancy at the prevailing commercial rate, whichever is

practicable.

Failure to Register 5 Parcels of Land

3464. Section 52 of Public Financial Management Act, 2016 (Act

921) states “A principal Spending Officer of a covered entity, state




custody and management of the assets…’’



3465. Lands allocated to the Agency for business were found to be

without title deeds. Details shown in table 370.

Table 370: Failure to Register 5 Parcels of Land

No. Location Size (acres)

1 Ministries – Accra 4

2 Tema Not specified

3 Kukuo – Tamale Not specified

4 Tanzui – Bolgatanga Not specified

5 Ho 2.3 (Estate Manager’s estimate) 3466. The lack of commitment on the part of Management to secure

lands and landed properties of the Agency caused this anomaly.

3467. The Agency does not have a right of ownership to the lands,

hence at risk of encroachment and loss of rent revenue as GPRTU

and others may default in payment should they realise ownership

could be in contention.

3468. We advised the General Manager, to start the registration

process to secure them from possible encroachment and ownership

litigation.

3469. Management has taken note of our recommendation for

compliance.

NATIONAL FILM AND TELEVISION INSTITUTE

Introduction


Film and Television Institute (NAFTI) for the year ended 31 December

2018.



Operational results

3471. The Institute ended the year 2018 with a surplus of

GH¢125,680 compared with a surplus of GH¢972,080 recorded in

2017 indicating an 87.1% decrease. Details of the performance

indicators of the Institute’s operational results are shown in table

371.


Income

2018

GH¢

2017

GH¢

%

Change

Government Subvention Received 4,220,452 4,003,223 5.4

Other Income 2,814,094 2,459,482 14.4

Deferred Income 499,665 99,569 401.8

Total Income 7,534,211 6,562,274 14.8

Expenditure




Surplus / (Deficit) 125,680 972,080 (87.1)

3472. Total Income increased by 14.8% from GH¢6,562,274 in 2017

to GH¢7,534,211 in 2018. The increase was due to increases in all

income lines.

Total Expenditure also rose from GH¢5,590,194 in 2017 to

GH¢7,408,531 in 2018, showing a 32.5% increment. This was

primarily due to a 98.8% increase in Goods and Services from

GH¢1,612,571 in 2017 to GH¢3,205,579 in 2018.

Financial Position 3473. The financial position of the Institute is presented in table

372.



Table 372: Financial position as 31 December 2018

Item

2018

GH¢

2017

GH¢

%

Change


Current Assets 2,029,625 1,397,268 45.3


Net Asset 3,396,573 2,160,310 57.2


3474. Non- Current Assets went up from GH¢1,020,945 in 2016 to

GH¢2,122,146 in 2017. The increment was as a result of a 159.7%

increase in Fixed Asset from GH¢689,558 in 2017 to GH¢1,790,759

in 2018.

3475. Current Assets also increased from GH¢1,397,268 in 2017 to

GH¢2,029,625 in 2018 representing a 45.3% rise. This was mainly

due to a 21.2% rise in Debtors and prepayment from GH¢864,328

in 2017 to GH¢1,047,802 in 2018.


GH¢257,903 in 2017 to GH¢755,198 in 2018. The rise was due to

an increase in Sundry Creditors.

3477. The Institute’s liquidity position as measured by current ratio

stood at 2.7:1 in 2018 (2017: 5.4:1) indicating the Institute’s ability

to meet its short-term liabilities as and when they fall due.



MINISTRY OF WORKS AND HOUSING

ARCHITECTURAL AND ENGINEERING SERVICES

LIMITED (AESL)

Introduction

3478. This report relates to the audited financial statements of the

Architectural and Engineering Services Limited for the year ended

31 December 2018.

Operational results

3479. The company’s operations for the year under review recorded

a loss of GH¢6,516,600 as against a loss of GH¢5,080,575 in 2017

representing an increase of 28.3%. Presented in table 373 are the

performance indicators for the Project.

Table 373: Revenue and Expenditure Statement for 2018

2018 GH¢

2017 GH¢

% Change

Revenue 9,903,657 9,109,857 8.7

Other Income 207,867 226,597 (8.3)

Total Revenue 10,111,524 9,336,454 8.3

Expenditure

General, Selling and Admin Expenses

13,691,755 13,859,808 (1.2)


Profit Before Tax (3,580,231) (4,523,354) (20.9)

Taxation (2,936,369) (557,221) 427.0

Loss for the year (6,516,600) (5,080,575) 28.3

3480. Total Revenue of the company appreciated by 8.3% from

GH¢9,336,454 in 2017 to GH¢10,111,524 in 2018. The marginal

rise in the Total Revenue was largely due to increase in fee income

during the years.



3481. Total Expenditure marginally declined by 1.2% from

GH¢13,859,808 in 2017 to GH¢13,691,755 in 2018. The decline was

primarily due to reduction in Electricity and Water costs from

GH¢514,696 in 2017 to GH¢343,079 in the current year.

Financial position

Table 374 is a summary of the Company’s financial position as at

31 December 2018


Item

2018

GH¢

2017

GH¢

%

Change


Current Assets 19,542,953 23,824,246 (18.0)

Non-Current Liabilities 1,299,896 - 100.00



3482. The Company’s Non-Current Assets dropped by 3.0% or

GH¢298,926 from GH¢9,822,725 in 2017 to GH¢9,523,799 in 2018.

The drop was due to depreciation charge for 2018 amounting to

GH¢310,997.

3483. Current Assets went down by 18.0% from GH¢23,824,246 to

GH¢19,542,953 in 2017 and 2018 respectively. The fall was

principally due to GH¢3,752,985 decrease in Accounts Receivable &

Prepayments from GH¢21,912,515 in 2017 to GH¢18,159,530 in

2018.

3484. Current Liabilities increased by 3.0% from GH¢21,526,926 in

2017 to GH¢22,163,411 in 2018. The increase was due to

GH¢898,103 rise in Accounts Payable & Accruals.



3485. Current Ratio in 2017 of (1.1:1) deteriorated in the current

year showing 0.9:1. This shows the Company’s inability to meet its

short-term financial obligations as and when they fall due.

MANAGEMENT ISSUES

Inability to Collect Debts owed to AESL- GH¢45,776,061 3486. Section 91 (1&2) of the Public Financial Management Act

2016, Act 921 specifies that “The Board of Directors of a public

corporation governed by this Act shall ensure the efficient

management of the financial resources of the public corporation

including the collection and receipt of moneys due to that public

corporation.

3487. We noted from our analysis of the debtors reports as at 31

December 2018 that a total amount of GH¢45,776,061 due AESL

were not collected by the Board.

3488. We noted that Ministry of Education (MOE) owed

GH¢19,426,308 out of the total debt. Analysis of the movement of

debt over the 2 years is shown in table 375.

Table 375: Indebtedness of project clients and MOE to AESL

Item 2018

GH¢

2017

GH¢

Change

GH¢

%

Change

Projects Client 26,349,753 27,157,245 (807,492) (3.0)

Ministry of Education 19,426,308 19,160,316 265,992 1.4

Total 45,776,061 46,317,561 (541,500) (1.2)

3489. Management find it difficult to collect the debts because AESL

in the past was executing Ministry of Education projects without

Consultancy Services Agreements. Also, lack of pragmatic efforts by



management of AESL to follow up on payments after the projects

were executed led to this state of affairs.

3490. This resulted in the accumulated debts over the years and

has worsened the financial position of the company.

3491. We recommended that Management should continue to

engage with stakeholders for the outstanding debts to be collected.

3492. Management replied that the major challenge has been the

recovery of debts owed by the Ministry of Education since past jobs

executed by the company for the Ministry were not covered by

consultancy service agreement. The company shall continue to

engage the Ministry of Education since award letters to contractors

indicating AESL as consultants are available.

Inability to obtain Land Title to AESL Lands

3493. Regulation 272. (1) and (2) of the Financial Administrative

Regulations 2004 identified title deeds as key documents which

might be required to be produced in court to establish a claim or

settle a dispute.

3494. We noted that, legal titles to all lands and buildings handed

over to AESL from the Public Works Department (PWD) by the

government have not been transferred to AESL. Lands belonging to

AESL at Weija, McCarthy Hill and Ofankor have been taken over by

encroachers, Weija Gbawe Municipal Assembly, and private

developers.

3495. Inability of Government to transfer legal titles to the land and

buildings to AESL accounted for these anomalies leading to private

developers encroaching on them.



3496. We entreated Management to intensify steps by ensuring that

legal titles to the Lands are transfered to AESL, as these formed parts

of the security used in renewing the overdraft facility AESL has with

National Investment Bank Limited.

3497. Management responded that it is following up on the transfer

of legal titles to lands of AESL at the Lands Commission. Part of the

land has even been encroached by the Ga South Municipal Assembly

after realizing that the titles to the Weija lands are in the name of

Public Works Department (PWC). There has been a number of visits

to Land Commission to resolve the issue. The Land Commission has

decided to organise stakeholders meeting to discuss the issue.

Failure to pay statutory deductions to Ghana Revenue authority

and SSNIT-GH¢13,535,122 3498. Contrary to Section 3 (3) of the National Pensions Act, 2008

(Act 766), Section 52 (4) and (5) of the Value Added Tax 2013. Act

870 and Paragraph 50 (1&2) of the seventh schedule of the Income

Tax Act 2015, (Act 896), we noted that a total amount of

GH¢13,535,122 due Ghana Revenue Authority (GRA) and Social

Security and National Insurance Trust (SSNIT) was not remitted as

at 31 December 2018. Detail of the outstanding is shown in table

376.

Table 376: Failure to pay statutory seduction

Item GH¢

PAYE 3,662,283

VAT 6,412,585

SSNIT 3,460,254

Total 13,535,122

3499. The inability of Government Agencies to pay their outstanding

debts to AESL accounted for the failure.



3500. Debts owed GRA and SSNIT continue to accumulate and

attract penalties.

3501. We advised Management to take the necessary steps to meet

these statutory obligations to avert further penalties from GRA and

SSNIT.

3502. Management reassured the audit team that they will continue

to engage government departments and agencies for the payment of

outstanding consultancy fees while intensifying its effort for the

acquisition of new jobs.

Inadequate revenue generation resulting in losses

3503. Architectural Engineering Services Limited (AESL) is a

company owned by the government and has offices in ten regions of

Ghana. The government, who is also a shareholder is underutilising

the capacity of the company.

3504. We noted that the whole of 2017, the company was awarded

only two government contracts (projects) even though the company

has the capacity, with its 197 professional staff to execute projects.

Details of the company’s performance indicators for the past 3 years

are shown in the table 377.

Table 377: Inadequate revenue generation resulting in losses

Item 2017 2016 2015

Total Revenue (GH¢) 9,336,454 11,781,885 12,410,849

Staff Cost (GH¢) 7,478,856 7,595,314 6,825,839

Percentage of Staff Cost To

Revenue

80.10 64.47 55.00

Profit/Loss Before Tax (GH¢) (4,523,354) (2,480,455) 1,993,301

3505. The company’s performance deteriorates year on year.



3506. We recommended that Management should engage relevant

government agencies in order to render more project services to

government.

3507. Management responded that currently their valuation

services are mainly carried out for the private sector. Proposals to

private sector organisations for jobs for other services rendered by

AESL are also being pursued. The difficulty is sometimes the

acquisition of Tax and SSNIT Clearance Certificates due to our

inability to fully pay statutory obligations owed to these Institutions.

Negotiations are being held with the Institutions to agree on a

payment plan which would enable us to obtain clearance certificates

to support proposals to private organisation for consideration for

projects.

Judgement passed against AESL for negligence of duty

GH¢947,428

3508. Section 1 of the Armed Forces Revolutionary Council Decree,

1979 (AFRCD 58) states “Any person who is responsible for the issue

of any certificate on the basis of which any money has been paid out

of public funds to or for the benefit of any contractor or other person

in respect of any government contract, shall be jointly and severally

liable with that contractor or other person for the refund of any

money so paid, to the Government, statutory corporation or other

agency of Government by or on behalf of which the money was paid

or to any other authority directed in writing by the Government; (ii)

if such person issued the certificate for the payment recklessly,

whether the work had been done or not or the goods supplied or not

or whether the money was otherwise due under the contract in

question or not; or (iii) if in the issue of the certificate the person was

grossly negligent.”



3509. The Builsa North District Assembly with its capital at

Sandema in the Upper East region contracted Messrs. Bisco Tesco

Enterprise of Bolgatanga to put up a three (3) storey office complex

at Sandema to provide office accommodation for its officers. The

contract was awarded on 27 May 2010 in the sum of

GH¢947,428.63. Architectural Engineering Services Limited (AESL)

was appointed the consultant to the contract.

3510. We noted that, AESL in the course of its duty on the project

raised a certificate in favour of the contractor without recourse to

any work done by the contractor. AESL was subsequently sued in

the High Court in Bolgatanga for acting fraudulently.

3511. The court ordered AESL to refund the consultancy fees of

GH¢14,232 received by them together with interest from 15

December 2011 till date of the judgement. The court further ordered

that an over payment of GH¢99,818.06 made to the contractor by

then Regional Director, Mr. Joseph Kwadwo Boamah, should also be

refunded with interest.

3512. We advised that the Regional Director who signed the

certificates should be made to pay the judgement debt.

3513. Management in their response agreed that the company pays

the judgment debt as the staff involved worked as a representative

of the Company. Meanwhile, the company would pursue the

contractor to refund the money.

Disposal of motor vehicle without the approval of the Minister

3514. Section 52 (8) of the public Financial Management Act, 2016

Act 921) states that the Minister may, by legislative Instrument,

delegates powers of deletion and disposal of government assets to



the Principal Spending Officer of a covered entity, state-owned

enterprise or public corporation”

3515. The Architectural Engineering Services Limited (AESL)

Accounting Policy requires the Board of Directors (BOD) to approve

disposal of assets and that no assets should be disposed of without

a written authorisation of the BOD.

3516. We noted that the Company disposed of three vehicles in

2017; only one was approved by the BOD but the two without the

Board’s approval and no authorisation from the Minister for the

disposal of the three vehicles.

3517. Major decisions that need Board’s approval could be

undermined.

3518. We advised Management that disposal of fixed assets should

be authorised by the Board in line with the Company’s procedures

and in accordance with the public Financial Management Act.

3519. Management replied that there has been no Board in place

since January 2017 however, notice has been taken of the needed

approval by the Minister and would be complied with.

STATE HOUSING COMPANY LTD

Introduction 3520. This report relates to the audited accounts of the State

Housing Company Ltd for the years ended 31 December, 2016 and

2017.

Operational Results

3521. The Company’s operations for the period ended with a profit

of GH¢9,607,276 in 2017, which is an increase of 62.3% over the



2016 figure of GH¢5,917,692. A summary of its performance

indicators for 2017 are shown in table 378.


Income

2017

GH¢

2016

GH¢

%

Change

Turnover 5,861,206 7,392,277 (20.7)

Cost of Production 3,445,086 4,884,302 (29.5)

Gross Profit 2,416,120 2,507,975 (3.7)

Operating income 20,863,812 18,080,602 15.4

General Admin. & Selling Exp. 14,156,020 14,839,660 (4.6)

Net Operating Profit 9,123,912 5,748,917 58.7

Other Income 483,364 168,775 186.4

Surplus 9,607,276 5,917,692 62.3

3522. Turnover reduced significantly by 20.7% from GH¢7,392,277

in 2016 to GH¢5,861,206 in 2017. This was due to reduction in the

sale of its core activity.

3523. The cost of production also reduced by 29.5% or

GH¢1,439,216 over the value recorded in 2016. This decrease was

caused by a 29.3% or GH¢1,397,308 in construction cost which

dropped from GH¢4,768,748 in 2016 to GH¢3,371,440 in 2017.

3524. Gross profit showed a slight drop as it decreased by 3.7%

from GH¢2,507,975 in 2016 to GH¢2,416,120 in 2017.

3525. There was a decrease in General Administration and Selling

expenses by 4.6% as it declined to GH¢14,156,020 in 2017 from

GH¢14,839,660 in 2016. A 69.0% or GH¢1,298,971 drop in general

expenses largely contributed to the fall.

3526. The Net operating profit of the Company improved

significantly by 58.7% to GH¢9,123,912 in 2017 as compared to

GH¢5,748,917 in 2016. This was largely caused by a 15.4% increase



in operating income and a 4.6% reduction in General Administration

and selling expenses.

Financial Position

3527. The financial position of the Company as at 31 December,



2017

GH¢

2016

GH¢

%

Change


Current Assets 40,690,643 30,997,090 31.3


Net Asset 28,218,429 18,611,153 51.6


3528. Non-Current Assets increased by 50.7% from GH¢6,937,877

in 2016 to GH¢10,453,157 in 2017. The rise was as a result of a

significant acquisition of land at a value of GH¢2,229,167 during the

year.

3529. Current Assets also improved by 31.3% from

GH¢30,997,090 in 2016 to GH¢40,690,643 in 2017. Bank and cash

balances accounted generally for this rise as it increased by 150.8%

or GH¢5,790,830.

3530. Current liabilities increased by 18.6% as it moved from

GH¢19,323,814 in 2016 to GH¢22,925,371 in 2017. This resulted

mainly from a 94.6% or GH¢2,824,623 rise in Taxes.

3531. A better liquidity position was recorded at the end of the year

as indicated by a current ratio of 1.8:1 (2016: 1.6:1) implying that,

the Company would be able to settle its short-term debts within one

year.



MANAGEMENT ISSUES

Head Office

Non-Establishment of an Audit Committee

3532. Section 86 (1) of the Public Financial Management (PFM) Act

2016 (Act 921) state that there is established by this Act, an Audit

Committee that shall serve one particular covered entity or any other

covered entities in a sector. Section 88 (la) of PFM Act 921 stipulates

that an Audit Committee shall ensure that the head of a covered

entity, to which the Audit Committee relates, pursues the

implementation of any recommendation contained in:

i. an internal audit report;

ii. Parliament's decision on the Auditor-General's report;

iii. Auditor-General's Management Letter; and the report of

an internal monitoring unit in the covered entity

concerned particularly, in relation to financial matters

raised.

3533. We noted that, SHC has been operating without an Audit

Committee since inception. The government is yet to establish a

governing board for the Company which shall oversee the setting up

of and functioning of the Audit Committee.

3534. The absence of an Audit Committee is a breach of good

corporate governance and has denied the company the benefit of its

oversight role as stated above. For instance, the work of the internal

audit has been limited to vetting of receipts and payments and

reporting on financial results instead of monitoring and ensuring

compliance of internal controls procedures that help mitigate risk.

Findings and recommendations made in audit reports may also not

be implemented timely.



3535. We recommended to Management to pursue the formation of

the Board and subsequent establishment of the Audit Committee,

as mandated by Act 921 to oversee the implementation of the

recommendations made in audit reports and to oversee the work of

the internal audit department.

3536. Management responded that plans are far advanced to set up

an Audit Committee in 2019.

Outmoded Data Flow Accounting Software

3537. Section 90 of the Public Financial Management Act states

that. "The governing body of a public corporation or state-owned

enterprise shall establish and maintain; a) policies, b) procedures, c)

risk management and internal control systems, and d) governance

and management practices, to ensure that that public corporation

or state-owned enterprise manages its resources prudently and

operates efficiently in accordance with the objectives for which the

public corporation or state-owned enterprise was established.

3538. Our review of the Accounting Software (Data flow)

implemented by SHC disclosed that it did not support current

accounting applications and is not flexible for modifications. The

system is incapable of producing and transferring data and

information in soft copies and producing financial reports for

management decision making.

3539. We also noted that only one officer fully understands the

system and is able to manoeuvre through it.

3540. The accounting software (Data flow) used by SHC is outmoded

and does not have the functionality to support current demands.



3541. Ground rent payments from estate owners which are in

arrears cannot be tracked due to the poor functioning of the

software.

3542. This archaic system is neither user friendly nor fit for purpose

as it cannot analyse and provide timely management reports for

quick decision making. There is also the possibility of abuse as only

one officer is fully able to work thoroughly and effectively with the

system.

3543. We recommended to Management to take immediate steps to

change this system for a modern one that can provide it with all its

reporting requirements and has the flexibility to transfer

data/information in soft copies and that can produce automated

financial reports for Management decision making.

3544. Management said it recognises the deficiency noted in the

Management letter and therefore, had budgeted for a new

Accounting Software in the 2019 accounting year.

Inadequate Systems to Ensure Collection of Ground Rents

3545. Section 91(1 &2) of the PFM Act 2016 (Act 921), states "The

Board of Directors of a public corporation governed by this Act shall

ensure the efficient management of the financial resources of the

public corporation including the collection and receipt of moneys


3546. Our audit disclosed that there are no systems in place to

ensure continuous, timely, early and complete collection of ground

rent from estate owners.

3547. The company’s liquidity would be reduced and therefore, not

able to take full advantage of profitable investments for expansion



as its sources of income are not many and thus reduced the cash

flow potential of the company to raise the needed fund for projects

that might yield significant revenue to the company.

3548. We recommended to Management to establish appropriate

systems that ensure prompt collections of ground rent from clients.

3549. Management said that it had planned to engage its bankers

to create a payment platform for all lessees in 2019. According to

Management, the non-payment of ground rent by some lessees is a

matter of inconvenience by coming all the way to pay a yearly fee of

GH¢200. Lastly, SMS billings and notification would also be

deployed in the course of the year.

Non-Adherence to Procurement Procedures-Solar Generating

Unit purchased GH¢1.3million

3550. Section 20 (I) of the Public Procurement (Amendment) Act

2016 stipulated that the procurement entity shall request for

quotations from as many suppliers or contractors as practicable, but

shall compare quotations from at least three different sources that

should not be related in terms of ownership, shareholding or

directorship and the principles of conflict of interest shall apply

between the procurement entities and their members and the

different price quotation sources.

3551. Section 40 of Act 663 as amended also requires that a

procurement entity may engage in single-source procurement under

section 41 with the approval of the Board under specific

circumstances.

3552. Management procured a solar generating unit totalling

GH¢1,297,154 without following the due procedures stipulated in

the above quoted Act. There were no source documents such as



quotations from different suppliers or Public Procurement Authority

(PPA) authorisation for sole sourcing to corroborate the particular

procurement method selected. Details of these transactions are

shown in table 380.

Table 380: Non-Adherence to Procurement Procedures-Solar Generating

Year Detail Amount

GH¢

2017 Solar generating unit 1,054,565

2016 Solar generating unit 242,589

Total 1,297,154

3553. Management had not developed a procurement manual to

regulate its procurement process even though it is mandated by the

Public Procurement Authority to develop a commercial practice

manual that best suits their operation for considerations.

3554. Value for money may not have been obtained in this

transaction as it lacked competition and transparency.

3555. Management should endeavour to develop the commercial

procedures manual and should adhere to the Public Procurement

Act in all procurement activities.

3556. Management responded that the procurement was under

investigation by the security agencies and EOCO.

Greater Accra Region

Non-Collection of Ground Rent GH¢131,493

3557. Section 91 (1) of the Public Financial Management Act states

"The Board of Directors of a public corporation governed by this Act



due to that public corporation".



3558. Our review of invoices and debtors register disclosed that

payment of ground rent from estates owners were in arrears to the

tune of GH¢131,493 as at 31 December 2017.

3559. The company's system for updating its database of properties

and payment of ground rent is not adequate. Also, estate dwellers

make payments only at the SHC office, thereby making it difficult for

dwellers who stay far from the office to settle their indebtedness.

There was also inadequate system for collecting of ground rent and

debt from the dwellers.

3560. The inability of SHC to collect all the ground rents and also

expand its collections might result in lack of revenue to fund projects

that might yield significant revenue to the company.

3561. We recommended to the Board and Management to

endeavour to establish appropriate systems to ensure the prompt

issuance of bills to clients and timely collections of ground rent from

them. Management must also ensure that it updates its database to

include all clients of the company and expand its collections to all

such properties, including government properties and estates.

3562. Management said in its response that they are currently

strengthening the system for distribution of Ground Rent demand

notices. Act 322 of 1970 enjoins SHC to sue for recovery of debts

and even repossession of property in case of default, therefore,

Management intends to sue all such defaulters. In addition, it would

ensure that that all lessees are captured in the EMS through a

comprehensive property audit.



Western zone

Long Outstanding Receivables-GH¢11,714.36

3563. Section 91(1&2) of PFM Act states "The Board of Directors of

a public corporation governed by this Act shall ensure the efficient

management of the financial resources of the public corporation

including the collection and receipt of moneys due to that public

corporation. (2) Where a public corporation wilfully or negligently

fails to ensure that moneys due to that public corporation are

collected or received, the Minister shall, upon the recommendation

of the Auditor-General, withdraw or suspend the emoluments of the

members of the governing body of the public corporation, either

jointly or severally".

3564. Our audit disclosed the existence of over aged receivables

amounting to GH¢11,414.36. These values were in existence since

2006. Table 381 is a summary of these transactions.

Table 381: Long Outstanding Receivables

S/N Item Amount (GH¢)

1 Trade receivables 6,974.58

2 Retention fee receivables 4,739.78

Total 11,714.36

3565. The absence of appropriate debt management systems to

follow up and ensure the collection of these receivables was

attributed to this situation.

3566. The inability of SHC to collect all these funds might reduce

the revenue available to the company to fund its operations and

invest in projects that might yield significant revenue to the

company.



3567. We recommended to the Board and Management to

endeavour to establish appropriate systems to ensure the prompt

collection of all funds from clients when they fall due.

3568. Management responded that the Zone is embarking on an

exercise to revisit the organisations involved to discuss and retrieve

the amounts involved, and where these efforts prove futile, “we shall

fall on Head Office for further instructions”.

No-valuation of Land stock in trade 3569. Management did not undertake the annual stock count as at

31 December, 2017 as there were no valuation reports to support

the value of its stock of land of GH¢49,138. The value of the land

stock in trade may be misstated in the financial statements and thus

provide its users with misleading information.

3570. We advised Management to undertake an end of year count

of the land stock in trade.

3571. According to Management, the recommendation would be

implemented in future acquisitions of such assets as the land stock

in trade valued at GH¢49,138 in the books of the zone had been

encroached and request had been sent to head office for approval to

write off the value from its books.

Account balances without details

3572. Regulation 1a of the FAR, 2004, L.I 1802 requires a public

officer who is responsible for the conduct of financial business to

keep proper records of all transactions and produce the records for

inspection upon request by the Minister, the Auditor-General, the

Controller and Accountant-General or any officers authorised by

them.



3573. Our review of the Zone’s accounts receivable and payable

indicated that an amount of GH¢427,497.53 and GH¢7,843.87

which formed part of its Receivable and Payable cannot be confirmed

as there were no details as to the names of the individuals or

organisations who were owing or owed. Details are as shown in the

tables in table 382.

Table 382: Takoradi Account receivable without details

Code Description Amount

GH¢

200401 H. P. Debtors 658.07

200404 Staff debtors 879.03

200411 Ground rent debtors 412,610.43

200416 Land owners 10,000.00

200417 Imprest control account 3,350.00

Total 427,497.53

Table 382b: Takoradi accounts payable without details

Code Description Amount

GH¢

300200 H. P. Deposits 937.42

300500 Accruals 5,509.83

300721 Standchart small loan 1,396.62

Total 7,843.87

3574. We attributed this to inadequate maintenance of records due

to weak supervision of schedule officers.

3575. The practice could lead to misappropriation of cash received.

Litigation could also arise due to disagreement with suppliers.

3576. Management should provide the details to support these

balances and also ensure that adequate and proper records are

maintained for all accounts receivable and payable.

3577. Management of the zone stated that they were unable to trace

the names of the individuals or organisations in relation to some



receivables and payables in the trial balance and had therefore

reported it in the 2018 first quarter variance to head office for

approval to write these balances off from the books.



MINISTRY OF SANITATION AND WATER

RESOURCES

GHANA WATER COMPANY Introduction

3578. The report relates to the audited accounts of the Ghana Water


3579. The operations of the Company for the year under review

ended with a profit of GH¢8,316,274 as compared with

GH¢101,137,940 in 2016 representing a 91.8% reduction in profit.


Table 383: Statement of Comprehensive Income for the year ended 31

December 2017

Income 2017

GH¢

2016

GH¢

%

Change

Revenue 885,468,803 909,555,959

(2.6)

Other Income 32,341,577 13,042,334

148.0

Total Revenue

917,810,380 922,598,293

(0.5)

Production Cost (619,496,309) (424,923,478)

45.8

Transmission/Boostering Cost (33,365,814) (27,672,692)

20.6

Distribution Cost (240,947,209) (73,006,162)

230.0

Commercial/Marketing Cost (252,761,556) (104,584,052)

141.7

General Administration and

Other Cost (436,880,230) (171,643,662)

154.5

Total Expenditures

(1,583,451,118) (801,830,046)

97.5

Profit before finance charge and

taxation (665,640,738) 120,768,247

(651.2)



Finance Charge (26,590,926) (19,630,307)

35.5

Profit/Loss for the year (692,231,664) 101,137,940

(784.4)

Transfer from Revaluation

Surplus 700,547,938 - -

Profit for the year

8,316,274 101,137,940

(91.8)

3580. Total Revenue went down by 0.5% from GH¢922,598,293 in

2016 to GH¢917,810,380 in 2017. This was due to a 3.2% or

GH¢23,169,932 reduction in revenue as a result of disconnecting

customers to ensure that reconnection fee increased by 215.0% for

the year.

3581. Conversely, Total Expenditure increased by 97.5% to

GH¢1,583,451,118 in 2017 from a figure of GH¢801,830,046 in

2016 without the same increment in revenue. The increment was

mainly due to increase in all the cost component in a range of 20.6%

to 230.0%. The cost component includes; Depreciation of Property,

Plant & Equipment, Production Cost, Transmission/Boostering

Cost, Distribution Cost, Commercial & Marketing and General

Administration and Other Costs.

Financial position

3582. Table 384 shows the financial position of the Company as at

31 December 2017

Table 384: Statement of Financial position as at 31 December 2017

Item 2017

GH¢

2016

GH¢

%

Change

Non-Current Assets 13,116,660,571 2,765,274,681 374.3

Current Assets 891,427,122 704,906,740 26.5





Net Assets 12,336,865,544 2,042,444,676 504.0



GH¢2,765,274,681 in 2016 to GH¢13,116,660,571 in 2017. The

upsurge was due to revaluation gains on the Company’s Property,

Plant & Equipment and Investment Property.

3584. Current Assets also increased from GH¢704,906,740 in 2016

to GH¢891,427,122 representing a 26.5% increase. The increment

was largely due to increases in Inventories and Receivables by

GH¢52,200,515 and GH¢156,832,651 respectively.

3585. Current Liabilities went up by 29.0% from GH¢756,320,745

in 2016 to GH¢975,652,081 in 2017. This was mainly due to an

increase in Payables by 35.4% or GH¢213,709,739.

3586. The Company’s liquidity profile as portrayed by its current

ratio of 0.9:1 (2016: 0.9:1) indicated that the Company cannot meet

its short-term financial obligations when they fall due.

MANAGEMENT ISSUES

Fixed Asset Registers not maintained and Fixed Assets not

embossment

3587. Section 13.3.2 of the Company’s accounting manual states

that detailed and adequate register should be maintained for all fixed

assets at each location. Each region/unit will manage its own assets

according to unified accounting methods.

3588. We noted during our review of maintenance of the Fixed

Assets that, the 10 units under Ghana Water Co. Ltd did not

maintain fixed asset registers. Also 8 out of the 10 units did not



emboss their fixed assets with identification marks. Details are are

shown in table 385.

Table 385: Fixed Asset registers not maintained and Fixed Assets not

embossment

No Regions Remarks

1 Accra East Region Fixed Asset Register not

Maintained

Not all Fixed Assets were

embossed

2 Tema Region Fixed Asset Register not

Maintained

No embossment of Fixed

Assets

3 Central Workshop Fixed Asset Register not

Maintained


Assets

4 Upper East Region Fixed Asset Register not

Maintained


Assets

5 Upper West Region Fixed Asset Register not

Maintained


Assets

6 Ashanti South Region Fixed Asset Register not

Maintained


Assets

7 Ashanti Production Fixed Asset Register not Maintained

No embossment of Fixed Assets

8 Ashanti Drilling Unit Fixed Asset Register not Maintained

No embossment of Fixed Assets

9 Base Workshop Fixed Asset Register not Maintained

-

10 Northern Region Fixed Asset Register not Maintained

-

3589. The team envisaged difficulties in verifying the location and

condition of all fixed assets of the units that are included in the


3590. There is also difficulty in identifying possible impairments of

the assets. Fixed assets may be lost or stolen without notice.

3591. We recommended that Management should uniquely label

each unit’s fixed assets and also ensure that fixed asset register is

maintained and include them in the entire company’s fixed asset

register.



3592. Management responded that they have noted our

recommendations and that revaluation of all their assets have been

completed. “We will contact Head Office for a comprehensive asset

register to be kept in the regions”.

Failure to withhold tax on Incentives-GH¢20,200

3593. Section 4 (2iii) of the Income Tax Act 2015, Act 896 stipulates

that a person who is ascertaining the profits and gains of an

individual from an employment for a year of assessment shall

include in the calculation an amount specified in respect of personal

allowances, including cost of living allowance, subsistence, rent,

entertainment or travel allowance.

3594. We noted during our review of payment of allowances to

employees that, the under-listed Units did not withhold taxes on rent

and other allowance paid to staff. Table 386 shows the details.

Table 386: Failure to withhold tax on Incentives

Unit Description Amount

GH¢

Upper West Push-Up Incentive 11,405

Ashanti Production Push-Up Incentive 8,795

Total 20,200

3595. This was due to ignorance on the part of the finance staff.

3596. Failure to withhold the tax resulted in a loss of tax revenue to

the state.

3597. We recommended that, Management should immediately

ensure that all allowances paid to employees are added to the

employees’ income in determining their total emoluments and tax at

the graduated income tax rate.



3598. Management replied that they have noted our

recommendations and measures will be put in place to tax rent,

entertainment and travel allowance.

Non-Preparation of Bank Reconciliation Statements

3599. Regulation (2g) of the Financial Administration Regulations,

2004 (L. I. 1802) requires the Head of a Government department to

manage and reconcile the bank accounts authorised for the

department by the Controller and Accountant-General.

3600. We noted that bank reconciliation statements were not

prepared for Brong Ahafo Regional Revenue Account which had a

book balance of GH¢793,045.33. This was due to inadequate staff

availability at the region.

3601. Errors in the Cash Book will lead to misstatements in cash

and bank balances if they are not detected and corrected.

3602. We urged Management to ensure that monthly bank

reconciliations are prepared, reviewed and dated.

3603. Management responded that efforts are being made to get the

reconciliation statement updated on its revenue accounts. “It was

largely due to inadequate staffing and also had to deal with a back

log but currently have a full complement of staff in the department”.

Accounts Payable/Suspense Accounts-GH¢1,468,122.12 3604. Regulation 200 (2) of the FAR, 2004 states “the signing of a

document or record without adequate evidence of the propriety of

the document or record constitutes negligence, and disciplinary

action shall be taken accordingly”.

3605. Regulation 39 (2c) of the Financial Administration

Regulations, 2004 states “The head of the accounts section of a



department shall control the disbursement of funds and ensure that


due and payable”.

3606. A suspense accounts is an account in the books of an

organisation in which items are entered temporary before allocation

to correct or prepare final accounts.

3607. We noted that the under-listed amounts represented

suspense accounts in the Accounts Payable from three regions as

stated in the Financial Statements of the Company may be

misleading. Details are shown in table 387.

Table 387: Accounts Payable/Suspense Accounts

No. Region Suspense Amount Year

1. Brong Ahafo 37,609.65 From 2016

2. Western 1,382,955.38 From 2016

3. Eastern 47,557.09 From 2016

Total 1,468,122.12

3608. We urged Management to ensure that no suspense account

remains in the Company’s books by the close of the financial year.

3609. Management replied that in the case of Brong Ahafo Region,

the suspense account relates to an issue that happened in 2016

(January to May) in connection with the then Regional Finance

Manager, that they were waiting approval from Head Office to write

off from the books.

3610. In the cases of Western and Eastern Regions, Management

responded that the accounts to which the suspense amounts of

GH¢1,382,955.38 and GH¢47,557.09 relate, had been identified.

Reversal for that matter will be carried out in 2019 to clear the

suspense from the ledgers.



Unverified Construction in Progress-GH¢346,267


2004 (L.I. 1802) requires public officers to keep proper records of all

transactions and shall produce the records of the transactions for

inspection when called upon to do so by the Minister, the Auditor-

General, the Controller and Accountant-General or any officers

authorised by them.

3612. Our review of the Construction-in-Progress account ledgers

disclosed that a total of GH¢346,267 disclosed in the accounts could

not be verified. No records were provided on the account balance and

the physical location of the asset could not be established. The book

values have been standing in the books of the under-listed branches

of the Company since 2016. Details in table 388

Table 388: Unverified Construction

Region Subject Book Balance

GH¢

Western Construction-In-Progress 257,809.00

Eastern Construction-In-Progress 88,458.50

Total 346,267.50

3613. Construction-in-Process may be misstated and misleading

since the location and records could not be established.

3614. Management was advised to investigate the balance on the

Construction-in-Progress. Subsequently, Management could apply

to the appropriate institutional body to write off the balance in the

event of establishment of non-existence of the Construction-in-

Progress.

3615. Management in their response stated that they had advised

Head Office to give authorisation for the write off from the books of



the region. This is a long-standing balance in the books of the region

and no traces can be found of the expenditure.

Discrepancies between Store Ledger and Stock Certificate-

GH¢111,571

3616. Regulation 182(1) of the FAR, 2004 (L.I. 1802) states that,

“The acquisition, receipt, custody, control, issue and disposal of

Government stores shall be in accordance with the provisions of

these regulations, the Financial Administration Act, 2003 (Act 654)

and the Public Procurement Act, 2003 (Act 663) and any regulation

made under Act 663."

3617. We noted that there were discrepancies between the store

ledger records and the stock certificate at the Upper West unit of the

Company. While the store ledger showed a balance of GH¢135,556,

the stock certificate also showed a different balance of GH¢247,127.


Table 389: Discrepancies between Store Ledger and Stock Certificate

Inventory Item Store Ledger

Balance

GH¢

Sock Certificate

GH¢

Difference

GH¢

Chemicals (2,596) 74,361 76,957

Pipes & Accessories 90,971 141,758 50,787

Fuel & Lubricants (324) 1,867 2,191

Spare Parts & Consumables 29,804 13,207 (16,597)

Stationery 4,561 5,974 1,413

General Stores 13,140 9,960 (3,180)

Total 135,556 247,127 111,571

3618. Management did not ensure that effective Store Control

processes and procedures were put in place to prevent this anomaly.



3619. The risk of items getting missing without trace is high and

this could lead to material misstatement of stock values in the


3620. We advised Management to ensure effective supervision over

the management of the store. Also, there should be regular

reconciliation between the store ledger and the physical inventory to

avert future discrepancies.

3621. Management said that reconciliation between the Finance

Department and Material Department will be carried out to clear the

differences.

Unmetered Customers

3622. Regulation 17a of the Financial Administration Regulations

2004 (LI 1802) requires a head of department to ensure that all Non-

Tax Revenue are efficiently collected.

3623. We noted that customers of the under-listed units of Ghana

water Company Ltd were unmetered. Table 390 shows the details.

Table 390: Unmetered Customers

No Unit

1. Accra West Region

2. Upper East Region

3. Upper West Region

4. Northern Region

3624. Unavailability of meters contributed to these anomalies.

3625. The unmetered customers are billed based on estimates and

these estimates may not be a true reflection of the customers’ actual

water consumption for the period. The situation may result in an

over or understatement of revenue.



3626. We recommended that management should install meters for

all unmetered customers to ensure accurate billing and revenue

reporting.

3627. Management replied that efforts are being made to supply

meters to all unmetered customers.

Water and Sanitation Team -Hwidiem

Unsupported payments-GH¢46,930.00

3628. Regulation 39 of FAR, 2004, (L.I 1802) requires, among

others, that the head of accounts section of a department shall

control the disbursement of funds and ensure that transactions are


3629. We noted that, Management of Water and Sanitation

Management Team-Hwidiem disbursed a total amount of

GH¢46,930.00 between 2016 and 2018 on 52

transactions/payments in respect of water metres, stationery, fuel,

and electricity bills, but did not substantiate the payments with the

relevant supporting documents such as invoices and receipts.

3630. The Director’s failure to ensure that relevant receipts were

obtained before payments were made resulted in the anomaly.

3631. We could therefore not confirm the authenticity of the

payments and hence recommended that, the amount is recovered

from the Director of operations and same paid into the accounts of

the Company for verification.

Failure to prepare payment vouchers-GH¢92,927.88


2004, (LI 1802) enjoins the head of accounts section to control the



disbursement of funds and to ensure that transactions are properly

authenticated to show that the amounts are due and payable, and

any order for disbursement that does not meet these requirements

is rejected.

3633. We noted from the bank statement of the Water and

Sanitation Management Team-Hwidiem (Capital and Operational

Accounts), that a total amount of GH¢92,927.88 drawn between

January 2016 and October 2018 were not supported with payment

vouchers and other relevant documents to substantiate the

drawings.

3634. In the absence of the payment vouchers and the relevant

supporting documents, we could not authenticate the amount

involved.

3635. We recommended to the Chairman, District Coodinating

Director and the Operations Manager who were the signatories to

the account to account for the amount of GH¢92,927.88.

Water Supply System –Kintampo

Failure to pay water bills - GH¢579,398.86

3636. Our audit disclosed that 1,879 customers made up of 1,800

domestic consumers, 45 public institutions and 34 commercial

entities owed the department GH¢579,398.86 for supply of water as

at 31 August, 2019 in violation of Regulation 46 of the Public

Financial Management Regulations, 2019 (LI2378). This was due to

Management’s weak debt recovery system. Details are listed in table

391.



Table 391: Failure to pay water bills

S/no Category No of people involved

Amount (GH¢)

1 Domestic 1,800 389,702.77

2 Public Institutions 45 175,523.74

3 Commercial 34 14,172.35

Total 1,879 579,398.86

3637. We recommended to Management to ensure that all

outstanding debts are collected while its debt recovery mechanisms

are strengthened to collect the needed revenue to sustain the supply

of potable drinking water to the Kintampo Community.

Nkoranza Water Supply System Outstanding water bills-GHȼ1,288,042.89

3638. We noted that the public and government institutions owed

the Nkoranza Water Supply System GH¢1,288,042.89 as at 31 July

2019.

3639. The situation arose as a result of weak debt recovery

strategies including failure to disconnect recalcitrant defaulters and

lack of effective customer education. Details are provided in table

392:

Table 392: Outstanding water bills

Consumer Type Amount (GH¢)

Domestic Users 849,737.58

Commercial 17,845.53

Public Standpipe 54,402.92

Institutions 366,056.86

Total 1,288,042.89



3640. Management’s failure to recover the debt was in breach of

Regulation 51 of the Public Financial Management Regulation, 2019

(LI 2378).

3641. We recommended to Management to take pragmatic actions

to collect its debts through continuous reminders and court actions

where necessary.



EXTRA MINISTERIAL ANGENCIES

COMMISSION ON HUMAN RIGHT AND ADMINISTRATIVE JUSTICE (CHRAJ)

Introduction 3642. This report relates to the audited accounts of the Commission

on Human Right and Administrative Justice for the years ending 31

December 2014 and 2015.

Operational results 3643. The Commission registered a surplus of GH¢41,640.49 at the

end of the 2015 financial year as against a nil balance in 2014.

Details are shown in able 393.

Table 393: Income Statement 2015

Income 2015

GH

2014

GH

%

(Inc/Dec)

Subvention from GoG 13,888,999.02 12,719,960.09 9.2

Goods & Services 1,207,267.86 380,868.95 216.9

Non-Financial Assets 482,419.22 0.00 100.0

Total Income 15,578,686.10 13,100,829.04 18.9

Expenditure

Compensation of Employees 13,888,999.02 12,719,960.09 9.2

Goods and Services 1,165,627.37 380,868.95 206.0

Non- Financial Assets 482,419.22 0.00 100.0


Surplus 41,640.49 0.00 100.0

3644. Total income increased by 18.9 % from GH¢13,100,829.04 in

2014 to GH¢15,578,686.10 in 2015. This was mainly due to increase

in release of subvention for Goods and Services, Compensation of

employees as well as Assets.

3645. Total expenditure also increased by 18.6% from

GH¢13,100,829.04 in 2014 to GH¢15,537,045.61 in 2015. The

increase was as a result of increase in expenditure for Non-

Financial Assets in 2015.



Financial Position

3646. The financial position of the Commission as at the end of

December 2015 is shown in the table 394.


Current Assets

3647. Current assets comprised mainly of cash and cash equivalent

of GH¢41,640.49 as at December 2015. This is made up of Bank of

Ghana account.

Accumulated Fund

3648. The accumulated fund of the Commission stood at

GH¢41,640.49 as at 2015.

MANAGEMENT ISSUES

Absence of fire service and police reports on the 2013

commission’s office fire outbreak 3649. Best practice requires that when there is a fire outbreak,

Police Service and Fire Service conduct investigation to establish the

cause of the fire and issue report to the affected entity or person.

This enables the entity to put in place effective fire preventive

mechanism in future.

3650. Our audit disclosed that since the fire outbreak at the

Commission’s Head office in 2013, the Commission has not received

any report from the Statutory Bodies (Ghana Police Service and

Ghana Fire Service) that conducted various investigations into the

2015

GH¢

2014

GH¢

%

Change

Non-Current Assets - - -

Current Assets 41,640.49 - 100



cause of the fire despite the numerous letters written by

Management to these Statutory Bodies.

3651. Since the cause of the fire was not known, the Commission

might not be able to put in place effective preventive mechanism to

avert any future occurrence.

3652. We recommended and Management agreed to intensify efforts

to obtain the reports from the Ghana Police Service and Ghana Fire

Service in order to put in place effective fire preventive mechanisms

to avert any future occurrence.

Koforidua

Missing of Official Vehicle

3653. Regulation 1608 of the Stores Regulations 1984 states that

“Government vehicles shall be parked in garages provided for them

at the close of work. Vehicles on duty outside their stations shall be

parked at the nearest Police Station or such other safe place as may

be ordered by the officer using it. Government vehicles, except those

assigned to Duty Post Officers shall on no account be kept at private

residences.

3654. An interview with the Regional Director of the Commission

indicated that the official Toyota Pick Up vehicle with registration

number GC-7923-12 and chassis number AHTFK22G203070031

which was parked at his residence at SSNIT Flat Estate Car Park

had been stolen. He claimed he travelled and returned to be

informed that the vehicle had been stolen from where it was parked

at his residence since March 2019. The matter has been reported to

the police.



3655. Failure by the Regional Director to park the vehicle at the

Commission’s premises before travelling outside the Country

accounted for this anomaly.

3656. This has resulted in delay in investigations when cases are

reported to the Commission. Also, in the absence of the vehicle,

officers are compelled to use their own means of transportation to

places for investigative purposes.

3657. We urged Management to ensure that the Regional Director

(Mr. Stephen Okpoti Mensah) be made to pay for the cost of the

vehicle.

3658. Management stated that “the flat where the Regional Director

resides is a duty post and the matter has been reported to the Police

and investigations are ongoing.

GHANA AIDS COMMISSION

Introduction

3659. This report relates to the audited accounts of the Ghana Aids

Commission for the year ending 31 December 2018.

Operational results

3660. The Income Statement depicted a deficit of GH¢6,790,542.21

in 2018 as against a surplus of GH¢7,179,354.88 in 2017,

representing a decrease of 194.6%. The performance indicators are

shown in table 395.




3661. Total Income decreased by 83.5% from GH¢40,702,579.89 in

2017 to GH¢6,710,955.29 in 2018. The fall was mainly as a result

of 96.4% or GH¢29,608,951.05 decrease in Receipts from Funding

Partners from GH¢30,730,392.75 in 2017 GH¢ to 1,121,441.70 in

2018.

3662. Total Expenditure also went down from GH¢33,523,225.01 in

2017 to GH¢13,501,503.50 in 2018 which represents 59.7%

decrease. The decrease was primarily as a result of 97.4% or

GH¢11,534,443.22 reduction in Disbursement to Sub-Projects from

GH¢11,840,688.96 in 2017 to GH¢306,245.74 in 2018 as the

funding from Global fund came to an end.

Income 2018 GH¢

2017 GH¢

% Change

Receipts from Funding Partners

1,121,441.70

30,730,392.75 (96.4)

Government of Ghana

Counterpart Funds

5,513,586.94

9,574,493.86 (42.4)

Other Income

75,926.65

397,693.28 (80.9)

Total Income

6,710,955.29

40,702,579.89 (83.5)

Expenditure

Operating and Project Management Cost

13,117,359.18

21,504,931.00 (39.0)

Non-Expendables Equipment

77,898.58

177,605.05 (56.1)

Disbursement to Sub-Projects

306,245.74

11,840,688.96 (97.4)

Total Expenditure

13,501,503.50

33,523,225.01 (59.7)

Surplus/(Deficit)

(6,790,548.21)

7,179,354.88 (194.6)



Financial position

3663. Table 396 shows the financial position of the Commission as

at 31 December 2018.

Table 396 Financial position as at 31 December 2018

Item 2018 GH¢

2017 GH¢

% Change

Current Assets 1,965,369.55 8,755,917.76 (77.6)

Net Assets 1,965,369.55 8,755,917.76 (77.6)

3664. Current Asset went down by 77.6% from GH¢8,755,917.76 in 2017

to GH¢ 1,965,369.55 in 2018. The fall was due to 77.5% or

GH¢6,767,148.21 decrease in Cash and Bank Balances from

GH¢8,732,517.76 in 2017 to GH¢1,965,369.55 in 2018.

MANAGEMENT ISSUES

Unaccounted accommodation and dinner allowances –

GH¢169,350.00

3665. Regulation 39 (2c) of Financial Administration Regulations

2004 (LI 1802) states that, the head of the accounts section of a

department shall control the disbursements of funds and ensure


are due and payable.

3666. We noted that Management paid to staff Daily Subsistence

Allowance (DSA), accommodation, dinner and transportation for

programmes and activities held outside their official place of work.

3667. Management disbursed as part of allowances to staff and

other persons GH¢84,300.00 and GH¢85,050.00 for

accommodation and dinner respectively but did not ensure detailed

accountability of same in respect of official receipts and other

relevant documents. Details are shown in the table 397.



Table 397: Unaccounted accommodation and dinner cost

Date Payee Details DV NO. DV

Amount

Cost of Accommod

ation

Cost of Dinner

7/20/2018

Director of Policy and

Planning

Logistics for zonal / national

validation DV 07/059

187,430

1,500 83,400

7/24/2018 Principal Internal Auditor

Logistics for audit of District

Assemblies from July- September 2018 DV 07/088

31,040

19,800 -

07/10/2018

Director of Research,

Monitoring & Evaluation

Data Verification for key population data reported

for Jan - Dec 2017 DV 07/028

19,160

10,800 -

7/17/2018

Tyco City

Inverstment Limited

Conference package for media interaction at

BA & AR on 18-19/07/2018 DV 07/096

18,681 1,650

7/23/2018 Director of Administration

Funeral of the

late Mrs. Helina (Ivy Asare-Darko) DV 07/067

2,860

1,200 -

04/03/2018

Director of Technical Services

Logistics for regional interaction

session (Health reporters and senior Editors) at ER/VR DV 04/001

32,680

8,100 -

04/05/2018

Director of Research, Monitoring &

Evaluation

Logistics for RM&E Committee

Meeting DV 04/025

5,748

900 -

07/03/2018

Director of Technical Services

Logistics for

Zone three- ANC visit in the Volta region DV 07/001

22,330

11,700 -

7/17/2018

Director of Research, Monitoring and Evaluation

Data Verification for key population data reported

for Jan - Dec 2017 (Central, Western and Ashanti regions) DV 07/027

12,790

8,100 -



07/10/2018

Director of Research, Monitoring and Evaluation

Data

Verification for key population data reported for Jan - Dec

2017 (Greater Accra, Eastern and Volta regions) DV 07/026

12,590

8,100 -

07/03/2018

Director of Technical

Services

Logistics for Zone three- ANC visit in the Volta

region DV 07/001

22,330

11,700 -


Logistics for

auctioning of GAC official vehicles DV 07/020

7,565

1,500 -


9th Annual conference of Public Service Chief Directors DV 07/021

5,320

900

Total 84,300.00 85,050.00

3668. The validity of the payments could not be guaranteed as there

were no supporting documents to proof that the activities actually

took place.

3669. We advised Management to ensure that the amount of

GH¢169,350 is accounted for by the staff. Failure of which the staff

who were paid these monies should refund the total amount to the

Commission.

3670. According to management, it is the policy of GAC that

accommodation and dinner is paid on actual expenditure basis.

Suppliers of accommodation and dinner therefore submit invoices of

actual expenditure after events to GAC for payment. In exceptional

cases where accommodation and dinner are required especially for

work outside Accra, Management has approved a standard rate of

GH¢300 and GH¢40 for accommodation and dinner respectively for

all levels of staff. This is to avoid claims of different rates for different

locations.



NATIONAL COMMISSION FOR CIVIC EDUCATION (NCCE)


Commissionfor Civic Education (NCCE) for the years ending 31

December 2017-2018.

Operational Results 3672. The Commission recorded an income surplus of

GH¢2,654,928 for the year 2018 as against GH¢2,452,372.49 in

2017, an increase of 8.3% over the previous year’s figure. Table 398

shows the performance indications.

Table 398: Income Statement for the period ended 31st December

2018

Income 2018 GH¢

2017 GH¢

% Change

Government Subvention 38,797,823.32

35,496,697.16 9.2

Donor Fund 5,563,653.48 6,227,454.01 (10.7)

Total Income 44,361,476.80

41,724,151.17 6.3

Expenditure

Personal Emolument 36,345,740.1

7

33,974,394.17

6.9

Goods and Service Expenses

1,530,799.03 1,522,789.56 0.5

Donor Fund 3,830,009.60 3,774,594.95 1.4

Total Expenditure 41,706,548.80

39,271,778.68 6.1

Income surplus 2,654,928 2,452,372.49 8.3

3673. Total income of the Commission for 2018 amounted to

GH¢44,361,476.80 compared with GH¢41,724,151.17recorded in

2017, representing an increase of 6.3%. Government subvention,



which constituted GH¢38,797,823.32 of total income, increased by

9.2% as compared with the 2017 figure of GH¢35,496,697.16. The

increase was as a result of recruitment of new staff by the

Commission.

3674. Also, Donor Fund comprising of income derived from various

International and Local donors was GH¢5,563,653.48 in 2018 as

compared with 2017 figure of GH¢6,227,454.01 registering a

decreased of 10.7%.

3675. Total expenditure of the Commission for 2018 was

GH¢41,706,548.80 whiles that of 2017 stood at GH¢39,271,778.68,

representing an increase of GH¢6.1% over the 2017 figure.

3676. Personal Emolument has been the dominant expenditure item

of the Commission taking 87.1.7% of total expenditure for

2018.Goods and Services expenses also saw slight increase of 0.5%,

from GH¢1,522,789.56 in 2017 to GH¢1,530,799.03 in 2018.

Financial Position 3677. The Commission’s financial position as at 31 December 2018

is shown in Table 399.

Table 399: Financial Position as at 31st December 2018

3678. Non-Current Assets of the Commission increased by 92.8%

from GH¢1,710,788.03 in 2017 to GH¢3,298,916.37 at the end of

Item 2018 GH¢

2017 GH¢

% Change

Non- Current Assets 3,298,916.37 1,710,788.03 92.8

Current Assets 4,400,676.05 3,474,488.50 26.6

Total Assets 7,699,592.42 5,185,276.53 48.4



2018. The increase was due to additional property, plant, equipment

acquired during the year and work-in-progress for the year.

3679. Current Asset of the Commission increased by a margin of

26.6% from GH¢3,474,488.50 in 2017 to GH¢4,400,676.05 in 2018.

The increase was due to increase in cash and cash equivalents for

the period under review.

3680. The Commission registered no liabilities for the period under

review and could meet its short-term obligations when they fall due.

MANAGEMENT ISSUES

Required Notice Not Given Prior to Resignation-GH¢20,341.77 3681. Article 50 (b)(ii) of the Collective Bargaining Agreement (CBA)

of the National Commission for Civic Education states that senior

employees wishing to resign shall give three months’ notice or pay

three months’ salary to the Commission and junior officers shall give

one-month notice or one month pay to the Commission in lieu.

3682. Contrary to the above position, we noted that six former

employees did not give the required three or one-month notice prior

to their resignation. Our further scrutiny of personnel records

disclosed that no evidence of payment to the Commission in lieu of

their resignation as required by the Collective Bargaining Agreement

was done.

3683. This anomaly could be attributed to non-adherence to the

CBA by the Head of Human Resource Unit who should have ensured

that due diligence was done to recover the amount of GH¢20,758.18

from the affected staff as indicated in table 400.



Table 400: Required Notice Not Given Prior to Resignation -

GH¢20,341.77

Name

Date Of

Submission

Date

Resigned

Required Period For

Notification

Sal Per

Month

Total Amount

GH¢

Mohammed Aminu

19TH OCTOBER

2018

21ST March 2018 3MONTHS 1,604.60 4,813.80

Daitey Selina

Daikwor Korlete 26TH APRIL 2018 1ST JULY 2018 3 MONTHS 1,604.60 4,813.80

Anyagri Mary 20 MARCH 2018

3RD APRIL 2018 1 MONTH 1,267.22 1,267.22

Comfort Asomah 24THAPRIL 20TH MAY 2017 3MONTHS 1,306.73 3,920.19

Felix Ofei Aboah

2ND MARCH 1MONTH 886.75 886.75

Ocquaye Khadijatu 28TH MARCH 1ST APRIL 2017 3MONTHS 1,546.67 4,640.01

Total 20,341.77

3684. Due to Management failure to conduct due diligence, the

former employees did not comply with the Collective Bargaining

Agreement by giving three or one month’s notice prior to their

resignation and did not pay three or a month’s salary in lieu of

notice.

3685. We recommended that Management should recover the total

amount of GH¢20,341.77 from the affected staff.

3686. Management said they have since been notified and given

deadlines to pay back the various sums.

Court Judgement Not Enforced 3687. Regulation 230 of the Financial Administration Regulations,

2004, LI 1802 states “a head of department shall

(a) ensure that adequate investigation is made of a loss; (b) direct action to be taken and ensure that action is taken in (i) rectification of systems;

(ii) discipline of staff; and (iii) recovery of a loss”.



3688. Our audit disclosed that on 8th December 2017 Mr. Isaac

Opare Abrakwa, the Head of Procurement reported of a missing TVS

ZT125 motorcycle and the matter was subsequently referred to the

Police. One Inusah was arrested by the Police as suspect and was

granted bail.

3689. Due to failure to produce the suspect, the Court on 29th of

May 2019 enforced the bail bond and ordered the sureties to pay

GH¢9,000.00 or their property attached.

3690. We however could not sight any evidence of action taken to

enforce the order of the Court. This anomaly could be attributed to

Management’s disinterest in the enforcement of the Court’s order.

The Commission may lose the opportunity of enforcing the Court

order if it delays unduly.

3691. We recommended that Management should take immediate

action to enforce the Court order.

3692. At the instant of the audit, Management wrote to the Registrar

of the Court for an update on the enforcement of the Court Oder.

Bole

Non-Preparation of Payment Vouchers-GH¢4,500.00

3693. Regulation 82 (1) of the Public Financial Management

Regulation 2019 states “a payment by a covered entity should be

accompanied with a payment voucher (a) authorised by the head of

account and (b) which is approved by the Principal Spending Officer

on the Ghana Integrated Financial Management Information

Systems”.



3694. We noted during our review of cash management, that there

were no paid vouchers to support disbursements totalling

GH¢4,500.00 made to the Northern Regional Office of the National

Commission for Civic Education for 6 programmes between 20/2/19

and 28/09/19. Table 401 are the details of transactions made

without Payment Vouchers.

Table 401: Non-Preparation of Payment Vouchers

Date Particulars Cheque Number

GCR No. Amount GH¢

Remarks

20/02/19 Regional

Office

3048133 1,000.00 For sensitization

11/03/19 Regional

Office

3048134 1,000.00 For social

auditing

engagement.

27/05/19 Regional

Office

637072 3048135 600.00 For citizenship

week celebration

2019.

10/07/19 Regional Office

3048136 500.00 For voter registration

exercise

07/08/19 Regional

Office

637113 3048137 400.00 For

administration

purpose.

28/09/19 Regional

Office

3048138 1,000.00 For community

durbar

Total 4,500.00

3695. The Schedule officer managing the accounts on behalf of the

Bole NCCE said they received verbal information from their Regional

Office in Tamale asking them to stop preparing payment vouchers.

However, we could not see any official document to that effect.

3696. The non–preparation of payment vouchers would lead to

abuses of the Commission’s funds, such as spending without

approval from the District Head of the Commission.



3697. We urged Management of the Bole NCCE to ensure that

payment vouchers are always raised for any expenditure and

approval given by the District Head of the Commission before

payments are made. However, Management should ensure that

payment vouchers are prepared for the amount of GHc4,500.00

made otherwise, the amount involved should be refunded to chest.

Ahafo Region-Kukuom

Unearned salaries-GH¢-5,978.68


2004 (LI1802) requires that, a head of department shall cause the

immediate stoppage of payment of salary of a public servant when

that public servant has been absent from duty without leave or

reasonable cause for a period stipulated in the administrative

regulations of the establishment.

3699. We noted that Mr. Mohammed Aminu, an Assistant Civic

Education Officer of NCCE, Kukuom reported for work for six days

and two days in June and July 2017 respectively and never reported

till he resigned from post in October 2017 but was paid unearned

salaries of GH¢5,978.68.

3700. The anomaly occurred as a result of the District Director’s

failure to stop validating the officer’s salary. This has therefore

resulted in the payment of unearned salary to him.

3701. We recommended to the Director to pursue recovery of the

amount from the officer failing which he should be asked to refund

the amount to the institution for verification.



INTERNAL AUDIT AGENCY

Introduction 3702. This report relates to the audited financial statements of

Internal Audit Agency for the year ended 31 December 2018.

Operational Results 3703. The Agency closed the 2018 financial year with a surplus of

GH¢1,027,117 compared with a deficit of GH¢369,511 recorded in

2017. This major turnaround represented an improvement of

178.0% in its operations during the financial year. A summary of

Agency’s performance indicators for 2018 are shown in table 402.


Income 2018 GH¢

2017 GH¢

% Change

GOG-Subventions 5,441,271 3,592,619 51.5

Other Income 1,379,858 1,366,123 1.0

Total Income 6,821,129 4,958,742 37.6

Expenditure



Income Surplus/(Deficit) 1,027,117 (369,511) (378.0)

3704. Total Income increased from GH¢4,958,742 as recorded in

2017 to GH¢6,821,129 in 2018 representing a rise of 37.6%. This

was largely due to a significant inflow of subventions from the

Government of Ghana which went up by 51.5%.

3705. Total Expenditure for the Agency also increased by 8.7% after

it increased from GH¢5,328,252 in 2017 to GH¢5,794,012 in

2018.This was caused by Staff Compensation which increased by

10.0% from GH¢3,644,078 in 2017 to GH¢4,009,847 during the

year under review



Financial position

3706. The financial position of the Agency as at 31 December, 2018



Item 2018 GH¢

2017 GH¢

% Change

Non-Current Assets 1,819,876 521,804 248.8

Current Assets 1,611,078 90,793 1,674.5

Current Liabilities 2,129,481 338,241 529.6

Net Current Assets (518,403) (247,448) 109.5

Net Assets 1,301,473 274,355 374.4


3707. Non-Current Assets rose from GH¢521,804 in 2017 to

GH¢1,819,876 in 2018 representing a 248.8%. This increase was as

a result of a major acquisition of Property, Plants and Equipment in

2018.

3708. Current Assets also increased by GH¢1,520,286 or 1,674.5%

after it rose from GH¢90,793 in 2017 to GH¢1,611,078 in

2018.There was a GH¢1,514,696.56 increase in Account

Receivables which was made up of warrants for CAPEX and Goods

and Services.

3709. The value of Current Liabilities also went up significantly by

529.6% to GH¢2,129,481 in 2018 from GH¢338,241 in 2017.There

was a 1,458.2% and 141.2% rises in Sundry Accounts Payable and

Accrued Expenses which accounted for the increment.

3710. Current ratio also improved slightly from 0.3:1 in 2017 to

0.8:1 in 2018, yet the Agency cannot settle its short-term obligations

when they fall due.

Mission

Statement

The Ghana Audit Service exists

To promote

·

good governance in the areas of transparency,

accountability and probity in Ghana’s public financial management system

By auditing

· to recognized international standards, and reporting

our audit results

And

·

reporting to Parliament

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