Significant errors and flaws have been revealed by the Auditor-General in the 2024 Whole-of-Government Accounts (WGA), including a GH¢138.91 billion overestimation of Ghana’s public debt and shortcomings in asset management and financial reporting.
Following an independent audit of the government’s consolidated accounts prepared by the Controller and Accountant-General’s Department (CAGD) in accordance with the Public Financial Management Act, 2016 (Act 921), the findings were included in the Report of the Auditor-General on the Public Accounts of Ghana for the Year Ended 31 December 2024.
According to the report, the public debt amount recorded in the WGA was greatly exaggerated. It was suggested that the CAGD collaborate with the Ministry of Finance to conduct a thorough reconciliation in order to rectify the overstatements and omissions.
It further showed that, in compliance with International Public Sector Accounting Standard (IPSAS) 41, GH¢74.24 billion that was recorded as investment provisions ought to have been categorized as impairment losses.
To avoid such mistakes during consolidation, the CAGD was encouraged by the Auditor-General to improve its quality assurance procedures.
The audit also revealed that, in violation of IPSAS 23, receivables for assessed but uncollected income tax and Value Added Tax (VAT) as of December 31, 2024, were not recorded in the accounts. The Ministry of Finance, the Ghana Revenue Authority, and the CAGD were advised to work together more closely to align revenue recognition with the accrual basis.
Furthermore, the report recommended the creation of a formal procedure for routine asset assessments after discovering that the CAGD had failed to perform impairment tests on non-financial assets as mandated by IPSAS 21 and IPSAS 26.
The audit also revealed discrepancies in the Inter-Company Account balances, which should be investigated and corrected right away because they were GH¢7.99 billion at the beginning of the year and GH¢8.55 billion at the end, rather than zero after consolidation.
Incomplete transaction processing by covered entities using the Ghana Integrated Financial Management Information System (GIFMIS) was another issue.
According to the research, the PFM Act’s provisions should be strictly enforced, supported by system enhancements, capacity building, and penalties for repeated non-compliance.
Regarding public investments, the Auditor-General noted that GH¢10.30 billion in disinvestments and GH¢19.25 billion in new investments lacked sufficient narrative and note disclosures, depriving the public of important details regarding the justification, ramifications, and anticipated returns.
Although the audit’s goal was to provide an opinion on the government’s financial statements, the study came to the conclusion that immediate attention was needed to improve fiscal transparency, accuracy, and accountability in public financial management.
Source: newsthemegh.com