The Auditor-General's Department had indicted 18 agencies for failing to adhere to strict auditing principles, operating without supervisory boards and ineffective internal audit mechanism.
The agencies were: Ministry for Private Sector Development, Ghana Export Promotion Council (GEPC), Serious Fraud Office (SFO), Ghana Institute of Journalism (GIJ), Ghana Legal Council (GLC), Ghana Prisons Service, Ghana National Fire Service, Passport Office and Judicial Service.
Others were: Public Works Department (PWD), Public Servants Housing Loans Scheme Board, Mamprobi Polyclinic, Forestry Commission, National Vocational Training Institute (NVTI), Statistical Service, and Funds and Procurement at Ministry of Education and Board of Legal Education, Public Records Administration and Archives Department (PRAAD).
The report said the internal audit functions of the Mamprobi Polyclinic, Ministry of Justice - General Legal Council, GIJ, Statistical Service, National Theatre and the Ghana Prison Service were generally inadequate while the staff lacked the necessary skills to perform effectively.
In a statement to the Ghana News Agency in Accra on Friday the Auditor General Mr Edward Dua Agyeman described the situation as serious fundamental lapses that required urgent attention for the realization of essential improvements in accountability, probity and transparency in public finances.
He said a Special Audit report conducted between November 2002 and June 2003 covering the period 2000 to 2002 fiscal year had been submitted to the Public Account Committee of Parliament for the necessary actions.
The report indicted eleven of the agencies for delays in the preparation or failure to produce financial statements for audits. The agencies were required to submit draft financial statement to the Auditor-General for audit not later than three months after the end of the financial year.
"None of the organisations met the deadline and some had still not produced any financial statements," Mr Dua Agyeman emphasized. The Auditor-General also accused NVTI and Statistical Services for operating without supervisory boards, contrary to the legal requirement, while all the 18 agencies failed to establish Audit Report Implementation Committee in contravention of the Audit Service Act 2000, Act 584.
The Act requires all Ministries, Departments and Agencies to establish a committee to ensure that recommendations contained in all audit reports are implemented as well as the preparation of annual statements showing the status of implementation and action taken.
The report also indicted the agencies for weakness in their internal controls and inadequate segregation of duties with errors and irregularities and frauds resulting from poor system of internal financial control.
Other issues the report cited were inadequate procurement procedures and malpractice, poor payroll routines and failure to deduct withholding tax.
