Accra, (Greater Accra) 14 July '99,
The Public Account Committee of Parliament on Wednesday deplored the recurring financial and administrative irregularities in pre-university educational institutions, as contained in the Auditor-General's Report.
The Auditor-General's Report, which covers a period ending June 30, 1996, noted among other lapses, the weak debt collection in the institutions, resulting in indebtedness of students, staff and others amounting to 2.3 billion cedis.
The committee expressed this sentiment when its deputy chairman, Mr Kwadwo Baah-Wiredu, NPP-Asante Akyem North, moved a motion for the adoption of its report on the Auditor-General's findings on pre-university educational institutions for the period.
It mentioned other irregularities as excessive use of self-prepared receipts by school authorities and the holding up of 223 million cedis, being Educational Sector Adjustment Credit (EdSAC) funds, by the institutions.
The figure had increased to 597 million cedis as of December 31, 1996.
The report said 56.6 million cedis worth of fuel had been misapplied at the time of the audit. Also, 25.2 million cedis, representing five per cent withholding tax, was held by some of the institutions, while 11.1 million cedis, representing five per cent withholding tax, was not deducted from payments to suppliers.
It said 11.9 million cedis store items were not documented, while goods worth 3.3 million cedis, duly paid for, were not supplied.
The Committee also expressed concern about the situation where officers, who had been provided with official accommodation, were in rent arrears of 5.7 million cedis
The report said advances granted to teaching and non-teaching staff stood at 13.3 million cedis, while payment of 4.7 million cedis as unearned salaries was not recovered.
The Committee said the most important part of its work on the Auditor-General's report was to bring together various parties of the administrative process in the educational institutions and to secure mutually agreed solutions to observed weaknesses.
It also sought agreement with school management and the Ghana Education Service (GES) on a set of new rules and procedures to address the financial and administrative lapses.
On the administration of scholarships, the committee said reports from heads of almost all schools indicated that scholarship grants do not reach them on time.
According to them, scholarship grants meant for students at the beginning of the academic term are sometimes received at the end of the term or much later.
This compels them to use monies, such as book user fees and the five per cent deductions from payments to suppliers meant for the Internal Revenue Service (IRS), to feed students, in violation of financial regulations.
The Committee said in view of the problems identified in the administration of scholarships, it proposed and agreed with the National Scholarship Secretariat, COCOBOD, the Controller and Accountant-General's Department, GES and the various heads of schools on a timetable for submission, processing, payment and transfer of scholarship grants.
It urged all stakeholders in the administration of scholarships to schools to expedite action on all claims to enable the institutions to run smoothly.
It also called on the Controller and Accountant-General's Department to issue instructions to its regional and district offices, drawing attention to the relevant portions of the financial administration regulations, which require that all vouchers should be processed within 48 hours upon receipt.
The Committee said evidence before it indicates that most of the schools failed to prepare their annual accounts promptly for validation by the Auditor-General.
It therefore requested all schools whose accounts have fallen into arrears to prepare them up-to-date and make it available to the Auditor-General for validation.
A timetable for preparation and submission of accounts was agreed between the Committee and the various school authorities, who have to give formal undertaking to comply with the schedule.
The Committee noted the widespread misapplication of EdSAC textbook user fees and said as of December 31, 1998, the schools had failed to remit 597.44 million cedis to the account.
