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Six ex-staff of FDA earned GH¢32,000 as salaries – A-G report

FDA LOGO1 The report said the 'failure to inform the bank promptly had resulted in the unearned salary'

Sat, 14 Aug 2021 Source: classfmonline.com

The 2020 report of the Auditor-General has revealed that some six former staff of the Food and Drugs Authority (FDA) still continued to earn salaries even after resigning and retiring.

Regulation 92 of the Public Financial Management Regulations 2019 (LI 2378) stipulates that the Principal Spending Officer of a covered entity shall ensure the immediate stoppage of payment of salary to all separated public servants and retrieve any unearned compensation.

“We noted that six former staff of the Authority who became separated by way of resignation and retirement in 2018 and 2019 were paid salaries, leading to an unearned salary of GH¢32,840.35”, the report said.

The anomaly, according to the report, “was as a result of the management’s inaction from the moment the salaries became unearned to notify the bank to stop the payment of the salary”.

The report noted that the “failure to inform the bank promptly had resulted in the unearned salary which is a drain on the nation’s finances”.

“We recommended that the management should recover the total amount of GH¢24,451.86 in 2018 and GH¢8,299.35 in 2019” and pay it to the government’s coffers and obtain a treasury receipt to support the payment and “our office notified for verification, failing which the authorising officer may be made to pay the total sum of GH¢32,840.35 back to chest”.

The report said the management responded that they wrote letters to the officers concerned to refund the unearned salary by 31 January 2020.

The report, which relates to the audited financial statements of the FDA for the two years ended 31 December 2019, said the Authority recorded a surplus of GH¢6,683,607.09 in 2019 financial year as compared to GH¢8,911,587.64 in 2018 representing a reduction of 16.70% below the previous year’s surplus.

Total income recorded an increase of 2.93% from GH¢ 78,114,673.88 in 2018 to GH¢80,407,007.99 in 2019.

This increase was as a result of an increase in fee charges and license renewals which went up by 3.68% and 2.30% respectively.

Total expenditure increased by 6.53% from GH¢ 69,203,086.24 in 2018 to GH¢73,723,400 in 2019.

This was due to an increase in compensation of employees by 19.62% from GH¢25,416,506.72 in 2018 to GH¢30,402,379.35 in 2019.

This increase was as a result of the engagement of new employees by the Authority in 2019 as well as casual employees.

Goods and Services also increased by 49.56% from GH¢18,726,083.16 in 2018 to GH¢28,007,372.37 in 2019.

This was as a result of procurement of new mini-labs for the regional offices. Capping of the Authority’s Internally Generated Funds into the Consolidated Fund reduced by 45.56% from GH¢22,000,000.00 in 2018 to GH¢12,000,000.00 in 2019.

Non-Current Assets increased by 23.30 % from GH¢45,984,360.86 in 2018 to GH¢56,699,974.51 during the period.

The increase was due to the construction of a new office complex at Tema.

Current Assets decreased from GH¢8,308,343.93 in 2018 to GH¢6,270,672.73, a reduction representing 24.53%.

This is as a result of an overdrawn of the Authority’s BOG-IGF (cedi account) by GH¢2,697,713.59. 1142.

During the year 2019, the Authority accrued a liability of GH¢1,994,335.36.

Nevertheless, the Authority’s current ratio of 3.14:1 is strong enough to help the Authority to meet its current liabilities when they fall due.

Source: classfmonline.com
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