Compliance with the Public Financial Management Act – The Ministry of Finance must name and blame failing MDAs
Dr John Kumah – Deputy Minister of Finance
The Ministry of Finance, in conjunction with the Internal Audit Agency, has launched a ‘name and shame’ initiative which aims to publish the names of Ministries, Departments and Agencies (MDAs) that are not complying with the accountability requirements of the Public Financial Management Act, 2017 (ACT 921) in the media.
This is part of the measures to enforce the law and ensure effective accountability of public institutions.
This was announced by a Deputy Minister of Finance, Dr. John Kumah, at the 2022 Annual Internal Audit Conference.
He said the ministry expects Cabinet and Parliament respectively to review and give legal effect to the initiative in due course.
“Let me assure you that the Minister of Finance is very committed to this and will work to achieve this and ensure the effective restructuring of the Internal Audit Agency,” he said.
Restructuring of the audit agency
He said the restructuring would strengthen the Internal Audit Agency and align internal audit activities to support national financial priorities and strategies as well as macroeconomic stability in line with the national vision to prevent corruption and ensure accountability. efficiency in the use of public funds.
He said this would help the agency play its role effectively in ongoing public financial management reforms by improving efficiency, accountability and supporting the government’s fiscal consolidation efforts, while strengthening the independence and objectivity of public sector internal auditors in the performance of their duties. functions.
“Let me take this opportunity to assure the public that the government will continue to support the work of auditors in their assurance services that they provide, including the work of the Auditor General in publishing his reports on the audit of public funds,” he said. .
Reduction of irregularities
The Deputy Finance Minister also pointed out that in the recent Auditor General’s report for 2021, the total value of irregularities reported was GH¢1.08 billion, compared to GH¢2.05 billion reported in 2020.
He said this indicates a reduction of GH¢972.2 million (representing 47.35%) in the value of previously reported breaches and a cumulative average reduction in the value of breaches of GH¢5.19 billion in 2018. to 1.08 billion GH¢ in 2021, i.e. 79.19. percent off.
“This shows a downward trend in the financial impact of reported irregularities from 2018 to 2021,” he said.
He said the drop was the result of the government’s continued efforts to implement measures to address the root causes of the irregularities reported by the Auditor General.
“Despite the somewhat systemic nature of some of these root causes and therefore requiring some time for government interventions to produce the necessary results, the measures initiated by the government have contributed significantly to the gradual improvement of accountability measures. in MDAs.
“These measures have, over the period, resulted in a gradual decline in the value of violations reported in the Auditor General’s report from 2017 to 2021,” he noted.