Essential provisions of the Public Financial Management Act which aim at ensuring that resources are properly safeguarded are:

• The Act defines clearly the powers and responsibilities of financial stewards (individual office holders) and their precise roles. It defines the central players in the financial administration of the country, the assignment of responsibilities, their functions and roles. This includes responsibilities and powers of Minister of finance, responsibilities of Chief Director, duties of a Principal Spending Officer, duties and functions of Controller and Deputy General and Accountant-General, and parliament and it oversight responsibility.
• It addresses micro and Fiscal Policy Principles and Strategies.
• Budget preparation approval and it management.
• It establishes Contingency Fund, it payments and advances.
• It establishes Sinking Fund and Debt Servicing.
• It also establishes new strategies of cash and asset management. The Act establish Treasury Single Account, Consolidated Fund and issues involved in Investment of balance on the Consolidated Fund.
• It has establish new ways of Public Debt Management by establishing an office at the Ministry of Finance to deal with Public Debt Management, the Act has shown the purposes under which borrowing can be made.
• It has set dates under which Public Accounts are supposed to be submitted and audited.
• Last but not the least, the Act has also establish Audit Committees to replace Audit Reports Implementation Committees.
• Lastly, miscellaneous provisions such as Offence and Penalties, Surcharges and Penalty for Contravention of the Act.

• Public sector accounting enables governments to demonstrate accountability for public resources to the citizens.
• Public sector accounting provides useful information that supports social, economic and political decision making of government.
• Public sector accounting is a tool that enables efficient allocation of public resources to the priorities of government.
• Public sector accounting serves as a tool used by government to control its plans, programmes and activities.
• It also helps to measure performance of government in terms of economy, efficiency and accomplishments.
• Public sector accounting is a means of meeting legal requirements to public accounts quarterly and annually..

• Means of funding is different. Public sector entities are financed largely from the public resources resulting from taxes, levies and other public moneys whereas private sector is financed through capital contribution of owners such as shares. Therefore, public entities are collectively owned by the citizens without equity interest but equity interest is the basis of private ownership.
• Accountability structures are different. Public sector entities are accountable to citizens through parliament but private entities are accountable to the shareholders through the board of directors.
• The nature of goods and services they offer is different. Public sector is engaged in the provision of public goods and services which are non-excludable and non-divisible. Private sector is involved in the provision of private goods that are rivalry, divisible and discriminatory. Thus, public sector operates in a monopolistic market where private sector operates in a competitive market.
• The regulatory environment is different. Public sector entities are established by a specific enactment of Parliament where as private sector entities are governed by general commercial enactments and other industry specific enactments.

Primary users of GPFRs are service recipients and their representatives and resource providers and their representatives.

• To provide financial information useful for determining and predicting the flows, balance and requirements of short-term financial resources of government;
• To provide financial information useful for determining and predicting the economic condition of the government unit and changes therein;
• To provide financial information useful for monitoring performance under terms of legal, contractual and fiduciary requirements;
• To provide information useful for evaluating managerial and organizational performances;
• Determining the costs of programme, functions and activities in a manner which facilitates analysis and valid comparison, with established criteria among time periods and with other sector ministers;

• Economy. Economy measure the cost of inputs employed in achieving policy outcomes of government. It is concerned about the cost of public service delivery. Economy is about cost minimization of public services through effective cost control and accountability mechanisms. A tool used in measure economy of government performance is the budget.
• Efficiency. It measures the process of achieving a programme outcome and policy outcomes. It is concerned with judicious use of public resources in attainment of a given outcome. Efficiency focuses mainly of the conversion of the inputs to output and aims at optimization n of the conversion process. It calls for reduction of wastage and inefficient technologies in achieving policy outcomes.
• Effectiveness. This measures the impact of obtaining value for money. It can be quantitative (the amount of effectiveness) or qualitative (the value of effectiveness). It is about attainment of policy outcome. Once government achieves result, the government is said to be effective.
• Equity. It is concerned with performance in terms of balancing the needs of the current generation with that of future general. It focuses on sustainability, environment and the social justice. Therefore, a government must be seen to take the future generation into consideration when embarking on government programmes and policy,
  (Note that all the four elements must the present to achieve value for money.)

Why government can be assessed at the end of the tenure?

• Governments are accountable to the people therefore the people must be able to assess the performance of the government.
• The plans and budgets of government is presented to the people at the beginning of each year and therefore the economy, efficiency and effectiveness and equity can be assessed from this information.
• Actual outcomes are reported as part of the accountability process and therefore information to assess value for money is always available.

• To scrutinize the audit reports submitted to Parliament by the Auditor-General and conduct investigations into the cases of financial irregularities contained in the AG’s Report;
• To submit report to Parliament on their work indicating the findings and recommendation for consideration of the house; and
• To make a follow up on the implementations of the recommendation.

• To ensure that the head of a covered entity pursues the implementation of any recommendation contained in an internal audit report; Parliament’s decision on the Auditor-General’s report; Auditor-General’s Management Letter; and the report of an internal monitoring unit in the covered entity concerned particularly, in relation to financial matters raised.
• To ensure that the head of a covered entity prepares an annual statement showing the status of implementation of any recommendation contained in an internal audit report; Parliament’s decision on the Auditor-General’s report; Auditor-General’s Management letter; the report on financial matters raised in an internal monitoring unit of a covered entity; and any other related directive of Parliament.
• To perform other advisory function in relation to internal control systems, risk management and compliance to rules, procedures and policies.

• Value for money
  Value for money is paramount and PPPs should give greater value for money than the best realistic public sector project designed to achieve similar service outputs. Achieving value for money is a key requirement of government at all stages of a project’s development and procurement and is a combination of the service outcome to be delivered by the private sector, together with the degree of risk transfer and financial implications for government. Value for money is the driver for adopting the PPP approach, rather than capital scarcity or the balance sheet treatment.
• Risk allocation
  An efficient risk allocation is vital in determining whether value for money can be achieved in PPP projects. Government’s principle with regards to risk allocation shall be used to optimise, rather than maximise, the transfer of project risks to the private party. Risks will therefore be allocated to the party best able to control and manage them in such a manner that value for money is maximised. The allocation of risk will therefore determine the chosen method of private sector involvement and allocation of responsibilities, which shall take into account the protection of the public interest.
• Ability to pay
  End user ability to pay shall be a key consideration for all PPP projects. The PPP option must demonstrate long-term affordability to the public and overall Government budgetary sustainability, forward commitments in relation to public expenditure and the potential for returns on private sector investment, given other priorities and commitments.
• Local content and technology transfer
  PPP projects shall be structured to encourage the maximum use of local content and technology transfer. As much as possible, the PPP arrangement shall facilitate the promotion of local industries and the private sector in Ghana.
• Safeguarding public interest and consumer rights
  Government is committed to ensuring that each PPP project shall have positive impact upon the public interest. The following principles shall be addressed in PPP transactions: safeguards to users particularly vulnerable groups; and setting affordable user charges and tariff structures.
• Environmental, climate and social safeguards
  The Government shall ensure that PPP activities conform to the environmental laws of Ghana and the highest standards of environmental, climate and social safeguards.

• Failure to obtained funding for the project such risk arises if and when the entity is unable to obtain funding needed for the project or
• Rising interest risk, especially when debt secured for the PPP project is in foreign currency. This might arise from the circumstances of the specific entity or the private party due to, for example, the credit status or debt limitations of the party involved or investor perceptions of the risks of a project.
• Inflation and exchange rates risk. Inflation and exchange rate my posse a challenge to a PPP arrangement, especially where there is hyper inflations and depreciation of the local currency

NB: Assets or services received free of charge or for nominal cost are recognized as Grant at the fair value of the assets or services that the Government would have otherwise paid for, where the fair value can be measured reliably.
A corresponding expense is however recognized for services received and in the case of assets, receipts of assets are recognized in the Statement of financial position.
As in this case a service in kind, hence the inclusion of GH¢ 18,740,000 in the Grants and Other Expenses accordingly.

The control is that under Regulation 199. (1) of the FAR no officer is allowed to sign any incomplete document or record pertaining to accounts.

The control under this is that under Regulation 198 of the FAR, any officer signing any document or record pertaining to accounts shall ensure that the document or record is signed in such a way as to preclude subsequent alteration or addition to the information contained in the document or record.

Under this control is that under Regulation 205 (1) of the FAR Accounting records and documents shall be written in indelible ink. Also, an entry in an accounting record or document shall not be erased or altered by writing over.

The control over this in under Regulation 206 of the FAR as follows: An incorrect figure in a document may be amended by ruling a single line through it, in such a way that the original entry may be clearly read, and the correct figure inserted above the original entry and the officer signing or certifying the document shall initial the amended entry.

The control under this is provided for under Regulation 208 of the FAR as follows: For the purpose of keeping public and other government accounts and preparing financial statements, all pesewas shall be rounded upwards to the nearest Cedi.

Calculation of subvention required for the 2015 fiscal year: