Nov 2015 Q3
In the 1992 Constitution and the financial laws of Ghana, certain key public institutions and individual are mandated to perform various functions and duties to ensure effective public financial management.
Explain FOUR (4) duties each of the following public officers and institutions towards effective public financial Management:
(2 marks shall be awarded for content and presentation)
a) The Controller and Accountant General (6 marks)
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Statutory Duties:
Section 3 (Financial Administration Act, 2003) Act 654
1. Responsible to the minister of finance for the custody, safety and integrity of the consolidated fund and other public funds under his care;
2. Responsible for compilation and management of the consolidated fund and other public funds;
3. He is the chief accounting officer of the government responsible for keeping, rendering and publishing statements of public accounts as required by law;
4. He is the chief advisor to the minister of finance and the government on accountancy matters;
5. He approves departmental accounting instructions and promotes the development of efficient accounting systems within departments;
6. He is responsible for receipt, secure custody of public moneys payable into the consolidated fund.
7. He authorizes the opening of bank accounts of MDAs and MMDAs
8. In consultation with the auditor general, he specifies for departments, the accounting basis, policies and classification system to ensure proper system of accounting;
Regulatory Control Duties:
The regulatory control duties of the controller and accountant general in public financial management are as follow:
- Relating each spending department’s requirements to the economic resources estimated to be available and to the total claims on them;
- Keeping public expenditure within total resources for the year;
- Advising departments on economic and financial policy, via treasury circulars;
- Controlling government expenditures through co-ordination and monitoring operations pf MDAs and MMDAs;
- Considering matters covered by the reports of the public accounts committee of parliament and co-operating to improve financial control;
- Initiating programmes to improve financial management, including the provision and guidance improvements, in public sector accounting;
b) The Auditor General (6 marks)
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Statutory Duties:
1. Section 11, Audit Service Act, 2000 (Act 548)
The public accounts of Ghana and of all public offices, including the courts, the central and local government administrations, of the universities and public institutions of like nature, of a public corporation or other body or organization established by an act of parliament shall be audited and reported on by the auditor general.
2. Section 13- Examination Of Accounts
The auditor-general shall examine in such manner as he thinks necessary the public and other government accounts and shall ascertain whether in his opinion:
a. The accounts have been properly kept;
b. All public monies have been fully accounted for and rules and procedures applicable are sufficient to secure an effective check on the assessment, collection and proper allocation of the revenue;
c. Monies have been expended for the purpose for which they were appropriated and the expenditures have been made as authorized;
d. Essential records are maintained and the rules and procedures applied are sufficient to safeguard and control public property; and
e. Programmes and activities have been taken with due regard to economy, efficiency and effectiveness in relation to the resources utilized and results achieved.
Other Duties:
Section 12 – audit of foreign exchange transactions
Section 14 – audit of statutory corporations;
Section 15 – examination of annual statement of public accounts prepared by controller and accountant general;
Section 16 – submission of special audit report to parliament;
Section 17 – disallowance of surcharge.
c) Parliament (6 marks)
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- Scruitinisation and approval of national budget.
- Scrutinisation, approval or disapproval of public expenditure, grants, loans, taxes, etc to ensure that government operates with the remits of the approved national budget or Appropriation Act.
- Scrutinsation of Auditor General’s reports on public accounts and interrogating public officials on the audit findings and recommendations.
- Holding public officers accountable for financial losses to the state.
- Promulgation of laws and legislative instruments to enforce financial accountability and transparency.
- During budget execution, Parliament is mandated to receive in-year implementation reports through select committees.
- Parliament may also undertake direct monitoring of projects approved in the budget through visits to project sites to monitor project implementation or service delivery.
- Parliament is part of the wider checks and balances in the PFM system, and help to create a demand for accountability.
- Parliament is mandated to approve International Business and other Financial Transactions. Article 181 of the Constitution provides that Parliament may, by a resolution, authorise the Government to enter into an agreement for the granting of a loan out of any public fund or public account.