Mr Chairman, kindly permit me to comment on the ensuing argument between the Internal Auditor and the Director of Finance relating to the role of internal audit. I have paid rapt attention to the contributions, and I believe that the debate should be settled based on the provisions of the Public Financial Management Act 2016 regarding the function of the internal audit.

The role of the internal audit is essential in public sector management and must contribute to the value addition process and governance processes in the organisation. The PFM Act 2016 (Section 83) stipulates the function of internal audit. An Internal

Auditor of the Internal Audit Unit of a covered entity shall:

• appraise and report on the soundness and application of the system of controls operating in the covered entity;
• evaluate the effectiveness of the risk management and governance process of a covered entity and contribute to the improvement of that risk management and governance process;
• assure the efficiency, effectiveness and economy in the administration of the programmes and operations of a covered entity; and
• evaluate compliance of a covered entity with enactments, policies, standards, systems and procedures

Mr Chairman, I wish to conclude that the pre-audit function is not a function of internal audit in the public sector. Therefore, the Internal Auditor should keep abreast with the value-adding role of internal audit to remain relevant to the organisation.

Introduction & conclusion= 1 marks
Functions= 4 points @ 1mark each = 4 marks
Total = 5marks

• Delayed or unbanked collection
  Ensure that all revenues are banked immediately. One measure to achieve this is through arrangement with banks to facilitate direct deposit by the payers into the bank account of the Assembly.
• Failure to assess and collect revenue
  All revenue payers should be identified and levied appropriately. Revenue collectors should be trained and motivated to perform their duties efficiently. Electronic means should be used to effect revenue collection.
• Inappropriate use of value books
  Security and custody of the value books should be ensured.
  Ensure that only approved values books acquired from Controller and Accountant General is used. The head of finance should ensure property custody of stock of value books and this value books should be issued out to only responsible staff. Proper records should be maintained for issue of value books.
• Poor recording keeping
  Responsible officer should be appointed for record keeping over revenue. The cash receipt book or transcript should be updated regularly. Implementing approved accounting software be effective measure to improve record keeping process.

Fixed assets:
i) Proper use of the fixed assets
Ensure that systems exist to prevent wrongful use of public assets by persons, authorised or not authorised. For example, institute tracking systems over vehicles and other assets. Physical restriction such as locks, security systems are also important to safeguard the uses of assets.
ii) Establishing Fixed asset coordinating unit
To ensure effective management the principal spending officer should establish coordinating unit within the entity to take responsibility for fixed asset management
iii) Keep proper records on fixed assets
The entity should keep and update fixed asset register to ensure accurate record on fixed assets for effective checks and decision making.

Investment of Excess Moneys:
i) Establish an investment policy for the entity in accordance with the PFM Act and the regulations to ensure that investment activities are discharged lawful and prudently.
ii) Ensure accurate accounting and reporting of investments made from public moneys.

Advances and Loans:
i) Establish appropriate advance and loan schemes for approval of Minister of Finance and parliament, as the case may be.
ii) Institute effective recovery systems for advances and loans made under the scheme.
iii) Proper accounting and reporting practices are followed for advances and loans.

Cash management:
i) Put in place an effective cash planning and for casting system to ensure effective management of cash resources of the entity.
ii) Ensure effective custody of the cash resources by ensuring that all cash are deposited gross in the designated bank accounts,
iii) Ensure that banks accounts are opened for the entity under the approval of the controller and accountant general and this shall be part of the treasury single accounts system.
iv) Regular bank reconciliation procedures should be laid down and followed.

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.

i) Delayed or unbanked collection
*I would ensure that all revenues are banked immediately.
*One measure to achieve this is through arrangement with banks to facilitate direct deposit by the payers into the bank account of the Assembly.

ii) Failure to assess and collect revenue
*All revenue payers should be identified and levied appropriately.
*Revenue collectors should be trained and motivated to perform their duties efficiently.
*Electronic means should be used to effect revenue collection.

iii) Inappropriate use of value books
*Security and custody of the value books should be ensured.
*Ensure that only approved values books acquired from Controller and Accountant General is used.
*The head of finance should ensure property custody of stock of value books and this value books should be issued out to only responsible staff. Proper records should be maintained for issue of value books.

iv) Poor recording keeping
*Responsible officer should be appointed for record keeping over revenue. The cash receipt book or transcript should be updated regularly. Implementing approved accounting software be effective measure to improve record keeping process.

Internal controls related to the Revenue function of the District Assembly shall ensure:
a.  That revenues are consistently administered in compliance with the relevant laws;
b.  That there is a rating system in place to ensure that the Assembly’s rateable persons and properties within the Assembly area are identified and that a valuation list is maintained and revised regularly in accordance with Section 96 (8) of the Local Government Act.
c.  That Nominal Roll (D.A. Form 15) of ratepayers is maintained;
d.  That Notice of Rates is published in the gazette (Fee Fixing Bulletin) in accordance with the applicable laws;
e.  That all revenue due the Assembly have been identified, properly assessed, collected, lodged and recorded;
f.  That revenue collected are adequately protected whilst in the custody of the District Assembly and that the gross amount is deposited in the bank accounts within 24 hours.
g.  That adequate procedures and operational systems are in place to capture all such public revenues;
h.  That all revenue received or receivable have been properly recorded in the appropriate books of account;
i.  The collection of revenue by assembly shall be the responsibility of DCD;
j.  All customers are promptly identified and the appropriate amount collectible from them assessed. A customer here is defined as any institution or individual that owes the Assembly because of goods and services supplied to him or the organisation;
k.  Revenues are collected by officers having the appropriate authority to do so.
l.  Authorized revenue officers shall issue serially numbered official General Counterfoil Receipts (GCR) for all revenues collected.
m.  Revenue Officers are required to prepare and sign Daily Collections Summaries (DCS);
n.  Based on the DCS, revenue officers are required to prepare pay-in-slips and pay revenue collections intact into the District Assembly’s designated Bank Accounts