• 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:

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to others. A homeowner pays personal property taxes directly to the government. In a general sense, a direct tax is one imposed upon an individual person (juristic or natural) or property (i.e. real and personal property, livestock, crops, wages, etc.) as distinct from indirect tax imposed upon a transaction. In this sense, indirect taxes such as a sales tax or a value added tax (VAT) are imposed only if and when a taxable transaction occurs.
Ways of Improving Tax Collection by the State:

• Educating taxpayers about how to comply, and benefits of paying taxes to the nation.
• Ensure regular updates to the taxpayer registry.
• Simplify the tax system to encourage formalization.
• Create external checks that enforce compliance.
• Focus resources on improved auditing, processes, and tools.
• Use simple segmentation to identify larger collection opportunities.
• Target collections in the tax offices with the largest outstanding debts

Section 1:

• The procurement of goods, works and services, financed in whole or in part from public funds except where the Minister decides that it is in the national interest to use a different procedure;
• Functions that pertain to procurement of goods, works and services including the description of requirements and invitation of sources, preparation, selection and award of contract and the phases of contract administration;
• The disposal of public stores and equipment; and
• Procurement with funds or loans taken or guaranteed by the State and foreign aid funds except where the applicable loan agreement, guarantee contract or foreign agreement provides the procedure for the use of the funds except as exempted under section 96.

Without limiting subsection (1), this Act applies to:
a) Central management agencies;
b) government ministries, departments and agencies;
c) Subvented agencies;
d) Governance institutions; state owned enterprises to the extent that they utilise public funds;
e) Public universities, public schools, colleges and hospitals;
f) The Bank of Ghana and financial institutions such as public trusts, pension funds, insurance companies and building societies which are wholly owned by the State or in which the State has majority interest;
g) Institutions established by Government for the general welfare of the public or community.
h) Statutory funds, commissions and other bodies established by Government for specific purse; and
i) The phases of contract administration as specified in the contract administration manual.

From the case the following facts were obtained:

• The entity is established by an Act of Parliament;
• The entity if financed from 95% IGF retention and 5% budget support, which are all are part of the public funds.

These suggest that the entity falls within the scope of the Public Procurement Act and therefore CEO must apply the provisions of the Act fully.

Subject to the approval of the Board, a procurement entity may undertake procurement in accordance with the established commercial practices if:
a) The procurement entity is legally and financially autonomous and operates within the commercial laws
b) It is beyond contention that the public procurement procedures are not suitable, considering the strategic nature of the procurement; and
c) The proposed procurement method will ensure value for money, provide competition and transparency is extent possible. (PPA- Section, 15)

The PFM Act 2016 defines covered entity to mean:

• Executive, Legislature and Judiciary;
• Constitutional bodies;
• Ministries, Departments Agencies and local government authorities;
• the public service; autonomous agencies; and
• Statutory bodies.

The PFM Act consistent with the 1992 Constitution defines public funds as Consolidated Fund, the Contingency Fund and any other fund established by or under an Act of Parliament.

• Periodic contributions of specified amounts determined by the Minister as part of the annual budget;
• Repayment inflows of money on-lent by the Ministry to covered entities, state- owned enterprises and public corporations;
• Moneys that accrue to the Fund from investment of moneys of the Fund;
• Moneys borrowed or raised from capital markets for the purpose of redemption of existing debts;
• Moneys approved by Parliament for debt repayment under subsection (4) of section 23 of the Petroleum Revenue Management Act 2011 (Act 815); and
• any other moneys that the Minister, with the approval of Parliament determines to be paid into the Fund.

• Improved budgetary, financial management (record Keeping) and reporting processes.
• Provide accurate, timely and reliable financial information to Central Government and Decentralized Institutions and Organizations.
• Uniformity in accounting and reporting with the introduction of a common Chart of Account and Database for all MDAs and MMDAs.
• Improvement in accountability, control, monitoring and auditing of Governmental finances.
• Ensure that Ministries, Department and Agencies (MDAs/MMDAs) spend within their budgetary allocation due to budgetary control.
• Reduce manual processes, duplication of effort and errors.
• Match disbursements with availability of revenues thus Improve efficiency in cash management and treasury Management System.
• Improve interaction between and among other financial management players such as Bank of Ghana (BOG), Public Procurement Authority ( PPA) and Ghana Revenue Authority (GRA), among others.
• Enhance enforcement of financial legislation.
• Complete and timely exchange of data and information among/between MDAs/MMDAs and central government for producing complete, timely and accurate reports (Improve Record Keeping) etc.
• Enhance and re-enforce the internal control systems in public financial management for accountability.
• Provide documentation of business processes, workflows and approval levels to ensure consistent and timely compliance across all MDAs and all MMDAs.
• An effective and efficient budget preparation, execution, monitoring and evaluation mechanism.
• Provide for the ability to budget for, track and monitor projects and grants through the chart of accounts, by using the Project

• Effective information technology infrastructure such as internet connectivity is required to make the automation success.
• Strong political commitment is necessary for setting the tone for effective IFMIS. Political will is needed for resource allocation.
• Expertise to administer the system effectively is required. The availability of human resource with right expertise in MIS is necessary for effective implementation of IFMIS.

• To eliminate idle cash balances: Every Cedi held as cash rather than used to augment revenues or decrease expenditures represents a lost opportunity. Funds that are not needed to cover expected transactions can be used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest payments) or can be invested to generate a flow of funds into the Treasury’s account. Minimizing idle cash balances requires accurate information about expected receipts and likely disbursements.
• To deposit collections timely: Having funds in-hand is better than having accounts receivable. The cash is easier to convert immediately into value or goods. A receivable, an item to be converted in the future, often is subject to a transaction delay or a depreciation of value. Once funds are due to the Government, they should be converted to cash-in-hand immediately and deposited in the Treasury’s account as soon as possible.
• To ensure time disbursements: Some payments must be made on a specified or legal date, such as Social Security payments. For such payments, there is no cash management decision. For other payments, such as vendor payments, discretion in timing is possible. Government vendors face the same cash management needs as the Government. They want to accelerate collections. One way vendors can do this is to offer discount terms for timely payment for goods sold.
• To promote efficient and effective management of cash resources in order to demonstrate accountability for cash resources. Cash management seeks to ensure that cash of government are used wisely to achieve the intended purposes and at the same time showing accountability of cash use.
• To enhance financing decisions relating to when to borrow: Effective cash management will help to forecast cash deficiencies and crises so as to take proactive steps in address the problem ahead of danger.