The Office of the Auditor-General has recovered GH¢12.7 billion out of GH¢38.9 billion disallowed expenditures flagged in audit reports between 2020 and 2023.
This represents 32 per cent of the amount flagged by the Auditor-General to be disallowed and recovered during the special audit exercise.
The Auditor-General’s report indicated that the GH¢12.7 billion of disallowed expenditure recovered during the period came from public boards (GH¢10.79 billion); ministries, departments and agencies (GH¢1.86 billion); technical universities (GH¢35 million); internally generated funds (GH¢13.8 million); pre-university institutions (GH¢9.09 million); and the District Assemblies Common Fund (GH¢7 million).
The Greater Accra Region recorded the highest amount of recoveries — GH¢12.46 billion — representing 98 per cent of all the recoveries, with the Bono East Region recording the least, at 0.01 per cent.
In a special audit report as of December 31, 2024, submitted to Parliament, the Auditor-General, Johnson Akuamoah Asiedu, disclosed that the recoveries were made following recommendations in his office’s annual reports.
The report, titled “Special Audit Report on the Recoveries Made from Disallowed Expenditure in the Auditor-General’s Reports from 2020 to 2023 and Payroll Savings as at 31 December 2024”, was mandated under Section 16 of the Audit Service Act, 2000 (Act 584).
Payroll savings
The report also revealed additional payroll savings of GH¢86.8 million from 2022 to 2024, while recoveries of unearned pay amounted to GH¢7.21 million, bringing total payroll audit gains to GH¢94.07 million.
The transmission letter addressed to the Speaker of Parliament, Alban Kingsford Sumana Bagbin, categorised the recoveries by year, type of irregularity and region.
Part I provided a summary, Part II detailed disallowed expenditure recoveries, and Part III covered payroll savings as of December 31, 2024.
Collaboration for recovery
Mr Asiedu stated that his office was working with the Ministry of Finance and other stakeholders to ensure recovered funds are promptly paid into the Auditor-General’s Recoveries Account.
“This will not only provide timely funds for the government but also ensure financial discipline in state institutions,” he stated.
Appreciation for Parliament
The Auditor-General commended Parliament and its Public Accounts Committee (PAC) for their support, attributing the successful recoveries partly to the committee’s oversight work.
“The work of the PAC significantly contributed to the recovery of these amounts,” he emphasised.
The report reaffirmed the Auditor-General’s commitment to safeguarding public funds and ensuring accountability in government expenditure.
Breakdown of recoveries
In 2020, the Auditor-General’s Office recovered GH¢6.84 billion out of GH¢11.378 billion, leaving GH¢4.53 billion in pursuit.
In 2021, GH¢1.14 billion was recovered from a total of GH¢5.15 billion, leaving GH¢4.014 billion outstanding.
In 2022, GH¢4.02 billion was recovered out of a recoverable GH¢16.98 billion, leaving GH¢12.95 billion still being pursued.
In 2023, GH¢702.27 million was recovered from GH¢5.46 billion, leaving GH¢4.76 billion yet to be recovered.
In total, the Office of the Auditor-General is going after GH¢26.27 billion in disallowed expenditure that occurred within the period under review.
Irregularities
Of the total recoveries, GH¢9.94 billion (78.22%) was from indebtedness, loans and advances irregularities.
GH¢1.24 billion (9.81%) stemmed from cash irregularities.
GH¢1.49 billion (11.78%) came from tax irregularities.
GH¢11.88 million (0.09%) was based on rent irregularities.
GH¢10.79 million (0.08%) involved payroll irregularities.
GH¢1.96 million came from assets, stores and procurement irregularities.
Context
In the context of the Auditor-General’s work, disallowance refers to rejecting or refusing to approve expenditures that violate the law. This typically involves unearned salaries or allowances paid to public officers or individuals.
When such irregular expenditures are identified, the Auditor-General can disallow them and recommend the recovery of the amounts involved. This differs from a surcharge, which involves imposing penalties in addition to recovery.
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