Public Accounts Committee and Audit Report (GH0028)

Problem to be addressed ● The Public Accounts Committee (PAC) of Parliament has observed that some Ministries, Departments and Agencies (MDAs) fail to implement recommendations contained in its report. This is due to the weak implementation capacity of MDAs

The commitment  Government to ensure effective implementation of recommendations of the Public Accounts Committee by Ministries, Departments and Agencies as well as Metropolitan, Municipal and District Assemblies.

Contribution of commitment to solving problem ● The commitment, if implemented, will help to protect the public purse.

Relevance of commitment to OGP values  The commitment will strengthen enforcement of existing rules and regulations on implementation of PAC recommendations.  The commitment is critical to the realization of OGP values of accountability and anti-corruption  The commitment is relevant to public accountability

Additional information

Milestone Activity with a verifiable deliverable Start Date: End Date:  Internal Audit Agency to build the capacity of Audit Committees of MDAs to implement PAC recommendations Nov.2021 June 2023  Internal Audit Agency to train audit committees in effective financial record keeping Nov. 2021 June 2023 Republic of Ghana - Open Government Partnership - NAP-4 18  Audit Committees trained to build their capacity April 2022 June 2023

Action Plan Review

Commitment 1. Strengthen Implementation of Audit Recommendations

● Verifiable: No

● Does it have an open government lens? Yes

● Potential for results: Modest

Commitment 1: Public Accounts Committee and Audit Report

This commitment could contribute to public accountability by strengthening the capacity of audit committees. However, the commitment’s potential for results is unclear due to the lack of information on the specific activities and intended outcomes. Examples of specific information on planned activities include the scope of training content and intended participants as well as whether the Internal Audit Agency (IAA) will carry out activities beyond training. Stakeholders could clarify whether intended outcomes entail increasing the percentage of post-clearance audit (PCA) recommendations being implemented; the number of ministries, districts, and agencies (MDAs) and metropolitan, municipal, and district assemblies (MMDAs) implementing PCA recommendations; and the extent to which or the type of recommendations that are implemented.

Results Report

Commitment 1. Strengthen Implementation of Audit Recommendations

This commitment sought to strengthen audit committees’ capacity to implement the audit recommendations. The Internal Audit Agency (IAA) also sought to work with CSOs to assess the level of compliance with audit recommendations in a sample of public institutions. [1] IRM assessment of this commitment was limited by the fact that the IRM researcher was unable to reach contacts from the IAA, Ghana Center for Democratic Development, or Centre for Local Governance Advocacy who were involved in implementation.

The IAA trained 3,124 audit committee members representing 60 percent of the targeted 70 percent on implementing PAC reporting (milestone 1). An additional 615 members drawn from audit committees, board members, and managements were trained in Enterprise Risk Management (ERM) to reduce audit infractions. [2] The IAA also supported audit committees in implementing audit findings related to specific trust areas (milestone 4). The IAA ordered all public institutions to conduct emergency audit committee meetings to consider and pursue implementation of the 2021 Annual Auditor-General Report. ^[3] Secondly, the Minister of Finance introduced the Audit Recommendations Implementation and Follow-Up Instructions for Public Institutions to enhance fiscal prudence. The instructions, issued on 30 June 2023, aim to standardize, improve, and clarify the audit follow-up process and outline the sanctions for non-compliance. ^[4] Ghana’s self-assessment report records 54 percent implementation of audit recommendations as of June 2023. [5]

The Public Financial Management Compliance League Table (PFMCLT), launched on 16 March 2023, is a collaboration between the IAA and the CSO Centre for Local Governance Advocacy (CLGA) (milestone 3). ^[6] It serves as a ranking system that evaluates and publishes MMDA compliance levels with internal auditing requirements, Ghanaian laws, the PFM Act, and related regulations. [7] Using the PFMCLT, an assessment was conducted using 2022 financial year audit records. Out of the 261 MMDAs, 255 submitted necessary data for evaluation, and 11 surpassed the 50 percent assessment pass mark. The findings also flagged the performance of municipal assemblies who provided compliance information. [8] The IAA also partnered with the Ghana Center for Democratic Development ^[9] through an MOU to develop the District Accountability Index. This public financial accountability performance index aims to present information on financial irregularities highlighted in the Auditor-General’s reports of District Assemblies in a manner comprehensible by citizens. The IRM researcher could not identify any further progress or assessment done beyond the MOU. [10]

This commitment addresses one step in the broader challenges of the audit ecosystem. As noted in the action plan, there is a history of political interference in the work of the Auditor-General of Ghana. [11] Therefore, the technical activities in this commitment are part of the broader solution needed. The Public Accounts Committee also faces challenges, such as a backlog of audit reports that hinders the commitment’s wider aim of curbing financial losses. [12] Therefore, strengthening audit committees’ ability to implement PAC recommendations is an important, but incremental step, toward meeting this reform’s overarching aims.