First Audit of General Auditing Commission Reveals shortcomings
Monrovia – The National Legislature of Liberia, through its joint Public Accounts, Expenditure and Audit Committee (PAC) on Tuesday April 26, 2016 received an Audit report conducted on the General Auditing Commission covering the audit periods 2009/2010/11 and 2012.
“That means there was no clear accounting system in place, no trial balance and no general ledger available”- Edward R.O Ouku, Auditor General, Kenya National Audit Office
In compliance with the law, the Auditor General, Madam Yusador Gaye, contacted the Supreme Audit Institution of Kenya-the Kenya National Audit Office to conduct an audit of the GAC.
Presenting the report, Edward R.O Ouku Auditor General of the Republic of Kenya in the joint chambers of the National Legislature, said the audit covered a period of six years and since the current head of the GAC assumed office in 2013, his presentation was opinionative.
“Allow me to address my presentation in the following manner. First of all, the issues which came to my attention and which represent my final opinion on the financial years prior to the substantive appointment of the AG and covers the year 2009 to 2013 because she came to office September 2013”, said Auditor general Ouku.
“We also looked at the actions she has taken since her appointment to address those issues, and then subsequently we looked at the issues which were subsequent to her appointment that is from the year 2014 and 2015”, he added.
According to the Kenyan Auditor General for the financial year 2010, his opinion is qualified, based on the fact that the GAC has never been audited at all and the earliest financial statement was basically the year, 2010.
On some of the issues raised in the report, AG Ouku said “That means there was no clear accounting system in place, no trial balance and no general ledger available.”
The audit report also states that financial statements of the GAC were basically non-compliance with the International Public Sector Accounting Standards and that there was undisclosed bank account dormant at Eco-Bank which evidently had transactions that were not included in the bank balance.
“There was uncertainty about the inclusion of transactions from account in the account record,” he stated.
AG Ouku also stated that for 2011, some of the issues experienced in 2010 were still repeating. “There were no supporting documentations on purchasing of equipment, staffs that were going for training and IT equipment. Therefore there was no evidence that these acquired assets were been controlled and recorded,” he said.
He also indicated that there is also quite a substantial funding which was done through the EU, which was not captured in the financial statement but noted that the situation was understandable because of the way in which the agreements were designed indicated that the GAC was not a party to it.
“The amount which should have been brought in was about Euros five hundred-thirteen thousand,” the report stated.
“Technically the accumulated liability from non-compliance which we estimated was about US dollars five hundred ninety-three thousand”, said AG Ouku.
“2012 was a year which was prone with a number of supporting documentations which we could not get especially as it relates to goods and services, this year was particularly bad. 2013 was also not good and this was also compounded with some fraudulent activities especially the purchase of computers which was delivered to GAC and was paid for on single source”, the Kenyan AG noted.
The report also indicates that the Auditor General housing allowance was paid to a different person instead of the beneficiary. “The four years to 2013 were years plagued with weaknesses, non-compliance with financial reporting laws, non-financial statement were being prepared on a timely manner,” Ouku said.
The audit is the first of the GAC. The GAC was created by an act of the National Legislature to audit all government institutions to promote transparency and accountability but because of international best practices it cannot audit itself.
Henry Karmo (0886522495) [email protected]