Liberia: ‘Remittance On Tax Arrears Ongoing’ – NASSCORP Responds to Audit Findings, Insists Operations Followed the Law

Monrovia – The General Auditing Commission (GAC) has released its audit report on the financial statements of the National Social Security and Welfare Corporation (NASSCORP) for the fiscal years 2022 and 2023, confirming that the corporation’s accounts were fairly presented in line with generally accepted accounting principles.

The audit, conducted under the statutory mandate of the Auditor General in accordance with Section 2.1.3 of the GAC Act of 2014, reviewed NASSCORP’s statement of financial position, income statement, cash flow statement, and other accompanying notes.

In its report, the GAC stated that NASSCORP’s financial statements “present fairly” the corporation’s financial position, performance, and cash flows for the period under review, consistent with Generally Accepted Accounting Principles (GAAP).

However, the GAC noted an “Other Matter” — flagging NASSCORP’s non-compliance with International Financial Reporting Standards (IFRS), the official reporting framework for all State-Owned Enterprises (SOEs) in Liberia.

Key Observations

Auditors observed that while NASSCORP’s financial statements complied with GAAP, they fell short of IFRS standards. However, NASSCORP has since entered a contract with Deon & Leon International for the conversion and first-time adoption of IFRS, which will include restated financial statements for 2022 and 2023.

The GAC recommended that management develop and implement a plan to transition fully to IFRS within six months of the Auditor General’s report submission to the Legislature.

Management’s Response

NASSCORP confirmed the non-compliance but explained that initial work on IFRS conversion was delayed due to staff changes at its former auditing firm, Baker Tilly.
To address this, management terminated the contract with Baker Tilly and hired Deon & Leon International in November 2024 to complete the conversion process.

According to NASSCORP, the IFRS-compliant statements are expected to be completed by the end of the second quarter of 2025.

The Auditor General acknowledged management’s efforts and said the GAC would follow up on the implementation during future audits.

Tax Remittance Concerns

The audit also revealed that management did not withhold and remit GST amounting to US$144,385.15 from some suppliers, and withheld an additional US$1,199,890.05 without evidence of remittance to the Liberia Revenue Authority (LRA) for FY2023.

Additionally, auditors reviewed an LRA assessment showing taxes totaling US$1,874,775.27 (salaries and rent) withheld from January 2018 to October 2022, with an initial payment of US$200,000. However, auditors noted untimely remittances and an outstanding amount of US$139,564.60, representing two payments under a March 2023 agreement.

Management’s Response

NASSCORP said the tax arrears are being remitted progressively under a new arrangement with the LRA. The corporation cited ongoing discussions with the tax authority, resulting in a revised payment schedule with installments of US$74,614.20 according to a new repayment plan initiated during the audit period.

Auditor General’s Position

The GAC said NASSCORP’s response did not fully address the issues raised. It advised the corporation to work closely with the LRA to perform a tax reassessment and update its repayment plan to reflect all liabilities.

The Auditor General also emphasized the need for NASSCORP to withhold and remit all Goods and Services Taxes (GST) within ten days after the end of each month, in line with the law.

Litigation and Disclosure Issues

The GAC further noted that NASSCORP failed to disclose litigation matters in its financial statement notes as required by ASC 450. It also found a discrepancy regarding a US$4,500 land investment in Nimba County, which was listed as an asset despite being refunded after a dispute over ownership.

Management’s Response

NASSCORP said it has corrected the issue, removing the land from its investment property listings and updating the financial statements accordingly.
Management also committed to promptly disclosing all future litigation matters in compliance with ASC 450.

Auditor General’s Position

The GAC welcomed the corrections and management’s acceptance of its recommendations, noting that follow-up reviews will be conducted during subsequent audits.

While the GAC audit found NASSCORP’s financial statements to be fairly presented, it identified key areas for improvement — notably full IFRS compliance, timely tax remittances, and better disclosure practices.
NASSCORP insists its operations remain within the confines of the law and that measures are underway to address all outstanding compliance concerns.