The Polytechnic should also be more diligent in future employment of persons to forestall such recurrence.
University of Mines and Technology
i. Staff Loans and Advances --
The Committee noted that staff loan advances granted by the University increased from GH¢60,026.00 at the end of 2009 to GH¢96,736.00 at the end of 2010.
The Vice Chancellor explained to the Committee that Tarkwa, where the University is located, is a mining town where accommodation is expensive and difficult to come by, and given that the University is unable to provide accommodation for all the staff in accordance with the “Conditions of Service” of the University, it has instituted a policy to assist staff who do not gain official accommodation with some advances to rent private accommodation.
The Committee however recommends that the University of Mines and Technology should strive to progressively build its own accommodation for staff in order to cut down on the huge advances granted continuously to staff.
That notwithstanding, the management of the University should ensure that all outstanding staff loans and advances are recovered.
ii. Operation of FM Station
The audit disclosed that the University operated a Frequency Modulation (FM) Station called Dynamite FM. However, the operational guidelines of the FM station could not be verified, neither were the transactions of the station kept by the University. Furthermore, the transactions
of the Station were not included in the financial statement of the University.
The Vice Chancellor informed the Committee that the radio station was established by the Students Represen- tative Council as a service to the Tarkwa Municipality in 1997. As a students' project, the University did not consider it appropriate to include the transactions of the radio station in its Financial Statements.
However, following the audit, the University has taken over the control of the Station and has constituted the FM Management Board. Operational Guide- lines for the Station have also been put in place. Furthermore, an Accounts Officer from the Finance Office of the University has been attached to the Station to ensure that transactions of the FM Station are incorporated in the main University's Financial Statements. Thus, the Financial Statements of the University for years 2011 and 2012 included the transactions of the FM Station.
The Committee commends Manage- ment of the University for measures taken to implement the Auditor-General's recommendations and urges them to ensure that the operations of the FM Station are carried out efficiently.
University of Cape Coast (UCC)
i. Debtors (Blocks Section) -- GH¢22,438.20
The Committee noted that GH¢22,438.20 worth of building blocks produced during year 2010 were sold on credit but none of the debts had been collected as at September, 2011.
The Auditor-General attributed the lapse to the failure on the part of management of the University of Cape Coast to put in place a credit sales policy.
The Committee was informed by the Vice- Chancellor of the University that subsequent to the audit, the entire GH¢22,438.20 had been collected from the debtors.
Given that such a situation could put the University into financial distress, the Committee recommends that the University should put in place a Credit Sales Policy to ensure that future buyers are properly assessed before they are granted credit.
ii. Debtors (Primary School) --
The Committee noted that Interlocking Construction Limited owed the University's Primary School an amount of GH¢10,000.00 since year 2009. According to the Auditor-General, the amount has been outstanding due to apathy on the part of Management of the University to recover the debt.
The Vice Chancellor informed the Committee that the debt owed the Primary School was an advance payment granted to the Contractor for works on the rehabilitation of the UCC Primary School building under the GETFund support project.
Unfortunately, the project has been suspended due to lack of funds. Management of the University has therefore agreed to set off the debt against the retention fee amounting to GH¢ 27,570.31 to be paid to the Contractor.
The Committee urges Management of the University to follow through with its arrangement to ensure that the amount is recovered from the Contractor.
National Board for Professional and Technician Examination
i. Unauthorised and Overpayment of Allowances -- GH¢9,844.50
The Committee observed that a payroll examination conducted as part of the audit
disclosed that three (3) officers of the National Board for Professional and Technician Examination (NABPTEX) were paid unauthorised allowances totaling GH¢4,830.30. This comprised Owner OccupierAllowance of GH¢1,938.30 and Special Allowance of GH¢2,892.00 which were not part of NABPTEX's Conditions of Service. At the instance of the Auditors, the Owner Occupier Allowance of GH¢375.00 paid to one of the officers was recovered leaving an outstanding balance of GH¢4,455.30.
The Committee further observed that two officers were overpaid Responsi-bility and Entertainment Allowances to the tune of GH¢5,389.20.
Officials of NABPTEX informed the Committee that indeed, the Owner Occupier and Special Allowance paid to the officers were not part of NABPTEX's Conditions of Service. Again, the overpayment of Responsibility and Entertainment Allowance resulted from the migration of the NABPTEX staff to the Government mechanised payroll by the Controller and Accountant-General's Department.
The Committee recommends that Management of NABPTEX should take appropriate measures to recover the monies wrongfully paid to these officers and pay them into Government chest.
ii. Payment of Unapproved Extra Duty Allowance -- GH¢2,907.00
Contrary to section 9 of the NABPTEX Act, 1994 (Act 492) which provides that Board Members are to be paid allowances as determined by the Minister for Education in consultation with the Minister for Finance, allowances totaling GH¢2,907.00 were paid to four (4) Board Members as extra duty allowance in December 2010. This allowance was not
inclusive of the allowances to be paid to the Board Members.
The Committee was informed by Management of NABPTEX that the amount of GH¢2,907.00 had been refunded by the affected persons.
Indeed, the failure by Management to adhere to section 9 of Act 492 leaves much to be desired. In the opinion of the Committee, payment of unbudgeted expenditure has the tendency of adversely affecting the achievement of planned programmes of the Board.
The Committee therefore recommends that in future, the Board should seek approval from the Minister for Education before the payment of any special allowances to its Members.
Ghana Science Association
Unexplained Bank Credit -- GH¢523,338.53
Contrary to Regulation 165 of the Financial Administration Regulations, 2004 (L.I. 1802), which requires all releases of funds to be made in accordance with warrants issued by the Hon. Minister for Finance, the Committee noted that a total amount of GH¢523,338.53 was transferred into the Ghana Science Association's bank account numbered 01256-600672-12, at the Bank of Ghana between August 2009 and December 2010, by the Controller and Accountant-General's Department (CAGD) without any supporting warrants.
Even though management of the Association wrote two letters dated 19th April, 2010 and 27th April, 2010 to the Bank of Ghana and the CAGD, this anomaly was still not rectified.
The National Council on Tertiary Education (NCTE), the body with
oversight responsibility over the Association, subsequently requested the Association by letter referenced NC/H.3/ Sf.1/v.2 and dated 15th December, 2010, to transfer an amount of GH¢75,000.00 out of the GH¢523,338.53 into the NCTE's bank account for the payment of salaries of staff of NCTE's London office. The Association, in compliance with the said request, paid the amount of GH¢75,000.00 to NCTE on 5th April, 2011, leaving a balance of GH¢448,338.53.
The Committee was informed by officials of the Ghana Science Association that subsequent to the audit, the remaining amount of GH¢448,338.53 has been transferred back to government chest.
The Committee attributes the occurrence of the anomaly due to failure on the part of the CAGD to act in accordance with Regulation 165 of the Financial Administration Regulations, 2004 (L.I.
The Committee therefore recommends that the Controller and Accountant- General should exercise effective supervision over staff of the CAGD to ensure that all officers perform their duties with professionalism and due diligence.
Abibigroma Theatre Company
i. Unpresented Payment Vouchers --
Contrary to Regulation 262 of the Financial Administration Regulations, 2004 (L.I. 1802), which requires Heads of Departments to ensure that financial and accounting records are properly preserved, the Committee noted that the Abibigroma Theatre Company could not produce six payment vouchers amounting to GH¢2,170.73 for audit.
Officials of Abibigroma Theatre Company informed the Committee that the payment vouchers were not available for audit because the Accounts Officer was not at post during the audit. Subsequent to the audit however, the payment vouchers in question have been submitted and verified by the Auditors.
It came up during the Committee's deliberations that Abibigroma Theatre Company is understaffed, and to augment the staff strength of the Company, the Hon Minister for Tourism, Culture and Creative Arts has given a directive for a staff audit of the Company to be conducted.
In this regard, the Committee recommends that the Ministry of Tourism, Culture and Creative Arts should as a matter of urgency, ensure that the staff needs of Abibigroma Theatre Company are met. The Committee further recom- mends that Management of the Company should ensure that the Accounts Officer is sanctioned appropriately.
ii. Items not routed through Stores --
It was noted by the Committee that procurement transactions worth GH¢3,779.60 covering vehicle tyres and batteries were not properly documented to provide the needed audit trail on the acquisition and use of the items, while replaced unserviceable tyres and batteries could not be produced for audit inspection.
Officials of the Company indicated that the irregularity occurred because the Company had no Storekeeper. Following the audit however, the Company has engaged the services of the National Theatre Storekeeper who has routed the items through stores. Basic value/store
books have been acquired and in use by the Company. Management has also taken custody of all the unserviceable items under review and have them verified by the Auditors.
The Committee recommends that the Ministry of Tourism, Culture and Creative Arts should ensure that immediate steps are taken to engage a permanent Storekeeper for the Company.
i. Improper Management of Fuel Purchased -- GH¢10,300.00
The Committee noted that there were inadequate controls over fuel management. This was because there was no segregation of duties in the purchase, receipt and issuance of coupons.
Contrary to chapter 1604 of the Stores Regulations, 1984, fuel coupons amounting to GH¢10,300.00 issued to drivers were not recorded in the appropriate log books.
Officials of the Copyright Office informed the Committee that the Office has now provided all vehicles with log books for the entering of coupons issued. Coupon issue book is also reconciled with fuel log book regularly.
Failure to ensure that fuel coupons issued are recorded in the appropriate log books would render it difficult for the Transport Officer to ascertain whether the fuel coupons issued were used for the intended purposes.
The Committee therefore recommends that the Management of the Copyright Office should put in place, an effective segregation of duties in the acquisition and issuance of fuel coupons. Furthermore, all drivers should be trained to record fuel received in their log books.