Introduction The Financial Audit Report of theAuditor-General on the verification studyof Multi-Donor Budgetary SupportInflows (2010-2012), was presented toParliament on Wednesday, 12th November,2014. This was in accordance with article187 (2) and (5) of the 1992 Constitution ofthe Republic of Ghana. In fulfilment of Order 165 (2) of theStanding Orders of the Parliament ofGhana, the Report was referred to thePublic Accounts Committee forexamination and report.
Procedure To consider the Report, the Committeemet with the Hon Minister for Food andAgriculture, the Hon Minister for Healthand the Hon Deputy Ministers forFinance; Gender, Children and SocialProtection; Water Resources, Works andHousing; Education; Local Government
Officials of the underlisted Ministrieswere also present at the Committee'ssittings to assist in its deliberations: i. Ministry of Food andAgriculture; ii. Ministry of Health; iii. Ministry of Finance; iv. Ministry of Justice andAttorney-General's Department; v. Ministry of Gender, Children andSocial Protection; vi. Ministry of Water Resources,Works and Housing; vii.Ministry of Education; viii. Controller and AccountantGeneral's Department; ix. National Health InsuranceAuthority; and x. Office of the Head of CivilService.
The witnesses who appeared beforethe Committee subscribed to the Oath ofa Witness and answered questionsrelating to the issues/queries raised bythe Auditor-General in his Report and onissues of general public interest. The Deputy Auditor-General, Mr YawAgyei Sifah, and a technical team from theAudit Service were also present at theCommittee's sittings to assist in itsdeliberations.
Acknowledgement The Committee is grateful to allofficials who were present at theCommittee's sittings to assist in itsdeliberations. The Committee alsoexpresses its appreciation to the DeputyAuditor-General and his technical team fortheir immense assistance to the Committeeduring the examination of the Report. The Committee further extends itsappreciation to the German DevelopmentCooperation (GIZ) and the United StatesAgency for International Development(USAID), for supporting the activities ofthe Committee and the media forbroadcasting its proceedings.
Reference documents The Committee made reference to thefollowing documents during itsdeliberations:
i. The 1992 Constitution of theRepublic of Ghana; ii. The Standing Orders of theParliament of Ghana; iii. The Financial AdministrationAct, 2003 (Act 654); iv. The Audit Service Act, 2000 (Act584); v. The Financial AdministrationRegulations, 2004 (L.I. 1802).
Purpose and scope of the audit The purpose of the audit was to assesshow efficiently Multi-Donor BudgetarySupport transfers conformed to theprocedures agreed upon in theMemorandum of Understanding (MoU)
signed between Development Partners(DPs) and the Ministry of Finance, and toindicate to DPs how Multi-DonorBudgetary Support (MDBS) funds arespent. The audit reviewed all MDBS inflowsthat were received in the years 2010, 2011and 2012 respectively, and assessed thecontrols established by the Ministry ofFinance to ensure that inflows were:
a. received by the Bank of Ghana; b. converted at the prevailingexchange rate; c. acknowledged with receipts; and d. accurately recorded and reportedupon by the Controller andAccountant-General in thePublic Accounts of Ghana.
Observations and recommendations Acknowledgement of MDBS inflows
Transfers made into the ConsolidatedFund through the Bank of Ghana (BoG)by DPs under the MDBS programme forthe three-year period from 2010 to 2012amounted to GH¢ 1,830,042,933.26. TheCommittee observed that during the periodunder review, 53.16 per cent of the totaltransfers made, totaling GH¢972,785,355.88,were not acknowledged by the Ministry ofFinance. According to the Auditor-General,failure by the Ministry of Finance toacknowledge MDBS inflows from variousDPs was contrary to the FrameworkMemorandum signed between theGovernment of Ghana and DPs andsection 28 of the Financial AdministrationRegulations, 2004, (L.I. 1802). Section 28of the Financial AdministrationRegulations, 2004, (L.I. 1802), requires the