The Auditor-General has reported significant misstatements and weaknesses in the 2024 Whole-of-Government Accounts (WGA). The report highlights an overstatement of Ghana’s public debt by GH¢138.91 billion, along with deficiencies in financial reporting and asset management. These findings are part of the Report of the Auditor-General on the Public Accounts of Ghana for the Year Ended December 31, 2024, which followed an independent audit of the government’s consolidated accounts prepared by the Controller and Accountant-General’s Department (CAGD) in accordance with the Public Financial Management Act, 2016 (Act 921).
The report indicates that the public debt figure reported in the WGA was significantly overstated. It recommends that the CAGD collaborate with the Ministry of Finance to conduct a comprehensive reconciliation to address both the overstatements and any omissions. Additionally, it reveals that GH¢74.24 billion, which was recorded as provisions for investments, should have been classified as impairment losses in accordance with International Public Sector Accounting Standard (IPSAS) 41.
The Auditor-General also urged the CAGD to enhance its quality assurance processes during consolidation to prevent such errors from recurring. Moreover, the audit uncovered that receivables for assessed but uncollected income tax and Value Added Tax (VAT) as of December 31, 2024, were not recognized in the accounts, which is contrary to the requirements of IPSAS 23. The report recommends closer coordination between the CAGD, the Ghana Revenue Authority, and the Ministry of Finance to ensure that revenue recognition aligns with the accrual basis.
In addition, the report found that the CAGD had not conducted impairment tests on non-financial assets, as required under IPSAS 21 and IPSAS 26, and urged the establishment of a formal process for regular asset assessments. The audit also flagged inconsistencies in Inter-Company Account balances, which stood at GH¢7.99 billion at the start of the year and GH¢8.55 billion at year-end, instead of being zero after consolidation, calling for immediate investigation and correction.
Another area of concern was the incomplete processing of transactions by covered entities through the Ghana Integrated Financial Management Information System (GIFMIS). The report called for strict enforcement of the PFM Act provisions, backed by capacity building, system upgrades, and sanctions for persistent non-compliance.
On public investments, the Auditor-General observed that disinvestments amounting to GH¢10.30 billion and new investments of GH¢19.25 billion lacked adequate narrative and note disclosures, depriving the public of key information on rationale, implications, and expected returns.
The report concluded that while the audit aimed to give an opinion on the government’s financial statements, the highlighted issues required urgent attention to enhance fiscal transparency, accuracy, and accountability in public financial management.
Source: myjoyonline
