Audit of theConsolidated Fund
2008
11 May 2010
Outline
• Why discuss the audit 2008?
• Role DPs in the accountability chain
• Issues arising from Audit 2008
• Issues for discussion
Why discuss the audit 2008
• Use of Country Systems: Audit is essential piece in accountability chain trust
• Audit provides information on:– quality of recording/accounting/reporting– quality of spending (targeting, performance,
efficiency)
• Legal implications and monitoring of systems performance
Role DPs in accountability chain
Accounting /Reporting by CAGD and MDAs
External AuditBy GAS
Discussion by Parliament
Follow up byCAGD / MDAs
Through ARICs
Prosecution byAttorney-General
Support to PFMreforms
StrengthenGAS
StrengthenPublic
Accounts Com.
StrengthenA-G
MDBS:- Justification for budget support
- Systemic improvements
Support to Civil Society
Audit 2008
• Qualified opinion:– Reconciliation between Public Accounts and MDA
information– Consolidated fund overstated by 410 mln in the Public
Accounts– Disputed loan balances of 676 mln– Inability to verify the transfer of 318 mln into
GoG/Vodafone escrow account
• Overspending of 30% against appropriated budget.
Weaknesses in a number of areas
– Quality of financial administration (e.g. financial statements)
– Management of public loans– Under- and overstatements of expenditures and
transfers (incl. MDBS!)– Management of debts– Unauthorised payments and non-disclosure– Discrepancies between MDA and CAGD– Overstatement of cash and bank balances– Vodafone
Issues for discussion
• ARIC response to 2008 recommendations
• Recurring issues:– Quality of financial statements– Reconciliation of financial data– Management of loans– Debt recording and management