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Momodou
Denmark
11832 Posts |
 Posted - 13 Jul 2007 : 22:33:14
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Foroyaa Editorial
THE FINANCE AND PUBLIC ACCOUNTS COMMITTEE AND THE 800 MILLION DALASI UNACCOUNTED FUND
In his report to the Public Accounts Committee, the Permanent Secretary is said to have recalled that the unaccounted 800 million dalasi is undermining the possibility of having a realistic opening balance for government accounts to loss records.
This became a subject of controversy during the review of the Auditor General’s Report covering the period 1991 – 1999.
Readers could recall that the Statement of Accounts ranging from June 1992 to 1999 could not be subjected to auditing until 2005 because of the failure to present annual Statement of Accounts to the Auditor General as required by the Constitution.
When the Finance and Public Accounts Committee met in October 2005 to review the report of the Auditor General, it was observed that the long backlog in submitting statements of accounts had made it impossible for the Accountant General’s Department to prepare good quality financial statements. It was claimed that there was a loss of institutional memory and loss of accounting documents.
This gave birth to attempts to use balances provided by the Central Bank in the preparation of the statement of accounts by the Accountant General’s Department.
Consequently, apart from the 800 million that could not be accounted for, the Auditor General discovered significant shortfalls between the accounts which the financial statements implied are held and monies actually in the government bank account or held as investment for each year from 1992 – 1999.
The shortfalls were as follows:
Year Shortfall (dalasis)
1992 - 93 D328, 778,093,
1993 - 94 D391, 117,866
1994 - 95 D490, 436,106
1995 – 96 D568,835,496
1996 – 97 D641, 672,515
1997 D718, 819,547
1998 D781, 888,009
1999 D790, 191,304
The Auditor General indicated that the only plausible explanations for the differences are that:
· unauthorised expenditure has occurred and/or
· expenditure has been made in the bank accounts which has not passed through the fund, clearance or deposit accounts and/or
That means that the Department of State for Finance should focus on the decrease of unauthorised expenditure.
This is the cancer worm which will wreck any proper system of accounting if left unaddressed.
The Public Accounts Committee needs to have asked the Auditor General to review the two reports presented so far in 1998 and 2005 and give a report to the Committee of all the shortcomings of the past and means to avert them.
The Finance and Public Accounts Committee would have benefited from such information in order to prepare itself for scrutinising the audit report on Public Enterprises.
The Constitution has given the Finance and Public Accounts Committee powers to scrutinise Central government accounts and those of Public Enterprises. This is a round the year task. This Committee is one that should never have spare time throughout the year.
After all the mistakes which are yet to be fully rectified, it is too early to sing praises to the Department of State for Finance.
Source: Foroyaa Newspaper Burning Issue
Issue No. 81/2007, 13 – 15 July 2007
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A clear conscience fears no accusation - proverb from Sierra Leone |
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kobo
United Kingdom
7765 Posts |
Posted - 19 Jul 2007 : 15:58:51
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The period in question covers 1991 to 1999. Thats two eras between pre 22nd July 1994 and post 22nd July 1994. There are lots of factors that account to these losses and mis-appropriations and the commisions of enquiries didn't help also aftermath of the coup. Corruption and accountability generally affects all sectors of within public dormain. The money is gone into private use, other personal developments and political use. Therefore its a national liability and I would recommend that it to be considered A NATIONAL DEBT and incorporated into the accounts and seek to finance its liquidation gradually with professional accountaing standards just like ordinary government loans and grants.
Thereafter its easy to cover the backlog of bringing the accounts up-to-date and make the Public Accounts Committee to became effective compliance with the constitution. That approach is to set-up a TASK FORCE; team of Professionally qualified accountants to contruct the accounts and financial statements. Its going be a TOP- DOWN APPROACHi.e. to start from the latest current period of accounts and move towards 1999 financial or fiscal year. Initially its through BALANCE SHEET APPROACH towards preparation of other financial statements (Income or Revenue & Expendirture) and other statements of accounts. Adjustments raised through the in-complete records to reguarise and FINALISE THE ACCOUNTS AND LIQUIDATION OF THE NATIONAL DEBT IN QUESTION!
Have your say as professional accountants 
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toubab1020
12314 Posts |
Posted - 19 Jul 2007 : 16:33:41
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| As a non accountant,your solution makes perfect sense,but as I said I am not an accountant ,its too simple,and accounts are not simple nor do they make sense !! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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jambo
3300 Posts |
Posted - 19 Jul 2007 : 17:45:39
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| surely another way would be to speak to anyone involved in the departments concerned. someone will remember the records. follow the paper trail/personal input of that era. people will talk. |
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toubab1020
12314 Posts |
Posted - 19 Jul 2007 : 20:39:19
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| I wonder ,if you want to keep your paid job,you are going to keep your mouth shut tight! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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