In order to strengthen fiscal restraint and improve accountability in public financial management (PFM), the government of Ghana has introduced two frameworks for emergency expenditure and audit.
Inspired by challenges to expenditure during the COVID-19 pandemic, the tracking and auditing frameworks aim to strengthen government machinery to respond effectively to emergencies and strictly adhere to PFM Acts.
The Ministry of Finance launched two tools on Monday in Accra, Ghana; Emergency Expenditure Management Guidelines and Audit Recommendations Implementation and Follow-up Instructions for Public Institutions.
Ken Ofori-Atta, Minister of Finance, said in a speech that the move was part of critical steps towards making government more accountable to citizens.
He explained that the frameworks were “designed to provide a clear, transparent framework for how we respond to crisis and uphold fiscal discipline in public emergencies, as well as improve public accountability.”
“The guidelines present procedures and internal controls that will direct service delivery units on the means to access, manage, and account for funding during an emergency with efficiency and transparency, while ensuring compliance with the various requirements of the PFM laws,” the Minister said.
“Ultimately, our collective ambition must be to create an environment where every financial decision is made with integrity, and where mistakes are not only identified but rectified,” Mr Ofori-Atta added.
While some frameworks exist, according to Madam Eva Mends, Chief Director of the Ministry of Finance, it is critical to take additional steps to strengthen accountability frameworks in order to prevent debt accumulation.
She expressed confidence in the frameworks’ ability to reduce discretionary spending during emergencies and improve public resource management.
The Director General of Internal Audit, Ghana, Dr Eric Oduro Osae, stated that the implementation of the tracking tools would help reduce irregularities in public institutions and resources.
He stated that some fiscal measures taken by the government had resulted in an increase in public expenditure, and that the two frameworks, if effectively implemented, would improve public financial management and accountability even further.
Dr. Oduro Osae cited as examples the irregularities of Colleges of Education and Pre-University Educational Institutions in 2022, which were reduced by 58.6 percent over that of 2021, amounting to GHS10,821,146.02, and the operations of Ministries, Agencies, and Departments, which were reduced by 30.6 percent.
Others included a 13.86% reduction in public corporation and other statutory institution irregularities and an 18.9 percent reduction in the use of the District Assemblies Common Fund for 2022.
“Follow up and tracking would in addition to bringing procedural clarity in the implementation of audit recommendations, improve coordination and reduce duplicity among state institutions in ensuring that audit recommendations are implemented to the later,” he noted.