AUDIT SERVICE ACT - 2000 (ACT 584)

    • (1) The Audit Service in existence immediately before the commencement of this Act is hereby continued in existence subject to the provisions of this Act.

      (2) The Audit Service referred to in this Act as "the Service", shall continue to form a part of the Public Services of Ghana.

    • The members of the Service are

      (a) the Auditor-General; and

      (b) the other persons employed in the Service.

    • (1) The governing body of the Service shall be the Audit Service Board referred to in this Act as "the Board".

      (2) The Board shall consist of

      (a) a chairman and four other members appointed by the President, acting in consultation with the Council of State;

      (b) the Auditor-General; and

      (c) the Head of the Civil Service or his representative.

      (3) A member of the Audit Service Board, other than the Auditor-General or the Head of the Civil Service or his representative, may be removed from office by the President, acting in accordance with the advice of the Council of State for inability to perform the functions of his office arising from infirmity of mind or body or for any other sufficient cause.

    • (1) The Board shall

      (a) determine the structure and technical expertise required for the efficient performance of the functions of the Service;

      (b) ensure that the auditing activities of the Audit Service as spelt out in this Act are carried out in accordance with best international practices;

      (c) appoint officers and other employees of the Service other than the Auditor-General; and

      (d) determine the terms and conditions of service of officers and other employees of the Service other than the Auditor-General.

      (2) In pursuance of subsection (1) the Board shall hold consultation with the Public Services Commission but final decision on any matter is subject to the approval of the Board.

      (3) The Board may delegate to the Auditor-General or any officer of the Service or a committee of the Board, the appointment of such category of staff of the Service as the Board may determine.

    • (1) A member of the Board other than the Auditor-General and the Head of Civil Service shall hold office for a period not exceeding three years and is eligible for re-appointment but no such member shall be appointed for more than three terms in succession.

      (2) An existing member of the Board other than an ex-officio member ceases to hold office on the reconstitution of the Board.

      (3) Where a member of the Board resigns, dies, is removed from office or is for any reason unable to act as a member of the Board, the chairman shall notify the President of the vacancy and the President shall in consultation with the Council of State appoint another person to hold the office for the unexpired portion of the member's term of office.

      (4) A member of the Board may at any time resign his office in writing addressed to the President through the chairman of the Board.

      (5) A member of the Board who is absent from three consecutive meetings of the Board without sufficient cause ceases to be a member of the Board.

    • (1) The Board shall ordinarily meet for the transaction of business at such time and at such place as the Board may determine but shall meet at least once in two months.

      (2) A special meeting of the Board shall be called upon the written request of the chairman or by a majority of the members of the Board addressed to the secretary to the Board.

      (3) At any meeting of the Board the chairman shall preside and in his absence, a member of the Board elected by the members present from among their number shall preside.

      (4) A question for decision shall be determined by a simple majority of the members present and voting and where there is equality of votes the person presiding shall have a second or casting vote.

      (5) The quorum at a meeting of the Board shall be four including the Auditor-General or in the absence of the Auditor-General, the person acting on behalf of the Auditor-General.

      (6) The validity of any proceedings of the Board shall not be affected by a vacancy in its membership or by any defect in the appointment or qualification of a member.

      (7) The Board may co-opt a person to attend a Board meeting but that person shall not vote on any matter for decision by the Board.

      (8) A member of the Board who has an interest in any contract, application or other transaction for consideration by the Board shall disclose verbally or in writing the nature of his interest and is disqualified from participating in any deliberation of the Board in respect of the contract, application or other transaction.

      (9) A member who contravenes subsection (8) shall be removed from the Board.

      (10) Subject to this section, the Board shall determine the procedure for its meetings.

    • (1) The Board may appoint committees consisting of members of the Board or of members and non-members to exercise any of its functions.

      (2) The chairman of a committee of the Board shall be a member of the Board.

      (3) A committee of the Board may co-opt such person as it may determine to attend its meetings.

      (4) A committee of the Board shall determine the procedure for its meetings.

    • (1) The Board may engage the services of such consultants and other experts as it may consider necessary for the efficient discharge of the duties of the Service.

      (2) The consultants and experts shall be engaged on such terms and conditions as the Board may determine.

    • The members of the Board shall be paid such allowances as the President may determine.

    • (1) There shall be an Auditor-General who shall be appointed by the President acting in consultation with the Council of State.

      (2) The office of Auditor-General shall be a public office.

      (3) A person appointed to be the Auditor-General shall, before entering upon the duties of his office, take and subscribe the Oath of the Auditor-General set out in the Second Schedule to the Constitution.

      (4) The Auditor-General shall retire after attaining the age of sixty years but may be engaged for a limited period of not more than two years at a time but not exceeding five years in all and upon such other terms and conditions as the President acting in consultation with the Council of State shall determine.

      (5) The salary and allowances payable, and the facilities and privileges available to the Auditor-General shall be determined by the President on the recommendations of a committee of not more than five persons appointed by the President, acting in accordance with the advice of the Council of State.

      (6) The salary and allowances payable to the Auditor-General shall be a charge on the Consolidated Fund.

      (7) The salary and allowances payable to the Auditor-General, his rights in respect of leave of absence, retiring award or retiring age shall not be varied to his disadvantage during his tenure of office.

      (8) The provisions of article 146 of the Constitution relating to the removal of a Justice of the Superior Court of Judicature from office shall apply to the Auditor-General.

      (9) The Auditor-General may at any time resign his office in writing addressed to the President.

    • (1) The public accounts of Ghana and of all public offices, including the courts, the central and local government administrations, of the Universities and public institutions of like nature, of any public corporation or other body or organisation established by an Act of Parliament shall be audited and reported on by the Auditor-General.

      (2) For the purposes of subsection (1), the Auditor-General or any person authorised or appointed for the purpose by the Auditor-General shall have access to all books, records, returns and other documents including documents in computerized and electronic form relating to or relevant to those accounts.

      (3) The public accounts of Ghana and of all persons and institutions referred to in subsection (1) including computerized financial and accounting systems and electronic transactions shall be kept in such form as the Auditor-General shall approve and shall be subject to review by the Auditor-General.

      (4) An internal auditor of an organisation or body to which subsection (1) applies shall submit a copy of each report issued as a result of internal audit work carried out to the Auditor-General.

      (5) All financial and accounting systems in respect of the accounts provided under subsection (1) shall be subject to prior approval of the Auditor-General and any change in any such system shall be notified to the Auditor-General and shall be subject to prior approval before implementation.

      (6) Any head of a public institution or other body subject to auditing by the Auditor-General who fails to comply with subsection (5) is liable to be surcharged with the cost of any loss occasioned by defective or deficient internal controls of auditing.

    • (1) The Bank of Ghana shall, not later than three months

      (a) after the end of the first six months of its financial year; and

      (b) after the end of its financial year,

      submit to the Auditor-General for audit, a statement of its foreign exchange receipts and payments or transfers in and outside Ghana.

      (2) The Auditor-General shall, not later than three months after the submission of the statement referred to in section (1) submit his report to Parliament on the statement.

    • The Auditor-General shall examine in such manner as he thinks necessary the public and other government accounts and shall ascertain whether in his opinion

      (a) the accounts have been properly kept;

      (b) all public monies have been fully accounted for, and rules and procedures applicable are sufficient to secure an effective check on the assessment, collection and proper allocation of the revenue;

      (c) monies have been expended for the purposes for which they were appropriated and the expenditures have been made as authorised;

      (d) essential records are maintained and the rules and procedures applied are sufficient to safeguard and control public property; and

      (e) programmes and activities have been undertaken with due regard to economy, efficiency and effectiveness in relation to the resources utilised and results achieved.

    • (1) In respect of the accounts of a statutory corporation, a state enterprise or a public commercial institution operating under its own enactment, the Auditor-General or any person appointed by him shall upon the examination of the accounts of the body or institution, express his opinion as to whether the accounts present fairly financial information in accordance with the applicable statutory provisions, stated accounting policies of the Government and is in accordance with generally accepted accounting standards and essentially consistent with that of the preceding year.

      (2) The Auditor-General or any person appointed by the Auditor-General to audit the accounts of statutory corporations shall in addition to the audit report draw attention to the following

      (a) the profitability, liquidity, stability and solvency of the corporation and also the performance of the shares of the corporation on the capital markets, where relevant;

      (b) whether there was delay in payment of government portion of any declared dividend, if any, into the Consolidated Fund;

      (c) any significant cases of fraud or losses and the underlying causes;

      (d) any internal control weakness noted; and

      (e) the general corporate performance indicating

      (i) achievement against set targets and objectives; and

      (ii) whether the finances of the body have been conducted with due regard to economy, efficiency and effectiveness having regard to the resources utilised.

    • The Auditor-General shall, upon receipt of the annual statements of public accounts required, under sections 40 and 41 of the Financial Administration Decree, 1979 (S.M.C.D. 221), to be made by the Controller and Accountant-General, examine the statement and certify whether in his opinion the statements present fairly financial information on the accounts in accordance with accounting policies of the Government and consistent with statements of the preceding year in accordance with best international practices, and may state such reservation or comment that he considers necessary.

    • The Auditor-General may in addition to the audit of public accounts, carry out in the public interest such special audits or reviews as he considers necessary and shall submit reports on the audits or review undertaken by him to Parliament.

    • (1) The Auditor-General shall specify to the appropriate head of department or institution the amount due from any person upon whom he has made a surcharge or disallowance and the reasons for the surcharge or disallowance.

      (2) A sum specified by the Auditor-General to be due from any person shall be paid by that person to the department or institution as the case may be, within 60 days after it has been so specified.

      (3) A person aggrieved by a disallowance or surcharge made by the Auditor-General may appeal to the High Court not later than the expiration of 60 days prescribed in subsection (2).

      (4) In accordance with article 187(10) the Rules of Court Committee may, by constitutional instrument, make Rules of Court for the purposes of subsection (3) of this section.

      (5) Any sum which is lawfully due under this section shall, on civil proceedings taken by the Head of Department in a court be recoverable as a civil debt and where the person surcharged is in receipt of remuneration from government or any institution, the remuneration shall be attached to the extent of the sum lawfully due.

      (6) In any proceedings for the recovery of that sum a certificate signed by the Auditor-General shall be prima facie evidence of the facts certified.

      (7) The Auditor-General may with the prior approval of Parliament revoke any surcharge made under this section.

    • (1) In the performance of his functions under this Act or any other law the Auditor-General

      (a) shall not be subject to the direction or control of any other person or authority;

      (b) may disallow any item of expenditure which is contrary to law and surcharge

      (i) the amount of any expenditure disallowed upon the person responsible for incurring or authorising the expenditure;

      (ii) any sum which has not been duly brought into account, upon the person by whom the sum ought to have been brought into account; or

      (iii) the amount of any loss or deficiency, upon any person by whose negligence or misconduct the loss or deficiency has been incurred.

      (2) Paragraph (a) of subsection (1) shall not preclude the President, acting in accordance with the advice of the Council of State, from requesting the Auditor- General in the public interest, to audit, at any particular time, the accounts of any such body or organisation as is referred to in section 11(1).

    • The Auditor-General shall in the audit of accounts under this Act adhere to methods that are consistent with emerging practices in governmental auditing such as environmental and forensic audits adopted by the International Organisation of Supreme Audit Institutions and other internationally recognised bodies.

    • (1) The Auditor-General shall, within six months after the end of the immediately preceding financial year to which each of the accounts mentioned in this Part relates, submit his report to Parliament and shall, in the report, draw attention to any irregularities in the accounts audited and to any other matter which in his opinion ought to be brought to the notice of Parliament.

      (2) Without limiting the scope of subsection (1), the Auditor-General in his report to Parliament on the public accounts shall draw attention to any case in which he has observed that

      (a) an officer or employee of Government has wilfully or negligently omitted to collect or receive any public money due to the Government;

      (b) any public money was not duly accounted for and paid into the Consolidated Fund or other designated public account;

      (c) an appropriation was exceeded or was applied for a purpose or in a manner not authorised by law;

      (d) an expenditure was not authorised or properly vouched for or certified;

      (e) there has been a deficiency through fraud, default or mistake of any person;

      (f) applicable internal control and management measures are inefficient or ineffective;

      (g) the use or custody of property, money, stamps, securities, equipment, stores, trust money, trust property or other assets has occurred in a manner detrimental to the State;

      (h) resources have not been used with due regard to economy, efficiency and effectiveness in relation to the results attained;

      (i) in the public interest, the matter should be brought to the notice of Parliament.

    • Parliament shall debate reports of the Auditor-General on the public accounts of Ghana, the statement of foreign exchange receipts and payments of the Bank of Ghana and other special audits and shall appoint where necessary, in the public interest, committees to deal with any matters arising from the report.

    • The Auditor-General may whenever Parliament so requests and may, of his own motion inquire into and report on any matter relating to

      (a) the financial affairs of the Government or public property; and

      (b) any person or organisation in receipt of financial aid from the Government or in respect of whom financial aid from the Government is sought.

    • (1) The Auditor-General shall publish his reports on the public accounts of Ghana and the statement of foreign exchange receipts and payments of the Bank of Ghana as soon as the reports have been presented to the Speaker to be laid before Parliament.

      (2) The Auditor-General shall submit copies of the published reports to

      (a) the Government Archivist;

      (b) all public and University libraries in Ghana;

      (c) the libraries of the Ghana Institute of Management and Public Administration (GIMPA) and the Management Development and Productivity Institute (MDPI);

      (d) members of the Board; and

      (e) any other institution approved by the Board.

    • The accounts of the office of the Auditor-General shall be audited annually and reported upon by an auditor appointed by Parliament.

    • The Board shall submit to the President and Parliament as soon as possible but in any event not later than eight months after the end of each financial year a report on the activities of the Service during the year to which the report relates.

    • The administrative expenses of the office of the Auditor-General including all salaries, allowances, gratuities and pensions payable to or in respect of persons serving in the Audit Service shall be a charge on the Consolidated Fund.

    • The Board shall at least two months before the end of the financial year submit to the President the estimates of the Service; and the President shall at least one month before the end of the financial year cause the estimates to be laid before Parliament without revision but with any recommendations that the President may make on them.

    • (1) The Auditor-General may require any organisation or body subject to audit by the Auditor-General to make available while the audit is being carried on, suitable office accommodation for the proper conduct of the audit.

      (2) The Auditor-General shall require every person employed in his office who is to examine the accounts of an organization under this Act to comply with security arrangements applicable to, and to take any oath of secrecy required to be taken by persons employed in that organization and every such person shall comply with the requirement.

      (3) The Auditor-General shall station in Parliament House, permanent staff to enable Parliament carry out effectively its duties in respect of reports submitted by the Auditor-General to Parliament.

    • (1) The Auditor-General or any authorised person acting on his behalf shall, as a result of an audit conducted by him, issue observations to the Controller and Accountant-General or the management of the audited organisation and the comments made by the management shall be returned to the Auditor-General within 30 days after the receipt of the observation.

      (2) A person who fails or refuses to reply to the audit observations within the period specified in subsection (1) shall, if the Auditor-General so directs, have his emoluments and allowances withheld for so long as the person fails to comply.

    • (1) An institution, body or organisation which is subject to auditing by the Auditor-General shall establish an Audit Report Implementation Committee, comprising members of

      (a) the Governing Board or Council of that institution, body or organisation where such Council or Board exist by law; or

      (b) a Ministerial Committee for Ministries, Departments and Agencies of the Central Government, or

      (c) a Special Committee of the District Assembly.

      (2) It shall be the duty of the Audit Report Implementation Committee to ensure that the head of an institution, body or organisation to which subsection (1) applies

      (a) pursues the implementation of matters in all audit reports as well as the Auditor-General's reports endorsed by Parliament as well as financial matters raised in the reports of internal monitoring units in the institution, body or organisation; and

      (b) annually prepares a statement showing the status of implementation of recommendation made in all audit reports as well as the Auditor-General's reports which have been accepted by Parliament and any other related directives of Parliament.

      (3) The statement shall show remedial action taken or proposed to be taken to avoid or minimise the recurrence of undesirable features in the accounts and operations of the institution, body or organisation and the time frame for action to be completed.

      (4) The statement referred to in subsection (3) shall be endorsed by the relevant Minister and forwarded to Parliament, Office of the President and the Auditor-General within six months after Parliamentary decisions on the Auditor-General's report.

      (5) In the performance of its functions under this Act, an Audit Report Implementation Committee may co-opt any senior management personnel to serve on the Committee.

    • The Auditor-General may examine any person on oath on any matter pertaining to any account subject to audit by him.

    • (1) Except otherwise provided in this Act a person employed by the Service

      (a) may voluntarily retire from the Service at any time after attaining the age of 45 years; and

      (b) shall retire from the Service after attaining the age of 60 years.

      (2) Notwithstanding subsection (1) a person employed by the Service who has attained the age of 60 years may be eligible for engagement immediately after retirement by the Board on the recommendation of the Auditor-General for a limited period of not more than two years at a time but not exceeding five years in all.

      (3) A person who has retired from the Service shall be paid retirement benefits in accordance with the Constitution.

    • (1) Any person who

      (a) fails to produce for inspection by the Auditor-General or otherwise fails to give the Auditor-General access to any book, record, return or other document relating or relevant to any account to be audited by the Auditor-General, when so requested by the Auditor-General; or

      (b) fails to keep proper books of account or proper records in relation thereto when so required by the provisions of any enactment; or

      (c) gives to the Auditor-General any information which he knows to be false or which he has no reason to believe to be true; or

      (d) wilfully suppresses any information required by the Auditor-General in the performance of his functions under this Act or any other enactment; or

      (e) obstructs the Auditor-General in the performance of his functions under this Act or any other enactment,

      commits an offence and is liable on summary conviction to a fine not less than 500 penalty units or to imprisonment for a term not exceeding 2 years or to both.

      (2) For the purposes of subsection (1), "Auditor-General" includes any auditor acting under the direction of the Auditor-General.

      (3) Any member of the Audit Service who

      (a) demands or takes any bribe, gratuity, recompense or reward for the neglect or non-performance of his duty; or

      (b) wilfully fails to report to the Auditor-General any abuse or irregularity that comes to his notice in the course of his duties in relation to any accounts audited by him; or

      (c) makes any report to the Auditor-General which he knows to be false or which he has no reason to believe to be true,

      commits an offence and is liable on summary conviction to a fine not less than 500 penalty units or to imprisonment for a term not exceeding 2 years or to both.

    • (1) In the case of an offence committed under section 33(1) by a body of persons

      (a) where the body of persons is a body corporate, other than a partnership, every director and officer of that body corporate shall be deemed to be also guilty of that offence; and

      (b) where the body is a partnership every partner shall be deemed to be also guilty of that offence.

      (2) No person shall be deemed to be guilty of an offence under section 33(1) if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of the offence.

    • The Board shall, acting in consultation with the Public Services Commission, make Regulations by constitutional instrument

      (a) for the effective and efficient administration of the Audit Service; and

      (b) generally for carrying out the principles and purposes of this Act.

    • In this Act unless the context other wise requires-

      "financial aid" means grants, loans, guarantees and commodity aids.

      "Service" means the Audit Service.

    • The Financial Administration Decree, 1979 (S.M.C.D. 221) is amended as follows-

      (a) by the substitution for paragraph (c) of subsection (4) of section 47, the following-

      "(c) the libraries of the Ghana Institute of Management and Public Administration (GIMPA) and the Management Development and Productivity Institute (M.D.P.I.)".;

      (b) by the insertion after paragraph (c) of subsection (4) of the following-

      "(d) members of the Audit Service Board."

    • (1) The Audit Service Decree, 1972 (N.R.C.D. 49) is repealed by this Act.

      (2) Part V of the Financial Administration Decree, 1979 (S.M.C.D. 221) is hereby repealed.

      (3) The Public Officers (Auditor-General) Instrument, 1962 (L.I. 204) is hereby revoked.

      (4) Notwithstanding the repeal under subsection (1) any instrument made, directives given or appointments made under the repealed enactment and in force immediately before the date of the coming into force of this Act shall continue in force as if made or given under this Act.

      (5) Subject to the provisions of this Act, the Audit Service Board in existence immediately before the coming into force of this Act shall be the Board referred to in this Act.