Ghana has inaugurated new Audit Committees for its Metropolitan, Municipal, and District Assemblies (MMDAs). These committees will strengthen internal controls and ensure the prudent management of public resources. The Internal Audit Agency (IAA) launched these committees in Accra, emphasizing a renewed commitment to accountability.
The committees' primary role is to oversee internal audit activities and review audit reports. They will also monitor the implementation of audit recommendations. This initiative aims to promptly address weaknesses in internal controls across local government operations. The goal is to prevent financial losses and recurring audit infractions.
This development fits into Ghana's broader efforts to improve public financial management. Increased public resources are now flowing directly to MMDAs. More than 80 percent of the District Assemblies Common Fund (DACF) is transferred to these local assemblies. This significant transfer necessitates stronger oversight and accountability mechanisms. Previous reports have highlighted challenges in financial discipline among MMDAs.
Mr. Bismark Aborbi-Ayitey, Deputy Director-General of the IAA, delivered a message on behalf of Director-General Mr. Conrad Z. Dumbah. He stated that the inauguration represents a commitment to transparency and good governance. Mr. Aborbi-Ayitey urged committee members to work independently and objectively. He stressed that every cedi entrusted to assemblies represents public trust and must be properly accounted for. He also advised members to study Sections 83 to 88 of the Public Financial Management (PFM) Act, which details their functions.
Madam Rita Naa Odoley Sowah, Deputy Minister of Local Government, Chieftaincy and Religious Affairs, underscored the need for stronger oversight. She highlighted that the increased flow of resources to MMDAs demands greater responsibility in accounting for funds. Madam Sowah urged the committees to monitor procurement, expenditure, and revenue mobilisation. They should also scrutinize contract management, asset management, and project implementation. She emphasized that audit recommendations only gain value through corrective actions. The Reverend Harry Nii Kwatei Owoo, Chief Director for the Greater Accra Regional Coordinating Council, added that effectiveness should be measured by improvements in assembly operations. He urged attention to risk management, internal controls, and financial management.
The establishment of these committees signals a push for enhanced financial discipline at the local level. Decision-makers will closely watch how these committees impact the efficiency and transparency of public spending. Improved accountability could lead to more effective use of the DACF for tangible development projects. This initiative could also reduce the incidence of financial irregularities often cited in Auditor-General's reports. The success of these committees will be crucial for public confidence in local governance. Their work will directly influence how public funds translate into community benefits. This move is expected to foster greater trust between citizens and their local government bodies.
Each Audit Committee comprises five mandated members. Three are independent members, with one nominated by the IAA and two by the Institute of Chartered Accountants, Ghana. The remaining two members are nominated by management. All members took an Oath of Office and an Oath of Secrecy. They also completed conflict-of-interest declarations as part of the inauguration process. This structure aims to ensure impartiality and professional integrity in their oversight duties. The committees are expected to bring a new level of scrutiny to financial operations. Their mandate covers a wide range of financial activities, from revenue collection to project execution. This comprehensive approach is designed to plug potential loopholes and ensure compliance with financial regulations. The long-term impact will be a more robust financial management system across all MMDAs, fostering sustainable development.