Ghana has established new Audit Committees for its Metropolitan, Municipal, and District Assemblies (MMDAs) across the country. These committees are specifically tasked with enhancing accountability, transparency, and the careful management of public resources. This nationwide exercise aims to strengthen financial governance at the local government level.
The committees will ensure that internal controls remain effective and that any financial weaknesses are identified and addressed promptly. This initiative is vital for the efficient delivery of essential services and development programs to communities. It also supports the broader decentralisation process in Ghana.
This move fits into Ghana's ongoing efforts to improve public financial management and combat corruption. Previous audits have often highlighted significant financial irregularities and mismanagement within public institutions. The establishment of these committees reflects a renewed commitment to fiscal discipline and good governance. It also aligns with the Public Financial Management Act, 2016 (Act 921), which mandates such oversight bodies.
Mr. Alhassan Fuseini, representing the Internal Audit Agency (IAA), emphasised the importance of these committees. He stated that the inauguration signifies a renewed commitment to strengthening accountability and internal controls. Mr. Fuseini highlighted the critical role MMDAs play in delivering services and managing resources. He stressed that functional Audit Committees are essential for efficient resource management and addressing weaknesses before they harm institutional performance.
The new committees will provide effective oversight of internal audit activities. They will review audit reports and monitor the implementation of audit recommendations. Their responsibilities also include ensuring that weaknesses in internal controls are properly addressed. This proactive approach aims to prevent financial mismanagement rather than just reacting to it.
Mr. Sumaila Ewuntomah Abudu, Chief Director of the Northern Regional Coordinating Council (NRCC), called the inauguration an important milestone. He noted its significance in strengthening accountability, transparency, internal controls, and risk management within local governance institutions. Mr. Abudu commended the IAA for organising this crucial exercise. He reiterated that effective audit systems are fundamental for proper management of public funds.
The establishment of these Audit Committees follows Section 86 of the Public Financial Management Act, 2016 (Act 921). This law requires covered entities to establish Audit Committees with specific legal functions. Furthermore, the Revised Guidelines for Effective Functioning of Audit Committees, 2023, issued by the Ministry of Finance, provide detailed provisions for their operation. These guidelines ensure the committees function effectively and consistently across all MMDAs.
The committees will also review internal audit work plans, internal audit charters, and risk assessment reports. This includes fiscal risk assessment reports, which are crucial for identifying potential financial dangers. They will ensure internal auditors have adequate access and can communicate with the committees beyond scheduled meetings. This open communication channel is vital for timely reporting and resolution of issues.
The NRCC assured the committees of continued support. It pledged to encourage MMDAs to uphold accountability, transparency, integrity, and value for money. Mr. Abudu cautioned that accountability must be an integral part of institutional culture, not an occasional exercise. He urged management teams to cooperate fully with the Audit Committees and Internal Audit Units. He also advised treating audit findings as tools for improving institutional performance. This comprehensive framework aims to embed financial discipline deeply within local governance structures, leading to better public service delivery and economic stability.