29 March 2014

Tanzania: Value-for-Money Approach Improves Financial Discipline

THE adopted value-for-money approach in verification of the public expenditure continues to instil sense of financial discipline as attested by the Controller and Auditor General (CAG), Mr Ludovick Utoh in Dar es Salaam.

The CAG made the observation at the State House when submitting to President Jakaya Kikwete, the Annual General Report of the Audited Accounts of the Public Authorities and Other Bodies for the financial year 2012/2013.

He said the submission was according to Article 143 (4) of the Constitution of the United Republic of Tanzania of 1977, that allows the CAG to express a professional opinion on the financial statements of the Public Accounts, with recommendations for appropriate action against any noticeable anomalies.

"The report, both in English and Kiswahili versions focuses on five major areas. These include the Central Government, Local Government Authorities, Parastatal Organisations, funded projects and Financial prudence," Mr Utoh explained.

Receiving the report, President Kikwete commended the CAG and the associates for timely submission of the report, which sheds light on the financial management by public offices and other bodies with corresponding recommendations.

"On behalf of the government I would like to commend you (Office of the CAG) as Value-for-Money Auditing of the Public Accounts has improved the situation. There were serious problems in financial management in the past. Keep up the good job," Mr Kikwete said.

He said his office would act promptly to make sure that copies of the report reach the appropriate office, mainly the minister of finance and the Prime Minister's Office as Accounts for Local Government Authorities fall under this office.

The CAG is mandated to conduct both financial and performance audits of public accounts (both Central and Local) including the audit of the financial statements of all Public Authorities and other Bodies as defined in Section 37 of the Public Finance Act No. 6 of 2001 (revised 2004) amended by the Public Audit Act No. 11 of 2008.

The office is also empowered to conduct special audits and audit investigations when required to do so which empowers the CAG to make recommendations.

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