The General Auditing Commission (GAC) under the astute leadership of Auditor General P. Garswa Jackson has released reports of 102 audits conducted by the Commission of various agencies of the Liberian Government.
According to the report, there was a total of 102 audits (33 Financial Statement Audits, 16 Compliance Audits, 6 Performance Audits, 46 Project Audits and 1 Information Technology Audit) conducted and 181 audit reports published, 83 of which were on Financial Statement Audits, 44 on Compliance Audits, 6 on Performance Audits, 47 on Project Audits, and 1 on Information Technology Audit.
In these published reports, there are 1,937 audit findings, 842 of which were on financial statement audits, 424 on Compliance Audits, 165 on Performance Audits, 419 on Project Audits and 87 on Information Technology Audit.
The report noted that there were also 2,593 audit recommendations, 1,186 of which were on Financial Statement Audits, 726 on Compliance Audits, 98 on Performance Audits, 505 on Project Audits, and 78 on Information Technology Audit.
It furthered that there was a total of 2,593 audit recommendations followed-up on. Of this total according to the Commission, 10% was fully implemented (256 recommendations), 7% was partially implemented (173 recommendations) and no implementation amounted to 83%
(2,164 recommendations).
The report also added that there was 14% (49 recommendations) of total audit recommendations in reports published in 2020 (September- December) that were implemented, with 43 fully implemented and 12 partially implemented.
GAC noted that the percentage of implementation of audit recommendations in audit reports published for 2021 increased to 15% (108 recommendations), with 77 fully implemented and 62 partially implemented.
In 2022, audit reports published accounted for 12% (185.5 recommendations) implementation of the total recommendations (of 1,489), with 136 fully implemented and 99 partially implemented. "For audit reports followed-up on as published in 2023, we observed no evidence of implementation of audit recommendations," the report added.
According to the GAC report, LEC (Projects) achieved significant implementation of audit recommendations with 81% (23.5 recommendations) implementation of total audit recommendations (of 29). Four (4) entities (Liberia Land Authority, Liberia Maritime Authority, National Public Health Institute of Liberia and Liberia Broadcasting System) achieved average implementation of 62%.
It also noted that six (6) government entities (National Investment Commission, Liberia Revenue Authority, NASSCORP, Ministry of Justice, National Human Rights Commission and JFK Medical Center) had slow implementation of 46%, while Twenty-two (22) government entities had poor implementation of 12% and fifteen (15) did not provide evidence of implementation of audit recommendations which constituted 83% (2,164 recommendations) of the total audit recommendations (of 2,593).
On the categories of audit findings and recommendations, the report averred that audit findings and recommendations in audit reports were in the following categories including financial Issues, financial reporting irregularities, financial variances/discrepancies, budget and budget performance irregularities, bank accounts irregularities, bank loans irregularities, bank reconciliation discrepancies, general reconciliations discrepancies, chart of accounts irregularities, books of accounts irregularities, no/inadequate accounting software, revenue and receipts irregularities, income taxes irregularities, social security contributions, irregularities, goods and services taxes irregularities, payment voucher and payment authorization irregularities, payrolls irregularities, petty cash irregularities, inadequate supporting documents for expenditures processed.
Others are, no supporting documents for expenditures processed, third party payments, receivables and payables management irregularities, debt management irregularities, governance issues, non-compliance with Laws and Regulations, no/inadequate policy documents (policies and procedures), no/inadequate organizational structures, no/inadequate segregation of duties, no/inadequate strategic plan, no/inadequate operational plans, no/inadequate board, no/inadequate audit committee.
Still other include, no/inadequate Internal Audit, no/inadequate Budget Committee, no/inadequate procurement committee, no/inadequate risk management, lack of implementation of prior audit recommendations, internal control issues, human resource and personnel management irregularities, fixed assets irregularities, inventory/storeroom management irregularities, logistics and fleet (Vehicle, Generator, and Machinery) Management Irregularities, no/Inadequate Records Room, activities and performance reporting irregularities, compliance issues, non-retirement of foreign and local travels, procurement management irregularities, no/inadequate monitoring and evaluation and project management irregularities.
Also included are, Road Maintenance Irregularities, Mining Operations Irregularities, Prison Management Irregularities, Information Technology (IT) Issues, No/Inadequate IT Policy, No/Inadequate IT Committee, No/Inadequate IT Plans, No/Inadequate IT Infrastructure, and No/Inadequate Environmental Control.
Based on the gravity and consequences of the low implementation of audit recommendations of the Auditor's General Reports, the Commission proposed the following recommendations that include; that the Public Financial Management Regulation is amended to include the following:
Public hearings should be conducted by the PAC within one month of the issuance of the Auditor's General Report; that a recommendation report from the PAC to the President detailing the consequences for noncompliance and misappropriation is completed and submitted within three months after the conduct of public hearings; that the President performs the needed consultations and facilitate the implementation of the PAC's recommendations within three months of the receipt of the PAC's report.
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It also added that Management liaises with the relevant authorities to facilitate the establishment of functional audit committees at all entities of Government. The Audit Committees should be capacitated with individuals with relevant qualifications and experience and made fully functional evidenced by the review of financial reporting, examination of the implementation of internal and external audit recommendations and documentation of meetings' minutes and periodic reports.
It also recommended that Management of all government entities prioritize the implementation of audit recommendations by appointing specific focal persons or standing committees, develop corrective action plans to facilitate the implementation of audit recommendations and perform periodic monitoring and evaluation activities; that Management should liaise with the GAC Audit Follow-up Team for the harmonization of corrective action plans, review of the status of the implementation of audit recommendations and subsequent update of the audit recommendation trackers.
Among other things, the report also recommended that the Office of the President fully operationalize the implementation of the proposed amendment to the PFM Regulations when adopted.
