Monrovia — The National Housing Authority (NHA) of Liberia is facing intense scrutiny following the release of an audit report detailing significant deficiencies in financial management for the fiscal year ending June 30, 2017.
The audit, covering the Period July 1, 2016 to June 30, 2017, conducted by the General Auditing Commission (GAC), has implicated the authority's former management, led by Hon. Prince A. Wreh, who currently serves as the Executive Chairman of the Liberia Special Economic Zones Authority.
The GAC report highlights stark inconsistencies between the reported figures in the NHA's financial statements and the accompanying explanatory notes.
For instance, the audit report indicated that the total authorized appropriation was stated as $1,757,000, yet the notes recorded amounts of $1,758,046.48 and $1,756,000. Furthermore, discrepancies were noted in reported wages, salaries, and employee benefits that did not align with figures outlined in the notes.
Additional critical issues revealed by the audit include unsupported revenue generation, a failure to remit national social security contributions, and a concerning absence of a cashbook or general ledger for the reviewed fiscal year. The NHA failed to conduct any bank reconciliations, resulting in a staggering variance of over $6 million between reported cash outflows and actual figures.
The report also pointed out the absence of essential documentation, including expenditure records and contracts, which the reports indicated that are vital for the accurate representation of the NHA's financial activities. Moreover, the lack of a functional audit committee and inadequate asset management policies were identified as significant risks that undermined the authority's financial integrity.
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In light of the findings, the then NHA management admitted to the errors and discrepancies raised in the audit, pledging to implement corrective measures. They committed to conducting a thorough review of their financial statements and reconciling all identified discrepancies moving forward.
The Auditor General in his report emphasized the importance of ongoing oversight to ensure the implementation of the recommendations, underscoring that accurate and reliable financial reporting is essential to maintaining public trust and effectively managing national resources.
As the NHA seeks to rectify these audit issues, the findings serve as a poignant reminder of the pressing need for robust financial management practices within public institutions to ensure accountability and transparency.
