The Auditor-General of Ghana is a critical institution in the country's accountability framework, responsible for auditing public accounts and ensuring that public funds are used properly. The office is established under Articles 184, 187, and 286 of the 1992 Constitution, with the Audit Service Act, 2000 (Act 584) providing the governing law. The Auditor-General's mandate is broad, covering all public accounts of Ghana, including courts, central and local government, public universities, and public corporations.
The Auditor-General's core mandate is to audit everything public, including the public accounts of Ghana, public offices, courts, central and local government administrations, public universities, and public corporations. The office also takes custody of written declarations of assets and liabilities filed by persons holding public office, supporting the broader integrity framework for public officials. The Auditor-General's role is not to prosecute, but to make recommendations and issue certificates, with prosecution handled by the Attorney-General's Department.
The audit process follows a structured path, with public institutions preparing financial statements in the form directed by the Auditor-General. The Auditor-General's office reviews transactions, assesses the control environment, and tests whether spending complied with the law. Observations are communicated to the audited entity through Audit Observation Memoranda, with management responses considered before conclusions are finalised.
The Auditor-General has the power to disallow and surcharge, with the ability to disallow expenditure that is contrary to law and surcharge the person responsible for incurring or authorising the expenditure. This power also applies to sums not properly brought into account, and to losses or deficiencies caused by negligence or misconduct. A surcharge certificate creates a personal liability, with the Auditor-General able to withdraw a surcharge if a satisfactory explanation is received.
The Auditor-General's reports are submitted to Parliament, which debates them and refers them to the Public Accounts Committee for public hearings. The Public Accounts Committee invites audited entities and persons cited in the reports to answer questions, with the Committee's hearings leading to recoveries of misused funds and recommendations for prosecution. Audited institutions are required to establish Audit Report Implementation Committees to ensure implementation of matters in all audit reports.
The independence of the Auditor-General's office is critical to its effectiveness, with the office not under the direction or control of any person or authority in the performance of its functions. The Auditor-General is appointed by the President acting in consultation with the Council of State, with removal only possible for stated misbehaviour, incompetence, or inability to perform functions due to infirmity.
The Auditor-General's office can also conduct special audits on the request of Parliament or the President, in addition to routine annual audits. The office's administrative expenses, including salaries, are charged on the Consolidated Fund, ensuring that it does not depend on annual discretionary budget approvals from the executive for its core operations. A Supreme Court judgment has emphasised that functional independence is an indispensable prerequisite for the proficient execution of the Auditor-General's duties.
Key points
- The Auditor-General's office plays a crucial role in ensuring public accountability in Ghana.
- The office has the power to audit public accounts, disallow expenditure, and surcharge responsible persons.
- The independence of the Auditor-General's office is critical to its effectiveness.
