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C.1. 70
Audit
Service Regulations, 2011
ARRANGEMENT
OF REGULATIONS
Regulation
Application
1.
Application
Matters
related to the Board and
corporate
goals of
the Service
1.
Notification of vacancy on the
Board
2.
Notification of end of tenure
3.
3
Meetings of the Board
4.Terms
and scope of activities of
committees
5.Engagement
of consultants and experts
6.Grounds
for the removal of a board
member
7.Corporate
governance
8.Internal
control and risk management
9.Policy
formulation and administration
of the Service
10.Corporate
plan
Matters
related to the Service
12.Structure
and responsibilities of the
Service
13.Performance
monitoring and quality control
14.Recruitment
and progression in the Service
15.Human
resource development
16.Report
on appointments
17.Qualification
for posts in the Service
18.Conditions
of service
19.Code
of ethics
20.Public
Complaints Unit
21.Discipline
in the Service
22.Prudent
use of resources
23.Awards
for exceptional performance
24.Facilities
and logistics
25.Retirement
and gratuity benefits
26.Calculation
of pension
Audits
27.External
auditing
28.Special
audits
29.Register
of persons and institutions
30.Settlement
of fees due to appointed persons
31.Selection
for audit bids
32.Fee
charging regime
33.Excessive
audit fees
34.Audit
observations and reporting
35.Consequence
of not responding to an audit
observation
36.Record
of officers who do not respond
to audit observations
37.Issue
of management letters
38.Record
of audit assignments
39.Record
of audit observations and
management letters
40.Accountability
report to Parliament
41.Contents
of the Auditor-General's annual
report
42.Audit
Report Implementation Committees
43.Monitoring
audit recommendations
Finances
of the Service
44.Administrative
expenses of the Service
45.Annual
estimates of the Service
46.Supplementary
expenditure of the Service
47.Bank
account of the Service
48.Limitations
on the Service
49.Accounts
and audit
50.Corporate
Performance Report by the Board
Miscellaneous
51.Tipping
off
52.Interpretation
Audit
Service Regulations, 2011
IN exercise
of the powers conferred on the
Audit Service Board acting in
consultation with the Public
Services Commission by article
189(3)(b) of the Constitution
and section 35 of the Audit
Service Act, 2000 (Act 584)
these Regulations are made this
15th day of February, 2011.
Application
Application
1. (1) These
Regulations apply to members of
the Audit Service, and to
individuals and institutions
engaged by the Auditor-General
for the purpose of discharging
the duties of the
Auditor-General under the
Constitution and the Audit
Service Act, 2000 (Act 584).
(2) Members
of the Service shall in matters
related to audit operations and
administration of the Service be
subject only to the direction of
the Board and shall not be
regarded as holding an office in
any Ministry, Department or
Agency.
Matters
related to the Board and
corporate goals of the Service
Notification
of vacancy on the Board
2. (1)
In the event of a vacancy in the
position of chairperson of the
Board, the Secretary to the
Board shall within seven days
communicate the vacancy to the
President who shall appoint a
chairperson in accordance with
article 189 (1) of the
Constitution.
(2) In the
event of a vacancy in the
position of a member of the
Board, the chairperson shall
within seven days communicate
the vacancy to the President who
shall appoint a member in
accordance with article 189(1)
of the Constitution.
Notification of end of tenure
3. The
chairperson shall notify the
President of the impending end
of the tenure of office of a
member of the Board six months
before the end of the tenure of
office.
Meetings
of the Board
4.
(1) The Board shall have at
least six regular meetings each
year, as provided under section
6(1) of the Act
(2) The Board
shall develop a calendar for its
regular meetings for the year.
Terms and
scope of activities for
committees
5.
The Board shall
(a)
determine the terms and scope of
activities for its committees,
and
(b)
establish a system to regularly
monitor the performance of the
committees
established
under section 7 of the Act.
Engagement
of consultants and experts
6. The
Board shall ensure due
compliance with the Public
Procurement Act, 2003 (Act 663)
when engaging consultants and
experts to assist in the
performance of functions
conferred on it by the
Constitution and the Act.
Gr-: ids
for the removal of a board
member
7. Subject to
the Constitution, a member of
the Board other than the
ex-officio member may be removed
from the Board by the President
acting on the advice of the
Council of State on the
following grounds:
(a) a
medical report showing the
inability of the member to
perform the functions of that
member and discharge the duties
of the Board because of
infirmity of mind or body;
(b) proven charges against a
member considered sufficient for
the removal of the member, after
applying due process of law and
observance of the rules of
natural justice; or
(c)
adverse findings from a
commission of enquiry appointed
by the President under article
278 of the Constitution.
Corporate
governance
8. (1)
The Board is responsible for the
corporate governance of the
Service and is ultimately
accountable and responsible for
the overall performance of the
Service.
(2) The Board
shall
(a)
develop a charter of its
responsibilities to be
disseminated to its
stakeholders, and
(b)
carry out activities that
promote and secure its
constitutional role in
(i) public
sector financial management, and
(ii) the accountability process
of the country.
(3) The Board
shall include in its activities
continuing education on the
relevance and necessity for a
Service which is politically,
administratively, financially
and operationally independent.
Internal
control and risk management
9. The Board
shall ensure that
(a)
effective, efficient and
transparent internal control and
risk management systems are
established within the Service,
and (b) periodic
assessment of the effectiveness
of the internal controls and
risk management systems is
undertaken by the Service and
the outcome reported to the
Board.
Policy
formulation and administration
of the Service
10.
(1) The Board shall formulate
policies for the administration
and management of the Service
and cause communication channels
to be established within the
Service, to ensure timely and
effective circulation of its
policies at all levels of the
Service.
(2) The Board
may establish links with
individuals, organisations and
associations in and outside the
country on the terms that the
Board considers appropriate to
ensure
(a)
the promotion of the effective
and efficient administration of
the Service; and
(b)
the due performance of auditing
activities by the Service in
accordance with internationally
recognised best practices.
Corporate
plan
11.
(1) The Board shall cause the
Service to develop and implement
a five year corporate plan and
shall, at the end of the period
issue a new corporate plan for
the next five years.
(2) The Board
shall in the development of the
corporate plan
(a)
have due regard to the
requirements of the
Constitution, the Act, and other
relevant laws and programmes of
Government, public sector
agencies and the expectation of
stakeholders in financial
management and accountability
processes in the country, and
(b)
carry out activities that
promote and secure its
constitutional role in
(i) public
sector financial management, and
(ii) the accountability process
of the country.
(3) The Board
shall include in its activities
continuing education on the
relevance and necessity for a
Service which is politically,
administratively, financially
and operationally independent.
Internal
control and risk management
9. The Board
shall ensure that
(a)
effective, efficient and
transparent internal control and
risk management systems are
established within the Service,
and (b) periodic
assessment of the effectiveness
of the internal controls and
risk management systems is
undertaken by the Service and
the outcome reported to the
Board.
Policy
formulation and administration
of the Service
10.
(1) The Board shall formulate
policies for the administration
and management of the Service
and cause communication channels
to be established within the
Service, to ensure timely and
effective circulation of its
policies at all levels of the
Service.
(2) The Board
may establish links with
individuals, organisations and
associations in and outside the
country on the terms that the
Board considers appropriate to
ensure
(a)
the promotion of the effective
and efficient administration of
the Service; and
(b)
the due performance of auditing
activities by the Service in
accordance with internationally
recognised best practices.
Corporate
plan
11.
(1) The Board shall cause the
Service to develop and implement
a five year corporate plan and
shall, at the end of the period
issue a new corporate plan for
the next five years.
(2) The Board
shall in the development of the
corporate plan
(a)
have due regard to the
requirements of the
Constitution, the Act, and other
relevant laws and programmes of
Government, public sector
agencies and the expectation of
stakeholders in financial
management and accountability
processes in the country, and
(b)
seek inputs from management,
other staff of the Service and
civil society.
(3) The Board
shall cause organisational goals
based on the corporate plan to
be established and used
(a) as
a basis to assign
responsibilities, duties and
deliverables by officers and
staff of the Service, and
(b) to
assess performance.
(4) The Board
shall develop a system to
coordinate, monitor and evaluate
the effectiveness and efficiency
of implementation of the
corporate plan.
(5) In
furtherance of sub-regulation
(4), the Board shall cause
(a)
regular and periodic performance
reports to be submitted in the
course of the financial year by
the Service,
(b) an
independent review where
necessary to be conducted to
confirm or determine the
continuing relevance and the
realisation of the objectives in
the corporate plan, and
(c)
the independent review is to be
conducted by a person appointed
by the Board in accordance with
the Public Procurement Act, 2003
(Act 663).
(6) The Board
may cause the corporate plan to
be reviewed in the course of the
year and at the end of each year
and revise the corporate plan to
reflect changes occasioned by
new developments or an emerging
trend consistent with the
framework of the corporate plan.
Matters
related to the Service
Structure
and responsibilities of the
Service
12.
(1) The Board shall determine
and periodically review the
organisational structure of
departments and offices of the
Service.
(2) The Board
shall ensure that the scope of
operations and activities of
established departments and
offices of the Service
incorporates (a) the
responsibilities conferred on
the Auditor-General by the
Constitution and the Act, and
(b)
administrative and support
structures required for the
effective and efficient
performance of the functions and
responsibilities of the Service.
Performance monitoring and
quality control ,
13. (1) The
Board shall adopt measures it
considers necessary to ensure
that
(a)
the Service, in the performance
of the auditing functions
specified in sub-regulations (1)
and (2) of regulation 27, and
(b) other persons or
institutions appointed by the
Auditor General to perform audit
functions
adhere to
international auditing standards
and best practices applicable to
the various entities covered by
these Regulations.
(2) The Board
shall establish a performance
appraisal system in the Service
to
(a)
set out performance targets and
goals,
(b)
continuously and annually
monitor performance of
individual staff,
(c)
identify training needs of
appraisees to address weaknesses
and
deficiencies,
(d)
award incremental credits,
(e)
assess staff for promotion,
(f)
institute disciplinary action,
and
(g)
disengage staff who are unable
to consistently meet performance
targets set for them after they
have received adequate and
relevant training.
(3) The Board
shall cause a quality control
mechanism including peer review
to be established within the
Service and at the institutional
level by external bodies to
provide assurance on the
effectiveness of existing
quality control procedures in
the Service.
(4) The Board
shall take measures it considers
appropriate to address and
rectify deficiencies and
omissions identified by the
quality control mechanism.
Recruitment and progression in
the Service
14.
(1) The Board shall, in
consultation with the Public
Services Commission, be
responsible for the appointment
of officers and other employees
in accordance with article 189
(2) of the Constitution.
(2) The Board
shall develop a Scheme of
Service for the Service
which shall
indicate the following:
(a)
recruitment and placement
policies;
(b)
entry requirements into various
grades of the Service;
(c)
the career path, development and
progression in the Service;
and
(d)
job descriptions for key
positions in the Service.
(3) Vacancies
in the Service shall be filled
in accordance with the Scheme of
Service either by promotion,
transfer, recruitment or
appointment, consistent with
article 189(2) of the
Constitution.
Human
resource development
15.
The Board shall formulate
policies that promote the
effective
organisation
and development of training
programmes in the Service at all
levels of operation and ensure
that modern technologies,
standards and best practices in
management, accounting, auditing
and information and
communication technology are
used in the Service.
Report on
appointments
16.
(1) The Auditor-General, a
member or a committee of the
Board
shall submit
a periodic report to the Board
on the exercise of the powers
delegated under article 189 (2)
of the Constitution and section
4 (3) of the Act.
(2) The
report shall be in a form
determined by the Board.
Qualification for posts in the
Service
17.
(1) A person does not qualify
for a position in the Service,
unless that person possesses the
requisite qualification and
experience prescribed in the
Scheme of Service.
(2) The Board
shall take into consideration
the Constitution, international
conventions, protocols and
treaties ratified by the
Republic that seek to promote
justice, fairness ami human
dignity especially on gender and
matters of persons with
disability when recruiting to
fill a vacant position in the
Service.
(3) The Board
shall not appoint a person into
the Service if that person has
been convicted of an offence
relating to fraud or dishonesty.
Conditions
of service
18. (1) The
Board acting in consultation
with the Public Services
Commission shall
(a)
establish posts below the
position of Auditor-General in
the Service,
(b)
determine the human resource
competency and skills mix
required by the Service to
perform and support the range of
auditing activities mandated
under these Regulations, and
(c) determine and approve
conditions of service of members
of the Service other than the
Auditor-General.
(2) The
Board, in performing its
functions shall, among other
things, take into consideration
the oversight responsibilities
and advisory roles that the
Service is required to undertake
in the public sector to ensure
the recruitment and retention of
trained and competent officers.
Code of
ethics
19. The Board
shall establish and publish a
code of ethics for members of
the Service. Public Complaints
Unit
20. The Board
shall establish a Public
Complaints Unit to receive
complaints from the public.
Discipline
in the Service
21. The Board
is responsible for discipline in
the Service and shall for this
purpose establish a system of
discipline and related
procedures to be maintained by
the Service.
Prudent
use of resources
22. Members
of the Service shall ensure that
(a)
the system of financial
management and internal controls
established for the Service is
maintained,
(b)
resources entrusted to them are
economically, efficiently and
effectively applied in a
transparent manner towards the
achievement of approved goals
and objectives of the Service,
and
(c)
assets of the Service are
safeguarded against losses of
any kind including abuse, fraud,
willful or accidental wastage
and destruction.
Awards for
exceptional performance
23. The Board
shall institute awards to
recognise and reward
meritorious and exceptional
performance of functions by
lUUIJUC; s of the Service.
Facilities
and logistics
24. (1) The
Board shall provide to members
of the Service app:op::j",k
facilities and logistics
required for optimal performance
of their 't'Jties.
(2) The
facilities and logistics include
(a)
office accommodation,
(b)
transportation,
(c)
office facilities, equipment,
materials and furniture,
(d)
library and research facilities,
(e) a
safe environment,
(f)
social and recreational
facilities,
(g)
human resource development and
training facilities, and (h)
relevant operational
documents including auditing and
accounting
standards, audit programmes,
manuals and guidelines.
Retirement
and gratuity benefits
25. (1) In
accordance with article 187 (14)
and paragraph 20 of Part IV of
the First Schedule of the
Constitution. members of the
Audit Service who have attained
the voluntary or compulsory
retiring age shall be paid
gratuities and pensions from the
Consolidated Fund.
(2) A member
of the Audit Service, other than
the Auditor-General who has
served the Service for ten
continuous years or more, shall
be paid retiring benefits from
the Consolidated Fund.
(3) A
contribution or deduction made
under an enactment towards a
member's pension shall cease to
apply to a member of the Service
and the deductions made shall be
considered as voluntary
contributions, and shall be
refunded with interest at the
Bank of Ghana prevailing rate.
(4) The final
emoluments enjoyed by members of
the Service other than the
Auditor-General at the date of
retirement of that member from
the Service shall be the basis
on which pensions gratuities
shall be calculated.
(5) A member
of the Service who has served
for less than ten continuous
years shall, unless as specified
in these Regulations, be
entitled to receive
proportionate gratuity for the
period served.
(6) The
pensionable emoluments to be
used in the calculation of
pensions and gratuities shall be
the basic salary and other
allowances, approved by the
Board and enjoyed by members of
the Service at the time of
retirement other than allowances
in respect of housing,
entertainment, leave, utilities,
and clothing.
Calculation
of pension
26. (1)
Members of the Service who have
met the qualifying service
period and conditions for
retirement from the Service
shall opt for reduced pension
and gratuity or full pension six
months before the date of
retirement and once the option
is made the member cannot change
it.
(2) The full
pension payable to a retired
member of the Service shall be
calculated as the product of the
length of service in months
multiplied by the final
pensionable emoluments attached
to the post from which the
member retired and the
Appropriate Pension Constant of
1/ 480.
(3) Gratuity
shall be paid at the rate of
twenty- five percent of full
pension multiplied by twenty
years.
(4) A member
of the Service who opts for
reduced pension shall receive
monthly pension at the rate of
three-quarters of the
pensionable emoluments attached
to the post from which the
member retired and that pension
(a) is
the basis on which pensions and
gratuities shall be calculated
and
(b)
shall be indexed, at the same
rate as to any subsequent
revision of the salary structure
of active members of the
Service.
(5) Retiring
benefits due to a member as a
result of the abolition of a
post, injury, termination of
appointment, marriage by a
female member; VC:"1T:Hl_,re
retirement or retirement on
medical grounds and any other
CT01LL;t",nces determined b) the
Board, shall be calculated at
the same rate as specified in
these Regulations.
(6) Where a
member of the Service other than
a member on probation dies in
active service, the legal
representative or nominee of
that member shall be paid
gratuity of an amount not
exceeding full pension
multiplied by twenty years, of
the estimated constant period
divided by two.
(7) Where a
deceased member is survived by a
spouse a pension at a rate not
exceeding one sixth of the
annual pensionable emoluments of
the deceased member shall be
paid to the spouse.
(8) Where the
deceased member is survived by
children and not a spouse or
pension is not granted to the
spouse a pension of an amount
twice the rate specified in
regulation (7) shall be paid to
each child who has not attained
the age of twenty-one years.
(9) Where the
deceased member is survived by a
spouse and children, one-quarter
of the pensionable emolument of
the deceased member shall be
paid to each child.
(10) Where a
member of the service is injured
and the degree of injury is
likely to be permanent, the
member shall be paid a workman's
compensation in addition
to any gratuity and pension that
the member is entitled to at the
rate at which the member would
be eligible if the member had
retired compulsorily, at the
date of the member's injury.
(11) Where a
retired member on a reduced
pension dies within twenty years
after the date of retirement
from the Service, the unexpired
period of that retired member
shall be used as a basis to
calculate the benefit to
nominated beneficiaries at the
rate of pension that the
deceased person was entitled to.
Audits
External
auditing
27.
(1) The Service shall carry out
the external auditing of:
(a)
the public accounts of Ghana
including the Central Government
and its Ministries, Departments
and Agencies, the Courts and
Parliament,
(b)
District Assemblies,
(c)
the Houses of Chiefs and
Traditional Councils;
(d)
Universities and public
institutions of like nature;
(e)
governing boards appointed
pursuant to article 190(3)(a)
of the Constitution;
(!) bodies
established with public funds
including corporations,
companies and other enterprises,
(g)
public offices established by
the Constitution and other
public offices as defined by
article 295 of the Constitution:
(h) an
entity established with public
funds by or under an Act of
Parliament, and
half yearly
foreign exchange receipts and
payments statements of the Bank
of Ghana for the periods 30th
June and 31st December each year
under the
direction of the Auditor-General
in accordance with articles lR4
(3) and 187 (2) of tile
Constitution.
U) The Board
shall ensure that the range of
external Auditing activities to
be carried out by the Service in
accordance with t\l,:;c
Regulations includes
(a)
compliance and regularity audit
(b)
financial audit,
(c)
performance or value for money
audit,
(d)
forensic audit,
(e)
environmental audit,
(f)
procurement audit, and
computerised and electronic
systems audit,
(g)
emerging audit concepts and
methodologies recognised by the
International Organisation of
Supreme Audit
Institutions.
(3) The
A.uditor-General may in the
discharge of duties under 'ut, f
epulatJem (1), engage or appoint
an individual or institution to
,i,Sl'it If'c .')( ! VIce to
carry out the auditing
responsibilities specified under
these Regulations
Board shall
ensure that appointments made
under subrcgulcltlOl1 (3) arc
in accordance with the Public
Procurement Act, 2003 (Art
663)
(5) The Board
shall establish a system to
ensure that appropriate quality
control standards arc developed
and used in monitoring and
evaluating audit work carried
out by individuals and
institutions appointed by the
Auditor-General to carry out
work on behalf of the
Auditor-General.
Special
audits
28.
(1) In accordance with the
provisions of sections 22 and 36
of the Act, the Service may, in
addition to the audits specified
under regulations 27(1) and
(2), undertake special audits of
the activities of any
individual or organisation
which seeks financial aid from
Government and beneficiaries of
financial aid, which includes
loans, grants and credit
facilities, commodity aids and
guarantees.
(2) The
special audit shall be conducted
to determine among other things,
whether
(a)
intended beneficiaries exist and
their activities have been duly
registered under the applicable
laws and have met the
obligations imposed on them by
law, conventions and treaties
including environmental issues,
(b)
the terms of underlying
agreements for the loans, credit
facilities, commodity aid and
government guarantees are
reasonable and are being
complied with,
(c)
recoveries are being
appropriately made from the
beneficiaries concerned, and
(d)
intended benefits for the
national economy are being
derived.
(3) The Board
shall cause procedures to be
established for the review and
co-ordination of special
requests made for audit
examination and verification by
audited bodies, offices and
organisations including the
Office of the President and
Parliament and, where necessary,
secure additional resources
before the Service undertakes
the requested audits.
(4) Reports
on special audits undertaken by
the Service or on the basis of
requests accepted by the
Auditor-General shall be
submitted to Parliament as soon
as the reports have been
completed.
(5) Subject
to the provisions of section 23
of the Act, the Board shall
cause to be created in the
Service, appropriate mechanisms
under which the reports of the
Auditor-General shall be made
accessible to the public, after
the reports have been presented
to the Speaker to be laid before
Parliament.
Register
of persons and institutions
29.
(1) The Service shall maintain a
register of individuals and
institutions qualified to be
appointed by the Auditor-General
to carry out audits on behalf of
the Auditor-General.
(2) The
register shall be updated
regularly.
(3) The
Service shall classify the
individuals and institutions in
the register by grade and size,
and the category of audited
organisations for which the
individuals and institutions
will be eligible to bid for
auditing purposes.
(4) The
register shall show the
following profile of the
individuals
and
institutions:
(a)
curriculum vitae of the key
personnel; (b) location
and address;
(c)
international affiliation, if
any; (d) succession
partners;
(e)
total operational staff;
(f)
number of years of existence of
the institution; and (g)
list of organisations currently
under audit.
(5) The
Service shall periodically
conduct inspection of the
premises, facilities and
staffing levels indicated in the
register for verification and
validation purposes.
(6) The
Service shall ensure that
persons listed in bidding
documents of an institution
which wins an award to conduct
an audit on behalf of the
Auditor-General, participates in
the planning, execution and
reporting processes of auditing
as shown in the bidding
documents and evidence of the
participation are provided on
demand at any stage of the
auditing process.
(7)
Individuals and institutions may
be appointed by the
AuditorGeneral under the Public
Procurement Act, 2003 (Act 663)
to assist the Service to carry
out its work for a minimum
period of one year, which is
renewable for a maximum period
of five years, subject to
satisfactory performance.
(8)
Institutions or individuals
appointed by the Auditor-General
to carry out work on the
Auditor-General's behalf shall
be issued with terms of
reference and guidelines for the
conduct and reporting on audits
assigned to them by the
Auditor-General.
(9) The Board
shall cause the Service to
establish procedures to ensure
that individuals or institutions
appointed by the Auditor-General
to carry out audits on behalf of
the Auditor-General comply with
the terms of reference and
guidelines issued for the audit.
Settlement
of fees due to appointed persons
30.
The Board shall ensure that
issues arising from an
evaluation of the performance of
appointed individuals and
institutions against the terms
of reference and guidelines
issued for the audit are
satisfactorily resolved before
fees due to the appointed
persons or institutions are
paid.
Selection
for audit bids
31.
(1) The performance of
individuals and institutions
that have carried out an audit
on behalf of the Auditor-General
shall be taken into
consideration in subsequent
appointments.
(2) At least
three months before the end of
the final year of the maximum
engagement period of five years
specified under regulation
29(7), the bidding process in
accordance with the Public
Procurement Act, 2003 (Act 663)
shall be activated to allow for
timely appointment of an
incoming institution or
individual to undertake audits
on behalf of the
AUditor-General.
Fee charging
regime
32. (1) The
Board shall cause a fee-charging
regime to be established in the
Service for the audit of
subvented agencies which are
contracted out by the
AUditor-General.
(2) The
purpose of the fee charging
regime is to review and assess
audit fees proposed by
individuals and institutions
appointed by the Auditor-General
to carry out audits on behalf of
the Auditor-General. Excessive
audit fees
33. (1) Where
in the opinion of the
Auditor-General, proposed audit
fees are in excess of what the
Auditor-General considers
reasonable under the
fee-charging regime, the
Auditor-General and the audited
organisation shall enter into
negotiation with the appointed
individual or institution for a
reduction in the proposed fees.
(2) The
Service shall
(a)
monitor and maintain records of
fees charged by an individual or
an institution appointed by the
AuditorGeneral to assist in the
work of the Service, and
(b)
provide a table of fees charged
for incorporation in the annual
report of the AUditor-General
required to be laid before
Parliament in accordance with
article 187(5) of the
Constitution.
Audit
observations and reporting
34. (1) A
team leader shall issue formaIIy
audit observations made at an
audit location in the Course of
an audit undertaken by members
of the Service.
(2) An audit
team of the Service shall
(a)
take steps to fully discuss with
the audited organisation,
findings and recommendations
arising from an audit undertaken
with respect to the audited
organisation, and (b)
obtain written responses from
the audited organisation for the
observations made before leaving
the audit location.
(3) An audit team shall complete
its assignment within a time
frame given by the
AUditor-General for the
completion of the audit
assignment
(4) An audit
team shall indicate in its
report, the inability of the
respective client to respond
appropriately to observations if
the client fails to respond to
observations made during their
stay at the audit location.
(5) An audit
team shall not overstay the time
frame given for an audit
assignment under the authority
of the Auditor-General without
the permission of the
Auditor-General.
(6) Where an
audit team overstays the period
given under the authority of the
Auditor-General without
permission each member of the
team shall be subjected to
disciplinary action.
(7) The
Auditor-General shall be
informed of the observations
raised through the established
communication channels in the
Service, where a response to an
audit observation is not
received within thirty days
after the departure of an audit
team from the audit location.
Consequence of not responding to
an audit observation
35.
(1) The Auditor-General may in
accordance with section 29 of
the Act, direct that the
emoluments and allowances of a
person who fails to respond to
an audit observation be withheld
as long as that person fails to
respond to the observation.
(2) Where a
person fails to respond to an
audit observation despite a
reminder issued by the
Auditor-General and after the
emoluments and allowances of
the person have been withheld,
the failure to respond shall be
regarded as an offence under
section 33 (1) (d) of the
Act.
Record of
officers who do not respond to
audit observations
36.
The Board shall cause the
Service to keep records of
officers of audited
organisations who fail to
respond to audit observations as
specified in the Act and the
Auditor-General shall make a
report on it to Parliament in
the Auditor-General's annual
report.
Issue of
management letters
37.
(1) Branch and sectional heads
shall within two weeks after
completion of audit
assignments, issue management
letters containing findings,
recommendations and conclusions
of the audit assignment to the
management of the audited
organisation, copied to
concerned officials and
organisations.
(2) An
officer responsible for issuing
a management letter shall
provide reasons to the immediate
supervising head of the
officer's department for each
ma.ragement letter, which is not
issued within fourteen days
after completion of audit
assignments
Record of
(l.udit;;;ssigmneAlts
38. Each
department, branch and section
of the Service shall keep a
record of an audit assignment
undertaken by an audit team and
the report issued in relation to
it.
Record of
audit observations and
management letters
39. Members
of the Service shall keep copies
of audit observations and
management letters issued by
audit teams including other
supporting working papers in a
manner determined by the Board
and shall make the copies
available upon demand for
inspecrion, monitoring and
performance appraisal.
Accountability report to
Parliament
40. Subject
to article 187(4) of the
Constitution audited
organisations, offices and
institutions provided for by
article 187(2) of the
Constitution, shall produce
accountability reports for
examination by the
Auditor~G·eneral in the
following format:
(a)
introductory comments by
management and governing body;
(b)
mission and organisation
structure information, induding
(i) the vision and mission
statements,
(ii)
functions and activities,
(iii)
organisational structure, and
(iv) operating environment;
(c)
financial information, including
(i) financial
highlights and condition, and
(ii) sources
of financing, which includes
revenues, appropriation, other
receipts and loans;
(d)
performance information that
indicates results and
achievements against
expectations and cost incurred,
stating reasons for good or bad
performance, constraints
encountered and actions taken to
address the constraints;
(e)
govemance information,
indicating key features of
systems and controls, compliance
with legal requirements,
variance analysis between
budgeted amount and expenditure
incurred; and
(f)
forward looking information, to
indicate the current status of
and possible future effect of
currently known demands, risks,
events, conditions, trend and
possible actions which may be
required to deal with the
situation.
Contents of
the Auditor-General's annual
report
41. Subject
to article 187(5) of the
Constitution and sections l3, 14
(2) and 20(2) of the Act, the
annual report of the
Auditor-General on the audit of
public accounts of the country
and of public offices specified
in article 187(2) of the
Constitution shall include
observations and comments on the
accountability report of the
audited entities.
Audit Report
Implementation COmmittees
42. The Board
shall establish a system in the
Service for monitoring the
existence and performance of
Audit Report Implementation
Committees as provided under
section 30 of the Act and report
the outcome to the President and
Parliament in the annual report
of the Board required under
section 25 of the Act.
Monitoring
audit recommendations
43. (1) The
Board shall ensure that
procedures are established in
the Service for monitoring the
implementation of findings and
recommendations made in
previous reports of the
Auditor-General until the
findings and recommendations
have, in the opinion of the
AUditor-General, been
satisfactorily acted upon.
(2) The
Auditor -General shall take
appropriate action including
surcharging losses disclosed in
the reports against an official
associated with the delay, where
in the opinion of the
Auditor-General, the
implementation of the
recommendations of the
Auditor-General are unduly
delayed, resulting in the
recurrence of losses and other
irregularities in an audited
account.
(3) The Board
shall cause a system to be
established in the Service for
the prompt reporting to the
Auditor-General of cases which
inspecting teams consider as
warranting the Auditor-General's
action to disallow expenditure
incurred or to raise a surcharge
for irregularities noted under
article l87(7)(b) of the
Constitution from audits carried
out.
Finances
of the Service
Administrative
expenses of the Service
44.
(1) The administrative expenses
of the Service shall be costs
and expenses other than
development expenses required by
the AuditorGeneral to perform
the functions conferred on the
AUditor-General under the
Constitution and the Act.
(2) The
administrative expenses of the
Service shall be a charge on the
Consolidated Fund in accordance
with Article 187 (14) of the
Constitution.
(3) The
Ministry of Finance and the
Controller and
AccountantGeneral shall release
the administrative expenses
directly to the Service on the
dates on which the expenses fall
due.
Annual
estimates of the Service
45.
(1) The Board is responsible for
the review and approval of the
annual estimates of the Service
and shall for this purpose
establish the format, procedures
and a time frame for the
preparation, consideration and
approval of the estimates.
(2) The Board
shall submit to the President,
at least two months before the
end of each financial year, the
estimates of the Service
approved by the Board for the
following year indicating
(a)
the administrative expenses of
the Service charged on the
Consolidated Fund under article
187 (14) of the Constitution and
which are subject to article 179
(2) (b) of the
Constitution; and
(b)
the development expenses of the
Service which are subject to
article 179 (2) (a) of
the Constitution and approval by
Parliament.
(3) The Board
at the time of submission of
estimates to the President may
forward a copy of the estimates
to the Speaker of Parliament.
(4) The
President shall within the time
frame stipulated by article 179
(1) of the Constitution cause
the estimates of
(a)
the administrative expenses of
the Service, being expenditure
charged on the Consolidated Fund
to be forwarded directly to
Parliament and laid in
accordance with article 179 (2)
(b) of the Constitution
for the information of members
of Parliament, and
(b)
the development expenses to be
laid before Parliament without
any revision or amendment but
with any recommendation that the
President may make on the
estimates for consideration and
approval by Parliament under
article 179 (2) (a) of
the Constitution.
(5) The
development expenditure of the
Service when approved by
Parliament shall not be reduced
by any person or authority and
the Minister shall release it to
the Service in installments
determined by the Board.
(6) The Board
shall, as soon as it comes to
its notice that there has been a
material variation of the
approved budget that may be used
for the budgetary release to the
Service, submit a report to
Parliament showing the serious
and adverse effects of the
variation on the planned
programmes of the Service as
well as cases where the
Auditor-General will be limited
or incapacitated by lack of
resources to perform a function
specified in the Constitution
and the Act.
Supplementary expenditure of the
Service
46.
Where it is found in respect of
a financial year that the
expenses of the Service are
insufficient or that there is a
need for a purpose for which
provision has not been made in
the estimated expenses of the
Service, the Board shall, in the
case of
(a)
recurrent expenditure other than
expenditure charged on the
Consolidated Fund, approve the
supplementary funds required and
submit the approved expenditure
to the President to be laid
before Parliament, and
(b)
development expenditure, provide
justification for the
supplementary funds required and
submit the estimated development
expenditure together with the
justification to the President
to be laid before Parliament for
approval.
Bank
account of the Service
47.
(1) The Board shall cause a bank
account to be opened and
operated by the Service in the
name of the Auditor-General
within the Consolidated Fund at
the Bank of Ghana.
(2) The approved annual
estimates of the Service shall
be released to the Service
through the Auditor-General's
account at the Bank of Ghana on
a request made by the Board to
the Ministry of Finance and
Economic Planning
(3) The Board
shall cause requests for
transfer of funds into the bank
account of the Service to be
made on the basis of quarterly
work plans of the Service.
(4) The Board
shall cause to be lodged at the
Ministry of Finance, the
Controller and Accountant
General and the Bank of Ghana at
least one month in advance, a
quarterly schedule of projected
drawings from the Consolidated
Fund for auditing costs.
(5) The Board
reserves the right to review and
vary the quarterly schedule as
demanded by any changing or
unforeseen situation but the
changes shall remain within the
annual estimates as approved or
amended in accordance with these
Regulations.
(6) Transfers
into the bank account of the
Service shall be made on
quarterly requests made by or
under the authority of the Board
to the Minister of Finance and
Economic Planning.
(7) A balance
held by the Auditor-General in
the bank account of the Service
shall be included in the
balances of the Consolidated
Fund to determine the position
of the Fund but be regarded as a
blocked account in favour of the
Service.
(8) The Board
shall ensure that unspent or
unencumbered balance in the bank
account from previous requests
held by the Auditor-General is
taken into consideration in
finalising subsequent requests
in determining a request for
the release of funds.
Limitations on the Service
48.
(1) Where a variation by an
executive agency of an approval
given by the Board on the human,
financial and logistical
requirements of the Service
limits the scope and timing of
audit the effect of the
variation shall be disclosed and
published in the annual report
of the
(a)
Auditor-General on the public
accounts and other public
offices; and
(b)
Board on the activities of the
Service.
(2) A request
by the Board for the release of
the financial and logistical
resources of the Service which
have been determined and
approved in accordance with the
Constitution, the Act and
Financial Administration Act
2003, (Act 654) that have been
unduly withheld or delayed
without justifiable cause, shall
be regarded as an obstruction in
the performance of the functions
of the Auditor-General as
provided under section 33 (1)
(e) of the Act.
(3) Prolonged
existence or late discovery of
irregularities, losses and other
deficiencies in the management
of public resources arising from
a failure or delay in the
release of resources on their
due date to the Service shall be
reported by the Auditor-General
to Parliament on a quarterly
basis.
Accounts
and audit
49.
(1) Books of account shall be
kept by the Service in a form
approved by the Board and in
accordance with accounting
principles relevant to the
public sector.
(2) The
accounts of the Service shall be
prepared by the AuditorGeneral
and submitted to the Board
within three months after the
end of each financial year.
(3) The Board
shall on receipt of the accounts
of the Service, submit the
accounts to the auditor
appointed by Parliament to audit
the accounts on terms and
conditions determined by
Parliament.
(4) The Board
shall
(a)
ensure that findings and
recommendations in the report of
the external auditor of the
Service are promptly acted on,
and
(b)
provide Parliament with action
reports and implementation
timetables within six months
after the issue of the report.
(5) The Board
may establish an Audit Committee
under section 7 of the Act and
may assign to the Committee the
discharge of the following
duties:
(a)
review of internal and external
audit reports and recommending
corrective and remedial action
to the Board; (b)
monitoring of compliance with
the decisions of the Board on
internal and external audit
reports;
(c)
review of the effectiveness of
the internal audit section of
the Service; and
(d)
consideration of matters
referred to it by the Board or
management of the Service for
advice.
Corporate
Performance Report by the Board
50.
(1) The Board shall not later
than eight months after the end
of the financial year, prepare
and submit to the President and
Parliament, a Corporate
Performance Report on the
Service.
(2) The
percentage of total audit costs
approved by the Board as against
releases made in relation to the
size of the annual budget of the
Consolidated Fund and other
public sector funds required to
be audited by the Service, shall
be disclosed in the Corporate
Performance and Activity Report
on the Service required under
section 25 of the Act, in order
to determine the reasonableness
of the total resources requested
by the Board for the audit of
the public accounts against
actual releases made by the
Ministry responsible for
Finance.
(3) Copies of
the Corporate Performance Report
submitted to the
President and
Parliament, may be distributed
by the Board to (a) the
Director of Public Records,
(b)
the public University libraries
in the country,
(c)
the libraries of the Ghana
Institute of Management and
Public Administration and the
Management Development, and
Productivity Institute and other
public libraries;
(d )the
website of the Service,
(e)
members of the Board, and
(f)
any other institution approved
by the Board.
Miscellaneous
Tipping off
51.
(1) The Board shall establish or
cause to be established in the
Service, a system to encourage
the general public to submit
information on suspected cases
of mismanagement, fraud, abuse,
wastage, and other
irregularities in public offices
and institutions for follow-up
by the Service.
(2) The Board
shall set up a confidential
reward scheme for individual
members of the public who
provide information leading to
the successful recovery of funds
arising from an audit undertaken
into the reported cases.
Interpretation
52.
Unless the context otherwise
requires, in these Regulations
"Act" means the Audit Service
Act, 2000 (Act 584);
"Board" means
the Audit Service Board
established under section 3 of
the Act;
"Constitution" means the 1992
Constitution of the Republic of
Ghana;
"District
Assemblies" includes
Metropolitan and Municipal
Assemblies;
"members of
the Service" means the members
of the Audit Service as stated
in section 2 of the Act;
"Minister"
means the Minister responsible
for Finance; and "Service" means
the Audit Service established
under the Audit Service Act,
2000 (Act 584).
JOHN A. Y.
KLINOGO
Chairperson, Audit Service Board
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