Audit of theConsolidated Fund

2008

11 May 2010

Outline

• Why discuss the audit 2008?

• Role DPs in the accountability chain

• Issues arising from Audit 2008

• Issues for discussion

Why discuss the audit 2008

• Use of Country Systems: Audit is essential piece in accountability chain trust

• Audit provides information on:– quality of recording/accounting/reporting– quality of spending (targeting, performance,

efficiency)

• Legal implications and monitoring of systems performance

Role DPs in accountability chain

Accounting /Reporting by CAGD and MDAs

External AuditBy GAS

Discussion by Parliament

Follow up byCAGD / MDAs

Through ARICs

Prosecution byAttorney-General

Support to PFMreforms

StrengthenGAS

StrengthenPublic

Accounts Com.

StrengthenA-G

MDBS:- Justification for budget support

- Systemic improvements

Support to Civil Society

Audit 2008

• Qualified opinion:– Reconciliation between Public Accounts and MDA

information– Consolidated fund overstated by 410 mln in the Public

Accounts– Disputed loan balances of 676 mln– Inability to verify the transfer of 318 mln into

GoG/Vodafone escrow account

• Overspending of 30% against appropriated budget.

Weaknesses in a number of areas

– Quality of financial administration (e.g. financial statements)

– Management of public loans– Under- and overstatements of expenditures and

transfers (incl. MDBS!)– Management of debts– Unauthorised payments and non-disclosure– Discrepancies between MDA and CAGD– Overstatement of cash and bank balances– Vodafone

Issues for discussion

• ARIC response to 2008 recommendations

• Recurring issues:– Quality of financial statements– Reconciliation of financial data– Management of loans– Debt recording and management