Enormous irregularities amounting to GHC 2,019,188,488.76 (US$50,748,780) has been unearthed from the accounting books of public boards, corporations and other statutory institutions by the Auditor-General (A-G).

The irregularities, which include the lack of documentation on loan agreements stipulating the terms and conditions, misapplication of funds, overestimation of funds needed and the failure to notify bankers to stop payments of unearned salaries, are listed in the A-G's 2012 report on 77 public boards, corporations and other statutory institutions released in September, this year.

According to a transmittal letter attached to the report and signed by the A-G, Mr Richard Q. Quartey and addressed to the Speaker of Parliament dated September 10, 2013, the irregularities, which were discovered in seven areas, were outstanding debts/loans/recoverable charges - GHC 1,696,453,352.63; cash irregularities GHC 116,346,697.84 and payroll irregularities GHC 251,805.19.

The rest were procurement irregularities- GHC 50,492.451.19; tax irregularities- GHC1,072,001.80; stores irregularities GHC 629,683.13 abd contract irregularities - GHC 153,942,496.22.

Titled "Report of the Auditor-General on the Public Accounts of Ghana - public boards, corporations and other statutory agencies for the year ended 31 December 2012", irregularities outlined under outstanding debts represented trade debtors, staff debtors and other anomalies.

Further, improper maintenance of records on debtors, absence of debtors ageing analysis, lack of documentation on loan agreements stipulating the terms and conditions, failure to ensure that loans were repaid and managements' non-compliance with rules and regulations accounted for these irregularities.

Cash irregularities

Under cash indiscretions, the report listed the misapplication of funds, over- estimation of funds needed, outstanding imprest, non- authentication of payments and cash shortages as having occurred due to poor supervision, lack of control, managements' failure to review approved budgets and the failure of paying officers to demand receipts for payments made.

The report also said the anomalies arose as a result of accountants' failure to properly file and keep records, managements' failure to ensure the security and safety of vital documents, non-monitoring of customers' payment schedules, non maintenance of returned cheques register and the lax of management in ensuring that accountants adhered to the stipulation of the Financial Administration Act and other relevant regulations coupled with poor accounting system.

Payroll irregularities

Payroll improprieties were caused by failure of management to exercise due dililgence and failure of officers in charge of payroll to review payment vouchers to ensure that salaries were paid to only those who were entitled, the report said.

It also pointed out that loopholes in payrolls were also caused by managements' failure to notify bankers to stop payments of unearned salaries, which mostly comprised payments of unearned salaries to separated staff, non-payment to chest of unearned salaries and payment to staff members who were not entitled to receive those salaries.

Recommendations

Among several recommendations made, the report tasked sector ministers as a matter of urgency, to take remedial measures to ensure that public Boards, corporations and statutory institutions filled the position of Heads of Accounts Units, with personnel with the requisite skill and experience and installed computerised accounting software to accelerate the production of financial statements for audit.

It also charged the ministers to sanction any Chief Executive who failed to prepare and submit for audit the organisation's financial statements by the March 31 deadline and any official whose inaction resulted in irregularities to serve as a deterrent to others.