The Internal Audit Agency (IIA) has revealed that it has come to its attention that, most Metropolitan, Municipal and District Assemblies (MMDAs) and Regional Coordinating Councils (RCCs) are currently functioning without properly constituted Audit Committees.

Sections 86-88 of the Public Financial Management Act 2016 (Act 921) requires Covered Entities, including MMDAs and RCCs to have Audit Committees to support them implement and adhere to sound financial controls and systems in the use of public funds.

In a statement signed by The Director General, Dr. E. O Osae, dated June 5, the IIA said this is apparently due to expiration of tenure after exhausting the two-term mandatory period provided for by Act 921.

Consequently, the IAA in collaboration with the RCCs, is undertaking a mass inauguration of new Audit Committees for all RCCs and MMDAs across the country from 6th-13th June, 2022 at the respective RCCs.

The IIA explained that the exercise is in recognition of the critical role of MMDAs and RCCs in preventing corruption, “Audit Committees established under Sections 86-88 of the PFM Act 2016(Act 921) in the financial governance of RCCs and MMDAs, play an important role, including pursuing Management to implement recommendations and producing annual status of implementation report on recommendation…particularly, in relation to financial matters raised.”

“Honourable Regional Ministers and Metropolitan, Municipal and District Chief Executives (MMDCEs) are encouraged to support the process for improved Financial Governance of the RCCs and MMDAs,” the IIA urged,

 The statement cautioned that, “it is an offence under Section 98(1d) of the PFM Act 2016 (Act 921) for a Local Government Authority (RCC or MMDA) or a Covered Entity to operate without a properly constituted Audit Committee.”

It therefore entreated, “all and sundry especially, Internal Auditors across the country to support the inauguration for improved governance and effective use of public funds.”