Monrovia – The Ministry of Finance and Improvement Planning (MFDP) welcomes the not too long ago launched 2024 Basic Auditing Fee (GAC) Audit Report of the Authorities of Liberia’s Consolidated Accounts.
The report confirms substantial progress in monetary administration, price range self-discipline, and accountability below this administration.
The Authorities of Liberia has significantly improved within the administration of the Consolidated Account.
That is evidenced by a comparative evaluation of the 2023 and not too long ago launched 2024 GAC Report of the GoL’s Consolidated Accounts.
The Audit Report of 2024 describes the Audit Opinion as “Certified” in distinction to a 2023 Audit Opinion that was Adversarial.
The shift from an ADVERSE to a QUALIFIED audit opinion displays significant reform. Enhancements have been made in price range self-discipline, documentation and inner controls, money and debt transparency, reconciliation, and monetary reporting.
Moreover, reconciliation efforts and IPSAS compliance have superior considerably. In accordance with the Stories, in 2023, monetary statements have been materially misstated and unreliable as a result of pervasive management failures.
In 2024, all monetary statements have been pretty reported in all materials respect. This can be a reflection of the truth that most transactions have been correctly documented.
Moreover, the evaluation revealed that in 2023, US$18.97M was recorded below the CBL Sundry Account with out supporting schedules; whereas in 2024, transactions to CBL Sundry Account have been absolutely disclosed with reconciled schedules.
In the meantime, the audit reviews of the GAC Consolidated Account for 2023 and 2024 confirmed that in 2023, there was no disclosure of externally restricted money stability, whereas in 2024, restricted balances have been absolutely disclosed in monetary statements.
One other space of enchancment within the administration of the GoL Consolidated Account in accordance with the 2024 GAC Audit Report is Financial institution Account Reconciliation. In accordance with the report, in 2023, 473 financial institution accounts and 37 transitory accounts weren’t reconciled, whereas in 2024, 95% have been reconciled, with 5 per cent flagged for closure
Opposite to some opinion within the public area, the audit reviews didn’t state that any cash was lacking or misappropriated on the MFDP. All funds have been completed with correct documentation.
Of the greater than 700m spent in 2024, the GAC through the audit noticed documentation for all transactions, apart from transactions amounting to 2.8m.
This concern displays one of many recurring challenges in audit – finding authentic documentation, particularly provided that audits are completed months or years after the interval being audited.
The doc administration system inherited by this administration leaves a lot to be
desired. All paperwork associated to specific transactions are duly filed and brought to the MFDP archives for storage. Presently, the archives are overwhelmed as a result of restricted area to retailer paperwork for a number of fiscal years.
The US 2.85m alluded to within the GAC audit pertains to transactions executed in 2024 , whose documentations might not be readily discovered within the MFDP archives throughout the five-day interval given to MFDP by the auditors who carried out the audit throughout a four-month interval. Third-party verification involving line ministries concerned might have helped verify the existence of that documentation.
It’s exactly in recognition of those details that he MFDP is investing in an Digital Doc Administration System (EDMS) to automate doc storage. The EDMS can be absolutely operational in just a few months. In the meantime, till the EDMS comes into absolutely operational, the ministry have launched guide scanning of all paperwork
supporting transactions starting 2025.
Let it’s famous that extra expenditure over appropriation doesn’t essentially indicate wrongdoing. Conditions typically come up the place pressing or unexpected expenditures should be addressed, similar to by-elections, and different emergencies.
The price range execution course of gives mechanisms for such contingencies:
The price range execution course of gives the mechanism for coping with unplanned price range pressures considered one of which is the contingency reserve fund which is an unallocated ballot of funds within the price range that may be use to offer supplementary assist to macs, to take care of pressing calls for; moreover, the price range switch regulation gives for interagency switch under the brink of 20 per cent that doesn’t require legislative approval.
The place the GAC has recognized the quantity of two.88 million in appropriation, except for the Bureau of Nationwide Concessions, whose expenditure exceeded appropriation by US$373,000 as a result of intervention to stave off a brewing disaster, all different expenditures, together with Public Works, remained under the 20% threshold.
The Bureau of Nationwide Concessions expenditure was duly reported to the Legislature in common price range reviews. In price range excution, it’s generally tough to safe prior legislative approval for pressing expenditures, significantly when the Legislature is on recess.
In conclusion, the 2024 GAC Report demonstrates a transparent and important enchancment within the administration of public funds below the present administration. Opposite to some public opinion, the report doesn’t state that any funds are lacking or misappropriated by MFDP.
Of the greater than US$700 million executed in 2024, documentation was validated for all transactions apart from US$2.8 million, which is an archiving problem, not a sign of misappropriation.
The archiving problem is at present being addressed by guide scanning and the quickly to be launched digital doc administration system (EDMS).
The 2024 Audit Opinion is described as “Certified”, in sharp distinction to the “Adversarial” opinion of 2023.
This transition displays significant reforms, together with enhancements in price range self-discipline, documentation and inner controls, debt transparency, reconciliation, and monetary reporting.
In accordance with the report, in 2023 monetary statements have been materially misstated and unreliable as a result of pervasive management failures. In 2024, against this, the monetary statements have been pretty reported in all materials respects, confirming that almost all transactions have been correctly documented
