The Internal Audit Agency (IAA) has announced the mass inauguration of over 200 audit committees at the Metropolitan, Municipal and District Assemblies (MMDAs) and Regional Coordinating Councils (RCCs) across the country.<\/p>\n
Sections 86-88 of the Public Financial Management Act 2016(Act 921) requires \u2018Covered Entities\u2019 including MMDAs and RCCs to have Audit Committees to support them to implement and adhere to sound financial controls and systems in the use of the public funds, says a \u2018press release\u2019 that was issued by the IAA on June 5, 2022.<\/p>\n
\u201cIt has however come to the attention of the IAA that, most MMDAs and RCCs are currently functioning without properly constituted Audit Committees (due to expiration of tenure after the two-term mandatory period provided for by the PFM Act),\u201d the statement signed by Dr. Eric Oduro Osae, Director-General of the IAA disclosed.<\/p>\n
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 June 6 to June 13, 2022, the IAA statement said.<\/p>\n
Context<\/strong><\/p>\n Corruption Watch data analysis shows that MMDAs and RCCs have featured prominently in the IAA\u2019s special publication of \u2018Covered Entities Defaulters\u2019 List\u2019.<\/p>\n The Agency uses the publication as a discrediting tool to openly shame public institutions that do not comply with rules governing the submission of \u2018Quarterly Internal Audit Reports\u2019 and \u2018Annual Internal Audit Plans\u2019 to the IAA.<\/p>\n The maiden \u2018Covered Entities Defaulters\u2019 List\u2019 published on February 5, 2021 contained eight (8) MMDAs and four (4) RCCs.<\/p>\n The most recent \u2018Covered Entities Defaulters\u2019 List\u2019 published on May 9, 2022 contained 150 MMDAs and six (6) RCCs.<\/p>\n Among other functions, audit committees support internal audit units of public institutions to prepare and submit their \u2018Quarterly Internal Audit Reports\u2019 and \u2018Annual Internal Audit Plans\u2019 to the IAA in compliance with internal audit and public financial management rules.<\/p>\n In its June 5, 2022 press release, the IAA stated that \u201cIt must be noted 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\u201d.<\/p>\n 222 Audit Committees<\/strong><\/p>\n According to a list that Corruption Watch obtained from the IAA, a total of 222 will have their audit committees inaugurated during the eight-day mass inauguration exercise.<\/p>\n There are 213 MMDAs and nine (9) RCCs taking part in the exercise across the country.<\/p>\n <\/p>\n