GH¢1.9m spent at Buffer Stock without official Authorization or Approval – Report

The National Food Buffer Stock Company Limited (NAFCO) has made various payments in the sum of GH₵1.9 million (GH¢1,924,699.52) without approval and authorisation of both the senior finance officer and the chief executive officer (CEO).

The payments were in respect of goods and services, including purchases of fuel coupons and maintenance activities.

When queried, the response from management was, “These are one-off anomalies, and going forward, management will ensure that such occurrences do not happen again”.

In view of this, the auditor-general recommended that all payment vouchers must be duly authorised and approved by the CEO and the senior finance officer.

These are contained in the report of the auditor-general on the Public Accounts of Ghana: Public Boards, Corporations and Other Statutory Institutions for the period ended December 31, 2020.

The report, dated May 31, 2021, was signed by Johnson Akuamoah Asiedu, acting auditor-general.

GH¢1.9m disbursed without adequate supporting documents
According to the report, NAFCO management also disbursed a total amount of GH¢1.9 million (GH¢1,976,047.47) without adequate supporting documents such as receipts, works order and certificate of completion of work done by the department head or the delegated officer.

In this case too, management again said, “These are one-off anomalies, which, in going forward, management will ensure such occurrences do not happen again.

The management added that NAFCO has always followed due process in making sure that all payment vouchers are approved before payments are effected.

The auditor-general charged management to ensure that adequate supporting documents are attached to the payment vouchers or the amount of GH¢1.9 million (GH¢1,976,047.47) be recovered from the approving and authorising officers.

1,670 Bags of rice not accounted in 2016
The report also noted that 1,670 bags of rice purchased during the 2016 financial year valued at GH¢149,115 was not accounted for.

GH¢482,360 without adequate supporting documents
It said a total amount of GH¢482,360 for various expenses incurred were without adequate supporting documents, like receipts, signed sheets, etc, to account for them.

GH¢150,000 advanced to consultants instead of GH¢15,000
The management also advanced an amount of GH¢150,000 to the consultants for renovation of warehouses (Yendi and Tamale) instead of the actual cost of the renovation of GH¢15,000 without any report to justify the disbursement of the GH¢150,000

The auditor-general charged management to provide the consultancy report justifying the disbursement of GH¢150,000 advance granted to the consultant or recover the amount from him.

GH¢333,050 expenses not adequately supported
According to the report,  an amount totalling GH¢333,050 relating to expenses incurred on various activities were not adequately supported with third-party documentations such as receipts and signed sheet to account for them.

The Auditor General tasked management to obtain receipts, signed sheets and other relevant documentation from the payees as evidence of executing the activities to account for the expenditures.

GH¢150,681.26 withholding taxes not deducted
The report noted that management did not deduct and pay withholding taxes amounting to GH¢150,681.26 from various payments made for goods and services purchased during the year.

The auditor-general recommended that management should pay the tax amount of GH¢150,681.26 that should have been withheld in accordance with Section 117 of the Income Tax Act, 2015 (Act 896).