The Internal Audit Agency (IAA) will from today to June 13 undertake mass inauguration of new audit committees for all Regional Coordinating Councils (RCCs) and Metropolitan, Municipal and District Assemblies (MMDAs) across the country.
The exercise is in line with Sections 86-88 of Public Financial Management Act 2016 (Act 921) which requires Covered Entities including Metropolitan, Municipal and District Assemblies (MMDAs) and Regional Coordinating Councils (RCCs) to have Audit Committees.
A statement signed and issued in Accra yesterday by Dr Eric Oduro Osae, Director-General, IAA, said the audit committees would support the agencies to implement and adhere to sound financial controls and systems in the use of public funds.
Currently, it said the IAA had learnt that most MMDAs and RCCs were functioning without properly constituted audit committees due to expiration of tenure after exhausting the two-term mandatory period provided for by the Public Financial Management (PFM) Act.
The statement said the Audit Committees play an important corruption prevention role as established under Sections 86-88 of the PFM Act 2016(Act 921) in the financial governance of RCCs and MMDAs.
This, it noted, include pursuing management to implement recommendations and producing annual status of implementation report on recommendation contained in an internal audit report; Parliament’s decision on the Auditor-General’s report; Auditor-General’s Management Letter; and the report of the internal monitoring unit particularly, in relation to financial matters raised.
The statement called on Regional Ministers and Metropolitan, Municipal and District Chief Executives (MMDCEs) to support the process for improved financial governance of the RCCs and MMDAs.
As per Section 98(1d) of the PFM Act 2016 (Act 921), it indicated that it was an offence for a Local Government Authority (RCC or MMDA) or a Covered Entity, to operate without a properly constituted Audit Committee.
The statement further entreated all and sundry especially, Internal Auditors across the country to support the inauguration for improved governance and effective use of public funds.
By TIMES REPORTER
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