Bsc-PSA-session 1-2-modi.pptx

INSTRUCTORS

• _{Name: Samuel N. Y. Simpson (PhD)}

William Atuilik (PhD)

• _{Office Locations: Main Block, G5}

• _{Office Hours: Wednesday, 1:30 pm -3pm}

• _{Friday, 1:30-3pm}

• _{E-mail: [email protected]/[email protected]}

Teaching Assistant

COURSE OVERVIEW & GOAL

• _{This course exposes students to concepts and principles underlying financial}

management in the Public sector-central, local and NGOs:

• _Budgeting,

• _{Accounting and reporting,} • _Procurement,

• _Auditing.

• _{It focuses on both conventional and contemporary financial management}

practices within the public sector environment

• _{This course seeks to equip both accounting and non-accounting students}

Learning Objectives

• _{Upon successful completion of this course students should be able to:}

• _{Describe the nature of the public sector and public sector accounting}

• _{Describe the legal and regulatory environment of the public sector}

• _{Discuss and evaluate Public sector budgeting and the developments over}

the years

• _{Outline the elements of Public Procurement}

• _{Prepare the financial statements of the central government (Public}

Accounts)

Learning Objectives

• _{Upon successful completion of this course students should be able to:} • _{Outline and discuss the main performance measures and management}

tool used in evaluating performance in the public sector.

• _{Describe the Nature, financing and accountability issues in the local}

government administration of Ghana

• _{Describe the Nature, Types and financial statement of NGOs/NFPOs, etc.} • _{Identify and describe the types of auditing in the public sector}

INDICATIVE CONTENT

• _{Overview and Scope of the Public Sector Environment and Public}

Sector Accounting

• _{Public Sector Budgeting and Case Studies} • _{Introduction to Public Procurement}

• _{Financial Reporting in Public Sector}

• _{Performance Management in the Public Sector} • _{Local Government Finance and Accounting}

DELIVERY & GRADING

• _{The course will be delivered through mainly lectures.} • _{Students will be assessed as follows:}

• _{Individual/group project work and class participation will constitute 15}

percent;

• _{Interim assessment will attract 15 percent; and} • _{Final examination attracts 70 percent.}

Reading Resources

• _{There is no single textbook for this course.}

• _{The course is multi-disciplinary, thus, draws from accounting, public}

• _{Adopted Texts:}

• _{Ives M., Johnson, L., Razek, J.R., & Hosch, G (2009). Introduction to}

Governmental and Not-For-Profit Accounting, 6/e. Upper Saddle River, New Jersey: Prentice Hall, a Pearson Education Company

• _{Freeman, Shoulders, Allison & Smith (2013). Governmental and}

• _{Other Reading Materials} • _{1992 Constitution of Ghana}

• _{Public Financial Management Act, 2016, Act 921 (Repealed: Financial Administration Act}

2003, Act 654

• _{Financial Administration Regulation 2004, LI 1802 (FAR)} • _{Audit Service Act 2000 Act 584}

• Internal Audit Agency Act 2003, Act 658

• _{Public Procurement Act 2003 Act 663 and Public Procurement (Amendment) Act, 2016 Act,}

914

• International Public Sector Accounting Standards

• _{Local Government Act 2016, Act} • _{National Pension Act 2008, Act 766}

• _{Other fund specific laws such as:}

• _{District Assembly Common Fund Act 1993 (Act 455)} • _{Ghana Education Trust Fund Act 2000 (Act 581)}

• _{Road Fund Act 1997 (Act 536)} • _{Government of Ghana Budgets}

• _{Prescribed journal articles on relevant topics} • _{Relevant journal articles}

Other Information

• _{Class attendance} • _{Plagiarism policy}

• _{Plagiarism in any form is unacceptable and shall be treated as a serious}

offence (http://www.ug.edu.gh/aqau/policies-guidelines).

• _{ALL students are expected to familiarize themselves with the contents of the}

Overview and Scope of the

Public Sector Environment and

Public Sector Accounting

Learning objectives

• _{Upon completion of this session, students should be able to:} • _{Define and describe the public sector environment}

• _{Identify public sector organisations}

• _{Compare and contrast private and public sector organisations} • _{Discuss the changing public sector environment}

• _{Discuss the regulatory environment of the public sector} • _{Discuss the financing arrangements in the public sector}

Activity

• _{Discuss the history of Ghana’s economic system (s) and the}

Definitions, Nature and Scope of the Public Sector

•

_{They encompass both public sector bodies and other}

organisations whose primary objective is to provide goods or

services for the general public or social benefit rather than

providing a financial return to equity shareholders.

•

_{The sector has to do with:}

• _{the whole nation,}

• _{represented by organisations that are established to use the}

• _{The phrase “public sector” is often synonymous with public}

administration, public service, and governmental entities.

• _{Public sector is said to be that part of the economy where funding}

comes largely from government

• _{Public Services are goods or services provided on a not-for profit basis}

to the general public or for social benefit.

• _{Public service organisation is one or more bodies managed as a}

coherent entity with the primary objective of providing public services.

•

_{The sector is said to encompass the following:}

• _{Government activity and its consequences or State general}

decision-making and its outcomes (authority interpretation)

• _{Governmental consumption, investment and transfers (allocation and}

distribution interpretation)

• _{Government production (provision interpretation)}

Features of the public sector environment

• _{The tasks of public institutions are to be decided by politicians but}

executed by administrators in order to satisfy the model of rational decision-making.

• _{Administration is based on written documents and this tends to make}

the office (bureau) the heart of modem government.

• _{Public tasks are organized on a continuous, rule-governed basis.} • _{The rules according to which work is conducted may be either}

• _{The tasks or functions are divided into functionally distinct spheres,}

each furnished with the requisite authority and sanctions.

• _{Officers as well as tasks are arranged hierarchically, the rights of}

control and complaint being specified; preference for centralization, all other things being equal.

• _{The resources of the organization are quite distinct from those of the}

members as private individuals.

• _{Public employees orientate towards the tasks within the public sector}

in terms of vocation or a sense of duty to fulfil the obligations of their roles.

• _{In the public sector there is one dominating interest, the public}

interest, which sets limits to the influence of self-interests in politics and administration.

Difficulties with defining the scope of public sector

• _{Growing involvement of private sector entities}

• _{Growing involvement of civil society organisations}

• _{Outsourcing of government functions to the private sector} • _{Joint ventures, and}

Some Recognised Definitions

•

_{The OECD defines as:}

• _{General government and}

• _{Public corporations including central banks.}

• _{The United Nations provides a similar definition, and includes not-for-profit}

•

_{IFAC defines “public sector” as:}

• _{national governments,}

• _{regional (e.g., state, provincial, territorial) governments,} • _{local (e.g., city, town) governments and}

• _{related governmental entities (e.g., agencies, boards, commissions}

and enterprises)

•

_{General government:}

• _{consists of all governmental units of the executive, judiciary, and}

legislature at the central, state/provincial/regional and local levels

•

_{Public corporations:}

• _{Include the financial and non-financial corporations concerned}

with commercial activities

Governmental Business Enterprises

• _{Is an entity with the power to contract in its own name;}

• _{Has been assigned the financial and operational authority to} • _{carry on a business;}

• _{Sells goods and services, in the normal course of its business, to other}

entities at a profit or full cost recovery;

• _{Is not reliant on continuing government funding to be a going concern}

(other than purchases of outputs at arm‟s length); and

Attributes of Public Sector Organisations

•

_{Generally, what constitutes public sector is determined by:}

• _{The purpose (or function) of the entity involved,} • _{Ownership (and/or control),}

• _{Source and flow of resource,}

Attributes of Public Sector Organisations

• _{The presence of multiple principals}

• _{The presence of multiple tasks or goals} • _{The nature of output and}

The Public Sector of Ghana

• _{Chapters 8, 10, 11, 14 of the 1992 Constitution} • _{The Public Services Commission Act, 1994 (482)}

• _Includes

• _MDAs • _MMDAs

• _{Boards, commissions and authorities}

• _{Public educational and research institution} • _{Public corporations/ SOEs / GBEs}

Activity 1

• _{What characteristics differentiate public sector organizations from}

Compare and Contrast Public and Private sectors

•

_{Areas of Differences:}

• _{Goals & Objectives, Types of orgs., Ownership}

• _{Legal Basis, Funding, Accounting system, Nature of Financial}

Statement

• _{Expenditure , Nature of Output, Product pricing} • _{Nature of Accountability}

Point of Difference Public Sector Private Sector

Goals & Objectives Seeking general welfare of all citizens

Provide goods for only those who can afford.

To increase the wealth of capital providers

Types of orgs MDAs, MMDAs, Board & commissions and other parastatal org

Sole trading, partnership, limited liability companies

Ownership Government on behalf of

Point of difference Public sector Private sector

Legal Basis Act of parliament/ L.I., IPSAS Relevant laws such as Companies Code, etc

Funding Tax revenue/non-tax revenue Share capital contributions and other private funding

Point of Difference Public Private Expenditure Little distinction between

revenue exp. & capital exp. Based on cash accounting

Clear distinction between revenue exp. & capital exp.

Output Public goods & services Highly excludable goods

&services

Point of diff Public Private

Accountability _{Delivered to citizens}

through parliament Delivered to private contributors of capital through their Boards.

Financial Statement _{Fund-Based Finance}

Appropriation a/c, Rev & Exp a/c and others similar to private

Prepares no appropriation alc, prepares T,P& L a/c instead

Case study

• _{A large private bus company in Empire City went bankrupt. At Empire}

City's request, the state legislature established a legally separate public benefit corporation named Metro City Bus. In the law

establishing Metro City Bus, Empire City was authorized to appoint

Metro's entire governing body, and Metro was authorized to issue tax-exempt debt to assume the assets of the private bus company. When Metro City Bus went to prepare its financial statements, a question was raised. Was Metro City Bus a government?

Case study

• _{Discuss whether Metro City Bus is or is not a governmental entity.} • _{What are the specific factors in this situation that cause Metro to be}

Activity 2

•

_{Indicate whether the following is part of the public sector or}

not.

• _{Services which are publicly financed and publicly provided} • _{Services which are privately financed and privately provided} • _{Services which are privately financed and publicly provided} • _{Services which are publicly financed and privately provided}

Suggested answer

• _{These are clearly part of the public sector.}

• _{These are clearly not part of the public sector since they involve a}

contractual arrangement between a private individual and a private company.

• _{These could be considered as being part of the public sector since}

they involve activity by a PSO.

• _{Since these involve public expenditure they can be regarded as part of}

Areas of Similarities

• _{Operate in the same economy and compete for same resources:}

financial, capital, and human

• _{Acquire and convert scarce resources into goods and services •}

Use of accounting and other information systems

• _{Need to operate economically, effectively, and efficiently} • _{Provide goods and services, many of which may be similar}

Developments in the public sector environment

• _{Size of the public sector and its relation to the overall size of the}

economy

• _{Configuration:}

• _{the dichotomy of service policy and purchasing, and service provision} • _{the mix of public sector and private sector service provision}

• _{organizational simplification.}

• _{Changes in functions}

• _{Organization and culture} • _{Financing trends}

FINANCING ARRANGEMENTS

 _{Government activities are financed through tax revenues, non- tax} revenue and borrowings

 _{Tax revenue sources:}

 _{Direct taxes: Personal income tax (PAYE), Company/corporate tax,} capital gain tax, gift tax

 _{Indirect taxes: Import duties, export duties, petroleum levy,} excise duties, VAT, mobile telecom tax.

 _{Non tax revenue:}

 _{Proceeds from the sale of state assets including divestiture} proceeds.

 _{Dividends from state owned enterprises.}  _{Petroleum/oil revenue}

 _{fines and penalties}

 _{Interest on loans and other investments}

 _{Royalties from mineral and other natural resources}  _{Fees and user-charges}



_{Borrowings and grants:}

 _{Locally contracted borrowings and Loans.}

 _{Externally/foreign contracted loans include; bilateral loans from other}

countries and multilateral loans from International Monetary Funds, World Bank etc..

Grants and Aid (Grant-in-Aid)

• _Grant:

• _{A financial award given by the federal, state or local government to an}

eligible grantee.

• _{Government grants are not expected to be repaid by the recipient.} • _{Grants do not include technical assistance or other forms of financial}

assistance such as a loan or loan guarantee, an interest rate subsidy, direct appropriation or revenue sharing.

• _Aid:

• _{Is a voluntary transfer of resources from one country to another.}

• _{The type of aid given may be classified according to various factors,}

such as

• _{its intended purpose,}

• _{the terms or conditions (if any) under which it is given,} • _{its source,}

• _{its intended use, and} • _{its level of urgency:}

• _Grant-in-Aid

• _{A transfer of money from government(s) to a state government, local}

government or individual person for the purposes of funding a specific project or program

Contemporary Financing Arrangements

• _{Public-Private Partnership (PPP):}

• _{Is a long-term arrangement where private sector organization take on risk and}

responsibility for the delivery of a public project, usually involves the creation or enhancement of a fixed asset.

• _{Is an approach to delivering public services that involves the private sector, but}

one that provides for a more direct control relationship between the public and private sector than would be achieved by a simple (legally-protected) market-based and arms-length purchase.

Rationale of PPP

• _{access to private finance for expanding services,} • _{clearer objectives,}

• _{new ideas, flexibility, better planning,}

• _{improved incentives for competitive tendering and greater value for money for public projects} • _{efficiency savings}

• _{the desire to improve the performance of the public sector by employing innovative operation and}

• _{reducing and stabilizing costs of providing services;}

• _{improving environmental protection by ensuring compliance with}

environmental requirements;

• _{reinforcing competition;}

• _{reducing government budgetary constraints by accessing private}

Types of PPP Arrangement

Service contract

Management contract Design &Build

Service concession

Design-build-operate- Maintain (DBOM) Design-build-finance-operate (DBFO) Build-own-operate (BOO)

Euro and other bonds

• _{First in 2007, Ghana’s first bond secured $750million at an interest rate}

of 8.5 per cent.

• _{The Second in 2013, fetched $1billion from the International Capital}

Market, after securing $1.2billion. It attracted an interest rate of 7. 877 per cent.

• _{The third in 2014, attracted an order of $3billion, but secured $1billion}

at an interest rate of 8.25 per cent

Assignment

• _{Analysis the financing sources and expenditure pattern over the last}

10 years, and discuss the implications on the medium to long-term development agenda of Ghana

WHAT IS PUBLIC SECTOR ACCOUNTING

?

• _{Is the system developed for and/or in public sector organisations to}

enable them account for, or trace the finances they generate or use and the services or developments that they undertake.

• _{Is the system of accountability through which the established}

institutions of the public report on the available revenues of the nation and how these revenues are used.

• _{It refers to all the financial documents and records of public}

institutions relating to the collection of government revenue and

their analysis, the control of expenditure, the administration of trust funds, the management of government stores and all the financial responsibilities and duties of the relevant government departments.

• _{Is the process of recording, analysing, classifying, summarising,}

communicating and interpreting financial information about government in AGGREGATE and IN DETAILS, reflecting all

transactions involving the receipt, transfer and disposition of government funds and assets in general

Objectives of Public Sector Accounting

• _{To fulfil legal requirement:}

• _{The law requires that government accounts are prepared}

annually

• _{To satisfy the stewardship function:}

• _{The ruling government is the steward of the resources and}

finances of the nation and so has to give account of how these finances are used

• _{To enable the government to plan well the future developments and}

programmes of the nation;

Users of information from the Public Sector

• _{Unlike business organizations where the users of their financial}

reports are obviously and readily recognizable, it is not always clear who the intended readers of public related financial

statements are.

• _Why?

• _{Some principal users are:}

• _{Legislative and other governing bodies} • _{public as tax payers and/or voters}

• _{Investors and creditors} • _{Rating Agencies}

• _{Donors and sponsors} • _Management

• _{Others are}

• _{The media,}

• _{economic and financial analysts,} • _{customers and clients,}

• _suppliers, • _employees, • _competitors, • _academia

Overview of Financial Management in the Public

Sector

• _{Financial management is one of the factors that ensures successful}

public sector management.

• _{It sits alongside other contextual aspects, such as}

• _{leadership, transparency and accountability, levels of resources and staff}

capacity,

• _{is influenced by many aspects of the social, political and economic environment.}

• _{It generates vital information for better decision making, better services,}

• _{It impacts on a broad range of areas including:}

• _{aggregate financial management – fiscal sustainability, resource mobilisation}

and allocation

• _{operational management – performance, value-for-money and budget}

management

• _{governance – transparency and accountability}

• _{fiduciary risk management – controls, compliance and oversight}

• _{Public Financial Management (PFM) is multidimensional – and liable}

to differ between countries.

• _{PFM is no longer viewed as a purely technical finance and accounting}

topic (as it once was); rather, it has become a subject where institutions and political factors play an important role.

What is public sector financial management?

country to another.

• _{It encompasses the mobilisation of revenue; the allocation of these}

funds to various activities; expenditure; and accounting for spent funds.

• _{It includes all components of a country’s budget process –}

• _{upstream (including strategic planning, medium term expenditure}

framework, annual budgeting), and

• _{Public Financial Management (PFM) is the system by which the}

financial aspects of the public services’ business are directed,

controlled and influenced, to support the delivery of the sector goals (CIPFA-1)

• _{PFM is the system by which financial resources are planned, directed}

and controlled to enable and influence the efficient and effective delivery of public service goals (CIPFA-2).

• _{Is any activity in order to analyse, structure, set objectives and}

implement measures in the field of finance, if the entity is government of any level

• _{a corporation controlled by the government or}

• _{For countries, financial management refers to the budgeting,}

accounting, internal control, funds flow, financial reporting, and auditing arrangements by which they receive funds, allocate them and record their use (World Bank).

• _{PFM is concerned with the laws, organizations, systems and}

procedures available to governments wanting to secure and use resources effectively, efficiently and transparently.

• _{It encompasses taxes and other government revenue, borrowing and}

debt management, but its main focus is expenditure management, especially in the context of public budgeting.

• _{Other definitions tend to cluster around the budget as the central theme.} • _{PFM has sub-systems such as:}

• _{Public sector accounting}

• _{Government financial statistics (GFS)} • _Budgeting

• _Treasury

• _{PFM is said to comprise:}

• _{the institutional framework, systems, and procedures that govern the}

preparation, execution, and reporting of the budget

• _{all phases of the budget cycle, including the preparation of the budget, internal}

control and audit, procurement, monitoring and reporting arrangements, and external audit

Objectives of PFM

•

_{PFM has wide public policy and economic significance.}

•

_{PFM is highly relevant to:}

• _{resolving problems of financial crisis} • _{resolving process of fiscal adjustment}

• _{correcting fiscal imbalances and then stabilize fiscal positions} • _{Developing appropriate economic and financial policies.}

Objectives of PFM

•

_{It promotes accountability within developing countries and}

provides donors with assurance on the use of their funds.

•

_{The objectives of PFM include:}

• _{maintaining fiscal discipline;}

• _{allocating resources strategically; and} • _{operational efficiency.}

Comprehensive fiscal risk oversight :

Comprehensive fiscal risk oversight :

Is oversight of fiscal risk Information:Information:

Comprehensive, Policy-based, budget:

Does the budget capture all relevant fiscal transactions, and

is the process, giving regard to government

policy?

Comprehensive, Policy-based, budget:

Does the budget capture all relevant fiscal transactions, and

is the process, giving regard to government

policy?

Budget Realism:

Is the budget realistic, and implemented as

intended in a predictable manner?

Budget Realism:

Is the budget realistic, and implemented as

intended in a predictable manner?

Control :

Is effective control and stewardship exercised

in the use of public funds?

Control :

Is effective control and stewardship exercised

in the use of public funds?

Accountability and Transparency :

Are effective external financial accountability

and transparency arrangements in place?

Accountability and Transparency :

Are effective external financial accountability

and transparency arrangements in place? Six core

objectives of PFM system

Elements of PFM

• _{The elements PFM have been variously categorised.} • _{For example:}

• _budget,

• _procurement,

• _{accountability and transparency,} • _{audit and control,}

• _{revenue and resources mobilisation,} • _{debt management}

• _{Other notable (World Bank) elements include:} • _Legislation

• _Standards

• _{Execution – Strategy & Planning, Operations, Monitoring & Control} • _Assurance

• _Scrutiny •

• _{Legislation: the regulatory framework for PFM, determining the}

powers and mandatory requirements within which public sector bodies raise and spend money and receive income.

• _{Standards: the established principles or rules common to a group}

that is intended to govern their actions and behaviour to achieve

compliance with a common set of non-statutory requirements (e.g., IFAC, ICA).

• _{Execution – Strategy & Planning:}

• _{the processes that set the direction for the activities which require financial}

management, in the short, medium and longer term, and the frameworks within which overall financial performance is managed.

• _{Execution – Operations, Monitoring and Internal Control}

• _{the principal financial operations needed to maintain financial}

discipline and resilience, deliver services and enable desired outcomes.

• _{In practice, while central governments may set the framework for}

spending, it will often be departmental ministries and local administrations who carry it out.

• _{Monitoring and Internal Control includes a cluster of processes,}

complementary to operations, designed to measure progress and

achievement of milestones and to keep organisations on track to realise their objectives.

• _Assurance:

• _{formal processes to give assurance to stakeholders about the organisation’s}

standards and effectiveness, carried out at arm’s length from the operations they examine.

• _{The rigour, professionalism and independence of these processes, and of the}

bodies that carry them out, contribute to public trust and the resilience of the taxpayer relationship.

• _Scrutiny:

• _{scrutiny of PFM processes, outside executive responsibility, can oversee,}

influence and challenge the allocation of resources and the administration of public sector finances.

• _{Scrutiny processes create a demand for transparency and improve accountability;}

• _{Learning and Growing:}

• _{processes that enable public service organisations, individually and}

collectively, to reflect and learn from best practice, from partners, mentors and peers and from their own experiences, in order to develop their

knowledge and capabilities.

• _{Growing in this context refers to internal growth and not to organisational}

Regulatory Environment

of the Public sector

Regulatory Environment of the Public sector

• _{The Regulatory environment includes the standards or guidelines, the}

legal frameworks and the institutions associated with public sector accounting and finance.

• _{Traditional regulatory frameworks}

• _{Country based} • _{Sector based} • _{Function based}

Overview of the legal framework

• _{The 1992 Constitution}

• _{The Financial Administration Act 2003 (Act 654)}

• _{The Financial Administration Regulatory 2004 (L.I. 1802)} • _{Procurement Agency Act 2003 (Act 663)}

• _{Internal Audit Agency Act 2003 (Act 658)} • _{Audit Service Act 2000 (Act 584)}

Regulatory Authorities

• _{Parliamentary Control}

• _{Ministry of Finance and Economic Planning (MOFEP)} • _{Controller and Accountant-General}

• _{Auditor-General}

• _{Internal Audit Agency} • _{Bank of Ghana}

Executive (Office of the President/cabinet)

• _{Determines the overall strategy of government and reviews and}

approves sector ceiling of MDAs

• _{Takes decisions on government polices with regard to financial outlay} • _{In taking decisions, the Executive takes careful consideration so as not}

to overburden taxpayers

• _{Also, exercises careful control so that commitments made are}

Parliamentary control

• _{No revenue shall be levied or expenditure incurred except as}

authorized by Parliament (1992 Constitution)

• _{Parliamentary Control is exercised in different phases:}

• _{Appropriation} • _{Audit Control}

• _{Review by the Public Accounts Committee (PAC)} • _{Other parliamentary select committees}

Ministry of finance and economic planning

• _{Overall responsibility as an overseer ministry for financial}

management in the country

• _{Oversight responsibilities include:}

• _{Development and implementation of the country’s macro-economic and fiscal}

policy framework

• _{Advising government on the total resources to be allocated to the public}

sector and the appropriate level to be allocated to individual programmes and activities within the sector

• _{Ensuring the presentation to Parliament periodic statements of}

current and projected state of the economy

• _{Signing of warrant for approval of withdrawal from the Consolidated}

Fund of moneys allocated by Parliament

• _{Giving direction to PAC on accounting practices with regard to}

collection and accounting of public and trust moneys by any government department.

Controller and accountant-general (CAG)

• _{The CAG performs the following financial control duties:}

• _{Responsible to the Minister for the custody, safety and integrity of the}

Consolidated Fund and other public funds designed under the care of the CAG

• _{Responsible for the compilation and management of the accounts}

prepared in relation to the Consolidated Fund and other public funds

• _{Chief adviser to the Minister and the government on accountancy}

matters

• _{Responsible for keeping, rendering and publishing of statements of}

Auditor-General

• _{Appointed by government in consultation with the Council of State in}

accordance with Article 70(1b) of the Constitution

• _{Responsibilities include:}

• _{Examining and certifying government accounts}

• _{Auditing, and reporting on, the public accounts of Ghana and of all public}

offices such as the courts, the central and local government administrations, Universities and other public institutions

• _{Auditing of the foreign transactions through Bank of Ghana}

• _{Examination of the CAG’s report on public accounts}

Internal audit agency

• _{Ensuring that risks in MDAs and MMDAs are managed adequately.} • _{Ensuring the resources of the nation are safeguarded and used}

economically, efficiently and effectively.

• _{Ensuring that systems are put in place to enable fraud and errors n the}

MDAs and MMDAs to be detected quickly

• _{Ensuring that efficient internal audit is developed and maintained in all}

MDAs and MMDAs through a plan approved by the board of Internal Audit Agency

• _{Ensuring an effective reporting system which informs MDAs and MMDAs}

about detected problems and deficiencies in the administration of their programmes and operations.

Bank of Ghana

• _{The general functions of BOG includes:}

• _{formulate and implement monetary policy aimed at achieving the objects of}

the Bank;

• _{promote by monetary measure the stablisation of the value of the currency}

within and outside Ghana;

• _{institute measures which are likely to have a favourable effect on the balance}

of payments, the state of public finances and the general development of the national economy;

• _{promote, regulate and supervise payment and settlement systems;} • _{issue and redeem the currency notes and coins;}

• _{ensure effective maintenance and management of Ghana's external}

financial services;

• _{license, regulate, promote and supervise non-banking financial institutions;} • _{act as banker and financial adviser to the Government;}

• _{promote and maintain relations with international banking and financial}

institutions and subject to the Constitution or any other relevant

enactment, implement international monetary agreements to which Ghana is party; and

• _{do all other things that are incidental or conducive to the efficient}

Functions Relating to FM

• _{Chapter 13 (183)}

• _{BOG shall be central bank of Ghana and the only authority to issue currency}

of Ghana. It also provides for the responsibilities of Ghana.

• _{Promote and maintain the stability of the currency and direct and regulate}

the currency system in public interest

• _{Sole custodian of state funds of Ghana}

• _{Ensure effective and efficient operation of a banking and credit system to}

encourage and promote economic development and efficient utilization of the resources of Ghana