Concerns over the sufficiency of financial controls and the integrity of public accounts have been raised by the 2024 Auditor General’s Report, which found a mismatch between two important government financial statements of over five billion dalasis.
According to the National Audit Office, the discrepancy was discovered when auditors compared the year-end balance recorded in the Statement of Cash Receipts and Payments with the cash balance stated in the government’s Statement of Financial Position.
“The discrepancy of GMD 4,860,333,780 between the cash balances reported in the Statement of Financial Position and the Statement of Cash Receipts and Payments implies that financial statements were misstated.”
The Statement of Cash Receipts and Payments revealed a net balance of D4,826,045,830, while the Statement of Financial Position reported a year-end cash balance of D9,844,770,010. According to auditors, the inexplicable variation, D5,018,724,180, indicates that the government’s financial statements were misstated.
“The discrepancy implies that financial statements were misstated,” the report noted, adding that weaknesses in reconciliation procedures could lead to material misreporting of account balances.
In order to guarantee the accuracy of government financial reporting, auditors advised the Accountant General to look into the variance and make the required corrections.
Management responded by admitting the problem. “This is noted with concern, and management is working on addressing this discrepancy,” officials wrote.
At the time the management letter was finalized, auditors noted that the discrepancy was still unresolved.
The result highlights ongoing difficulties in public financial management and control and is one of the biggest red flags in the most recent yearly audit.
