The 2024 report from the Auditor General has raised significant concerns regarding unreconciled government cash and bank items, dormant accounts, and inconsistencies in official financial statements, prompting inquiries into fiscal oversight and accountability.
The audit revealed that government cash and bank items have not been reconciled for several financial years, amounting to GMD 8.5 million in receipts and GMD 14.9 billion in payments from 2019 to 2024. Notwithstanding these discrepancies, the report indicates that corrective measures have yet to be implemented.
The report also identified nineteen dormant government accounts at the Central Bank and commercial institutions, including Zenith Bank, that have remained inactive for over five years while still being open, thus violating regulatory requirements.
“We noted that nineteen (16) dormant government accounts held at the
Central Bank and commercial bank (Zenith Bank) for over five years remained inactive. However, these accounts remained open, contrary to the regulations,” the report states.
The audit identified discrepancies between reconciled and actual year-end balances, leading to inaccuracies in the disclosures presented in Note 15 (Cash and Cash Equivalents) of the government’s financial statements. Differences totaling GMD 650.7 million and USD 7.13 million were identified between the cashbooks for special projects and the balances reflected in the official statements.
Unreconciled items associated with below-the-line (BTL) accounts, especially concerning special project funds in both Dalasi and U.S. dollars, continue to be unresolved. The report indicates that GMD 88.1 million in receipts and GMD 929.6 million in payments associated with these accounts are still pending clearance.
“On overdue unreconciled items (BTL accounts), our review of the bank reconciliation statements from the IFMIS system revealed that unreconciled items related to BTL (Special Project Dalasi and US Accounts) amounting to GMD 88,110,781.07 for receipts and GMD 929,562,238.74 for payments remained uncleared,” the report says.
The Auditor General identified a discrepancy of GMD 4.87 million between the total BTL receipts documented in the general ledger and the related bank statements. Additionally, ten government accounts, totaling GMD 263 million, were mistakenly categorized as third-party accounts in the deposit statement, which does not align with established accounting standards.
The findings highlight ongoing deficiencies in financial management and emphasize the necessity for more stringent compliance with regulations related to government accounts and reconciliations.
