Ghana has experienced a decline in its ranking on the World Bank‘s Supreme Audit Institutions Independence (SAIs) Index for the year 2023, scoring a D (6.5) compared to its previous score of C (8.0-8.5) in 2021.
This decrease signifies that while some independence indicators were met, there remains significant room for improvement in the independence of Ghana’s Supreme Audit Institutions.
The SAIs Independence Index, launched by the World Bank in July 2021, is a methodological tool designed to measure the independence of supreme audit institutions globally.
The index evaluates SAIs against ten indicators, including legal, financial, mandate, and coverage aspects. The assessment is based on a benchmarking exercise against international standards and practices, providing options for reforms to enhance SAI independence.
The World Bank’s evaluation highlights several areas where Ghana’s SAI independence can be strengthened. Policy recommendations include reinforcing existing policies and incorporating several INTOSAI principles into the legal framework. Specific recommendations include:
- Establishing clear Standard Operating Procedures (SOPs) to clarify the audit recommendation follow-up processes for all stakeholders.
- Equipping Internal Audit Units (IAUs) with the necessary training, office equipment, and relevant tracking databases to perform their duties effectively.
- Promoting effective collaboration between the Internal Audit Agency (IAA), IAUs, Audit Committees, Spending Officers, and the Public Accounts Committee (PAC) through stakeholder dialogues.
- Refocusing attention on all types of audits as mandated by Ghanaian law to encourage probity and accountability in governance and the deployment of public resources.
- Enhancing the effectiveness of audit follow-ups, which are legally the responsibility of Audit Committees, Internal Audit Agencies, Spending Officers, and the PAC, as stipulated by the PFM Act, 2016 (Act 921).
Despite legal requirements, the follow-up on audit recommendations has not been effectively managed or tracked.
The assessment also calls for Spending Officers to undertake a root cause analysis of audit issues and communicate these clearly to enhance understanding and increase the likelihood of resolving identified infractions and irregularities.