AUDIT REPORT 2022 IS OUT. BIG QUESTIONS FOR GOVERNMENT

Audit Service: A Double Edged Sword in the Accountability Battle

By Babah Kanu

+232-76-927-562

babbiuskay@gmail.com 

The Audit Service Sierra Leone is the supreme audit institution mandated by law to audit all public entities that receive monies on behalf of the people of Sierra Leone.

The country since independence has been entangled by corruption which has been the bane that wane the economic, social and political facet, with little or no progress made year in, year out.

This state of affairs has existed to an extent that Sierra Leone was noted for an infamous voucher gate in the 1980s, which almost crippled the country’s economy.

To extricate the country from this economic morass, the democratic constitution of 1991 engendered accountability in public institutions with the establishment of accountability institutions including the Audit Service Sierra Leone.

Over the years, this accountability institution has been nurturing the hen that has laid the golden eggs by providing information on the accounts of the Government of Sierra Leone and monies allocated to public entities for service delivery to the people of Sierra Leone.

The Acting Auditor General, Mr. Abdul Aziz in a brief discussion said that his administration is all set to sharpen the double edged sword of the Audit Service, like the Arrow of God to accentuate the battle for accountability in the country. “Services provided for the people of this country must meet them in equal measure”, he said.

Mr. Aziz pointed out that Audit Service is now guided by sectors like the Legal Affairs, Forensic Audit divisions to provide evidence that can be admissible in the court of law for proper accountability; while signing a Memorandum of Understanding with the country’s Anti Corruption Commission to leave no stone unturned in the battle. 

In a brief statement before the release of the 2022 Auditor General’s Annual Report, Mr. Aziz said the mandate as the supreme audit institution of Sierra Leone is to audit all government institutions and other entities that receive money for, and on behalf of the people of Sierra Leone, as enshrined in Section 119 of the 1991 Constitution of Sierra Leone, the Audit Service Act of 2014, and the Public Financial Management Act of 2016.

As the guardian of Sierra Leone’s economic security, the Service will continue to be a trusted source of insight and knowledge about the public sector’s performance. The role as a supreme audit institution is to position ourselves in the future of Sierra Leone.

 Audit Service Sierra Leone will remain the leading audit organisation, promoting excellence and accountability in public institutions.

Kadijatu Zainab Bangura Esq, Legal Affairs Manager of the Audit Service Sierra Leone informed me that the ASSL is on the verge of formulating Regulations that will provide for the application of the legislative provision of disallowance and surcharge powers of the Auditor-General. Disallowance and Surcharge powers are legislative or constitutional mechanisms that empower an Auditor-General or a Supreme Audit Institution to sanction illegally expended or mismanaged public funds on officials responsible for the administration of public funds.

According to Martin Sandy, the Education, Information and Communications Officer, the Audit Service Sierra Leone was established in 1962 as the Audit Department by Audit Act No. 7 of 1962. This office has transformed from the Audit Department to the Auditor General’s Department and now to the Audit Service Sierra Leone by the Audit Service Act of 1998. The functions, mandate and appointment of the Auditor General are clearly stated in Section 119 (1-4) of the 1991 Democratic Constitution of Sierra Leone.

The functions and activities of the Audit Service are looked into by an independent audit firm appointed by Parliament as dictated by law.

Mr. Sandy noted that an Audit is a systematic and independent examination of both financial and non-financial records of an organisation.

The Audit Service according to Sandy undertakes financial, compliance, performance and information systems audits apart from the new forensic audit which is set to commence soonest.

Financial audits are conducted to examine and evaluated the financial records of an organisation to ensure that the financial statements are presented accurately and in conformity with general accounting principles. Compliance audit is an independent evaluation to ascertain whether an organisation is following external laws, rules and regulations or internal guidelines such as corporate bylaws, controls, policies and procedures.

Performance audit as another component of the Audit Service Sierra Leone is conducted to show that resources have been acquired economically and utilised efficiently and effectively in order for the audited entities to provide adequate services to the citizens. It includes assessment of how resources are utilised in relation to efficiency, effectiveness, economy, equity and environment. The Information Systems audit is carried out to provide assurance on the integrity of the IT Systems and the information produced therein. This is to establish whether information systems are safeguarding corporate assets, maintaining the integrity of stored and communicated data, supporting corporate objectives effectively and operating efficiently.

Sandy narrated that the audit process transcends from the planning, execution and reporting stage. During the planning, the Service outlines the institutions to audit and form teams in line with the plan, while there will be pre-engagement activities which include assessment of the independence of team members, their code of ethics, competence and any possible conflict of interest. The team will also decide on the time and material resources for the audit, after which an engagement letter is sent to the auditees to give prior notice about the commencement of the audit. The engagement letter will indicate the date for an initial meeting, the objective of the audit and the responsibility of the auditors and the auditees. An entrance meeting is held at the premises of the auditees after both parties agree on a date. During the entrance meeting the discussion will include the audit approach, terms of reference as well as presentation of the check list, identification of the audit focal person and arrangement of office space for the audit team. At the execution stage, the auditors move to the premises of the auditees to examine both the financial and non financial records of the entity and request other documents for further clarification. The auditors will then raise queries and hold discussions. They will verify the issues with the auditees before an exit meeting is held to give the auditees an opportunity to respond to the issues raised. If these issues are addressed, they will not form part of the final management letter. Unresolved issues will find their way into the Auditor General’s Report which is sent to Parliament for tabling. The Report then becomes a public document for discussion.

Sandy ended that a massive public engagement for a better understanding of issues in the report follows the process.