managing public sector records: a study programme - International ...

The Legal and Regulatory Framework
Three categories of legislation govern public financial management in Ghana. Firstly,
the financial provisions of the Constitution set up the agencies of the central
administration of finance and institutionalises the various funds. 5
The second set of laws sets up the nine business processes required for the conduct of
public financial management. These include the Audit Service Decree, 1972 (NRCD
49) and the Financial Administration Decree, 1979 (SMCD 221). Others are the
National Development Planning Commission Act, 1994 (Act 479) and the National
Development Planning (System) Act, 1994 (Act 480).
The third of the set of laws, the Financial Administration Regulations, 1979
(LI 1234), the State Property and Contract Act 1960 (CA 6 s. 23) provides detailed
procedures and financial administrative arrangements in the context of the business
processes established by the first two sets of laws.
The Constitution and laws setting up and regulating public financial management
provide clear definition of powers and responsibilities. The Controller and
Accountant General, for example, is responsible only for ensuring that disbursement
of public funds is lawful. The Auditor General evaluates the propriety and wisdom of
disbursements acting under legislative authority.
Detailed guidelines on financial record keeping are provided by the Financial
Administration Regulations. Part XV of the Regulations is devoted to record keeping
issues. It emphasises the importance of records as a key resource and record keeping
an integral part of the financial management system. The regulations further identify
financial records as critically important in the transparency and accountability of
government. To this end, public officers vested with financial management
responsibilities are obliged to keep ‘proper records’ and ensure such records are
available on request.
The Regulations provide that
‘... the documents and records pertaining to the public and trust
moneys received into, held in and paid from the Consolidated Fund
shall be termed the public accounts and shall be kept by the Controller
and Accountant General . . .’ 6
5 The Ministry of Finance, NDPC, the Office of Auditor General and the Audit Service are set up by
the Constitution. The Ministry of Finance is established by art. 181(7), Office of the Auditor General,
art 187, NDPC art. 86 and the Audit Service art. 188. The Office of the Controller and Accountant
General and the procedural arrangements for his appointment are set out in s.2 of the Financial
Administration Decree, 1979. The functions of the Controller and Accountant General are specified in
ss. 4-5
6 Financial Administration Regulations, 1979, Regulation 2
CASE STUDIES 15: AKOTIA
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