An Auditor General’s report on Malawi Government Accounts for the year ending March 2023 has revealed financial irregularities amounting to K1.46 trillion.
Auditor General Thomas Makiwa has since said that the rate of non-compliance by individual ministries, departments and agencies (MDAs) remains concerning.
The areas of concern include reconciliation irregularities, miscellaneous irregularities, financial statement irregularities, revenue irregularities, procurement irregularities, funds not accounted for, fuel not accounted for and payment vouchers not presented for audit.
Reconciliation irregularities make up the largest portion of queries, amounting to K1.412 trillion, followed by miscellaneous irregularities at K28.9 billion.
- Advertisement -
The report recommends that the government ensure the strict implementation of the International Public Sector Accounting Standards (Ipsas) adoption plan by adequately resourcing the initiative.
- Advertisement -
It notes that as the government improves its public financial management systems, Ipsas will significantly enhance accountability in the use of public resources.
“The functioning of audit committees in all ministries and departments should be enhanced immediately to facilitate prompt responses to audit reports and ensure the implementation of audit recommendations.
“Bank reconciliations for all accounts maintained at the Reserve Bank of Malawi must be prepared in a timely manner, in compliance with government financial rules and regulations.
“The Secretary to the Treasury should ensure that monthly and quarterly auto bank reconciliations are conducted for all accounts,” the report says.
- Advertisement -
It adds that strict compliance with financial provisions should be enforced within MDAs to improve public financial management and control.
“Ministries and departments should establish an electronic filing system to ensure the easy location of all documentation.
“The government, through the Office of the Director of Public Procurement and Disposal of Assets, with support from the Department of E-Government, should evolve public procurement systems to E-Procurement.
“Payment vouchers and supporting documents not presented for audit should be traced and submitted for audit inspection. Those responsible for failing to make the documents available for audit should be dealt with in accordance with the PFMA 2022 and MPSR,” the report states.
It adds that all MDAs responsible for collecting government revenue should ensure they meet budget estimates and that all collected revenue is accurately recorded in the cashbook and financial statements.
Speaking last month when he presented an analysis of the Auditor General’s report on government accounts for the 2021/22 financial year in Parliament, Public Accounts Committee Chairperson Mark Botomani said that weak controls and poor enforcement of the legal statutes governing public service delivery are the reasons annual audit reports continue to register the same issues.
“The findings of the 2022 audit underscore the urgent need for reform in Malawi’s public financial management systems.
“Persistent issues such as financial mismanagement, asset misallocation and procurement irregularities point to a breakdown in accountability and efficiency within MDAs,” Botomani said.
