The plenary of the House of Representatives is said to have finally agreed to undergo a system review audit by the General Auditing Commission (GAC), following a formal communication from the GAC, under the reference, “Engagement Letter on the System Review of the House of Representatives”.
According to the letter, the commission will conduct a comprehensive review of the financial management system and processes of the House for the period covering January 1, 2022, to December 31, 2024.
Key focus areas of the review are administration, including personnel management, payroll, and maintenance; financial management practices: accounting policies, budgeting, and reporting; procurement and liabilities management; receivables and asset management; internal control systems, including internal audit functions; banking transactions and reconciliation practices; reconciliation between House expenditures and those of the Ministry of Finance and Development Planning; and reconciliation of expenditures with donor funds, where applicable.
The GAC will assess these systems to identify gaps, risks, and inefficiencies, and propose reforms to improve accountability, efficiency, and transparency.
Meanwhile, the Speaker of the House, Richard Nagbe Koon, has welcomed the audit initiative and called on all members and administrative staff to fully cooperate with the GAC team during the course of the review, noting that the audit is not only in keeping with the principles of good governance but also provides an opportunity for the Legislature to strengthen its financial systems.
“We must lead by example. The House welcomes the GAC’s engagement and pledges full cooperation to ensure a smooth and transparent review process,” the Speaker stated.
The System Review, conducted under the mandate of the Auditor General as outlined in Section 2.1.3 of the GAC Act of 2014, is a limited assurance engagement. It aims to evaluate the current financial systems in place and provide actionable recommendations for improvements ahead of a full audit.