contributor has just ended, that there is an improvement in the lot of the Ghana Audit Service in the country. This has been so, by the introduction of the Public Financial Management Reform System (PUFMA) by the NDC Government in 1998 and continued by the NPP Government. The PUFMA system has five components -- that is, the Internal Audit Agency, the Procurement Act, the Audit Service, BPEMS and MTEF.
Among the five components of the PUFMA, the Ghana Audit Service, I think, is the most important because of its independence in the institution. A lot of improvement has happened through the World Bank giving them funds. But let us go to the substance of this Statement. The issue is how do we continue funding the Ghana Audit Service? And here, how would this House contribute to ensure that the funding of the Ghana Audit Service is sustainable?
I think this is the most important issue and with this, I agree with the re- commendations made by the maker of the Statement and with your permission, Mr. Speaker, I want to quote, that is the last paragraph of the last paper which states:
“Mr. Speaker, also this House should consider some amount of audit fees to be charged on all audit services rendered by the Audit Service as internally generated funds to support its activities.”
Mr. Speaker, as he stated rightly, in other jurisdictions like South Africa and others, Audit Service charges all their clients some fees. When you consider that of Ghana, the Statement stated that Audit Service has about 6,775 institutions in number, that is roughly about 7,000 institutions in the country to audit and if this House can consider amending the Act
of the Ghana Audit Service so that these institutions pay just 10 per cent of the cost of auditing them, I think this will go a long way to generate some kind of funding for the Ghana Audit Service.
If we have about 7,000 institutions -- take some of these institutions like the Driver and Vehicle Licensing Authority (DVLA), even those corporations that can generate funds like Registrar-General's Department, Births and Deaths, Parks and Gardens, et cetera, which the Ghana Audit Service is supposed to audit them - if they are to pay 10 per cent of the cost of this auditing, that will bring a lot of money to the Ghana Audit Service and take this burden away from the Central Govern-ment.
So Mr. Speaker, my humble con- tribution is, how can this House consider the Ghana Audit Service Act, amend it, so that all those bodies including all the MMDAs, that is the Metropolitan, Municipal, and District Assemblies in drawing their budgets, an amount is allocated for the Ghana Audit Service so that this will help them to generate enough funds?
Why did I say so? Auditing is a very expensive job. If an institution knows that it has to contribute to the progress of the Ghana Audit Service, I am sure that institution will ensure that the work or its internal control would be improved because the depth of the work that the auditor will do will amount to how much the auditor will charge. If the auditor has a lot of work to do on an institution, then the charge will go high. If the work is small, the charge is little.
Therefore, i f an inst i tut ion is contributing part of its budget, maybe,
ten per cent towards the audit, then I think that institution will be more guided and ensure that it strengthens its internal control system.
I am therefore, making this humble statement that as I support the Statement made by Hon Muntaka, will this House consider amending the Ghana Audit Service Act to ensure that, at least, all institutions that are being audited by the Ghana Audit Service in the country contribute towards the cost of auditing and in this way, a lot of funds will be generated for the Ghana Audit Service?
I want to thank you Mr. Speaker, for giving me this opportunity.