Ghana achieves milestone in financial reporting with Whole-of-Government accounts

Ghana marked a historic achievement in financial reporting as the Controller and Accountant-General's Department (CAGD) delivered comprehensive Whole-of-Government Accounts, covering all levels of government, for the first time in 2020. This development positions Ghana among a select group of countries, including the United Kingdom, Canada, Sweden, Australia, and New Zealand, known for enhancing financial reporting at the national level.

Under the Public Financial Management (PFM) Act 2016 (ACT 921), the Controller and Accountant-General has the responsibility to produce consolidated National Accounts on all public funds generated and utilized across the government. The achievement of Whole-of-Government reporting in 2020 and subsequent improvements in 2021 provide a broader view of the country's financial performance and position, aligning with the International Monetary Fund (IMF) Government Finance Statistics (GFS) classification.

Mr. Kwasi Kwaning-Bosompem, Controller and Accountant-General, highlighted the evolution of this achievement: “The CAGD produced full Central Government Accounts for the 2018 financial year; then General Government Accounts in the 2019 annual accounts, covering MDAs and MMDAs. In 2020, the SOE sector was targeted for the national accounts, to achieve Whole-of-Government reporting. These achievements were deepened in the 2021 Whole-of-Government Accounts.”

The expanded scope of the National Accounts covers all public funds generated and utilized at the three levels of government: Consolidated Fund (CF), Internally Generated Funds (IGF), Statutory Funds (SF), and Donor Funds (DF). The Whole-of-Government reporting offers transparency and enables stakeholders to appreciate the financial contributions from each level of government.

Despite the notable achievements, challenges persist, including non-submission or late submission of financial statements and transactions processed outside the Ghana Integrated Financial Management Information System (GIFMIS). The low commitment of public sector managers and accountants to accounting reforms and financial reporting responsibilities, particularly in IPSAS implementation, remains an ongoing challenge.

Mr Kwaning-Bosompem acknowledged the collaboration and support from various stakeholders and emphasized the need for continued commitment to financial reporting responsibilities under the PFM Act 2016 and the IPSAS implementation. The expanded National Accounts not only enhance transparency but also contribute to the global standardization of financial reporting.