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09.07.2003 General News

Districts unable to process warrants for resource allocations

By GNA
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Accra, July 9, GNA - A number of districts assemblies are finding it difficult to process their budget warrants that would enable them to draw money allocated to them through their respective banks under the new public cash management system.

Mr Eugene Ofosuhene, Deputy Controller and Accountant General, who announced this on Wednesday, said though the government had for a long time paid allocations into respective bank accounts, some districts were now submitting their first quarter warrants.

"Monies have sat in the banks since January this year but some institutions do not know how to process the warrant for spending so if there is some delay or problems then it is coming from the MDAs and the districts."

Mr Ofosuhene said this when he delivered a lecture on: "An Overview of the New Business Oriented Cash Management System in the Public Sector" at this year's Public Accountancy Week Lectures.

The Institute of Accountancy Training (IAT) is the organiser of the Lectures that started on Monday under the theme: "The Public Sector in the Golden Age of Business."

He said the new cash management system was introduced in January this year to replace the old system, which was operating under 4,000 bank accounts in the country that made it very cumbersome for bank reconciliation and forecast to be carried out.

The new system that operates under the Budget Public Expenditure Management System (B-PEM) with a total bank accounts of only 37, was on-line, therefore, the inefficiencies, lack of transparency and inability to do bank reconciliation and forecasts have been solved. "It is now enabling government to manage public resources with greater efficiency and ease."

He noted that because a large chunk of government's purse was dependent on donor supports, they were compelled to use such variables or figures to plan budget allocations and forecasts adding, "this is the biggest problem because such monies are not always forthcoming. "If such external resources are not going to come, then the total government budget is displaced."

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