Franklin Cudjoe Replies Dr. Apaak's Dare!!!
"Presidential staffer Dr Clement Apaak has dared the President of the policy think tank – IMANI- Franklin Cudjoe to make public his 'intercepted' audit report on payroll fraud at the Controller and Accountant General's Department."
Okidoki: Dr. Apaak, here we go, Part I of extracts from the Audit report. THERE ARE MORE.......
Findings with direct financial impact:
i. The IPPD2 processes salaries for employees on unpaid leave.
Currently, there are instances of salaries being processed for employees on leave without pay, study leave without pay and unauthorized leave. We recommend that the system be configured to exclude employees on unpaid leave before processing of payments. Processing of unearned salaries for employees on unpaid leave in the system should be stopped with immediate effect in order to avoid further financial loss to the State. In addition, adequate recovery measures should be in place to ensure unearned salaries are retrieved accordingly.
ii. Double payment of salaries when employees move from old salary to new salary structure.
IPPD2 processes double payments when employees move from old salary structure to the new one. The new salary element gets attached to the employee while the old salary does not get terminated in the IPPD2. This is primarily due to the existing manual process of terminating old salary structure and assigning the new structure to employees. This current practice must be stopped and the old salary structure elements be terminated in the system automatically when an employee moves from the old structure to a new structure. Added controls should be incorporated within IPPD2 to validate or check the salary structure the employee is on prior to calculating the monthly salary.
iii.. Payment of Income Tax can be avoided in IPPD2.
Income Tax computation logic built in IPPD2 can be bypassed by users and any amount entered is processed by IPPD2 as income tax. Access to modify/bypass income tax computations built in IPPD2 is a major risk and should be disabled with immediate effect.
iv. Payment of salaries to potential “Ghost Employees”
There are 3,288 potential duplicate employees that have been identified in IPPD2 having identical first name, last name, national identifier, date of birth and joining date. This could potentially cause a major loss of revenue to GoG. As a matter of urgency, duplicate checks on employee first name, last name, date of birth and other key parameters if applicable should be introduced into IPPD2. Data entered during hire should be validated and rejected/notified in case of potential duplicates.
v. Duplicate/Invalid Bank Accounts in IPPD2
There are 2,498 invalid/duplicate Bank Accounts being used by 55,219 employees in IPPD2. This is a major gap in IPPD2 as duplicate accounts could be used to perpetuate fraud
The validation of account numbers during input is very critical to mitigating the risk of fraud in payroll processing.
I AM STILL WARMING UP..........
Founding President & CEO, IMANI
Franklin Cudjoe's bio data
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