By Makutu Manneh
An audit of the government’s financial statements for the year ending 31 December 2022 has revealed that cash allocations exceeded the approved buffer expenditure limit by D669,560,342.
The approved buffer expenditure limit represents the maximum funds allocated for specific purposes or projects as stipulated in the annual cash plan.
According to the audit report, there were significant discrepancies between the approved cash plan and the actual monthly expenditures. Notable variances occurred in March, May, October, and November 2022, as outlined in the audit findings:
- March 2022: Approved buffer—D50,000,000; actual expenditure—D104,707,959; variance—D54,707,959.
- May 2022: Approved buffer—D75,000,000; actual expenditure—D166,643,223; variance—D91,643,223.
- October 2022: Approved buffer—D10,000,000; actual expenditure—D189,409,084; variance—D179,409,084.
- November 2022: Approved buffer—D10,000,000; actual expenditure—D222,757,840; variance—D212,757,840.
The auditors warned that such breaches could result in unplanned expenditures, increased borrowing costs, and disruptions in budget execution. They urged management to strictly adhere to approved monthly cash plans and buffer limits to ensure fiscal discipline and effective budget implementation.
In response, government management stated that allocations beyond the buffer are not issued; rather, buffer limits are revised to meet urgent spending needs from Ministries, Departments, and Agencies (MDAs). “We are currently working with partners to improve cash management practices,” the statement said.
However, the auditors noted that no evidence was provided to substantiate authorizations for buffer adjustments, leaving the matter unresolved and raising concerns about transparency and accountability in cash management.