By Sara Camara
Monrovia – The Ministry of Finance and Development Planning (MFDP) has expressed strong satisfaction with the General Auditing Commission’s (GAC) recently released 2024 Audit Report of the Government of Liberia’s Consolidated Accounts, highlighting a significant improvement in financial management from an “Adverse” to a “Qualified” audit opinion. The Ministry also firmly refuted public speculation of missing or misappropriated funds, attributing certain discrepancies to archiving challenges.
In a statement released Monday, the MFDP’s Communications Unit underscored the “meaningful reform” reflected in the shift from an “Adverse” audit opinion in 2023 to a “Qualified” opinion in the 2024 report. According to the Ministry, this transition signifies substantial progress in budget discipline, documentation, internal controls, cash and debt transparency, reconciliation efforts, and financial reporting.
“The report confirms substantial progress in financial management, budget discipline, and accountability under this administration,” the MFDP stated, emphasizing that the Government of Liberia has “considerably improved in the management of the Consolidated Account.”
The Ministry noted that while the 2023 report described financial statements as “materially misstated and unreliable due to pervasive control failures,” the 2024 report found all financial statements “fairly reported in all material respect,” indicating proper documentation for most transactions.
Further comparative analysis provided by the MFDP pointed to several key areas of improvement:
- CBL Sundry Account: In 2023, US$18.97 million was recorded without supporting schedules; in 2024, transactions were fully disclosed with reconciled schedules.
- Restricted Cash Balance: There was no disclosure in 2023, but full disclosure in 2024 financial statements.
- Bank Account Reconciliation: A significant leap from 473 unreconciled bank and transitory accounts in 2023 to 95% reconciliation in 2024, with the remaining 5% flagged for closure.
- IPSAS Compliance has also advanced significantly, according to the Ministry.
Addressing what it called “some opinion in the public domain,” the MFDP’s statement firmly asserted that “the audit reports did not state that any money was missing or misappropriated at the MFDP.” It clarified that “all payments were done with proper documentation.”
The Ministry acknowledged the GAC’s flagging of US$2.8 million out of over US$700 million spent in 2024, but attributed this to an “archiving challenge” rather than misappropriation. The statement explained that the documentation for these transactions “could not be readily found in the MFDP archives within the five-day period given to MFDP by the auditors,” citing an overwhelmed archive system and the time lag between transactions and audit. The MFDP suggested that “third-party verification involving line ministries involved could have helped confirm the existence of that documentation.”
To combat this, the MFDP is investing in an Electronic Document Management System (EDMS), expected to be fully operational “in a few months,” and has already introduced manual scanning of all supporting documents for transactions beginning 2025.
Regarding instances of expenditure exceeding appropriation, the MFDP noted that such situations “do not necessarily imply wrongdoing,” often arising from urgent or unforeseen needs like by-elections or other emergencies. The Ministry highlighted existing budget execution mechanisms, including a contingency reserve fund and interagency transfer laws (below a 20% threshold without legislative approval).
It specifically addressed the Bureau of National Concessions (BNC), whose expenditure exceeded appropriation by US$373,000 due to an “intervention to stave off a brewing crisis.” The MFDP stated this was “duly reported to the Legislature in regular budget reports,” adding that securing prior legislative approval for urgent expenditures can be difficult when the Legislature is on recess.
In conclusion, the MFDP reiterated that the 2024 GAC Report unequivocally “demonstrates a clear and significant improvement in the management of public finances under the current administration.” The transition from an “Adverse” to a “Qualified” audit opinion, coupled with detailed improvements across various financial management indicators, underscores the government’s commitment to enhanced accountability and transparency.
