The Director-General of the Internal Audit Agency, Dr. E.O. Osae on 4th July, 2022 inaugurated the Audit Committee of the Ghana Cocoa Board (COCOBOD).
The event was chaired by the institution’s Board Chairman, Mr. Peter Mac-Manu. The opening remarks was delivered by Hon. Joseph Boahen Aidoo, Chief Executive Officer (CEO) of COCOBOD. Hon Boahen Aidoo informed the meeting that COCOBOD operates over $2 billion portfolio which is the largest as far as public institutions are concerned. To manage this portfolio, Hon Boahen Aidoo said there is the need to for a very robust Audit Committee to ensure auditing is done right before External Auditors come in. He added that when internal controls are weak, no institution would be confident to appear before PAC. He expressed confidence in the calibre of members of the Committee and said he was optimistic they would be able to provide a deeper and stronger scrutiny of internal controls to avert any adverse finding by External Auditors. He welcomed members and tasked them to ensure the institution has very healthy books to meet the expectations of the public and tax payers.
Dr. Osae in delivering his speech said he was happy with the composition of the Committee because the members are experienced professionals. He stated that the Audit Committee is a statutory committee provided under the PFM Act. He explained that it is not a sub-Committee of the Board and that is why it is not chaired by a Board member. Dr. Osae informed the Committee that their roles are three which are mandatory, advisory and supporting. He mentioned that mandatorily, members are to ensure the implementation of audit recommendations contained in internal, external and monitoring reports. He charged members to work with the Internal Audit Unit (IAU) to put the institution’s books in order before admitting External Auditors. He added that if infractions are discovered by External Auditors, it means either the IAU or the Audit Committee is not performing.
Speaking on the advisory roles, Dr. Osae stated that the Committee is to advise Management to adhere to PFM laws, especially those relating to the industry COCOBOD falls within. He continued that the Auditor-General raised a number of issues on the institution in its report. He requested the Committee to work with Management to ensure these issues do not re-occur as it puts COCOBOD in a bad light in the eyes of the public. He mentioned that internal auditing in the public sector is moving away from a conventional one to a risk-based one. The Committee is therefore to advise Management on enterprise risk management practices. He tasked members to ensure the risk register of COCOBOD is populated periodically. On the supporting roles, Dr. Osae said the Committee should assist the IAU to submit required reports.
The Director-General mentioned some activities being undertaken by the Agency. He mentioned the IAS Bill to convert the Agency into a Service to ensure the independence of Internal Auditors. He said the Agency has been naming and shaming for non-submission of required reports but is now moving on to the application of sanctions provided under the PFM Act. The 2021 Audit Committee Report was due for submission on 30th June,2022 and as such the Committee should ensure its submission if it has not already been done. He intimated that the 2nd Quarter Internal Audit Report is due for submission by 31st July, 2022. He tasked members to be in attendance in Entrance and Exit meetings of External Auditors to ensure value addition to the system. He also charged members to make time to learn and understand the operations of the institution and as such, tasked Management to organise an orientation for the Committee. He spoke about this year’s Internal Audit Conference and entreated Management to sponsor Audit Committees members to the Conference to afford them the opportunity to learn.
Members of the Committee are Mr. Christian Tetteh. Sottie (IAA Rep and Chairman), Dr. Grace Bediako (IAA Rep), Dr. Philip Aveh (ICAG Rep), Hon Herbert Krapa and Hon Kwadjo Asante (Board members of COCOBOD).
