d ---\ MINISTRY DF ENVIRDNMENT, SCIENCE, TECHNDLDGY 6 INNDVATIDN ~.,-,'

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized MNSTRY DF ENVRDNMENT, SCENCE, TECHNDLDGY 6 NNDVATDN Tel: Fax: / info@mesti.gov.2:h Website: THE COUNTRY DRECTOR WORLD BANK ACCRA. Republic of Ghana ATTN: MR. ASFERACHEW ABATE ABEBE TASK TEAM LEADER (TTL) SUSTANABLE LAND & WATER MANAGEMENT PROJECT SUBMSSON OF 2016 AUDT REPORT Post Office Box M232 Ministries, Accra Ghana 25TH SEPTEMBER, 2017 The Ministry of Environment, Science, Technology and nnovation (MEST) wishes to submit the 2016 Audit Report on the Accounts of the Sustainable Land and Water Management Project (SLWMP). We count on your co-operation. Thank you. d ---\ ~.,-,' SALM D1:1L-SALAM CHEF DRECTOR FOR: MNSTER Cc: Project Coordinator (SL WMP), MES T Chief Accountant, MEST Head, nternal Audit, MEST

2 AUDT SERVCE case of reply the umber and date of the, tter should be uoted CGAD/ADM.5/17 My Ref.No:.... Tel: 233 (0) /28/29 ax: 233 (0) 302 ~ BSTE: Good Governance a11d Acco11ntability P. 0. Box... ~:?.? Accra i:ifl..Sept6moor-; THE CHEF DRECTOR MES ACCRA TRANSMTTAL LETTER,. forward herewith our report on the Accounts of the Sustain~ble Land and Water Management Project (SL WMP) in Ghana under the Ministry of Environment, Science and Technology and nnovation (MEST) for the year ended 31st December, ODAME AGYEKUM ASSSTANT AUDTOR-GENERA/CGAD for: AUDTOR GENERAL cc: The Minister MEST Accra The Auditor-General Audit Service Accra

3 REPORT OF THE AUDTORS ON THE ACCOUNTS OF SUSTANABLE LAND AND WATER MANAGEMENT PROJECT (SLWMP) FOR MNSTRY OF ENVRONMENT, SCENCE, TECHNOLOGY AND NNOVATON FOR THE PEROD 1ST JANUARY - 31ST DECEMBER 2016

4 CONTENT Page 1. ntroduction 2. Project Objective 3. Project Description Audit Objectives 3 5. Audit Evidence 3 6. Project Management Team 4 7. Audit Opinion on the operating statement on sustainable land water management project for the year ended 31st December Consolidated balance sheet and operating statement on sustainable land water management project for the year under review (2016) General Accounting Policy Notes forming part of the Financial statements on sustainable land water management project for the year ended,31 st December, Current Grant Financial statements and notes Additional Financing Financial statements and notes Managementlssues 30

5 SUSTANABLE PROJECT REPORT NTRODUCTON The Ministry of Environment, Science, Technology and nnovation (MEST) is implementing the sustainable land and water management Project (SLWMP) in collaboration with Forest Services Division (FSD) and Wildlife Division of the Forestry Commission (FC), Environmental Protection Agency (EPA), the Ministry of Food and Agriculture (MOFA) and Savannah Accelerated Development Authority (SADA). The SLWMP is funded by Global Environmental Facility (GEF) grant to support the government of Ghana to expand the area under Sustainable Land and water Management in selected watersheds. The eight-year project aimed to support the Sustainable Development initiative for the Northern Savannah to realize the vision of a diversified and resilient economic zone in North with significant regional environmental benefit. PROJECT OBJECTVE The Specific objectives of the projects are to; a. Strengthen spatial planning for identification of linked watershed investments in the Northern Savannah region of Ghana. b. To support the uptake of improved SLWM technologies within selected micro watersheds c. To enhance conservation of biodiversity in selected micro watershed. PROJECT DESCRPTON The objective of the project is to expand the area under sustainable land and water management practices in selected watersheds. 1

6 Capacity Building for ntegrated Spatial Planning Provision of technical advisory services to establish a spatial planning unit within the Savannah Accelerated Development Authority (SADA), carry out mapping and investments, and strengthen the capacity of SADA and relevant implementing agencies to guide and undertake decisionmaking for investment across the Northern Savannah region taking into account watershed and ecological systems. Water and Land Management 1. Carrying out of programs of activities to strengthen the capacity at the District and Community level, and promotion and monitoring of Project activities, including: (a) provision of technical assistance and training to conduct participatory and microwatershed exercises for relevant staff of the Ministry of Food and Agriculture, Ministry Of Environment, Science Technology, and nnovation (MEST) and the Environmental Protection Agency in ten (10) selected Districts in the 3 Northern Regions. 2. mplementing micro-washed plans, including: (a) adoption of rangeland management activities and other technologies introduced under the Project in the selected Districts in the 3 Northern Regions; (b) provision of labor-intensive investments in small-scale flood and water management infrastructure. 3. Strengthening national sustainable land management and ecosystem services monitoring, including: (a) monitoring of environmental services generated in the Project area, including vegetation, soil carbon, surface and ground water, through the implementation of the environmental indices linked to the technologies introduced under the Project; (b) determining marketable value of the ecosystem service in the Project area; (c) identification of potential buyers of environmental services generated under the Project; (d) assessment of the legal, policy and land ownership in the implementation of Payment for Environment Services; and (e) conducting Project mpact Evaluation. 2

7 4. Carrying out a biodiversity program, including; (a) establishment of two collaborative wildlife management areas; (b) training of the CR EMA.management units, participating non-governmental and community-based organizations and Wildlife Division staff; {c) carrying out a livelihood assessment study for the corridor area; (d) construction of two water points for community use; (e) construction of additional rooms in staff housing to facilitate the range system of staff patrol; (f) clearing access tracks between the Gbele and Wahabu camps; (g) wildlife prevention and management activities; (h) carrying out diagnostic studies to prepare eight forest management plans for the target forest r,eserves; (i) carrying out forest enrichment planting and natural regeneration in degraded areas within eight target gazetted forest reserves; and (j) carrying out of assessment studies for carbon stocks. AUDT OBJECTVES The following are our audit objectives: i. To express our professional opinion on whether the fund accountability statement for the project presents fairly in all material respect; ii. iii. iv. To ascertain whether proper books of accounts have been kept; To ensure that, World Bank funds received were used for the intended purpose; To evaluate and obtain sufficient understanding of the internal control structure, assess control risk and identify reportable issues, including material internal control weakness; v. To ensure that, adequate records have been kept. AUDT EVDENCE The following techniques were adopted in obtaining audit evidence to enable us express our professional opinion: i. nterviews; ii. iii. iv. Documents analysis; Re-performance of activities; Physical verification of Project Assets at mplementing agencies; 3

8 PROJECT MANAGEMENT TEAM FOR THE PEROD NAME POSTON LOCATON Salimata - Abdul - Salam Chief Director MEST Alexander Kwaning Director F&A MEST Fredua Agyemang Director Environment MEST Baffour Kyei Head of Accounts MEST saac Charles Acquah Focal Person EPA Kingsley Amoako Focal Person MOFA Edith Abroquah Focal Person FSD vy Lomotey Technical Officer MEST Charles Fobi Project Accountant MEST Rosemary Darko Procurement Officer MEST 4

9 NDEPENDENT AUDTOR'S REPORT ON THE OPERATNG STATEMENT ON SUSTANABLE LAND WATER MANAGEMENT PROJECT FOR THE YEAR ENDED 31sr DECEMBER 2016 We have audited the financial statements of the Sustainable Land and Water Management Project (SLWMP) under the Ministry of Environment, Science, Technology and nnovation (MEST) which is implementing the program in collaboration with Forest Services Division (FSD) and Wildlife Division of the Forestry Commission (FC), Environmental Protection Agency (EPA), the Ministry of Food and Agriculture (MOFA) and Savannah Accelerated Development Authority (SADA). The SLWMP is funded by Global Environmental Facility (GEF) grant to support the government of Ghana to expand the area under Sustainable Land and water Management in selected watersheds. Responsibilities of Project Management Team and Auditors 1. Management of the Ministry of Environment, Science, Technology and nnovation (MEST) is responsible for the preparation of the financial statements. Our responsibility is to express an independent opinion on the financial statements, based on our audit. Basis of Opinion 2. We conducted our audit in accordance with international auditing standards. Those standards require that, we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of any material misstatements. The audit includes examining on a test basis, evidence supporting the amounts and disclosures made by the project management in the financial statement. The audit also includes assessing the accounting principles used and significant estimates made by the project management, as well as, evaluating the overall presentation of the financial statement. 3. We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit. 5

10 Opinion n our opinion, the Financial Statements present fairly the Financial Position of the program and of its result of operation. ODAME AGYEKUM ASSSTANT AUDTOR-GENERAL/CGAD for: AUDTOR-GENERAL 6

11 CONSOLDATED (CURRENT AND ADDTONAL FNANCNG) BALANCE SHEET AS AT 31sr DECEMBER, 2016 (ALL AMOUNTS ARE N USD UNLESS OTHERWSE STATED) Accumulated Project Expenditure 2 12,681, ,834, CURRENT ASSETS Cash and cash equipment 3 893, ,038, ,574, ,873, REPRESENTED BY: GEF/DA FUND-GRANT 4 13,573, ,872, OTHER CONTRBUTONS 5 1, ,

12 CONSOLDATED OPERATNG STATEMENT ON SUSTANABLE LAND WATER MANAGEMENT PROJECT (CURRENT GRANT AND ADDTONAL FNANCNG) FOR THE YEAR ENDED, 31 5 T DECEMBDER, 2016 (All amounts are stated in US Dollars) RECEPTS GRANT RECEVED OTHER NCOME NOTES ,701, ,664, , ,701, ,665, PAYMENTS Category , , Category 2 8 1,516, ,891, Category 3 9 1,280, ,133, Category , , ,846, ,696, NET RECEPTS ( ) ( ) CHEF DRECTOR CHEF ACCOUNTANT 8

13 NOTES 1. ACCOUNTNG POLCES The following are the significant accounting policies adopted by the Project Management in the preparation of the financial statements. a. Basis of Accounting The financial statements have been prepared on the historical cost convention and no procedures have been adopted to reflect either the impact of specific price changes or changes in the general level of inflation. b. Foreign currency Transactions Transactions in foreign currencies (other than United States Dollars) are converted at an average exchange rate for all expenditure items during the year. Current assets denominated in foreign currencies are translated at the rate ruling at the balance sheet date and fixed assets are translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions are credited to or charged against project cost summary in the period in which they arise. Expenditures on Goods, Consultants services, training and operating costs incurred locally are denominated mainly in local Currency (Ghana cedis) and have been translated using an average rate of GHC and GH3.84 to US$ 1.00 respectively for Current Grant and Additional Financing 1 for 2016 transactions and the closing rate of GH3.97 to US$1.00. c. ncome ncome comprises i. Grants which represent cash remittances from Donors ii. iii. Exchange Gains. nterest d. Expenditure Expenditure is rec.ognized on cash basis. e. Capital Expenditure Capital expenditure is expensed on acquisition. No depreciation is charged. 9

14 NOTE 2. ACCUMULATED PROJECT EXPENDTURE This represents total expenditure incurred from both Current Grant and Additional financing by the various Categories for the year under review Category cumulative to 31st Dec , ,712, ,702, ,391, cumulative to 31st Dec , ,195, ,422, ,356, NOTE3 CASH AND CASH EQUVALENTS These represent project funds held by Project Coordinating Units (PCU) and other implementing agencies (both Current Grant and Additional Financing. The details are as follows: GEF ACCOUNT:. Dollar 802, ,362, Operating account (71,142.07) (212,757.26) 111. EPA 77, , V. DCS, MOFA 59, (224,398.04) v. Wildlife 18, , V. FSD 6, ,

15 NOTE4 GEF/DA FUND Balance as at 1st January 10,872, ,207, Disbursement during the year 2,701, ,664, Balance as at 31st December, ,573, ,872, NOTE 5 OTHER CONTRBUTONS Balance b/d 1, Addition during the year , Ao1.s1 1, NOTE6 RECEPTS The amount of US$ 2,701, represent funds received into the sustainable Land and Water Management Project for both current grant and Additional financing at the National nvestment bank. Grant No GH Account Number US$ 78, Grant No GH Account Number US$ 2,622, US$ 2,701, NOTE7 CATEGORY 1-SADA Training & conference 10,00 Travelling Cost Spatial Devt. Framework Operating cost 5, , , , ,

16 NOTES CATEGORY 2- EPA, MOFA & WLDLFE Training & Conference 216, , Consultancy 86, , Soil Carbon 20, Field Trips 147, , Office Expenses 35, , Awareness on CREMA 14, , Bank Charges Field Equipment 29, , Running cost of Vehicles 52, , Advertisement 1, Agric. nputs 2, Construction of Waterholes 189, , Office Equipment 2, , Sensitization of Env. Safeguards 24, Assessment & Diagnostic Survey 27, Bicycles 15, Preparation of Mgt Plans 63, , Enrichment Planting 105, , Seedlings 39, , Study Tour 25, Motor Bikes 5, , Develop CREMA Mgt. Plans 39, , Fire Control & prevention 56, , Motor Vehicles 35, mpact Evaluation 9, , Watershed planning Exercise 73, , Awareness creation in Wildlife Mgt 27, CREMA Corridor Mgt. 46, Negotiate and agree on CREMA boundaries 13, naugurate and agree on CREMA boundaries 9, Rehabilitation of bungalows 36, Sign Boards 34, Awareness on Biodiversity conservation 12, Printing of Mgt. Plans 5, Community Range lands 108, Demonstration and Extension support 32, Demarcate and map out CREMA boundaries 23, PES Auction beneficiaries 22,

17 Awareness creation in wildlife mgt. mplement mgt. plans 5, , NOTE 9. CATEGORY 3 Sub Projects Sub-Projects 1,280, ,133, NOTE 10. CATEGORY4- Project Coordinating Unit 2016 Training& conference 36, Audit Fees 0.0 Contract Staff 15, Steering Committee meetings 2, Office Expenses 5, Bank Charges 1, Exchange Difference {Gain)/Loss {79,405.22) Running of vehicles 11, Office Equipment 1, Field Trips 38, , , , , , , ,

18 SPECAL ACCOUNT RECONCLATON STATEMENT AS AT 31 ST DECEMBER, 2016 Balance as at 1st January: NB Dollar Account NB Cedi Account Ecobank- EPA Account Ecobank- MOFA Account Ghana Commercial Bank - Wildlife GCB-FSD Reimbursement through special Account Balance as at 3pt December: NB Special Account NB Cedi -Account ECOBANK- EPA ECOBANK- MOFA Account GCB - Wildlife GCB- FSD Amount of eligible expenditure 1,362, (212,757.26) 63, (224,398.04) 8, , ,701, , (71,142.07) 77, , , , ,846,

19 CURRENT GRANT BALANCE SHEET AS AT 31 5 T DECEMBER, 2016 {ALL AMOUNTS ARE N UNLESS OTHERWSE STATED) Notes Accumulated Project Expenditure 2 7,737, ,472, CURRENT ASSETS Cash and cash equipment 3 252, , REPRESENTED BY: GEF/DA FUND-GRANT 4 7,989, ,910, OTHER CONTRBUTONS:

20 OPERATNG STATEMENT FOR THE YEAR ENDED, 31 5 T DECEMBDER, 2016 (All amounts are stated in US Dollars) RECEPTS NOTES Grant Received nterest Earned 6 78, , , , PAYMENTS Category 1 Category 2 Category 3 Category , , , , , , , , , ,333, NET RECEPTS (185,880.43) (630,775.69)

21 NOTES 1. ACCOUNTNG POLCES The following are the significant accounting policies adopted by the Project Management in the preparation of the financial statements. a. Basis of Accounting The financial statements have been prepared on the historical cost convention and no procedures have been adopted to reflect either the impact of specific price changes or changes in the general level of inflation. b. Foreign currency Transactions Transactions in foreign currencies (other than United States Dollars) are converted at an average exchange rate for all expenditure items during the year. Current assets denominated in foreign currencies are translated at the rate ruling at the balance sheet date and fixed assets are translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions are credited to or charged against project cost summary in the period in which they arise. Expenditures on Goods, Consultants services, training and operating costs incurred locally are denominated mainly in local Currency (Ghana cedis) and have been translated using an average rate of GHC 3.78 to US$ 1.00 for 2016 transactions. c. ncome ncome comprises 2. Grants which represents cash remittances from Donors 3. Exchange Gains. 4. nterest d. Expenditure Expenditure is recognized on cash basis. e. Capital Expenditure Capital expenditure is expensed on acquisition. No depreciation is charged. 17

22 2. ACCUMULATED PROJECT EXPENDTURE Category Cumulative to 31st Dec Cumulative to 3pt Dec , , ,926, ,734, ,637, ,588, ,297, ,288, , CASH AND CASH EQUVALENTS These represent project funds held by PCU and other implementing agencies. The details are as follows: GEF special Account 11. Operating account 111. EPA V. DCS, MOFA V. Wildlife V. AF 1 ACCOUNT 175, (27,141.31) (4,962.46) (25,040.62) (15,451.61) 150,00 ZS2.466,7Z 554, , , (257,629.81) (16,185.46) ~38,341,20 4. GEFLf DA FUND Balance as at pt January 7,910, ,207, Disbursement during the year 78, , Balance as at 31st December,

23 5. OTHER CONTRBUTONS Balance as at 1st January Bank nterest Addition during the year ~ 6. RECEPTS These represent amounts received into the sustainable Land and Water Management Project Grant No GH Account Number at the National nvestment bank as follows: Receipts Replenishment No. 14 Replenishment No. 15 Amount 71, , CATEGORY 1 - SADA Training & Conference Spartial Devt, Framework 10,00 407, Travelling Cost Office Exp~nses 5, ,

24 8. CATEGORY 2- EPA, MOFA & WLDLFE Training & Conference Consultancy Soil Carbon nternational Conference Field Trips Office Expenses Demonstrations Running cost of Vehicles Advertisement Agric nputs Construction of Waterholes , , , , , , , , , , ~ CATEGORY 3 Sub-Projects , , CATEGORY 4 Training& conference Audit Facilitation Expenses Contract Staff Office Expenses Bank Charges Field Trips , , , , , , Exchange Difference Running of vehicles , ,

25 SPECAL ACCOUNT RECONCLATON STATEMENT AS AT 31 ST DECEMBER, 2016 Balance as at pt January: NB Dollar Account NB Cedi Account Ecobank - EPA Account Ecobank- MOFA Account Ghana Commercial Bank - Wildlife Reimbursement through special Account 554, , , (257,629.81) (16,185.46) 78, Balance as at 3pt December: NB Special Account NB Cedi Account Ecobank - EPA Account Ecobank- MOFA Account GCB - Wildlife AF 1 Account Amount of eligible expenditure 175, (27,141.31) (4,962.46) (25,040.62) (15, 451, 61) 150,00 264, ,

26 ADDTONAL FNANCNG 1 BALANCE SHEET AS AT 31 5 T DECEMBER 2016 {ALL AMOUNTS ARE N UNLESS OTHERWSE STATED) NOTES Accumulated Project Expenditure 2 4,944, ,362, CURRENT ASSETS Cash and Cash equivalent 3 640, , REPRESENTED BY GEF/DA FUND-GRANT 4 5,583, ,961, OTHER CONTRBUTONS 5 1, , ,55 Z,96Z.Z48.~13

27 OPERATNG STATEMENT FOR THE YEAR ENDED, 31sr DECEMBDER, 2016 (All amounts are stated in US Dollar) RECEPTS NOTES 2016 Grant Received 6 2,622, nterest Earned ,961, , PAYMENTS Category 2 7 1,324, Category 3 8 1,232, Category , NET RECEPTS 40, ,460, , , ,608.17

28 NOTES 1. ACCOUNTNG POLCES The following are the significant accounting policies adopted by the Project Management in the preparation of the financial statements. a. Basis of Accounting The financial statements have been prepared on the historical cost convention and no procedures have been adopted to reflect either the impact of specific price changes or changes in the general level of inflation. b. Foreign currency Transactions Transactions in foreign currencies (other than United States Dollars) are converted at an average exchange rate for all expenditure items during the year. Current assets denominated in foreign currencies are translated at the rate ruling at the balance sheet date and fixed assets are translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions are credited to or charged against project cost summary in the period in which they arise. Expenditures on Goods, Consultants services, training and operating costs incurred locally are denominated mainly in local Currency (Ghana cedis) and have been translated using an average rate of GHC 3.84 to US$ 1.00 for 2016 transactions. c. ncome ncome comprises 5. Grants which represents cash remittances from Donors 6. Exchange Gains. 7. nterest d. Expenditure Expenditure is recognized on cash basis. e. Capital Expenditure Capital expenditure is expensed on acquisition. No depreciation is charged.

29 2. ACCUMULATED PROJECT EXPENDTURE Category 2 Cumulative to 3pt December, ,785, cumulative to 31st Dec ,460, ,065, , , , CASH AND CASH EQUVALENTS These represent project funds held by PCU and other implementing agencies. The details are as follows: GEF special Account:. Dollar 627, , Operating account (44,000.76) {345,162.15) 111. EPA 82, , V. DCS, MOFA 84, , V. Wildlife 34, , V. FSD 6, , V. Current Grant (150,00)

30 4. GEF/DA FUND Balance as at ist January 2,961, Disbursement during the year Balance as at 31st December, Z OTHER CONTRBUTONS Balance as at ist January 1, Addition during the year (Exchange Gain) 1, , , GRANT RECEVED These represent amounts received into the sustainable Land and Water Management Project Grant No GH Account Number at the National nvestment bank as follows: Date Receipts Amount 5/6/15 23/9/15 31/12/15 Replenishment Replenishment Replenishment ,000,00 666, ,

31 7. CATEGORY 2 - EPA, MOFA, WLDLFE & FSD Training & Conference Running of Vehicles Watershed Planning Exercise Negotiate and agree on CREMA boundaries naugurate & Devolve power of Authority to CREMA Fire Prevention & Control Rehabilitation of Bungalows Sign Boards Awareness on Biodiversity conservation Printing of Mgt. plans Consultancy Community Range Lands Field Trips Office Expenses Bank charges Office Equipment Awareness on CREMA Demonstration and Extension support Demarcate and map out CREMA boundaries Preparation of Mgt Plans Enrichment Planting Seedlings Sensitization Field Equipment PES Auction Beneficiaries Motor Bikes Develop CREMA Magt. Plans Running of creation in Wildlife Mgt mpact Evaluation mplement Mgt Plans Assessment & Diagnostic survey Bicycles Study Tour Advertisement Motor Vehicle CREMA Corridor Mgt. 216, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

32 8. CATEGORY 3 Sub-Projects ,232, , CATEGORY Training& conference Contract Staff Steering Committee Meetings Office Equipment Office Expenses Bank Charges Field Trips Exchange Difference Running cost of vehicles 36,098:78 12,85 2, , , , (79,405.22) , , ,

33 SPECAL ACCOUNT RECONCLATON STATEMENT AS AT 31 ST DECEMBER, 2016 Balance as at 1st January: NB Dollar Account NB Cedi Account (345,162.15) Ecobank - EPA Account Ecobank- MOFA Account Ghana Commercial Bank - Wildlife Ghana commercial bank - FSD Reimbursement through special Account 807, , , , , ,622, Balance as at 31st December: NB- Dollar Account NB- Cedi Account Ecobank - EPA Account Ecobank- MOFA Account Current Grant GCB - Wildlife FSD Amount of eligible expenditure 627, (44,000.76) 82, , (150,00} 34, , ,581, ,222,906.29

34 MANAGEMENT SSUE FALURE TO PROVDE EXPENDTURE RETURNS (USD)-15,000 Criteria Best accounting practice requires that disclosures are important in communicating financial information to stakeholders. nternational Public Sector Accounting Standard (PSAS) requires those charged with the provision of financial information to disclose information which may influence stakeholders' decision when such information is known to them. Condition Contrary to the above practice we observed that, SADA office in Tamale failed to provide returns on the amount of USD 15,000 transferred into their account for capacity building, operating cost for maintenance of office equipment and administration as per the 2016 work plan. Cause The lapse could be attributed to non-enforcement of supervisory control. Effect n view of the above lapse the audit team could not verified nor confirmed whether the money released to SADA was utilized according to the provisions in the work plan. Recommendation We recommended that management should demand the submission of those returns for audit validation in order to give fair opinion on the accounts audited. Management's Response According to Management they have persistently demanded the returns for the amount of USD 15,00 from SADA office in Tamale. Currently a team of three (3) members has been constituted to visit the SADA office to investigate the cause of the failure and possibly retrieve the relevant documents by the end of September, 2017.