By Linus Flomo
The General Auditing Commission (GAC) audit reveals that the Incident Management System (IMS), the entity responsible for leading Liberia’s COVID-19 response, remitted a total of US$507,856.02 to the Government of Liberia’s Consolidated Account.
These funds, collected from passenger testing fees, were transferred during Fiscal Year 2024 and provided a significant boost to the government’s financial reserves.
The GAC audit reviewed the IMS’s financial activities from Fiscal Years 2020/2021 through 2023, confirming that the system’s financial records offered a fair and accurate reflection of its receipts and expenditures as of December 31, 2023.
The audit covered areas such as budget performance, actual spending, and compliance with the International Public Sector Accounting Standards (IPSAS 2017), which governs how public sector entities manage and report their financial transactions.
In accordance with Liberia’s Public Financial Management Act of 2009 (amended in 2019), any unspent funds or undisbursed appropriations must be returned to the government’s Consolidated Account within 90 days after the close of the fiscal year.
The GAC confirmed that the IMS strictly adhered to these provisions, ensuring that any leftover resources were managed properly and transferred to the appropriate accounts.
This adherence to financial regulations was a critical component in maintaining fiscal discipline and ensuring public trust in the IMS’s financial management practices.
Over the course of the pandemic, the GAC conducted five separate audits on the IMS and these included four financial audits and one performance audit, providing a thorough assessment of the system’s financial practices and performance throughout the pandemic.
The financial audits resulted in both qualified and unqualified opinions across various fiscal years.
For Fiscal Year 2020/2021 and Special Fiscal Year 2021 (which covered the period from July to December 2021), the IMS received qualified opinions.
A qualified opinion suggests that, while the financial statements were generally reliable, there were some identified misstatements or deviations that were not severe enough to invalidate the overall report.
In these cases, the GAC found minor issues but deemed them insufficient to compromise the trustworthiness of the financial data.
However, by Fiscal Year 2022 and Fiscal Year 2023, the IMS had significantly improved its financial oversight.
Both years received unqualified opinions from the GAC, meaning the financial records were found to be free of material errors and accurately represented the financial position of the IMS.
The transition from qualified to unqualified opinions underscored the progress made in strengthening financial controls and accountability within the IMS.
The GAC lauded the IMS for the notable improvements in its financial management over the course of the pandemic response.
By the end of Fiscal Year 2023, the IMS had positioned itself as a model of effective public financial management, particularly in the context of emergency health response funding.
This commendation not only highlights the importance of stringent financial practices but also sets a precedent for how public funds should be managed during future crises.
The GAC’s comprehensive audit serves as a key example of the importance of transparency and accountability in managing public health funds.
By closely adhering to national and international financial standards, the IMS ensured that resources allocated for Liberia’s COVID-19 response were properly accounted for and that any surplus was returned to the government for future use.
The success of the IMS’s financial management has broader implications for Liberia’s approach to handling public funds in times of crisis.
The lessons learned from this audit are likely to inform future strategies, particularly as the government continues to strengthen its financial management systems in preparation for potential health emergencies or other national challenges.
The GAC’s findings reinforce the value of continuous auditing and oversight in ensuring that public institutions not only comply with financial laws but also evolve to meet higher standards of transparency, efficiency, and accountability.
