Transmittal Letter

1 Transmittal Letter December, 2020 The Clerk Sierra Leone House of Parliament Tower Hill Freetown Dear Sir, In accordance with Section 119 (4) of the 1991 Constitution of Sierra Leone, I have the pleasure and honour to submit my report on the Accounts of Sierra Leone for the financial year ended 31st December, 2019. Yours faithfully, Lara Taylor-Pearce (Mrs) FCCA, FCA (SL) AUDITOR-GENERAL OF SIERRA LEONE i TABLE OF CONTENTS PAGE List of Abbreviations and Acronyms .. ii Auditor-General s Statement .. iv Executive .. vi Introduction .. xvii PART I Chapter I - Auditor-General s Opinion on the Public PART II Chapter II - Performance 61 Chapter III - Local 71 PART III Chapter IV - Public Enterprises, Commissions and Donor Funded 106 Chapter V - Ministries, Department and Agencies.

2 306 APPENDICES - .. 454 ii LIST OF ABBREVIATIONS AND ACRONYMS ACC - Anti-Corruption Commission AFROSAI-E - African Organisation of Supreme Audit Institutions - English-speaking countries AGD - Accountant General Department ASSL - Audit Service Sierra Leone BSL - Bank of Sierra Leone CA - Chief Administrator CAM - Compliance Audit Manual CBIPSAS - Cash Basis International Public Sector Accounting Standards CF - Consolidated Fund COVID-19 - Corona Virus Disease, 2019 CSOs - Civil Society Organisations DAO - District Agriculture Officer DFID - Department for International Development DHMT - District Health Management Team DMO - District Medical Office(r)

3 EDSA - Electricity Distribution and Supply Authority EGTC - Electricity Generation and Transmission Company EIA - Environment Impact Assessment EPA - Environment Protection Agency FAM - Financial Audit Manual FAR - Fixed Assets Register FMR - Financial Management Regulations FTT - Foreign Travel Tax GM - General Manager GoSL - Government of Sierra Leone GPFS - General Purpose Financial Statements GST - Goods and Services Tax HRMO - Human Resources Management Office IAS - International Accounting Standards ICB - International Competitive Bidding ICT - Information, Communication and Technology IFMIS - Integrated Financial Management Information System IFRS - International Financial Reporting Standards IPAM - Institute of Public Administration and Management IHPAU - Integrated Health Project Administration Unit INTOSAI - International Organisation of Supreme Audit Institutions IPSAS - International Public Sector Accounting Standards ISSAIs - International Standards of Supreme Audit Institutions LPO - Local Purchase Orders MOF - Ministry of Finance MDAs - Ministries.

4 Department and Agencies MS - Medical Superintendent MTNDP - Medium Term National Development Plan iii NATCOM - National Telecommunications Commission NCB - National Competitive Bidding NCP - National Commission for Privatisation NMA - National Minerals Agency NPPA - National Public Procurement Authority NRA - National Revenue Authority NTB - National Tourist Board PAC - Public Accounts Committee PAYE - Pay-As-You-Earn PFMA - Public Financial Management Act PPR - Public Procurement Regulations PS - Permanent Secretary RDTs - Research Development and Trainings SAI - Supreme Audit Institution SDGs - Sustainable Development Goals SLP - Sierra Leone Police RFQ - Request for Quotations iv AUDITOR-GENERAL S STATEMENT We have over the years conducted audits on a wide range of services and programmes delivered by ministries, department, government agencies and other institutions in the broader public sector.

5 We have identified areas that need improvement and have taken great care to make practical recommendations based on our audit findings. Recommendations are a critical part of our audit reports. Their implementation is important to drive positive improvements in the cost-effective delivery of programmes and services for Sierra Leoneans. The audit process seeks input and agreement on these recommendations from senior management in the MDAs we audit, prior to the finalisation of the reports. Management believes that identifying issues and providing recommendations is only the first step. The real work begins when those responsible, take action to put our recommendations into practice.

6 It is for this reason that a key part of our work is to follow up on recommendations made in past audits, in order to assess the progress made on our previously recommended actions. The outbreak of COVID-19 has had a negative impact on all activities across the country. The emergence of the virus in Sierra Leone like in other African countries has created a situation engulfed with a mix of several consequences such as; the lockdowns, social-distancing, closure of borders, disruptive changes to private businesses, fear and stigmatisation which have affected households and economic activities. The COVID-19 pandemic has not only negatively impacted businesses, but has also considerably impeded the work of the ASSL.

7 In this 2020 financial year, a considerable number of our planned audits were not completed. As an organisation, we have instituted measures aimed at protecting our staff, whilst at the same time ensuring optimum productivity. Most of our audit clients however maintained half workforce capacity, following government s directive to cut down on the number of staff coming to the offices nationwide during this period. This resulted in delays and unavailability of audit clients to provide requisite information for the audits. The pandemic also prevented my staff from benefiting from much-needed face-to-face continuous professional development trainings. Amidst this dismal situation, the ASSL staff were able to consolidate the knowledge acquired in the 2019 integration audits and from the introduction of new audits methodologies as dictated in the Financial Audit Manual (FAM) and Compliance Audit Manual (CAM).

8 These frameworks were used in evidence gathering, data analysis, identification of a deeper audit scope, and most importantly, they also enhanced to a greater extent, the capacity of our staff in carrying out specialised audits. We have established an Information Technology Audit Unit which will seek to evaluate the information systems within MDAs and the safeguards available to protect these systems. Furthermore, we continued with our inclusive approach during the development of the ASSL Strategic Plan 2021-2025. Questionnaires developed along various thematic areas were used to guide the discussions with civil society organisations, MDAs and other stakeholders. It is my firm belief that the v contributions of these stakeholders will help shape a more inclusive strategic plan, which will serve as a requisite for public sector oversight bodies.

9 Management would like to recognise the Government of Sierra Leone for its sustained commitment to reforms within the public sector. We acknowledge the role played by the PAC for the continued public scrutiny of our reports and those of other oversight bodies. Their support is critical to ensuring the achievement and sustainability of audit outcomes. The ASSL remains firmly committed to making positive contributions in overcoming the obstacles to prudent financial management and control. We will continue to make ourselves available and provide proactive insights into the root causes of weak internal control environments. The engagements will include timely feedback on, and inputs into the adequacy of the assurance provided by all stakeholders.

10 We would also want to acknowledge development partners who have continued to show interest in the solidification of the operational competence within the ASSL. Management extends its sincere thanks and appreciation to all ASSL staff for the continued devotion to their duties and responsibilities against all odds. vi EXECUTIVE summary This executive summary provides an overview of the main features of each chapter in this report. Where necessary, further comments are added so that on a whole, the summary is a standalone document that precisely mirrors the contents of Parts I, II and III. It is laid out in the same order as the chapters in the annual report. Interested readers looking out for more detailed information can only go to the individual chapters.