By Lawrence Williams
Local councils nationwide are struggling to establish strong audit accountability mechanisms, with about 45 percent of them found to be non-compliant with specific requirements outlined in the Local Government Act (LGA) 2022.
Notably, 10 out of the 13 councils assessed have failed to constitute audit committees as mandated by Section 80 of the Act.
Furthermore, these councils have not adhered to statutory requirements that oblige them to present audited financial statements and internal audit reports at council meetings for deliberation and necessary action.
These lapses pose significant challenges in maintaining fiscal discipline and preventing corruption at the local government level.
It follows a joint assessment by governance watchdogs SEND Sierra Leone and Budget Advocacy Network (BAN), supported by Irish Aid.
The findings were compiled in a position paper titled “Strengthening Audit Accountability at the Local Government Level in Sierra Leone,” which underscores the urgent need for robust audit accountability measures to ensure transparency and effective governance within local councils.
The Public Financial Management (PFM) Act serves as a foundational framework for maintaining fiscal discipline across government entities, including local councils.
Enacted in 2016, this legislation confers the responsibility of managing public funds to the central government’s Ministry of Finance, empowering it to ensure adherence to fiscal regulations and oversight on audit accountability.
Conversely, the LGA entrusts elected councilors with the task of supervising financial reporting and audit compliance at the local government level. Audit committees, established under the LGA, carry out similar functions to those of the parliamentary account committee.
Nevertheless, the findings revealed that audit committees instituted under the PFM Act and extended to local councils as a supplementary mechanism have significantly “overshadowed the audit committees under the LGA”.
This situation puts significant constraints on the oversight capabilities of councilors regarding local resources and the effectiveness of local council audit committees.
The findings also revealed weak media and civil society scrutiny of local councils, coupled with limited citizen engagement and the lack of public access to financial records of the local councils.
The governance watchdogs conclude that these factors have hindered communities from effectively holding their elected representatives accountable.
The paper recommends local councils to promptly establish audit committees in accordance with the LGA. It also urges councils to present internal audit reports, annual financial statements, and the Auditor-General’s reports at council meetings for review and necessary actions.
Additionally, the paper recommends that the Ministry of Finance tie disbursements of budgetary allocation to local councils with their adherence to the provisions of the Local Government Act, while encouraging media and civil society to step up their watchdog over local councils.