Compliance

MANDATE

The Public Financial Management Compliance Division (PFM-CD) is mandated to ensure effective and efficient compliance with the Public Financial Management laws of Ghana by public institutions that subsist on public funds.

 

MISSION

To enhance and enforce compliance with PFM laws, promote strict budget commitment control, ensure accountability and improve transparency in the management of public funds.

 

VISION

To be a leading Division of excellence championing transparency, accountability, and compliance in Public Financial Management in support of the Ministry’s mandate to ensure prudent management of public funds.

 

FUNCTIONS

  • Issues Commitment Authorisation in line with Section 24A of the Public Procurement (Amendment) Act, 2025 (Act 1139)
  • Monitors the commitment control compliance levels of public institutions
  • Publishes a PFM Compliance League Table to rank public institutions based on the level of compliance with the commitment controls and other PFM compliance measures.
  • Conducts risk-based validation of quarterly commitment control reports submitted by the Internal Audit Units of public institutions to the IAA.
  • Reviews the Annual Statement on the Status of Implementation of Audit Recommendations of public institutions submitted annually to the Minister.
  • Monitors the implementation of recommendations made from the review of the Commitment Control and Compliance Reports.
  • Makes recommendations to the Minister, for sanctions to be administered on non-compliant public institutions.

 

OBJECTIVES

  • Ensure fiscal discipline across all public institutions
  • Prevent accumulation of expenditure arrears through strengthened expenditure controls
  • Enhance transparency, accountability, and budget credibility
  • Enhance compliance by monitoring and reporting on the effective use of commitment control tools.

 

 

REQUIREMENT FOR REQUESTING COMMITMENT AUTHORISATION

  • All requests for commitment authorisation must indicate the source of funding (i.e. GOG, IGF, FLG, Revolving etc.) for each procurement activity, and evidence of availability of adequate funds to cover the procurement.
  • The request should detail the items to be procured, and their estimated costs.
  • The request must indicate the Expenditure Classification (i.e. Goods and Services, Capital Expenditure).
  • For Capital Expenditure, the request must be part of the institution’s Public Investment Plan (PIP).
  • For effective follow-up to the request, contact numbers and email addresses of relevant officers must be provided for all applications for Commitment Authorisation.
  • The applications must be routed through the sector Ministry of the requesting Institution.
  • For application for commitment authorisation to undertake procurement using Internally Generated Funds, public institutions must provide evidence of IGF performance that indicates availability of funds to cover the proposed procurement.
  • For procurements that will be funded through a credit facility or other credit arrangements, the application for commitment authorisation must be accompanied by a “No Objection”, issued by the Minister for Finance in accordance with Section 76(2) of the Public Financial Management Act, 2016 (Act 921)
  • Additionally, all requests for Commitment Authorisation must indicate the total outstanding arears and commitments in the name of the institution prior to the request.