Monrovia, Liberia – The Ministry of Finance and Development Planning (MFDP) has officially responded to the 2024 Audit Report released by the General Auditing Commission (GAC), highlighting major improvements in Liberia’s financial management and governance under the current administration.
In a press statement issued Monday, the MFDP described the findings of the 2024 GAC Audit of the Government of Liberia’s Consolidated Accounts as evidence of “substantial progress” in budget discipline, internal controls, debt transparency, and financial reporting.
Audit Opinion Improves from “Adverse” to “Qualified”
A central focus of the MFDP’s response is the significant shift in the GAC’s audit opinion. The 2023 report issued an “Adverse” opinion, citing material misstatements and unreliable financial data due to pervasive control failures. In contrast, the 2024 audit issued a “Qualified” opinion ~ an improvement the MFDP says reflects meaningful reform.
“This transition shows that most transactions were properly documented, and financial statements were fairly reported in all material respects,” the statement noted.
Key Improvements Highlighted
According to the MFDP, several notable improvements were identified in the 2024 audit compared to 2023, including:
Bank Reconciliation: In 2023, 473 bank accounts and 37 transitory accounts were not reconciled. By 2024, 95% of accounts were reconciled, with only 5% flagged for closure.
Transparency in CBL Sundry Accounts: The 2023 report recorded US$18.97 million under the Central Bank of Liberia’s Sundry Account without supporting schedules. In 2024, these transactions were fully disclosed with reconciled schedules.
Disclosure of Restricted Funds: There was no disclosure of externally restricted cash balances in 2023. However, in 2024, all such balances were fully disclosed in the financial statements.
Addressing Documentation Gaps
The MFDP acknowledged that documentation for US$2.8 million in transactions could not be readily provided during the audit period, attributing this to archiving challenges rather than financial mismanagement.
“All payments were done with proper documentation. However, locating original documents months or years later remains a recurring challenge, especially given space constraints in our physical archives,” the Ministry explained.
To address this, the MFDP is investing in an Electronic Document Management System (EDMS), expected to be operational in the coming months. In the interim, the Ministry has begun manually scanning all transaction documents from the 2025 fiscal year onward.
Clarifying Misconceptions
Contrary to speculation in some quarters, the MFDP emphasized that the GAC audit did not report any missing or misappropriated funds.
“Of the more than US$700 million executed in 2024, documentation was validated for all but US$2.8 million. This is not a case of missing funds but rather a technical issue related to document retrieval,” the statement read.
On Expenditures and Appropriations
Addressing concerns over excess spending, the MFDP noted that expenditures over appropriation do not necessarily imply wrongdoing. Emergency situations, such as by-elections or unforeseen crises, often require urgent funding outside the normal appropriation process.
The Ministry pointed to legal mechanisms such as the contingency reserve fund and interagency budget transfers (below 2%) that allow for flexibility in budget execution without prior legislative approval.
Of the US$2.88 million flagged for exceeding appropriations, only the Bureau of National Concessions exceeded the 20% threshold—by US$373,000—which the MFDP said was used to prevent a brewing crisis. This expenditure, they added, was duly reported to the Legislature.
A New Chapter in Financial Governance
In conclusion, the MFDP welcomed the GAC’s 2024 Audit Report as a “clear validation” of the administration’s commitment to fiscal discipline and transparency.
“This year’s qualified audit opinion, a significant improvement from last year’s adverse opinion, is a testament to our ongoing reforms in public financial management,” the statement read.
The Ministry reiterated its commitment to resolving legacy archiving issues and ensuring full compliance with international financial standards going forward.
