Report of the Auditor -General the Fiscal Outturns for Fiscal Years... · Auditor-General’s...

On the Fiscal Outturns For the Fiscal Years

2008/09 and 2009/10

Winsley S. Nanka, CPA, CFE

Acting Auditor-General, R.L.

Report of the Auditor-General

Auditor-General’s Report on the Fiscal Outturns for the Fiscal Years 2008/9 and 2009/10

2 Promoting accountability, transparency, integrity and fiscal probity

Office of the Auditor-General

Republic of Liberia

13 February 2012

TRANSMITTAL LETTER

AUDITOR-GENERAL’S REPORT ON THE FISCAL OUTTURNS FOR THE FISCAL YEARS

2008/9 AND 2009/10.

1. I am pleased to present my report on the Fiscal Outturns for the fiscal years ended June

30, 2009, and 2010. The report is issued in consonance with the requirements of

Section 37(1, 2) of the Public Financial Management (PFM) Act of 2009, which stipulates

that the Minister of Finance shall prepare the un-audited Final Account of the National

Budget and submit it to the Auditor General for his review and certification not later

than four (4) months after the end of the fiscal year.

2. It worth noting that all the findings conveyed in this report had been formally

communicated to the MoF Management and Desk Officers concerned for their responses

through Audit Observation Memoranda (AOMs) and Management Letter. Where

responses were provided, they were evaluated and incorporated in this report.

3. As indicated in my report, the GOL financial operations for the periods under review

were characterized by financial irregularities. These irregularities which amounted to

US$33,941,455.53 took the form of under-levying of penalty and interest on real

property owners; violation of Government Travel Ordinance (i.e. Executive Ordinance on

Foreign Travel No: 8) and lack of supporting evidence for some expenditures reported

in the fiscal outturns as well as unexplained net variances observed between

expenditures reported in the Fiscal Outturns for 2008/9 and 2009/10, respectively, and

that confirmed by line Mini9stries and Agencies.

4. I noted that internal controls within the Revenue Department of MOF were lax as

exemplified by non-imposition of penalty on all defaulting importers to the tune of

LD151, 400, 000.00, who under-declared their respective CIF’s or goods imported. In

other words, of the 757 defaulting importers involved in under-declaration of their CIF

value as detected and reported on by the BCE Post Clearance Audit Unit the required

penalty was levied only on 146. I considered this matter as very significant risk

impacting on the integrity of revenue assessed and collected by the Bureau of Customs

and Excise, and thus I have instructed the Forensic Department of the GAC to carry out

a thorough investigation into each of the cases of the remaining 611 defaulting

importers.



5. Besides the non-payment of related penalty by defaulting importers, it was also

discovered that defaulting importers did not pay additional taxes of US$1,344,816.71

derived from imported goods under-declared by importers. It was established that

BIVAC, Liberia, was partly responsible for the under-assessments and was consequently

billed for the additional taxes payable by the importers. However, there is no evidence

to show that BIVAC had discharged this obligation.

6. It was also noted during the audit that spending agencies were not disclosing to the

Ministers of Finance and Planning and Economic Affairs, all information related to donor

funding (i.e grants and Aid to Liberia). As a result, inflows reported in the Fiscal

Outturns and the National Budgets for the two periods did not contain any information

on Grants and Aid. The non-incorporation and disclosure of donor inflows in the

respective National Budgets and Fiscal Outturns distorts the total income figure reported

in the Fiscal Outturns for the years under review. I have thus advised appropriately in

this report that the Ministers of Finance and Planning and Economic Affairs should

ensure compliance with all requirements on grants and aid, as provided for under the

extant reguatory framework by incorporating and disclosing all information on grants

and aid in the National Budgets and Consolidated Fund Account.

7. There were significant variances between the Expenditures as confirmed by the

Ministries and Agencies and that conveyed in the Fiscal Outturn Reports for 2008/9 and

2009/10, which the Minister of Finance could not account for. I noted net variances

amounting to US$173,091.83 and US$ 7,905,561.72 for the fiscal years 2008/9 and

2009/10, respectively, when I sought third- party confirmation from 27 selected line

Ministries and Agencies of Government to confirm their Expenditures as reported in the

Fiscal Outturns. To resolve the issue of the non-reconciliation, I have advised that the

Minister of Finance should ensure that reconciliation between the Ministry of Finance

and the line Ministries and Agencies is pursued, as these variances impact negatively on

the fair presentation of the Fiscal Outturn reports for 2008/09 and 2009/10.

8. Similarly, I noted expenditure variances between 2008/9 and 2009/10 Expenditures in

the Fiscal Outturns and those substantiated from the supporting vouchers submitted to

the GAC to the tune of US$37,201,940.44 and US$10,105,524.80 respectively.

9. As indicated in Annex 8, the Minister of Finance own analysis of the variances reported

produced yet another un-explained variances of US$3,091,113.56 and US$3,954,378.31

for FY 2008/09 and 2009/10, of expenditure unsupported, respectively.

10. There were also instances of non adherence to the travel ordinances. I reviewed travel

expenditure made to government officials and employees for foreign travels in order to

obtain the assurance that the requirements of the Executive Ordinances No. 9 on the

application for advance and retirement of travel advances were complied with. I

however noted that some of the officials to whom travel advances totalling

US$453,215.61 were paid, did not retire their advances to show how the monies were

spent.



11. Non-preparation in timely fashion by the Controller and Accountant General of the

Financial Statements of the Consolidated Fund of Liberia, as required by Regulation

I.12, Public Financial Management Regulations was also noted during my audit. The

Minister of Finance compiled and submitted to me Fiscal Outturn Reports for the

respective periods instead of Financial Statements of the Consolidated Fund Account.

12. It worth noting however that after the issuance of the Draft Auditor-General’s Report

on the fiscal outturns for 2008/9 and 2009/10, Minister of Finance submitted Financial

Statements of the Consolidated Fund of Liberia for the fiscal year ended June 30, 2010,

compiled on IPSAS cash basis accounting, to GAC on November 21, 2011. Because the

Statements were presented at the virtual end of the audit (i.e. after I have completed

my audit on the Fiscal Outturns), I thus planned that the audit of the 2010/11 fiscal

year financial statements on the Consolidated Fund will cover as well the 2009/2010

financial statements.

13. It is also important to note that significant steps are being taken by the Minister of

Finance to improve public sector financial management in Liberia. The improvements

noted include the migration from a legacy system to an Integrated Financial

Management System (IFMIS), the introduction of a chart of accounts, the preparation of

financial statements based on cash basis International Financial Reporting Standards

(IPSAS), the development of an internal audit strategy and the establishment of an

Internal Audit Oversight Board which will provide oversight in the implementation of the

internal audit strategy, among others.

14. The issues listed above are quite significant because of their impact on public financial

management. Therefore, I urge Her Excellency, the President of the Republic of Liberia,

the Honourable Speaker of the House of Representatives, the President Pro-Tempore of

the Liberian Senate and Members of the National Legislature to consider their resolution

urgently.


Acting Auditor General, R.L.

Her Excellency, the President of the Republic of Liberia

The Executive Mansion

Monrovia

The Hon. Speaker

The House of Representatives

Capitol Hill, Monrovia

The President Pro-Tempore of the Senate

The House of Senate

Capitol Hill, Monrovia



Table of Contents

ACRONYMS .................................................................................................................................................. 8

EXECUTIVE SUMMARY .............................................................................................................................. 9

Background ................................................................................................................................................. 9

Limitation of Responsibility ..................................................................................................................... 10

Scope Limitation ....................................................................................................................................... 10

SUMMARY OF SIGNIFICANT FINDINGS ............................................................................................... 11

GOVERNANCE MATTERS ......................................................................................................................... 11

Non-Preparation of Financial Statements of the Consolidated Fund and Public Funds for the

Fiscal Years 2008/09 and 2009/10 ........................................................................................................ 11

Internal control operating within ministries and agencies of GOL .................................................... 11

Control Environment ................................................................................................................................ 11

Code of Conduct ....................................................................................................................................... 12

Disaster Recovery Plan or Business Continuity plans ......................................................................... 12

Human Resource Policies ........................................................................................................................ 12

Staff Performance Evaluation ................................................................................................................. 13

Risk Assessment Process......................................................................................................................... 13

Information and Communication ........................................................................................................... 13

Control activities ....................................................................................................................................... 13

Monitoring ................................................................................................................................................. 14

Internal Audit function............................................................................................................................. 14

REVENUES OF THE CONSOLIDATED FUND ......................................................................................... 14

Consolidated Fund, Cash and Bank: Current composition of the Consolidated Fund .................... 14

Non-Distinction among accounts constituting the Consolidated Fund ............................................. 15

Monitoring and control of Consolidated Fund Accounts ..................................................................... 15

Consolidated Fund balance reported as at the close of 2008/9 and 2009/10 fiscal years ........... 15

Effects of application of MOUs entered into by MOF with other parties. ........................................ 16

Duties and Taxes from International Trade ......................................................................................... 16

Fees from Real Property .......................................................................................................................... 17

Revenue from Motor Vehicles................................................................................................................. 18

Maritime Revenue .................................................................................................................................... 19

Grants and Aid .......................................................................................................................................... 20



EXPENDITURES OF THE CONSOLIDATED FUND ................................................................................ 21

Statement of Accountability .................................................................................................................... 22

AUDITOR-GENERAL’S OPINION ON THE 2008/9 AND 2009/10 FISCAL OUTTURNS .................... 22

Basis of Disclaimer Opinion .................................................................................................................... 22

Auditor-General’s Disclaimer Opinion .................................................................................................... 23

DETAILED REPORT .................................................................................................................................. 24

Introduction............................................................................................................................................... 24

MOF Responsibility ................................................................................................................................... 24

Audit Objectives ........................................................................................................................................ 26

Audit Scope and Methodology ................................................................................................................ 27

Limitation of Responsibility ..................................................................................................................... 27

Scope Limitation ....................................................................................................................................... 28

Internal Control Operating in Ministries and Agencies of GOL .......................................................... 32

Control Environment ................................................................................................................................ 33

Disaster Recovery Plan or Business Continuity Plans ......................................................................... 35

Human Resource Policies ........................................................................................................................ 36

Staff Performance Evaluation ................................................................................................................. 37

Risk Assessment Process......................................................................................................................... 38

Information And Communication ........................................................................................................... 38

Control Activities ....................................................................................................................................... 39

Monitoring ................................................................................................................................................. 40

Internal Audit Function ............................................................................................................................ 40

Audit Planning ........................................................................................................................................... 41

REVENUES OF THE CONSOLIDATED FUND ......................................................................................... 42

Consolidated Fund, Cash and Bank: Current composition of the Consolidated Fund .................... 42

Non-Distinction Among Accounts Constituting the Consolidated Fund ............................................ 46

Monitoring and Control of Consolidated Fund Accounts .................................................................... 47

Consolidated Fund Balance as at the Close of 2008/9 and 2009/10 Fiscal Years .......................... 51

Opening and Monitoring of Transitory Accounts ................................................................................. 53

Effects of Application Of MOUs Entered Into by MOF With Other Parties ....................................... 56

Duties and Taxes From International Trade ........................................................................................ 59

Inordinate delays in payment of GOL share of BIVAC Inspection Fees ........................................... 59

Under-Assessment of Imports and Non-Recovery of Related Penalties And Forfeitures .............. 60

Validation of Fiscal Outturns’ Representations on Duties and Taxes on International Trade ...... 64



Fees From Real Property ......................................................................................................................... 65

Non-Maintenance of Databases on Real Properties in Liberia ........................................................... 65

Non-Compliance With Provisions of the Revenue Code in the Assessment Of Real Property by

RETD .......................................................................................................................................................... 68

Penalty and Interest Not Appropriately Charged on Late Payment of Taxes Assessed ................ 71

Inadequate Records Maintained on Personnel Files ........................................................................... 73

Variance Between Tax Collected/Paid and that of the Fiscal Outturn Reports For 2008/9 And

2009/10 ..................................................................................................................................................... 75

Revenue From Motor Vehicles ................................................................................................................ 77

Maintenance of Databases on Taxpayers by Divisions of MOT ......................................................... 77

Time it Took Taxpayers to Register Motor Vehicles and Obtain License Plates ............................. 79

Documentation Underpinning Fees Collected by the MOT Divisions And Reconciliation of the

Fees Collected With MOF and CBL......................................................................................................... 80

Land and Rail Division ............................................................................................................................. 81

Vehicle Dealership .................................................................................................................................... 81

Garages ...................................................................................................................................................... 81

Transport Unions ...................................................................................................................................... 82

Operations Undertaken by the Insurance Division of MOT ............................................................... 83

Representations Contained in the Fiscal Outturns For 2008/9 And 2009/10 For Revenue Derived

From MOT Operations ............................................................................................................................. 85

Maritime Revenue .................................................................................................................................... 86

Small Watercraft Fund ............................................................................................................................. 86

Analysis of Fiscal Outturns, LMA Remittance & Revenue Report, DCRARS Report and CBL

Revenue Bank Statements ...................................................................................................................... 89

Minister of Finance Response ................................................................................................................. 92

Direct, Payroll and Business Profit Taxes ............................................................................................. 92

Penalty for failure to file and failure to pay taxes ............................................................................... 92

EXPENDITURES OF THE CONSOLIDATED FUND ................................................................................ 98

Policies and Procedures ......................................................................................................................... 107

Acknowledgement .................................................................................................................................. 110

Management Responsibility for Financial Statements 110

Basis of Disclaimer Opinion .................................................................................................................. 111

Auditor-General’s Disclaimer Opinion .................................................................................................. 112

Accountability Schedule (Annex 1)………………………………………………………………………………….113



ACRONYMS

ACRONYM MEANING

BCE Bureau of Customs and Excise

BIN Bureau of Immigration and Naturalization

CBL Central Bank of Liberia

CDF County Development Fund

CF Consolidated Fund

CIF Customs, Insurance and Freight

COA Chart of Account

COSO Committee Of Sponsoring Organization

CRFs Clean Report Forms

CSA Civil Services Agency

DCRARS Data Capture Revenue Account and Reconciliation Section

DCO Deputy Commissioner Office

DLD Drivers License Division

ERM Enterprise Risk Management

GAC General Auditing Commission

GOL Government Of Liberia

IFMIS Integrated Financial Management Information System

JFK John Fraise Kennedy Hospital

LBDI Liberia Bank for Development and Investment

LISCR Liberia International Ship and Corporate Registry

LMA Liberia Maritime Authority

LNP Liberia National Police

LRD Land and Rail Division

MGD Ministry of Gender and Development

MOF Ministry of Finance

MOT Ministry of Transport

MOU Memorandum of Understanding

MVD Motor Vehicle Division

PFM Public Financial Management

PPPC Public Procurement and Concessions Commission

RETD Real Estate Tax Division

RP Real Property

SCDC Special County Development Committee

TAS Tax Administration System

UPC Universal Press Corporation



EXECUTIVE SUMMARY

Background

1. I present this report on the Fiscal Outturns of the Republic of Liberia for the fiscal years

2008/9 and 2009/10, as required under Section 37(5,6), PFM Act; this being the third

audit conducted by the GAC on the respective Fiscal Outturns of the Republic of Liberia

in accordance with the provision of Chapter 53.3 of the 1972 Executive Law of Liberia.

The audit was commissioned on February 28, 2011 and completed on July 29, 2011.

2. Section 37(1,2), Public Financial Management (PFM) Act of 2009, mandates the

Minister of Finance to prepare the un-audited Final Account of the National Budget and

submit it to the Auditor General no later than four (4) months after the end of the fiscal

year. Section 37(5,6) of the PFM Act, requires me to review the Final Account of the

National Budget produced by the Minister of Finance and forward an audit report, along

with the Final Account, to the Legislature no later than four (4) months after receipt of

the un-audited Final Account from the Minister.

3. Additionally, Regulation I.12 of the PFM Regulations, 2009, requires the Comptroller-

General, within a period of four months after the end of each fiscal year, or such other

period as the Legislature may by resolution appoint, to prepare the Annual Accounts of

the Consolidated Fund (CF) for the Minister’s transmittal to the Auditor-General.

Furthermore, Regulation I.13 of the PFM Regulations, requires the Comptroller-General

to prepare, within a period of four months or such other period as the Legislature may

by resolution appoint, prepare Annual Accounts of the Public Fund for the Minister’s

transmittal to the Auditor General. The Annual Public Accounts shall not be prepared

only where there are no other funds established outside the Consolidated Fund.

4. The above statutory provisions mean that, commencing 2009/10, the Minister of

Finance is mandated to issue three (3) financial reports to the Auditor-General for

review, certification and submission to the National Legislature for the fiscal year then

ended. These reports are:

i. Un-audited Final Account of the National Budget (Ref. Section 37(1,2),

PFM Act, 2009);

ii. Annual Accounts of the Consolidated Fund (Ref. Regulation I.12, PFM

Regulations, 2009); and

iii. Annual Accounts of the Public Fund (Ref. Regulation I.13, PFM

Regulations, 2009).

5. The MOF compiled the Fiscal Outturns for the fiscal years 2008/9 and 2009/10 and

submitted to me for purposes of my audit, instead of Financial Statements of the

Consolidated Fund and Public Fund for 2008/09 and 2009/10 fiscal years. It was after

the issuance of the Draft Auditor-General’s Report on the fiscal outturns for 2008/9

and 2009/10, Ministry of Finance submitted Financial Statements of the Consolidated



Fund of Liberia for the fiscal year ended June 30, 2010, compiled on IPSAS cash basis

accounting, to GAC on November 21, 2011. Thus, the submission of the Financial

Statements comes some twelve (12) months after the deadline stipulated by the extant

regulatory framework.

6. GAC’s enabling enactment – i.e. Executive Law of 1972. Section 53(7) of the Executive

Law requires me to call the attention of the National Legislature to any officer or

employee who has wilfully or negligently failed to collect or receive monies belonging to

the Government; any public monies not duly accounted for and paid into an authorized

depository; any appropriation that was exceeded or applied to an account; any

deficiency or loss through fraud, default, or mistake of any person; and inadequate or

ineffective internal control of public monies and assets. I am also required to include in

my report, where appropriate, recommendations for executive action or legislation

deemed necessary to improve the receipt, custody, accounting and disbursement of

public monies and other assets.

7. My audit was conducted in accordance with the requirements of the International

Standards on Auditing of Supreme Audit Institutions (ISSAIs). These standards require

me to plan and perform the audit so as to obtain reasonable assurance whether the

Fiscal Outturns are free of material misstatement. The audit thus involved reviews as

would enable me to appropriately report on the attainment of the audit objectives.

8. The outcomes from my review were conveyed through Audit Observation Memoranda

(AOMs) to respective desk officers, their supervising officers and line Ministers, whose

comments to my findings, where provided, were evaluated in arriving at my

conclusions. Thereafter, a Draft Report incorporating all the unresolved findings was

submitted to the Minister of Finance for his response. This report thus, where

appropriate, encompassed responses received from the Minister.

Limitation of Responsibility

9. I reviewed the systems and management controls operated by the Ministries and

Agencies only to the extent I considered necessary for the effective performance of this

audit. As a result, my review may not have detected all weaknesses that existed or all

improvements that could have been made.

Scope Limitation

10. My audit scope was limited by the fact that seven (7) of the Ministries and Agencies did

not provide confirmation of funds received and disbursed during the periods under

review. The effect of these omissions created uncertainties in the substantiation of

representations contained in the Fiscal Outturns for 2008/9 and 2009/10. Particulars of

the Ministries and Agencies that did not confirm total funds received and disbursed are

provided in Annex (2).



SUMMARY OF SIGNIFICANT FINDINGS

11. I present hereunder, summary of significant findings borne out of my review. For

purposes of brevity, this segment of the report catalogues only noted deviations.

Recommendations proffered to address the significant findings are provided in the

detailed report.

GOVERNANCE MATTERS

Non-Preparation of Financial Statements of the Consolidated Fund and Public Funds

for the Fiscal Years 2008/09 and 2009/10

12. Contrary to the requirements of Regulations I.12 and I.13 of the PFM Regulations of

2009, that the Comptroller-General should prepare the Annual Accounts of the

Consolidated Fund and Public Funds for the Minister of Finance’s transmittal to the

Auditor-General within a period of four months after the end of each fiscal year, or such

other period as Legislature may by resolution appoint, for the fiscal years 2008/9 and

2009/10, the MOF did not compile these Annual Accounts. Instead, only the Fiscal

Outturn Reports were compiled for the respective periods.

13. It should be noted that the issue of non-preparation of Annual Accounts of the

Consolidated Fund was conveyed in my report on the 2007/8 Fiscal Outturns submitted

to the Legislature, Executive and the MOF.

14. The Fiscal Outturn Report produced by MOF is deficient in information on the assets,

liabilities and fund balances, and for that matter the report does not portray GOL’s

financial performance, position and cash flows. Thus, stakeholders in Liberia, including

the National Legislature, policy makers, civil society and Liberia’s international partners

as well as the general public would be deprived of crucial information they would

require to assess GOL performance in the area of public financial management.

Internal control operating within ministries and agencies of GOL

15. I reviewed the effectiveness of internal control operating in ministries and agencies of

GOL on the basis of the Committee of Sponsoring Organization of the Treadway

Commission (COSO) framework. The COSO framework is an internal control standard

that sets the benchmark for an effective internal control system. In terms of the

framework, an effective internal control system should consist of five elements which

are, the control environment, risk assessment, information and communication, control

activities and monitoring. Because of the urgency attached to the audit, a limited

number of GOL’s ministries and agency were selected for purposes of the review. The

outcomes from my review of the various elements of internal control on J. F. K.

Hospital, Ministries of Internal Affairs, Public Works and Education are presented below.

Control Environment

16. The COSO internal control framework requires management of any organization to

provide a framework within which the internal control operates. This is set by the tone

of management, its philosophy and operating style, organizational structure, and the



way in which authority is delegated, staff is organized and developed (human resource

policies and procedures) and the commitment of those charged with governance.

17. I did not see evidence that the environment in which the internal controls operated

within Ministries of Internal Affairs, Education and JFK Hospital complied with the

requirements of the COSO framework. This is because these entities were not operating

with an approved organizational structure; had not developed a strategic plan and

operational plan for use in the allocation of resources during the periods under review

and there was no evidence that the entities had developed mission statements

encompassing vision, values and objectives.

18. Lack of approved organizational structure that established a clear line of authority and

responsibility within the institutions denied assurance that the organizations would be

able to assign accountability for the actions of individuals in the entities.

Code of Conduct

19. The COSO framework demands that code of conduct should be established to guide

staff in their conduct or behaviour during the performance of their responsibilities within

each entity. The code must be distributed to all members of staff and on regular basis,

awareness programs should be undertaken to sensitize staff on the code.

20. The Civil Service Agency (CSA) has Standing Orders (i.e. code of conduct) which are

applicable to all ministries of GOL. However, there was no evidence that the Ministers of

Internal Affairs and Education had obtained and distributed the Standing Orders to all

staff in their ministries. There was also no evidence that JFK Hospital’s Management

had developed and distributed a code of conduct to its staff. Staff of entities without

code of conduct may not be aware of acts incompatible with the norms of their

establishments.

Disaster Recovery Plan or Business Continuity plans

21. Management of an entity should draw up a disaster recovery plan to recover

information in the event of loss or mishap. There was no evidence that the Ministers of

Internal Affairs and Education as well as the General Administrator of the JFK Hospital

had disaster recovery plans to help recover transaction data and information and to

ensure business continuity, in the event of mishap.

Human Resource Policies

22. Management of entity must interpret regulations/instructions related to human resource

and establish policies and procedures providing for, among others, regulation of matters

such as orientation, training, promotions, compensation, and experience criteria for

recruiting skilled and competent staff as well as skills retention and monitoring of the

competency of staff. Such policies and procedures must be properly communicated to

all staff.

23. However, I did not see evidence that the Ministers of Internal Affairs and Education and

the General Administrator of the JFK Hospital had interpreted relevant regulations and



included the requirements in its own documented and approved policies and

procedures. These omissions denied assurance that the entities are using policies and

procedures that do address their unique human resource needs.

Staff Performance Evaluation

24. The COSO framework requires management of an entity to evaluate the performance of

each individual staff on a regular basis. There was however, no evidence that the

Ministries of Internal Affairs and Education as well as the JFK Hospital’s Managements

were conducting performance appraisals of their staff on a regular basis. I could

therefore not ascertain the basis of placement of various staff and how grading and

promotion were done within each entity. Non-conduct of performance appraisal of staff

denied assurance that the entities were aware of staff deficiencies and this may impact

negatively on their ability to deliver quality services.

Risk Assessment Process

25. Managements of entities must establish a risk management policy, which sets the basis

for conducting risk assessment within the entities. Risk assessment process entails

identifying and analysing the risk that may impact negatively on the achievement of

each entity’s objectives. However, my review of some selected Ministries and Agencies

did not see evidence that the Ministers of Internal Affairs and Education as well as the

General Administrator of the JFK Hospital had developed a risk management policy and

were conducting risk assessment procedures that enable the entities to identify risk and

formulate mitigating strategies to the risk. Prevalence of the above omission may

impact the entities’ ability to provide quality service.

Information and Communication

26. The COSO framework requires that institutions must produce accurate and timely

information and communicate it to the stakeholders, such as the Legislature, GAC,

international partners, and their clients, on a regular basis, as required under extant

regulatory framework. This requirement was not being complied with by the Ministers of

Internal Affairs and Education as well as the General Administrator, JFK Hospital. Failure

to provide periodic reporting as required under extant regulatory framework would deny

stakeholders of these institutions valuable information needed for informed decision-

making.

Control activities

27. Under the COSO framework, institutions must interpret relevant financial regulations

and develop its own written policies and procedures, to enable it to be effective in the

management of key processes of each entity. The policies and procedures should be

able to guide staff in key processes such as recording, utilization of the entity’s

resources, reporting and monitoring.

28. There was no evidence that the Ministers of Internal Affairs and Education and the

General Administrator, JFK Hospital had interpreted their regulations to develop policies

and procedures (i.e. operational manual) to guide key processes in areas such as



accounting, human resource and other resource utilization operations. This omission

could lead to waste, commissioning of errors and pursuit of ill-advised activities by staff.

Monitoring

29. Management of an entity should establish procedures that ensure regular monitoring of

internal controls and other activities within the entity, in order to identify control

deficiencies within a reasonable time. Internal auditors play an important role in

evaluating the effectiveness of control systems. However, the Ministers of Internal

Affairs and Education as well as the General Administrator, JFK Hospital had not

established procedures to monitor the effectiveness of internal controls on a regular

basis. There was no evidence that the internal audit units of the entities had produced

any reports regarding the effectiveness of internal controls operating in their respective

institutions. Prevalence of the above situation may result in waste, error and/or abuse in

institution’s operations. This is because management may not be aware of the

deficiencies within its operations.

Internal Audit function

30. Internal Auditing Standard 1000 stipulates that the purpose, authority, and

responsibility of the internal audit activity must be formally defined in an internal audit

charter, consistent with the Definition of Internal Auditing, the Code of Ethics, and the

Standards. There was no evidence that the internal audit units in the Ministries of

Internal Affairs, Education and the JFK Hospital were operating under respective

internal audit charter. The above omission denied assurance that these entities’ internal

audit units did know their roles and responsibilities and understand the scopes of their

work.

REVENUES OF THE CONSOLIDATED FUND

Consolidated Fund, Cash and Bank: Current composition of the Consolidated Fund

31. Despite the requirements of Regulations B.2, H.6(1), PFM Regulations, of 2009, and

Section 34(4), PFM Act, that the CF shall comprise specified inflows, Operations

Accounts of ministries and agencies, Transitory Accounts and Accounts of Liberia

Foreign Missions, my review from both the perspectives of the CBL and Comptroller and

Accountant-General indicated that the CF, as currently constituted, comprised five (5)

main accounts, namely Central Revenue Account (USD), Central Revenue Account (LD),

Operation Account (USD), Operation Account (LD) and Payroll Account (LD).

32. No subsidiary accounts for each of the main inflows of the Bureaus of Customs and

Excise and Internal Revenue and other agencies’ collections as well as subsidiary

accounts for the Operations and Payroll Accounts were maintained, to facilitate

monitoring and reconciliation. The CF accounts maintained by Data Capture Revenue

Accounts and Reconciliation Section (DCRARS) of the MOF, and accounts maintained by

the CBL for the CF did not coincide. This is contrary to the dictates of Regulation H.6

(f), PFM Regulations, that the CF accounts maintained by the CBL and the Comptroller

and Accountant-General should follow the same classifications as prescribed in the

government’s Chart of Accounts.



33. For effective determination of CF balance, monitoring and reconciling inflows and

outflows of the Fund, the CF, as currently constituted, is not adequate. The non-

provision of subsidiary accounts for the five main accounts, into which main inflows and

outflows would first hit before being transferred into the five main accounts, would

prohibit effective determination of CF balance, monitoring, reconciliation and control of

the Fund.

Non-Distinction among accounts constituting the Consolidated Fund

34. Funds of the CF are not being managed in a fashion whereby distinction is drawn

between funds that are committed and uncommitted. Uncommitted Accounts are

accounts whose funds are available to support the National Budget, whilst Committed

Accounts are those earmarked for specific purposes. The current approach for

managing the CF could result in earmarked funds being applied for purposes not

intended. Such misapplication could embarrass GOL, when it happens, causing

donors/development partners of Liberia to lose trust in the GOL, thus putting in

jeopardy subsequent inflows from the donors/development partners.

Monitoring and control of Consolidated Fund Accounts

35. I did not sight evidence of monitoring of the CF accounts by both MOF and CBL, to

provide assurance on regularity of dealings on the accounts. I noted that the

reconciliation of collections and lodgements undertaken by DCRARS was ineffective

because of a number of factors. Significant among these factors being the non-

maintenance of definitive listing of subsidiary accounts underpinning the GOL’s General

Revenue Accounts that the daily collections captured by the Section can be compared.

The Section neither undertakes reconciliation on daily basis. Though the monthly report

of DCRARS matches GOL daily collections as captured by the Section against daily

lodgements at CBL, these were no near reconciling. On daily basis, significant variances

between collections and lodgements were recorded and there was no indication that

these variances were reconciled daily. The control period of one month observed, within

which the DCRARS reconciles revenue collections with lodgements into the CF at the

CBL, is inordinately long. Other factors contributing to the ineffective monitoring and

reconciliation of the CF accounts are expatiated on in the detailed report. Ineffective

monitoring and control of subsidiary accounts statutorily constituting the CF could limit

funds considered available on the CF for disbursement on GOL’s programs.

Consolidated Fund balance reported as at the close of 2008/9 and 2009/10 fiscal

years

36. The Fiscal Outturns for 2008/9 and 2009/10 reported respectively uncommitted CF Cash

balances of US$1.6 million and US$10.73 million at the close of the respective fiscal

years. These balances were arrived at on the basis of the five main accounts of the CF,

as currently constituted, as well as the dictates of Regulation B.26 (2), PFM Regulations,

which stipulates that “any unpaid balances on commitments will also lapse at the end of

the year, unless goods and services have already been delivered, in which case,

settlement must be made within 90 days after the end of the fiscal year”. The CF

balances of the two fiscal years under review thus excluded balances of Transitory



Accounts, Accounts of Liberia Foreign Missions and those of operations accounts of

ministries and agencies of GOL.

37. Another factor impacting the determination of the CF Balance was the change in

accounting basis – i.e. from commitment basis in 2007/8 to cash basis in 2008/9 and a

further change in 2009/10 to “Budget Cash Expenditures’’. The change from one

accounting basis to another was not annotated, to give indication of what the CF cash

position would have been but for the changes.

38. As the CF Cash Positions at the close of 2008/9 and 2009/10 fiscal years were based

only on the CF’s five main accounts (i.e. GOL General Revenue Accounts, Operations

Accounts and Payroll account), to the exclusion of other balances of transitory accounts,

accounts of Liberia Foreign Missions and those of operations accounts of Ministries and

Agencies of GOL, the CF Cash Positions reported in the respective Fiscal Outturn

Reports were not valid.

Effects of application of MOUs entered into by MOF with other parties.

39. The MOF entered into three Memorandum Of Understandings (MOUs). The first MOU

was entered into with EcoBank (Liberia) Limited and Ministry of Transport; the second

MOU was entered into with Liberia Bank for Development and Investment (LBDI) and

Ministry of Labour and the third MOU was entered into with LBDI and Bureau of

Immigration and Naturalization (BIN). Under the MOUs, the banks involved pre-financed

specified quantum of Assorted License Plates and value books production under

contracts with Monrovia Development and Management Corporation (MDMC) and

Universal Press Corporation of Liberia (UPC). Thus, for every payment made by the

public for a license number plate or value book (i.e. permits, stickers etc), the GOL,

banks and other parties involved would receive portion of the specified fees paid.

40. I found the provisions in the MOUs so elaborate that they expose GOL collections to

risks. This is because, by the dictates of the MOUs, funds supposedly paid into the CF,

as acknowledged by issuance of Treasury Counterfoil/Flag Receipts, are deducted

before lodgement into the Fund. As what is paid into the CF is not what accrues to the

CF, GOL collections cannot be reconciled with lodgements into the CF, and that is the

position that pertains currently.

Duties and Taxes from International Trade 41. BIVAC, Liberia, failed to subscribe to a provision in its contract with GOL that

government share of pre-shipment fees shall be brought to the account at the end of

the calendar month and paid within 10 working days to the GOL. Fees due GOL and

subjected to delays before transfer were US$297,552.11 and US$702,783.14 for 2008/9

and 2009/10 respectively. The delays observed between the due dates of payment and

actual dates of payment ranged from one (1) to twenty-eight (28) days.

42. Though the Post Clearance Audit Unit of BCE duly reported the under-assessments of

taxes on goods imported into Liberia and consequent additional taxes payable, the

requirements of Section 1608(c), Revenue Code of Liberia (2000,) were not fully met.



This is because Penalty of L$ 200,000.00 required by this Revenue Code provision to be

levied on each defaulting importer was not effected. Of the 757 defaulting importers

noted, the required penalty was levied on 146. Total required penalty amounted to L$

151,400,000.00, but L$ 29,200,000.00 was levied. Also, though the goods which were

the subject matter of the under-assessments are required to be forfeited, this was not

done. No evidence was sighted that consideration was given to the idea of

implementing this requirement. The total CIF value of the goods involved was

US$17,586,705.40. Ref. Annex (3).

43. Because of significant risk impacting the integrity of revenue assessed and collected by

the BCE and the urgency attached to the completion of this report, I have instructed the

Forensic Audit Department of GAC to conduct thorough investigation into each of the

cases of the defaulting importers.

44. Limited documentation was provided by the BCE on its operations within the fiscal years

2008/9 and 2009/10. As a result, I could not substantiate the representation in the

respective Fiscal Outturns that US$88.546 million and US$91.835 million respectively

were derived from Duties and Taxes from International Trade during the fiscal years.

Fees from Real Property

45. Section 2003, Revenue Code of Liberia, 2000, requires that, at the minimum, the Real

Property Assessment Record Books (i.e. databases on Real Property) should be

maintained on all Real Property (RP) in Liberia. The Real Property Assessment Record

Books, according to the provision, should provide for location, area, lot number

designation, any use classification, date of inspection of Real Property for the purpose

of determining its market value, its assessed value and annual tax assessed thereon.

The Real Estate Tax Division, MOF, was yet to maintain these databases. The non-

maintenance of the databases made it impossible to determine the extent to which all

RPs subject to tax were levied in the fiscal years 2008/9 and 2009/10. This omission

denied assurance that all RPs in Liberia that qualified to be assessed for tax were

assessed in the periods under review.

46. Bills issued by the RETD in the fiscal years 2008/9 and 2009/10 did not contain such

documentation as required for effective assessment of the properties involved. Also, the

RETD did not comply with Sections 2001(b) and 2004 of the Revenue Code of Liberia

2000, in that there were no indications that RPs were assessed and their assessed

values informed tax assessments made on the related RPs. The five-year term provision

which demands that RPs, once assessed for value, those values should be kept on the

Real Property Assessment Record Books and informed assessments made on the related

RPs, was neither evident. The requirement that after the expiration of the five-year

term, there should be re-assessment of RPs values for purposes of taxation was neither

adhered to. Owners of RPs did not file prescribed schedule providing all relevant details

of their properties after acquisition, as stipulated. These omissions denied assurance

that assessments made on RPs were as required under extant regulations.



47. Sections 11 and 2002 of the Revenue Code of Liberia (2000) stipulate that penalty and

interest shall be assessed and added to the tax due or to any underpayment thereof if

such tax is not paid from January 1 to July 31 of the year in which it is levied. However,

I noted that penalty and interest charged for late payments in the fiscal years under

review were not in keeping with this requirement. In some instances, penalty and

interest were calculated below or above the required rate. As a result, for 2008/9 fiscal

year, total penalty and interest charged by the RETD was US$18,820.00 as opposed to

US$86,012.00, required under the above quoted provisions. GOL thus forfeited

US$67,192.00.

48. The RETD is charged with responsibility to assess and collect taxes on RPs across the

fifteen counties of Liberia. Personnel files of 18 personnel assigned to the RETD as well

as the Division’s work plans and extent of attainment of these plans for the periods

under review, were not provided to me so as to permit the determination of the

effectiveness of the RETD. The absence of those documentation denied assurance that

its personnel possessed the requisite competencies for the Division’s functions.

49. Limited documentation was provided by the RETD on its operations within the fiscal

years 2008/9 and 2009/10. As a result, I could not substantiate the representations in

the respective Fiscal Outturns that US$2,940,000.00 respectively was derived from Fees

on RPs during the two fiscal years under review.

Revenue from Motor Vehicles

50. MOT is mandated under Section 37.3, Chapter 37 of the 1987 Act of the Legislature to

collect fees, on Motor Vehicle registration and re-registration, for issuance, and renewal,

of Drivers’ License, for registration of used or new vehicles, garages, auto parts dealers

and transport unions registration. For effective administration of the fees levying, it is

ordinarily expected that the Divisions of the MOT charged with the administration of

these fees, would maintain respective databases on their taxpayers. Of the four

Divisions of MOT, Motor Vehicle Division (MVD) and Drivers’ License Division (DLD)

maintained a limited database on their taxpayers. The other two Divisions, Land and

Rail (LRD) and Insurance Divisions, did not have database on its taxpayers. There was

no evidence that collection of fees by the MVD and DLD was informed by their existing

databases.

51. My review of 38 applications for license number plates selected at random indicated

that it took between one (1) and eight (8) months for vehicle owners to obtain their

license number plates after registration, and on the average, a duration of 3.91 months

for each one of the 38 vehicles involved to obtain the license plates. Contrary to this

observation, the MVD Director indicated that it took on the average three to four (3-4)

days to obtain the number plate, after an application for registration. Delays in

submission of license plates to motor vehicles owners meant that those registered

motor vehicles would be on the roads in Liberia without license number plates. Such a

situation constitutes a serious risk to public security and safety.



52. The Divisions of the MOT, namely MVD, DLD, Land and Rail and Insurance Divisions,

did not provide me the documentation underpinning the fees the Divisions collected

during the fiscal years 2008/9 and 2009/10. The non-submission of the documentation

denied assurance that fees charged taxpayers during the periods under review were

those required, as stipulated in the extant regulatory framework. The implication is that

GOL might not have derived the required fees for the fiscal years under review.

53. The Commissioner of Insurance (i.e. the Head of the Insurance Division/Bureau, MOT)

is required to enforce the registration of insurance firms operating in Liberia. Under the

Administrative Regulation PG/ NO. 002/82997 Section 4.1, the Insurance Bureau is also

required to ensure that all motor vehicles, bikes and other specified categories of assets

are covered, at the minimum, by third-party insurance. My review did not indicate that

the Commissioner of Insurance was enforcing the provisions of the Division’s regulatory

framework. The Division neither maintained documentation on its activities.

54. The non-enforcement of the provisions of the Revised Insurance Act of 1973, Section

5.5 (E), constitutes a significant violation, as by these omissions, the Commissioner of

Insurance is not informed on the regularity of insurance firms’ operations in Liberia, the

extent of compliance with the requirement that all insurance firms must renew their

operating license annually and whether fees authorized to be paid by MOF were duly

accounted for in the periods under review. Another significant risk occasioned by the

omissions of the Insurance Division is that motor vehicles, bikes and other categories of

assets required to be insured are currently left uncovered with insurance. The

implication is that currently, those assets are exposed to risks such as accidents and

other unpredictable events without the prospects of retrieving them after the events.

55. Limited documentation was provided by the MOT Divisions on their operations within

the fiscal years 2008/9 and 2009/10. As a result, I could not substantiate the

representation in the respective Fiscal Outturns that US$2,151,148.01 and

US$2,614,025.76 respectively were derived from Motor Vehicles during the fiscal years

under review.

Maritime Revenue

56. The Liberia Maritime Authority (LMA) did not undertake periodic reconciliation of its

revenues remitted to the GOL Revenue Accounts from its operations, contrary to the

dictates of Regulation 8, MOF Administrative Regulation No. PFMA-01/MOF/R/02 2010,

Regulation O.28 (1), PFM Regulations, as well as Regulation O.1.(1,2), PFM Regulations.

These categories of revenue are the tonnage taxes, cooperate fees, surplus from the

Deputy Commissioner Office’s operation (DCO’s) and the small watercraft fund. The

LMA justified its stand on the non-reconciliation on the grounds that it is the Ministry of

Finance responsibility to reconcile account(s) for all monies paid into the Consolidated

Fund. Non-reconciliation of remittances notified to the LMA from DCO and LISCR

operations with lodgements effected into the GOL Revenue Accounts denies assurance

that all earnings from LMA’s operations were accounted for.



57. For the fiscal year 2009/10, my review indicated that Maritime Revenue of

US$16,299,000.00 reported in the respective Fiscal Outturn did not tally with

Remittances by the LMA, US$10,816,134.00, Maritime Revenue Report,

US$16,044,030.00, DCRARS report, US$16,298,653.00 and lodgements into the GOL

General Revenue Account, US$15,480,731.00. In other words, there were

inconsistencies noted with reports generated from different sources on the Maritime

Revenue. The outcome of my review thus portrayed the 2009/10 Fiscal Outturn Report

as unreliable.

Registration and Assessment of Small, Medium and Large Taxpayers, Payment and

Filing of Turnover Tax Returns, Tax Evasion and Delinquent Taxes

58. Review of 530 taxpayers’ files out of 609 indicated that the BIR failed in many instances

to associate penalties and fines imposed on specific tax kinds and state the taxable

amounts on the basis of which taxes were determined. I observed that about 25

percent of taxpayers, especially those in both small and medium tax categories, whose

files were made available for review, paid taxes far beyond due dates, ranging from one

week to two years. Account statements or revenue detailed reports of tax returns filed

by taxpayers, which listed tax kinds, did not include declaration and period of default

(period between due date and actual date of payment).

59. Also, I noted that taxpayers made declarations of turnover, which did not show

consistent trends over time. These declarations, in my view, smacked of untruthfulness.

Despite these declarations, I did not see evidence that any of the review mechanisms

within the BIR followed up on such taxpayers to ascertain the truthfulness of their

declarations.

60. Additionally, I observed that enforcement provisions were not swiftly applied to

delinquent taxpayers, many of whom are in Monrovia and its environs. For example, in

both fiscal periods, 2008/9 & 2009/10, I noted that 25 taxpayers were delinquent, while

15 were only delinquent in 2008/9 and 36 in 2009/10. BIR did not provide evidence, in

terms of documentation, of prompt enforcement measures against these entities. These

omissions could lead to loss of tax revenue to GOL.

Grants and Aid

61. Spending agencies were not disclosing to the Ministers of Finance and Planning and

Economic Affairs all information related to donor funding not channelled through the

National Budget. Also, I did not sight evidence that the two Ministers had put in place a

mechanism to ensure that all information on grants and aid are gathered, inventoried,

analyzed and reported on. The requirement under the extant regulatory framework for

the Minister of Finance to “maintain a full database of aid flows and produce reports on

statistical records of aid flows data, including progressively bringing off-budget aid flows

onto the budget” neither appeared to have been implemented. I further noted that

neither the Minister of Finance nor the Minister of Planning and Economic Affairs were

in possession of all information on all grants and aid inflows to Liberia, as none of the

Ministers provided same.



62. The Fiscal Outturns for 2008/9 and 2009/10 reported grants of US$23,512,814.00 and

US$13,009,000.00 respectively. I observed that the inflows reported in the Fiscal

Outturns were direct budgetary support. However, the National Budgets and Fiscal

Outturns for the two periods did not contain any information on grants and aid that

were not channelled through the Consolidated Fund.

EXPENDITURES OF THE CONSOLIDATED FUND

Variances noted between Expenditures of Government Ministries and Agencies and

that of the Fiscal Outturn Reports for 2008/9 and 2009/10

63. Variances were observed between the Expenditures confirmed by the Ministries and

Agencies as incurred and that conveyed in the Fiscal Outturn Reports for 2008/9 and

2009/10. The variances amounted to US$173,091.83 and US$ 7,905,561.72 for the

respective fiscal years. In addition, there were variances amounting to

US$15,230,876.86 and US$29,135,289.21 for the respective fiscal years on grants and

aid, as reported by the Ministries and Agencies. Details of the variances noted are

expatiated in Annex 6A & B.

64. I also noted that the representations in the Fiscal Outturn Reports for 2008/9 and

2009/10 were not presented showing the details of Expenditures on a line by line item.

Ordinarily, it is required that the representations reported in the Fiscal Outturn Report

should be as detailed as the National Budget, to facilitate analysis. These omissions

denied assurance that financial records underpinning the Consolidated Fund for the two

fiscal years under review were complete and thus, impacted the truth and fairness of

the Fiscal Outturn Reports for 2008/9 and 2009/10.

Un-Supported Expenditures

65. My examination of payment vouchers (PVs) and related supporting documents provided

by the Minister of Finance in relation to Expenditures reported in the fiscal outturns for

2008/2009 and 2009/2010 revealed that Expenditures totalling US$37,201,940.44 and

US$ 10,105,524.80 were not supported by PVs and corresponding supporting

documentation. Details of the variances noted are expatiated on in Annex 5B.

66. Minister of Finance own analysis of the variances reported produced yet another un-

explained variances of US$3,091,113.56 and US$3,954,378.31 for FY 2008/09 and

2009/10, of expenditure unsupported respectively . Ref. Annex 8. On account of the far

reaching nature of the matters raised by MOF on the un-supported expenditures, I have

therefore instructed the GAC Forensic Audit Department to investigate and analyze all

disbursement vouchers, which are the subject of contention by MOF, and all related

matters giving rise to the variances observed.

Failure to account for Foreign Travel Advances paid to Officials of the Ministry of

State (MOS), Ministry of Foreign Affairs (MOFA) and the Ministry of Finance (MOF)

67. Some officials and staff of the Ministry of State & Presidential Affairs, as listed in Annex

(4), failed to submit travel disbursement/settlement form and related travel documents

to retire travel advances totalling US$90,880.00.



68. Similarly, also some officials and staff of the Ministries of Finance and Foreign Affairs,

listed in Annexes (4A & 4B) did not submit travel disbursement/settlement form and

related travel documents to account for advances totalling US$208,671.11 and

US$153,664.50 respectively received for their trips. These omissions implied that upon

returning to base, the officials and staff did not account for and report on the foreign

travels and no controls were exercised by the Foreign Travel Section of the Ministry of

Finance, to ensure that the retirement of travel advances were undertaken. Non-

retirement of travel advances could result in non-accountability for travel advances

granted to officials of GOL, thus posing a drain on GOL resources.

Failure to maintain bid documentation and Budget Performance Report

69. Bid documentation supporting Payment Vouchers for works paid by Ministry of Public

Works in 2008/9 and 2009/10 and amounting to US$13,588,598.47 and

US$11,907,460.40 respectively were observed to be absent. Ref. Annex (5A).

Progress reports were neither attached to the Payment Vouchers. I could not therefore

ascertain the validity of the Expenditures incurred by the Ministry of Public Works on

those works.

Status of implementation of prior audit recommendations

70. Recommendations conveyed in my previous report on the 2007/8 Fiscal Outturn were

yet to be implemented. Details of these recommendations are provided in the detailed

report.

Statement of Accountability

71. Financial irregularities amounting to US$33,941,455.53 were noted in the two fiscal

years under review. These irregularities involved under-asessment, and non-payment of

penalty on Real Property, unexplained variances between expenditures reported in the

2008/9 and 2009/10 Fiscal Outturns and that confirmed by line ministries and agencies

as well as failure to retire travel advances by some Government officials and other

employees. Ref. Annex 1.

AUDITOR-GENERAL’S OPINION ON THE 2008/9 AND 2009/10 FISCAL OUTTURNS

Basis of Disclaimer Opinion

72. The following considerations underpinned my opinion on the 2008/9 and 2009/10 Fiscal

Outturn Reports:

i. Variances were noted between the Expenditures confirmed by the Ministries and

Agencies as incurred and respective Expenditures conveyed in the Fiscal Outturn

Reports for 2008/9 and 2009/10. The variances amounted to US$ 173,091.83

and US$7,905,561.72 for the fiscal years 2008/9 and 2009/10 respectively. In

addition, there were variances amounting to US$15,230,876.86 and

US$29,135,289.21 for the respective fiscal years on grants and aid, as reported

by the Ministries and Agencies on one hand, and the Fiscal Outturn reports, on

the other. The variances observed denied assurance that the Fiscal Outurns

Reports for 2008/9 and 2009/10 were reliable.



ii. Seven (7) Mnistries and Agencies of GoL, as listed in Annex 2, failed to respond

to my confirmation request to provide information on the Revenues and

Expenditures received and disbursed by them within the fiscal years 2008/9 and

2009/10. As a result of the insufficient evidence had, I was thus not able to

validate representations made in the Fiscal Outturn Reports on Revenue from

Real Property, Duties and Taxes from International Trade, Revenue from Motor

Vehicles, Sales and related Taxes, Direct, Payroll, Bisiness Profit Taxes and

Stumpage and related Taxes as well as the Expenditures of the Minisitries and

Agencies.

iii. 2008/9 and 2009/10 Fiscal Outturn Reports’ representations on Consolidated

Fund Closing Balance as of June 30, 2009 and 2010 were not valid because

other accounts such as Transitory Accounts, Balances on Operations of Ministries

and Agencies and Liberia Foreign Missions Accounts, constituting part of the

Consolidated Fund, were excluded. Additionally, the accounting basis for

recognition of Expenditures was changed from commitment basis in 2007/8 to

cash basis in 2008/9. This basis was changed again in 2009/10 to “Budget cash

Expenditures”. The change from one accounting basis to another was not

annotated, to give indication of what the CF cash position would have been but

for the changes. As the CF cash position is an integral component of the Fiscal

Outturns Reports, it rendered the Reports not reliable.

iv. Financial irregularities amounting to US$33,941,455.53 were noted in the two

fiscal years under review. These irregularities involved under-asessment, and

non-payment of penalty on Real Property, unexplained variances between

expenditures reported in the 2008/9 and 2009/10 Fiscal Outturns and that

confirmed by line ministries and agencies as well as failure to retire travel

advances by some Government officials and other employees. The irregularities

rendered the respective Outturns in the 2008/9 and 2009/10 Fiscal Outturn

Reports not fairly stated in all material respects. Ref. Annex 1.

Auditor-General’s Disclaimer Opinion

73. In my opinion, because of the significant uncertainties inherent in the matters listed in

the basis for disclaimer of opinion above, I am unable to express an opinion as to

whether the Fiscal Outturns for 2008/9 and 2009/10, submitted by the Minister of

Finance and set out in Annexes 7A & 7B, present fairly in all material respects the

outturns achieved in the respective fiscal years and are in compliance with extant

Financial Management Regulatory Framework of Liberia.



DETAILED REPORT

Introduction

74. I have undertaken the audit of the Fiscal Outturn Reports of the Republic of Liberia for

the fiscal years 2008/9 and 2009/10; this being the third audit commissioned on the

respective Fiscal Outturns of the Republic of Liberia in accordance with the provision of

Chapter 53.3 of the 1972 Executive Law of Liberia. The audit was commissioned on

February 28, 2011 and completed on July 29, 2011.

MOF Responsibility

75. Under Section 37(1,2) of the Public Financial Management (PFM) Act of 2009, it is

stipulated that “the Minister shall prepare the un-audited Final Account of the National

Budget and submit it to the Auditor General no later than four (4) months after the end

of the fiscal year. The un-audited Final Account of the National Budget shall be in

accordance with the content and classifications of the budget. The content, format,

timeframe and procedures for the preparation and submission of the Final Account of

the National Budget shall be determined by accounting regulations under this Act”.

76. Section 37(5,6) of the PFM Act, requires me to review the Final Account of the National

Budget produced by the Minister of Finance and forward an audit report, along with the

Final Account, to the Legislature no later than four (4) months after receipt of the un-

audited Final Account from the Minister. My audit report shall include response and

clarifications furnished by the Minister on the observations and comments raised by me

on the un-audited Account. I am required to publish my report on the Final Account of

the National Budget (i.e. Fiscal Outturn Report) in the Official Gazette and submit it to

the Legislature and public within one month of the completion of the said audit report.

77. Additionally, Regulation I.12 of the PFM Regulations, states that “the Comptroller-

General shall within a period of four months after the end of each fiscal year, or such

other period as Legislature may by resolution appoint, prepare the Annual Accounts of

the Consolidated Fund (CF) for the Minister’s transmittal to the Auditor-General. The

Annual Accounts of the CF shall comprise:

i. A balance sheet showing the assets and liabilities of the CF at the close of the

financial year, annotated with such qualifying information as may affect the

significance of figures shown in the statement;

ii. A summary statement of the receipts into and payments from the CF in

comparison with the budget summary for the financial year;

iii. A statement of the revenue and expenditures for the financial year in

comparison with the approved and revised estimates for the year;

iv. A statement of transactions during the year and an analysis of the position at

the end of the year for:

• The public debt;



• Deposits and other trust moneys;

• The securities of government;

• Advances out of public funds;

• Public loans;

• Equity investments of the Public Fund;

• A cash flow statement of the Public Fund for the year.

78. The above requirement to compile Annual Accounts of the Consolidated Fund is in

consonance with the dictates of Section 36(3) of the PFM Act. This provision stipulates

that “notwithstanding the provisions of Section 35.2 above, spending entities shall

further submit to the Minister on a quarterly basis, the accounts of the spending agency

comprising a statement on cash flow a statement on revenue and expenditures from

the Consolidated Fund a balance sheet showing assets and liabilities as at the end of

the quarter; and such other details as may be prescribed in regulations to be issued

under this Act”.

79. Furthermore, Regulation I.13 of the PFM Regulations, states that “the Comptroller-

General shall subject to sub-regulation (2) below, within a period of four months or

such other period as Legislature may by resolution appoint, prepare Annual Accounts of

the Public Fund for the Minister’s transmittal to the Auditor General, which shall

comprise:

i. A balance sheet showing the assets and liabilities of the Public Fund at the close

of the financial year, annotated with such qualifying information as may affect

the significance of figures shown in the statement;

ii. A summary statement of the receipts into and payments from the Public Fund in


iii. A statement of the revenue and Expenditures for the financial year in






• the securities of government;


• Public loans;


• A cash flow statement of the Public Fund for the year; and such other

statements as may be required by any enactment.



i. The annual public accounts shall not be prepared only where there are no other

funds established outside the Consolidated Fund as per Regulation I.13 (2) of

the PFM Regulations.

ii. The above statutory provisions mean that, commencing 2009/10, the Minister of

Finance is mandated to issue three (3) financial reports to the Auditor-General

for review, certification and submission to the Liberia Legislature in a fiscal year.

These reports are:

iii. Unaudited Final Account of the National Budget (Ref. Section 37(1,2), PFM Act,

2009);

iv. Annual Accounts of the Consolidated Fund (Ref. Regulation I.12, PFM

Regulations, 2009); and

v. Annual Accounts of the Public Fund (Ref. Regulation I.13, PFM Regulations,

2009).

vi. The Ministry of Finance, for the fiscal years 2008/9 and 2009/10, only compiled

the respective Fiscal Outturns Reports, instead of Financial Statements of the

Consolidated Fund and Public Fund. It may be noted however that it was after

the issuance of the Draft Auditor-General’s Report on the fiscal outturns for

2008/9 and 2009/10, the Minister of Finance submitted Financial Statements of

the Consolidated Fund of Liberia for the fiscal year ended June 30, 2010,

compiled on IPSAS cash basis accounting, to GAC on November 21, 2011. Thus,

the submission of the Financial Statements comes some twelve (12) months

after the deadline stipulated by the extant regulatory framework.

Audit Objectives

80. The objectives of the audit are as stipulated in the GAC’s enabling enactment – i.e.

Executive Law of 1972. Section 53(7) of the Executive Law requires me to call the

attention of the National Legislature to the following matters, if relevant to any audit

undertaken:

i. Any officer or employee who has wilfully or negligently failed to collect or receive

monies belonging to the Government;

ii. Any public monies not duly accounted for and paid into an authorized

depository;

iii. Any appropriation that was exceeded or applied to an account;

iv. Any deficiency or loss through the fraud, default, or mistake of any person; and

v. Inadequate or ineffective internal control of public monies and assets.



81. My mandate further stipulates that where appropriate, my report shall also include

recommendations for executive action or legislation deemed necessary to improve the

receipt, custody, accounting and disbursement of public monies and other assets.

Audit Scope and Methodology

82. The audit covered all transactions/events undertaken by ministries and agencies in the

fiscal years 2008/9 and 2009/10 and funded from the Consolidated Fund. The review of

these transactions/events was effected taking into consideration, relevant provisions of

extant regulatory framework on public financial management in Liberia including, the

Public Finance Management Act (PFM) and Regulations, 2009, Public Procurement and

1Concessions Commission (PPCC) Act, 2005, Revenue Code of Liberia, 2000, and Extant

Travel Regulations.

83. The audit involved the review of, and accounting for, ministries and agencies

transactions/events, periodic reporting of these transactions/events to Ministry of

Finance by the Ministries and Agencies and the consolidation of these into the Fiscal

Outturn Report by the Minister. Status of implementation of recommendations conveyed

in my report on the Fiscal Outturn for 2007/8 was also reviewed.

84. To satisfy the above audit objectives, the control environment within which the

transactions/events were effected was assessed. Inherent risks associated with

significant transactions and events were also assessed with the aim of determining the

adequacy of management responses to these risks. On the basis of the outcome of

these reviews, I evolved and executed audit procedures, which in my view, were

necessary to minimize audit risks.

85. The outcomes from the above reviews were conveyed through Audit Observation

Memoranda to respective desk officers and their supervising officers, whose comments

to my findings were evaluated in arriving at my conclusions. Thereafter, a Draft Report

incorporating all the unresolved findings was submitted to Minister of Finance for his

response. This report thus, where appropriate, encompassed responses received from

the Minister on.

Limitation of Responsibility

86. I reviewed the systems and management controls operated by ministries and agencies

only to the extent I considered necessary for the effective performance of this audit. As

a result, my review may not have detected all weaknesses that existed and my

recommendations may not include all improvements that could be made.

87. Moreover, the responsibility to ensure effective systems and controls for operational

efficiency and for the prevention and detection of fraud, compliance with Government of

Liberia extant laws and regulations, and to ensure that all information is made available

for the audit rests with ministries’ and agencies’ Managements.

88. My responsibility is to report thereon. That is, to provide assurance that all

transactions/events of the ministries and agencies had been carried out in accordance



with extant laws, regulations, laid down policies and procedures for the purposes

intended and were properly accounted for.

89. I have endeavoured to hold public officers accountable for the periods under audit in

accordance with Section 53.7(a) of the 1972 Executive Law. However, where I omitted

to do, it is expected that the Minister of Finance should do so, as provided for under

Regulation C.2(16), PFM Regulations, 2009 which states that the Minister of Finance

shall ensure on a regular basis, that public officers delegated to utilize the national

budget, respect their responsibilities and are accountable for their actions and inactions.

Scope Limitation

90. My scope of audit testing was restricted by the failure of seven (7) of the Ministries and

Agencies to provide confirmation of funds received and disbursed during the periods

under review. The effect of these omissions created uncertainties in substantiation of

representations contained in the Fiscal Outturns for 2008/9 and 2009/10. These

Ministries and Agencies are listed in Annex (1).

DETAILS OF FINDINGS AND RECOMMENDATIONS

GOVERNANCE MATTERS

Non-Preparation of Financial Statements of the Consolidated Fund and Public Funds

for Fiscal Years 2008/9 and 2009/10

Observation

91. As referenced earlier in this report, Regulation I.12, PFM Regulations of 2009, stipulates

“the Comptroller-General shall within a period of four months after the end of each

fiscal year, or such other period as Legislature may by resolution appoint, prepare the

Annual Accounts of the Consolidated Fund for the Minister’s transmittal to the Auditor-

General. The Annual Accounts of the CF shall comprise:

i. A balance sheet showing the assets and liabilities of the CF at the close of the

financial year, annotated with such qualifying information as may affect the

significance of figures shown in the statement;

ii. A summary statement of the receipts into and payments from the CF in


iii. A statement of the revenue and Expenditures for the financial year in








• The securities of government;


• Public loans;


• A cash flow statement of the Public Fund for the year.

92. It is instructive to note that the dictates of Section 2205, Revenue Code of Liberia,

2000, predates the promulgation of the PFM Act and Regulations. This provision

requires the Minister of Finance “to maintain a centralized accounting system for the

Government, keeping the General books of account on a double entry accrual basis

accounting system and maintaining such accounting records as will reflect, in detail or

in summary, all Government resources, properties, assets, liabilities, supplies, reserves,

surpluses, revenues and receipts, securities, funds, appropriations, allotment and

encumbrances, Expenditures and disbursement”.

93. Contrary to the above requirements, for the fiscal years 2008/9 and 2009/10, Minister

of Finance did not compile the above stipulated financial statements of the Consolidated

Fund. Instead, only the Fiscal Outturn Reports were compiled for the respective periods.

94. It is again instructive to note that the issue of non-preparation of financial statements

for the Consolidated Fund was conveyed in the report on the 2007/8 Fiscal Outturns

submitted to the Legislature, Executive and Minister of Finance, and despite assurances

received from the MoF authorities that it would comply in subsequent periods, the

Ministry is yet to comply. The Comptroller and Accountant-General have however

assured me that the required financial statements on the Consolidated Fund would be

published for public consumption, commencing from the financial year 2011/12.

95. It worth noting however that after the issuance of the Draft Auditor-General’s Report

on the fiscal outturns for 2008/9 and 2009/10, Minister of Finance submitted Financial

Statements of the Consolidated Fund of Liberia for the fiscal year ended June 30, 2010,

compiled on IPSAS cash basis accounting, to GAC on November 21, 2011. Thus, the

submission of the Financial Statements comes some twelve (12) months after the

deadline stipulated by the extant regulatory framework.

96. Additionally, under Regulation I.13., PFM Regulations, the Comptroller-General is also

required within a period of four months or such other period as Legislature may by

resolution appoint, to prepare Annual Accounts of the Public Funds for the Minister’s

transmittal to the Auditor General, for his review and issuance of report thereon.

Regulation B.1., PFM Regulations, defines the Public Funds of Liberia as consisting of

the Consolidated Fund and such other funds as may be established by or under an Act

of Legislature. Again, the Comptroller and Accountant-General is yet to comply with this

requirement.



Risk

97. In my view, the Fiscal Outturn Report produced by Minister of Finance is deficient of

information on assets, liabilities and fund balances, and for that matter the report does

not portray GOL financial performance and the financial position of the country as well

as cash flows. Thus, stakeholders in Liberia and Liberia’s international partners would be

deprived of crucial information they would require to assess GOL performance in the

area of public financial management. Of critical importance is the assurance Liberia’s

international partners require to assure their taxpayers that loans, grants and aid

granted to Liberia are duly accounted for, an assurance that is only forthcoming in

situation where the financial statements of the Consolidated Fund and Public Funds are

published and duly reported on by the Auditor-General.

Recommendation

98. The Minister of Finance should ensure that the Comptroller and Accountant-General

outfit within the Ministry is equipped as to enable him/her to comply with the

requirements of Regulations I.12 and I.13 of the PFM Regulations – i.e. to compile

timely the financial statements of the Consolidated Fund and Public Funds, with relevant

disclosures as statutorily stipulated.

Minister of Finance Response

99. On the issue of non-production of financial statements of the Consolidated Fund, the

MOF contended that the annual accounts of the consolidated fund have been prepared

and submitted. We must however make the following observations.

100. The public financial management act was passed well after the end of the fiscal

period 2008/2009 and is therefore not applicable to that period. The law is not

retroactive. The fiscal outturns therefore surf ices for this period. After the passage of

the Act in September of 2009, The Regulations were adopted in February of 2010 and a

series of workshops were carried out for all Ministries and Agencies including the GAC.

The Regulations became substantively effective in April 2010. This is significant given

the fact that required training and capacity development needed to ensure the smooth

functioning of the regulations became only effective in the last quarter of fiscal 2009/2010.

101. We can therefore note the challenges in getting ministries and agencies to comply to

ensure the first attempt to implement financial reporting under an accountability regime

that they are still striving to understand including the GAC. Given the immense

challenges, the Ministry of Finance submitted to you the Fiscal Outturns which represent

Final Budget for those two fiscal years. In addition, we are also pleased to submit the

Financial Statements for Fiscal 2009 /2010 consistent with IPSAS reporting

requirements.

102. In summary, on this issue, please note that the GSFM 2001 COFOG Compliant Chart of

Accounts (Classification of Functions of Government) was only adopted by Government in

October 2010. A Trial balance forms the basis for notes to the financial statements.

Although this precedes the fiscal year, alignments have been done to reflect the proper

comparability thresholds as required by IPSAS. The Report is herein attached.



103. The MOF additionally indicated that over the period indicated, the MOF was concerned

mainly with the building of a robust Public Financial Management Structure. This was

necessary in order to underpin the need to have these financial statements created on

the basis of Standards, laws and proper administrative regulations. The MOF therefore

set itself to ensure that the basics were done right.

104. The basis and the framework for the preparation of the Annual Accounts were not in

place to facilitate its preparation in the form and manner that would make it

representational faithful in all significant respects. For the Annual Accounts to be

prepared, Ministries and Agencies must submit IPSAS Compliant Financial Statements

to the Office of the Comptroller General within the time frame stipulated by Law and

Regulations. Ministries and Agencies never got anywhere near achieving this feat until

2011. These statements must be based on a proper chart of accounts (which was non-

existent for the periods 2008/09 & 2009/10) and must be categorized into funding from

government and funding from donors in addition to funds internally generated. To

date, the first major attempt at consolidation for Fiscal year 2009/2010 is still work in

progress due to variances. The introduction of the IFMIS System is helping to address

this problem down the road. This now makes it possible to generate reports across

spending entities.

105. In an attempt to report on the public funds (consolidated funds and donor funds), the GoL

has endorsed a proposal to integrate the PFMU, that manages donor-funded projects,

into the Accounting Services Unit of the Comptroller and Accountant General Office.

This measure would ensure that all information on funding from GoL and donors are

readily available for reporting.

106. As regards earlier assurances given by the MOF to produce the CF financial statements,

the MOF further contended that Fiscal outturns for Fiscal Year 2010/2011 are

underpinned by IPSAS Financial Statements. The effective timeline for determining

compliance is when the required accounting standards were adopted officially by the

government of Liberia. The framework became much clearer in 2010.

107. Consequently, as at the time of the draft audit report, many agencies of government

including the GAC are yet to comply for the period under audit in a manner that renders

this observation as being satisfactorily dealt with. We have however made progress on this

issue after a host of training sessions for Comptrollers of Ministries and Agencies. This is

a clear attestation of the challenges in building and implementing a system which

cannot be just approached from the perspective of all the flaws and faults but how have

we all worked in ensuring that we achieve full and reliable reporting in a timely and proper

manner.

108. On the risk that Fiscal Outturn Report produced by MOF is deficient of information on the

assets, liabilities and fund balances, and for that matter the report does not portray

GOL's financial performance and the financial position of the country as well as t he

cash flows, again the MOF contended that the “deficiency as noted has been



significantly corrected for fiscal 2009/ 2010. Again please find attached exhibit-G

outlining the Financial Report of the Consolidated Fund. It must also be noted that for a

country that is gradually emerging out of civil crises with most elements of governance

broken down or dysfunctional, the systems, policies and procedures, institutions will

require some time to fully conform to all requirements under the laws.

109. The preparation of IPSAS financial statements commenced only in 2010 for the first

time in our reporting process. This further enhances our commitment to ensure the

public right to know and will be continuously improved. The Fiscal Outturns

themselves have undergone periodic enhancements and are complimented by these

financial statements. We therefore do not agree that stakeholders have been deprived in

getting access to information.

110. We however do affirm our commitment to ensuring that all stakeholders within the

GOL conform to the requirements for reporting timely and accurately so that the

agencies responsible for compilation will also be able to get their reports done in a timely

manner.

Auditor-General’s Position 111. The Ministry of Finance’s contention that its timely preparation of financial statements

of the Consolidated Fund would have been a retroactive application of the Public

Financial Management Act of 2009 is without merit. The Revenue Code 2000 is one of

primary legislations governing public finance management in Liberia and Section 2205

of the Revenue code mandates MOF officials to timely prepare and submit financial

statements on the Consolidated Fund. The Minister of Finance submitted financial

statements on the Consolidated Fund of Liberia for the fiscal year ended June 30, 2010,

compiled on IPSAS cash basis accounting, to GAC on November 21, 2011. The

statements were submitted after the issuance of the Draft Auditor-General’s Report on

the Fiscal Outturns for 2008/9 and 2009/10. As the statements were presented at the

virtual end of the audit (i.e. after I have completed my audit on the Fiscal Outturns), I

could not validate and express my opinion on the statements.

112. As required by the IPSAS Standard on Cash Basis Accounting, the financial statements

on the Consolidated Fund of Liberia for the fiscal year ended June 30, 2010 are required

to be incorporated in the 2010/11 fiscal year financial statements for the CF as

corresponding/prior-year figures. It is thus planned that the audit of the 2010/11 fiscal

year financial statements on the Consolidated Fund will cover as well the 2009/2010

financial statements submitted. In other words, the financial statements for 2009/10,

which was submitted after completion of this audit will be audited during my

subsequent audit of the Consolidated Fund Account.

Internal Control Operating in Ministries and Agencies of GOL

Observation

113. In my bid to evaluate the concept, internal control, operating within ministries and

agencies of GOL, I have viewed the concept in the context of Enterprise Risk



Management (ERM). The ERM includes the methods and processes used by

organizations to manage risks and seize opportunities related to the achievement of

their objectives. ERM provides a framework for risk management, which typically

involves identifying particular events or circumstances relevant to the organization's

objectives (risks and opportunities), assessing them in terms of likelihood and

magnitude of impact, determining a response strategy, and monitoring progress. By

identifying and proactively addressing risks and opportunities, business enterprises

protect and create value for their stakeholders, including owners, employees,

customers, regulators, and society overall.

114. ERM can also be described as a risk-based approach to managing an enterprise,

integrating concepts of internal control, Sarbanes–Oxley Act, and strategic planning.

ERM is evolving to address the needs of various stakeholders, who want to understand

the broad spectrum of risks facing complex organizations to ensure they are

appropriately managed.

115. The internal control component of the ERM is predicated on the Committee of

Sponsoring Organization of the Treadway Commission (COSO) framework. The COSO

framework is an internal control standard that sets the benchmark for an effective

internal control system. In terms of the COSO framework, an effective internal control

system should consist of five elements which are, the control environment, risk

assessment, information and communication, control activities and monitoring.

116. My review of the effectiveness of internal control operating in ministries and agencies of

GOL thus focused on the five elements within the COSO framework. The outcomes from

the review of the various elements on J. F. K. Hospital, Ministries of Internal Affairs,

Public Works and Education are presented below. Because of the limited time within

which the audit was undertaken, my review could not cover all ministries and agencies

of GOL. However, since the institutions selected for review was done on random basis,

the outcomes from the review would reflect the generality of the state of internal

control in the GOL ministries and agencies.

Control Environment

117. In terms of the requirement of COSO internal control framework, management of any

organization should provide a framework within which the internal control operates.

This is set by the tone of management, its philosophy and operating style,

organizational structure, and the way in which authority is delegated, staffs is organized

and developed (human resource policies and procedures) and the commitment of those

charged with governance. In the management of an entity, a framework for good

internal control system of checks and balances exist, when there is a clear division of

the responsibilities as defined by an approved organizational structure by those charged

with governance. In addition, the roles and responsibilities of staff must be clearly

defined in each staff’s terms of reference. The entity should also develop a Mission

statement that encompasses the Vision, values and objectives of the entity, which must

be communicated to all staff.



118. During the audit, we did not see evidence that the environment in which the internal

controls were operating complied with the requirements of the COSO framework in the

management of the Ministries of Internal affairs, Public Works, Education and JFK

Hospital.

119. There was no evidence that the above entities were operating with an approved

organizational structure. In addition, there was no evidence that the entities had

developed a strategic plan and operational plan for use in the allocation of resources

during the period under review. I could not therefore ascertain the basis on which the

entities developed their operational budgets. In addition, there was no evidence that

the entities had developed mission statements encompassing vision, values and

objectives as a good corporate practice that indicate their purpose in life.

120. Furthermore, there was no evidence that staff in these entities had terms of reference

which enable them to know the extent of their responsibilities.

Risk

121. The failure to operate with an approved organizational structure that established a clear

line of authority and responsibility indicates that the organizations may not be able to

assign accountability for action of individuals in the entities. Similarly, the management

of the entities would not be able to determine the optimum staff level needed for the

efficient operations of the entity.

122. Due to the above omission, entities may be over or under-staffed, and therefore may

not be able to achieve their intended objectives.

123. In addition, the failure to operate with a strategic plan and annual operational plan

could indicate that the entities’’ resources are being used without consideration to

prioritization. The entities may not be able to define their strategic intent and purpose.

124. The performance of tasks without terms of reference could result in duplication of tasks

between individuals, thereby causing fraud and errors to occur. This may result in the

entities failing to assign accountability for errors and unethical conduct in the

performance of assignments.

Recommendation

125. Heads of ministries and agencies, particularly Ministers of Internal Affairs, Education,

Public Works and the JFK Administrator should ensure that:

i. Their entities have approved organizational structures, strategic plans and

annual operational plans.

ii. The roles and responsibilities of staff at various levels are clearly defined.

iii. The mission, vision, values and objectives of the entities are clearly defined and

communicated to all members of staff.



Code of Conduct

Observation

126. In terms of COSO framework, the Ministers of Public Works, Internal Affairs, Education

and the JFK Administrator should establish codes of conduct to guide staff in their

conduct or behaviour during the performance of their responsibilities within each entity.

The code of conduct, as established, must be distributed to all members of staff and on

regular basis, awareness programs must be done through training to remind employees

of the need to abide by the code of conduct. The code of conduct should also state

clearly the consequences of failing to comply with the code.

127. I understood that the Civil Service Agency (CSA) has a code of conduct (i.e. Civil Service

Agency Standing Orders) whose applicability spreads to all ministries of GOL. I therefore

sought a copy of the code for evaluation, but the ministers of Internal Affairs, Public

Works and Education could not provide same. There was therefore no evidence that the

ministers of Internal Affairs, Public Works and Education had distributed the Civil

Service Agency standing orders to all staff in their ministries, to help guide staff in their

conduct. There was also no evidence that JFK Hospital’s Administrator had developed

and distributed a code of conduct to its staff.

Risk

128. The Minster of Internal Affairs, Mr. Harrison S. Karnweah, The Minister of Public Works,

Mr. Kofi Woods and the Minister of Education, Mr. E. Othello Gongar failure to distribute

the Civil Service Agency Standing Orders to all staff could negatively impact the

operations of their ministries, as staff may not know the limit of their comportments.

Similarly, JFK Hospital’s staff may not be aware of acts incompatible with the norms of

the Hospital.

Recommendation

129. The Minsters of Internal Affairs, Public Works and Education should ensure that the Civil

Service Agency standing orders are obtained, distributed and properly communicated to

staff in order to guide against acts which may have a negative repercussion on the

operations of the Ministries. The JFK’s Administrator should also ensure that the

Hospital develops a code of conduct, which must be communicated to all staff.

Disaster Recovery Plan or Business Continuity Plans

Observation

130. In terms of best practice, management of an entity should draw up a disaster recovery

plan to recover information in the event of loss. The plan would mitigate the loss of

transaction data and information. The purpose of the plan is to minimize the effects of

services interruption on the operations of an institution by:

• Specifying procedures to be followed in the event of a disaster or specific

situation, especially measures to be put in place to minimize the effects of

disasters;



• Assigning responsibilities to various staff members involved in the implementation

of the plan;

• Specifying procedures for the restoration of normal service following a disaster.

131. There was no evidence that the entities reviewed had disaster recovery plans to help

recover transaction data and information and to ensure business continuity, in the event

of mishap.

Risk

132. The failure to establish disaster recovery plans may result in complete loss of

transaction data and information, in situations where a mishap occurs.

133. Furthermore, if there is no transaction data and information available, entities could be

exposed to fraudulent activities as there will be no back-up information to confirm the

authenticity of transactions.

134. In addition, the above may result in the entities failing to produce quality management

information.

Recommendation

135. The Ministers of Public Works, Internal Affairs and Education as well as the

Administrator of the JFK Hospital must establish disaster recovery plans as part of their

risk management strategies. This would mitigate the risk of loss of transaction data and

information in the event of a mishap.

Human Resource Policies

Observation

136. Standard internal control practice requires that Ministers of Public Works, Internal

Affairs, Education and the JFK Hospital must interpret regulations/instructions related

to human resource and establish policies and procedures providing for the following:

• Human resource, to regulate matters such as orientation, training, promotions,

and compensation.

• Minimum qualification/experience criteria for recruiting skilled and competent

staff

• Training and continuous development of employees

• Skills retention and monitoring of the competency of staff in place to ensure that

skilled and competent staff is retained and assessed.

137. In addition to the above, there must be evidence that the policies and procedures have

been properly communicated to all staff.



138. Contrary to the above, from documents examined, we did not see evidence that the

Ministers of Internal Affairs, Public Works, Education and the JFK Hospital Administrator

had interpreted relevant regulations and included the requirements in its own

documented and approved policies and procedures. I am mindful of policies developed

by the Civil Service Agency, but such policies are generic and may not address the

distinctive human resource needs of the respective entities.

Risk

139. The failure to interpret and develop own policies and procedures relating to the

management of human resource could indicate that the above entities are not able to

recruit and maintain competent staff. This may also indicate that the entities are using

policies and procedures that do not address their unique human resource needs.

140. Additionally, staff may not be motivated to perform to their highest abilities, resulting in

poor work output and engagement of unethical dealings.

141. In addition, it may result in unfair practices in terms of placement, compensation to

employees, thus leading to unmotivated staff.

Recommendation

142. Human resource policies and procedures must be developed and properly

communicated to staff by the of Ministers of Internal Affairs, Public Works, Education

and the JFK Hospital Administrator in order to instil a sense of job security, job

satisfaction, etc. that provide a clear career path.

Staff Performance Evaluation

Observation

143. In terms of standard internal control practice in the management of human resource,

the Ministers of Public Works, Internal Affairs, Education and the JFK Hospital must

evaluate the performance of each individual staff of the entities on a regular basis. This

would entail initially agreeing on performance targets and objectives at the beginning of

the period to be appraised and conducting performance appraisal at the end of the

performance period.

144. Contrary to the above, there was no evidence that the Ministers of Internal Affairs,

Public Works, Education and the JFK Hospital were conducting performance appraisals

of its staff on a regular basis. We could not therefore ascertain the basis of placement

of various staff and how grading and promotion was done within each entity.

Risk

145. Non-conduct of performance appraisal of staff could indicate that the entities are not

aware of staff deficiencies that may impact negatively on their ability to deliver quality

services. In addition, the entities may not be able to identify good performance from

underperformance, resulting in low motivated staff due to failure by the each entity to

reward good performance.



Recommendation

146. The Ministers of Internal Affairs, Public Works, Education and the JFK Hospital’s

Administrator should implement staff performance evaluation process, in order to

identify staff performance deficiencies and take corrective measures. This would also

enable the respective entities to know the extent to which they are able to deliver

quality service to their clients.

Risk Assessment Process

Observation

147. In terms of COSO framework, the Ministers of Public Works, Internal Affairs, Education

and the JFK Hospital Administrator must establish a risk management policy which will

set the basis for conducting risk assessment within the entities. Risk assessment

process entails identifying and analyzing the risk that may impact negatively on the

achievement of each entity’s objectives, such as, technological, economic,

administrative, security, fraud and skills retention risk and how each risk should be

managed.

148. During the audit, the Ministers of Public Works, Internal Affairs, Education and the JFK

Hospital Administrator failed to provide evidence that they had developed a risk

management policy and were conducting risk assessment procedures that enable the

entities to identify risk and formulate mitigating strategies to the risk.

Risk

149. The failure to perform risk assessment procedures that would enable the management

to identify strategic and operational risk, could indicate that the entities’ management

are not aware of potential risk that exist within each entity’s business operations.

Prevalence of such situation may impact the entities’ ability to provide quality service.

Recommendation

150. The Ministers of Public Works, Internal Affairs and Education as well as the JFK

Hospital’s Administrator must establish a risk management policy and perform risk

assessment procedures in order to identify and manage risk that would impact

negatively on each of the entities’ ability to achieve their objectives. This would enable

the respective entities to identify risks that would impact negatively on their ability to

deliver quality service and design appropriate risk responses.

Information And Communication

Observation

151. The COSO framework requires that institutions must produce accurate and timely

information and communicate it to the stakeholders, such as the Legislature, GAC,

international partners, and their clients, etc on a regular basis, as required under extant

regulatory framework. The information must be accurate to enable the stakeholders to

make informed decisions.



152. During the audit, I was not provided with evidence that the Ministers of Internal Affairs,

Public Works, Education and the JFK Hospital were producing regular reports to external

stakeholders such as the Legislature, the Ministry of Finance, the General Auditing

Commission, as required for instance under Regulations I.9 and I.11, PFM Regulations.

Risk

153. Failure to provide periodic reporting as required under extant regulatory framework

would deny stakeholders of these institutions valuable information needed for informed

decision making. For instance, non-provision of financial statements to the General

Auditing Commission for audit purposes, as required under Regulation I.9(1), PFM

Regulations, indicates the non-existence of a properly designed information and

communication system in these institutions. The effect of this omission is that assurance

required by taxpayers that resources allocated by the National Legislature to these

institutions have been properly accounted for, would not be provided.

Recommendation

154. Heads of Ministries and Agencies of GOL, particularly Ministers of Internal Affairs and

Education and the JFK Hospital should ensure that requirements of extant regulatory

framework regarding periodic reporting by their entities are strictly adhered to.

Control Activities

Observation

155. Under the COSO framework, institutions must interpret relevant financial regulations

and develop its own written policies and procedures, to enable the effectiveness in the

management of key processes of each entity. The policies and procedures should be

able to guide staff in key processes such as recording, utilization of the entity’s

resources, reporting and monitoring. In addition, the policies should include roles and

responsibilities of personnel involved, detailing documentation and reporting

requirement.

156. I noted that there was no evidence that the Ministers of Internal Affairs, Public Works,

Education and the JFK Hospital Administrators had interpreted regulations to develop

policies and procedures (i.e. operational manual) to guide key processes in areas such

as accounting, human resource and other resource utilization operations.

Risk

157. If there are no policies and procedures to guide staff in operational activities, personnel

may not be guided, which may result in the commissioning of errors and pursuit of ill-

advised activities.

Recommendation

158. The Ministers of Internal Affairs, Education and the JFK Hospital’s Administrator should

interpret regulations and develop policies and procedures to guide staff in the

recording, reporting and monitoring of information.



159. In addition, the policies should include roles and responsibilities of personnel involved

detailing documentation and reporting requirement, such as authorization,

processing/recording, reporting, custody of records and methods of resolving incorrect

processing.

Monitoring

Observation

160. The COSO framework provides that management of an entity should establish

procedures that ensure regular monitoring of internal controls and other activities within

the entity, in order to identify control deficiencies within a reasonable time. Internal

auditors play an important role in evaluating the effectiveness of control systems. As an

independent function reporting to the top management, Internal Audit is able to assess

the internal control systems implemented by the organization and contribute to ongoing

effectiveness. As such internal audit often plays a significant monitoring role. The

Internal Audit Unit should conduct regular audits and prepare reports as evidence of

their activities.

161. However, I did not see evidence that the Ministers of Internal Affairs, Public Works,

Education and the JFK Hospital had established procedures to monitor the effectiveness

of internal controls on a regular basis. In addition, there was no evidence that the

internal audit unit of the entities had produced any reports regarding the effectiveness

of internal controls operating in their respective institutions.

Risk 162. Failure to effectively evaluate the internal control system may result in waste, error

and/or abuse in institution’s operations. This is because management may not be aware

of the deficiencies within its operations.

Recommendation

163. The Ministers of Internal Affairs and Education and the JFK Hospital Administrator

should monitor the effectiveness of the internal controls on a regular basis. This is

accomplished through ongoing monitoring activities or separate evaluations. Internal

control deficiencies detected through these monitoring activities should be reported

upstream and corrective actions should be taken to ensure continuous improvement of

the system. The monitoring of internal controls should be delegated to the internal audit

unit. This will ensure that errors and fraud are prevented; identified and corrective

action is taken within a reasonable time.

Internal Audit Function

Observation

164. Internal Auditing Standard 1000 stipulates that the purpose, authority, and

responsibility of the internal audit activity must be formally defined in an internal audit

charter, consistent with the Definition of Internal Auditing, the Code of Ethics, and the

Standards. The internal audit charter establishes the internal audit activity's position



within the organization, including the nature of the chief audit executive’s functional

reporting relationship with the Heads of entities; authorizes access to records,

personnel, and physical properties relevant to the performance of engagements; and

defines the scope of internal audit activities. Final approval of the internal audit charter

resides with the Head of entity. The Head of Internal Audit must periodically review the

internal audit charter and present it to senior management and the board for approval.

165. Contrary to the above, there was no evidence that the internal audit units in the

Ministries of Internal Affairs, Public Works, Education and the JFK Hospital were

operating under respective internal audit charter.

Risk

166. Non-development of an internal audit charters for the three institutions’ internal audit

units meant that the internal audit units did not know their roles and responsibilities,

and understood the scopes of their work. This failure has tended to make internal audit

unit ineffective.

Recommendation

167. The Ministers of Internal Affairs and Education and the JFK Hospital’s Administrator

should ensure that the internal audit units are operating under internal audit charter as

it is a formal document that defines the internal audit activity's purpose, authority, and

responsibility.

Audit Planning

Observation

168. Internal Audit Standard 2010 requires the head of internal audit to establish risk-based

plans to determine the priorities of the internal audit activity, consistent with the

organization’s goals.

169. Contrary to the above, there was no evidence during our examination that the internal

audit units of the Ministries of Internal Affairs, Education and the JFK Hospital had

developed audit plans during the execution of their various audits. In addition, there

was no evidence that the internal audit had carried out their function as there was no

report of work done.

Risk

170. The failure to develop audit plans would result in the internal audit units not being able

to prioritise their activities and identify risks that may hinder the achievement of the

entities’ objectives.

Recommendation

171. The heads of internal audit units of the Ministries of Internal Affairs and Education and

the JFK Hospital should ensure that the units develop audit plans, so as to be able to

identify risk areas and also provide effective assurance on the operations of their

respective institutions’ internal control systems. In addition, audit activity should be

evidenced by internal audit reports.




172. The GoL adopted an Internal Audit Strategy in October 2010. The Strategy spans five (5)

years (2010 –2015). The objective of this strategy is to improve transparency and

accountability across central government through the recruitment of a cope of highly

qualified accounting and finance professionals.

173. With the introduction of this strategy, which has started in earnest and expectation that

the first recruits will be deployed in December 2011, the issues of internal audit

charters, governance, etc will be handled in a more holistic manner and consistent with the

government policy objectives surrounding internal audit.

Auditor General’s Position

174. The Ministers of Public Works, Education, Internal Affairs and the J.F.K. Hospital

submitted documentation to support their claims that appropriate control environment,

code of conduct, business continuity plans, human resource policies, staff performance

evaluation, risk management processes, information and communication, control

activities, monitoring and internal audit function existed and operated within their

respective institutions. My review of the documentation submitted indicated that these

claims by the heads of the institutions could only be confirmed in the case of Ministry of

Public Works. In other words, The Ministers of Education, Internal Affairs and the J.F.K.

Hospital did not meet the minimum requirements consistent with the COSO framework of

internal control.

175. I therefore reiterate my recommendation that all heads of ministries and agencies of GoL

should ensure that the various aspects of internal control, as dilated on above, are

instituted and operationalized in their respective institutions to promote efficiency,

effectiveness, economy as well as transparency and accountability in the institutions’

operations.

REVENUES OF THE CONSOLIDATED FUND

Consolidated Fund, Cash and Bank: Current composition of the Consolidated Fund

Observation

176. The Consolidated Fund (CF), as defined under both the PFM Act, Section 4(1) and

Regulation B.2, PFM Regulations, of 2009, comprises the following receipts:

i. Tax Revenue, including taxes on income and profits, goods and services, and

taxes on international trade and other transactions.

ii. Non-tax revenues and internally generated funds.

iii. Repayment of loans.

iv. Domestic and external grants.

v. Other revenues received under an enactment;



vi. Other receipts including the product of borrowing, repayment of government

loans and advances, sale of government securities, sale of government equity

investments, sale of other government assets and special funds.

177. Also Regulation H.6(1), PFM Regulations, provides that Operations Accounts of

ministries and agencies are part of the CF. Additionally, Transitory Accounts as defined

under Section 34(4), PFM Act of 2009 as well as Accounts of Liberia Foreign Missions

are part of the CF. Also implied in the CF composition are Accounts of major outlays, at

the minimum, paid from the CF.

178. However, my review from both the perspectives of the CBL and Comptroller and

Accountant-General noted that the CF, as currently constituted, comprised five (5) main

accounts, namely:

i. Central Revenue Account (USD)

ii. Central Revenue Account (LD)

iii. Operation Account (USD)

iv. Operation Account (LD)

v. Payroll Account (LD)

179. I noted that the Data Capture Revenue Accounts and Reconciliation Section (DCRARS)

of the MOF, the outfit with the mandate to capture all revenue collections of GOL and

also undertake reconciliation to provide assurance that all revenue collections are duly

lodged into the CF, maintains accounts for some 174 Tax Kinds in its Tax Administrative

System (TAS). The CBL, on the other hand, also maintains a journal, besides the above

five main accounts, that captures the details of daily inflows into the GOL General

Revenue Accounts.

180. In my view, the DCRARS accounts for the tax kinds are too exhaustive for purposes of

monitoring and reconciliation. What is required instead is subsidiary accounts for each

of the main inflows of Bureaus of Customs and Excise and Internal Revenue and other

agencies’ collections, to facilitate monitoring and reconciliation. For the CBL, I observed

that inflows recorded in its journal are not posted to any subsidiary accounts of the CF,

but rather entered straight to the GOL General Revenue Accounts. Under Regulation

H.10(2), PFM Regulations, the Comptroller and Accountant–General and CBL are

required to maintain a list of government accounts, which both institutions should

reconcile periodically.

181. By the dictates of Regulation H.6(f), PFM Regulations, the CF accounts required to be

maintained by the CBL and the Comptroller and Accountant-General are supposed to

follow the same classifications as prescribed in the government’s Chart of Accounts. As

at the time of reporting, the GOL Chart of Accounts has been compiled for the

Integrated Financial Management Information System (IFMIS).

182. The Comptroller and Accountant-General indicated that the MOF is mindful of the

requirements of the extant regulatory framework concerning the CF, but that the MOF



was working towards achieving the Treasury Single Account, as stipulated under Section

34, PFM Act.

Risk

183. For the purposes of effective determination of CF balance, monitoring and reconciling

inflows and outflows of the Fund, the CF, as currently constituted, is not adequate.

Though I acknowledge CBL and MOF pursuit of the concept of a Treasury Single

Account, in which all accounts of Central Government are essentially managed as one

from a cash based point of view, the non-provision of subsidiary accounts for the five

main accounts, into which main inflows and outflows would first hit before being

transferred into the five main accounts, would prohibit effective determination of CF

balance, monitoring, reconciling and control of the Fund. Absence of monitoring and

reconciliation of both inflows and outflows of the CF deny assurance that all inflows of

the Fund are being accounted for and the Fund disbursements are duly authorized.

Recommendation

184. The accounts making up the CF should be in accordance with the dictates of the extant

regulatory framework. To this end, the Comptroller and Accountant-General and

Managers of the CF at the CBL should jointly consider subsidiary accounts of the CF, at

the minimum, which are required to be maintained by both the CBL and Comptroller

and Accountant-General, to facilitate the determination of the CF balance, monitoring,

reconciliation and control of both inflows and outflows of the Fund. In my view, at the

minimum, the following subsidiary accounts should be considered for the purposes

indicated below:

i. Tax Revenue:

• Accounts for all major collections of Bureau of Internal Revenue, including

fines, penalties and forfeitures.

• Accounts for all major collections of Bureau of Customs and Excise, including

fines, penalties and forfeitures.

ii. Non-Tax Revenues:

• Accounts for Fees and Charges, Rent for Natural Resources, Lands and

Buildings, Interest on GoL Investments, Dividends.

• Internally Generated Funds (IGF): Account maintained for each IGF. e.g.

Revenue from Motor Vehicles registration, drivers’ license and related items.

iii. Repayment of loans.

iv. Domestic and external grants: Accounts maintained separately for grants

available to support operations of the National Budget and grants earmarked for

specific projects.

v. Other revenues received under an enactment;



vi. Other receipts including the product of borrowing, repayment of government

loans and advances, sale of government securities, sale of government equity

investments, sale of other government assets and special funds.

vii. Payroll costs of GOL.

• Accounts for Basic Salaries of major economic classifications of GOL.

• Accounts for Allowances and other benefits of major economic classifications

of GOL.

• GOL Contributions.

viii. Goods and services: Accounts for:

• Fuel and Lubricants

• Other Consumables

ix. Domestic and Foreign Travels Accounts

x. Transfers and Subsidies Accounts

xi. Capital Transfers for Counties Development Account

xii. Domestic and External Debts Accounts.

185. The Subsidiary Accounts to be established for the CF and maintained by both the

Comptroller and Accountant-General and CBL should follow the same classifications as

contained in the GOL’s Chart of Accounts and stipulated under Regulation H.6(f), PFM

Regulations, 2009.


186. We do not see any variation or departure from Regulation H.6 (f) as inferred in the Draft

Report. The chart of accounts prescribes appropriate codes for items outlined in the

financial statements. Data Capture accounts for every transaction and must collect the data

in a form and manner that enables effective monitoring. Financial Reporting in the context

of adherence to the chart of accounts is well satisfied by the fact that we maintain only

one CBL Account per currency for revenue cash. The applicable code in the COA for revenue

is 321102. This validates the practice of one account per currency. Data Capture therefore

maps all transactions to that one account consistent with the current regulations and chart

of accounts.

187. On the issue of effective determination of CF balance, monitoring and reconciling inflows

and outflows of the CF, the MOF observed that while we note that this sub

categorization may help in decongesting the consolidated fund revenue account, the

current chart of accounts and the regulations do not support this recommendation. It

would therefore be useful to further explore the attendant benefits for an amendment to

the regulation as is being implicitly recommended.




188. The existing regulatory framework governing the management of the CF would not

prohibit the maintenance of the subsidiary accounts recommended for the CF. In other

words, the Comptroller and Accountant-General and the CBL are at liberty to institute

accounts that are in their view, necessary to facilitate the effective determination of the

CF balance, monitoring, reconciliation and control of both inflows and outflows of the

Fund. It is thus my considered position that the controlling, monitoring and reconciling

of inflows and outflows of the CF, as currently constituted, is not adequate. Thus, MOF

and CBL should maintain subsidiary accounts, which is critical in achieving these

objectives.

Non-Distinction Among Accounts Constituting the Consolidated Fund

Observation

189. Although, the CF is conceived by Regulation H.5(1), PFM Regulations of 2009, as

Treasury Single Account, in practice its effective management requires that distinction

be drawn among the subsidiary accounts making up the Fund. This is because not all

the funds in the subsidiary accounts, at any given time, may be available to support the

operations of the GOL’s National Budget. For instance, grants received and earmarked

for specific projects are not available to fund the day to day operations of the National

Budget, though Section 4(1), PFM Act, classifies both Domestic and External Grants as

part of the CF.

190. Similarly, Section 28(6), PFM Act stipulates “all proceeds from government borrowing

shall be credited to the Consolidated Fund except for loans in which proceeds are

transmitted directly from official donor agencies to contractors and suppliers, borrowing

by State-Owned Enterprises and other autonomous agencies not falling directly under

Central Government control”, The implication of this provision is that such funds where

they arise from agreements or contractual obligations, though forming part of the CF,

should be distinguished from others, as they are committed.

191. Besides the requirements as expatiated above, it is also possible for the Minister of

Finance/Comptroller and Accountant-General in consultation with the CBL, to earmark

part of inflows into the CF, as and when necessary, to fund particular commitments of

GOL, such as debts servicing etc. Again, such funds set aside are part of the CF though

committed.

192. My review did not sight evidence that the funds of the CF are being managed in a

fashion where distinction is drawn between funds that are committed and uncommitted.

Uncommitted Accounts being accounts whose funds are available to support the

National Budget, whilst Committed Accounts are those earmarked for specific purposes.

Risk

193. The current approach for managing the CF could result in earmarked funds being

applied for purposes not intended. Such misapplication could embarrass GOL by causing



donors/development partners of Liberia to lose trust in the GOL, thus putting in

jeopardy subsequent inflows from the donors/development partners.

Recommendation

194. The subsidiary accounts of the CF, on any given date, should be classified as either

Committed or Uncommitted. Constant interaction between the Minister of

Finance/Comptroller and Accountant-General and the CBL would make possible, the

realization of this objective.


195. The issue is not whether the best method of funds management is distinguishing

uncommitted and committed funds through accounts based funds separation. We have

over time separated earmarked funds which are not otherwise available for general

spending as they constitute first lien on GOL Resources irrespective of whether they are

committed or not. The challenge is information availability timely enough to facilitate the

management process.

196. Secondly, payments which are uncommitted and known to the MOF have also been set

aside and re-appropriated as part of the encumbered carried forward balances. An

Example is the Rice Stabilization Fund. During the process of budget planning

provision has always been made for earmarked account(s) and committed funds.

197. Lastly, the consolidated funds are not managed in a form and manner that doesn’t

distinguish committed and uncommitted fund. All updates given to stakeholders have

informed this position from time to time. May we at this junction remind the General

Auditing Commission that the most recent case in point is the determination of the

uncommitted carried forward balance of USD 8.7 million which was included in the

fiscal year budget and reflected an adjustment from USD2.536 million. Another

reference to this issue is the uncommitted cash analyses reflected in the monthly

financial statements.


198. MOF contention that the CF is not managed in a form and manner that doesn’t

distinguish committed and uncommitted funds” was not evident in documentation

submitted to me on the CF composition at the close of 2008/9 and 2009/10 fiscal

years. The concept of CF committed and uncommitted funds should be recognised at

the level of CF accounts so that the possibility of applying funds for purposes not

intended would be avoided. Therefore, I maintain my recommendation.

Monitoring and Control of Consolidated Fund Accounts

Observation

199. The dictates of the PFM Regulations listed below are part of the requirements of the

extant regulatory framework, which explicitly indicate that the accounts of the CF

should be constantly monitored and controlled:



• “Government agencies’ accounts are automatically swept at the end of each day

(ref. Regulation H.6(d) );

• Daily centralization of the cash balance (when possible) where the Central Bank

consolidates Government’s position at the end of each day including balances in

all the government accounts (ref. Regulation H.6(e) );

• The amount of money that periodically constitutes an idle balance in the Treasury

Single Account system will be determined by the Comptroller-General (ref.

Regulation H.7 (1) ).

• The Comptroller-General, in consultation with the Central Bank, will establish a

short term plan aimed at making the most efficient use of these idle balances,

based on principles agreed by the Minister, and with due regard to the short term

spending requirements in the cash flow plans” (ref. Regulation H.7(2) ).

200. As expatiated on in the earlier observations, the CF in practical reality is conceived as

comprising, at any given date, a definitive list of accounts, though statutorily considered

as Treasury Single Account. From the perspectives of both CBL and MOF, the CF is

currently composed of five main accounts. The maintenance of the five main accounts is

undoubtedly in fulfilment of the pursuit of the Treasury Single Account. However,

without the maintenance of subsidiary accounts making up the five main accounts,

effective monitoring, reconciliation and control of the CF accounts become impossible.

201. For instance, monitoring to ensure that the timeframe of 24 hours within which funds in

transitory accounts should be transferred into the CF (ref. Regulation B.6, PFM

Regulations) can only be effected in situation where both the CBL and MOF maintain

the same classified subsidiary accounts into which these funds are lodged, before

lodgement into the GOL General Revenue Accounts. The requirement for both MOF and

CBL to maintain the same subsidiary accounts of the CF is implied under Regulation

H.6(f), PFM Regulations, which stipulates that “transactions recorded into these

accounts along the same set of classifications prescribed in the government’s Chart of

Accounts”. Similarly, other requirement of extant regulatory framework such as the

directive that Operations Accounts of ministries and agencies should not be used to

accommodate funds such as grants other than GOL approved funds provided under

Appropriation Act, cannot be enforced in the manner the CF is currently constituted.

202. My review did not sight evidence of monitoring of the CF Accounts by both MOF and

CBL, to provide assurance on regularity of dealings on the accounts. The Comptroller

and Accountant-General indicated that his outfit monitoring of the CF accounts involved

maintenance of documentation and periodic reconciliation to validate observed

movements on the five main accounts of the CF, namely GOL General Revenue

Accounts, LD and USD, Operations Accounts, LD and USD, and Payroll LD. I sought

documentation to determine the adequacy of the said monitoring and reconciliation, but

the requisite documentation was not provided.



203. Additionally, I examined monthly reconciliation reports of the DCRARS, MOF, with the

objective of determining whether any such monitoring and reconciliation was

undertaken. My examination indicated that the reconciliation undertaken by DCRARS

was ineffective because of number of factors. Significant among these factors, being

the non-maintenance of definitive listing of subsidiary accounts underpinning the GOL

General Revenue Accounts. These subsidiary accounts are required to hold daily

collections captured by the DCRARS section which can be compared with inflows before

entering the GOL’s General Revenue Accounts. The Section does not undertake

reconciliation on daily basis. Though the monthly report of DCRARS matches GOL daily

collections as captured by the Section against daily lodgements at CBL, these were no

near reconciling. On daily basis, significant variances between collections and

lodgements were recorded and there was no indication that these variances were

reconciled daily. The control period of one month observed, within which the DCRARS

reconciles revenue collections with lodgements into the CF at the CBL, is inordinately

long.

204. Other limiting factors besetting the effective discharge of the DCRARS mandate involved

the non-linkage electronically of:

• The Bureau of Customs and Excise and Liberia Petroleum and Refinery

Corporation (LPRC) Customs operations with the TAS; the institutions operate

on the ASYCUDA system which does not interface with the TAS, operated by the

DCRARS; and

• BIVAC operations with the DCRARS TAS.

205. Additionally, the CBL’s Teller Windows established within the ministries and agencies are

also not electronically linked to the CBL as well as to the TAS. As a result, all collections

effected in a day are placed on pen drives and physically transported to the CBL for

processing and lodgement into the GOL General Revenue Accounts. This way, CBL

records on lodgements effected daily do not coincide with daily collections captured by

the DCRARS under the TAS.

206. Furthermore, the effects of the application of Memoranda of Understanding (MOUs)

entered into by MOF with other parties, involving collection of revenue from vehicles

registration and related fees, work, residence permits etc have intervened to render

impossible, reconciliation of GOL collections and lodgements into the CBL. This

particularly limiting factor is expatiated on in subsequent segments of this report.

Risk

207. Ineffective monitoring and control of subsidiary accounts statutorily constituting the CF,

could limit funds considered available on the CF for disbursement on GOL programs.

This is because under such situation, not all the accounts constituting the CF are under

the surveillance of the CBL and MOF, thus funds held on some of these accounts would

be excluded for purposes of determining the CF balance as well stay longer than the

stipulated 24 hours in the transitory accounts.



Recommendation

208. As earlier suggested, definitive list of subsidiary accounts making up the CF and

underpinning the CF five main accounts should be maintained by both the CBL and

MOF.

209. Having instituted the definitive list of subsidiary accounts for the CF, the CBL and MOF

should constantly monitor and reconcile revenue collections and lodgements into these

accounts, to provide assurance on regularity of dealings in the subsidiary accounts, that

funds held on the accounts are not unduly kept beyond 24 hours, and also in

determination of the CF balance on any given date, all the subsidiary accounts’ and

transitory accounts’ balances are considered as well.

210. The operations of the Bureau of Customs and Excise and that of LPRC, involving the use

of the ASYCUDA system in the assessment and collection of Petroleum, Import Levy

and, Sales Tax, as well as the operations of BIVAC, Liberia, should be interfaced with

the TAS operated by the DCRARS, to make possible daily monitoring and reconciliation

of GOL collections with lodgements into the CF.

211. Similarly, CBL teller points established within the ministries and agencies should be

electronically linked with the CBL and also interfaced with the TAS operated by DCRARS.

This is urgently required to make possible daily reconciliation of all GOL collections and

lodgements into the CF.

212. The MOUs entered into by MOF with parties, involving the provision of vehicles’ number

plates and value books should be re-looked at, with the view to remove all aspects of

the MOUs’ effects that hamper monitoring and reconciliation of GOL collections and

lodgements into the CF. (NB: Subsequent segments of this paper critically look at the

effects of these MOUs and recommends as appropriate).


213. Evidence abounds with regards to monitoring of the CF accounts by both MOF and CBL

which provide more than the necessary assurance that anyone needs as to the

regularity of transactions on these accounts. We shall sight a few examples as proof of

this statement.

• There is no payment that is authorized as a dealing on these accounts by the

MOF that is not backed by an official PAYMENT RELEASE (GREEN LETTER),

except for bank charges and CBL Loan Covenants.

• There is also no payment made on the consolidated operational accounts that is

made by a letter written by an official of government rather than an official GOL

Check properly routed through the business processing and authorization chain.

• No regular payment transactions for vendors and civil servants are done on the

Consolidated Revenue Accounts, only transfers to the expenditure accounts for

operational purposes.



214. With regards to the reconciliation of the revenue accounts and the CBL balances, we

can affirm that these reconciliations are currently being done on a daily basis if not in

the past.

215. Reconciliation of the subsidiary accounts will go through the same reconciliation process

in effect now. There will be variances between the consolidated account at the MOF

and the central Bank due to sharing arrangement for license plates , work and resident

permits as per the MOU establishing the accounts. MOF maintains several collection

points; sweeping to the CF is not electronic. System break down at one collection point

may delay posting to the consolidated fund

Auditor General’s Position 216. The measures indicated above by MOF are part of controls exercised in accessing funds

of the CF. Monitoring of the CF, in essence, means conduct of continuous review to

obtain assurance that all inflows as documented by DCRARS have actually hit the CF

accurately, completely and in timely fashion and also disbursements effected by MOF

and other GOL agencies subsisting on the CF have impacted the CF in a similar fashion.

I did not observe a mechanism in place to achieve these objectives.

Consolidated Fund Balance as at the Close of 2008/9 and 2009/10 Fiscal Years

Observation

217. Revenue obtained by “GOL in the fiscal year 2008/9 was US$234.91 million, and after

taking into consideration, funds brought forward from the prior fiscal year (i.e.

US$23.38 million), US$258.29 was available for disbursement on GOL

programs/activities/projects. As revenue intake became challenging, Expenditures were

streamlined in keeping with the balanced cash-base budget policy. Uncommitted

balance carried forward to the next fiscal year (FY2009/10) stood at US$1.6 million”.

Ref. page 17, 2008/9 Fiscal Outturn.

218. Similarly, in 2009/10 fiscal year, “a total of US$288 million was generated, while

US$7.8 million was added from the previous year unspent cash balance which

aggregated the fiscal year revenue to US$ 295.8 million. On the Expenditures side,

US$308.6 million was allotted, whereas actual commitment was limited to US$ 292.7

million or about 98 per cent of the available envelope”. Ref. page 26 of 2009/10 Fiscal

Outturn. Again, page 27 of 2009/10 Fiscal Outturn indicated that “at the end of the

fiscal year 2009/10, the balances in the five bank accounts were UDS$57,041,681.29

and L$509,781,233.75. The aggregate closing bank balance using the exchange of LD

71:1USD is US$64,221,700.67. The US$64,221,700.67 has been adjusted to US$10.73m

based on outstanding checks and other related transactions that are expected to be

disbursed from GOL’s bank accounts”.

219. The above quotes from the 2008/9 and 2009/10 Fiscal Outturn Reports portray the

bases on which the balance of the CF were determined at the close of the respective

fiscal years. As evident, the balances were arrived at on the bases of the five main

accounts of the CF, as currently constituted, as well as the dictates of Regulation B.26



(2), PFM Regulations, which stipulates that “any unpaid balances on commitments will

also lapse at the end of the year, unless goods and services have already been

delivered, in which case, settlement must be made within 90 days of the end of the

fiscal year”. The CF balances of the two fiscal years under review excluded balances of

transitory accounts, accounts of Liberia Foreign Missions and those of operations

accounts of ministries and agencies of GOL.

220. Another factor impacting the determination of the CF Balance, as indicated in the Fiscal

Outturn Reports, is the accounting basis used for recognition of GOL Expenditures.

These bases had constantly changed from one fiscal year to the other. The Minister of

Finance, for instance, reported a change in accounting basis from cash in 2006/7 to

commitment basis in 2007/8. This change was reversed in 2008/9 to cash basis.

Furthermore in 2009/10, the basis changed to “Budget cash Expenditures – i.e. the cash

Expenditures which is directly related to commitments made against the 2009/10

Budget”. Ref. page 12, 2009/10 Fiscal Outturn Report. The changes from one

accounting basis to another were not annotated, to give indication of what the CF cash

position would have been but for the changes

221. The Comptroller and Accountant-General admitted the above observation that the CF

Balances for 2008/9 and 2009/10 fiscal years were based on the five main accounts of

the CF only, indicating that the apparent omission was due to the fact that MOF was in

the process of constituting the CF, with the objective of attaining the Treasury Single

Account.

Risk

222. As the CF Cash Positions at the close of 2008/9 and 2009/10 fiscal years were based

only on the CF’s five main accounts (i.e. GOL General Revenue Accounts, Operations

Accounts and Payroll account), to the exclusion of other balances of transitory accounts,

accounts of Liberia Foreign Missions and those of operations accounts of ministries and

agencies of GOL, the CF Cash Positions reported in the respective Fiscal Outturn

Reports were not valid. Furthermore, the absence of annotations for the changes in

accounting bases denied assurance on consistency in application of accounting policies

and rendered incomparable, budgetary performance recorded in the fiscal years 2008/9

and 2009/10. The implication of these lapses is that GOL financial positions at the close

of 2008/9 and 2009/10fiscal years were misrepresented.

Recommendation

223. As required under Regulation H.10 (2), PFM Regulations, 2009, the Comptroller and

Accountant-General and CBL should jointly determine the CF Cash Position always, for

purposes of ascertaining levels of GOL commitments that can be met as well as for

financial reporting. On any given date, the CF balance should be determined by

reference to extant definitive list of reconciled balances of accounts making up the CF.

The definitive list of CF accounts should be maintained by both MOF and CBL and the

two institutions should reconcile these accounts periodically for the purpose of

determining the CF balance.



224. In situations where it is deemed prudent to change the basis of accounting, the Fiscal

Outturn Report should annotate the report, to give indication of what the CF cash

position would have been but for the change, as required by the Statement of Financial

Accounting Standard (SFAS) #154.


225. Before the enactment of the Public Financial Management (PFM) Law in September of

2009, the Ministry of Finance in fiscal year 2008/2009 used the commitment

accounting in recognizing and recording government’s expenditure. In fulfilment of

the PFM Law especially its regulation, A.6 (3), the Ministry of Finance during the fiscal

year 2009/2010 used cash basis form of accounting in recording government’s

expenditures. As you are aware, under the cash basis of accounting, expenses

are recognized when value exchanges completely occurred. In other words, revenues

and expenses are only recognized at the time physical cash is actually received or paid

out. Based on this, we expensed all payments made from the consolidated funds

accounts including payments made to the ministries and agencies and other spending

entities for operational purposes. Therefore, MOF would not include the cash already

recognized as an expense from the consolidated funds in the cash balance carried

forward. We believe this would have been misrepresenting and misstating the cash

balances.

Auditor-General’s Position 226. I acknowledge that the CF, as statutorily stipulated as Treasury Single Account, is in the

process of being established, and therefore for now its composition is not inclusive of all

accounts stipulated in extant regulatory framework. Until the CF is fully established as

such, relevant disclosures should be provided in the Fiscal Outturns and CF annual

financial statements to that effect, so that users of these statutory documents would

know what accounts have contributed in determining the CF Balance on any given date.

Opening and Monitoring of Transitory Accounts

Observation

227. Section 34(4), PFM Act, stipulates that the Minister of Finance “may, in agreement with

the Central Bank of Liberia, authorize the opening of additional bank accounts in the

Central Bank of Liberia and other accounts in domestic and foreign commercial banks,

to act as transitory bank accounts to facilitate the collection of revenues or processing

payments. The details relating to the management of these transitory accounts will be

provided in regulations or instructions to be issued under this Act”.

228. The Minister of Finance has subsequent to the promulgation of the PFM Act; enacted

provisions through its Administrative Regulation No. PFMA_01/MOF/02 2010 to govern

the operation of Transitory Accounts. I have examined this Administrative Regulation

vis-à-vis the operation of the transitory accounts and made the following observations.

Regulation 1(B), MOF Administrative Regulation, stipulates “separate Transitory

Revenue Account(s) shall be opened by the MOF in the name of the CBL for revenue

generating instruments (e.g. such as passports, vehicle license plates and work permits)



and related collection governed by MOUs, as well as for general revenue collection

purposes. All openings of transitory accounts by the MOF shall be notified by the MOF

to the CBL at the time of the account opening”. This provision appears to run contrary

to the dictates of Section 39(1b) of the CBL enabling enactment of March 1999, which

stipulates that the CBL shall be the banker, fiscal agent and advisor to the GOL on

monetary and financial matters and shall be the depository of all governments funds,

provided that the government may, with the prior advice and consent of the CBL,

operate working balances and generally use the services of financial institutions as may

be designated by the CBL from time to time”.

229. Ordinary reading of the CBL enactment implies that it is not expected that the MOF

should open transitory accounts and notify the CBL thereof. Instead, consistent with the

statutory roles of the CBL as the banker, fiscal agent and advisor to the GOL on

monetary and financial matters, and the requirement that generally the GOL may use

services of financial institutions based on the advice of the CBL, it may be rightly

inferred that the MOF having realized the need to open a transitory account or having

received a request from ministries/agencies to that effect, shall request the CBL to open

the transitory account. The distinction being drawn here may be minute but the effect

of the change being suggested is quite huge, as the authority for the selection of the

financial institution to operate the transitory account with is statutorily vested in the

CBL, and the CBL having opened transitory accounts, would monitor and control them.

My review did not indicate that the CBL have knowledge of all transitory accounts being

used to channel GOL collections into the CF. As a result, the CBL did not monitor and

control the accounts.

230. Additionally, under Regulation 6, MOF Administrative Regulation, prohibition is placed

on withdrawals from transitory accounts “except for duly authorized internal debits on

account of service fees by the Commercial Bank and contractual pre-financing cost as

specified and expressly authorized in an appropriate Memorandum of Understanding

entered into between and among the MOF, the Commercial Banks and coordinating

ministry or agency, as attested by the CBL”. Again, this regulatory provision runs

counter to the dictates of Regulations B.6 (1) and B.5 (a, b) of the PFM Regulations.

Regulation B.6 (1) stipulates that payment into the CF is acknowledged when Treasury

Counterfoil Receipt/Flag Receipt is issued for the payment. Regulation B.5(a, b) also

stipulates that “no amount shall be withdrawn from the Consolidated Fund except:

a) To meet Expenditures that is charged on that Fund by the Constitution of the

Republic of Liberia or by an Act of the Legislature; or

b) Where the issue of those monies has been authorized by:

• An Appropriation Act with a corresponding warrant from the President;

• The amount does not exceed the amount authorized by the appropriation, or

• A supplementary estimate approved by resolution of the Legislature passed for

the purpose;

• An Act of the Legislature; or



• Rules or regulations made under an Act of the Legislature in respect of trust

moneys paid into the Consolidated Fund.

231. It is evident from the above quoted regulatory provision that the existing arrangement

whereby “duly authorized internal debits on account of service fees by the Commercial

Bank and contractual pre-financing cost as specified and expressly authorized in an

appropriate Memorandum of Understanding entered into between and among the MOF,

the Commercial Banks and coordinating ministries or agencies, as attested by the CBL”,

are not backed by the extant regulatory framework. Payment may be made for services

rendered by banks, vehicle number plates and printing works undertaken, but such

payments should be in consonance with the extant regulatory framework. It has been

observed that the payment for these services have also posed inherent risk to

monitoring and reconciliation of GOL collections with lodgements into the CF. This issue

is expatiated on in subsequent observation.

232. Additionally, under Regulation 3, MOF Administrative Regulation on transitory accounts,

it is provided that “all funds collected through the Transitory Revenue Accounts on a

certain business day shall be swept into the General Revenue Account at the CBL on the

next clearing day. I sought evidence from the CBL, Comptroller and Accountant-

General, Ministries of Transport, Foreign Affairs, Planning and Economic Affairs as well

as Labour, to obtain assurance that this provision is being adhered to. However, no

such evidence was forthcoming from these institutions and I could therefore not vouch

that transfer of GOL collections into the CF from the transitory accounts are being

effected as originally intended.

233. Furthermore, under Regulation 8, MOF Administrative Regulation on transitory

accounts, the commercial banks with which transitory accounts are being run, are

required to provide the MOF as well as the ministries/agencies from which the

collections originate, a daily advice indicating daily lodgements into the transitory

accounts and remittances made as well as a detailed report including bank statements

on total collections and remittance for the week period of Monday to Saturday. Again, I

sought evidence from CBL, Comptroller and Accountant-General, Ministries of Transport,

Foreign Affairs, Planning and Economic Affairs as well as Labour, to obtain assurance

that this reporting requirement is being done, but no evidence was provided by the

institutions to that effect.

Risk

234. A situation where the CBL does not know all transitory accounts being run to channel

GOL collections into the CF does not augur well for the effective monitoring and control

of the CF, of which the CBL is the custodian. The implication of this omission is that

assurance is denied that all collections lodged in the transitory accounts are transferred

into the CF and also funds held in the transitory accounts are not kept longer than as

stipulated under the extant regulatory framework.

235. Also the contractual arrangements entered into by MOF under MOUs with other parties,

posed significant risk to accountability for all GOL collections. This is because, by



application of the MOUs, funds supposedly paid into the CF are deducted from before

lodgement into the Fund. As what is paid into the CF is not what accrues to the CF,

these arrangements provide unfettered opportunities for abuse of GOL collections.

Recommendation

236. Comptroller and Accountant General should channel all requests for opening of

transitory accounts to the CBL to open those accounts.

237. Both Comptroller and Accountant-General and CBL should maintain up-to-date records

on transitory accounts and these accounts should constantly be monitored, to ensure

completeness and timeliness of transfers into the CF.

238. Comptroller and Accountant General in collaboration with CBL should ensure that

commercial banks with which transitory accounts are being run submit:

i. Daily advice to the CBL, MOF and affected ministries/agencies originating on

daily collections and remittances made into the CF.

ii. Weekly detailed report on collections and remittances made into the CF to the

CBL, MOF and affected ministry/agency.

239. The effects of the application of the MOUs entered into by MOF with other parties

should be re-examined with the view to amend those arrangements. (A more detailed

examination of the effects of applying the MOUs is submitted hereunder).

240. No response was provided by the Minister of Finance on the above findings.

Effects of Application Of MOUs Entered Into by MOF With Other Parties

Observation

241. As at the time of compiling these observations, the MOF had entered into the three

MOUs listed below:

i. MOU with EcoBank (Liberia) Limited and Ministry of Transport, involving the pre-

financing of the acquisition of assorted vehicle license plates, revenue stickers

and county stickers by Monrovia Development and Management Corporation

(MDMC).

ii. MOU with Liberia Bank for Development and Investment (LBDI) and Ministry of

Labour, involving the pre-financing and production of Regular, and Gratis, Work

Permits by Universal Press Corporation of Liberia (UPC).

iii. MOU with LBDI and Bureau of Immigration and Naturalization (BIN), involving

the pre-financing and production of Resident, Re-entry, and ECOWAS Citizens

resident, Permits by Universal Press Corporation of Liberia (UPC).



242. The arrangements under the three MOUs follow the same fashion. Under the MOF,

Ecobank and MOT MOU, pre-financed specified quantum of Assorted License Plates,

Revenue, and County, Stickers obtained by GOL under contract entered into with

MDMC, are issued by Ecobank to applicants upon presentation of relevant

documentation, including GOL Treasury/Flag Receipt. Ecobank had pre-financed the

production of the license plates and stickers and therefore the stocks produced are

being held by the bank, until the loan it granted to MDMC for the stocks production is

liquidated.

243. Thus, for every fee received by Ecobank at its Teller Window at MOT, GOL receives 60

percent thereof, whilst 40 percent goes to MDMC. The GOL portion of the 60 percent of

the fees paid further suffers USD1.00 deduction for each license number plate issued.

Another complication contained in the MOU stipulates as follows: “Given that a certain

quantity of license plates have been paid for into the Consolidated Revenue Account

and that the said certain plates have not yet been released because their release is

pending the consummation of this MOU and the Transitory Accounts regulation, it is

herein agreed that the payment for said License Plates and Stickers shall be made

through the deduction of 25% from each day collection and it shall affect the GOL 60%

share of daily revenue generated as of the effective date of this agreement until the

audited transition amount due the supplier is fully paid. This payment shall commence

upon receipt of a confirmation letter from the Minister of Finance of the total revenue

already received in the Consolidated Revenue Account from January 2010 up to the

opening of the Teller window at the MOT. Bank service charges under the transition

arrangement for the quantity of License Plates and Stickers shall commence at the

same time – i.e. receipt of confirmation letter and shall be deducted from the GOL share

of revenue at the rate of US$0.50 per plate in sixteen equal instalments”.

244. The remaining two MOUs have the same hallmarks as that of Ecobank, MOF and MOT

MOU, expatiated on above. In my view, the provisions in the MOUs are so elaborate

that they expose GOL collections to risks. This is because arrangements that are not

simple to understand could provide opportunities for abuse. Eradicating these risks

requires GOL to disassociate itself from arrangements or transactions that should be

undertaken by the private sector. For instance, the provision of vehicle license plates is

a function of private enterprise and therefore GOL should not have gotten involved in

an arrangement whereby vehicles’ owners pay for the license plates to GOL to supply

the plates. The GOL should instead focus on fees it deems appropriate for the provision

of number plates to vehicles’ owners, with the whole of such fees paid being received

into the Consolidated Fund. The existing arrangement for the provision of the license

plates is flout with problems. This is because, by the dictates of the MOUs, funds

supposedly paid into the CF, as acknowledged by issuance of Treasury Counterfoil/Flag

Receipts, are deducted from before lodgement into the Fund. As what is paid into the

CF is not what accrues to the CF, GOL collections cannot be reconciled with lodgements

into the CF, and that is the position that pertains currently.

245. In my view, implementing the idea of ceding the provision of vehicle license plates to

vehicles’ owners from the existing arrangement should not prove difficult, as private



enterprises are waiting in the wings to take advantage of this business. The merits of

this arrangement is that GOL will receive the full amount of fees paid and because of

the competition that will ensue among private enterprises for the production of the

license plates, vehicles’ owners will get their license plates immediately after

registration.

246. As regards the other two MOUs, their ill-effects can also be avoided, if the production of

the Permits and other value books are ceded from the existing arrangements and GOL

handles their production as a separate task. As pertains in other jurisdictions, stocks of

value books, including permits, passports, pre-printed vouchers etc are printed on the

orders of the Comptroller and Accountant-General and these stocks are held by his/her

office. Thus, the value books production is not co-mingled with the payment of fees for

them. This way, fees paid for these value books accrue wholly into the CF, devoid of the

problems of reconciliation, as is associated with the prevailing arrangements.

247. GOL may pursue a number of options in the production of the value books. Under the

provisions of the PPC Act, competitive bidding can be used in the selection of firms to

produce the value books. If GOL cannot pay for the value books immediately after their

production, agreement can be reached with the producing firms for their considerations

to be settled in piecemeal. Another merit of this arrangement is that stocks of value

books produced on the orders of the GOL or Comptroller and Accountant-General can

easily be accounted for, without the complications associated with the existing

arrangements.

Risk

248. As expatiated on above, the existing arrangements as provided for under the extant

MOUs for payment of fees for vehicle license plates, permits, passports etc are replete

with elaborate provisions. As the provisions cannot be easily understood, effective

review by internal review mechanisms within MOF, ministries and agencies that

undertake the collections as well as GAC, is rendered impossible. As a result, GOL

collections meant for the CF would be exposed to significant risks, which is the situation

pertaining currently.

Recommendation

249. GOL should divulge itself from existing arrangements, whereby it provides vehicle

license number plates to vehicles’ owners upon registration. That function should be

ceded to the private sector of Liberia to undertake. GOL should announce this change in

policy and give the private sector some time to set up in the production of the license

plates, before the cessation in the existing arrangements take place.

250. Similarly, production of value books (e.g. permits, passports, pre-numbered payment

vouchers, treasury receipt books etc) should be directly undertaken by GOL, under the

provisions of the PPCC Act. Value book stocks consequently acquired should be held,

distributed and accounted for by the Comptroller and Accountant-General.



251. The extant MOUs should be allowed to run up to a point, where the loans acquired to

finance the acquisition of the license plates and value books are liquidated. After that,

the shift in policy suggested should be implemented.


252. We note your concerns about the methodology currently employed in collecting

and accounting for the funds received under this program. We were concerned about

the separation of funds at source. We were confident that this challenge was mitigated

by the fact that that responsibility was given to the collection agency (financial

institution). We however have observed that the difficulty of reconciling these accounts

go far beyond the elaborateness of the MOU.

253. Key reasons giving rise to this situation include, the timing and punctual availability of

the credit advices, the CBL Accounts Hierarchical Structure, etc. We are working to

ensure that these hurdles are addressed and progress has been made in that respect.

254. The MOF will continue to review the processes and make the requisite adjustments to

reduce the risk to the GOL Cash flows potentials. While we agree that this service is

being handled quite well by third parties, as the GOL Capabilities improve we will

certainly work with the GAC on scaling down the role of third parties in these

transactions.

Duties and Taxes From International Trade

Inordinate delays in payment of GOL share of BIVAC Inspection Fees

Observation

255. Article 6.1 of the GOL and BIVAC contract signed on September 10, 2004, requires that

“the fees shall be paid by the importers to BIVAC at the time of registering a shipment.

Such fees shall be paid into a bank account in Liberia as nominated by BIVAC. The

government share of pre-shipment fees shall be brought to the account at the end of

the calendar month and paid within 10 working days to the GOL”.

256. Despite the dictates of the above quoted agreement, regarding the timeframe within

which BIVAC is required to remit GOL share of fees earned, BIVAC failed to subscribe to

it. From my review of voluminous Flag Receipts of BIVAC payment of GOL portion of

fees earned, I noted that the payments were not made on a timely basis. These delayed

payments included the fees collected from scanning of containers, which is charged at

1% and 2% per 20-footed and 40-footed container respectively.

257. The sum of fees due GOL and subjected to delays before transfer in 2008/9 and

2009/10 were US$297,552.11 and US$702,783.14 respectively. Flag Receipts issued on

payment of the fees to GOL portrayed tax periods and payment dates, a tax period

indicating due date of payment. The delay observed between the due dates of the

payments and actual dates of payment ranged from one (1) to twenty-eight (28) days.



Risk

258. BIVAC delays in remitting GOL’s share of fees earned from its pre-shipment and

destination inspections deny GOL funding for execution of its

activities/programs/projects. In my view, the delays observed, ranging from one to

eight months, are quite significant in that under the contract, the payment to GOL is

required to be effected latest by the tenth day, after the end of a calendar month.

Under Article 6 of the contract between GOL and BIVAC, the delays in the fees transfer

constitute penalty charges payable to GOL. As GOL may rely on borrowing from the

Central Bank or public to finance shortfalls in its finances, the penalty charges may be

considered as opportunity cost and measured as a function of the delayed funds, the

delay involved and CBL average quoted interest rate for the delay period.

Recommendation

259. BIVAC Management should provide substantive justification for the delays in remitting

to GOL, fees earned from its pre-shipment and destination inspections, as stipulated in

the contract.

260. The Enforcement Division, Bureau of Customs and Excise, should determine the penalty

charges associated with the delays that occurred in BIVAC remitting GOL earned fees to

her and levy those charges to BIVAC as a sanction. The penalty charges should be

determined as a function of delayed funds, the delay involved and CBL average quoted

interest rate for the delay period.


261. The BCE acknowledges the recommendation of the GAC and has started to review all

payments for PSI made by BIVAC during the period under review to determine the

delayed fund period to levy the appropriate interest for the delayed payment.

262. The exercise will be completed on or before September 15, 2011 and interest payable

bill issued to BIVAC.

Forward Actions:

263. The monthly payment by BIVAC will be closely monitored to ensure that payments are

made within the allowed payment period as per the contract and that if any delay on

payment occurs, applicable interest payment will be immediately levied on

BIVAC. (Exhibit 3)”.

Under-Assessment of Imports and Non-Recovery of Related Penalties And

Forfeitures

Observation

264. Within the fiscal years 2008/9 and 2009/10, the Post Clearance Audit Unit of Bureau of

Customs and Excise, MOF, reported a number of under-assessments of duties on goods

imported into Liberia, on account of the under-statement of the goods’ CIFs. A Schedule

of the under-assessments obtained by me from the Unit is provided in Annex 3A.



265. The Schedule of Under-assessments disclosed that:

US$

Actual CIF value of goods imported was 17,586,705.40

Duty payable on the goods 4,771,586.63

Declared CIFs on goods imported 11,641,566.20

Duty paid on imported goods 2,977,451.39

Additional assessments required on account of the under-stated CIFs 1,794,135.24

266. Section 1608(c), Revenue Code of Liberia (2000), stipulates “without prejudice to the

last foregoing subsection and to any other provisions of the laws of the Republic of

Liberia, if any person who commits an offence under this Section does so either

knowingly or recklessly, he shall be liable to a penalty of L$200,000 and any goods in

respect of which the document or statement was made or the domestic value thereof,

shall be liable for forfeiture”

267. My objective for undertaking this review is to obtain assurance that the dictates of

Section 1608(c) of the Revenue Code were fully adhered to. My review indicated that

though the Post Clearance Audit Unit duly reported the under-assessments and

consequent additional taxes payable, the requirements of this provision were not fully

met. This is because the penalty of L$ 200,000.00 required by the Revenue Code

provision to be levied on each defaulting importer was not effected. Of the 757

defaulting importers noted, the required penalty was levied on 146. Total required

penalty amounted to L$ 151,400,000.00, but L$ 29,200,000.00 was levied. Also, though

the goods which were the subject matter of the under-assessments are required to be

forfeited, this was not done. No evidence was sighted that consideration was given to

the idea of implementing this requirement. The total CIF value of the goods involved

was US$17,586,705.40. Ref. Annex (3A).

268. My review indicated that, of the additional assessments of US$1,794,135.24 made by

the Post Clearance Audit Unit, US$449,318.53 had since been paid by the affected

importers. Similarly, the penalty levied on the 146 importers, amounting L$

29,200,000.00, L$3,250,000 of that had also been paid. 563 defaulting importers with

outstanding duties of US$1,243,887.58 and L$23,777,524.15, I noted, had been

referred to Ministry of Justice for prosecution and recovery by the Ministry of Finance.

Risk

269. The fact that the BCE Post Clearance Audit Unit detected and reported the under-

assessments and consequent additional taxes payable were pursued provides somewhat

assurance that the internal review mechanisms within BCE are working. What is not re-

assuring is the fact that not all defaulting importers were levied with penalty. This

omission portrayed BCE Management’s non-resolve to implement in all situations, the

requirements of extant regulatory framework under which the BCE operates The non-

enforcement of these requirements takes away the effect of deterrence on the public,

which comes with the application of the requirements.



Recommendation

270. Management of BCE should provide substantive justification for its failure to:

i. Impose penalty on all defaulting importers, who under-declared their respective

CIFs or goods imported;

ii. Enforce payment of all additional assessments made by the Post Clearance Audit

Unit; and

iii. Enforce forfeiture of under-declared goods.

271. BCE Management should be resolute in applying the requirements of its regulatory

framework in situation where violations have taken place, without fear or favour. This is

because, it is only by strict adherence to the dictates of the BCE regulatory framework

that the deterrent effect would impact the taxpaying public and thus ensure the

integrity of taxes collected by BCE.


272. BCE substantive justification are as follows:

i. Penalty is imposed in line with Sections 1608 c & d of the revenue code when a false

declaration which is a customs offence has been committed. Customs imposed

penalty on all such declaration during the period under review as the audit

observation has rightly noted. The value determine for Customs purposes is clearly

defined in Section 1705(a) of the Revenue Code of 2000, Value Based on Normal

price. Section 1705 a (1) states: The value of any imported goods shall be taken to

be the normal price, that is to say, the price which they would fetch at the time

referred to in Subparagraph (2)(D) of this Section on a sale in the open market

between a buyer and a seller independent of each other. The importers declare his

transaction value for his commodities to Customs. However, as per the valuation

rule, for Customs purpose the market value instead of the Importer transaction value

should be the basis for Customs valuation.

ii. Therefore, where the BIVAC CRF valuation is higher than the declared importer

transaction value (specifically for destination inspection), Customs issues a short

payment bill for the additional taxes to be paid as per Customs Valuation. No penalty

is imposed because the importer has not made any false declaration to Customs as

he provided his transaction value for his goods.

iii. Customs does carry out several enforcement actions on additional assessments made

by the Post Clearance Audit Unit which includes: 1) Distribution of bills; 2) Two

sequential reminder letters where no payment is made subsequent to the issuance of

the bill; 3) Stop order issued to all ports of entry denying the delinquent importer for

further clearing goods from Customs until outstanding payments are made (see

attached sample for review - Exhibit # 5); 4) Transfer of all overdue cases that all



enforcement has failed to yield result to the Ministry of Justice for prosecution and

recovery of debt (Exhibit # 6)

iv. Customs does enforce forfeiture of undeclared and excess goods. These goods are

seized during the time of the inspection and transferred to the Customs Warehouse

at the Free Port of Monrovia. It remains in Customs Custody until all taxes and

penalties outstanding have been collected. (Verification can be conducted at the

Warehouse based at the Free Port Customs Collectorate)

273. The BCE Management is firm and resolute in applying penalty for Customs offences.

But where no offence has been committed by any importer, it will be unfair to impose a

penalty in such a case and in the fairness of tax administration, the BCE cannot impose

penalty on importers.

Forward Actions:

274. The DoR Management having recognized that the Customs valuation method is no

longer in line with WTO GATT Valuation System and International valuation method,

has proposed the change of the Customs valuation system in the proposed Amended

Customs Act of 2011 soon to be submitted to the National Legislature. The Valuation

system to be used is the General Agreement on Tariff and Trade (GATT) which focuses

on the transaction value. (Exhibit 5 Bureau of Customs and Excise

275. BIVAC has a contract with GoL to render pre-shipment inspection services to include

providing confirmation of value, classification and duties and taxes to be paid on all

goods not exempted when imported into Liberia. When BIVAC issues a CRF prior to the

goods being imported into Liberia, Customs accepts either the value provided by BIVAC

or a higher value. BIVAC CRFs that resulted into the additional assessments of

taxes was not issued at the time the declarations were made to Customs because

the importers did not adhere to the Pre-shipment Inspection requirement, for which

they were penalised. Additionally, the CIF value is not payable to GoL rather is the

basis upon which GoL levies the applicable rate to determine the taxes to be paid.

BIVAC CRF provided Customs the acceptable market value of the goods declared to

Customs by the importer at their transaction value. Thus since the market value was

higher than the declared value of the importer, Customs accepted BIVAC appraised

value and raised additional tax bills for the importers.

Forward Actions:

276. The Ministry is working out modalities to ensure that BIVAC issues the CRF report for DI

consignments prior to their being released from Customs control to ensure that the final

acceptable value for Customs purpose is provided prior to the goods being released

from Customs control since their contract requires them to provide advice on the

acceptable value for Customs Purpose. (Exhibit).




277. After the issuance of the Final Draft Auditor General's Report on the Fiscal Outturns for

2008/9 and 2009/10, the Management of BCE provided additional documentation to

support its claim that:

i. The 146 tax defaulters who were levied with penalty did pay their

respective penalty.

ii. Of the 757 tax defaulters, the 611 defaulters who were not levied with

penalty did not suffer that penalty because there was no justification for

that.

iii. BCE Management is resolute in applying the dictates of the provisions of

the Revenue Code of Liberia.

278. Contrary to the above BCE Management assertions, my review of the additional

documentation indicated that there were situations where the Post Audit Unit observed

"excess" in its review, implying higher quantities of imports than that assessed for

determination of the CIF values, and yet no penalty was levied on the defaulting

importers. Ref. Annex 3B. The "excess" was noted in 37 instances out of 400 defaulters

evaluated. Similarly, of the 400 defaulters examined, 16 "omission of duties" were

observed. By "omission of duties" is meant that required duties as they relate to

defaulting importers were not levied by BCE. Ref. Annex 3C.

279. I consider non-levying of penalty on these "excess" and "omission of duties" as very

significant risk impacting the integrity of revenue assessed and collected by the BCE. I

have thus instructed the Forensic Audit Department of GAC to conduct thorough

investigation into each of the cases of the defaulting importers, determining the

justification for non-levying of duties, penalty, "excesses" and "omission of duties" and

payment of related penalty.

Validation of Fiscal Outturns’ Representations on Duties and Taxes on International

Trade

Observation

280. The 2008/9 and 2009/10 Fiscal Outturn Reports indicated that US$88.546 million and

US$91.835 million respectively were derived from Duties and Taxes from International

Trade. I called for documentation from the BCE Commissioner, with the view to

validating the 2008/9 and 2009/10 Fiscal Outturn Reports’ representation on the Duties

and Taxes from International Trade. Despite persistent requests addressed to the

Commissioner, BCE, I could only avail myself of limited documentation on the

operations of the BCE for the fiscal periods under review. This is because I was not

allowed to determine the population of documentation on all aspects of BCE operations

for the period under review and was only allowed to have documents, which in the view

of BCE Management, were not being used.



281. The documentation obtained by me for review could therefore not be representative

(i.e. random sample) of the documentation generated by the BCE from its operations in

the fiscal years 2008/9 and 2009/10. As a result, the outcome of my review could not

be relied on to validate the 2008/9 and 2009/10 Fiscal Outturn Reports’ representations

on Duties and Taxes from International Trade. In view of the fact that the non provision

of required documentation limited the scope of my review, I disclaimed opinion on the

2008/9 and 2009/10 Fiscal Outturn Reports’ representation on Duties and Taxes from

International Trade.

Risk

282. BCE failure to submit all documentation required by me for purposes of the audit

contravened Section 53.4 of the 1972 Executive Law of Liberia, which stipulates “the

Auditor General or his designee is entitled to free access at all times to all files,

documents, and other records to the accounts of every government agency and

government organization, and he is also entitled to require and receive from officials

and employees such information as he may deem necessary for the proper performance

of his duties. The Auditor General may station in any government agency or

government organization any person employed by General Auditing Office to exercise

more effectively the audit functions set forth above”. The non-submission of the BCE

documentation created uncertainty as regards the Fiscal Outturns’ representation on

Duties and Taxes from International Trade.

Recommendation

283. BCE Management should provide substantive justification for its failure to provide all

documentation requested by me, for purposes of the audit.

284. BCE Management should henceforth, ensure due compliance with the dictates of

Section 53.4 of the 1972 Executive Law of Liberia.

285. No response was provided by the Minister of Finance on the above findings.

Fees From Real Property

Non-Maintenance of Databases on Real Properties in Liberia

Observation

286. In response to my request, the RETD Management submitted a data on Real Property it

has impliedly been referencing for purpose of its assessment on the Real Property in

Liberia. This data is referred to under Section 2003, Revenue Code of Liberia, 2000, as

Real Property Assessment Record. The Revenue Code provision demands that, at the

minimum, the Real Property Assessment Record should provide for location, area, lot

number designation, any use classification, date of inspection of Real Property for the

purpose of determining its market value, its assessed value and annual tax assessed

thereon.

287. Additionally, Sections 2000(c) of the Revenue Code of Liberia recognizes various

category of RP - i.e. unimproved parcel of land (vacant land), improved parcel of land



(building), unimproved land within city and town limits, unimproved land outside of city,

town, municipal or commonwealth districts. The Revenue Code provision also made

distinction in use classification – i.e. business or commercial use, industrial use and

residential use, farm use outside of urban areas, farm use in urban areas as well as

buildings and other improvements situated on public land. It is thus ordinarily expected

that, for the purpose of RETD ensuring due assessment and payment of all taxes on RP

in Liberia, the Real Property Assessment Record required to be maintained by the RETD

under Section 2003 of the Code, should comprise databases of all categories of RP

subject to tax.

288. The data furnished to me by the RETD did not have all the requirements specified in the

extant law. In my view, the data furnished was essentially records of tax assessment

and payments made by RP owners in the fiscal years 2008/9 and 2009/10. The Head of

RETD acknowledged this view but indicated that the Division was in the process of

establishing the databases on the RP in Liberia, though it has challenges such as

resource constraints, including inadequate personnel.

Risk

289. The non-maintenance of the Real Property Assessment Record or databases on RP

made it impossible to determine the extent to which all RP subject to tax were levied in

the fiscal years 2008/9 and 2009/10. This omission thus denied assurance that all RP in

Liberia that qualify to be assessed for tax were assessed in the periods under

consideration. The implication is that GOL was thus deprived of required tax revenue in

the fiscal year 2008/9 and 2009/10.

Recommendation

290. Because of the enormous potential tax revenue that can be derived from RP in Liberia,

the Minister of Finance should consider as urgent, the establishment of Real Property

Assessment Record or databases for all categories of RP in Liberia for tax purposes. As

the creation of such databases may require some funding, consideration may be given

to the idea of establishing the databases in piecemeal on county by county basis.

291. Once the databases are established, the Deputy Minister of Revenue/Ministry of Finance

and the Commissioner of Bureau of Internal Revenue should exercise close managerial

control over RETD, to ensure the periodic update of the databases and also the use of

the databases for due assessment of tax on all RP in Liberia.

Minister of Finance Response 292. We acknowledge that there are some problems with obtaining information on older

assessment records (2008/09 and older). However, our records for FY 2009/10 for most

part provides for information on property location, classification, date of

inspection/assessment, assessed value, annual tax, lot number, etc. With respect to the

property lot number, the Ministry of Finance is not the entity granting these numbers.

The number is obtained from the copy of the property’s deed. In the case where the lot

number is available, it is recorded on the taxpayer’s property schedule. However, in

many cases, the deeds do not have assigned lot number. When this is the case, the lot



number is not recorded on the property schedule. In other cases, property deeds are

not available and in our wisdom, the collection of taxes is the substance of our work. So

to facilitate the collection of taxes we produce real estate bills based on other evidences

such as a notary statement of ownership or field confirmation. The lot number will also

not be recorded in such instances.

293. In addition to the information above, the Division submitted to your team, on cd, soft

copy of the Real Estate Tax Database on May 24, 2011. (We are enclosing in this

submission another soft copy of the database and we are willing to bear the cost of

printing hard copy of our documents if that is your preference). The Database

template contains the following information: Taxpayer Name, Taxpayer Address,

Location of Property, Description of Property, Classification, Zone, Number of years,

Declaration or Assessed value, Total Annual Tax, Penalty, Interest , Total Tax Due,

Date, and Period covered. We are in the process of enhancing the database to include

the property lot number as recommended.

294. We like to point to the fact that the first batch of records that you signed for on May 25,

2011 does not constitute all of our records or a complete sample of the records that are

kept by the Division. The records kept by the Division include assessment records and

copies of return bills. Copies of return bills are kept for properties whose assessments

were conducted in prior period but payment made in the current period.

295. The records you sign for include copy of the return bills and we were of the opinion as

indicated by you, that you would return for another batch of records. However, if you

needed additional records, we think it would have been prudent during the course of

your audit to bring this to our attention since we were constantly in contact. This is

because at the start of your audit, we gave you a sample of a taxpayer property

appraisal record, copies of Declaration Forms, Property Schedule, etc., so that you will

know what to expect from our records presented to you.

296. However, we have begun updating our records to ensure that copies of return bills are

merged with the appropriate assessment records in order to have a more efficient

record system.

297. Please note that we maintain assessment records on real properties and the records are

available for your review. We continue to update and improve these records in order to

improve our efficiency.

298. We agree with you on this recommendation as our current Real Estate Tax Database,

which is being updated on regular basis as new assessment and declarations are

conducted, covers for most part Monrovia and its environs. Updating our information on

properties in the whole country is vital in achieving our objectives. We have

underscored this need for the expansion of our database by submitting a proposal for

mobile assessment team to conduct assessments in various counties for approval. This

is to jump-start the project of developing a nation-wide real property database.



299. In addition to this, the Real Estate Tax Module of the SIGTAS (Standard Integrated

Government Tax Administration System) is scheduled to be implemented in the last

quarter of the current fiscal year. The SIGTAS is currently being implemented according

to phases. This process has begun for the Large & Medium Tax payers Divisions.

300. This is noted. We have good managerial control over our database as it is password

protected and only authorized staffs have access to our database. However, there is

always room for improvement and we work continuously to improve our managerial

control.

Auditor General’s Position 301. The documentation I received from the Director of RETD, in response to the above

findings, which he refers to as “Data Base”, does not provide information on all the

properties assessed by the division. Analysis of the documentation submitted reveals

that it is a collection of bill issued records (i.e. not a Data Base), which provide

information on some of the bills issued by the division. This documentation does not

meet the minimum requirements of Section 2003, Revenue Code of Liberia, 2000.

302. On account of the above, I therefore maintain my recommendation presented above.

Non-Compliance with Provisions of the Revenue Code in the Assessment Of Real

Property by RETD

Observation

303. To provide assurance that records contained in the Real Property Assessment Record

Books are appropriate for tax assessment purposes, Section 2001(b) of the Revenue

Code requires that “each parcel of land so subject to assessment and taxation shall be

inspected and its assessed value determined on the basis of the market value as at the

date of the inspection. Such assessed value shall be carried on the real property

assessment records books kept by the Minister for a period of five years from the date

such valuation becomes operative in accordance with the code” Section 2001 further

makes provision on RP assessment in situations where there are previously determined

market values, prior assessed values based on cost of construction, land not previously

assessed and related prior taxes to be assessed as well as re-assessment of five year

term assessed value.

304. Furthermore, Section 2004 of the Revenue Code stipulates that every person who has

acquired title to a RP subject to assessment and taxation shall, within 30 days after the

acquisition, “file a correct and specific schedule of all such real property acquired by

him. The schedule shall contain a complete description of the real property, including its

location, area lot number, designation, if any use classification and the actual

consideration paid on its acquisition”.

305. My examination did not sight evidence of compliance by the RETD with the above

provisions. There were no indications that RPs were assessed and their assessed values

informed tax assessments made on the related RPs. The five-year term provision which



demands that RPs, once assessed for value, those values should be kept on the Real

Property Assessment Record Books and inform assessments made on the related RPs

was neither evident. The requirement that after the expiration of the five-year term,

there should be re-assessment of RPs values for purposes of taxation was neither

adhered to. Owners of RPs did not file prescribed schedule providing all relevant details

of their properties after acquisition, as stipulated.

306. Also my review of RETD Bill Register Ledger showed that 4,871 bills were issued in

2009 and part of 2010. However, I received only 1,264 bills for review, the bulk of

which were issued in 2008. Of the number received, it was noted that 1,244 bills issued

with total tax payable of US$367,638.07 and L$14,545.50 did not contain such

documentation as are required for effective assessment of the properties involved. For

instance, the requirement that declaration of properties should be made by either

“Certified Architectural Firm or self” for commercial/ industrial and residential properties

respectively, attach photos of the properties, present property schedule and give the

total square foot and dimension of such property, in the case of residential properties,

were not made available for my review.

307. Additionally, it was noted that properties assessed were not based on a specific

assortment or grouping so as to easily identify and locate them. For instance, there was

no documentation provided to indicate that the areas in which the assessed properties

were located had been block mapped and divided into zones. Therefore, it was not

possible to determine whether taxable properties were easily identifiable in terms of

locating and tracing properties owners for registration or payment of tax in the case of

non-compliance by taxpayers. This, to me, was an indication that the Ministry/ Division

could not identify and locate real properties in various areas.

Risk

308. RETD Management failure to adhere to the dictates of Section 2001 of the Revenue

Code as well as Management non-maintenance of the Real Property Assessment Record

Books meant that RPs subject to assessment and taxation, which were unknown to the

Division, may not be assessed for taxation. Even in situations where the existence of

RPs were known to the RETD, because of Management failure to assess their values,

GOL might not derive required taxes, as improvements in RPs may not be taken into

consideration in the assessments. Again, the absence of documentation supporting bills

raised by the RETD during the periods under review denied assurance that assessments

made were as stipulated by the extant regulatory framework.

Recommendation

309. RETD Management should provide substantive justification for its failure to maintain

documentation on assessments on RP made in 2008/9 and 2009/10 fiscal years.

310. RETD Management should again provide substantive justification for not inspecting and

assessing RP value determined on the basis of the market value and keeping such

assessed value on Real Property Assessment Records Books for a period of five years,

as stipulated by Section 2001 of the Revenue Code.



311. RETD Management should provide documentation on its assessments made on RPs

during the fiscal years 2008/9 and 2009/10. The documentation on RPs assessments

must be attached to their respective Flag Receipts issued and kept in secured

depository, to be retrieved when required.

312. RETD Management should draw up a program which will enable the RETD to inspect

and assess RPs value in Liberia, determined on the basis of market value and keeping

such assessed value on Real Property Assessment Records Books for the stipulated

period of five years, and thereafter re-assessing the RPs value again, as stipulated by

Section 2001 of the Revenue Code. The program drawn must identify funding

requirement and other resources required to undertake the exercise, so that, where

need be, GOL may seek the necessary funding for its execution.

Minister of Finance Response 313. We do keep our records on our books in keeping with the law and all real property

assessments are based on the current market value of the property. We work

continuously to improve our record keeping system.

314. The failure of taxpayer to file a schedule of their property was a major problem in

FY2008/09 and previous years. This problem however, is being addressed. Since the

2nd Quarter of FY 2009/10, Property Schedule Forms have been made available to

taxpayers to file their properties and taxpayers are complying by completing these

forms. The Property Schedule Form include the following information: List of

Property(ies) owned, Owner’s name, Owner’s Address, Location of Property(ies),

Description of Property(ies), Area lot number, Classification of Property (ies),

Appraised Value(s), etc. A larger part of our records for FY 2009/10 have property

schedules attached.

315. We do not agree with this observation. Our records are available at the Division to show

that all real estate tax bills are produced based on assessment conducted whether by

independent firms or self-declaration or by the Real Estate Tax Division. We continue to

update all of our records to ensure that all real property owners file schedule of their

property (ies).

316. The records received by your team do not represent all of the records for the period

under review. We do have assessment records with the aforementioned documents.

The presentation of property photos and certified declaration and/or self-declaration

only became a requirement after the publication of Administrative Regulation

No.7.2006/MOF/R/17 September 2009 in October 2009. The Real Estate Tax Division

carried out awareness on these new procedures for most part of November and

December 2009 and full implementation of the Regulation started January 2010. For

records prior to this period, October 2009, the indicated documentations were not a

requirement. So if the bills review fall within the period from October 2009 and

backward, certified declaration, self-declaration, and photos will not be attached.



317. Locating a specific property in Liberia is relatively difficult because of the lack of a

national postal address system. However, for the purpose of taxation, the Real Estate

Tax Division has grouped properties into tax zones and coded these properties based on

counties. The Division has divided the county of Montserrado into 19 tax zones and has

begun block-mapping of various zones. Zone 3 and Zone 7 (Bushrod Island and Sinkor)

block-mapping exercise is now ongoing aimed at further dividing each zone into specific

block for easier reference. Other counties are enumerated on the basis of codes. While

the tax zones are not mentioned on the older bills, the zones are indicated on the new

real estate tax bill. What is indicated on the old bills is the location of the property but

the zone is not specifically indicated. We have attached a copy of Montserrado tax map

showing various tax zones. See Exhibit 1.

318. Our taxpayer records include assessment records for those properties assessed and are

available for review. Though our records are not 100% complete, we continuously strive

to update and improve our records.

319. Our records are kept on our books in keeping with the law. Properties assessed values

are based on the current market value. Property assessment is carried on the books of

the Division for even more than the 5 years period.

320. We have assessment records on real properties available for review. Please note that

with the automation of our processes, confirmation of a tax payment is made from the

Tax Administration System (TAS). Most of our records have the attached Flag Receipts

and for those records without the attached receipts, we will work towards obtaining

copies of these receipts to further improve our record keeping. We will formulate an

Administrative Circular to enhance compliance to this recommendation.

321. This is the essence of the Real Estate Tax Division’s work and is spelled out in our work

plan which is produced each fiscal year. We continue to face funding challenges in

implementing our work. Notwithstanding this constraint, we have been able to conduct

some assessment. Administrative Regulation No.7.2006/MOF/R/17 September 2009

published in October 2009 seek to help us with assessment of properties by allowing

property owners the option of submitting independent appraisal of their property

for approval for the purpose of paying their taxes.

Auditor General’s Position 322. Instead of providing documentation on its assessments made on RPs, as required by

the audit, RTD management in response to the above findings only provided additional

taxpayers’ files. The documentation therefore does not address the audit findings. I

thus maintain my recommendation as presented above.

Penalty and Interest Not Appropriately Charged on Late Payment of Taxes Assessed

Observation

323. Sections 11 and 2002 of the Revenue Code of Liberia (2000) stipulate that penalty and

interest shall be assessed and added to the tax due or to any underpayment thereof if



such tax is not paid from January 1 to July 31 of the year in which it is levied. The

penalty shall be calculated at 5 percent per month for each month or part of a month

elapsing after July 31 that remains unpaid but not to exceed 25% in the aggregate. The

interest rate shall be the market rate as published by the Central Bank of Liberia.

324. Contrary to the requirements stated above, I observed that of the 1,264 bills reviewed

for 2008/9 fiscal year, 843 bills with the total tax of US$253,462.67 were issued to

taxpayers, who failed to pay their taxes within the specified period. I noted that

penalty and interest charged for late payments were not in keeping with the

requirements stated above. In some instances, penalty and interest were calculated

below or above the required rate. From these bills, for 2008/9 fiscal year, penalty and

interest charged by the RETD was US$18,820.00 as opposed to US$86,012.00 required

under the above quoted provisions. GOL thus forfeited US$67,192.00. This loss is net of

US$1,016.17 which was over-assessed penalty and interest billed to taxpayers.

325. I was unable to assess the timeliness of payment of tax assessed on RP in the fiscal

year 2009/10 because the documentation requested for that purpose was not provided.

Risk

326. Non- compliance with the requirements of Sections 11 & 2002 of the Revenue Code of

Liberia might create a situation where taxpayers would not be obliged to settle their tax

obligations.

Recommendation

327. The Principal Director of RETD, Francis S. Dopoh, II, should ensure that the appropriate

penalty and interest are charged to properties owners, when they effect payment after

the due date, as required under Sections 11 & 2002 of the Revenue Code of Liberia

(2000).

328. The Principal Director of RETD should re-compute penalty and interest payable by RP

owners in the fiscal years 2008/9 and 2009/10, ensuring that all penalty and interest

levied for the fiscal years were as required by the Revenue Code provisions. Also the

Principal Director should effect refund to RP owners who were over-levied with penalty

and interest, in situations where they did pay, and assess additional tax on those who

were under-levied.

329. In the same vein, the Principal Director of RETD should be held accountable for non-

levying of penalty and interest on RP owners in fiscal years 2008/9 and 2009/10, which

amounted to US$67,192.00. This amount should be recovered from the RP owners in

question.


330. Noted. These are the procedures (Count 287) followed by the Real Estate Tax Division

in the computation of penalty and interest charged on late payment. We continue to

strive towards improving our systems and minimizing errors.



331. We will be contacting you to obtain the supporting documents for review so as to effect

the necessary corrective measures where applicable.

332. We think this was due to the failure of the GAC team to collect available records. These

records are available at the Division. Please note also that you were presented with

a soft copy of detailed payment records for FY 2009/10. Assessments records for

the same period were also available at the RETD and not collected.

333. For COUNT 291, we agree with the recommendation. The Real Estate Tax Division has

always ensured that the correct penalty and interest are charged in keeping with the

law. We will be contacting you to obtain the supporting documents for review so as to

effect the necessary corrective measures where applicable. Additionally, we will be

contacting you to obtain the supporting documents for review. This will facilitate our

work in identifying these errors mentioned and give effect the appropriate action where

possible.


334. The office of the Auditor General is available to provide any help in implementing the

above recommendation and RETD is thus advised to contact the Commission when

necessary. However, as the RETD could not provide any evidence contrary to those

conveyed in this report, it must implement my recommendation to ensure compliance

with the Revenue Code provisions.

Inadequate Records Maintained on Personnel Files

Observation

335. In as much as the Standing Order for the Civil Service of the Republic of Liberia (1983)

section 1.2.5 requires that personnel records on all Classified Civil Servants throughout

their careers be maintained by the Division of Personnel Records and Research, it is also

prudent for the Ministry, agency, Department or even the section in which an employee

is assigned to retain copy of each personnel file for ease of reference.

336. Based on the RETD Acting Principal Director’s concerns over insufficient human resource

at the RETD, as conveyed in the Division’s 2010 report, I deemed it necessary to review

the backgrounds of personnel manning the Division. This initiative was informed by the

fact that the Division has a huge responsibility of assessing and collecting taxes on RPs

in every part of Liberia. Since I requested personnel files of the Division from May 17,

2011 to date, none of the files has been submitted to me.

337. However, a review of the staff listing of the Division showed that there were 18

personnel assigned to the Division, with responsibility to assess and collect taxes on RPs

across the fifteen counties of Liberia. I could not determine the competencies of the 18

personnel and their effectiveness in operation, as I was not provided the personnel files

requested as well as the Division’s work plans and extent of attainment of these plans

for the periods under review.



Risk

338. The absence of the Division’s personnel files denied assurance that its personnel

possessed the requisite competencies for the Division’s functions. Again, the absence of

the RETD annual work/operational plans and documentation on attainment of these

plans for the fiscal years under review, prevented effective assessment of RETD

performance. As the RETD mandate could impact the development of Liberia, if well

executed, the state of the Division’s operations, as observed, did not provide the

assurance that the RETD was contributing its required quota towards the development

of Liberia.

Recommendation

339. The Principal Director of RETD should maintain personnel records on every employee of

the Division, properly monitor their performance and also undertake periodic appraisal

of their performance.

340. A policy paper should be compiled by the Principal Director of RETD for submission to

the Commissioner of Internal Revenue, detailing various categories of personnel

required by the Division, to effectively discharge its objects. On adoption of the policy

paper, measures be pursued to staff the RETD, as appropriate.

341. The Principal Director of RETD should ensure that annual work/operational plan is

compiled before the commencement of a fiscal year for the Division, and that the

execution of this plan is monitored and reported on, on monthly basis. The operational

plan should be formulated in such a way that, over a five-year cycle, all RPs in Liberia

will have been inspected and assessed for value, for inclusion in the Real Property

Assessment Record Books (i.e. RP database).


342. We note the prudency of maintaining employees’ record. That is why we have a staff

listing profile (which was presented to your team on April 6, 2011) to be able to

adequately assign our staff. The Staff Listing Profile contains on each employee,

essentially, the name, position, and qualification. However we acknowledge your

observation and consider improving our division personnel records with adequate

documentation.

343. We have our staff listing profile which was presented to your team on April 6, 2011. The

Staff listing profile contains staff name, position and qualification. This, we believe,

constitutes sufficient record to be able to assign staff to various activities. Employment

file is kept by the Division of Personnel.

344. We have no record of request made by your team for copy of our work plan. The

Division’s work plan is produced before the beginning of each fiscal year. We shall

forward the records we have to your office.

345. The qualification and position of the staff are listed on the staff listing profile which we

believe is sufficient to assign staff to various activities.



346. No request was made for our work plans. The Division’s work plan is produced for each

fiscal year and is available for review. We are attaching copies of our work plan for FY

2008/09 and FY 2009/10 to our office. Please see Exhibits 2a & 2b.

347. This is noted. The records are maintained by the Division of Personnel as per the Civil

Service Standing Order and we will take this recommendation under consideration

with advice from the Personnel Section.

348. We do carry out regular appraisal of our staff in keeping with MoF policy.

349. We do agree with this recommendation. What we have done is developed a

recruitment plan with terms of reference for various vacancies and submitted to the

Common Services Division of the Department of Revenue (DoR) in consultation with the

Commissioner of Internal Revenue. All of the DoR personnel plans are channelled

through the Common Services Division.

350. This is a good recommendation. We have been developing our operational plan on an

annual basis. Operational/Work Plan for each fiscal period is developed before the

beginning of that period. The current operational plan, for example, is tied in to the DoR

three-year strategic plan covering FY09/10 to FY11/12. The plans are geared towards

ensuring that all those required to pay real estate taxes within the Republic of Liberia

comply with the law including the assessment of taxes.

Auditor General’s Position 351. The document presented by the division in response to the above findings is the Annual

Operational Work Plan for 2008/9 and 2009/10. This document indicates the goal of the

division with its specific strategies and implementing time/date. It does not contain

anything about the division’s staff qualification, competencies and performance. I

therefore maintain my recommendation.

Variance between Tax Collected/Paid and that of the Fiscal Outturn Reports For

2008/9 And 2009/10

Observation

352. It is ordinarily expected that revenue, derived from payment of taxes for a period,

should correspond with that conveyed in the Fiscal Outturn Report for that period. The

fiscal outturn Report should provide disclosure for all representations contained in the

Fiscal Outturn Report, for ease of appreciation of the Report.

353. Contrary to the above requirements, a review of the revenue records of the Data

Capture Revenue Accounts and Reconciliation Section (DCRARS), MOF, indicated that

the Section’s Tax Administration System (TAS) recorded total tax on Real Properties of

US$1,320,809.30 and US$1,865,683.06 for the two fiscal years 2008/9 & 2009/10,

respectively. The Fiscal Outturn Reports however indicated that US$1,340,000 and

US$1,600,000 was collected in the same fiscal years, thus leaving a variance of.

(US$19,190.70) for 2008/2009 and US$265,683.06 for 2009/2010. My review could not



substantiate either the DCRARS or Fiscal Outturn Reports’ revenue performance, as the

RETD could not provide documentation underpinning assessments made on Real

Property during the periods under review. Ordinarily, it is expected that bills raised by

the RETD which determined taxes assessed should underpin all Flag Receipts issued for

tax paid. This documentation, besides the Flag Receipts, for the periods under review,

was not made available for my review.

354. Also, it was observed that the representations on Real Property taxes in the Fiscal

Outturn Reports for 2008/9 and 2009/10 were without disclosures indicating how much

of the taxes reported were derived from land and building separately. In my view, this

annotation is required by users of the Fiscal Outturn Report to make informed decision

on taxes derived from unimproved and improved Real Property.

Risk

355. The non-agreement of Real Property taxes as reported by the DCRARS and respective

Fiscal Outturn denied assurance on the reliability of information conveyed in the Fiscal

Outturn Reports. This omission is very significant, as the Fiscal Outturn Report is a

statutory one from which the performance of the National Budget is assessed by all

stakeholders.

Recommendation 356. As required under Regulation 8, MOF Administrative Regulation No. PFMA-01/MOF/R/02

2010, and Regulation O.28 (1), PFM Regulations, the RETD should on monthly basis,

reconcile its records of collections with the DCRARS, MOF, to obviate the discrepancy

noted in future.

357. The Principal Director of the RETD, Francis S. Dopoh, II, should reconcile RETD

collections in the fiscal years 2008/9 and 2009/10 with the DCRARS, MOF, documenting

the discrepancies ((US$19,190.70) for 2008/2009 and US$265,683.06 for 2009/2010)

observed, and formally reporting the outcome of the investigation to the GAC. .

358. The Principal Director of the RETD should provide substantive justification for the RETD

failure to provide documentation underpinning assessments made on Real Property in

the fiscal years 2008/9 and 2009/10. In addition, the Principal Director should make

available the non-submitted documentation underlying the 2008/9 and 2009/10

assessments made, with their respective Flag Receipts affixed to them.

Minister of Finance Response 359. All Revenues derived correspond with the Fiscal Outturn Report for the period under

review. On account of this observation, our review of the Fiscal Outturn Report,

Revenue Monthly Reports, and the Data Capture Reports has shown no

discrepancy as indicated by your team. As shown in the below table, all the reports

shows that the figures agree. Therefore, we ask that you provide us copy of the Reports

from which you made this observation”.



Source Tax Kind 08/09 09/10 Fiscal Outturn Bldg Land Total 1.25M 0.08M 1.34M 1.27M 0.38M 1.658M Rev. Report Bldg Land Total 1.25M 0.08M 1.34M 1.27M 0.38M 1.658M Data Capture Bldg Land Total 1.25M 0.08M 1.34M 1.27M 0.38M 1.658M GAC Report 1.32M 1.865M

360. It is also important to note that our assessment records are available for review. They

were made available but were not collected by your team during your audit.

361. It is worth to note that in our Fiscal Outturn Report is a summary report of the Ministry

of Finance activities over a fiscal period and does not report detailed tax kind except for

specific issues that may need further explanation. Collection by tax kinds can be

obtained from the Revenue Reports. We shall begin to provide the additional

information as recommended.

362. This is normally done on a monthly basis and we have noticed no discrepancy so far.

We however, would need a copy of the Reports received to see this discrepancy you

have noted as the review our records shows that the collection figures reported are

consistent. (See count 305 above).

363. We have determined no discrepancy from review of the DCARARS Report and the Fiscal

Outturn Report. We would like for you to provide us with the source of your discrepancy

and will proactively collaborate with GAC to resolve this concern. We hope this can be

done before the final report comes out. (See count 306 above).

364. This recommendation is based on an observation that we do not agree with. The RETD

maintains assessment records of properties on our books. These records are available

for review. (See count 307 above).

Auditor General’s Position 365. I provided evidence on the discrepancy observed between the DCARARS Report and the

Fiscal Outturn Report, which amounted to US$19,190.70) for 2008/2009 and

US$265,683.06 for 2009/2010. However, I did not see any evidence from the RETD that

reconciliation was undertaken to substantiate its revenue performance reports in the

two fiscal years. Therefore, my recommendation must be implemented.

Revenue from Motor Vehicles

Maintenance of Databases on Taxpayers by Divisions of MOT

Observation

366. Section 37.3, Chapter 37 of the 1987 Act of the Legislature mandates Ministry of

Transport (MOT) to collect fees, on Motor Vehicle registration and re-registration, for

issuance, and renewal, of Drivers’ License, for registration of used or new vehicles,

garages, auto parts dealers and transport unions registration. For effective

administration of the fees levying, it is ordinarily expected that the Divisions of the MOT



charged with the administration of these fees, would maintain respective databases for

their taxpayers.

367. For the Motor Vehicle Division (MVD), I noted that the Division’s database was

established in 2008/9 fiscal year. There was no evidence that collection of fees for

Motor Vehicle registration was informed by the existing database. This is because there

was no scrutiny of the database in 2009/10 to determine defaulting taxpayers, with the

view to pursuing them for recovery. There was neither indication that the Division’s

database was updated in 2009/10.

368. Currently, the Drivers’ License Division (DLD) is required to issue drivers’ license to, and

renew the license at intervals of three (3) years. I noted that the DLD did not maintain

a database of drivers for the period 2008/9 up to September 2010, by reference to

which the Division assessed level of compliance with payment of the fees.

369. The Land and Rail Division (LRD) neither maintained databases of firms engaged in

dealing in motor vehicles, both used or new, garages, auto parts dealers and transport

unions. The extant regulatory framework requires that annually, these stated taxpayers

should register with the MOT, upon which fees are required to be paid. As a result of

the non-maintenance of the databases, there was no basis for assessing the LRD

performance in revenue generation in the fiscal years 2008/9 and 2009/10.

370. I also noted that though the MOT has an Inspectorate Division, with the mandate to

enforce payment of fees, the inspectorate Division did not have a mechanism in place to

ensure achievement of this objective. This is because for the fiscal years under review,

the Division could not produce for my review, defaulting taxpayers it had compiled and

evidence of efforts it had pursued to enforce compliance.

371. Because of the above deficiencies noted, I could not validate the basis of fees the four

Divisions of MOT claimed to have collected in the fiscal years 2008/9 and 2009/10, as

conveyed in the National Budgets for the respective periods. Total Revenue collected as

indicated in the National Budget of the 2008/9 and 2009/10 stood at US$1,800,000.00

and US$2,600,000.00 respectively.

Risk

372. In the absence of databases on taxpayers being maintained and updated annually by

the four Divisions of the MOT, there was no credible basis on which MOT forecasted

fees to be generated in the fiscal years 2008/9 and 2009/10. There was no assurance

therefore that MOT fees projection for the two fiscal years were valid. The implication is

that personnel of the four Divisions would not be challenged enough in their revenue

generation efforts.

Recommendation

373. Databases of taxpayers eligible to pay fees on motor vehicle registration and re-

registration, drivers’ license renewal, garages, auto-part dealers and transport unions

registration should be established by the respective Divisions of the MOT. The



databases, when established, must inform the level of fees collection in a fiscal year for

the respective Divisions. Also MOT forecast of revenue to be collected in a fiscal year, as

conveyed in the National Budget, should be determined by reference to the databases.

374. The inspectorate Division of MOT must be timely notified in a fiscal year with particulars

of all defaulting taxpayers by the three Divisions of MOT. Also the enforcement in

collaboration with other stakeholders, such as Liberia National Police, should involve and

institute a mechanism to ensure that all defaulting taxpayers are made to honour their

tax obligations.

375. No response was provided by the Minister of Finance on the above finding.

Time it Took Taxpayers to Register Motor Vehicles and Obtain License Plates

Observation

376. I have reviewed procedures followed in effecting registration of motor vehicles, with the

view to obtaining vehicle license plates. The objective of my review is to obtain

assurance that motor vehicles owners do receive their license plates within a reasonable

period, because there is no policy that clearly states the time it takes a taxpayer to

receive his or her license plate from LNP, after the registration process at MOT.

377. To achieve the above objective, I selected at random 38 vehicles registered within the

periods under review, matching their respective dates of application to MOT for

registration against the dates the license number plates were delivered to the motor

vehicles owners. The dates the licensed number plates were handed over to the

respective owners of the vehicles were derived from the database maintained by the

Liberia National Police (LNP).

378. Of the 38 applications for license number plates reviewed, I noted that it took between

one (1) and eight (8) months for the respective vehicle owners to obtain their license

number plates, and on the average, a duration of 3.91 months for each one of the 38

vehicles involved to obtain the license plates. Contrary to this observation, the MVD

Director indicated that it took on the average three to four (3-4) days to obtain the

number plate, after an application for registration.

379. A number of factors were blamed for the delays observed. Motor vehicles owners

opined that bureaucracy was the cause of the delay, whilst others thought that because

the plate manufacturing firm, by virtue of the arrangements it operates under, is

enjoying monopoly and it is not efficient in meeting the demands of the public. The

LNP, on the other hand, opined that sometimes the license plates were finished and

deposited with the LNP, but that their owners failed to come for the plates.

380. It is worth noting that the complications surrounding the accounting for fees paid for

license number plates and other related matters have been dealt with earlier in this

report under paragraphs 143 to 153. In my view, the matters raised in that observation

also impacted the delays observed in the issuance of the license number plate.



Risk

381. Delays in submission of license plates to motor vehicles owners meant that those

registered motor vehicles would be on the roads in Liberia without license number

plates. Such a situation constitutes a serious risk to public security and order, as

deviants could exploit that to carry out anti-social activity, such as armed robbery, hit

and run, in the case of accidents etc. Also owners of those registered vehicles without

license plates are often bothered by personnel of the LNP, who seized their vehicles,

thus disrupting their planned activities.

Recommendation

382. All stakeholders involved in the processing of registered motor vehicle for license plates

(i.e. MOT, MOF, LNP etc) should collaborate with the view to determining factors

contributing to the delays, so as to obviate those procedures.

383. As already recommended in my observation addressed to the Minister of Finance, GOL

should divulge itself from existing arrangements, whereby it provides vehicle license

plates to vehicles’ owners upon registration. That function should be ceded to the

private sector of Liberia to undertake. GOL should announce this change in policy and

give the private sector some time to set up in the production of the license plates,

before the cessation in the existing arrangements take place.


Documentation Underpinning Fees Collected by the MOT Divisions And

Reconciliation of the Fees Collected With MOF and CBL

Observation

385. The Divisions of the MOT, namely MVD, DLD, Land and Rail and Insurance Divisions,

did not provide me the documentation underpinning the fees the Divisions collected

during the fiscal years 2008/9 and 2009/10. Records submitted for my review were

annual reports, ledgers and MOF Flag Receipts, which were not adequate for the

purpose of substantiating the fees obtained by the Divisions.

386. For the effective substantiation of fees collected, the documentation listed hereunder is

required to be maintained by the respective Divisions for purposes of assessment of

fees payable:

MVD and DLD

• MOT bills obtained by drivers.

• Bank payment slips from Ecobank, MOT.

• Official Flag Receipts.

• Validation Section, MOT, check on payment to Ecobank.

• Assignment of numbers to vehicles, cycles and drivers’ cards, according to their

categories.

• Evidence of input of vehicles/cycles/drivers’ license particulars into their

respective databases.



• Print-out and production of vehicles/cycles registration certificates and drivers’

cards.

• Director, Motor Vehicles, MOT, daily check on report for production of license

plates to Ecobank.

Land and Rail Division

Vehicle Dealership

• A formal letter of application addressed to the Minister of Transport requesting

permission to engage in vehicle dealership. Application shall include a copy of the

Article of Incorporation.

• Evidence that the facilities of the proposed dealership had been inspected by the

Minister of Transport and were in compliance with all standard requirements.

• Evidence that the proposed dealer had filed a copy of registration certificate with

the Ministry of Transport;

• Evidence that proposed dealers maintained a monthly escrow account in the

amount US$15,000.00 with a reputable bank in Liberia and that evidence of such

account had been authenticated by the Minister of Transport upon review of

relevant bank documents;

• That funds deposited in the said escrow account shall be used with the

knowledge of the Minister of Transport, and shall be used only to settle any

financial loss that may be sustained by a customer due to the fault of a dealer.

Garages

• Application to the Minister of Transport requesting permission to engage in

services, with copy of partnership, Article of Incorporation or Proprietorship

documents attached to the said application;

• Evidence that the Minister of Transport inspected the facilities of the proposed

garage and thereafter informed the Minister of Commerce and Industry

requesting the registration of the entity and issuance of the business registration

certificate;

• Evidence that the vehicle service garage obtained a certificate of qualification and

eligibility from the Ministry of Transport to operate in Liberia;

• Evidence that vehicle repairs and maintenance entity paid to the Government of

Liberia qualification fees and submit official receipt to the Ministry of Transport;

• Evidence that the garage had fully complied with the Zoning Laws and City

Ordinance in the construction of their garage/workshops.



Transport Unions

• Evidence of letter of application addressed to the Minister of Transport requesting

clearance to establish said service or union; the application shall be accompanied

by an Article of Incorporation;

• Evidence that applicant establishing a transport union must be a Liberian-natural

or naturalized;

• Applicant shall have office for business transaction. The full address of the said

office shall be clearly indicated;

• Applicants shall possess a contract with a reputable garage or own one for the

maintenance or repair purposes;

• Applicant shall maintain an escrow account with a reputable bank in Liberia in the

amount of five thousand United States dollars (US$5,000.00) and present

evidence of the said account to the Minister of Transport;

• That the amount deposited in the said account shall be used with the knowledge

of the Minister of Transport and shall be used only to refund customer in the

event the need arises;

• That successful applicants shall obtain a certificate of eligibility from the Minister

of Transport for the conduct of such business.

387. Of the above documentation, only Flag Receipts were submitted for review. The non-

submission of the documentation listed above denied assurance that fees charged

taxpayers were those required, as stipulated in the extant regulatory framework. The

implication is that GOL might not have derived the required fees for the fiscal years

under review.

388. From my review of fees forecasted by the respective MOT Divisions for the fiscal years

2008/9 and 2009/10, actual fees collected within the said periods and the fees recorded

by the DCRARS, MOF, I observed that no monthly reconciliation of fees generated was

effected by the MOT Divisions and DCRARS, as required under Regulation 8, MOF

Administrative Regulation No. PFMA-01/MOF/R/02 2010 and Regulation O.28 (1), PFM

Regulations. There was neither reconciliation of fees generated by the Divisions with

actual lodgments into the GOL General Revenue Accounts at the CBL. Again, these

omissions denied assurance that the collections obtained by the MOT Divisions were

duly lodged into the GOL General Revenue Accounts.

Risk

389. The non-provision by the MOT Divisions of all documentation underpinning the

collection of fees denied assurance that the fees charged taxpayers during the periods

under review were those required as stipulated in extant regulatory framework. GOL

might not have derived the required revenue for the fiscal years under review.



Additionally, non-conduct of periodic reconciliation between the Divisions and DCRARS,

on one hand, and the Divisions and CBL, on the other, again denied assurance that all

fees obtained in 2008/9 and 2009/10 fiscal years by the Divisions were duly accounted

for. The non-conduct of the periodic reconciliation could also provide unfettered

opportunities for abuse of revenue, as such illegal act might not be known, should they

occur.

Recommendation

390. The Directors of MOT Divisions for Motor Vehicle, Drivers’ License and Land and Rail

and insurance commissioner should provide substantive justification for failing to

maintain all documentations raised in collecting fees in the fiscal years 2008/9 and

2009/10.


and insurance commissioner should ensure that all documentation raised in collecting

fees from Motor Vehicle registration, drivers’ license, garages, auto parts dealerships

and transport unions registration is maintained and attached to their respective Flag

Receipts issued. The documentation must be kept in a secured depository by each

division, for retrieval when necessary.


should ensure that their Divisions’ collections are reconciled monthly with the DCRARS,

MOF, and lodgements into the GOL General Revenue Accounts at the CBL.

393. The Internal Audit Section, MOT, should undertake re-performance of the monthly

reconciliation effected by the MOT Divisions, with the view to ensuring that all

collections are duly lodged at the CBL.

Management’s Response


Operations Undertaken by the Insurance Division of MOT

Observation

395. The Commissioner of Insurance (i.e. the Head of the Insurance Bureau MOT) is

required to enforce the registration of insurance firms operating in Liberia. It is thus

ordinarily expected that the Insurance Bureau should maintain a database of insurance

firms operating in Liberia, by reference to which the Division can determine the extent

of the firms’ compliance in a fiscal year.

396. I sought evidence of the existence of such database by the Insurance Bureau. However,

I noted that no such database was maintained by the Bureau.

397. I also requested submission of all documentation on assessed fees authorized by the

MOF to be paid by insurance firms in the fiscal years 2008/9 and 2009/10. Again, I



noted that no such documentation was maintained by the Division. Thus, for the

periods under review, the Insurance Bureau could not provide information on how much

fees were collected through registration of insurance firms.

398. I sought and obtained data from DCRARS, with the view to determining the fees

collected by the Division. However, the DCRARS data offered no clue on the collections

obtained by the Division in the fiscal years under review. This is because the DCRARS

captured insurance registration collection under an omnibus account called – Others –

into which other collections were also captured.

399. Under the Administrative Regulation PG/ NO. 002/82997 Section 4.1, the Insurance

Bureau is required to ensure that all motor vehicles, bikes and other specified categories

of assets are covered, at the minimum, by third-party insurance. I inquired about the

extent to which these provisions of the Insurance Act/regulation were being enforced.

Again, I did not obtain any assurance that the provisions of the extant regulations were

being enforced by the insurance Bureau under MOT.

400. The Commissioner of Insurance indicated that “we have oversight responsibility in

producing insurance strikers and certificate, and we also enforce the third party motor

vehicle insurance; we also suppose to control the Marine Cargo insurance. It is required

that all imported and exported goods be insured locally, but this is faced with lot of

bottleneck base on the current Insurance Act (Revised Act of 1973). That we are using.

We are not currently billing Insurer for annual payments”.

Risk

401. The non-enforcement of the provisions of the Revised Insurance Act of 1973, Section

5.5 (E), constitutes a significant violation, as by these omissions, the Commissioner of

Insurance is not informed on the regularity of insurance firms’ operations in Liberia, the

extent of compliance with the requirement that all insurance firms must renew their

operating license annually and whether fees authorized to be paid by MOF were duly

accounted for in the periods under review. Another significant risk occasioned by the

omissions of the Insurance Division is that motor vehicles, bikes and other categories of

assets required to be insured are currently left uncovered insurance-wise. The

implication is that currently, those assets are exposed to risks such as accidents and

other unpredictable events without the prospects of retrieving them after the events.

Recommendation

402. The Insurance Commissioner should, as a matter of urgency, compile a ‘way forward

paper’ for submission to the Minister of Transport for onward submission to the Finance

Minister, detailing all factors inhibiting the effective functioning of his/her Division as

well as the insurance industry in Liberia. The paper should also proffer measures

required to address all observed omissions of the MOT insurance Division as well as the

problems besetting the insurance industry in Liberia.

403. Again, the Insurance Commissioner should, as a matter of urgency, compile a database

of all insurance firms operating in Liberia. On the basis of the database, all insurance



firms operations in Liberia should be reviewed, assessed and authorized for re-

registration on annual basis, as required under the Revised Revenue Act of 1973 section

5.5(E)

404. The Insurance Division of MOT, in collaboration with the MOT Inspectorate Division and

LNP, should evolve a mechanism to enforce the requirement of Administrative

Regulation MOT PG/ NO. 002/82997 Section 4.1 , that all motor vehicles, bikes and

other specified assets on the roads in Liberia should have, at a minimum, by a third-

party insurance cover.

405. The Commissioner of Insurance should ensure that his/her Bureau’s collections are

monthly reconciled with the DCRARS, MOF, and lodgments into the GOL General

Revenue Accounts at the CBL, as required under Regulation 8, MOF Administrative

Regulation No. PFMA-01/MOF/R/02 2010, and Regulation O.28(1), PFM Regulations.


Representations Contained in the Fiscal Outturns For 2008/9 And 2009/10 For

Revenue Derived From MOT Operations

Observation

407. My review of all documentation received from the MOT four Divisions on their

generation of revenue within the fiscal year 2008/9 and 2009/10, as well as the

respective data obtained from DCRARS, MOF, indicated that the MOT for the fiscal years

under review, reported total revenue of US$2,151,148.01 and US$2,614,025.76 for

2008/9 and 2009/10 respectively. However the respective Fiscal Outturns reported total

revenue of US$1,800,000.00 and US$2,600,000.00. The DCRARS on the other hand

reported respectively US$2,108,430.72 and US$4,924,789.38.

408. I noted that the representations in the Fiscal Outturn Reports for 2008/9 and 2009/10

were not presented, disclosing the details of revenue on a line by line item. Ordinarily, it

is required that the representations reported in the Fiscal Outturn Report should be as

detailed as the National Budget, to facilitate analysis. This omission resulted in my

inability to compare the Fiscal Outturns’ representations to the outcomes of my review

based on documentation provided by MOT.

Risk

409. The non-agreement of the Fiscal Outturn Reports’ representations for the 2008/9 and

2009/10 fiscal years on MOT Revenue, respective records of the DCRARS and the

outcomes of my review denies assurance on the reliability of the respective Fiscal

Outturns, as a statutory documents stakeholders can rely on to determine the outcomes

of the National Budgets 2008/9 and 2009/10.



Recommendation

410. To avoid the above situation observed, the Minister of Transport should ensure that the

four MOT Divisions should on monthly basis reconcile their collections with that of the

DCRARS, MOF, lodgements into the GOL General Revenue Accounts at the CBL.

411. The Ministry of Transport should liaise with the Minister of Finance, to link the MOT

Divisions electronically to the DCRARS, MOF, to facilitate the accounting for fees

collected by the Divisions.


Maritime Revenue

Small Watercraft Fund

Observation

413. Section 19(2) of the Liberia Maritime Authority (LMA) Act states that all monies derived

from dividends from INMARSAT shares, the Liberian Pleasure Watercraft Act, or any

other law relating to powers and functions of the Authority, including the Liberian

Maritime Law or Liberian Maritime Regulations, shall be deposited into an Enterprise

Fund of the Authority, and shall only be utilized with the expressed prior approval of the

Board, and that of the President of the Republic of Liberia.

414. I observed that in the fiscal years 2008/9 and 2009/10, there was no contribution made

by LMA to the National Budget from the Small Watercraft Fund. According to the LMA, it

was not funded from the National Budget during this period. It deposited US$28,000 in

July 2010, representing revenue contributed by LMA to the Consolidated Fund from

Small Watercraft Fund for the fiscal year 2010/2011. As opined by the Authority’s

Deputy Commissioner for Financial Affairs (DCFA, Virgina, USA) and Comptroller, the

Small Watercraft program was poorly supported in terms of finance and lacked material

equipment to properly monitor and supervise all watercraft, yacht, fishing vessels and

other domestic commercial vessels illegally plying the Liberian waters.

415. In my review of the Act creating the LMA and the Act to repeal Chapter 11 of an Act

amending title 22, placing thereunder the registration and control of pleasure

watercraft, I observed that there was no provision which called for the LMA to

contribute funds raised from small watercraft to the National Budget. The Act creating

the LMA gives it the right to utilize funds derived from the small watercraft and the

INMARSAT shares with the prior approval of the Board the President of the Republic of

Liberia. However, there is no provision on how the funds should be utilized, thus giving

LMA discretionary powers on the utilization of the funds.

Risk

416. If adequate support is not directed to the small watercraft program, the government of

Liberia (GOL) through the LMA will not generate the needed revenue to support the

program and there will be cases of illegal marine activities in the Liberian waters that



would be unnoticed by the Coast Guard, due to lack of patrol equipment. Prevalence of

this situation would deny the LMA fines imposed:

i. On non-compliance with the Maritime Act provisions,

ii. On illegal yacht, fishing vessels and other domestic commercial vessels that

have not registered with the LMA, and

iii. On yacht, fishing vessels and other domestic commercial vessels for non-

compliance with international convention.

Recommendation

417. Management of LMA should duly develop the small watercraft program to international

standards and ensure that the sea shore waters of Liberia are properly managed and

supervised by the Coast Guard Security on a daily basis.

418. Consideration should given to the idea of amending the Act creating the LMA, with the

view to incorporating a provision on what portion (percentage) of the small watercraft

fund should be contributed to the National budget.

419. The Management of LMA should also declare funds derived from the Small Watercraft

Fund and INMARSAT shares in its annual report.

420. The LMA budget, as approved by the Board and President of the Republic of Liberia,

should be funded from proceeds deposited into the GOL General Revenue Account by

LISCR or any succeeding agent, as provided for by the LMA act.

Reconciliation of Funds Collected With CBL Bank Statements

Observation

421. Regulation O.1.(1,2), PFM Regulations, stipulates “ all government agencies shall

provide in their annual budgetary estimates, their expected revenue collections and

internally generated funds. A head of government agency is personally responsible for

ensuring that adequate safeguards exist and are applied for the assessment, collection

of and accounting for such revenues and other public monies relating to their agencies,

departments or offices”.

422. On monthly basis, Liberia international Ship and Corporate Registry (LISCR) remits into

the GOL Revenue Accounts, tonnage taxes and corporate fees, and annually the Deputy

Commissioner’s Office, Virginia, USA, also remits to GOL Revenue Accounts, the surplus

from the DCO’s operations. Copies of all the remittances are sent to the LMA. Under

Regulation 8, MOF Administrative Regulation No. PFMA-01/MOF/R/02 2010, Regulation

O.28(1), PFM Regulations, as well as Regulation O.1.(1,2), PFM Regulations, the LMA is

required to undertake monthly reconciliation of the notices of the remittances received

with the lodgements at the CBL. The LMA indicated that it did not carry out

reconciliation of revenue remitted to the GOL Revenue Accounts account from its



operations. These categories of revenue are the tonnage taxes, cooperate fees, surplus

from the DCO’s operation and the small watercraft fund. The LMA justified its stand on

the non-reconciliation on the grounds that it is the Ministry of Finance responsibility to

reconcile account(s) for all monies paid into the Consolidated Fund.

423. In my view, the above stance of the LMA is not in keeping with the dictates of the

above quoted regulations. The Regulations O.1.(1,2), PFM Regulation, explicitly require

that a head of agency should personally ensure that “adequate safeguards exist and are

applied for the assessment, collection of and accounting for such revenues”. Thus,

reconciling remittances notified to the LMA from DCO and LISCR operations with

lodgements effected into the GOL Revenue Accounts would ordinarily be held to fall

within the responsibilities placed on the Commissioner of the LMA. That responsibility is

primarily placed on the head of agency – i.e. the Commissioner of LMA.

Risk

424. Non-reconciliation of remittances notified to the LMA from DCO and LISCR operations

with lodgements effected into the GOL Revenue Accounts denies assurance that all

earnings from LMA’s operations are accounted for. Such assurance is required by all

stakeholders of the LMA, the non-provision of which would impact the corporate image of

the Authority.

Recommendation 425. The Commissioner of LMA should ensure that on monthly basis, reconciliation of all

remittances notified to the LMA from DCO and LISCR operations with lodgements

effected into the GOL Revenue Accounts is undertaken by the Finance Department of

the Authority.

426. Discrepancies noted in the reconciliation should be documented, investigated and the

outcome of the investigation formally reported and signed off by the Commissioner of

LMA. A copy of the investigation report should be served with the Comptroller-General.

427. The Commissioner of LMA should ensure that for the fiscal years 2008/9 and 2009/10,

the reconciliation of all remittances notified to the LMA from DCO and LISCR operations

with lodgements effected into the GOL Revenue Accounts is undertaken by the Finance

Department of the Authority and the outcomes reported to the LMA Board and MOF.




Analysis of Fiscal Outturns, LMA Remittance & Revenue Report, DCRARS Report and

CBL Revenue Bank Statements

Observation 429. Regulation O.28(1), PFM regulations, stipulates that the Comptroller-General shall, on a

daily basis, reconcile the General Revenue Account by matching the Bank Payment Slips

with the manager’s check receipt and matching the revenue to the daily collections

listing and subsequently the bank statement.’

430. Examination of LISCR/LMA remittances, revenue report and the related bank

statements from CBL indicated that all of the remittances for the fiscal year 2008/9 as

reported by LISCR/LMA in its Revenue Report were lodged in the GOL General Revenue

Account. Total Maritime Revenue collected by LISCR/ LMA for 2008/9 fiscal year

amounted to US$13,815,373.00, which equaled the total lodgements into the GOL

General Revenue Account. Ref. Table below.

Table 4: Total Maritime Revenue collected by LISCR/ LMA for 2008/9 fiscal year

2008/9 Remittance (US$) Fiscal Outturns (US$) Variance (US$)

Tonnage Taxes 10,091,140.00 9,350,000.00 741,140.00

Corporate Fees 3,708,913.00 3,650,000.00 58,913.00

Registration Fees 15,320.00 - 15,320.00

Total 13,815,373.00 13,000,000.00 815,373.00

431. The MOF detailed revenue report from the Data Capture Revenue Account and

Reconciliation Section (DCRARS) also confirmed the same revenue performance.

However, the remittance for June 30, 2009, comprising Tonnage taxes of

US$743,131.00 and corporate fees of US $74,791 was captured by DCRARS on July 8,

2009. In contrast to the amount of US$13,815,373 reported by LMA, CBL, and DCRARS,

the Ministry of Finance 2008/9 fiscal outturns reported Maritime Revenue for the fiscal

year 2008/9 at US$12,980,000, thus giving rise to an unexplained variance of

US$835,373. However, the very report indicated that tonnage taxes and corporate fees

totaled US$9,350,000 and US$3,650,000 respectively. This means Total Maritime

Revenue amounted to $13,000,000, over-stating LMA revenue performance by $20,000.

432. For the fiscal year 2009/10, the outcome from my review of Maritime Revenue is as

tabulated below. The Fiscal Outturn representation for Maritime Revenue of

US$16,299,000.00 did not tally with Remittances by the LMA, US$10,816,134.00,

Maritime Revenue Report, US$16,044,030.00, DCRARS report, US$16,298,653.00 and

lodgements into the GOL General Revenue Account, US$15,480,731.00.

Table 5: Analysis of the Fiscal Outturn, LMA Remittance, LMA Revenue Report, MOF Report

& CBL Revenue Report

2009/2010 Fiscal Outturn Remittance by LMA Variance

16,299,000.00 10,816,134.00 5,482,866.00

Maritime Revenue Report



2009/2010 Fiscal Outturn Remittance by LMA Variance

16,299,000.00 16,044,030.00 254,970.00

MOF (DCRARS) Revenue Report

16,299,000.00 16,298,653.00 347.00

CBL Revenue Bank Statement

16,299,000.00 14,348,868.00 1,950,132.00

Risk

The outcome from my review of Maritime Revenue for the fiscal year 2009/10, portrayed the

Fiscal Outturn Report for the respective year as unreliable. The Report, being a statutory

document relied on by stakeholders to determine the budgetary performance of GOL, denied

assurance that the outturns from the 2009/10 National Budget as conveyed in the Report could

be relied on, to inform decision making.

Recommendation

433. The Finance Director, LMA, the Director, DCRARS, MOF, and Officer-in-Charge , Banking

Department, CBL, should collaborate to determine the actual Maritime Revenue

obtained in 2009/10.

434. To obviate the situation observed in the fiscal year 2009/10 in future, the dictates of

Regulation O.28(1), PFM Regulations, should be adhered to – i.e. on monthly basis,

reconciliation of lodgements into the General Revenue Account and LMA revenue as

captured by both the LMA and DCRARS, MOF, should be undertaken by the DCRARS

and LMA Finance Division. Any discrepancy arising should be documented, investigated

and reported on.


Grants and Aid

Observation

436. As part of the audit of the Consolidated Fund of Liberia, I reviewed accounting and

reporting for grants and aid vis-à-vis the requirements of the extant regulatory

framework. The review was undertaken with the objective of determining whether the

dictates of the extant regulatory framework were being complied with.

437. Section 9(2), PFM Act of 2009 stipulates “National Budget shall, to the extent of the

availability of reliable data, include all donor financing provided directly to the Budget in

support of the central government, general budget support, basket funding of sectors,

and funding of government projects. Section 12(g) of the PFM Act also requires that the

National Budget should provide an annex, where relevant, identifying in summary form

all donor financing, distinguishing financing in support of central government from other

external financing.

438. Regulation G.1, PFM Regulations, 2009, places further responsibilities on spending

agencies for donor funding, by requiring that “all spending entities which are beneficiary



of donor funding not channeled through the budget shall: (a) within seven (7) working

days, submit copies of relevant cooperation agreements and memoranda of

understanding to the Ministers of Finance and Planning and Economic Affairs. (b) fully

disclose to the Minister and the Minister of Planning and Economic Affairs, all

information related to donor funding not channeled through the national budget, using

the Government’s Chart of Accounts and Budget Classification to classify Expenditures

and revenues. (c) The Ministry and the Ministry of Planning and Economic Affairs shall

ensure that there are adequate arrangements to gather, Inventory, analyze and report

on all information on grants and aid.

439. Additionally, Regulation G.2(a1), PFM Regulations, requires that the Minister “shall

have overall responsibility for aid management and shall maintain a full database of aid

flows and produce reports on statistical records of aid flows data, including

progressively bringing off-budget aid flows onto the budget”.

440. Furthermore, Regulation G.4, PFM Regulation, also requires Non-Governmental

Organizations (NGOs) that implement development programs funded by public funds,

including donor funding totalling US$50,000(Fifty Thousand United States Dollars) or

more a year, to be accountable through regular financial reporting and submission of

annual audited accounts to the Minister of Finance, the Minister of Planning and

Economic Affairs, and oversight line ministries as set out in section 30 of the Public

Finance Management Act 2009.

441. However, I noted that spending agencies were not disclosing to the Ministers of Finance

and Planning and Economic Affairs, all information related to donor funding not

channeled through the national budget. Also, I did not sight evidence that the two

Ministries had put in place a mechanism to ensure that all information on grants and aid

are gathered, inventoried, analyzed and reported on. The requirement under the extant

regulatory framework for the Minister of Finance to “maintain a full database of aid

flows and produce reports on statistical records of aid flows data, including

progressively bringing off-budget aid flows onto the budget” neither appeared to have

been implemented. These findings are predicated on the fact that, on numerous

occasions, the Ministries of Finance and Planning and Economic Affairs as well as other

ministries and agencies of GOL in receipt of grants and aid, were requested for

information as would provide the assurance that the dictates of the regulatory

framework were being adhered to. However, only limited information on grants and aid

was provided. I further noted that neither the Minister of Finance nor the Minister of

Planning and Economic Affairs was in possession all information on all Grants and Aid

inflows to Liberia, as none of the Ministries provided same.

442. The Fiscal Outturns for 2008/9 and 2009/10 reported Grants of US$23,512,814.00 and

US$13,009,000.00 respectively. We observed that the inflows reported in the Fiscal

Outturns were direct budgetary support. However, the National Budgets and Fiscal

Outturns for the two periods did not contain any information on Grants and Aid that

were not channeled through the Consolidated Fund. The limited information received by

me indicated that projects with value US$36,521,814.00 were together financed in the



2008/9 and 2009/10 fiscal years with respective values of US$23,512,814.00 and

US$13,009,000.00. Assistance received by Liberia by way of Grants and Aid could be

substantial, where all spending agencies and NGOs provide all information on these.

Risk

443. The values of projects financed through grants and aid not channelled through the

Consolidated Fund could be substantial. As such, their non-incorporation and disclosure

in the respective National Budgets and Fiscal Outturns would misrepresent quantum of

resources the GOL garnered in the respective years for national development. Such

omissions are quite significant, as they impact decision making. Development partners of

Liberia would neither be happy as they would have a notion that their taxpayers’ monies

granted to Liberia as Grants and Aid were either not being accounted for or not being

appreciated. Furthermore, the non-reporting by spending agencies and NGOs of the

receipt of grants and aid and their use, could provide opportunities for abuse.

Recommendation

444. The Minister of Finance should provide substantive justification for failing to:

i. Incorporate and disclose in the respective National Budgets and Fiscal Outturns

for 2008/9 and 2009/10, information on grants and aid that were not channelled

through the Consolidated Fund.

ii. Maintain a full database of aid flows and produce reports on statistical records of

aid flows data, including progressively bringing off-budget aid flows onto the

budget.

445. The Ministers of Finance and Planning and Economic Affairs should ensure compliance

with all requirements on grants and aid, as provided for under the extant regulatory

framework, particularly Regulations G.1, G.2 and G.4 of the PFM regulations, 2009.


446. The Aid Management Unit, through support from the African Development Bank (AfDB)

is being strengthened so as to have the capacity (both human and institutional) to

capture aid data and have it analyzed, inventoried and reported.

447. The recruitment of critical aid staff are currently on going and expected to be completed

by 2012.

Direct, Payroll and Business Profit Taxes

Penalty for failure to file and failure to pay taxes

448. Section 51(a) of the Revenue Code of Liberia, 2000, states that: “A tax return is subject

to a late filing penalty if it is received at the tax payer’s designated place of filing but

received after the due date. The penalty for late filing of a tax payer’s return (other

than that is required to be filed monthly) is one percent of a tax required to be shown

on a return, and the penalty increases by one percent per month or part of a month



that the return is late. The penalty for late filing of a tax return that is required to be

filed monthly is $200 or five percent of the tax required to be shown on the return,

whichever is greater, for each day that the return is late”.

449. Also, Section 51(b) of revenue code of Liberia, 2000, states: “If a taxpayer fails to

timely file a tax return (other than a tax return that is required to be filed monthly), and

the failure continues for more than three months after the filing deadline, the taxpayer

is considered to have failed to file as of the first day after the three month period and is

subject to the failure-to-file penalty. If a taxpayer fails to timely file a tax return that is

required to be filed monthly, and the failure continues for more than one calendar

month, the taxpayer is considered to have failed to file as of the first day after the

expiration of one calendar month after the filing due date and is subject to the failure-

to-file penalty. Calculation of the penalty begins as of the day the taxpayer is

considered to have failed to file”.

450. Furthermore, Section 51(b1) of Revenue Code of Liberia, 2000, stipulates “The penalty

for failure to file a tax return (other than a tax return that is required to be filed

monthly) is 10 percent of the tax required to be shown on the return, increasing by 5

percent per month (or part of the a month) that the failure continues, not to exceed

100 percent of the tax required to accompany the return”.

451. Additionally, Section 52(c) of the Revenue Code of Liberia, 2000, states that: If a

taxpayer fails to make timely payment, and the failure continues for more than three

months after the payment deadline, the taxpayer is considered to have failed to pay tax

and is subject to the failure-to-pay penalty. The minimum penalty for failure to pay is 10

percent of the unpaid tax, increased by 10 percent per month (or part of a month)

during which the tax remains unpaid, not to exceed 200 percent of the unpaid tax.

Calculation of the penalty begins as of the day the taxpayer is deemed to have failed to

pay. If the taxpayer is convicted of willful failure to pay, the penalty is doubled and the

taxpayer may also be subjected to a term of imprisonment of up to 10 years.”

452. Contrary to the dictates of the above provisions, I noted from my review of sample of

taxpayers’ files drawn from the Medium and Large Tax Divisions of the Bureau of

Internal Revenue that 45 taxpayers were in violation of the requirements – i.e. the

taxpayers either filed late and/or failed to file returns. Seven (7) of the violators were

from the Large Tax Division while 38 were from Medium Tax Division. Total penalty for

late filing and/or failure to file amounted to US$11,523.96 and L$14,780.40. Of this

penalty, US$6,660.65 was payable by violators from the Large Tax Division, whilst

US$4,863.31 and L$ 14,780.40 related to the Medium Tax Division.

453. Additionally, 32 taxpayers from Medium and large tax Divisions failed to file and failed

to pay their tax liabilities when due. Eleven (11) of the violators were from the Medium

Tax Division and 21, Large Tax Division. The total penalty and interest for failure to file

and failure to pay amounted to USD135,276.23 and LD 451,516.84. Large Tax Division

portion of these penalty and interest came to USD 129,917.33 and LD222,217.92 whilst

Medium tax Division’s amounted to USD 5,358.90 and LD 359,348.49.



454. I could not determine the extent of prevalence of these violations for the periods under

review, as both Medium and Large tax Divisions did not provide all the taxpayers files

requested. As a result, the taxpayers’ files obtained by me were not representative of

the overall taxpayers serviced by the two Divisions.

Risk

455. Non-timely payment of taxes as stipulated by extant regulatory framework would

impact timely flow of revenue into the GOL General Revenue Accounts at the CBL. This

would in turn impact timeliness of execution of activities/programs/projects provided for

under Appropriation Act for a fiscal year.

Recommendation

456. Management of the Bureau of Internal Revenue must strengthen monitoring mechanism

within its Large, Medium and Small tax Divisions to ensure that taxpayers’ files are

routinely reviewed, with the view to identifying defaulting taxpayers. Thereafter,

notification bills must then be dispatched to defaulting taxpayers to discharge their tax

liabilities. Failing that, enforcement provisions must be pursued to ensure recovery.

Minister of Finance Response 457. The Bureau of Internal Revenue as part of its procedures determines penalties and

interests on late filing, late payment, failure to file and failure to pay taxes for

defaulting taxpayers. Moreover, through the Executive Order 26, most taxpayers in the

Small, Medium and Large Taxpayers Divisions were given exemption for the payment of

associated penalties and interests that were calculated. The executive order ran from

July 2010 to March 2011. Executive Order 26 attached.

458. Observation is noted. However, we again point to Executive Order 26, which gave the

Ministry of Finance the authority to waive Penalties and Interest for those taxpayers

that paid their due taxes within the specified time. We also will appreciate were

GAC to make available the listing of those 32 taxpayers to ensure that the penalties and

Interest in question are accounted for.

459. The files that were requested by GAC were available but unfortunately, the team did not

come to take delivery of the files. The requested files are available for GAC’s review.

Recommendation:

460. We acknowledge your recommendation. However, the Bureau of Internal Revenue is

currently working to improve and strengthen the mechanism of reviewing taxpayers’

files in order to identify defaulting taxpayers. To further strengthen this exercise, we are

presently working on the automation of tax administration so as to enhance revenue

collection process and increase compliance ratio.


461. The importance of my recommendation on waiver of taxes derived from penalities and

interests was to remind the Minister of Finance that it was irregular to grant such waiver

when the Revenue Code of Liberia 2000 explicitly required penalities and interests to



have been determined on defaulting taxpayers. The Minister of Finance cannot justify

its decision on waivers of taxes under any condition.

462. Moreover, I am available to provide all information required to implement the

recommendation presented above. The Department of Internal Revenue should

therefore avail itself of this documentation when needed.

Sales and Excise Taxes, Business and Professional Licenses,

Fees And Specific Charges

Registration and Assessment of Small, Medium and Large Taxpayers, Payment and

Filing of Turnover Tax Returns, Tax Evasion and Delinquent Taxes

463. Under Section 200(e), Revenue Code of Liberia (2000), it is stipulated that “the income

tax and the turnover tax are collected through advance payments (as provided in

Section 904)…” Sections 51 & 52 of the Revenue Code also stipulate penalties for late

filing, failure to file, late payment and failure to pay tax.

464. Contrary to the above requirements, I noted from my review of 530 taxpayers’ files out

of 609 that the Bureau of Internal Revenue failed in many instances to associate

penalties and fines imposed on specific tax kinds and state the taxable amounts on the

basis of which taxes were determined. I observed that about 25 percent of taxpayers,

especially those in both small and medium tax categories, whose files were made

available to the engagement team, paid taxes far beyond due dates, ranging from one

week to two years.

465. I further noted that account statements or revenue detailed reports of tax returns filed

by taxpayers, which listed tax kinds, did not include declaration and period of default

(period between due date and actual date of payment). The detailed reports, in many

instances, merely stated “Penalties and Fines” without associating such penalties and

fines with particular tax kinds.On account of these omissions, there was improper

accounting for taxes, penalties and fines. As a result, I could not ascertain the validity of

assessments made and penalties and fines levied.

466. Additionally, Section 1900 of the Revenue Code states that “any person who willfully

evades or defeats any tax imposed under any of the provisions of the Tax Code or

under any of the provisions, or the payment thereof, shall be guilty of felony and upon

conviction, in addition to any other sanctions provided by law, shall be fined not more

than $200,000 or imprisoned not more than 5 years or both.”

467. However, I observed that despite the dictates of the above provision, taxpayers

apparently made declarations of turnovers, which did not show consistent trends over

time. For example, a store located on Mechlin Street, Waterside, declared gross

turnovers of L$2,000, L$25,000, L$22,500 and L$25,000 for 3rd and 4th of 2008/9 and

1st & 2nd Quarters of 2009/10 respectively. In the first two quarters (3rd & 4th

Quarters) of 2009/2010, it declared gross turnover of L$25,000 each. These

declarations, in my view, smacked of untruthfulness, considering the location, business



activity of the entity and the repetiveness in the declarations. 25 taxpayers’ files out of

50 reviewed in the Small Tax Division showed similar trend. Despite these declarations,

I did not see evidence that any of the review mechanisms within the BIR followed up on

such taxpayers to ascertain the truthfulness of their declarations.BIR failed to apply the

appropriate provisions of the Code and/or formulate proper mechanisms, such as

periodic inspection of receipt books and enforcing adherence to the issuance of receipts

to customers for sales made.

468. Furthermore, Section 64 of the Revenue Code stipulates “a tax lien is created in favour

of the Government upon the property of a tax debtor if the tax debtor has not paid tax

that is due and payable as stated in an assessment notice under Section 74(e).”

Sections 1900, 1902 & 1903 also provide adequate measures for dealing with

delinquent taxpayers.

469. I also observed that these provisions were not swiftly applied to delinquent taxpayers,

many of whom are in Monrovia and its environs, due to weakness on the part of BIR to

enforce the provisions of the Revenue Code. For example, in both fiscal periods, 2008/9

& 2009/10, I noted that 25 taxpayers were delinquent, while 15 were only delinquent in

2008/9 and 36 in 2009/10. BIR did not provide evidence, in terms of documentation, of

prompt enforcement measures against these entities.

Risk

470. Failure to associate penalties and fines with appropriate tax kinds could lead to loss of

revenue to government through understatement of penalties and fines. Equally, the

failure to properly indicate declarations or taxable amounts, which are basis for

determining tax due, may also lead to understatement of taxes.

471. Lack of appropriate mechanisms to ensure truthful declarations as well as firm,

consistent and vigorous enforcement of provisions such as those stated above could

lead to more loss of GOL revenue through false declarations.

472. Weakness in the enforcement of these provisions may lead to loss of Government

revenue as delinquent taxpayers would not pay their taxes.

Recommendation

473. The BIR should provide space for declarations and number of days, weeks or months

that the taxpayer either failed to file, filed late, paid late or failed to pay in the Bureau’s

detailed report for accountability and auditing purposes.

474. As false declaration often results from the willful refusal of taxpayers to issue

appropriate receipts for sales they make, and thus many sales may not be recorded or

accounted for on the taxpayers’ books, BIR should device ways and means by which it

can ensure mandatorily that taxpayers issue receipts for all sales they make during a

tax period.



475. Management of the BIR should strengthen its enforcement of the requisite provisions of

the Revenue Code to ensure prompt payment of taxes.


476. The Bureau of Internal Revenue has always imposed penalties, interest and fines on

specific tax kinds thus stating the taxable amount upon which the penalties &

interests are determined. The various divisions have bill forms and checklist that

present a detailed analysis of tax due, late filing, late payment, failure to file, failure to

pay and interest. Moreover, we will appreciate were you to submit to us those files

without associated penalties & interest when taxes were filed and paid late for the

purpose of verification.

477. Observation noted. Since 2009 the Bureau commenced including declaration and

period of default on the compliance checklist but it does not include penalties and

interest for each tax kind separately. However, we are currently working on the

adjustment of the compliance checklist to reflect your observation.

478. The Bureau of Internal Revenue ascribes to the self declaratory regime as prescribed by

international best practice. In order to establish the truthfulness of taxpayers’ returns,

they are subjected to various types of audit as outlined in the audit manual of the

Bureau and which is consistent with the Liberian Revenue Code. Audit reports are

available at the various divisions.

479. We acknowledge your observation. However, the Bureau is currently working on

strengthening the enforcement process so as to capture all delinquent taxpayers. We

are also working in collaboration with the Ministry of Justice to prosecute all delinquent

taxpayers through the court system.

Recommendation:

480. As evidenced by the forms attached, the Bureau currently has in operation a

template including declarations, number of days past due, etc. Please see EXHIBIT 3.

(See Count 391above).

481. Your recommendation is noted. There has been an administrative regulation on record

keeping relative to ensuring that taxpayers provide receipt to customers upon sales. We

are also striving to ensure through taxpayers’ education programs that each business

entity provides receipts. (See Count 392 above).

482. The Bureau acknowledges your recommendation to strengthen the enforcement of the

requisite provisions of the Revenue Code to ensure prompt filing and payment of taxes.

On an ongoing basis, we strategize to improve on payment and filing

compliance. (See Count 393 above).




483. Again, The Auditor General is available to provide all information required to implement

the recommendation presented above. The Department of Internal Revenue should

therefore avail itself of this documentation when needed.

EXPENDITURES OF THE CONSOLIDATED FUND

Variances Noted Between Expenditures of Government Ministries and Agencies and

that of the Fiscal Outturn Reports for 2008/9 and 2009/10

Observation

484. As transactions and events reported by ministries and agencies of Government are the

same as those conveyed in the Fiscal Outturn Reports, it is expected that the accounts

of these transactions and events as maintained by both the ministries and agencies and

Ministry of Finance, and annually reported in the Fiscal Outturn Report, should coincide.

I sought third- party confirmation from 27 selected line Ministries and Agencies of

Government to confirm their Revenues and Expenditures as reported in the Fiscal

Outturns and 20 Ministries and Agencies the enquiry was sent to responded, as

indicated in Annex 6A & B.

485. Contrary to the above requirement, I noted variances between the Expenditures as

confirmed by the Ministries and Agencies and that conveyed in the Fiscal Outturn

Reports for 2008/9 and 2009/10. The net variance amounted to US$173,091.83 and

US$ 7,905,561.72 for the fiscal years 2008/9 and 2009/10 respectively (Annex 6A &

B). In addition, there was net variance amounting to US$15,230,876.86 and

US$29,135,289.21 for the respective fiscal years on Grants and Aid between the fiscal

outturns reports and grants and aid reported by the line Ministries and Agencies.

486. I noted that the representations in the Fiscal Outturn Reports for 2008/9 and 2009/10

were not presented showing the details of Expenditures on a line by line item.

Ordinarily, it is required that the representations reported in the Fiscal Outturn Report

should be as detailed as the National Budget, to facilitate analysis. This omission

resulted in my inability to compare on a line by line item basis the Fiscal Outturns’

representations to the confirmations submitted by the Ministries and Agencies.

Risk

487. The non-agreement of the representations contained in the Fiscal Outturn Reports and

the confirmations received from the ministries and agencies denied assurance that

financial records underpinning the Fiscal Outturns for the two fiscal years under review

were complete. This omission impacts the truth and fairness of the Fiscal Outturn

Reports for 2008/9 and 2009/10.

Recommendation

488. To resolve the issue of the non-reconciliation as observed above, the dictates of Section

36(2,3), PFM Act of 2009, should be strictly adhered to. This provision requires that:



• Each Spending Entity should provide a monthly report on revenues and a quarterly

Expenditures performance report to the Minister of Finance; and

• The spending entities shall further submit to the Minister on a quarterly basis, the

accounts of the spending agency comprising a statement on cash flow, a statement

on revenue and Expenditures from the Consolidated Fund and a balance sheet

showing assets and liabilities as at the end of the quarter as well as such other

details as may be prescribed by the Minister of Finance.

489. The Comptroller and Accountant-General should ensure that revenues and Expenditures

represented in the Fiscal Outturn Report are presented and disclosed on a line by line

item basis, to aid the understandability of the Fiscal Outturn Report. In the same vein,

the Minister of Finance and the Comptroller and Accountant General of Liberia as well as

the Deputy Miniister for Expenditures should account for the Expenditures variance of

US$173,091.83 and US$ 7,905,561.72 for the fiscal years 2008/9 and 2009/10

respectively.


490. US$ 173,091.83 and US$ 7,905,56 1.72 for the respective fiscal years.

491. After reconciliation, the variance between the Ministries and Agencies and the Fiscal

outturns have been reduced from US$ 7,905,561.72 to US $ 264,592.00 as per Exhibit –

A. The amount US$ 264,592.00 derived at is non-inclusive of figures for grants, aids ,

others in Annex 4A as well as figures for Bureau of Immigration and Naturalization

(BIN) which was omitted because it forms part of the figure for Ministry of Justice

(MOJ). Furthermore, the amount is exclusive of the figure for Ministry of Labor (MOL)

because MOL did not submit their Financial Statements for inclusion in the report. The

Ministry of Finance is unable to respond to the US$ 173,091.83 reported in count 399

above this amount cannot be traced to any of the annexes submitted by the GAC.

However, to date, we still have unresolved variances with the following Ministries

(Exhibit–A1).

492. In the case of the Ministry of Health, the basis of the variance stems from outright fraud

perpetrated by staff of the MOH and the MOF. Two staff of the MOF Sando Boakai of

the Cash Management Secretariat and Dekontee Smith of the Accounting Services Unit

colluded with an Accountant of the MOH Mr. Emmanuel Blaqaye to process

fraudulent transactions. The unresolved variance to date amounts to approximately

USD 67,584.00.

493. The MOF has also taken measures to address this concern which has some merits.

Paramount amongst the measures taken is the followings:

• Submission of the copy vouchers to the Ministries and Agencies on a much more

timely basis



• Submission of allotment and commitment reports to the Ministries and Agencies

on a monthly basis.

• Embarking on a two way reconciliation between the Analysts of the Ministry of

Finance and the Accountant of the Ministries and Agencies.

494. These measures combined with other quick impact control reviews will significantly

ensure that these variances are avoided in the future.

495. US$ 15,230,876.86 and US$29, 135,289.21 not recorded grants in the fiscal outturns

496. This distinction is critical as donors have a lot of influence over the medium and manner

through which assistance is given to the agencies of the GOL. We do however agree

that in the context of the public accounts having access to this information is very

important in determining the level of assistance given to the GOL.

497. We have some concerns about incorporating this information in the Fiscal Outturns.

i. The information given comes from Ministries and Agencies and there has been

no independent verification from the Donors themselves as to the completeness

and presentation and disclosures of the transactions.

ii. These transactions almost always ignore the value of assistance in kind

and materials.

iii. The Paris Declaration and the Accra Agenda for Action endorses bringing aid on

budget for more effective management and utility of resources. Donors

are encourage to ensure that these tenets of financial management are adhered

to. Some Ministries and Agencies have unfortunately adopted a cynical

perspective on accepting that these funds are deposited in the consolidated fund

accounts. While we note the ultimate responsibility to account for these funds

still rest on the shoulders of the Ministry of Finance, it becomes a challenge to

account for what you have no control over and very little information about

498. Accordingly, the MOF is considering the following actions to address these concerns.

i. Incorporate the numbers provided by the Ministries and Agencies on condition

that a separate audit will be done to validate and confirm the numbers for aid

received from development partners. This is critical in finalizing the Public

Accounts for the fiscal years under review.

ii. That this procedure shall be applicable to the fiscal period 2010 / 2011 also but

with attestations.




499. The Minister of Finance indicated in his response that the variations in expenditures per

the 2008/9 and 2009/10 fiscal outturns and that of expenditures confirmed by line

ministries and agencies of GOL were due to lack of reconciliation and that the

reconciliations had been done to examine the causes of the variances. It however

conceded that after its reconciliation, material variances amounting to US$26,932,220

still remained un-resolved. These variances impact on the truth and fairness of the fiscal

Outturns Reports for 2008/9 and 2009/10.

500. Additionally, the MOF submitted financial statements that it received from specified

ministries and agencies of GOL, in response to GAC third party confirmation it conducted.

The third-party confirmation GAC sought was not financial statements and also such

confirmation, by convention, is supposed to have submitted directly to the GAC, which

requested the confirmation. This practice was not followed and therefore, in my view,

the financial statements submitted by MOF cannot be considered as relevant in the

evaluation of the variances observed.

501. MOF is thus advised to still pursue the resolution of these variances and implement the

recommendation proffered above to stem their recurrence.

502. Furthermore, the unexplained net variance of US$173,091.83 that MOF indicated could

not be located is contained in Annex 6A.

Un-Supported Expenditures

Observation

503. To determine that Expenditures reported in the 2008/9 and 2009/10 were duly

supported, I requested and obtained payment vouchers (PVs) and their related

supporting documents from the Expenditures Department of the Ministry of Finance.

504. The Financial Regulations require that all Expenditures of GOL must be supported by

valid and approved PVs and corresponding supporting documents. On the basis of this

provision, I validated the Expenditures figures in respect of PVs processed and paid

during the fiscal years under review.

505. I noted that the Expenditures stated in the Fiscal Outturns did not coincide with those I

substantiated and tabulated from the supporting vouchers submitted to the GAC. The

total net variances between 2008/9 and 2009/10 Expenditures in the Fiscal Outturns and

those substantiated came to US$37,201,940.44 and US$10,105,524.80 respectively.

Details of these variances are presented in Annex 5B.

506. It is instructive to note that the issue of Expenditures reported in the Fiscal Outturns of

the Government of Liberia and not supported by vouchers and corresponding supporting

documents were conveyed in my reports on the fiscal outturns for 2006/7 and 2007/8

submitted to the President and the National Legislature as well as to the MOF. The



Ministry of Finance authorities however are yet to account for the Expenditures variances

noted by the audit.

Risk

507. The non-support of Expenditures incurred denies assurance that the Expenditures were

duly authorised and used for the purposes intended. This omission renders the 2008/9

and 2009/10 Fiscal Outturns of the Government of Liberia not reliable, as users of the

Fiscal Outturns could be misled.

Recommendation

508. The outstanding vouchers and their related supporting documents should be made

available to the the Auditor General for substantiation by the approving and disbursing

authorities at the MOF, namely, Mr. Augustine K. Ngafuan, Minister of Finance, Mr.

Arthur Fumbah, Deputy Minister for Expenditures and the Comptroller and Accountant

General, Mr. John Davies. Failure to provide those supporting documents, the above

named officials of the MOF should be held to account for the total amount of

US$47,307,465.24..


Business Process at the MOF

509. For the most part of the period under review, vouchers were not prepared for the Basic

Salary Component for the Payroll and Allowances given as compensation to GOL

Employees. This practice continued to until sometime in the fiscal 2009 / 2010 fiscal year

and was discontinued after the previous Auditor General recommended the preparation

of ―Dummy Vouchersǁ since the Payroll Process in Government was not preceded by the

procurement of allotments, commitments of payrolls before civil servants are paid. USD

32,083,796.32 of the USD37 Million significantly represents the Basic Salary Payroll for

FY 2008/2009 for which no normal vouchers were prepared (see Exhibit – B). Dummy

vouchers were prepared for 2009 / 2010 fiscal year; however, all the dummy vouchers

were not collected by the GAC from the MOF.

510. Dummy voucher still in the possession of the MOF for the fiscal year 2009 / 2010 total

US$ 21,744,435.09 and are herein provided to the GAC for Review. (See Exhibit – B1)

511. We can however affirm that those payments were made on account of the fact that the

payrolls exist at the MOF and the Payroll Master Records are Available. The GOL has no

record of owing any civil servant currently for the period under audit.

512. The GAC inadvertently left behind US$ 2,453,556.10 and US$ 1,263,891.35 of vendors

vouchers behind for FYs 2008/09 and 2009/10 respectively. It was also observed that

the GAC did not take delivery of all of the vouchers from the MOF. The omission of US$

2,453,556.10 and US$ 1,263,891.35 account for the US$37,201,940.26 and US$

10,578,059.72 variances for FYs 2008/09 and 2009/10 totaling US$ 3,717,447.45 as

highlighted in Exhibit C.



513. Incomplete reporting on the total number of box files and number of vouchers submitted

to the GAC for Audit Prior to the commencement of the Audit of the Consolidated Fund,

the GAC had intermittently carried on special audits. It had consequently requested files

from the MOF to enable the auditors execute their work. Our investigation has shown

that files taken from the MOF and still in the possession of the GAC were inadvertently

omitted during the computation of the variance analyses. To date, 1,681 vouchers for FY

2008/09 are not accounted for in the audit. The total amount not accounted for in the

count of FY 2008/09 is US$ 4,208,372.00. Please find attached Exhibit – D. Moreover, 26

vouchers for FY 2009/10 are not accounted for in the audit. The total value of these

vouchers is US$ 329,725.00. Please find attached Exhibit – D1.

514. Inaccurate computations of the figures for M & As Our investigation of the variances

further revealed that the batching of vouchers per ministries and agencies was also

incorrectly computed. Six agencies were highlighted in this investigation. Please see

Exhibit - E. They are as follows: Ministry of Defense, Special Security Service, National

Police Training Academy, National Fire Service, Center for National Document Records

Administration and the Monrovia Consolidated School System. As outline in Exhibit E,

the GAC claimed that they verified USD7.7 million out of 10.9 million reported in the

fiscal outturn for FY 2008/09. A recount of the vouchers in the GAC possession revealed

USD10.5 leaving an understatement of USD2.7 million between what GAC verified and

what was verified by MOF at the GAC. A similar review for the same set of institutions for

2009/10 revealed a significant overstatement by USD 10.4 million. The GAC claimed to

have verified US$ 23.7 million compared to USD 13.99 million reflected in the fiscal

outturns. A re-verification of the same vouchers in the possession of the GAC proved to

be USD 13.3 million.

515. A second concern regarding this observation is that we asked for the first six agencies

and every one of them had problems with the counts. We are therefore constrained to

disagree with the validity of the tallies and this is further amplified by the unresolved

variances highlighted in our submissions.

516. In conclusion, we disagree with the basis for ―unsupported expendituresǁ and the

conclusions reached thereof. Lastly, we add that this raises the issue again of access

versus custody for documentary records used in the process of audits. We therefore

propose the following to address this situation:

a. Inclusion of the corrections as submitted by the MOF

b. Inclusion of the statistics for the Payroll for FY 2008 / 2009 consistent with the

business processes characterizing the operating environment for that fiscal year.

c. The GAC may consider other alternative procedures for validation of the payroll

component of the fiscal year expenditures.

d. Full re-computation of the tallies for all Ministries and Agencies taking into

consideration the vouchers initially signed for by the GAC



e. Full engagement with the MOF during the recount process which could not be

completed due to the tedious nature of the compilation of the files at the GAC.

Auditor General’s Position 517. I disagree with the Minister of Finance assertion that GAC inadvertently left behind US$

2,453,556.10 and US$ 1,263,891.35 worth of vendors vouchers behind for FYs 2008/09

and 2009/10, respectively. Because, despite repeated request made for vouchers

processed and paid by MOF during the periods under review, for purposes of the audit, I

also raised the issues regarding the un-supported Expenditures of the Fiscal Outturns for

2008/9 and 2009/10 through AOM, which was issued to the Comptroller and Accountant

General. MOF did not provide any additional vouchers in response to the AOM issued.

518. However, after due consideration of the issues raised in the MOF response, it appeared

that the issues are far reaching in effect, because the variance analysis conducted by

Minister of Finance in response to my observation yet indicated that there are un-

explained variances of US$3,091,113.56 and US$3,954,378.31 for FY 2008/09 and

2009/10, respectively. Ref. Annex 8. I have therefore instructed the GAC Forensic Audit

Department to investigate and analyze all disbursement vouchers, which are the subject

of contention by MOF, and all related matters giving rise to the variances observed.

Failure to account for Foreign Travel Advances paid to officials of the Ministry of

State (MOS), Ministry of Foreign Affairs (MOFA) and the Ministry of Finance (MOF).

Un-retired Foreign Travel Allowances

Observation

519. The Executive Ordinance No.8 of 2007 (Policy on Daily subsistence Allowances for

Travel Abroad by Officials and Employees of the Government of Liberia) requires that

officials who undertake foreign travel and or assignments retire their travel advances by

completing and submitting a Travel Advance Form ten (10) days before their travels and

Travel Settlement Forms, one week after their return.

520. Contrary to these requirements, my examination revealed that some officials and staff

of the Ministry of State & Presidential Affairs, as listed in the Annex (4), failed to submit

travel disbursement/settlement form and related travel documents to retire travel costs,

totalling US$90,880.00.

521. Similarly, I noted that some officials and staff of the Ministries of Finance and Foreign

Affairs, (ref. Annex ,4A & 4B) did not submit travel disbursement/settlement form

and related travel documents to account for advances totalling US$208,671.11 and

US$153,664.50 received for their trips.These omissions implied that upon returning to

Liberia, officials of government in question did not account for and report on the foreign

travels and no controls were exercised by the Foreign Travel Section of the Ministry of

Finance to ensure that the retirement of travel documents were made by these

personnel. This situation also occurred because both the Director of Budget and Foreign

and Domestic Travel Section of the Comptroller and Accountant General’s Office,

Ministry of Finance, did not maintain Travel Advances Ledger to control all advances



received on travels and ensure their timely retirement, as required by the travel

ordinance No 8 paragraph 25.

Risk

522. Non-retirement of travel advances could result in non-accountability for travel advances

granted to officials of GOL, thus posing a drain on GOL resources.

Recommendation

523. The Minister of Finance and Comptroller and Accountant General of Liberia should

ensure that the officials listed in Annex (4, 4A & 4B) to this report retire their

respective advances against their names.

524. Minister of Finance should also ensure that no Government officials and other

employees of the ministries and agencies should be paid additional travel advances

without retiring the previous travel advances, as required by Section 24 of Executive

Ordinance # 8.

525. The Comptroller and Accountant General should ensure that the Travel Advances

Ledger is maintained by the finance officers of various ministries and agencies in

keeping with Section 25 of Travel Ordinance # 8, iwith the view to ensuring the proper

accounting of advances.


526. To substantiate claims raised by the General Auditing Commission in the above

observations, we submitted all document for the queries made on the Ministry

of Finance’s travels in the counts above. The Ministries of Foreign Affairs and States are

compiling their documentation for direct submission to the GAC.


527. I have reviewed documentaion provided by Ministers of State and Finance submitted in

response to the above findings. As regards Minister of State, the documentation

provided by the Minister absolved a number of personnel who were to account for

travel advances, and thus, they have been excluded from the unreitired travel advances

list which is to be accounted for per Annex 4. For MOF, its documentation submitted did

not negate my findings. As of the date of compiling this report, Minister of Foreign

Affairs has not submitted any documentation in response to my findings. I thus

modified my recommendation that for those personnel of Ministries of State, Finance

and Foreign Affairs who failed to account for their travel advances, as listed vide

Annexes 4, 4A and 4B respectively, they should be made to restitute the travel

advances given to them.

Failure to Maintain Bid Documentation and Budget Performance Report

Observation

528. Regulation C.8(h), PFM Regulations, requires a head of agency or any personnel

assigned by him, to produce, when required by the Minister of Finance, the Comptroller-

General, head of internal audit or Auditor-General or by such officers as may be



authorized by any of the above, all cash, books, records, vouchers or other items of

value in his or her charge. In addition, Section 58 of the PPC Act requires the

maintenance of record of procurement such as a list of the participating bidders, their

profile and qualifications, and the qualification criteria applied, bid prices, the bid

evaluation criteria, a summary of the evaluation of bids, summary of any review

proceedings and decisions thereon, among others.

529. Contrary to the above requirement, I noted during the audit that there was no evidence

of bidding documents to support payment vouchers amounting to US$11,907,460.40

and Us$13,588,598.47 for the period 2008/2009 and 2009/2010 respectively. Ref.

Annex (5). In addition, I noted that there was no evidence of progress report attached

to vouchers. I could not therefore ascertain the validity of the Expenditures incurred by

the Ministry of Public Works.

Risk

530. Absence of documentation to support contracts awarded and payments made thereon

could be an indication of abuse of the PPCC provisions. This omission denied assurance

that the contracts were awarded on the basis of lowest evaluated responsive bids. GOL

might therefore not have obtained value for money. Under such situations, bogus

companies could be awarded contracts which they may fail to deliver on.

Recommendation

531. The Minister of Public Works should provide substantive justification for the absence of

relevant documentation, such as a list of the participating bidders, their profile and

qualifications, and the qualification criteria applied, bid prices, the bid evaluation

criteria, a summary of the evaluation of bids, summary of any review proceedings and

decisions thereon, among others, on contracts awarded by the Ministry of Public works

during the fiscal years 2008/9 and 2009/10.

532. The Minister of Public Works should also provide relevant documentation, such as a list

of the participating bidders, their profile and qualifications, and the qualification criteria

applied, bid prices, the bid evaluation criteria, a summary of the evaluation of bids,

summary of any review proceedings and decisions thereon, among others, on all

contracts awarded and paid for by the Ministry of Public works during the fiscal years

2008/9 and 2009/10. Failing that, the Minister of Public Works should be held to

account for US$11,938,839.68 and U$13,606,008.47 disbursed on contracts during the

the fiscal years 2008/9 and 2009/10 respectively.


533. Ministry of Public Works has provided the documentation for the indicated expenditures

to the General Auditing Commission.

Auditor General’ Position

534. Documentation provided by MPW regarding bid documents could not invalidate my

findings. Documentation provided excluded contract performance reports and bid



evaluation reports consistent with the PPCC Act. I therefore maintain my

recommendation.

Policies and Procedures

Observation

535. Under Section 8 (IV) of the Budget Act of 2010, access to the County Development

Fund shall be upon resolution of the Special County Development Committee (SCDC).

This is evidenced by minutes of the Special County Development Council (SCDC)

meeting attended by the Superintendent and an equal number (set by the county

Legislative caucus) of officials and opinion leaders from each administrative districts or

traditional communities of the county. Additionally, each sitting of the Council shall be

chaired by the chairperson of the county legislative caucus or any member of the

caucus present at the sitting. The objective of the meetings is to decide on the projects

to be undertaken using the County Development Fund.

536. Contrary to the above provisions, I observed that there was no evidence in the form of

minutes of meetings of the SCDC for capital transfers made to four (4) counties

amounting to US$800,000.00 under the County Development Fund (C.D.F.) from the

Ministry of Finance. I therefore could not ascertain the types of projects that were

undertaken by these counties authorities in relation to the County Development Fund.

See Table Below:

Table 1: Capital Transfer to four Counties

Date Description Claims # Check

#

Amount # Authorized

sign.

Comments

03/09/2010

05/26/2010

Grd. Kru(CDF)

Grd. Kru (CDF)

010-03-

244

010-05-

849

0108663

US$100,000.00

US$100,000.00

Act. Minister

Peter Z. N.

Kamei

No evidence of

letter of

request from

the Ministry of

Internal Affairs

to the Ministry

of Finance and

the minutes of

meetings.

5/26/ 2010

Grd. Cape

Mount

co.(CDF)

010-05-

849

US$200,000.00

Act. Minister

Peter Z.N.

Kamei

No evidence of

minutes of

meetings.

5/ 26/2010

Maryland co.

(CDF)

010-05-

849

US$200,000.00 Act. Minister

Peter Z .N

Kamei

No evidence of

minutes of

meetings.

5/ 26/2010

Montserrado

co.(CDF)

010-05-

849

US$200,000.00

Act. Minister

Peter Z .N.

Kamei

No evidence of

minutes of



Date Description Claims # Check

#

Amount # Authorized

sign.

Comments

meetings.

GRAND.TOTAL US$800,000.00

Risk

537. Failure of the Ministers of Internal Affairs and Finance to comply with Section 8(IV) of

the Budget Law relating to CDF could result in misapplication or abuse of the Fund.

Recommendation

538. The Ministers of Internal Affairs and Finance should ensure that all transfers into the

CDF are supported by minutes of the SCDC and comply with the Budget Law of Liberia,

to prevent the misapplication or abuse of the Fund. This would ensure the effective

implementation of projects.


Status of implementation of prior audit recommendations

540. I present hereunder, summary of significant recommendations from my previous report

on the 2007/8 Fiscal Outturn. My review indicated that the recommendations were yet

to be implemented.

Table 6: Status of implementation of prior audit recommendations

AG’s Report on 2007/8

Fiscal Outturn Ref.

Recommendations yet to be implemented

1. Fiscal Outturn as financial

statement, change in

accounting basis. (Ref.

Para. 21-35)

The Ministry of Finance should restate the 2006/7 Fiscal Outturns to

show the effect of the change from cash basis to commitment basis

on its 2007/2008 Fiscal Outturn.

The MOF should compile Annual Accounts of the Consolidated Fund

and submit it to the Auditor-General four months after the end of the

fiscal year, as required under Regulation I.12(1), PFM Regulations,

2009.

2. Summary of Bank

Accounts Operated by

GOL (Ref. 81-100).

Deputy Ministry for Expenditures should produce the VOSCON bank

reconciliation result for which tax payer’s money was used to finance.

The Minister of Finance should explain the cause of duplication in

payments (i.e. General Account(US Dollars): 0220530000128

US$40,790.41;

General Account (LD): 0120530000112: L$145,377.07; and

Payroll Account (LD): 120530000107 L$2,956,402.92)

and ensure that bank reconciliation is performed on a daily basis due

to the volume of transaction involved.

The Comptroller-General and the other disbursing authorities i.e., the

Minister and Deputy Minister/Expenditures of the public accounts

should be jointly and severally held liable for the duplicated payments




Fiscal Outturn Ref.


and non-submission of the bank reconciliation statement.

The Comptroller-General should ensure that cash books are

introduced and balances reconciled regularly with bank statement

balances and remedial action taken on unexplained differences.

3. Comparison of

Commitment against

selected Payment

Vouchers and Cash

Management Committee

approved Listing. (Ref.

Para. 67 -74 )

The Deputy Minister for Expenditures should ensure that the CMC

listing is reconciled with the Payment Vouchers on a daily basis and

the report submitted to him and copied to the Finance Minister.

The Deputy Minister for Expenditures should report on actual

Expenditures and provide projections for Government Expenditures for

planning purposes.

The Deputy Minister for Expenditures should account for the reported

variances.

4. Approval of Cash

Commitments by the

Cash Management

Committee (CMC) (Ref.

Para. 112-116)

The Director in charge of CMC should explain the cause of the

disagreement between the figures.

Financial Statements produced by the Ministry should show monthly

Fiscal performance. This apart from assisting the Ministry in

monitoring its performance over the relevant period, would also

ensure that variances reported are promptly investigated and

corrective action taken. I, in this connection, advise that the Deputy

Minister for Expenditures ensures that the necessary changes are

reflected in the 2008/2009 Outturn.

The chairperson for the CMC during the period under review should

explain the purpose for charging theUS$10,000 against revenue.

Payment vouchers for these transactions should be presented to my

office for examination.

5. External Debt and Arrears

(Ref. Para. 127-132)

The Director in charge of Debt Management Unit should furnish me

with the balances on the External Debt portfolio of the Government of

Liberia as at July 1, 2007 and June 30, 2008. These should be

accompanied by the various loan agreements.

The Debt Management Unit should explain the variance of

US$84,999.76 and provide me with the relevant documentation for

the debt payment made.

6. Lack of due diligence in

approving payments by

BGA and Cash

Management Committee

(US$7,614,207.43)

(Ref. Para. 150-154)

Due diligence be observed by both BGA and CMC in the review of

payment vouchers. The Comptroller-General should furnish me with

the returned checks for the US$7,614,207.43 for my verification.

7. Non Retirement of

Transfers, Subsidies and

Operational Funds (Ref.

Para. 156-159)

All funds that remained unspent at the end of the fiscal year should

be retired in accordance with section 2217 of the Revenue Code of

Liberia (2000).

8. Need to centralize the Printing of value books and accounting forms should be made the




Fiscal Outturn Ref.


Printing of Value Books

and Treasury Forms (Ref.

Para. 170-174)

responsibility of the Comptroller- General. Ministries and Agencies

should be required to request for supplies from the Office of the

Comptroller-General, who would charge the cost of the consignment

to the vote of the relevant Ministry or Agency. These value books

should be pre-numbered and printed in booklet form with triplicate

copies that can be used for audit trail.

All value books and accounting forms shall be identified by pre-printed

serial numbers to be used as the basis of record and control.

9. Alleged Payment to NPA

1992 Retirees (Ref. Para.

181-184 )

The legal documents which underpinned the payment should be

provided.

Documentary evidence of 1992 retirees who benefited from such

payment should be submitted for my scrutiny.

Statement of Accountability

541. Financial irregularities amounting to US$33,941,455.53 were noted in the two fiscal

years under review. These irregularities involved under-asessment, and non-payment of

penalty on Real Property, unexplained variances between expenditures reported in the

2008/9 and 2009/10 Fiscal Outturns and that confirmed by line ministries and agencies

as well as failure to retire travel advances by some Government officials and other

employees. Ref. Annex 1.

Acknowledgement

542. I acknowledge the cooperation and assistance provided to the GAC engagement team by

the ministries and agencies during the audit of the Fiscal Outturns for the fiscal years

2008/9 and 2009/10. The efforts and commitment of the Consultants, Executive

Director, Audit Service, Engagement Managers and other members of the engagement

team in conducting the audit and reporting thereon are also graciously acknowledged.

AUDITOR-GENERAL’S OPINION ON THE 2008/9 AND 2009/10 FISCAL OUTTURNS

543. I have audited the accompanying 2008/9 and 2009/10 Fiscal Outturn Reports per Annex

(7), which comprise approved appropriations and related outturns for the respective

fiscal years as well as explanatory notes. These Reports have been prepared under the

historical cost convention.

Management Responsibility for Financial Statements

544. The Minister of Finance is responsible for the preparation and fair presentation of the

Fiscal Outturn Reports, in accordance with the extant financial regulatory framework of

Liberia. This responsibility includes designing, implementation and maintenance of

internal control relevant to the preparation and fair presentation of the Fiscal Outturn

Reports that are free from material misstatement, whether due to fraud or error,



selecting and applying appropriate accounting policies and making accounting estimates

that are reasonable in the circumstances.

Auditor-General’s Responsibility

545. My Responsibility is to express an opinion on those Fiscal Outturn Reports based on the

audit.

546. I conducted the audit in accordance with International Standards of Supreme Audit

Institutions(ISSAIs). An audit includes examination, on a test basis, of evidence relevant

to the amounts, disclosures and regularity of financial transactions included in the

Reports. It also includes an assessment of the significant estimates and judgments

made by MOF Management in the preparation of the Fiscal Outturn Reports, and of

whether the accounting policies are adequately disclosed.

547. I planned and performed my audit so as to obtain all the information and explanations

which I considered necessary to provide me with sufficient evidence to give reasonable

assurance that the Fiscal Outturn Reports are free from material misstatements, whether

caused by error, fraud or any other irregularity and that, in all material respect, the

Expenditures and revenues had been applied to the purposes intended by the Liberia

Legislature. In forming my opinion, I also evaluated the overall adequacy of the

presentation of information in the Fiscal Outturn Reports. I believe that my audit

provides a reasonable basis for the disclaimer opinion.

Basis of Disclaimer Opinion

548. The following considerations underpinned my opinion on the 2008/9 and 2009/10 Fiscal

Outturn Reports:

i. Variances were noted between the Expenditures confirmed by the Ministries

and Agencies as incurred and respective Expenditures conveyed in the Fiscal

Outturn Reports for 2008/9 and 2009/10. The variances amounted to US$

173,091.83 and US$7,905,561.72 for the fiscal years 2008/9 and 2009/10

respectively. In addition, there were variances amounting to

US$15,230,876.86 and US$29,135,289.21 for the respective fiscal years on

grants and aid, as reported by the Ministries and Agencies on one hand, and

the Fiscal Outturn reports, on the other. The variances observed denied

assurance that the Fiscal Outurns Reports for 2008/9 and 2009/10 were

reliable.

549. Seven (7) Mnistries and Agencies of GoL, as listed in Annex 2, failed to respond to my

confirmation request to provide information on the Revenues and Expenditures received

and disbursed by them within the fiscal years 2008/9 and 2009/10. As a result of the

insufficient evidence had, I was thus not able to validate representations made in the

Fiscal Outturn Reports on Revenue from Real Property, Duties and Taxes from

International Trade, Revenue from Motor Vehicles, Sales and related Taxes, Direct,

Payroll, Bisiness Profit Taxes and Stumpage and related Taxes as well as the

Expenditures of the Minisitries and Agencies.



ii. 2008/9 and 2009/10 Fiscal Outturn Reports’ representations on Consolidated

Fund Closing Balance as of June 30, 2009 and 2010 were not valid because

other accounts such as Transitory Accounts, Balances on Operations of

Ministries and Agencies and Liberia Foreign Missions Accounts, constituting

part of the Consolidated Fund, were excluded. Additionally, the accounting

basis for recognition of Expenditures was changed from commitment basis in

2007/8 to cash basis in 2008/9. This basis was changed again in 2009/10 to

“Budget cash Expenditures”.The change from one accounting basis to

another was not annotated, to give indication of what the CF cash position

would have been but for the changes. As the CF cash position is an integral

component of the Fiscal Outturns Reports, it rendered the Reports not

reliable.

iii. Financial irregularities amounting to US$33,941,455.53 were noted in the

two fiscal years under review. These irregularities involved under-asessment,

and non-payment of penalty on Real Property, unexplained variances

between expenditures reported in the 2008/9 and 2009/10 Fiscal Outturns

and that confirmed by line ministries and agencies as well as failure to retire

travel advances by some Government officials and other employees. The

irregularities rendered the respective Outturns in the 2008/9 and 2009/10

Fiscal Outturn Reports not fairly stated in all material respects. Ref. Annex

1.

Auditor-General’s Disclaimer Opinion

550. In my opinion, because of the significant uncertainties inherent in the matters listed in

the basis for disclaimer of opinion above, I am unable to express an opinion as to

whether the Fiscal Outturns for 2008/9 and 2009/10, submitted by the Minister of

Finance and set out in Annexes 7A & & 7B, present fairly in all material respects the

outturns achieved in the respective fiscal years and are in compliance with extant

Financial Management Regulatory Framework of Liberia.


Acting Auditor-General, R.L.

February 2012

ANNEX 1

Accountability Schedule

#. Auditor General’s

Report reference

Finding Amount to be

accounted

for (US$)

Amount to be

account for LD$

Officer responsible

Para. 507 – 525 Unexplained variances between expenditures reported in the 2008/9 and 2009/10 Fiscal Outturns and that confirmed by line ministries and agencies.

173,091.83 7,905,561.72

Minister of Finance, Augustine K. Ngafuan; Comptroller and Accountant General-John Davies and Deputy Minister for Expenditure-Arthur Fumbah

4. Para. 357-359 Total penalty and interest under-levied Real Property owners in the 2008/9 fiscal year by the RETD.

67,192.00 Principal Director of RETD, MOF.

5. Para. 538-544 Some officials and staff of the Ministry of State & Presidential Affairs, Ministries of Finance and Foreign Affairs, who failed to submit travel disbursement/settlement form and related travel documents to retire travel costs totaling US$548,067.80. Ref. Annex 4.

90,880.00 208,671.11 153,664.50

Minister Edward McClain et al Minister Augustine K. Ngafuan et al and Former Minister Olubanke King Akerele et al, as listed in Annex (4, 4A & 4B).

6. Para. 548-552 Absence of bidding documents such as list of the participating bidders, their profile and qualifications, and the qualification criteria applied, bid prices, the bid evaluation criteria, a summary of the evaluation of bids, summary of any review proceedings and decisions thereon, among others, to support payments effected on works amounting to US$11,907,460.40and Us$13,588,598.47 made in the fiscal years 2008/2009 and 2009/2010 respectively. Ref. Annex (5).

11,907,460.40

13,588,598.47

Former Minister of Public Works-Mr. Lusine Donzo

Total 33,941,455.53

Annexes

ANNEX (2): THIRD-PARTY CONFIRMATION SOUGHT FOR PURPOSES OF AUDIT

# Audited Institution Confirmation of

expenditures not submitted

1 Ministry of Finance X

2 Ministry of Agriculture X

3 Ministry of National Defense X

4 National Bureau of Investigation X

5 Ministry of Foreign Affairs X

6 Ministry of Internal Affairs X

7 Liberia Institute for Geo-Information System X

Legend

X: - Documentation not submitted as requested.

ANNEX 3A

UNDER-ASSESSMENT OF TAXES AND PENALTY

Date Importer/Consignee Classification Description Actual CIF Actual Duty Declared CIF Duty Paid Outst. Duties Amount Due Penalty Address Remarks

4/15/2009 1 Africa Industries Business Entity Ethenal 26,722.50 6,939.48 26,722.50 5,439.48 1,500.00 1,500.00 Sayon town Understated Volumn

9/22/2009 1AFRICA INDUST.LIB LTD BUS. ENTITY NATURAL ALCOHOL 27,197.28 11,351.43 27,197.28 8,631.70 2,719.73 2,719.73 SAYON TOWN UNDERSTATED VALUE

10/28/2009 A. B Unity Trading Center Business Entity Various Goods 19,656.63 8,717.16 10,206.63 4,136.01 4,581.15 Water Street Underdeclared items/Understated Value/Bivac Inspect.

10/28/2009 A. Jalloh Bus. Center Bus. Entity Wheat Flour 50,948.74 19,482.78 50,948.74 16,730.72 2,752.06 Rally Time Omission of Duty

10/28/2009 A. Kaba Business Center Business Entity Various Goods 62,630.00 15,106.36 31,500.00 14,338.80 767.56 Vai Town Understated Value/DI

12/8/2009 A.D. M.T Company Business Entity Motorcycles 67,664.95 16,287.49 30,520.00 10,603.52 5,683.97 200,000.00 Carey Street Understated value/BIVAC

12/2/2009 A.D.M.T. Company Business Entity Motorcycle Set 60,658.50 14,169.98 30,966.20 10,066.48 4,103.50 Carey Street Understated Value

12/8/2009 A.Nyumah Fortin Bus Cent. Business Entity Assorte Goods 14,343.98 4,960.00 6,698.00 2,572.02 2,387.98 Weterside Undestated Value

11/18/2009 A1 Auto parts Business Entity Vehs/Asst.Goods 32,647.32 5,690.95 11,294.50 1,822.06 3,868.89 200,000.00 N/A Undeclared

11/18/2009 Aaron Wesseh Individual Clothes & Shoes 703.51 188.51 188.51 200,000.00 Jacob Town Excess

12/18/2009 AARON WESSEH INDIVIDUAL VEHICLES/PE 16,643.14 3,120.07 12,272.97 2,920.41 199.66 72ND PAYNESVILLE UNDERSTATED

12/4/2009 Abdinasir A Aden Individual Vehicles 20,881.80 8,388.21 15,276.43 6,136.53 2,251.68 Broad Street Understated Value

12/4/2009 Abdoulaye Kieta Individual Veh. Personnal Effect 19,807.25 4,331.37 14,171.64 2,661.53 1,669.84 Gardnersville Rd. Understated Value

9/22/2009 ABDULLAH S. DONZO INDIVIDUAL VEHICLES/PE 21,361.52 5,134.21 24,455.08 4,205.36 928.85 MONROVIA OMISSION

9/23/2009 Abi Jaoudi & Azar Trading CorpBusiness Entity Mineral Water 10,648.00 5,738.49 10,648.00 4,049.31 1,689.18 Freeport Understated Weight

9/25/2009 Abi Jaoudi & Azar Trding Bus. Entity S/Mkt 19,238.64 3,580.70 19,226.64 3,524.22 56.48 Freepotr Understated value

6/19/2009 Abi Jaoudi & Azar Trding Bus. Entity S/Mkt 11,367.46 2,528.78 11,102.23 2,439.65 89.13 Freeport Understated value

6/11/2009 Abid Nasir Aden Individual Vehicles 26,825.50 8,963.22 16,257.28 4,407.85 4,555.37 Broad Street Omission of 20% Exc.

9/22/2009 Aboubacar Jalloh Bus. ShopBus. Entity Men Shoes 17,957.80 4,331.42 10,847.06 3,777.16 554.26 Water St. Understated value

10/7/2009

Aboubaccar Jalloh Bus.

Center Business Entity Various Goods 13,141.73 6,210.85 8,159.43 3,847.08 2,363.77 Waterside Understated Value/DI

4/8/2009 Aboubaccar Jalloh Bus.

Center Business Entity Various Goods 16,463.00 3,970.88 9,425.00 3,281.79 689.09 Water Street Understated Value/DI

9/16/2009 Abu Kwesiah Business Entity Various Goods 19,970.20 8,018.17 16,945.52 4,385.28 3,632.89 Sinkor, Fish Market Understated Value/DI

9/23/2009 ABU TRADING CENTER BUS. ENTITY ASST.GOODS 11,051.15 5,489.76 11,051.15 4,307.30 1,182.46 WATER STREET UNDERSTATED VALUE

9/16/2009 Abu Trading Center Bus. Entity Asst Goods 50,846.60 13,630.09 22,093.50 8,069.88 5,560.21 Waterside Understated value

10/7/2009 Adelo Used Cars Bus. Entity Vehs/Goods 36,195.10 12,050.09 23,547.39 9,207.68 2,842.41 Carey Street Understated value

9/14/2009 Aderis Garments Business Entity Used Clothing Nil 318.72 Nil Nil 318.72 Water Street Excess

9/14/2009 AFRICA CHRIST. FELLOWSHIPRELIG ORGANIZATIONATHLETIC SHOES 46,635.74 11,901.44 9,583.00 10,908.07 993.37 5TH STREET SINKOR UNDERSTATED

8/18/2009 Africa Industrial Lib. Inc Business Entity Assorted Goods 22,638.00 7,384.46 22,638.00 5,120.66 2,263.80 Sayon Town Understated NCRF Penalty

2/20/2009 Africa Industries Lib Bus. Entity Assorted Goods 57,414.56 6,036.38 22,638.00 5,120.66 917.72 200,000.00 Sayon Town Undeclared

7/15/2009 Africorp Bus. Entity Parafin Wax 36,608.40 3,660.84 36,608.40 1,830.42 1,830.42 Freeport Wrong Rate

9/11/2009 Africorp Inc. Bus. Entity Onions & Garlic 12,585.00 2,025.56 11,337.50 1,824.77 200.79 Freeport Undersated Invoice(PSI)

8/22/2009 Afropa-Liberia Bus. Entity Wheat Flour 104,259.40 39,282.51 104,259.40 13,267.14 26,015.37 Sayon Town Omission of %5 Duty

7/14/2009 Aisha & Children Bus. Bus. Entity Assorted Goods 11,902.01 6,653.36 11,902.01 3,109.49 3,543.87 Water Street Understated NCRF Penalty

8/4/2009 Ajota Bus. Center Business Entity Assorted Goods 7,060.75 3,406.91 7,060.75 2,651.42 755.49 Water Street Understated NCRF Penalty

8/28/2009 Alantic Life

Enterprise/C/oclemeau

Urey Business Entity Various Goods 30,608.33 18,845.55 30,608.33 12,295.48 6,550.07 Mechlin Street Omission of 20% Excise Tax

8/11/2009 ALDRIANA BUS. CENTER BUS. ENTITY ASST.GOODS 11,206.70 5,479.86 11,206.70 4,281.12 1,198.74 WATER STREET UNDERSTATED VALUE

8/11/2009 ALDRIANA BUS. CENTER BUS.ENTITY ASST.GOODS 18,677.12 5,129.68 12,131.83 4,392.46 737.22 WATER STREET UNDERSTATED

7/29/2009 Aldriana Business Center Business Entity Assorted Goods 25,042.76 6,054.83 13,996.56 4,811.92 1,242.91 Waterside Understated Value

7/17/2009 Alex Debee Individual Veh. Personnal Effect 23,714.93 4,396.00 21,415.24 4,114.37 281.63 U.N. Drive Understated Value

7/28/2009 Alex Dedee Individual Vehicles/PE 14,225.95 5,547.16 N/A 3,620.34 1,926.82 U.N. Drive underStated Value

7/13/2009 Alexander Daniels Business Entity Various Goods 30,766.66 4,995.12 3,454.96 600.02 4,395.10 Benson & Buchanan StreetsUnderstated KVA on Generator

9/6/2009 Alexander Daniels Business Entity Various Goods 11,587.91 3,735.09 11,187.01 1,948.79 1,786.30 Tubman Boulevard Omission of 20% Excise Tax

7/28/2009 Alexander Daniels Individual Assorted Goods 7,782.00 1,620.21 - 1,009.60 610.61 200,000.00 Benson Street Undeclared

4/21/2009 ALEXANDER S. KROMAH INDIVIDUAL VEHS. P/E 13,864.00 4,880.46 16,161.10 2,985.18 1,895.28 FRONT STREET OMISSION OF 20% EXC

3/30/2009 Alhassae Trading Center Business Entity Used DAF Mini. Bus. 18,526.88 5,414.54 6,724.66 2,550.92 2,863.62 Randall Street Understated Value/DI

1/5/2009 Alice M. Kawa Individual Used Landcruiser 8,500.00 1,595.45 1,595.45 Monrovia MSF Belgium Auction

5/12/2009 Aliou Keita Bus. Center Bus. Entity Assorted Goods 19,628.90 5,102.87 10,696.73 3,799.13 1,303.74 Rally Time Understated Value/DI

8/8/2009 Aliou M. Bility Individual Assorted goods 32,892.84 9,518.87 14,317.07 5,417.01 4,101.86 V.P. Road/Old Road underStated Value

4/2/2009 Alissa Inga-Joy & Co. Bus. Entity Assorted Goods 3,087.90 548.49 548.49 200,000.00 Carey Street Undeclared

6/24/2009 All Business Supply Bus. Entity Assorted Goods 38,869.00 14,907.97 38,869.00 10,748.99 4,158.98 Randall Street UnderStated NCRF Pen

8/11/2009 All God's Children Relg Org. Asst Goods 22,991.90 4,371.73 21,090.00 4,164.31 207.42 Randall Street Understated value

3/18/2009 Alvin Brown Businessman U/Vehs/P/ Effect 38,848.01 11,425.32 6,528.00 3,502.94 7,922.38 N/A Bivac Destination Insp.

7/6/2009 Amadou Janeh Bus. Entity Assorted Goods 15,216.25 5,253.54 4,572.64 1,150.00 4,103.54 200,000.00 Waterside False Declaration

8/6/2009 Amadou Tanyan Bus. Entity Assorted Goods 16,689.85 4,011.11 12,258.33 3,897.11 114.00 Waterside Understated Value

3/4/2009 Amadu Neckies Individual Vehs.P/E 22,936.99 7,628.79 15,630.75 4,328.08 3,300.71 9th street Understated value

7/31/2009 Amadu Neckies Individual Vehs.P/E 24,767.61 8,133.25 13,521.07 3,643.95 4,489.30 Congo Town Understated value

8/3/2009 AMADU NECKLES INDIVIDUAL VEHICLES/PE 26,874.44 4,482.52 20,607.18 3,699.36 783.16 9TH STREET SINKOR UNDERSTATED

7/7/2009 AMANDA NYAFOR INDIVIDUAL VEHICLES/PE 16,530.80 3,800.82 17,084.64 2,968.91 831.91 BARDNESVILLE OMISSION

8/13/2009 Amara M. Kromah Businessman Assorted Goods 2,960.00 523.90 Nill Nill 523.90 200,000.00 N/A Undeclared

8/13/2009 AMB. DEW T-WLEH MAYSONINDIVIDUAL VEHICLES & CPU 52,264.51 10,540.14 40,299.53 7,564.22 2,975.92 SINKOR, AIRFIED UNDERSTATED

6/9/2009 Amelia Liberty Individual Assorted Goods 10,704.17 1,879.47 1,478.30 401.17 200,000.00 Paynesville Excess

5/13/2009 Aminata K. Toure Individual Used Items 2,114.55 361.26 361.26 200,000.00 Mamba Point Excess & Undeclared

5/13/2009 Aminata Soaure Bus. CenterBusiness Entity Various 19,679.29 9,016.32 9,096.88 4,206.29 4,810.03 Randall Street Understated Value

2/25/2009 AMK Fashion Store Business Entity Used Clothes/Shoes 30,730.02 4,946.00 17,757.93 4,758.24 187.76 Water street Understated Value

6/25/2009 Anatole Paye Businessman Assorted Goods 8,008.60 3,662.13 7,833.60 2,468.14 1,193.99 N/A Bivac Destination Insp.

4/17/2009 ANC Brother's Enterprise Inc.Business Entity USED tyres (R 12 & 13) 12,427.83 4,992.17 10,361.72 4,162.31 829.86 200,000.00 Amagashie, PaynesvilleExcess

6/17/2009 ANNIE KAMARA INDIVIDUAL VEHICLES/PE 18,661.26 4,785.68 14,548.69 3,779.72 1,005.96 BROAD STREET UNDERSTATED

6/19/2009 Annie S.Kromah Businesswoman Mattresses/P. Can 655.00 198.11 Nill Nill 198.11 N/A EXCESS

5/16/2009 ANSU BILITY BUS. ENTITY VEHS. P/E 13,844.20 4,921.48 10,994.29 2,282.24 2,639.24 WATER STREET OMISSION OF 20% EXC

ANNEX 3A



6/19/2009 Ansu O. Duala Individual Used Items 7,800.00 1,948.42 4,524.77 1,152.96 795.46 200,000.00 GSA Road Understated Value/DI

6/25/2009 Ansu O. Dualu Individual VehIcles/ PE 17,956.19 3,660.76 13,544.52 3,081.80 578.96 GSA Road Understated value

6/22/2009 Ansu O. Duslu Individual Mini Tanker 37,778.00 6,080.37 19,983.20 3,201.81 2,878.56 GSA Road Paynesville Understated Value

6/26/2009 ANSUMANA KENNEH /SUPERBUS.ENTITY VEHICLES/PE 22,386.00 8,014.09 27,132.98 5,266.75 2,747.34 WATER STREET OMISSION

6/29/2009 Anthony Paska Individual VehIcles/ PE 26,747.61 4,777.64 18,996.56 3,300.21 1,477.43 23 Center Street Understated value

6/29/2009 Anthony Gbaye/Atlantic Bus. Entity Hummer H2 26,285.00 4,230.58 24,116.27 3,881.51 349.07 Broad & Warrant StreetsUnderstated Value

5/16/2009 ANTHONY PASKA INDIVIDUAL VEHS. P/E 39,145.40 13,627.19 16,878.52 3,116.01 10,511.18 CENTER STREET OMISSION OF 20% EXC

5/21/2009 ANTHONY PASKA INDIVIDUAL VEHICLES/PE 19,322.12 7,047.83 23,474.29 4,006.94 3,040.89 BROAD STREET OMISSION

5/13/2009 AOP BUS. ENTITY ASST.GOODS 6,105.60 3,105.92 6,105.60 2,455.17 650.81 MECHLIN STREET UNDERSTATED VALUE

5/13/2009 Apu Morris Individual Veh. Personnal Effect 18,524.20 5,437.40 10,044.13 3,568.35 1,869.05 Paynesville Duport Omission 20% Excess

11/27/2009 Arthur Perry Individual Various Goods 10,181.73 4,544.64 5,750.25 3,222.23 1,322.41 Sinkor Understated value/Bivac Destination Inspection

3/4/2009 Ask Shopping Center Business Entity Various Goods 38,473.73 17,084.52 9,250.11 4,129.53 12,954.99 Waterside Understated Value/DI

3/9/2009 Asw Business Center Business Entity Various Goods 9,457.06 3,814.45 6,193.41 2,547.20 1,267.25 Waterside Omission of 20% Excise Tax

2/12/2009 ATCO Bus. Entity Wheat Flour 26,775.00 11,505.90 26,775.00 9,805.04 1,700.86 Clara Town omission of of 5% Duty

5/25/2009 Atlantic Wireless Lib. Inc Business Entity Various 269,259.24 64,789.47 264,948.25 63,771.10 1,018.37 Randall Street Understated Value

4/15/2009 Atlas Gas Business Entity Cooking Gas 7,844.76 2,815.49 7,844.76 1,808.22 1,007.27 Camp Johnson Road Wrong Classification

4/7/2009 AUGUSTUS SAAH INDIVIDUAL VEHICLES/PE 19,434.00 5,169.44 13,756.91 2,214.18 2,955.26 GARDNESVILLE UNDERSTATED

4/11/2009 Austin Doe Individual Used Tyres (R15) 395.15 158.75 Nil Nil 158.75 19 Broad Street Underdeclared items/Understated Value/Bivac Inspect.

4/7/2009 Avargo International Inc. Business Entity Assorted Goods 15,670.73 5,375.28 8,970.23 3,318.95 2,056.33 200,000.00 Randall Street Excess

4/9/2009 Ayouba A. Sirleaf Individual Vehicles/PE 23,495.32 6,396.00 20,302.08 3,742.81 2,653.19 Jacob's Town underStated Value

6/9/2009 Ayouba Fofana Individual Vehicles/PE 20,904.63 6,663.42 21,393.08 3,877.08 2,786.34 Sinkor Fish Market Omission of 20% Exc.

4/14/2009 A-Z Corporation Bus. Entity Parboiled Rice 25,853.47 1,128.72 25,853.47 1,128.72 Vai Town Omission of Duty & Fees




5/4/2009 A-Z Corporation Bus. Entity Parboiled Rice 28,440.15 516.95 28,440.15 516.95 Vai Town Omission of Duty & Fees

5/13/2009 A-Z Corporation Business Entity Asstd. Fiesta Cream 99,983.94 10,743.28 99,983.94 10,107.52 635.76 Vai Town Wrong Tariff Rate

3/6/2009 B & B Mafata Bus. Center Business Entity Assorted Goods 10,255.49 4,423.70 7,415.61 3,208.17 1,215.53 N/A Understrated Value

6/9/2009 B. Mafata Bus. Center Bus. Entity Assorted Goods 13,264.65 6,564.41 13,264.65 3,725.77 2,838.64 Randall Street UnderStated NCRF Pen

3/3/2009 BAGA Company Ltd Business Entity Motocycles 29,391.00 13,378.78 6,450.00 2,936.04 10,442.74 Paynesville, Redlight Underdeclared items/Understated Value/Bivac Inspect.

4/17/2009 Balde Bah Corporation Bus. Entity GAC Audit Report 200,000.00 Waterside Omission of Pen. On SP#077

6/9/2009 Baleya Bah Business CenterBus. Entity General Merchandise 23,180.30 6,107.44 15,010.07 5,365.93 741.51 200,000.00 Waterside Excess

6/24/2009 BARRY BRO, STORE BUS.ENTITY ASST.GOODS 18,030.67 4,992.60 12,110.08 4,649.01 343.59 WATER STREET UNDERSTATED

6/9/2009 Beauty Finders Bus. Entity General Merchandise 11,097.10 2,651.23 7,135.42 2,112.71 538.52 200,000.00 Front & Gurley St Understated Value/DI

6/9/2009 Bedell Sandi Individual New Tyres 213.50 42.38 42.38 200,000.00 06-510-735 Undeclared

6/19/2009 Bendu A. Wreh Returnee Personal Effects 3,091.52 497.58 497.58 Catholic Junction Excess

6/19/2009 Bendu Carter Individual Assorted Goods 3,231.77 1,762.19 1,762.19 200,000.00 Perry Street Undeclared

4/30/2009 Bendu Kamara Individual Vehs/Goods 14,402.39 3,933.74 13,038.09 2,966.93 966.81 Ray Hill Understated Value

10/18/2008 Bendu Kamara Individual Vehs.P/E 19,944.25 5,081.37 24,545.35 4,295.70 785.67 Ray Hill Virginia Omission of 20% Excise

4/23/2009 Bendu S. Sarnoh Bus. Entity Slippers 21,704.40 5,235.10 9,639.00 3,356.30 1,878.80 Randall Street Understated Value

5/8/2009 Benefit Trading Int'I Inc. Business Entity Watches & Writing Park 377.80 60.69 60.69 200,000.00 17th Street Undeclared

3/9/2009 Bestway Cargo Business Entity Assorted Goods 21,251.20 7,521.12 8,729.69 3,379.76 4,141.36 N/A Bivac Destination Insp.

1/20/2009 Bestway Cargo Handling Business Entity Various Goods 8,377.95 3,945.95 6,384.89 2,768.26 1,177.69 Clara Town, Bushrod IslandUnderstated value/Bivac Destination Inspection

4/3/2009 Bethel World Outreach Religious Org. Vehicles & P/E 32,603.20 12,487.58 41,309.59 11,010.16 577.42 Congo Town Omission of 20% Excess

10/13/2008 BHP Billiton Exploratior Individual Vehicles 53,153.08 32,726.35 51,193.00 25,683.53 7,042.82 Oldest Congo Town Underdeclared items/Understated Value/Bivac Inspect.

5/4/2009 BHP Billiton World Expt. Business Entity Vehicles 26,285.80 9,855.87 25,315.00 6,605.95 3,249.92 200,000.00 Congo Town Understated value/BIVAC

12/4/2008 BHP Billiton World Expt. Business Entity Vehicles 67,136.00 40,632.10 51,136.00 25,654.19 14,977.19 200,000.00 Congo Town Understated value/BIVAC

11/27/2009 Bill Brothers Bus. Entity Used Tyres 1,151.60 368.98 368.98 JJY Excess

3/4/2009 BIVAC International Bus. Entity Assorted Goods 200,000.00 Broad Street Underclared

5/22/2009 BIVAC International Bus. Entity Assorted Goods 200,000.00 Broad Street Excess

5/16/2009 BIVAC International Bus. Entity Used Clothes 200,000.00 Broad Street Excess

1/5/2009 BIVAC International Bus. Entity Assorted Goods 200,000.00 Broad Street Excess

5/15/2009 BIVAC International Bus. Entity TV Stands/Atenna 200,000.00 Broad Street Excess

3/23/2009 BIVAC International Bus. Entity Used Clothes 200,000.00 Broad Street Excess

3/23/2009 BIVAC International Bus. Entity Lady Shoes 200,000.00 Broad Street Excess

3/17/2009 BIVAC International Bus. Entity Vehicles & Goods 200,000.00 Broad Street Excess & Undeclared

3/26/2009 BIVAC International Bus. Entity Used Tyres 200,000.00 Broad Street Excess

10/12/2009 BIVAC International Bus. Entity Used Tyres 200,000.00 Broad Street Excess

5/20/2009 BIVAC International Bus. Entity Assorted Goods 200,000.00 Broad Street Excess & Undeclared

12/13/2008 BIVAC International Bus. Entity Vehicles & P/E 200,000.00 Broad Street Excess on PSI Consignment

2/26/2009 BIVAC International Bus. Entity Personal Effects 200,000.00 Broad Street Excess on PSI Consignment

1/7/2009 Bivac International Business Entity Penalty - - - - - 200,000.00 Broad Street Untrue declaration

12/10/2008 BIVAC International Bus. Entity Excess Penalty 200,000.00 Broad Street Excess from PSI Consinment

4/3/2009 Bivac International Business Entity Nil Nil Nil Nil Nil Nil 200,000.00 Broad Street Untrue Declaration

1/14/2009 Bivac International Business Entity Mattresses 525.00 - - - - 200,000.00 Broad Street Undeclared

4/2/2009 BLAMA KOLLIE INDIVIDUAL VEHICLES/PE 14,849.00 4,280.25 16,358.49 3,032.40 1,247.85 BUZZY QUARTER OMISSION

4/12/2009 Blessing Business Center Bus. Entity GAC Audit Report 200,000.00 Mechlin Street Omission of Pen. On SP#017

2/26/2009 Blojah Reed Individual VehIcles/ PE 25,699.00 14,970.49 27,681.96 4,986.78 9,983.71 102 Jallah Town Omission Excise Tax

4/8/2009 Bomboli Bus. Center Bus. Entity Slippers 20,438.41 4,929.74 4,596.90 332.84 Waterside FOC Consignment

3/26/2009 Bridgeway Corp. Business Entity Assorted Wine 19,881.65 14,298.78 19,881.65 8,018.91 6,279.87 Clara town Understated Volume

11/27/2008 Bridgeway Corp. Business Entity Assorted Wine 19,472.85 14,080.69 19,472.85 7,865.44 6,215.25 Clara town Understated Volume

ANNEX 3A



2/18/2009 Bridgeway Corporation Business Entity Pomo Full Cream 60,000.00 6,447.00 60,000.00 5,805.00 642.00 Clara Town Wrong Tariff Rate

8/15/2008 Business System Solution Business Entity Various 9,252.45 4,603.61 6,551.94 3,142.99 1,460.62 Carey Street Understated Value

8/15/2008 C.C.O. Business Inc. Bus. Entity GAC Audit Report 200,000.00 Mechlin Street Omission of Pen. On SP#072

8/15/2008 Capital Builders Inc. Bus. Entity Assorted Goods 22,673.17 4,795.20 22,673.17 3,832.46 962.74 Vai Town Wrong Classification

2/17/2009 Caroline Business Center Bus. Entity Assorted Goods 11,897.52 3,431.46 7,792.18 2,988.40 443.06 Vai Town Understated Value/DI

2/18/2009 Caroline Frozen Food Bus. Entity African Mixed Fish 668,735.00 64,700.12 185,625.00 17,959.22 46,740.90 Sayon Town Understated Value/DI

1/27/2009 Caroline Frozen Food CenterBus. Entity Frozen Pork Tails 31,114.08 5,840.11 21,328.00 4,003.27 1,836.84 Sayon Town Understated Value/Invoice

2/12/2009 Center Bank of Liberia Liberia Bank Notes 996,885.53

1/26/2009 Cestos Trading Center Business Entity Rubber Slippers 13,940.00 4,298.58 8,750.00 3,046.75 1,251.83 - Randall Street Undeclared

1/30/2009 Chain Bus. Center Bus. Entity Photocopier/cans 530.00 233.20 233.20 200,000.00 Randall Street Undeclared

3/3/2009 Charles Beh Bus. Center Business Entity Gen. Merchandise 29,445.73 8,085.97 13,007.34 4,954.19 3,131.78 Randall & Water St. Understated Value

2/26/2009 Charles Beh Bus. Center Business Entity Various Goods 12,336.15 3,481.35 6,954.00 2,610.89 870.46 Randall Street Understated Value/DI

1/28/2009 Charles Beh Business CenterBus. Entity Assorted Goods 12,952.99 3,124.26 7,039.56 2,405.63 718.63 Randall Street Understated Value/DI

2/3/2009 Charles J. Mend Individual Entity Assorted Goods 11,284.91 2,883.05 7,005.00 2,302.43 580.62 200,000.00 Somalia Drive Undeclared

1/27/2009 Cheatou Bros Inc. Bus. Entity Frozen Boneless 61,800.00 16,639.86 14,852.88 1,786.98 Sayon Town Understated Value

2/12/2009 Chosen Point Enterprise Inc.Business Entity Various Goods 19,642.28 7,360.51 7,155.45 2,834.39 4,526.12 Logan Town, Bushrod IslandUnderstated value/Bivac Destination Inspection

1/16/2009 CHRISTIAN BAKER, JR. INDIVIDUAL VEHICLES/PE 11,406.00 4,102.23 10,342.95 2,051.25 2,050.98 SINKOR OMISSION

11/27/2008 Christiana Business Center Bus. Entity General Merchandise 19,554.36 5,069.47 12,113.85 4,483.23 586.24 200,000.00 Vai Town Understated Value/DI

7/10/2008 Christiana Prosperity Bus. Entity Motorcycles 29,408.00 7,093.21 16,493.40 5,743.01 1,350.20 Vai Town Understated Value

11/25/2008 Chuck Morrison Individual Vehs/Goods 19,380.56 7,322.68 8,364.00 285.87 7,036.81 200,000.00 Capitol Hill Excess

1/21/2009 CICO Assorted Construction 387.88

1/14/2009 CICO/MPW Trans Belt 6,458.07

11/27/2008 City Builders Business Entity Asst. Goods 73,820.90 16,392.42 30,289.10 10,137.30 6,255.12 Freeport Understated Value

12/5/2009 City Builders Inc Business Entity Roofing Cement 24,506.59 5,911.00 24,506.59 5,124.33 786.67 Freeport Wrong Classification

12/10/2008 City Builders Inc. Bus. Entity Electric Heater 34,933.37 15,901.67 14,462.58 5,701.87 10,199.80 Freeport Understated Value

2/26/2009 City Bus. Services Bus. Entity Vehicles & P/E 33,870.24 13,074.16 26,747.38 9,767.93 3,306.23 Broad Street Understated Value

3/17/2009 City Bus. Services Bus. Entity Vehicles & P/E 32,926.00 12,200.12 31,796.89 9,216.76 2,983.36 Broad Street Undersated Value/DI

3/15/2009 City Bus. Services Bus. Entity Vehicles & P/E 43,442.23 15,709.13 33,557.23 8,907.54 6,801.59 Broad Street Understated Value/DI

3/9/2009 City Business Service Business Entity Veh. Personnal Effect 52,692.20 9,837.72 34,579.48 6,442.15 3,395.57 49 Broad Street Understated Value

3/13/2009 CITY MOTORS INC BUS. ENTITY VEHICLES 22,892.64 7,193.83 21,051.02 5,626.80 1,567.03 RANDALL STREET UNDERSTATED VALUE

2/3/2009 City Motors Inc. Bus. Entity Vehs & Engine 24,770.25 3,986.77 20,650.96 3,323.78 662.99 Freeport Understated value

1/8/2009 City Used Car Bus. Entity Vehicles 32,228.00 5,755.29 27,855.01 5,228.38 526.91 Capital Bye-Pass Understated Value/DI

2/13/2009 CITY USED CAR CENTER BUS. ENTITY VEHICLES 63,706.31 20,002.82 51,123.85 9,903.94 10,098.88 CAPITOL BYE PASS UNDERSTATED VALUE

1/29/2009 City Used Cars Bus. Entity Used Vehicle 33,864.00 6,356.32 27,855.01 5,228.38 1,127.94 Capitol Bye Pass Understated value

3/20/2009 City Used Cars Center Business Entity Vehicles 33,864.00 6,212.77 N/A 5,816.87 395.90 Capital Bye Pass underStated Value

3/23/2009 City Used Cars Center Business Entity Vehicles 21,542.00 7,529.56 28,245.04 5,840.67 1,688.89 Capital Bye Pass Omission of 20% Exc.

3/6/2009 City Used Cars Center Business Entity Vehicles & Shoes 73,172.14 17,715.08 74,483.51 14,488.18 3,226.90 Capital Bye Pass Omission of 20% Exc.

4/1/2009 Clarke Adah Individual Assorted Goods 1,459.54 403.71 403.71 50,000.00 UN Drive Excess/Undeclared

3/19/2009 CLLR. JAMES MAYSON INDIVIDUAL VEHICLES/PE 21,467.07 6,941.04 38,270.71 6,757.02 184.02 FOREIGN AFFAIRS OMISSION

12/23/2008 Collective Inn Bus. Center Bus. Entity Assorted Goods 17,252.82 4,839.66 7,849.26 2,854.07 1,985.59 Red Light Understated Value

3/3/2009 Congret Bus. Center Bus. Entity Rubber Slippers 21,616.00 7,826.46 12,000.00 4,387.32 3,439.14 200,000.00 Water Street Understated Value/BIVAC DI

11/26/2008 Continental Mach. Supp. Bus. Entity Motor Grader 64,260.00 15,499.51 64,260.00 8,623.69 6,875.82 Barnesville Omission of 10% Ncrf

11/26/2008 Coo-Coo Adighide Lib. Returnee P/Effects 31,559.40 8,927.39 5,927.00 1,566.08 7,361.21 200,000.00 False Declaration

11/26/2008 Cuma Barclay Individual Assorted Goods 2,305.20 342.82 342.82 200,000.00 11th Street Excess

1/29/2009 D. Wolobah Selma Individual Vehs.P/E 9,514.82 5,398.80 15,011.71 3,195.17 2,203.63 Sinkor Airfield Omission of 20% Excise

11/24/2009 D.M.D General Enterprise Business Entity Various 10,332.80 4,685.30 5,992.51 2,717.32 1,967.98 Mechlin Street Understated Value

9/6/2006 Daniel B. Malba Individual Used Toyota Carina 1,230.26 230.92 - - 230.92 - Paynesville Local Purchase

5/10/2006 David Jones Individual Veh./Personnal Effect 24,460.00 5,590.89 20,646.71 4,608.89 982.00 Camp Johnson Road Understated Value

10/25/2005 David Moses Businessman Assorted Goods 16,313.68 4,766.85 8,232.40 2,259.28 2,507.57 N/A Understrated Value

6/24/2009 David Wrotto Individual Vehs/Goods 20,348.50 6,614.43 6,248.72 365.71 15th Street Understated Value

1/16/2009 David Wrotto Individual Vehicles & P/E 31,772.00 11,737.19 31,417.73 7,594.24 4,142.95 Carey Street Understated Value

12/19/2008 David Wrotto Individual Vehicles & P/E 30,698.00 10,265.99 20,752.33 8,244.84 2,021.15 15th Street Understated Value

12/2/2008 David Wrotto Individual Vehicles & P/E 16,537.01 6,285.81 14,445.47 4,526.82 1,758.99 200,000.00 15th Street Excess & Undeclared

11/24/2008 Deeka Boussouva Enterp. Business Entity Asst. Goods 12,680.48 3,919.56 7,874.40 3,286.21 633.35 Waterside Understated Value

11/10/2009 DHL Bus. Entity Electronic Doc 14,259.57 8,393.21 621.96 150.01 8,243.20 200,000.00 Broad Street False Documentation

12/20/2008 DHL Bus. Entity Vehicles & S/Parts 3,461.61 2,145.76 2,145.76 Broad Street Late Payment of Duty

1/23/2009 Diamond Food Inc. Business Entity Horse Mackerel 20,800.00 6,686.16 20,800.00 4,460.56 2,225.60 Caldwell Road Understated NCRF Penalty

1/22/2009 DIOCESE OF CAPE PALMASRELIG ORGANIZATIONVEHICLES 28,551.77 4,595.40 12,486.56 4,218.77 376.63 HARPER CITY UNDERSTATED

12/12/2008 Doco Wesseh Individual Shoes 21,612.56 5,212.95 10,680.00 3,718.78 1,494.17 Broad Street Understated value

12/15/2008 Doris Blamo Individual Vehicles & P/E 34,155.63 13,581.71 26,391.58 10,068.50 3,513.21 ELWA Rehab Understated Value/DI

4/3/2008 Dr. Fredrick Gbegbe Individual GAC Audit Report 200,000.00 Camp Johnson Road Omission of Pen. On SP#071

2/7/2009 Ducor Mine ral/Mamaka &

Sons Business Entity Packing Bags 3,228.46 738.38 1,000.00 211.46 526.92 - Duport Road Excess

7/10/2008 DUSTY WOLOKOLLIE INDIVIDUAL VEHS. P/E 26,613.06 8,255.72 27,998.59 4,795.35 3,460.37 CAPITOL BYE PASS OMISSION OF 20% EXC

12/11/2008 EAPA Fashion Business Entity Various Goods 11,151.73 5,659.27 6,814.00 3,116.24 2,543.03 Carey Street Underdeclared items/Understated Value/Bivac Inspect.

11/18/2009 ECOBANK LIB LTD BUS. ENTITY ATM MACHINE 28,866.00 7,734.64 28,866.00 4,848.04 2,886.60 ASHMUN STREET UNDERST. NCRF PENALTY

1/31/2009 ECOBANK LIB LTD BUS. ENTITY ATM MACHINE 39,412.80 10,560.66 39,412.80 6,619.38 3,941.28 ASHMUN STREET UNDERSTATED VALUE

1/20/2009 EDITH GIBSON INDIVIDUAL VEHS.P/E 18,085.45 5,672.02 13,681.11 4,244.60 1,427.42 DUPORT ROAD OMISSION OF 20% EXC

1/22/2009 Edith Sayegbe/D. Selina individual Various/Personal Effects 13,272.92 4,783.26 20,913.89 3,997.21 786.05 Airfield Sinkor Omission of 20% Excise

3/10/2008 Edith Tures Center Bus. Entity Used Tyres 1,640.21 658.87 658.87 200,000.00 Logan Town Excess

2/9/2009 Edward B. Okai Individual Vehicles & P/E 16,889.96 4,138.51 12,781.04 3,536.19 602.32 200,000.00 Congo Town Excess

ANNEX 3A



2/6/2009 Edward Cooper Individual Assorted Goods 4,683.59 1,344.88 1,344.88 200,000.00 ELWA Road Undeclared

2/12/2009 Edwer Johnson Business Business Entity Various Goods 40,337.34 10,054.44 13,355.26 4,738.69 5,315.75 Rally Town Understated Value/DI

2/9/2009 Eid Brothers Inc. Business Entity Wheat Flour 47,572.00 6,384.27 46,640.00 6,259.09 125.18 N/A Understated Value

2/23/2009 EL Shadai Holding Business Entity Mercedes Benz 5,809.16 2,333.54 5,809.16 1,090.38 1,243.16 N/A 20% Excise tax

2/3/2007 Emmanuel Elsar Businessman Assorted Goods 2,892.08 474.84 Nill Nill 474.84 200,000.00 N/A Undeclared

12/26/2007 Emmanuel Hardy Individual Vehicles/PE 18,314.40 4,675.73 23,340.22 3,992.75 682.98 Duport Road Omission of 20% Exc.

6/2/2007 Emmanuel Z. Gbaie Individual Assorted Used Items 3,790.00 1,319.67 - - 1,319.67 - Monrovia U.S. Embassy Auction

3/19/2007 Emmanuel Z. Gbaie Individual Cherokee Jeep 1,970.00 791.35 - - 791.35 - Monrovia U.S. Embassy Auction

3/20/2007 Epic Clarke Individual VehIcles/ PE 21,357.11 6,387.61 27,022.26 4,878.83 1,508.78 Paynesville Omission Excise Tax

9/2/2007 Ernest Freeman Businessman Generator 1,562.50 251.49 Nill Nill 251.49 N/A Undeclared

8/2/2007 Ernest Freeman Businessman Used Engine 1,000.00 160.95 Nill Nill 160.95 N/A Undeclared

9/2/2007 Esther Toe Anderson Individual Box Spring/Mat 648.76 225.90 225.90 200,000.00 Old Road Undeclared

12/3/2007 EUGENE BOWIER INDIVIDUAL VEHS. P/E 28,774.68 7,169.22 22,987.71 5,009.79 2,159.43 BROAD STREET OMISSION OF 20% EXC

4/6/2007 Eugene Salvage Individual Veh. Personnal Effect 17,750.90 5,577.63 18,652.16 3,930.86 1,646.77 Rue 232 P No. 88 Omission 20% Excess

1/16/2007 EUGINE BOWIER INDIVIDUAL VEHICLES/PE 28,111.28 7,892.88 36,375.50 6,651.70 1,241.18 BROAD STREET OMISSION

1/16/2007 European Commission Statelite Equipement 1,552.50

11/30/2006 Eustace Gobba Individual Vehicles/PE 37,523.60 14,940.55 24,247.29 4,533.49 10,407.06 City Hill Omission of 20% Exc.

2/15/2007 Excutive Trading Co. Bus. Entity Assorted Goods 25,088.88 6,033.07 14,193.55 4,907.99 1,125.08 200,000.00 Carey Street Understated Value

12/20/2008 Executive Trading Co. Bus. Entity Assorted Goods 17,679.66 5,139.52 11,782.36 4,443.35 696.17 Carey Street Understated Value/DI

2/12/2009 F. Eva Johnson Individual Vehs/Goods 34,830.22 10,237.44 26,443.14 8,028.71 2,208.73 200,000.00 Capitol Hill Excess & Undeclared

12/2/2008 Family Trading Center Business Entity Various Goods 12,826.03 5,838.40 6,888.67 3,135.72 2,702.68 Mechlin Street Understated Value/DI

12/20/2008 Fap Express Cargo Bus. Entity Used Engine 7,520.59 2,015.15 2,015.15 200,000.00 Clara Town Excess & Undeclared

12/2/2008 Fassour Bus. Center Business Entity Asst.Plastics Ware 14,600.52 3,365.30 Nill Nill 3,365.30 N/A EXCESS

12/15/2008 Fast Motor Center Business Entity Assoted Vehicles 22,100.00 9,186.98 29,404.63 4,420.00 4,766.98 Carey Street Understated Value/DI

12/1/2008 Fatu Dorley Individual Vehs.P/E 19,716.86 5,238.57 16,070.89 3,650.44 1,588.13 Gardnesville Omission of 20% Excise

12/1/2008 Fatu Dorley Individual Vehicles/PE 40,252.00 6,579.65 36,100.69 6,117.35 462.30 Gardnersville underStated Value

5/1/2007 FATUS S. UREY/VALCON BUS.ENTITY VEHICLES/PE 15,631.84 2,872.42 13,818.28 2,617.54 254.88 SINKOR, AIRFIELD UNDERSTATED

9/24/2008 Fayia S. Vamie Individual Vehicles/PE 26,436.31 6,593.50 27,525.99 4,984.01 1,609.49 Clara Town Omission of 20% Exc.

9/12/2008 FELICIA WASHINGTON INDIVIDUAL VEHICLES/PE 17,243.40 4,110.78 17,182.09 3,204.86 905.92 SINKOR OLD RD OMISSION

10/18/2007 Felix D. Johnson Individual VehIcles/ PE 26,375.00 10,823.04 25,490.68 5,038.08 5,784.96 Barnesville Omission of excise

4/14/2008 Felix Morlu/C/O Celcom Individual Various Goods 21,505.78 9,605.35 14,972.20 2,931.79 6,673.56 Capitol Bye-Pass Understated value/Bivac Destination Inspection

4/28/2008 Fewett Sherman Business Entity Various Goods 30,427.00 11,982.26 22,109.67 4,045.83 7,936.43 Somalia Drive Understated Value/DI

9/23/2008 FF General Mechandise Individual Used Shoes 32,025.20 5,771.35 15,200.00 4,072.84 1,698.51 200,000.00 Paynesville Excess

3/11/2008 First Ducor Imp & Exp. Inc.Bus. Entity Assorted Goods 27,589.81 6,853.07 16,652.01 5,812.46 1,040.61 Water Street Understated value

7/8/2008 First Ducor/Marian Bus. Entity PVC Slippers 25,182.50 6,074.01 13,419.00 4,681.89 1,392.12 200,000.00 Water Street Understated Value

3/19/2008 First Security Bus. Entity Wireless Bulbs 22,520.53 3,624.68 6,236.30 1,794.18 1,830.50 200,000.00 Ashmun Street Excess

9/11/2007 Fofana Quick Service Bus. Entity Shower Slippers 2,040.00 710.33 710.33 200,000.00 Broad Street Excess

9/23/2008 Folibole F. Kromah Individual Used Mack Truck 17,170.00 6,437.89 10,093.91 1,624.61 4,813.28 Mamba Point Understated value/Bivac Destination Inspection

10/23/2007 Fonfaya Bus. Center Business Entity Assorted Goods 11,761.80 3,336.39 7,359.00 2,873.93 462.46 Water Street Understated Value

10/23/2007 Fouad Kassam Bus. Entity Vehicle 22,410.00 9,002.09 21,129.49 8,379.37 622.72 Randall Street Understated value

11/2/2007 Fouani Bros. Corp. Bus. Entity Flavour Milk 15,410.00 2,486.66 15,410.00 1,665.26 821.40 Vai Town Wrong Classification

9/26/2008 FOUANI BROTHERS CORP. BUS. ENTITY MONOSODIUM 50,350.10 25,906.92 50,350.10 7,182.58 18,724.34 VAI TOWN WRONG CLASSIFICATION

6/19/2008 FRANCIS B. COOPER. SR INDIVIDUAL VEHS.P/E 21,556.01 7,715.91 7,197.16 518.75 17TH STREET OMISSION OF 20% EXC

9/24/2008 Fred Domingo Barlue Individual VehIcles/ PE 18,596.32 5,157.18 20,784.53 4,413.25 743.93 Caldwell Omission of excise

10/19/2007 Fred Kollie Individual Vehs.P/E 26,242.56 7,161.09 22,378.82 4,306.42 2,854.67 National Bolevard Understated value

5/1/2008 Frederick T. Lender Business Entity Various Goods 19,498.24 7,790.49 19,275.19 5,333.62 2,456.87 Parker Corner Understated Value/DI

9/10/2008 Freeman Sonkaraly Individual Personal Effects 4,820.00 948.99 948.99 200,000.00 G.S.A. Road Excess & Undeclared

10/13/2008 Freeman's Trucking Bus. Entity Air Compressor 369.77 49.63 49.63 200,000.00 Robertsfield H Undeclared

9/30/2008 Fria Bus. Center Bus. Entity Welya Stock Cube 46,005.50 16,019.13 6,068.00 2,762.15 13,256.98 Red Light Understated Value

10/8/2008 Fonfoya Business Center Bus. Entity Assorted Goods 11,761.80 3,336.39 7,418.65 2,916.96 419.43 Water Street Understated Value/DI

8/12/2008 Fonfoya Business Center Business Entity Assorted goods 12,344.52 3,558.12 7,620.00 3,012.81 545.31 Water Street underStated Value

9/25/2007 Future Eeterprise Business Entity Various 18,575.27 8,116.53 8,000.00 3,487.32 4,629.21 Water street Understated Value

8/29/2008 Future Enterprise Bus. Entity Assorted Goods 2,545.37 631.22 631.22 Water Street Excess/PSI Consignment

11/15/2007 Future Progress Bus. CenterBusiness Entity Motorcycle Set 30,591.50 7,378.68 8,100.00 2,170.40 5,208.28 Mechlin Street Understated Value

9/8/2008 Garava Bus. Center Business Entity Various Goods 25,554.42 8,138.60 17,156.40 7,758.70 379.90 Waterside Understated Value/DI

5/12/2008 Gayiah Business Center Bus. Entity GAC Audit Report 200,000.00 Redlight Omission of Pen. On SP#078

8/29/2008 GBARTU M. MOORE INDIVIDUAL VEHICLES/PE 12,465.40 3,400.33 NIL 3,250.97 149.36 20TH STREET, SINKOROMISSION

9/23/2008 GECCO LIB BUS. ENTITY HUMMER H2 30,685.68 12,326.45 19,021.67 7,641.01 4,685.44 U.N. DRIVE UNDERSTATED VALUE

10/1/2008 Gemelko Business Entity Used GMC Trailer 10,610.00 3,978.22 13,868.56 2,222.49 1,755.73 16 Warren Street Omission of 20% NCRF

7/18/2008 General Textile Center Bus. Entity Plain Material 359.24 105.86 105.86 Water Street Excess

10/3/2008 Geo Services Business Entity Various Goods 67,513.99 25,958.27 100,423.95 24,781.36 1,176.91 U.N. Drive Omission of 20% NCRF

10/3/2008 George M. Kpanto/ Patricia

Gaye Business Entity Various Goods 20,575.84 12,539.03 20,450.62 6,213.69 6,325.34 5 Robertsfield Omission Excise Tax

10/20/2008 George M. Kranto Lib. Returnee Generators 625.00 99.80 Nil Nil 99.80 Excess

10/22/2008 George Troconja Zarzar Individual Vehicles/PE 17,459.01 6,869.20 9,300.61 1,705.11 5,164.09 Sinkor Fiamah underStated Value

9/11/2008 Global Link Business Entity Vehicles 15,034.65 4,289.19 10,216.40 3,555.37 733.82 Carey Street Understated Value

10/10/2008 Gloria Kermah Individual Vehicles & P/E 7,523.80 1,313.53 1,313.53 Harbel Excess

10/23/2008 GOD'S GIFT CLEARING BUS. ENTITY ASST.GOODS 12,831.32 3,156.98 7,886.09 2,575.65 581.33 LOGAN TOWN UNDERSTATED VALUE

6/7/2008 God's Gift Clearing Bus. Entity Assorted Goods 19,675.45 9,590.68 19,675.45 5,380.13 4,210.55 Logan Town Understated NCRF Penalty

7/12/2008 God's Gift clearing Business Entity Assorted Goods 7,132.54 3,074.66 7,132.54 2,311.49 763.17 Logan Town Understated NCRF Penalty

6/6/2008 God's Gift clearing Business Entity Assorted Goods 23,911.11 11,177.04 23,911.11 8,618.56 2,558.48 Logan Town Understated NCRF Penalty

ANNEX 3A



4/17/2008 Golden Concept Bus. Entity Assorted Goods 12,058.92 3,852.06 6,069.99 2,515.70 1,336.36 Water Street Understated Value

9/18/2008 Golden Concept Bus. Entity Weave Bags 17,280.03 6,016.91 6,655.98 3,029.81 2,987.10 Happy Corner Understated Value/DI

10/27/2008 Golden Gate Inc. Bus. Entity Assorted Goods 5,828.17 1,629.81 1,629.81 200,000.00 UN Drive Undeclared

10/15/2008 Golden Gate Liberia Business Entity Assorte Goods 26,681.88 2,373.26 17,062.36 2,132.79 240.47 Gardnersville Undestated Value

9/3/2008 Gongorret Bus. Center Business Entity Various Goods 20,970.15 5,231.21 12,548.58 4,437.51 793.70 Water Street Understated Value/DI

9/3/2008 Greenland Supermarket Business Entity Mineral water 13,044.58 4,781.44 13,044.58 4,545.16 236.28 Sinkor Understated Value

9/3/2008 H & A Enterprise Business Entity Milk Powder Spray 69,382.50 7,455.15 69,382.50 6,712.76 742.39 Congo Town Wrong Tariff Rate

9/3/2008 H&A Corporation Bus. Entity Powder Milk 39,072.73 4,198.37 39,072.73 3,780.29 418.08 Clara Town Wrong Classification

12/6/2008 H&A Corporation Bus. Entity Vegetable Oil 65,170.00 12,232.41 65,170.00 10,489.11 1,743.30 Clara Town Wrong Classification

8/5/2008 HAJA BUSINESS CENTER BUS. ENTITY LINEN CARROT 7,081.62 2,844.68 7,081.62 2,086.95 757.73 WATER STREET UNDERSTATED VALUE

5/16/2008 Haja Business Center Business Entity Linen 16,542.79 6,645.24 6,355.20 2,552.88 4,092.36 Waterside Understated Value

4/28/2008 Hannah T. Morrison Individual VehIcles/ PE 17,509.80 4,462.52 20,683.65 3,790.05 672.47 SKD Blvd Omission of excise

12/6/2008 Hardline Mulbah/S. Brown Individual Veh. Personnal Effect 18,135.31 4,409.56 21,881.24 4,175.88 233.68 Bardnersville Est. Omission 20% Excess

5/13/2008 Hassimiou Diallo Bus. Entity PVC Slippers 864.84 301.14 301.14 200,000.00 Water Street Excess

12/15/2008 Hassimious Diallo Business Cen.Business Entity Assorted Slippers 25,096.48 11,423.91 12,845.40 4,472.76 6,951.15 Water Street Understated value/Bivac Destination Inspection

12/15/2008 HATCO Bus. Entity Assorted S/Parts 82,057.00 13,609.25 82,057.00 13,113.41 495.84 Clara Town Wrong Classification

5/4/2008 Hawah Borbor Bus. Entity Assorted Goods 2,029.02 503.86 1,195.88 275.00 228.86 Paynesville Understated value

5/16/2008 Henry Brunson Individual Assorted Goods 52,230.00 7,687.25 45,283.32 6,754.82 932.43 Broad Street Understated Value

3/18/2008 Henry Monger Businessman Assorted Goods 10,940.00 2,010.78 Nill Nill 2,010.78 200,000.00 N/A Undeclared

6/18/2008 HENRY YARDOLO INDIVIDUAL VEHS. P/E 26,115.06 8,108.10 16,161.10 2,957.20 5,150.90 WATER STREET OMISSION OF 20% EXC

6/13/2008 Herico Limited Bus. Entity Monosodium 102,436.73 70,234.27 102,436.73 35,668.47 34,565.80 Bushrod Island Wrong Classification

6/30/2008 HILTON JIAFFA INDIVIDUAL VEHICLES/PE 9,695.70 3,938.96 10,958.29 1,990.05 1,948.91 GURLEY STREET NCRF

4/14/2008 Hollande Bus. Center Bus. Entity Mosquito Coil 12,654.40 5,421.77 12,654.40 2,713.73 2,708.04 Waterside Understated NCRF Penalty

12/17/2008 HON MOSES KOLLIE INDIVIDUAL VEHICLES/PE 32,632.22 10,608.56 34,899.50 6,855.41 3,753.15 CAPITOL HILL OMISSION

2/15/2008 Hon. Bill A. Konneh Individual Entity Various Goods 16,045.34 7,374.63 20,927.34 3,834.18 3,540.45 Vai Town Omission of Excess Tax

7/16/2008 Horizon Investment Ltd Bus. Entity Used Excavator 58,484.25 7,580.18 32,879.70 4,412.46 3,167.72 11th Street Understated value

12/6/2008 Horizon Investment Ltd Bus. Entity Asst Goods 85,689.41 13,952.94 15,857.94 3,990.15 9,962.79 11th Street Understated value

3/3/2008 Hsiao G.M. Trading Business Entity Asst. Slipps/Shoes 9,004.66 2,171.93 Nill Nill 2,171.93 N/A Undeclared

2/13/2008 Inter Digital Comp. Sch. Bus. Entity Assorted Goods 36,861.77 7,786.80 20,290.15 5,857.71 1,929.09 Benson Street Understated Value

5/1/2008 Int'l Standard Industries Business Entity Gin Flavours 3,673.22 955.03 3,673.22 587.71 367.32 Freeway Wrong Classification

1/16/2008 Int'l Union For Conse Bus. Entity Land Cruiser 37,636.45 15,118.56 37,636.45 7,064.35 8,054.21 Kappa House Omission of 20% Exc.

2/22/2008 Isaac P. Acquah Businessman Personal Effect 2,415.00 388.70 Nill Nill 388.70 N/A EXCESS

6/5/2008 Issac P. Acquah Individual Veh. Personnal Effect 19,733.50 6,779.50 18,710.02 3,437.32 3,342.18 Ashmun Street Omission 20% Excess

2/22/2008 IYE ENTERPRISE CENTER BUS. ENTITY ASST.GOODS 18,133.63 6,844.62 18,133.63 4,904.32 1,940.30 WATER STREET UNDERST. NCRF PENALTY

4/7/2008 J&G Enterprise Bus. Entity Assorted Goods 19,193.92 5,867.11 7,255.79 3,087.23 2,779.88 Water Street Understated Value/DI

5/20/2008 J. Anthony Kollie Individual Personal Effects 966.00 155.48 155.48 SKD Blvd Excess

5/19/2008 J. Anthony Kollie Individual Ford Explorer 3,772.33 1,515.34 899.31 616.03 SKD Blvd Understated Value/DI

2/26/2008 J. C. Auto Business Entity Various Goods 14,215.75 5,330.20 8,881.20 3,303.82 2,026.38 Clara Town, Bushrod IslandUnderdeclared items/Understated Value/Bivac Inspect.

4/3/2008 J. Kaba/Real Value Bus. Cen.Business Entity Generator 675.00 253.10 Nill Nill 253.10 N/A Understrated KVA

2/7/2008 J. Looper Business Center Business Entity Personal Effects 1,380.00 222.11 222.11 200,000.00 Redlight/Paynesville Excess

6/27/2008 J.T. & DAUGHTERS BUS.ENTITY ASST.GOODS 54,449.14 14,410.92 NIL 12,196.61 2,214.31 CAMP JOHNSON RD UNDERSTATED

1/30/2008 J.T. & Daughters Business Entity Assorted Goods 4,061.00 1,175.86 Nill Nill 1,175.86 200,000.00 N/A Undeclared

6/6/2008 Jack Gbassana Enterprise Business Entity Various Goods 25,690.00 4,286.37 22,351.94 3,696.08 590.29 Duport Road Understated Value/DI

6/27/2008 Jacqueline Jackley Individual Used Tyres 348.93 102.83 - - 102.83 200,000.00 Relda Cinema Excess

4/23/2008 Jacqueline T. Deah Individual Vehs.P/E 21,142.50 8,282.10 19,559.39 7,291.21 990.89 Benson Street Understated value

4/30/2008 James A. Rogers Individual Vehicles/PE 19,939.23 5,189.85 22,561.40 3,844.94 1,344.91 E.l.W.A Road , Paynes.Omission of 20% Exc.

4/22/2008 James Zawolo Individual Vehs.P/E 39,769.00 10,219.96 38,961.95 10,046.15 173.81 Ministry of Lannd Understated value

3/24/2008 Jean Diamond Hannah Individual Personal effect 9,214.50 2,046.53 8,321.82 1,620.81 425.72 ELWA Road Understated value

1/23/2008 Jichi Trading Bus. Entity Liquid Soap 11,394.44 7,859.88 11,394.31 6,622.23 1,237.65 Water Street Wrong classification

1/23/2008 Jimmy Kortu Individual Assorte Goods 11,797.40 3,107.42 8,195.48 2,175.20 932.22 200,000.00 Camp Johnson Undeclared

1/23/2008 Jimmy Smith Individual VehIcles/ PE 15,789.60 6,263.06 16,179.65 3,017.86 3,245.20 Jacob Town Omission of excise

9/29/2008 Jishi Investment Group Inc.Business Entity Portable Dwelling

10/16/2008 Jishi Investment Group Inc.Business Entity Air Conditioner

9/20/2007 Jishi Investment Group Inc.Business Entity Dwelling & Air Condition 17,710.35 7,249.97 10,660.86 2,714.95 4,535.02 Randall Street Undestated Value

7/31/2007 Jo Mamba Ventures Business Entity Floor Covering 67,582.47 25,342.28 26,075.03 6,289.29 19,052.99 Gardnesville Underdeclared items/Understated Value/Bivac Inspect.

7/27/2007 Jogoe Bus. Center Bus. Entity Cream Cracker 36,792.00 6,905.86 18,664.00 5,500.28 1,405.58 Red Light Understated Value

10/26/2007 JOHN A. DAVID INDIVIDUAL VEHICLES/PE 37,906.74 9,520.91 25,442.15 5,496.18 4,024.73 17TH STREET UNDERSTATED

8/29/2008 John Bestman Individual Veh. Personnal Effect 19,131.72 5,210.69 18,324.69 4,446.57 764.12 Freeport Understated Value

9/18/2008 John Co llins Jr. Individual Various 21,550.85 5,560.51 15,610.17 2,927.24 2,633.27 Mechlin Street Understated Value

9/28/2007 John Kaba Individual P/E & Shoes 1,435.00 384.51 384.51 200,000.00 Gardnersville Road Excess

4/12/2007 John Shannon Individual Personal Effects 3,450.00 555.28 555.28 200,000.00 SKD Blvd Excess

11/3/2008 Johnson Adagho/Euro Bus. Entity Used Tyres 1,546.00 621.03 621.03 200,000.00 06-558-618 Excess

5/11/2007 Johnson T. Fahn Individual Assorted goods 27,161.47 6,597.36 N/A 4,308.95 2,288.41 Paynesvill, Redlight underStated Value

10/9/2008 Jomamba Ventures Bus. Entity Tarpauline 16,613.00 4,895.85 10,778.00 4,329.52 566.33 New Georgia Gard. Understated value

10/23/2008 Joseh Bus Center Business Entity Various Goods 13,665.67 4,300.56 6,322.40 2,030.76 2,269.80 Water Street Understated Value/DI

8/1/2008 Joseph Duncan Individual Vehs.P/E 31,304.60 8,821.79 19,421.68 3,741.56 5,080.23 Benson Street Understated value

9/29/2008 Joseph K. Aquoi Sr. Individual Vehicles 10,710.00 4,302.21 N/A 881.69 3,420.52 Mamba Point Omission of 20% Exc.

10/22/2008 Joseph Nuku Businessman Assorted Goods 3,447.00 581.54 Nill Nill 581.54 N/A EXCESS

8/21/2008 Joseph Samukai Individual Vehicles & P/E 21,593.11 8,447.58 20,098.53 7,623.30 824.28 Broad Street Understated Value/DI

8/23/2008 Joseph Samukai Individual Vehicles 12,019.00 4,828.03 14,425.61 2,707.69 2,120.34 Johnson Street Omission of 20% Exc.

ANNEX 3A



10/27/2008 Joshua B. Mitchell Individual Vehicles/Personal Effect 25,690.59 10,205.54 21,262.06 3,828.52 6,377.02 Camp Johnson RD. Understated Value

11/20/2008 Joshua B. Mitchell Individual Vehicles/Personal Effect 17,825.22 5,618.23 20,430.65 3,755.55 1,862.68 Camp Johnson RD. Omission of 20% Excise

11/25/2008Joshua B. Mitchell/Kotatee

Int'l Inc. Business Entity Assorted goods 11,856.00 3,456.14 12,986.61 2,185.14 1,271.00 Camp Johnson Rd. Omission of 20% Exc.

12/9/2008 Jovee One Bus. Center Bus. Entity PVC Slippers 21,832.00 5,265.88 12,600.00 4,387.32 878.56 200,000.00 Waterside Excess

9/16/2008 JR Fashion Business Entity Assorted Goods 18,463.82 4,911.37 9,809.18 2,646.73 2,264.64 - Bomi County Understated Value

10/17/2008 Julliet Trading Center Business Entity Motorcycles 12,097.20 4,212.24 12,097.20 3,241.45 970.79 Paynesville Wrong rate

10/11/2008 JVS Enterprise Lib. Inc. Bus. Entity Used Clothes 932.91 150.15 150.15 Logan Town Excess

5/22/2008 K. C Enterprise Business Entity Various Goods 28,571.79 13,005.88 14,000.00 4,874.80 8,101.08 Monrovia, Liberia Understated value/Bivac Destination Inspection

4/10/2008 K. C.A Enterprise Business Entity Various Goods 17,316.45 9,472.71 6,500.00 3,018.57 6,454.14 Water Street Understated value/Bivac Destination Inspection

10/19/2007 K.C.A. Enterprice Business Entity Assorted Goods 1,950.00 871.59 Nill Nill 871.59 200,000.00 N/A Undeclared

1/10/2008 K.S. Clearing & Forwarding Business Entity Assorted Goods 26,707.04 4,751.79 9,331.47 2,690.64 2,061.15 200,000.00 Duala Understated value/BIVAC

9/3/2008 Kadifatu 19 Center Business Entity Asst. Goods 20,815.65 6,666.88 10,692.00 4,184.72 2,482.16 Waterside Understated Value

8/28/2008 Kalifala Dolley Individual Assorted Goods 3,152.72 557.99 557.99 Lynch Street Excess/Undeclared

12/18/2007 KAMARA BUS CORPORATIONBUS. ENTITY ASST.COSMETIC 23,052.54 6,912.90 15,504.18 6,336.38 576.52 WATER STREET UNDERSTATED VALUE

3/14/2008 Kamusu Silah Foundation Organization Vahicles/Household good 21,513.80 6,243.42 18,057.81 3,335.48 2,907.94 ATS/U.N. Drive Understated Value & 20% Excise

9/8/2008 Kanio Gbala Individual Trucks/Asst.Goods 51,348.99 8,294.43 34,015.65 5,590.35 2,704.08 Snapper Hill underStated Value

12/12/2007 Kansota Business Center Business Entity Various Goods 18,369.78 4,295.56 10,614.18 3,823.50 472.06 Water Street Understated Value/DI

11/11/2008 karka International Trading Business Entity Cream Cracker 35,923.68 14,430.55 19,230.00 5,667.03 8,763.47 Water Street Underdeclared items/Understated Value/Bivac Inspect.

9/4/2008 Kasanto Business Center Business Entity Assorted goods 12,721.16 3,508.54 7,005.60 2,659.26 849.28 Randall Street underStated Value

11/27/2008 KAY DEMERRO INDIVIDUAL VEHICLES/PE 12,924.40 4,835.02 11,315.30 2,242.71 2,592.31 OLD RD SINKOR OMISSION

11/12/2008 K-Business Center Business Entity Various Goods 9,510.30 4,835.13 5,789.00 2,889.70 1,945.43 Randall Street Omission of 20% Excise Tax

11/12/2008 Kcc Enterprise Business Entity Various Goods 21,994.27 7,447.17 8,535.36 3,651.47 3,795.70 Benson Street Omission of 20% Excise Tax

11/12/2008 KEBBEH G.MATTHEW INDIVIDUAL VEHICLES/PE 18,685.00 3,508.29 16,945.76 2,979.90 528.39 BARDNESVILLE UNDERSTATED

4/24/2008 KEIYH DONENELL INDIVIDUAL VEHICLES 18,764.00 6,686.76 17,461.93 5,998.67 688.09 OLD ROAD SINKOR UNDERSTATED VALUE

6/2/2008 Kelco Flemister Businessman Diesel Generator 19,854.18 7,534.32 Nill Nill 7,534.32 N/A Understarted KVA

2/28/2008 Keloe Business Center Business Entity Assorted goods 11,354.52 3,492.44 7,456.80 2,929.31 563.13 Water Street Undeclared

8/3/2008 Kelvin Bayon Individual Assorted Goods 2,671.00 545.20 545.20 200,000.00 Sayon Town Undeclared

1/30/2008 Kengoz Incorporated Bus. Entity Vehicles & Goods 26,366.84 7,130.57 16,252.23 4,031.26 3,099.31 Clara Town Excess & Undeclared

7/18/2008 Kerkulah M. Kamara Individual Entity Assorted Goods 12,116.29 2,391.29 1,413.43 977.86 200,000.00 Broad Street Undeclared

4/23/2008 Kig Investors Group Inc. Business Entity Vehicles/PE 14,369.01 4,606.53 10,728.99 3,081.60 1,524.93 Paynesville underStated Value

3/20/2008 King Trading Enterprise Bus. Entity GAC Audit Report 200,000.00 UN Drive Omission of Pen. On SP#0103

11/6/2008 Kingdom Harvest Min. Inc. Religious Org. used Generator 2,500.00 402.38 187.50 30.18 372.20 Sinkor, Old Road Excess in KVA/Generator

3/28/2008 Koenig Gen. Merchandise Bus. Entity Assorted Goods 1,068.35 167.90 167.90 200,000.00 Sinkor, Old Road Undeclared

10/7/2008 Kongi Bus. Center Business Entity Assorted Goods 24,544.21 6,094.11 11,817.00 5,719.50 374.61 N/A Bivac Destination Insp.

7/2/2008 Korku International Trading CoBusiness Entity Cream Cracker Biscuits 11,087.40 5,640.16 11,087.40 3,267.45 2,372.71 Water street Understated Value of 30% penalty

10/3/2008 Korku International Trading CoBusiness Entity Cream Cracker Biscuits 10,863.20 5,526.11 10,863.20 3,201.38 2,324.73 Water street understatedValue of 30% Penalty

7/8/2008 Korku International Trading CoBusiness Entity Cream Cracker Biscuits 10,854.38 4,360.21 10,854.38 3,198.79 1,161.42 Water street understatedValue of 30% Penalty

8/5/2008 Korpo Fofana Individual Used DVD Desk 543.26 247.30 247.30 200,000.00 Virginia Undeclared

7/23/2008 Kotatee Int'l/Emmet Bus. Entity Assorted Goods 17,014.87 5,008.56 7,015.49 2,658.12 2,350.44 Camp Johnson Road Understated Value

6/24/2008 Kotatee Int'l/Emmet Bus. Entity Assorted Goods 17,734.94 3,987.39 11,350.06 3,631.33 356.06 Camp Johnson Road Understated Value

5/29/2008 Koussa Store Bus. Entity Wheat Flour 49,073.07 31,823.91 49,073.07 29,198.50 2,625.41 Vai Town Omission of 5% Duty

7/17/2008 Koussa Store Bus. Entity Wheat Flour 49,073.07 31,823.91 49,073.07 29,198.50 2,625.41 Vai Town Omission of Duty & Fees

7/8/2008 Koussa Store Bus. Entity Assorted Goods 22,823.31 5,092.39 3,427.05 1,665.34 Vai Town Excess

5/29/2008 Kpannah J. Paye-Layleh Individual Vehicles/PE 16,003.80 4,179.45 N/A 3,752.23 427.22 New Georgia JunctionOmission of 20% Exc.

6/23/2008 KUMBA BORBOR INDIVIDUAL VEHS. P/E 18,062.28 3,916.71 19,749.30 3,446.79 469.92 GARDNERVILLE RD OMISSION OF 20% EXC

8/6/2008 KUMBA BORBOR INDIVIDUAL VEHICLES/PE 15,078.66 4,274.72 17,628.14 3,174.07 1,100.65 GARDNESVILLE OMISSION

4/13/2008 Kwantee International Bus. Entity GAC Audit Report 200,000.00 Sinkor, Old Road Omission of Pen. On SP#080

6/2/2008 Lacky Star Bus. Entity Assorted Goods 13,814.83 3,519.94 8,181.23 2,944.85 575.09 Gurley Street Understated Value

7/15/2008 LAMIS INDUSTRIES INC BUS. ENTITY MONOSODIUM 31,688.75 14,353.93 31,688.75 4,406.68 9,947.25 VAI TOWN WRONG CLASSIFICATION

1/3/2008 Lamis Industries Inc. Business Entity Monosodium Glutam 88,021.50 27,880.22 88,021.50 5,281.30 22,598.92 Water Street Wrong Classification

10/4/2008 Lasana Sanoe Individual Veh. Personnal Effect 21,131.20 5,997.44 24,949.00 4,386.82 1,610.62 Gardnersville Rd. Omission 20% Excise

6/26/2008 Lassa Kruah Individual Vehicles/PE 26,824.90 8,949.43 29,310.97 5,488.20 3,461.23 Gardnersville Omission of 20% Exc.

4/16/2008 LATTAI L. MCGILL INDIVIDUAL VEHICLES/PE 10,389.01 4,103.45 15,338.50 3,856.18 147.27 SINKOR OLD RD OMISSION

6/16/2008 Lawrence Vincent Lib. Returnee Assorted Goods 10,042.75 968.23 Nill 230.16 738.07 200,000.00 N/A Underclared

8/15/2008 Layee Dolly Individual Assorted Motor Bikes 9,267.13 2,039.41 828.00 110.82 1,928.59 200,000.00 Sinkor, Airfield Undeclared

12/26/2007 LAYEE FOFANA INDIVIDUAL VEHS. P/E 19,702.40 5,010.64 23,088.55 4,202.40 808.24 BENSON STREET OMISSION OF 20% EXC

6/16/2008 LAYEE FOFANA INDIVIDUAL VEHICLES/PE 14,278.04 4,581.83 21,304.39 3,638.23 943.60 PAYNESVILLE OMISSION

7/24/2008 LBDI Bus. Entity Assorted Goods 117,484.56 43,805.77 117,484.56 30,442.18 13,363.59 Randall Street Wrong Classification

7/9/2008 Lelay Inc. Bus. Entity Personal Effects 7,104.40 1,185.46 1,185.46 Center Street Excess on PSI Consignment

7/16/2008 Lib. (W/Africa)China CommodityBusiness Entity Assorted goods 12,375.00 5,219.60 12,375.00 4,257.09 962.51 10th Street, sinkor Wrong rate

3/31/2008 Lib. Electronic & Trading Bus. Entity Assorted Goods 20,137.72 5,625.17 9,477.17 3,670.34 1,954.83 200,000.00 Broad Street Understated Value

12/12/2007 Lib. Electronics Bus. Entity Electronic Items 13,629.13 3,434.77 6,818.35 2,348.16 1,086.61 Broad Street Understated Value/DI

12/12/2007 Liberia Civil Aviation Aut. A/ Agency VehIcles/ PE 49,464.60 19,869.93 32,461.25 12,906.81 6,963.12 J. Spiiggs Field Understated value

5/6/2008 Liberia Annual Conference Reg. Org Veh. Relieg Goods 13,516.83 4,654.41 17,735.89 4,219.91 434.50 13th Street, Sinkor Omission 20% Excess

12/7/2008 Liberia Cement Corp. Business Entity Portland Cement 1,181.78 95.37 Nil Nil 95.37 Freeway Excess

8/30/2008 Liberia Fire Safety & En Bus. Entity Extinguisher 60,171.00 9,684.53 17,283.59 4,631.14 5,053.39 3rd Street Understated Value/DI

8/30/2008 Liberia Guomao Inve Bus. Entity Assorted Goods 28,959.69 8,125.76 11,557.53 4,457.58 3,668.18 200,000.00 16th Street Excess

10/15/2007 Liberia Links Corp. Bus. Entity Assorted Cigarettes 12,370.50 4,919.12 12,370.50 3,639.43 1,279.69 Freeport Understated excess Rate

9/19/2007 Liberia Tyres Center Bus. Entity Used Tyres 6,533.33 1,925.37 1,925.37 Logan Town Excess

12/19/2007 Liberia Woodwork Const. Trd. Co.Business Entity Assorted Soap 14,190.01 11,559.45 14,190.00 5,672.30 5,887.15 Clara Town Understated Weight

ANNEX 3A



9/27/2007 Lima Dewalt Business Entity Various Goods 11,727.03 2,030.12 8,767.50 1,548.91 481.21 Stpehen Tolbert Understated Penalty of 20%

1/13/2007 Lincoln Rhodes Businessman Vehs/Asst.Goods 27,418.57 6,671.06 6,260.00 626.44 6,044.62 200,000.00 N/A Undeclared

2/8/2007 Linda Bus. Corp Business Entity Toilet paper 14,987.16 3,614.90 9,200.40 3,203.58 411.32 Congo Town Understated Value

12/14/2007 Linda S. Varney Individual Vehicles 17,855.20 3,125.89 15,038.33 2,679.67 446.22 Paynesville Understated Value

6/19/2007 Loomis Gerrin Individual Used Tyres 649.59 260.95 260.95 200,000.00 LISGIS Excess

12/12/2007 Lowise Fashion House Bus. Entity General Merchandise 20,219.60 4,918.20 10,813.94 3,517.51 1,400.69 Randall Street Understated Value/DI

10/12/2007 Lyrus Smith Individual Vehicles/PE 31,930.00 9,759.64 29,080.60 7,648.64 2,111.00 Steven Tolbert Est. underStated Value

12/12/2007 M & Y ENTERPRISE BUS.ENTITY ASST.GOODS 9,106.50 4,310.75 6,865.37 3,399.70 911.05 BROAD STREET UNDERSTATED

10/1/2007 M & Y ENTERPRISE BUS.ENTITY ASST.GOODS 10,726.00 4,928.96 7,103.26 3,393.82 1,535.14 BROAD STREET UNDERSTATED

12/13/2007 M & Y Enterprise Business Entity Assorted goods 24,176.60 3,971.70 13,173.56 3,669.46 302.24 Broad Street underStated Value

12/13/2007 M. B. Store Business Entity Various Goods 21,959.22 10,782.58 10,771.87 4,170.00 6,612.58 Mechlin Street Understated value/Bivac Destination Inspection

5/31/2007 M. KAMARA/CONFID STOREBUS.ENTITY ASST. GOODS 11,103.72 3,569.29 8,387.39 2,977.78 591.51 BROAD STREET UNDERSTATED

12/18/2007 M. V. Konneh Inc Bus. Entity Vehs.P/E 15,821.46 5,230.60 9,786.07 3,432.77 1,797.83 U. N. Drive Understated value

12/18/2007 M.B BROTHER TRADING COBUS. ENTITY ASST.GOODS 56,589.04 15,064.85 11,511.21 4,076.35 10,988.50 WATER STREET UNDERSTATED VALUE

12/19/2007 M.B Center Business Entity Various 20,290.98 5,824.58 10,731.20 4,182.17 1,642.41 Gurley Street Understated Value

12/28/2007 M.B.C. Business Center Bus. Entity Assorted Goods 29,780.83 8,548.50 12,473.33 4,912.21 3,636.29 200,000.00 Meclin Street Understated Value

8/31/2007 M.B.K.Bus. Center Business Entity Assorte Goods 19,175.01 5,598.89 11,045.01 3,810.46 1,788.43 Broad Street Undestated Value

12/27/2007 M.K.S. Bus. Center Bus. Entity Asst Goods 25,637.86 6,203.92 16,092.02 5,668.81 535.11 Randall Street Understated value

1/21/2008 M.P.D Enterprise Business Entity Various 12,867.88 4,029.97 8,099.41 3,442.95 587.02 Mechlin Street Understated Value

12/18/2007 M.S.J. Bus, Center Bus. Entity General Merchandise 23,032.00 6,401.60 11,348.40 5,587.55 814.05 Mechlin Street Understated Value/DI

12/26/2007 Mohammed Taylor Businessman Assorted Goods 6,462.00 1,333.03 Nill Nill 1,333.03 200,000.00 N/A Undeclared

2/12/2008 Maddny K. Bathily Bus. Entity Assorted Goods 19,545.86 4,297.95 12,411.30 3,964.49 333.46 200,000.00 Red Light Excess

12/24/2007 Madu Bamba Individual Trucks 11,220.00 1,805.86 9,012.39 1,450.54 355.32 Jacob's Town underStated Value

11/1/2008 Madusu Bus. Center Bus. Entity Vehicles & P/E 24,104.50 7,844.50 19,899.89 5,760.17 2,084.33 Paynesville Understated Value

1/14/2008 Maiyan Konneh Individual VehIcles/ PE 10,057.30 3,708.84 7,882.47 1,384.63 2,324.21 Buzzi Quarter Omission of excise

10/1/2008 Makis (Liberia) Limited Business Entity Assorted goods 15,715.00 7,474.95 9,651.82 4,830.32 2,644.63 Water Street underStated Value

5/12/2008 Makis Liberia, Limited Business Entity Various Goods 18,070.02 7,373.42 11,173.00 3,268.72 4,104.70 Water Street Understated Value/DI

12/12/2007 Malike M. Dukuly Individual VehIcles/ PE 22,428.54 13,757.76 23,068.76 4,696.69 9,061.07 Water St. Omission of excise

7/12/2007 Malike M. Dukuly Individual Mineral Water 16,930.25 14,867.53 15,000.75 5,706.84 9,160.69 Freepotr Understated Weight

12/14/2007 Mamadou Soubhano Bus. Entity Assorted Goods 24,769.90 6,482.22 12,701.75 4,780.20 1,702.02 Water Street Understated Value/DI

6/1/2008 Mamadou Soushan Barry Bus. Entity Asst Goods 21,254.16 5,410.23 12,075.37 4,313.11 1,097.12 UN Drive Understated value

12/19/2007 Mamba Point Hotel Bus. Entity GAC Audit Report 200,000.00 Mamba Point Omission of Pen. On SP#055

1/15/2008 Mamie David Individual Vehicles & Goods 20,537.40 5,455.03 15,583.76 2,953.51 2,501.52 200,000.00 19th Street Understated Value

3/1/2008 Manhattan Trading Center Business Entity Used Clothing 826.27 183.94 Nil Nil 183.94 Waterside Excess/Undelared

12/1/2008 Mansfield W. Wrotto Individual Vehicles & P/E 22,699.80 6,873.49 6,441.29 432.20 15th Street Understated Value/DI

12/1/2008 Mariama Jallabah Individual Vehs.P/E 22,098.20 6,012.58 20,991.87 4,056.59 1,955.99 Capitol Hill Understated value

12/1/2008 Marian Fofana Individual Veh. Personnal Effect 21,104.00 5,105.54 25,527.16 4,814.94 290.00 Broad Street Omission 20% Excess

5/21/2008 MARINE BEACH CORP BUS.ENTITY ASST.GOODS 7,439.57 3,709.05 7,439.57 2,116.98 1,592.07 CLARA TOWN 30% NCF

2/4/2008 Marine Beach Inc. Bus. Entity Assorted Goods 143.94 51.26 51.26 200,000.00 Clara Town Excess

3/18/2008 Marine Beach Inc. Bus. Entity Assorted Goods 17,370.39 9,615.60 17,370.39 5,898.33 3,717.27 Clara Town UnderStated NCRF Pen

4/28/2008 Marine Beach inc. Business Entity Asst. Goods 7,053.34 3,559.59 7,053.34 2,048.26 1,511.33 Clara Town Understated NCRF

4/1/2008 Marine Beach inc. Business Entity Asst. Goods 6,985.55 4,061.87 6,985.55 2,566.36 1,495.51 Clara Town Understated NCRF

5/30/2008 Mark Keshen Individual Mack Truck 10,719.00 1,725.23 9,066.46 1,459.24 265.99 C/O Firestone Co. Understated value

10/22/2008 Market Business Center Bus. Entity Assorted Candies 20,400.00 18,903.24 17,675.00 18,683.33 219.91 Water Street Understated Frieght

9/2/2008 Markinrich Inc. Bus. Entity Used Vehicles 39,309.00 13,667.26 10,643.35 9,219.10 4,448.16 Clara Town Understated Value/DI

4/1/2008 Martha Alice Gean Individual Vehicles & P/E 15,263.68 4,540.32 14,499.93 4,095.73 444.59 ELWA Road Undeclared

4/25/2007 Martha Howard Individual Vehs.P/E 21,867.12 6,893.14 24,395.54 6,198.88 694.26 Camp Johnson Road Omission of 20% Excise

3/17/2008 Martin Howard Individual VehIcles/ PE 30,736.02 6,318.09 22,600.39 3,938.99 2,379.10 24 Broad Street Omission Excise Tax

9/2/2008 Maryline Fashion Business Entity Assorted shoes 11,788.72 3,008.50 6,079.50 2,767.40 241.10 N/A Bivac Destination Insp.

8/2/2008 Ma-Siah & Son Bus. Cen. Business Entity Body Cream 18,305.00 5,405.40 18,305.00 4,434.08 971.32 Water Street Wrong Classification

4/26/2008 MASRI SERVICE & MAINT BUS. ENTITY SUGAR CANE CRUSH 42,285.67 10,077.84 42,285.67 6,784.13 3,293.71 VAI TOWN WRONG CLASSIFICATION

3/26/2008 Master Trading Center Bus. Entity Tyres & Tubes 31,069.62 7,813.85 31,069.62 5,814.40 1,999.45 Randall Street Wrong classification

3/28/2008 Mattar Trading Company Business Entity Veh. Personnal Effect 19,602.92 8,132.37 21,400.34 5,840.87 2,291.50 Center Street Omission 20% Excess

4/26/2008 Matthew T.K. Flomo Individual Veh. Personnal Effect 23,706.20 4,602.67 8,777.89 3,622.53 980.14 Carey & Warren St. Understated Value

1/21/2008 Mccillian Fashion Store Business Entity Various Goods 12,563.61 5,718.96 8,232.00 2,866.38 2,852.58 Monrovia, Liberia Understated value/Bivac Destination Inspection

1/25/2008 Merit Auto Sale/Varlee SandBusiness Entity P/E (Worm Clothes) 400.00 64.38 64.38 50,000.00 Broad Street Undeclared

1/16/2008 Methia Tech Lib. Inc Bus. Entity Furniture 9,867.50 3,435.86 6,994.89 3,184.98 250.88 UN Drive Understated Value

3/3/2008 Michael V. Suah Individual Assorted Goods 159.99 159.99 Monrovia, Liberia Excess

11/30/2008 Miekee Gray Individual Various 26,183.00 7,963.80 22,141.41 4,150.07 3,813.73 Duport Road Understated Value

4/2/2008 Modern Development Bus. Entity Used Tyres 750.00 301.28 301.28 200,000.00 14th Street Excess

4/29/2008 Modern Sport Cent Bus. Entity Assorted Goods 21,827.62 5,156.81 14,036.10 4,732.18 424.63 200,000.00 Paynesville Understated Value/DI

4/9/2008 Mohammed Fofana Individual Used Vehicle 19,276.00 3,138.56 17,719.26 2,940.14 198.42 Gardnesville Understated value

4/21/2008 Mohammed Fofana Business Entity Various Goods 12,342.01 4,670.70 Nil 2,911.54 1,759.16 Monrovia, Liberia Underdeclared

4/18/2008 Mohammed Jataeh Business Entity Various Goods 27,934.34 14,530.49 29,259.32 5,590.68 8,939.81 Waterside Omission of Excise Tax

4/22/2008 Mohammed Kromah Individual Vehicles & Goods 21,411.48 5,926.32 18,479.68 3,961.31 1,965.01 200,000.00 Bardnersville Excess

10/6/2008 Mohammed Passawe Individual Used Clothes 2,880.00 463.54 463.54 3rd Street Excess

3/31/2008 Mohammed Turn Individual Vehicles & Generator Set 33,230.00 10,926.79 28,260.00 8,690.42 2,236.37 200,000.00 Sinkor, Airfield Understated Value

2/20/2008 Mohammed Turray Business Man Veh. Personnal Effect 12,361.00 4,477.43 11,917.84 3,203.67 1,273.76 Sinkor Airfield Omission 20% Excess

9/5/2008 Momo Kaidii Individual Vehs.P/E 40,421.29 11,729.15 23,792.53 4,488.07 7,241.08 Vai Town Omission of 20% Excise

10/21/2008 Monalisa Restaurant Business Entity Asst. Goods 10,599.06 3,539.43 10,092.37 3,424.18 115.25 15th Street, Sinkor Understated Value

5/2/2008 Monoliza Restraunt Bus. Entity Assorted Goods 11,329.30 2,734.52 7,711.40 2,332.00 402.52 200,000.00 Sinkor Excess

ANNEX 3A



5/12/2008 Monoprix S/Market Bus. Entity Mineral Water 18,857.39 7,383.23 18,857.20 5,463.66 1,919.57 Point Four Understated Value

1/22/2008 Monoprix S/Market Bus. Entity Mineral Water 40,865.55 15,388.00 40,865.55 15,272.43 115.57 Benson Street Understated Volume

5/28/2008 Monoprix S/Market Bus. Entity Sparkling Wine 10,696.30 10,296.93 10,696.30 4,192.22 6,104.71 Benson Street Wrong Classification

4/18/2008 Monoprix S/Market Bus. Entity Comd. Milk 32,436.00 3,485.25 32,436.00 3,138.18 347.07 Benson Street Wrong classification

9/5/2008 Monoprix Supermarket Business Entity Natural spring water 18,622.05 9,509.82 18,622.05 5,506.31 4,003.51 Benson Street Understated Volumn

4/23/2008 Monoprix Supermarket Business Entity Spaghetti 20,042.94 4,834.36 20,042.94 2,689.77 2,144.59 Benson Street Wrong Classification

4/23/2008 Monoprix Supermarket Business Entity Suncare Full cream 63,630.00 6,837.05 63,630.00 6,156.20 680.85 Benson Street Wrong Tariff Rate

4/23/2008 Morris Cooper Individual Used Television 9,409.29 2,263.77 9,246.50 2,040.00 223.35 200,000.00 Parker Paint Excess

4/23/2008 Morris Fahnbulleh Businessman Used Pick-up 3,635.00 1,362.95 3,974.69 639.73 723.22 N/A Bivac Destination Insp.

12/10/2007 Morris Payne Individual Veh. Personnal Effect 8,444.20 2,521.07 12,371.78 2,251.83 269.24 Vai Town Omission 20% Excess

5/2/2008 Morweh Lib. Limited Bus. Entity Caterpillar 49,204.00 6,603.18 17,136.00 5,220.85 1,382.33 Benson Street Understated Value/DI

1/16/2008 Morweh Liberia, Ltd. Business Entity Various Goods 19,399.07 9,094.26 14,129.27 5,227.05 3,867.21 9th Street Understated Value/DI

1/21/2008 Moses T. Quoimie Business Entity Various Goods 23,225.70 17,678.69 25,712.72 4,343.94 7,334.75 T-42 Barnesville EstateInspection

1/14/2008 MR JOSEPH FARKOLLIE INDIVIDUAL VEHS. P/E 15,683.00 4,266.59 20,670.35 3,824.49 442.10 OLD ROAD SINKOR OMISSION OF 20% EXC

12/14/2007 MR SAM TEEKAYE INDIVIDUAL VEHS. P/E 31,478.00 10,224.71 29,661.12 8,777.60 1,447.10 BROAD STREET OMISSION OF 20% EXC

5/12/2007 Mr. Edrissa Bility Individual Vehicles/PE 39,436.20 14,044.63 N/A 5,405.30 8,639.33 82 Gurley Street Omission of 20% Exc.

4/2/2008 Mr. emmanuel Esar Individual personal 6,555.00 1,055.03 - - 1,055.03 Monrovia Liberia Excess

1/17/2008 Mr. Foad Kassam Business Man Vehicles 22,705.00 9,120.60 17,744.40 7,168.11 1,952.49 8 Randall Street Understated Value

11/23/2008

Mr. Jusufu Fofana/Eco

Trading Center Business Entity Various Goods 26,283.60 9,856.43 14,165.23 3,703.47 6,152.96 Benson Street Understated Value/DI

2/13/2008

Mr. Jusufu Fofana/Eco

Trading Center Business Entity Various Goods 30,970.01 11,602.12 11,869.70 4,469.69 7,132.43 Benson Street Understated Value/DI

12/18/2007 Mr. Magana Flomo Individual Vehile,Tyres & Filter 7,692.00 1,501.79 6,285.17 1,116.51 385.28 Gbarma Liberia Understated Value

10/12/2007 Mr. Mike E. Umeh/Mike J5 WorldwideBusiness Entity Various Goods 47,746.74 17,860.39 14,034.69 5,280.22 12,580.17 Clara Town, Bushrod IslandUnderstated value/Bivac Destination Inspection

1/22/2008 Mr. Mohammed Turay Business Man Veh. Personnal Effect 25,665.00 8,704.63 4,110.60 7,927.33 777.30 Carey Street Understated Value

2/1/2008 Mr. Musa Gray Individual Vehs.P/E 18,925.22 6,186.75 18,810.75 5,756.72 430.03 Freeport Omission of 20% Excise

5/12/2007 Mr. Prince Jimlack Individual Entity Various Goods 8,976.61 1,684.80 5,096.70 956.67 728.13 Freeport Understated Value/DI

2/13/2008 Mr. Remeo A. Zoker, Sr. Individual Used Items 1,125.00 446.56 446.56 ISI/Freeway Undeclared

6/12/2007 Mr. Rocky Findley/ USTC Individual Various Goods 24,853.10 15,009.48 20,251.83 3,573.32 11,436.16 Paynesville/USTC Underdeclared items/Understated Value/Bivac Inspect.

2/26/2008 Mr. Sheir Quie Ahmed Business Entity Various Goods 11,748.00 5,313.85 6,151.16 2,206.67 3,107.18 Duport Road Understated value/Bivac Destination Inspection

2/19/2008 Mr. Suponnol Crurrison Individual Personal effect 7,713.91 2,267.12 5,830.51 1,237.85 1,029.27 Ganta Understated value

7/2/2008 Mr.Sekou Bility Individual Vehile & personal Effect 43,465.30 11,924.75 31,192.42 5,901.58 6,023.17 Sinkor Old Road Understated Value

1/14/2008 Ms. Paulette Findley Individual Various 4,759.76 1,810.42 5,760.00 1,342.78 467.64 Sinkor Avenue Understated value/Bivac Destination Inspection

11/20/2007 MUSA A. KANNEH INDIVIDUAL VEHICLES/PE 21,986.97 5,516.67 26,226.30 4,965.70 550.97 GARDNESVILLE OMISSION

3/17/2008 Musa B. konneh Individual VehIcles/ PE 20,691.82 3,939.16 18,981.77 3,521.09 418.07 Gardnesville Understated value

4/12/2007 Musa Donzo Individual Vehicles/PE 16,978.80 4,563.05 18,918.72 4,259.69 303.36 Waterside Omission of 20% Exc.

4/3/2008 Musa Fofana Individual Assorted Goods 6,274.00 1,239.32 4,149.00 745.06 485.26 200,000.00 Benson Street Undeclared

11/22/2007 Musa Kamara Individual Used Trucks 14,423.00 2,321.39 8,274.71 1,331.81 989.58 200,000.00 New Georgia Understated Value/DI

2/28/2008 Musa Kanneh Individual Vehicles /PE 20,925.00 3,949.29 16,889.72 3,168.40 780.89 200,000.00 Gardnersville Understated value/BIVAC

1/2/2008 Mustapha Dialla Bus CenterBusiness Entity Assorted Goods 19,904.96 4,801.07 13,612.41 4,603.72 197.35 Waterside Understated Value

1/28/2008 Mustapha Diallo Bus. Business Entity PVC Slipper 624.81 150.70 Nil Nil 150.70 Water Street FOC Consignment/Bivac

1/18/2008 Musu K. Laryea Individual Assorted Goods 19,006.98 3,133.95 2,288.95 845.00 Camp Johnson Road Understated Value

3/12/2007 N. V. Konneh Inc. Business Entity Assorted Goods 3,098.46 1,250.17 Nill Nill 1,250.17 N/A EXCESS

7/2/2008 NABIL ENTERPRISES BUS. ENTITY ASST. SHOE 52,527.75 12,669.74 34,532.55 8,329.15 4,340.59 VAI TOWN UNDERSTATED VALUE

6/12/2007 NABIL ENTERPRISES BUS. ENTITY PRINTED COTTON 16,650.00 6,688.31 16,650.00 4,906.76 1,781.55 VAI TOWN UNDERSTATED VALUE

1/15/2008 NABIL ENTERPRISES BUS. ENTITY PRINTED COTTON 26,400.00 10,604.88 26,400.00 7,762.08 2,842.80 VAI TOWN UNDERSTATED VALUE

11/27/2007 Napoleon Chattah Individual Entity Assorted Goods 1,893.51 356.58 356.58 200,000.00 Old Road Undeclared

1/15/2008 NATIONAL PAINT INDUSTRIESBUS. ENTITY ASST.GOODS 27,254.40 1,635.26 27,254.40 1,091.60 534.66 FREEWAY WRONG CLASSIFICATION

1/15/2008 NCA Bus. Entity Used Tyres 850.00 341.45 341.45 200,000.00 Duala Excess

1/15/2008 NCA Bus. Entity Assorted Goods 31,058.22 10,027.86 14,587.12 6,197.21 3,830.65 200,000.00 Duala Excess

1/15/2008 Neighbourhood Imp/Ex Bus. Entity Assorted Lubricants 28,167.89 7,396.88 10,572.91 3,907.74 3,489.14 5th Street Understated Value

1/15/2008 Neighbourhood Imp/Ex Bus. Entity Assorted Lubricants 17,825.00 4,680.88 11,476.69 4,241.80 439.08 5th Street Understated Value/DI

1/15/2008 Neighbourhood Imp/Ex Bus. Entity Lubricants 30,160.00 7,920.02 3,549.64 4,370.38 5th Street Understated Value/DI

1/15/2008 New Democrat Corp. Bus. Entity Printing Materials 6,087.75 976.82 NIL NIL 976.82 200,000.00 Peugeot Garage Excess

1/15/2008 Newlten Suwalk S/Store Business Entity Assorted Goods 8,486.13 2,158.26 Nill Nill 2,158.26 N/A EXCESS

1/15/2008 Newton Suwu Individual Generators 9,157.73 1,473.74 611.24 98.37 1,375.57 Camp Johnson Road Reissuance of CRF

1/15/2008 NICOM Liberia Bus. Entity Ethyl Alcohol 77,791.32 7,617.91 77,791.32 4,667.49 2,950.42 Lynch Street Wrong Rate

1/15/2008 Nya Gbaintor Business Entity Vehs./ast. Goods 27,951.61 5,101.83 Nil 4,655.36 446.47 5th Street Sinkor Bivac Destination Inspec.

1/15/2008 Nyah Weh/ C. Barclay Individual Vehs.P/E 10,543.14 2,644.79 13,327.10 2,333.68 311.11 Sinkor Oldroad Omission of 20% Excise

1/15/2008 Group, Lib. Business Entity Various Goods 8,948.00 3,128.26 10,325.20 2,725.64 402.62 Congo Town Understated Value/DI

1/15/2008 Olufemi Martins Omo Individual Lexus GX470 50,301.30 20,206.03 21,815.69 8,763.33 11,442.70 14th Street Understated Value

5/5/2010 Omar L. Sherif Individual Assorted Goods 578.12 180.30 180.30 200,000.00 MOJ Undeclared

2/17/2010 Omar Sheriff Individual Ford Explorer 4,193.00 1,684.33 2,996.17 1,203.55 480.78 RIA Highway Understated Value/DI

3/19/2010 Omaru Sangary Individual Vehs. Mattresses 24,936.50 4,865.04 17,762.14 3,597.37 1,267.67 Benson Street Understated value

3/23/2010 OMD GENERAL ENTERP BUS. ENTITY FABRICS 14,332.50 7,290.95 14,332.50 4,223.79 3,067.16 MECHLIN STREET UNDERSTATED VALUE

4/8/2010 OMD GENERAL ENTERP BUS. ENTITY ASST.GOODS 11,214.50 5,158.10 11,214.50 4,021.23 1,136.87 MECHLIN STREET UNDERSTATED VALUE

3/24/2010 OMEGA INVESTMENT BUS. ENTITY VEHS. P/E 74,752.00 14,050.64 14,665.18 33,333.13 10,717.51 PAYNESVILLE UNDERSTATED VALUE

4/3/2010 Oral Urey Business Man Veh. Personnal Effect 18,462.50 5,829.38 8,925.50 3,976.27 1,853.11 9th Street Omission 20% Excess

2/9/2010 Oral Urey Individual Entity Various Goods 55,651.20 20,876.20 44,458.54 7,195.45 13,680.75 Monrovia, Liberia Understated Value/DI

2/10/2010 ORAL UREY/VELCON BUS. ENTITY VEHS. P/E 46,737.65 11,201.18 55,771.01 10,649.79 551.37 SINKOR OLD ROAD OMISSION OF 20% EXC

4/23/2010 Orange Growth Bus. CenterBus. Entity Assorted Goods 18,130.25 4,356.44 10,208.74 3,439.80 916.64 Freeway Understated Value

4/23/2010 Our Lady of Fatima Reh. Orphanage GAC Audit Report 200,000.00 Lower Johnsonville Omission of Pen. On SP#053

6/3/2008 Oyleke Nelson Individual Used Ford Explprer Jeep 2,630.00 1,056.47 4,808.54 773.94 282.53 Broad Street Ommission of 20% NCRF/ Bivac Destination Inspect.

ANNEX 3A



5/3/2008 Pan Oxygen Factory Bus. Entity Oxygen Plant 149,746.20 17,969.54 148,276.10 8,896.57 9,072.97 Freeway Wrong Classification

2/22/2008 Panache Restaurant Bus. Entity Assorted Frozen 42,983.27 12,651.31 42,983.27 9,555.93 3,095.38 Sinkor, Airfield Wrong Classification

3/27/2008 PAPA KOLLIE INDIVIDUAL VEHS. P/E 18,951.30 5,776.88 10,269.28 4,060.73 1,716.15 SINKOR OMISSION OF 20% EXC

3/13/2008 Pasture Land Business

center Business Entity Various Goods 12,087.28 3,085.20 8,856.67 2,875.69 209.51 Gurley Street Understated Value/DI

12/28/2007 Patrick Jartoe Bus. Center Bus. Entity Assorted Goods 27,726.16 7,114.53 14,961.98 5,263.06 1,851.47 Paynesville Understated Value/DI

12/17/2007 Patrick Kennedy Individual Assorted Goods 1,125.00 211.16 - - 211.16 200,000.00 U.N. Drive Excess

8/2/2008 Peak Cataaliya Bus. Entity Used Tyres 3,750.00 1,105.13 1,105.13 Front Street Excess/PSI Consignment

3/27/2008 Pearson Borbor Business Entity Slippers 250.00 113.80 Nill Nill 113.80 N/A EXCESS

12/13/2007 PEOPLE'S FASHION BUS BUS. ENTITY VEHS.COMESTICS 19,116.56 4,331.51 8,872.26 2,379.52 1,951.99 MECHLIN STREET UNDERSTATED VALUE

11/26/2007 PEOPLE'S FASHION BUS BUS. ENTITY ASST.GOODS 7,451.20 3,697.47 7,451.20 2,900.21 797.26 MECHLIN STREET UNDERSTATED VALUE

12/14/2007 People's Fashion Bus. Bus. Entity Assorted Goods 7,620.53 4,014.08 7,620.53 3,195.20 818.88 Mechlin Street Understated value

4/16/2008 People's Fashion Bus. Business Entity Assorted Goods 11,750.84 3,333.74 7,451.20 2,900.21 433.53 Mechlin Street Understated value/BIVAC

12/19/2007 Petdezach Trading, Liberia

Inc. Business Entity Various Goods 10,630.00 4,073.17 11,524.39 3,160.15 913.02 Redlight/Paynesville Understated Value/DI

5/5/2008 Peter Sumo Individual Used Vehicles/PE 25,912.20 7,502.70 24,897.89 6,786.39 716.31 200,000.00 12th Street Understated Value

4/15/2008 Phebe Hospital D/Free Entity Assorted Goods 2,649.75 449.22 Nill Nill 449.22 200,000.00 N/A Undeclared

4/15/2008 Pipeline Bus. Center Bus. Entity Assorted Goods 16,541.84 4,487.22 3,902.00 585.22 Somalia Drive Understated Value

6/5/2008 Pokolo Anderson Bus. Entity Vehicles & P/E 27,208.90 9,515.53 28,077.93 6,658.49 2,857.04 Peugeot Garage Omission of 20% Excess

12/5/2008 Power Digital Trading Bus. Entity Assorted Goods 14,205.82 3,975.54 3,701.16 274.38 200,000.00 06-522-868 Excess

4/14/2008 Precious Collection Business Entity Gasoline Generator 9,630.94 1,550.11 Ninn Nill 1,550.11 N/A EXCESS

4/14/2008 Prince Toles Business Entity Asst. Goods 17,448.00 4,965.34 8,002.31 3,735.24 1,230.10 B.D. Inspection

4/1/2008 Princeway Auto Business Entity Assorted Goods 34,946.85 9,999.88 23,351.20 4,552.90 5,446.98 N/A EXCESS

5/7/2008 Properous Bus. Center Bus. Entity Assorted Goods 12,136.42 3,395.77 7,265.77 2,762.25 633.52 Paynesville Understated Value/DI

4/15/2008 Raj Enterprise Inc. Bus. Entity TV Stands/Atenna 229.97 68.66 68.66 Red Light Excess

9/4/2008 Rebecca Garley Optimun Bus. Entity Irish Spring Soap 86,642.50 10,956.67 11,604.12 2,696.31 8,260.36 200,000.00 Camp Johnsnon RoadUnderstated Value/BIVAC DI

9/4/2008 Rebecca Gballah Individual Vehicles/PE 27,807.30 5,590.48 29,452.96 5,284.00 306.48 Center Street Bivac Dest. Inspection

9/4/2008 Reginald C. Seih Individual Assorted Goods 3,525.80 563.43 563.43 Brewerville City Excess

1/5/2009 REGINALD SHE INDIVIDUAL VEHICLES/PE 907.16 143.47 NIL NIL 243.47 LOGAN TOWN UNDERSTATED

6/10/2008 REV MOSES GOBEH INDIVIDUAL VEHS. P/E 23,872.80 7,724.75 31,113.19 6,272.07 1,452.68 11TH STREET OMISSION OF 20% EXC

12/11/2009 Rev. George Tamba Individual VehIcles/ PE 11,816.20 3,608.06 13,031.99 3,275.19 332.87 Barnesville Omission Excise Tax

11/17/2009 Rev. Hilary G. Paul Individual VehIcles/ PE 15,057.35 3,478.83 18,625.09 3,190.33 288.50 21 Congo Town Omission Excise Tax

10/15/2009 Rev. Moses Gobah Individual Vehs.P/E 16,953.50 4,104.13 16,186.33 3,941.47 162.66 Sinkor Understated value

6/24/2008 RICHARD M. PASSAWE INDIVIDUAL VEHS. P/E 20,178.90 5,350.91 27,358.85 4,890.07 460.84 HOTEL AFRICA RD OMISSION OF 20% EXC

6/24/2008 Richard M. Passawee Individual VehIcles/ PE 20,178.90 5,350.91 27,359.85 4,854.07 496.84 Hotel Africa Rd Omission of excise

12/12/2008 Riverway Store Business Entity Used Clothes 23,743.23 3,821.47 14,990.00 2,412.64 1,408.83 N/A Understarted Vaule

11/10/2008 Riverway Stores Business Entity U/Clothes & Shoes 34,862.57 7,072.39 25,672.53 4,180.92 2,891.47 Randall Street Excess & Underclared

12/26/2008 Robert Fayia/T. Gulley Individual VehIcles/ PE 13,408.50 2,410.17 13,253.01 2,328.33 81.84 JFK Comp. Sinkor Understated value

12/29/2008 Robert Gbeintor Individual Entity Used Mack Truck 18,308.61 2,946.78 8,121.26 1,307.11 1,639.67 A.B. Tolbert Road Understated Value/DI

10/29/2008 Romeo Acquoi Individual Vehs.P/E 13,723.01 5,450.23 20,434.38 3,694.40 1,755.83 Chocolate City Understated value

11/27/2009 Romio Rizk Individual Assorted Appliances 2,570.00 1,444.85 - - 1,444.85 - Monrovia U.S. Embassy Auction

11/25/2009 Ron Inc. Bus. Entity Assorted Goods 14,965.75 3,808.88 7,078.63 2,574.32 1,234.56 Broad Street Understated Value/DI

10/28/2008 Roomy Brother Bus. Entity Wheat Flour 51,699.38 19,678.54 51,699.38 16,912.63 2,765.91 Waterside Omission of 5% Duty

1/21/2009 Roosevelt Urey Individual Assorted Goods 1,890.23 560.08 560.08 200,000.00 Careysburg Undeclared

12/10/2008 Roselyn Wemil-Yarmai Individual Vehicles & P/E 18,506.21 4,615.53 14,823.23 3,525.88 1,089.65 200,000.00 King Gray Excess & Undeclared

12/2/2008 Rotary Club Monrovia D/Free Entity Assorted Goods 9,725.00 107.20 Nill Nill 107.20 N/A EXCESS

7/22/2008 RUFUS MCKAY INDIVIDUAL VEHS. P/E 28,492.14 9,922.80 26,193.36 8,301.70 1,621.10 GARDNERVILLE RD UNDERSTATED VALUE

1/3/2009 Rufus Mokay Individual Vehicles/PE 18,113.24 4,658.91 18,872.16 3,458.45 1,200.45 Gardnersville Omission of 20% Exc.

11/26/2008 Rufus Wherwon Zeh Individual Assorted Goods 13,849.70 3,318.77 11,161.27 2,315.27 1,003.50 200,000.00 Congo Town Undeclared

11/24/2008 Saah B. Johnson Individual Dump Truck 15,976.00 5,990.20 19,572.04 3,150.12 2,840.08 Paynesville NCRF Penalty

12/9/2008 Saah Karvee Bus. Center Bus. Entity PVC Slippers 16,945.10 4,087.15 10,357.20 3,552.12 535.03 200,000.00 Randall Street Excess

1/23/2009 Sabari International Inc. Bus. Entity Spaghetti 9,178.73 2,213.91 9,178.73 1,853.63 360.28 Water Street wrong Rate

1/5/2009 Sabastin Collins Individual Used Tyres 375.00 150.64 150.64 200,000.00 Logan Town Excess

11/25/2008 Sachu Traders Bus. Entity Assorted Goods 9,137.00 2,768.13 2,194.48 573.65 200,000.00 Randall Street Undeclared

1/14/2009 Sachu Traders Bus. Entity Diary Books/Paper 15,731.10 8,844.03 15,731.10 2,111.12 6,732.91 Randall Street Wrong Classification

1/14/2009 Sachu Traders Business Entity Plastic Profile 281.25 67.84 Nill Nill 67.84 N/A EXCESS

9/15/2008 Sachu Traders Business Entity Assorted Goods 20,967.71 3,828.59 16,276.60 2,971.54 857.05 Randall Street Excess/Bivac PSI

11/14/2008 Saifu & Bros. Bus. Center Bus. Entity Assorted Goods 17,557.05 4,000.55 11,248.07 3,697.85 302.70 200,000.00 Waterside Excess

12/8/2008 Saita Coleman Individual General Merchandise 22,380.00 6,275.77 12,145.00 4,777.11 1,498.66 200,000.00 24th Street Excess & Undeclared

8/10/2008 Saitta Coleman Individual Assorted Goods 22,789.00 6,602.17 12,473.00 5,047.92 1,554.25 200,000.00 24th Street Understated Value/BIVAC DI

10/14/2008 Salman Incorporated Bus. Entity Land Cruiser 42,424.96 6,828.29 16,558.16 2,665.03 4,163.26 Water Street Understated Value/DI

1/18/2008 Sam John Store Bus. Entity Asst Goods 8,751.00 2,180.37 10,287.45 1,925.83 254.54 Water St. Bivac Destination Insp.

1/18/2008 Samuel & Eisha Dean Lib. Returnee Perkins Gen. 6,750.00 1,086.41 Nill Nill 1,086.41 N/A Undeclared

10/28/2008 Samuel M. Zeon Businessman Assorted Goods 4,462.50 866.88 Nill Nill 866.88 200,000.00 N/A Undeclared

9/8/2008 Samuel Quermorlu Individual Vehs/Goods 18,890.00 6,591.26 4,899.15 1,692.11 Chicken Soup Factory Understated Value

10/6/2008 Samuel Weah Individual Entity Assorted Goods 30,239.00 9,851.40 18,635.77 6,759.73 3,091.67 200,000.00 Paynesville Undeclared

12/17/2008 Sando Johnson Individual Vehs.P/E 17,232.91 5,759.64 23,217.55 5,475.69 283.95 Paynesville Omission of 20% Excise

12/20/2008 Sanu Diallo Bus. Entity Assorted Goods 28,405.44 7,124.03 19,182.85 6,772.10 351.93 Red Light Understated Value

10/20/2008 Satta Bumdor Individual Various 11,357.60 6,209.17 20,173.82 3,660.44 2,548.73 Freeport, Freeway Omission of 20% Excise

12/1/2008 Sawyer & Associates Bus. Entity Assorted Goods 2,470.00 908.47 908.47 Monrovia, Liberia Underclared

10/27/2008 Saymah Packing Proc. Bus. Entity Super Seasonign 15,112.60 10,191.35 4,894.14 2,227.80 7,963.55 Paynesville Understated Value

11/27/2008 Saymah Packing Proc. Bus. Entity Super Seasonign 48,217.80 32,950.86 15,904.35 7,239.66 25,711.20 Paynesville Understated Value

ANNEX 3A



11/20/2008 SDTM (Liberia) Inc. Bus. Entity Wheat Flour 101,574.65 37,413.57 101,574.65 31,979.33 5,434.24 Freeway Omission of 5% Duty

11/20/2008 Sea Trans Shipping & Sted Bus. Entity Dump Truck 8,950.00 1,440.50 8,600.00 1,384.17 56.33 Buchanan St Understated value

11/17/2008 Sekou Jabateh Individual VehIcles/ PE 16,827.50 5,536.09 16,118.98 2,903.24 2,632.85 JJY/ New Georgia Omission of excise

11/27/2008 Sekou Jabateh Individual VehIcles/ PE 25,279.00 4,581.11 24,928.82 4,465.92 115.19 JJY/ New Georgia Understated value

12/5/2008 Sekou Jabateh Individual VehIcles/ PE 25,579.05 4,643.63 24,928.82 4,465.92 177.71 JJY/ New Georgia Understated value

11/10/2008 Sennade Bus. Center Business Entity Asst. Goods 18,642.77 5,316.18 7,789.19 3,803.46 1,512.72 B.D. Inspection

11/1/2008 SETHI BROTHERS INC BUS. ENTITY WOOD PRESERVATIVE 50,081.45 12,079.64 50,081.45 5,381.26 6,698.38 CLARA TOWN WRONG CLASSIFICATION

8/11/2008 Sewon Weah Individual Vehicles & Sneakers 48,144.50 18,193.80 20,193.86 6,797.86 11,395.94 17th Street Understated Value

12/2/2008 Shaka Bus. Center Bus. Entity Assorted Goods 9,667.77 2,831.94 6,023.00 2,436.80 395.14 Broad Street Understated value

11/24/2008 Sham Inc. Bus. Entity Frozen C/Feet 18,772.00 3,191.24 18,772.00 2,721.94 469.30 Clara Town Wrong Rate

8/29/2008 She Momo Vincent Business Entity International Dump Truck 15,100.00 5,661.75 10,175.25 1,637.70 4,024.05 Cooper's Beach Understated value/Bivac Destination Inspection

8/29/2008 Sheik Sekou Bility Individual Assorted Goods 14,445.42 2,758.26 8,160.49 2,379.81 378.45 200,000.00 24th Street Excess

8/29/2008 Sheilk Business Center Business Entity PVC Slippers 144.89 50.37 50.37 200,000.00 Mechlin Street Excess

11/7/2008 Shellu Sons Business CenterBus. Entity GAC Audit Report 200,000.00 Waterside Omission of Pen. On SP#061

10/6/2008 Shelrque Ahmed Business Man Asst. Goods 24,032.60 5,270.52 8,234.12 2,351.98 2,918.54 Paynesville Red Light Understated Value

7/19/2008 Shree Krishna Inc. Bus. Entity Vehs/Goods 8,387.83 2,983.24 8,387.83 1,804.72 1,178.52 Logan Town Omission of 20% Exc.

7/28/2008 Siafa Bright Individual Mattresses 525.00 182.81 - - 182.81 - Ashmun Street Understated Value

7/23/2008 Siah Bus. Center Bus. Entity Assorted Goods 24,842.40 6,125.14 9,723.61 3,631.92 2,493.22 Randall Street Understated Value

10/11/1957 SIAH TRANS-ATLANTIC TRDBUS.ENTITY ASST.GOODS 25,789.53 6,084.23 11,852.72 4,458.86 1,625.37 WATER STREET UNDERSTATED

2/27/1973 Sidiki Conde Individual Vehs.P/E 16,595.75 5,282.45 18,544.93 3,598.90 1,683.55 Waterside Omission of 20% Excise

12/26/1956 Sierra Fishing Liberia Inc. Bus. Entity African Mixed Fish 132,440.00 12,813.57 132,440.00 12,581.80 231.77 Paynesville Miscalculation 7% GST

8/22/2008 Sigimund J. Ajavon Individual Vehicles & P/E 34,296.77 6,372.96 32,747.55 6,220.27 152.69 17th Street Understated Value

7/24/2008 SINGH BROTHERS BUS.ENTITY WIRE NAIL 1,275.00 238.08 NIL NIL 238.08 PAYNESVILLE UNDERSTATED

3/5/2008 Solid Foundation Inc. Business Entity Various Goods 8,403.20 3,481.00 6,217.61 2,711.18 769.82 Clara Town, Bushrod IslandUnderstated value/Bivac Destination Inspection

7/24/2008 Solid Foundation Inc. Business Entity Various Goods 8,004.00 5,163.40 8,004.00 3,450.25 1,713.15 Clara Town, Bushrod IslandUnderstatement of Penalty for NCRF

8/28/2008 Solid Foundation Inc. Business Entity Various Goods 7,465.45 2,839.38 7,465.45 2,040.58 798.80 Clara Town, Bushrod IslandUnderstatement of Penalty for NCRF

1/9/2008 Solid Foundation Inc. Business Entity Various Goods 7,385.00 2,945.27 7,385.00 2,155.08 790.19 Clara Town, Bushrod IslandUnderstatement of Penalty for NCRF

8/28/2008 Solid Foundation Inc. Business Entity Various Goods 8,683.48 3,771.09 6,461.98 2,016.31 1,754.78 Clara Town, Bushrod IslandUnderstated value/Bivac Destination Inspection


6/25/2008 Solid Foundation Inc. Business Entity Various Goods 12,991.93 5,694.64 7,105.09 3,092.27 2,602.37 Clara Town, Bushrod IslandInspection


9/12/2008 Solid Foundation Inc. Business Entity Various 6,092.39 3,162.21 6,091.39 2,573.68 588.53 Clara Town Understated 30% NCRF

10/10/2007 Solid Foundation Inc. Business Entity Various 6,646.97 3,142.98 6,646.97 2,431.76 711.22 Clara Town Understated 30% NCRF

7/29/2008 Solid Foundation Inc. Business Entity Various Goods 7,118.94 3,450.37 7,118.94 2,756.41 693.96 Congo Town Omission of 20% Excise Tax

9/21/2007 Solo & Son Bus. Entity Tap Tap Cubes 46,797.91 16,295.03 6,013.50 2,737.48 13,557.55 Red Light Understated Value/DI

7/28/2008 Solo & Son Business Man Monosodium Glutam 18,726.00 31,422.61 18,726.00 4,516.72 26,905.89 Paynesville Red Light Wrong Classification

2/6/2008 Solo & Son Business Man Monosodium/L. Meet 7,150.04 3,538.48 7,150.04 1,896.23 1,642.25 Paynesville Red Light Wrong Classification

7/24/2008 Solo & Son Business Entity TapTap Cubes 7,921.91 2,869.32 6,103.50 2,778.34 90.98 Paynesville Red Light Understated Value

8/13/2008 Solo & Sons Bus. Entity Tap Tap Cubes 6,013.25 3,380.80 6,013.25 2,737.48 643.32 Paynesville Redlight Understated NCRF 20%

3/7/2008 Solo & Sons Business Entity Various Goods 11,488.98 3,593.08 7,150.04 1,898.23 1,694.85 Redlight/Paynesville Wrong Tariff Rate

2/29/2008 Solomon Fayiah Individual Used Ford 2,610.00 489.90 - - 489.90 - Bardnersville U.S. Embassy Auction

2/8/2008 SONNY SMITH INDIVIDUAL VEHS. P/E 23,218.55 5,865.66 25,067.82 4,697.48 1,168.18 POINT FOUR OMISSION OF 20% EXC

10/9/2008 Sopoo Duarto Individual Vehicles & P/E 16,436.24 6,127.13 23,001.54 5,332.75 794.38 Ashmun Street Omission of 20% Exc.

3/20/2008 Souriah S. Haider Bus. Man Asst Goods 22,429.69 6,436.15 8,610.47 3,215.23 3,220.92 Camp Johnson Rd Understated value

7/15/2008 SouthEastern Trding. Co. Business Entity Asst. Goods 29,305.41 5,055.26 12,675.11 3,870.49 1,184.77 Bushrod Island Understated Value

8/28/2008 Sow Business Center Bus. Entity General Merchandise 25,420.85 7,152.47 11,143.65 5,532.28 1,620.19 200,000.00 Water Street Understated Value/DI

7/23/2008 SOW BUSINESS ENTERPRISEBUS.ENTITY ASST.GOODS 28,002.74 7,168.90 12,728.86 4,876.72 2,292.18 WATER STREET UNDERSTATED

1/8/2008 Sport Smart Business Entity Vehs./ast. Goods 75,060.50 20,218.30 49,067.85 17,434.86 2,783.44 1st Street, Sinkor Omission of 20% Excise

8/13/2008 St. Greoge Group Lib. Inc. Business Entity Vehicles/S. parts 81,250.00 13,077.19 81,250.00 843.50 12,233.69 4th Street Omission 20% Excess

1/9/2008 St. Joseph Cath. Hosp. Reg.Org. Hospital Materials 11,444.42 3,517.42 11,616.77 3,253.92 263.50 Tubman Blvd. Omission of 20% Excise

9/16/2008 Star General Merchandise Bus. Entity Assorted Goods 20,169.02 6,021.59 12,032.98 4,043.01 1,978.58 Benson Street Understated Value

1/2/2008 Steven M. Yekeson Individual Vehicles & P/E 15,421.00 6,046.68 7,949.45 2,744.79 3,301.89 Maritime Aff Understated Value

8/22/2008 Still & Yamaha Auto Part Bus. Entity Bearings 1,225.15 295.51 295.51 Ganta Excess

8/28/2008 Stop & Shop S/Market Bus. Entity GAC Audit Report 200,000.00 Randall Street Omission of Pen. On SP#039

7/17/2008 Suah Wanyah Bus. Entity Asst Goods 18,401.75 4,930.63 10,392.43 3,887.80 1,042.83 105 Broad Street Understated value

8/1/2008 Suchrist Auto Spare Business Entity Various Goods 27,006.38 1,014.61 8,050.00 3,044.75 7,101.86 Clara Town, Bushrod IslandUnderstated value/Bivac Destination Inspection

8/20/2008 Sumo Kutu Akoi Individual GAC Audit Report 200,000.00 6571096 Omission of Pen. On SP#076

8/20/2008 Sunset Inc. Bus. Entity Men Shoes 573.08 199.55 199.55 200,000.00 Clara Town Excess

8/26/2008 Sunwatt Hsiao Trading Bus. Entity Piwder Soap 2,288.76 1,350.58 1,350.58 200,000.00 Paynesville Excess

9/2/2008 Super Boowe Business Entity Cream Crackers 22,049.31 4,447.34 9,615.00 3,862.35 584.99 N/A Bivac Destination Insp.

9/2/2008 Super Shine Industrial Bus. Entity Monosodium 57,206.40 27,857.64 57,206.40 3,466.37 24,391.27 Mechlin Street Wrong Classification

9/2/2008 Super Shine Industrial Bus. Entity Monosodium 59,792.00 28,342.96 59,792.00 3,587.52 24,755.44 Mechlin Street Wrong Classification

12/5/2007 T & Gretta Store Business Entity Assorted Goods 13,557.22 5,348.08 10,528.60 4,523.20 824.88 N/A EXCESS

12/7/2007 T. and Gretta Store Bus. Entity GAC Audit Report 200,000.00 Benson Street Omission of Pen. On SP#014

1/31/2008 T. Choithram & Son Bus. Entity Flavour Milk 17,021.68 2,639.91 17,021.68 2,045.56 594.35 Vai Town wrong Rate

1/7/2008 T. Choithram & Son Business Entity Flavour Milk 16,925.91 2,303.99 16,925.00 1,637.57 666.42 Vai town Wrong Classification

1/7/2008 T. Choithram & Son Business Entity Flavour Milk 11,346.38 1,529.73 11,346.38 1,097.78 431.95 Vai town Wrong Classification

1/7/2008 Taian Int'l Invest. Ltd Business Entity Assorted Goods 14,723.76 4,908.65 10,051.27 3,495.45 1,413.20 200,000.00 Congo Town Understated value/BIVAC

4/1/2008 TAMBA DAVID INDIVIDUAL VEHICLES/PE 20,879.01 5,770.90 19,783.09 3,536.51 2,234.40 GARDNESVILLE UNDERSTATED

1/16/2008 Ted Williams Individual Barbecue Grill 486.25 143.30 143.30 Jallah Town Undeclared

2/25/2008 Telly Bus Center Business Entity Assorted Goods 4,465.26 1,226.40 Nil Nill 1,226.40 N/A EXCESS

2/4/2008 Tenneh Johnson Individual Assorted Goods 1,925.00 347.28 347.28 200,000.00 Freeport Excess

ANNEX 3A



1/7/2008 The Higher Lajina Bus. Entity Assorted Dresses 22,647.11 6,564.94 11,113.86 4,423.01 2,141.93 200,000.00 Monrovia, Liberia Excess

3/29/2008 Thierno A. Diallo/B Com Bus. Entity Assorted Goods 12,640.00 3,157.21 8,021.80 2,774.60 382.61 Perry Street Understated Value

1/28/2008 Thomas Blah/ Broadway Consolidated PLCBusiness Entity Various Goods 18,075.00 8,022.50 5,441.36 2,252.99 5,769.53 Broad Street Underdeclared items/Understated Value/Bivac Inspect.

2/22/2008 Thomas Z. Gonkenwon Business Entity Furniture 1,500.00 522.30 - - 522.30 - Monrovia U.S. Embassy Auction

1/18/2008 Thunder Bird Corp. Bus. Entity Lubricants 32,414.96 8,512.18 15,230.04 5,629.01 2,883.17 Vai Town Understated Value

12/27/2008 Tina Paye Busines Woman Vehicles/Asst. Goods 11,941.20 4,614.83 13,477.65 3,426.80 1,188.03 Broad Street Omission 20% Excess

1/29/2008 Tommy Wreh Business CenterBusiness Entity Assorted goods 21,579.24 5,276.52 7,835.50 2,751.19 2,525.33 Randall Street underStated Value

2/29/2008 Trans-Afro Group of Co. Bus. Entity Assorted Goods 2,470.00 370.49 370.49 200,000.00 Somalia Drive Underclared

2/25/2008 Trinity Dental Clinic Religious Org. Vehicle 30,218.31 12,138.69 11,231.11 907.58 ELWA Campus Omission of 20% Excess

12/12/2008 Trinity Dental Clinic Bus. Entity Toyota Landcruser 31,209.14 12,536.71 11,588.58 948.13 ELWA Campus Omission of 20% Excess

2/25/2008 Trinity Dental Clinic Bus. Entity Toyota Landcruser 30,853.63 12,393.91 11,441.01 952.90 ELWA Campus Omission of 20% Excess

12/12/2008 Tripple Stars Business Entity Assorted Goods 33,384.15 10,444.36 33,384.15 10,057.38 386.98 U.N. Drive Miscalculation of NCRF Pen

12/14/2007 Tropical Reserves Ent. Bus. Entity Used Trucks 89,637.12 14,427.10 43,873.78 7,061.48 7,365.62 Paynesville Understated value

12/10/2008 True Friendship Bus. C Business Entity Assorted Goods 14,623.35 8,734.46 4,623.35 5,605.07 3,129.39 Bushrod Island Understated NCRF Penalty

2/6/2008 Commission Gov. Agency Vehicles 32,075.00 12,884.53 32,075.00 6,020.48 6,864.05 9th Gurle Street Omission of 20% Exc.

1/30/2008 UN Drive S/Market Bus. Entity Parboiled Rice 20,185.05 950.29 20,185.05 950.29 Vai Town Omission of Duty & Fees

10/19/2007 UN Drive S/Market Bus. Entity Parboiled Rice 23,576.00 1,075.37 23,576.00 1,075.37 Sinkor Omission of Duty & Fees

4/1/2008 UNDP Stotage Equipment Printed 31,917.00

2/28/2008 UNIQUE ENTERPRISE INC BUS. ENTITY VEHICLES 23,090.00 4,179.58 19,345.33 3,481.68 697.90 SKD BOULEVARD UNDERSTATED VALUE

2/26/2008 UNITED MOTOR COMPANY BUS. ENTITY VEHICLES 27,050.04 5,077.29 27,050.04 4,353.72 723.57 VAI TOWN WRONG CLASSIFICATION

12/18/2008 United Street Inc. Business Entity Vehicles 19,190.01 6,266.63 N/A 3,944.13 2,324.50 Freeport Omission of 20% Exc.

10/3/2008 Unity Enterprise Business Entity New Wrangler Jeep 28,430.78 10,000.00 16,684.00 5,809.37 4,289.62 Somalia Drive

7/3/2008 Unity Enterprise Inc. Bus. Entity Asst Goods 72,544.75 17,387.82 N/A 2,782.61 14,605.21 200,000.00 Mechlin Street Underdeclared

2/14/2008 Universal Bus. Center Bus. Entity Used Clothes 24,678.78 3,972.05 22,618.82 3,640.50 331.55 Water Street Understated Freight

12/1/2007 Universal Forestry Co. Bus. Entity Assorted Goods 47,279.00 4,835.33 10,914.00 1,537.54 3,297.79 Carey Street Understated Value

3/4/2008 Universal Imp & Exp Bus. Entity Powder Milk 51,005.00 5,480.49 51,005.00 4,934.74 545.75 Vai Town Wrong Rate

2/19/2008 Universal Imp. & Exp Inc. Bus. Entity Monosodium 28,836.72 10,488.23 28,836.72 3,869.89 6,618.34 Vai Town Wrong Classification

22/26/08 Universal Import & Export Business Entity Milaut Full Cream 83,299.70 8,950.56 83,299.70 8,059.25 891.31 Vai Town Wrong Tariff Rate

12/14/2008 Universal Select Bus. Entity Mattresses & Shoes 30,167.50 4,865.23 14,481.79 3,922.53 942.70 Paynesville Understated Value

3/20/2008 Varfee Kamara Individual Vehs/Goods 17,261.48 4,506.80 4,369.16 137.64 Red Light Understated Value

3/20/2008 Vaseba Dukuly Individual Entity Various Goods 15,763.48 9,216.62 8,900.89 2,545.74 6,670.88 Jacob Town Understated Value/DI

2/19/2010 Victor Payne Individual Assorted Goods 188.10 53.89 - - 53.89 200,000.00 Vai Town Excess

2/18/2010 Victor Payne Individual Packing Bags - - - - - 200,000.00 Vai Town Excess

3/1/2010 Victoria Enterprise Business Entity Toilet Tissues 18,834.48 5,319.51 7,258.32 2,527.34 2,792.17 Weterside Undestated Value

2/20/2010 Victoria Enterprise Business Entity Toilet Tissues 17,342.80 4,977.03 7,420.00 2,583.64 2,393.39 Weterside Undestated Value

2/19/2010 VK HOLDING LTD BUS. ENTITY ASST. SOFT 23,860.89 7,908.14 7,908.14 4,215.07 3,401.72 BROAD STREET UNDERSTATED VALUE

1/26/2010 Voilet Bright Individual Vehs.P/E 23,182.00 6,016.17 17,980.18 4,592.92 1,423.25 Broad Street Omission of 20% Excise

1/26/2010 WALTER COOPER JR INDIVIDUAL VEHS.P/E 15,938.36 4,719.69 17,089.17 4,409.60 310.08 BARDNERSVILLE OMISSION OF 20% EXC

1/26/2010 Washington Jameison Individual Personal Effects 3,450.00 555.28 555.28 200,000.00 New Georgia Undeclared

3/1/2010 Wazni Trading Corp. Bus. Entity Installation Units 113,220.00 27,308.66 112,110.00 1,121.10 26,187.56 Clara Town Wrong Classification

3/2/2010 West African Children SUPP.D/Free Entity Generator/S/Drink 2,150.00 186.15 Nill Nill 186.15 N/A EXCESS

3/3/2010 William & Garblah Orphanageorganization Vehicles/Clothes 12,569.00 5,011.44 14,443.17 2,585.60 2,425.84 Kissi Camp/Paynes. Omission of 20% Exc.

3/3/2010 WILLIAM BROWN INDIVIDUAL VEHS. P/E 16,803.47 4,534.76 23,004.03 4,128.30 406.46 N-3 HARBEL GARD OMISSION OF 20% EXC

3/3/2010 William Dewalt Individual Vehicles/PE 19,345.54 9,828.28 N/A 3,194.32 6,633.96 Mesurado Company Omission of 20% Exc.

3/5/2010 William Mckay Individual VehIcles/ PE 19,679.40 5,680.05 14,225.14 2,634.53 3,045.52 Barnesville Rd. Understated value

3/11/2010 Wilmot Ward Individual Vehs.P/E 23,886.54 7,869.71 12,510.77 4,556.89 3,312.82 Paynesville Understated value

3/11/2010 Xin Yuan Transnat'l Cor. Bus. Entity Mini Bus/Truck 55,207.40 9,518.64 55,207.40 8,885.61 633.03 Randall Street wrong Rate

3/11/2010 Yeambay Resource Co. Bus. Entity Slippers/Shoes 21,551.01 5,302.88 12,546.57 4,467.66 835.22 200,000.00 Broad Street Understated Value

3/12/2010 Yeambay Resources Bus. Entity Fan Med. Soap 8,431.83 9,829.35 8,431.83 4,407.45 5,421.90 200,000.00 Broad Street Understated Weight

3/12/2010 YMCA of Liberia Organization Land Cruiser 37,840.32 15,200.45 34,097.51 14,028.30 1,172.15 Crown Hill Understated Value

3/12/2010 York Trading Inc. Bus. Entity Premium Beer 9,222.00 16,605.40 10,144.20 15,580.46 1,024.94 Vai Town Understated Value

3/12/2010 York Trading Inc. Business Entity Wood Presevative 23,790.87 5,738.36 23,790.87 2,556.33 3,182.03 Vai Town Wrong Classification

3/12/2010 YOUSEF FAWAZ STORE BUS.ENTITY ASST. SOFT DRINK 17,205.00 7,761.74 17,205.00 7,441.81 319.93 WATER STREET UNDERSTATED

Total 17,586,705.40 4,771,586.63 11,641,566.20 2,977,451.39 , 1,794,135.24 29,300,000.00

ANNEX 3B

SCHEDULE OF DEFAULTING IMPORTERS - "EXCESSES"

N0N0N0N0 Year Importer US$ L$ SP# Entry # Amt. Due (US$) Amt Due(L$) Amt Paid @ CBL(US) L$ Receipt # Pmt Date Bal. Due(US) Bal. Due(L$) Remarks

1 11/27/2009 Bill Brothers 368.98 0.00 0019 8141 368.98 0.00 368.98 0.00 554034 02/03/09 0.00 0.00 Excess

2 11/6/2008 Kingdon Harvest Min. Inc. 372.20 0.00 0025 00081 372.20 0.00 372.20 0.00 554024 02/03/09 0.00 0.00 Excess

1/14/2009 Alexander Smarte 2,415.00 0.00 0027 650 2,415.00 0.00 Excess

1 8/28/2008 Kalifala Dolley 557.99 0.00 557.99 0.00 0.00 0.00 557.99 0.00 Excess

2 4/15/2008 Raj Enterprise Inc. 68.66 0.00 0253 13011 68.66 0.00 68.66 0.00 687787 01/11/10 0.00 0.00 Excess

3 10/10/2008 Gloria Kermah 1,313.53 0.00 0028 1232 1,313.53 0.00 0.00 1,313.53 0.00 Excess

4 5/20/2008 J. Anthony Kollie 155.48 0.00 0035 14813 155.48 0.00 155.48 0.00 Excess

5 7/18/2008 General Textile Center 105.86 0.00 0040 0087 105.86 0.00 105.86 0.00 563850 02/25/09 0.00 0.00 Excess

6 8/22/2008 Stil & Yamaha Auto Part 295.51 0.00 295.51 0.00 0.00 295.51 0.00 Excess

7 1/30/2008 Kengoz Incorporation 3,099.31 0.00 0155 5994 3,099.31 0.00 3,099.31 0.00 623984 07/03/09 0.00 0.00 Excess

8 9/19/2007 Liberia Tyres Center 1,925.37 0.00 0119 3366 1,925.37 0.00 1,925.37 0.00 594996 04/24/09 0.00 0.00 Excess

9 2/25/2008 Telly Bus. Center 1,226.40 0.00 363 11775 1,226.40 0.00 1,226.40 0.00 278087 01/02/08 0.00 0.00 Excess

10 12/2/2008 Fassour Bus. Cen ter 3,365.30 0.00 377 10619 3,365.30 0.00 300.00 0.00 321639 4/14/2008 3,065.30 0.00 Excess

11 4/1/2008 Princeway Auto 5,446.98 0.00 5,446.98 0.00 5,446.98 0.00 Excess

12 9/2/2007 Ernest Freeman 251.49 0.00 251.49 0.00 251.49 0.00 278858 01/07/08 0.00 0.00 Excess

13 4/14/2008 Precious Collection 1,550.11 0.00 433 13915 1,550.11 0.00 1,550.11 0.00 287558 /28291601/29/08

/01/17/080.00 0.00 Excess

14 12/2/2008 Rotary Club Monrovia 107.20 0.00 107.20 0.00 107.20 0.00 Excess

15 3/27/2008 Pearson Borbor 113.80 0.00 003 13794 113.80 0.00 113.80 0.00 Excess

16 3/2/2010West African Children

Supp.186.15 008 14582 186.15 0.00 0.00 0.00 186.15 0.00 Excess

17 3/12/2007 N V Konneh Inc. 1,250.17 1,250.17 0.00 0.00 0.00 1,250.17 0.00 Excess

18 1/14/2009 Sachu Traders 67.84 0.00 67.84 0.00 67.84 0.00 Excess

19 6/19/2009 Annie S. Kromah 198.11 0.00 198.11 0.00 0.00 0.00 198.11 0.00 Excess

20 2/22/2008 Isaac P. Acquah 388.70 0.00 388.70 0.00 388.70 0.00 Excess

21 3/3/2008 Hsiao G. M. Trading 2,171.93 0.00 018 0444 2,171.93 0.00 2,171.93 0.00 283681 01/18/08 0.00 0.00 Excess

ANNEX 3B

SCHEDULE OF DEFAULTING IMPORTERS - "EXCESSES"

22 9/2/2008 Maryline Fashion 241.10 020 13593 241.10 0.00 241.10 0.00 318670 /36371404/07/08

/07/04/080.00 0.00 Excess

23 3/9/2009 Bestyway Cargo 4,141.36 0.00 021 13900 4,141.36 0.00 4,141.36 0.00 Excess

24 9/2/2008 Super Boowe 584.99 0.00 584.99 0.00 0.00 584.99 0.00 Excess

25 8/2/2007 Ernest Freeman 160.95 0.00 024 0262 160.95 0.00 160.95 0.00 287537 01/29/08 0.00 0.00 Excess

26 Zena A. Syer 1,013.87 0.00 227 6926 1,013.87 0.00 Excess

27 10/20/2008 George M. Kranto 99.80 0.00 99.80 0.00 0.00 99.80 0.00 Excess

28 3/1/2008 Manhattan Trading center 183.94 0.00 080 3479 183.94 0.00 183.94 0.00 06/11/84 04/15/08 0.00 0.00 Excess

29 12/1/2008 Sawyer & Associates 908.47 0.00 0259 13330 908.47 0.00 908.47 0.00 Excess

30 3/3/2008 Michael V. Suah 159.99 262 15508 159.99 0.00 0.00 0.00 159.99 0.00 Excess

31 10/11/2008 JVS Enterprise Lib. Inc. 150.15 0.00 0266 15682 150.15 0.00 150.15 0.00 682146 12/23/09 0.00 0.00 Excess

32 9/4/2008 Rginald C. Seih 563.43 0.00 0269 14565 563.43 0.00 563.48 0.00 682430 12/24/09 (0.05) 0.00 Excess

33 12/7/2008 Liberia Cement Corp. 95.37 0.00 418 13024 95.37 0.00 95.37 0.00 Excess

34 10/6/2008 Mohammed Passawe 463.54 0.00 0209 9026 463.54 0.00 463.54 0.00 Excess

35 8/11/2009 Transmondial Inc 211.39 220 10415 211.39 211.39 Excess

36 9/14/2009 Aderis Garments 318.72 0.00 075 3557 318.72 0.00 318.72 0.00 331295 04/29/08 318.72 0.00 Excess

37 11/10/2008 Riverway Store 2,891.47 0.00 172 6332 2,891.47 0.00 2,891.47 0.00 356394 6/19/2008 0.00 0.00 PAID IN FULL

ANNEX 3C

SCHEDULE OF DEFAULTING IMPORTERS: OMISSION OF DUTIES

# Year Importer US$ L$ SP# Entry # Amt. Due (US$) Amt Due(L$) Amt Paid @ CBL(US) L$ Receipt # Pmt Date Bal. Due(US) Bal. Due(L$)

1 1/16/2008 Int'l Union for Conse 8,054.21 0.00 0211 9604 8,054.21 0.00 8,054.21 0.00 Sent to MOJ

2 8/22/2009 Afropa-Liberia 26,015.37 0.00 26,015.37 0.00 0.00 0.00 26,015.37 0.00 No official Doc. Seen

3 2/12/2009 ATCO 1,700.86 0.00 1,700.86 0.00 0.00 1,700.86 0.00 Sent to MOJ

4 1/8/2008 Sport Smart 2,783.44 0.00 42412147-

121562,783.44 0.00 2,783.44 0.00 446898 5/6/2010 0.00 0.00 PAID IN FULL

5 10/1/2008 Gemelko 1,755.73 0.00 078 1555-1556 1,755.73 0.00 1,755.73

381993/38731

0/337074/102

3810

8/13/08/8/27/08/5/0

8/08/09/05/20110.00 0.00 PAID IN FULL

6 4/6/2007 Euguene Salvage 1,646.77 0.00 296 9003-9006 1,646.77 0.00 0.00 0.00 1,646.77 0.00 Sent to MOJ

7 12/26/2007 Emmanuel Hardy 682.98 0.00 181 4300-4403 682.98 0.00 0.00 0.00 682.98 0.00 Sent to MOJ

8 1/22/2009 Edith Sayegbe /D. Selina 786.05 0.00 145 3886-4166 786.05 0.00 786.05 0.00 354417 06/12/08 0.00 0.00 PAID IN FULL

9 1/20/2009 Edith Gibson 1,427.42 0.00 352 9087-9090 1,427.42 0.00 0.00 0.00 1,427.42 0.00 Sent to MOJ

10 1/29/2009 D. Wolobah Selma 2,203.63 0.00 409 14256 2,203.63 0.00 0.00 0.00 2,203.63 0.00 Sent to MOJ

11 3/19/2009 Cllr. James Mayson 184.02 0.00 2253664,36

657

&3666

184.02 0.00 0.00 0.00 184.02 0.00 Sent to MOJ

12 3/6/2009 City Used Car Center 3,226.90 0.00 182 4450-4454 3,226.90 0.00 3,226.90 0.00

394086

/363554 /

363552

8/21/08

/9/12/08/07/4/08 /0.00 0.00 PAID IN FULL

13 3/23/2009 City Used Car Center 1,688.89 0.00 1,688.89 0.00 0.00 0.00 1,688.89 0.00 Sent to MOJ

14 1/16/2009CHRISTIAN BAKER ,

JR.2,050.98 0.00 226 2723-2725 2,050.98 0.00 0.00 0.00 2,050.98 0.00 Sent to MOJ

15 4/28/2008 Fewett Sherman 7,936.43 0.00 011513700,1

3705,13

706,&13

7,936.43 0.00 0.00 0.00 7,936.43 0.00 Sent to MOJ

16 12/1/2008 Fatu Dorley 462.30 0.00 155 3601-3604 462.30 0.00 0.00 0.00 462.30 0.00 Sent to MOJ

Remarks

ANNEX 4

TRAVEL ADVANCES NOT RETIRED

Ministry of State for Presidential Affairs

Date Description Payee Voucher.# Check# USD AMT Findings

10/6/2009

Represents settlement for air tickets to facilitate the travel of Mr.

Abdoulaye Dukule from Washington

to Monrovia as Guest of the Government of Liberia and Mr.

Christopher Neyor to Bangkok, Thailand to attend the UNFCCC Ad

Hoc working Group Sessions on

"Long-term Cooperative Action on Climate Change " as per attached

documents.

Ophelia International

Travel Service,

Inc

MOS-09-10-206

CBL/ GA 50348

5,351.00 No evidence that trip was undertaken in the absence of board passes and other

related travel documents

10/6/2010

Amount represents payment of

settlement for air tickers provided Dr.

Adama Sirleaf and Mr. Richard Garvey by Ophelia International Travel

Services,Inc. which facilitate their travel from Monrovia to Accra,

Ghana-29 Sept. 2009.

Ophelia

International

Travel Service, Inc.

MOS-09-10-

205

CBL/GA

50349

2,198.00

No evidence that trip was undertaken in

the absence of board passes and other


9/21/2009

Settlement air ticket and perdiem to the USA -UN General Assembly.

Rufus Neufville

MOS-09-09-554

CBL/GA 2 CKS


related travel documents; No travel settlement report

1/6/2009

Payment for Perdiem and Air Ticket

for the travel of Presidential advance team to Abuja, Nigeria for the

ECOWAS Summit.

Emmentt

Kennedy et al

MOS-09-01-

062

CBL/ GA 5

CKS

14,339.00

No evidence that trip was undertaken in

the absence of board passes and other related travel documents

12/26/2008

Payment of refund of perdiem allowance & payment of UNMIL flight

for travel of the President & Delegation for the funeral of the late

President of Guinea H. E. Lassanah

Conteh

Minister of State for

Presidential Affairs,

Executive

Mansion.

MOS-08-12-927



1/5/2009 Payment of settlement for perdiem, Special MOS-09-01- CBL/ GA - 15,554.00 No evidence that trip was undertaken in

ANNEX 4

Date Description Payee Voucher.# Check# USD AMT Findings

air tickets & incidental allowance to facilitate the travel of the Vice

president & Delegation to Accra,

Ghana to attend the inauguration of the Ghanaian President elect.

Assistant to Vice President

of the

Republic of Liberia.

035

the absence of board passes and other related travel documents;

No travel settlement report

4/16/2009 Perdiem & air ticket to facilitate the travel of Natty B. Davis to

Washington DC

Natty B. Davis MOS-09-04-

459

CBL/GA 573723/573

722



4/9/2009

Payment for air tickets & perdime to facilitate the travel of Mrs. Zelyn

Johnson et’ al to USA.

Zelyn Johnson MOS-09-04-333

CBL/GA 3 CKS



TOTAL

90,880,00

ANNEX 4A

Annex 4 A. Travel Advances Unaccounted for-Ministry of Finance

Date Description Payee Voucher# Check# Amount-US$ Finding

5/27/2009

Air ticket for travel for Mr. Bernard Jappah to attend a meeting in Cote D’Ivoire from Jun 1-6 2009

S.N. Brussels Airline

MOF-09-06-128

709.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report

5/28/2009

payment for reimbursement to Mr. Jallah for one way air ticket expense for a trip in Atlanta Georgia may 11 2009

Will M. Jallah

MOF-09-06-389

899.00


8/30/2008

Perdiem and incidental allowance to travel to Washington D.C.

Andrew G. Paygar

MOF-08-09-060

541.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No receipts to support incidental allowance

5/27/2009

Perdiem to facilitate the travel of Angie Mahn & M. Cecelia Mcgill to attend a seminar in China June 7

Angie Mahn et al

MOF-09-06-138

500.00


4/2/2009

perdiem and incidental allowance in favor Mr. Myers & Andrew to Senegal

Anthony G. Myers et al

MOF-09-04-138

3,036.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No receipts to support incidental allowance

1/15/2009

Reimbursement of extra expenses incurred for trip to Lagos, Nigeria in favor of Min. Arthur Fumbah

Arthur W.B.Fumbah

MOF-09-01-473

157.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No receipts for reimbursement of extra expenses incurred.

5/25/20 Per-diem associated with the travel Augustine MOF-09-05- 579.33 Min. Ngafuan was overpaid for 2 days

ANNEX 4A


09

of Min Ngafuan to Washington D.C. from May 26-June 3,2009

Kpehe Ngafuan

836

(i.e US$579.33) and he did not refund the 2 days per-diem received, into GOL account.

8/30/2008

Reimbursement for participating in a money Laundering &Terrorist Financing in W/A workshop held in Accra

Betsy Kuoh Toe

MOF-08-09-061

250.00

No receipts to account for incidental allowance.

2/16/2009

Reimbursement of incidental allowance in favor of Mr. Kiadii participating in training held in Lagos, Nigeria

Boima C. Kiadii

MOF-09-02-811

250.00 No receipts to account for incidental allowance

1/7/2009

Payment of cost of Travel of Mohammed Sherif to take part in the IMF Training in Washington D.C.USA

Brussels Airlines

MOF-09-01-093

2,039.00


8/20/2008

Reimbursement in favor of Christiana Kpabar Paelay for cost incurred on air ticket while returning from USA

Christiana Kpabar Pealay

MOF-08-08-215

2,393.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts for reimbursement

6/29/2009

payment for the cost of allowance for Mr. Chieh & Mr. Tarlue to attend a meeting in Ghana from july-6-17 2009

D. Dueh Chieh Jr.et al

MOF-09-06-4485

500.00


12/23/2008

Cost represent Perdiem associated with the Travel of Mr. Varpilar to Washington D.C.

Dabah M.Varpilah

MOF-08-12-842

2,336.00


ANNEX 4A


11/21/2008

payment for reimbursement for daily subsistence allowance and air ticket for Mr. Honig to attend a meeting in Tunis Tunisia from oct.31.2008

Daniel Honig

MOF-08-12-105

3,193.00


4/6/2009

Incidental allowance for Mr. Seboe for participating in EPA Data modeling Workshop to be held in Senegal

Dixon Seboe

MOF-09-04-235

250.00

No receipts to account for incidental allowance spent.

9/12/2008

payment for reimbursement for additional five days meeting in Washington D.C. from June 30th to July 11,2008 Drayton K. Hinneh et al

Drayton K. Hinneh et al

MOF-08-09-426

1,788.00


8/5/2009

payment for the cost allow for air ticket for Minister Augustine K. Ngafuan & delegates to attend the meeting in sierra Leone

Elysian airlines et al

MOF-09-08-035

6,263.00


6/18/2009

Cost for the air ticket for allow for the travel of Mr. Dopoh for a study tour in Tema, Kumasi and Cape Coast Jun-22-29 2009

Global Link Travel Service et al

MOF-09-06-4160

1,949.00


4/15/2009

Reimbursement for Air ticket in favor of Miss Chang for trip made to USA as per attached

Jennifer Chang

MOF-09-04-513

1,683.92


ANNEX 4A


2/25/2009

Payment for the cost for allow in favor of Mr. Geegbae to attend a a seminar in Tunis from march 2-13 2009

Jonathan Geegbae

MOF-09-02-915

250.00

No receipts to support incidental allowance expended.

6/19/2009

cost for the payment incidental allowance of Geegbae to travel to Washington D.C. USA from July 3 to August 5 2009 July 12 2009

Jonathan Geegbae

MOF-09-06-4126

250.00


5/20/2009

cost of incidental allowance for Mr. Walker to attend a seminar offered by the Chinese Government held in Beijing

Larvela B. Walker

MOF-09-05-740

250.00


3/6/2009

Cost for payment of air ticket &reimbursement of incidental allowance for travel in Banjul, Gambia

Leno International travel Agency et al

MOF-09-03-296

2,026.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts for reimbursement No receipts to support incidental allowance expended

6/15/2009

Payment for cost associate with the travel of Mrs. Sackie to attend the 113th session in Belgium from June 25-30


MOF-09-06-2065

6,532.00


8/30/2008

Cost for air ticket to travel to the United States of America to earmarked on Tax awareness


MOF-08-09-062

7,804.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report.

6/24/2009

Payment for the cost associated with the travel of Minister Fumbah to attend the Harvard University from July 6-24 2009

Liberia travel services

MOF-09-06-4219

10,938.00


ANNEX 4A


5/28/2009

Cost associated with the travel of MOF staff to attend a waifem in Banjul. Gambia from June 1-12.2009

Liberia travel services

MOF-09-06-171

15,438.00


1/20/2009

Cost represent incidental allowance for trip made to Abuja, Nigeria

Macdonald Joss

MOF-09-01-607

250.00

No receipts to support incidental allowance expended

5/12/2010

Cost to facilitate the travel of Mr.Tamba to participate in a WAIFEM regional course held in Abuja, Nigeria

Merit Travel Services et al

MOF-010-05-326

1,584.00 No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report

9/3/2008

Payment represents cost Associated with the travel of Mohammed Sheriff held in Johannesburg, South Africa

Mohammed M. Sheriff

MOF-08-09-120

250.00 No receipts to support incidental allowance expended.

8/29/2008

Reimbursement for Incidental allowance for participating in a WAIFEM financial program in Abuja, Nigeria

Mohammed Sherif

MOF-08-08-065

250.00

No receipts to support incidental allowance expended

5/25/2009

Cost associated with the travel of Minister Andrew Paygar to Washington D.C.USA from May 25 to June 3 2009

Ophelia international travel agency et al

MOF-09-05-835

4,493.00


5/5/2009

Cost associated with travel of Minister Ngafuan and delegates to participates in a meeting to be held in Dakar

Prestige International Travel Agency

MOF-09-05-250

11,889.00


3/25/2010

Cost of air ticket & perdiem to facilitate the travel of Min. Flomo & other to attend Public Financial training in Gambia

Prestige International Travel Agency

MOF-010-03-756

10,126.00


ANNEX 4A


4/6/2009

Cost associated with the Travel of Mr. .Watson to Lome, Togo for Training

Providence International Travel Agency

MOF-09-04-184

3,690.00


4/13/2009

Cost associated with the travel of Mr. Habib Sheriff to participate in a regional training held in Lagos, Nigeria

Richmas INT'L Travel Agency

MOF-09-04-415

2,176.00


8/20/2008

Cost associated with travel of Mr. Gbokolo to represent MOF to be held in Accra Ghana


MOF-08-08-241

1,690.06


8/20/2008

Payment represents reimbursement for participating in a WALFEM regional course held in Lagos, Nigeria


MOF-08-08-221

1,742.00


8/29/2008

Payment represents Air ticket and per-diem to pursue graduate study at Duke University in North Carolina- USA


MOF-08-09-075

4,048.00


3/27/2009

Payment for air ticket &perdiem to facilitate the travel of Ernest Varfee to Lagos, Nigeria


MOF-09-03-670

2,236.00


11/25/2008

Cost associated with the travel of Mr. Kiazolu to participate in IMF Learning in Washington D.C.USA


MOF-08-12-072

1,384.00


2/25/2009

Payment for the travel of Mr. Matthew T. K. Flomo AME to attend WAIFEM Regional course in Ghana from Mar 1-14-2009.

Richmars INT'L Travel Agency

MOF-09-02-906

1,455.00


ANNEX 4A


2/25/2009

Cost associated with the travel of Mrs. Pitchard to attend a waifem seminar in Banjul. Gambia from March 9-13,2009

Richmars INT'L Travel Agency

MOF-09-02-907

2,099.00


4/9/2009

Payment represents cost associated with the travel of FM and Delegation to Washington DC from April 25-26-2009

S.N. Brussels et al

MOF-09-04-332

19,102.00


REMAIN THE SAME9/29/2008

Cost for the travel expense to attend the World Bank/IMF Annual meeting held in Washington D.C

S.N. Brussels et al

MOF-08-09-874

20,602.70


3/25/2009

Cost associated with the travel of Min. Ngafuan &Landers to Tunisia-Tunis

S.N. Brussels et al

MOF-010-03-781

7,674.00


4/3/2009

Perdiem &Air Ticket to facilitate the travel of Minister Mawolo to Libya

United World travel service et al

MOF-09-04-150

3,736.00


4/23/2009

Payment to facilitate the travel of Mr. Dagoseh to tour Sierra Leone, Ghana, Uganda & Rwanda

Weasua/KLM et al

MOF-09-05-071

6,644.48.


12/24/2008

Payment represent cost of per-diem, incidental allowance and air ticket to travel to Ghana and Sierra Leone

Weasua/KLM et al

MOF-08-12-883

12,305.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts to show how incidental allowance was expended

ANNEX 4A


3/2/2009

Reimbursement of incidental allowance in favor of Mr. Gegeh for participating in regional workshop in Accra, Ghana

William Gegeh

MOF-09-03-166

250.00

No supporting receipts to show how incidental allowance was expended

2/25/2009

Payment of reimbursement in favor of Minister Fumbah and Mr. Russ for participating in the joint Waifem-World Bank regional

Arthur W.B. Fumbah

MOF-09-02-927

500.00

No supporting receipts for reimbursement.

11/10/2008

Payment for reimbursement of air ticket and pe-rdiem to attend technical committee meeting held in Gambia from Nov.2-4 2008

Augustus M.Kamara

MOF-08-12-208

1,504.00

No supporting receipts for reimbursement.

5/13/2010

Payment for perdiem to facilitate the travel of Mr. Myers & Mr. Jappah to Mauritius to attend the 6th annual cabri seminar

Anthony G. Myers et al

MOF-010-05-371

1,906.00


4/6/2009

Payment for cost of incidental allowance in favor of Mr. Gegeh & Mr. Mitchell for the trip made to Burkina Faso.

William Gegeh et al

MOF-09-04-313

500.00

No supporting receipts to show how incidental allowance was expended.

4/10/2010

Payment represents cost associated with the travel of Mr. Jorgbor to Lagos, Nigeria to participate in waifem

Kalivah Jorgbor et al

MOF-010-05-812

2,062.00


5/11/2010

Payment for cost to travel to Ghana to obtain British Visa for a workshop on co-Financing & Immunization

Merit Travel Services et al

MOF-010-05-292

2,059.00


5/13/2010

Payment for the cost for travel of FM & delegates to the annual meetings of the Board of Governors of Africa Development

Augustine Kpehe Ngafuan

MOF-010-05-351

8,952.40


ANNEX 4A


5/19/2010

Payment for the cost for travel of Minister Ngafuan to Accra, Ghana to attend the strategy session on the Development of Liberia

Augustine Kpehe Ngafuan

MOF-010-05-478

1,254.70


5/19/2010

Amount as incidental allowance in favor of Mr. Doe to attend a WCO revenue management Workshop in Lome, Togo

Wounpay P. Doe

MOF-010-05-732

250.00

No supporting receipts to show how incidental allowance was expended.

5/19/2010

Payment for perdiem and Air ticket to facilitate the travel of Minister Ngafuan to the Africa Development Bank meeting, Abidjan-Ivory Coast

S.N. Brussels et al

MOF-010-05-479

2,292


5/19/2010

Payment for additional cost of Airfare incurred by Mr. Dagoseh through Abidjan to Accra to obtain visa


MOF-010-05-831

1,555.00

No receipts to support reimbursement.

TOTAL 208,671.11

ANNEX 4B

Annex 4 B. Unsupported Travel Expenditures- Ministry of Foreign Affairs

Date Description Payee Voucher # Check# Amount-US$ Finding

9/5/2008 Incidental

allowance, air ticket

& foreign Daily

subsistence travel

to Gambia

Olubanke King

Akerele/ United

World Travel

Service

MOFA- o8-09-

279

CBL/GA 447986 11,931.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts to show how

incidental allowance was expended

9/11/2008 Cost representing

perdiem, air tickets

and incidental

allowance in favor

of Min. Olubanke

King Akerele et’al as

head of delegation

who travelled to

Ghana for an

assement trip.

Olubanke King

Akerele/ Richarmars

International Travel

Agency.

MOFA- 08-09-

561

CBL/ GA 455712 4766.00 No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts to show how


9/11/2008

Incidental

Allowance in favor

of Olubanke Akerele

as head of

Delegation Et-Al to

the 63rd Session of

the United Nation

General Assembly

to be held in New

York

Olubanke King

Akerele

MOFA-08-09-318

CBL/GA 7 CHKS

25,731.00

No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report; No supporting receipts to show how


9/16/2008

Reimbursement of

per-diem Reinnal

UN Meeting July

14-18 2008, USA

A. Jlay Nahlor

MOFA-08-09-703

CBL/ GA460946

2,200.00

No evidence that trip was undertaken in the absence of board passes and other related travel document.

9/20/2008

Per-diem in favor of

Ambassador Marcus

Amb. Marcus Kofa MOFA-08-09-637 - No travel documents to retire travel advances received

ANNEX 4B


Kofa, 63rd session

UN General

Assembly in New

York

4,125.00

11/26/2008

Post adjustment allowance and personal effect in favor of Mr. Tom Kiotee/Attaché at the Liberian Embassy in Abidjan Ivory Coast.

Tom Kiotee

MOFA-09-01-110

CBL/GA 520416

5,500.00 No documents to support expenditure

incurred

1/7/2009

Reimbursement of

Incidental

Allowance in favor

of Josephu Gray,

Assistant Minister of

MOFA ET AL who

travelled to South

Africa and Beijing,

China, for seminar

Josephus Gray et al

MOFA-09-01-218

CBL/GA 4 CHKS

1,000.00 No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts to show how


2/2/2009

Per-diem and reimbursement of Air Ticket for Robert Y. Lormia, Assistant Minister of Foreign Affairs who travelled Burkina Faso and Abuja, Nigeria on an extraordinary meeting of ECOWAS

Robert Y. Lormia

M0FA -09-02-630

CBL/GA 537465



ANNEX 4B


4/2/2009

Per-diem for

Minister Olubanke

King Akerele &

George Wisner who

travelled to CKY,

Guinea-Feb, 14-

20,2009

Olubanke King

Akerele

MOFA-09-04-321

1,449.00



4/15/2009

Reimbursement of

Air ticket and per

diem for ten days in

favour of D.

Mckinley Thomas

Liberian

Ambassador in

Paris, France

D. Mckinley Thomas

MOFA-09-06-

3081

CBL/GA 556623

4,422.00



8/21/2009

Incidental

allowance , perdiem

& Air tickets in

favor of Hon.

Olubanke Akerele &

head of Delegation

Et-al who travelling

to Abja, to attend a

meeting

Olubanke King

Akerele

MOFA-09-08-264

8,109.50



9/9/2009

Incidental

allowance &

perdiem in favor of

Hon. Olubanke king

Akerele Min. MOFA

& Elias Shoniyin

Asst. Min. of MOFA

Who travel to

Olubanke King

Akerele

MOFA-09-09-165

CBL/ GA 2 CHKS

1,336.00



ANNEX 4B


Guinea

9/10/2009

Round trip air ticket

& per-diem in Favor

of AMB. Marcus

Kofa

Ambassador Marcus Kofa Kofa

MOFA-09-09-434

CBL/ GA 37877

6,684.00 No travel documents to account for trip

9/17/2009

Round trip ticket &

perdiem in favor of

Angela Cassell

Bush, to conduct

Diplomatic Mission

in Berlin & Brussel

Angela Cassell Bush

MOFA-09-09-479

CBL/GA 38867



9/17/2009

Round trip ticket &

perdiem in favor of

Amb. Commany B.

Wesseh for two wks

Liasion visit to

Pretoria in order to

undertake a brush

up with Liberian

Ambassador.

Commany B.

Wesseh

MOFA-09-09-559

CBL/GA 40513

6,328.00



9/18/2009

cost for round trip

air ticket, per-diem

and incidental

allowance in favor

of minister

Olubanke King

Akerele travel to

the USA

Olubanke King

Akerele

MOFA-09-09-478

CBL/ GA 40515

23,475.00



ANNEX 4B


9/18/2009 Reimbursement of

round trip air ticket

in favor of

Olubanke King

Akerele & Elias

Shonniyie Assit.

Minister for

International

Cooperation.

Travelled to the 6th

session of the

International

Contact Group on

Guinea

Olubanke King

Akerele/ Divine

Travel & Tours

MOFA-09-09-633 CBL/GA 47343 820.00 No evidence that trip was undertaken in the absence of board passes and other related travel documents; No travel settlement report No supporting receipts to show how


Total 153,664.50

Date Voucher # Description Amount (US$) Payee

29-Sep-08 MPW-09-26V-08 Payment for rehabilitation of roads in the greater Monrovia area 1,998,680.80 CHICO

15-Oct-08 MPW-10-16V-08 Payment for construction materials (crushed Rocks) 10,260.00 Construction Materials Center

19-Nov-08 MPW-11-17V-08 Payment of contract to repair 13,000 sq yards pothhole on Monrovia Streets 191,750.00 Liberia Reconstruction & Development Company

7-Jan-09 MPW-01-01V-09 Payment for work done on the UN drive and Center street Road 46,500.00 CHICO

9-Jan-09 MPW-01-14V-09 Funding for the implementationof the Bopolu-Bellayealla road of MPW dry Season 7,000,000.00 Ministry Of Public works

14-Jan-09 MPW-01-17V-09 quotation for the rehablilitation of the Access road to the president's resident 73,714.82 CHICO

16-Jan-09 MPW-01-19V-09 Payment for the delivery of goods to MPW for patching and paving from Redlight - Caresburg 23,800.00 CHICO

20-Jan-09 MPW-01-19V-08 Payment represent cost for the construction of the Asphalt Plant site 49,206.25 Ministry Of Public works

27-Jan-09 MPW-01-29V-09 Payment of cost for the construction of concrete railing on bridges located on Buchananand front street 4,683.00 Ministry Of Public works

29-Jan-09 MPW-01-33V-09 Payment for the application of Asphalt concrete overlay on the Jallah Town road 719,144.10 CHICO

2-Feb-09 MPW-409-000001 Payment for administrative and service expenses of spare parts 20,392.21 CHICO

3-Feb-09 MPW-409-000003 Payment for construction material for use by MPW 5,275.00 Atlas Business Ceter

4-Feb-09 MPW-409-000008 Supply of Asphalt concrete and tack coat for patching at redlight to careysburg 238,000.00 CHICO

19-Feb-09 MPW-409-000022 Rehabilitation of the Airstrip pavement of the Springs Field 45,722.61 CHICO

23-Feb-09 MPW-409-000023 Payment for Asphalt patching from Redlight to Kakata Town Margibi County 489,910.49 Ministry Of Public works

24-Feb-09 MPW-409-000029 Payment of 35% of contract value of start-up and mobilization fo the rehabilitation of Little Liberia to Timbo BeachFeeder road in Rivercess 72,450.00 Crossroad Enterprises Inc.

24-Feb-09 MPW-409-000030

Payment representing opening of an irrevocable Letter of Credit with Liberia Bank for Development and Investment (LBDI) in fovor of KOMAN

INTERPRISE 800,000.00 Koman Enterprises (SEK) Liberia Inc.

26-Feb-09 MPW-409-000035 Payment for the construction and rehabilitation of water and sanitaion facilities 80,000.00 Ministry Of Public works

26-Feb-09 MPW-409-000034 Payment for the installation of 4 lines of Concrete pipe on the Palala-Duta road in Bon County 23,358.30 Ministry Of Public works

26-Feb-09 MPW-409-000033 Payment for the rehabilitation of 4 feeder roads in the south east County 124,996.50 Ministry Of Public works

4-Mar-09 MPW-409-000038 Payment for additional funding for maintenance Brewerville to Bopolu road 100,000.00 Ministry Of Public works

9-Mar-09 MPW-409-000041 Payment for the assessment for of 7 caterpillar own by MPW 77,074.30 Contiental Machinery & Support Services Liberia Inc.

9-Mar-09 MPW-409-000042 Payment for repairs of MPW 7 caterpillar heavy equipment 56,860.00 Contiental Machinery & Support Services Liberia Inc.

9-Mar-09 MPW-409-000040

Payment of 35% of contract value of start-up and mobilization fo the rehabilitation of 15mile road of the sawmill to Lofa Bridge in Gbapolu

County 141,750.00 Morweh Liberia Limited

10-Mar-09 MPW-409-000046

Payment represent 35% of contract for the reconstruction and rehabilitation of 8.8 mile road of the Gbern Goi to little Kola in Grand Bassa

County 88,550.00 General Engeering and Technical Services

9-Apr-09 MPW-409-000074 Funding for the installation of 3 lines concrete culverts at the redemption road 50,043.25 Ministry Of Public works

23-Apr-09 MPW-409-000090 Payment for additional 30days of consultancy services on the 7 roads contract for CHICO 9,000.00 Engeering & Construction Company INC.

23-Apr-09 MPW-409-000089 Payment for consultancy service for 7 road conract for extra work done on the SKD bolevard 11,197.59 Engeering & Construction Company INC.

23-Apr-09 MPW-409-000087 Payment for additional cost for continuation of the Hotel Africa culvert Installation 36,279.25 Ministry Of Public works

8-May-09 MPW-409-000107 Paymenfor the rehabilitation of Breweryvill to Bopolu road in Gbarpolu County 1,000,000.00 Ministry Of Public works

Total 13,588,598.47

CONTRACTS AWARDED IN 2008/9 WITHOUT BIDDING DOCUMENTATION

ANNEX 5A

ANNEX 5A

Date Voucher # Description Amount USD Payee

14-Dec-09 MPW-409-000066 30% payment of the agreed indicated contract price of US$400,000.00 representing 65% of the work completed 120,000.00 ATLANTIC ENGINEERING & CONSTRUCTION COMPANY INC

14-Dec-09 MPW-409-000057 30% payment of the contract value of US$253,000.00 for the Gbern Gio little Kola Road Rehabilitation project 75,900.00 GENERAL ENGINEERING & TECHINICAL SERVICES

6-Jan-10 MPW-409-000089 Payment for Bills of quantities and purchase requisition for 12 neighborhood roads in monsterrado county 147,387.00 Ministry Of Public works

7-Jan-10 MPW-409-000095 Payment represents 65% payment for rehabilition of the Zebra to Janson to Bawaydee Feeder Road. 49,500.00 ZEBRA CONSTRUCTION COMPANY

7-Jan-10 MPW-409-000093 Payment for amount needed for patching Barnesville Estate Road,Sinkor streets, and Red light Intersection 267,447.50 Ministry Of Public works

19-Jan-10 MPW-409-000106 Payment for amount needed for patching of critical sections along the redlight Ganta Highway during the dry seasons 1,750,164.33 Ministry Of Public works

22-Jan-10 MPW-409-000107 Payment for amount needed to install 16 Bailey Bridges durning the Dry Season 1,566,781.44 Ministry Of Public works

23-Feb-10 MPW-409-000028 Payment for procurement of works for (CHICO) for the addendum to the seven roads contract on the old road 591,532.39 CHICO

12-Mar-10 MPW-409-000168 Payment represent the MPW contribution towards the rehabilitation of the Kanweaken-Barclayville Highway 137,800.00 Ministry Of Public works

23-Mar-10 MPW-409-000179 Payment for amount needed for rehabilitation of 14 mile of the Brewerville-Bopolu road and peace Community projects 366,695.33 Ministry Of Public works

7-Apr-10 MPW-409-000201 Payment represents 30% of contract value (section 2-c) additional works for the ministry 1,894,526.10 Pealat construction company

7-Apr-10 MPW-409-000200 Payment for amount needed to install 3 reinforced concrete pipes and 1 line 24 with reinforced concret beddings and Head wing walls on

Caldwell Main Road 51,009.00 Ministry Of Public works

12-Apr-10 MPW-409-000205 Payment repersents 30% payment for mobilization of the rehabilitation of four Neighborgood in Montserrado Co. 42,489.29 Swags Engineering and Construction Inc.

12-Apr-10 MPW-409-000206 Payment repersents 30% payment for mobilization of the rehabilitation of seven Neighborgood in Montserrado Co. 85,623.42 Genesis Liberia Inc.

12-Apr-10 MPW-409-000203 Payment repersents 30% payment for mobilization of DC Clark to Zordee to Klay Road in Co. 104,686.90 Morweh Liberia Limited

12-Apr-10 MPW-409-000202 Payment represents 30% initial payment for rehabilition of the Barnesville to Dixville to Caldwell Road. 44,243.69 21st CENTURY ENGINEERING AND CONSTRUCTION COMPANY

12-Apr-10 MPW-409-000204 Payment represents 30% initial payment for rehabilition of the Kakata to Borlola River to Worhn Road in Margibi co. 284,696.35 Swags Engineering and Construction Inc.

16-Apr-10 MPW-409-000217 Payment represents 30% initial payment for rehabilition of Amadu Town to Royceville Road to Monrovia 86,882.99 General Fabrication Business Coperation

16-Apr-10 MPW-409-000216 Payment repersents 30% initial payment for mobilization of Bomi Highway. 95,698.80 Koman Enterprises (SEK) Liberia Inc.

20-Apr-10 MPW-409-000221 Payment for amount needed for rehabilitation of the Brewerville Iron gate-clay Ashland-Millsburg-Arthington feeder road 609,940.68 Ministry Of Public works

22-Apr-10 MPW-409-000224 Payment represents 30% payment for renovation of the Executive Pavilion. 243,780.12 AFRIQUE CONSTRUCTION AND MAINTENANCE COMPANY

26-Apr-10 MPW-409-000226 Payment repersents 30% payment for mobilization of Lekpeh Town to Beh Town to Vortor Town in Bomi Co. 112,500.00 Nimley Equipment Inc.

4-May-10 MPW-409-000240 Payment represents 30% initial payment for rehabilition of the Belefani to Jorwah town road in Bong co. 187,737.82 Morweh Liberia Limited

4-May-10 MPW-409-000238 Payment represents 30% initial payment for rehabilition of the (38.8) miles of the Bahn to Loguatuo road in Nimba co. 317,187.96 B & SONS TRASPORTION/CONSTRUCTION SERVICE

4-May-10 MPW-409-000241 Payment represents 30% initial payment for rehabilition of (18) miles in the Gbatala to Fonutoli to Gbannata in Bong co. 216,147.67 WESTWOOD CORPORATION

4-May-10 MPW-409-000241 amount needed for the cleaning of the soniwein Channel to facilitate the paving of the Monrovia City Street 101,006.00 Ministry Of Public works

10-May-10 MPW-409-000248 Payment represents 30% initial payment for rehabilition of the Wiah Town to Planiabo Road in Sinoe co. 102,140.27 WESTWOOD CORPORATION

20-May-10 MPW-409-000261 Payment for work done on the Fish Town Harper Road 125,019.50 Ministry Of Public works

31-May-10 MPW-409-000279 Payment represent 30% after completion of 65% of the rehabilitation of Sanniquellie to Tiayee feeder road in Nimba co. 108,780.00

TUEX WOOD MANAGEMENT CORP. D/B/A TUTEX

CONSTRUCTION SERVICES

31-May-10 MPW-409-000282 Amount needed for the opening of alleys and Streets in Monrovia and its environs 136,659.00 Ministry Of Public works

1-Jun-10 MPW-409-000283 Payment represents 30% initial payment for rehabilition of the Zwedru to Greenville in Sinoe co. 600,000.00 Koman Enterprises (SEK) Liberia Inc.

2-Jun-10 MPW-409-000289 Payment represents 5% payment for rehabilition of the Daniel Town to Talla Feeder Road. 15,000.00 WESTWOOD CORPORATION

9-Jun-10 MPW-409-000300 Amount needed to construct 147 hand dug wells and 30 institutional latrines 595,556.65 Ministry Of Public works

17-Jun-10 MPW-409-000317 Payment for Bill of quantity and cost estimate for the emergency road rehabilitation work on the fish Town Harper Road for the period of 4

months beteen June 15-October 30 2010 411,747.20 Ministry Of Public works

23-Jun-10 MPW-409-000330 Payment for office related equipment 53,383.00 Sachu Traders

28-Jun-10 MPW-409-000341 Payment for rehabilitation of UN Drive from Gurley to Randell Streets 207,810.00 China Henan International Cooperation Group Co. Inc.

Total 11,907,460.40

CONTRACTS AWARDED IN 2009/10 WITHOUT BIDDING DOCUMENTATION

ANNEX (5B)

UN-SUPPORTED EXPENDITURES

Ministry /Agency

Expenditure Reported in Fiscal

Outtrun 08/09 USD

Expenditure Verified by GAC 08/09

USD Variance USD


Outtrun 09/10 USD


USD Variance

MOD 5,911,643.00 4,913,288.89 998,354.11 7,372,944.00 17,868,131.55 (10,495,187.55)

SSS 2,680,369.00 1,374,467.02 1,305,901.98 4,008,872.00 3,103,149.78 905,722.22

MOJ 15,470,127.08 10,161,223.07 5,308,904.01 18,450,867.00 3,754,102.63 14,696,764.37

MNS 755,825.00 907,535.77 (151,710.77) 886,958.00 150,161.86 736,796.14

MOL 2,035,948.00 709,977.67 1,325,970.33 1,557,832.00 1,260,818.92 297,013.08

NSA 1,288,199.00 1,309,954.25 (21,755.25) 1,506,670.00 1,480,159.00 26,511.00

BIN 987,945.23 (987,945.23) 854,898.41 (854,898.41)

NBI 380,099.71 (380,099.71) 437,781.00 371,479.42 66,301.58

LNFS 198,929.00 (198,929.00) 511,277.00 (511,277.00)

TJ 6,533,930.00 (6,533,930.00) 8,771,958.00 (8,771,958.00)

GRC 367,629.00 (367,629.00) - -

NPTA - - 1,035,480.84 (1,035,480.84)

DEA - - 8,771,958.00 (8,771,958.00)

- -

MOE 22,649,763.00 8,716,072.54 13,933,690.46 23,955,989.00 6,903,582.34 17,052,406.66

MPW 17,040,004.00 14,244,793.40 2,795,210.60 20,851,822.00 18,084,677.83 2,767,144.17

NBVA 272,366.00 269,740.74 2,625.26 309,390.00 309,999.33 (609.33)

MCC 980,962.00 932,294.66 48,667.34 919,655.00 879,964.09 39,690.91

UL 4,569,601.00 3,706,422.98 863,178.02 6,893,441.00 6,504,183.72 389,257.28

LRRRC 613,275.00 594,318.36 18,956.64 582,198.00 552,988.24 29,209.76

NCD 247,718.00 440,125.79 (192,407.79) 251,057.00 245,256.75 5,800.25

NHA 487,522.00 496,911.26 (9,389.26) 449,198.00 429,900.01 19,297.99

NHRC 243,009.00 207,052.84 35,956.16 429,411.00 314,420.69 114,990.31

CNDRA 350,686.00 141,243.76 209,442.24 419,243.00 296,415.90 122,827.10

EPA 563,411.00 360,979.62 202,431.38 562,054.00 529,458.00 32,596.00

MCSS 2,044,689.00 1,144,554.64 900,134.36 2,195,838.00 914,267.12 1,281,570.88

AITB 251,329.00 205,509.00 45,820.00 184,761.00 135,723.00 49,038.00

MGD 1,049,234.00 868,932.22 180,301.78 753,159.00 413,489.23 339,669.77

TRC 1,150,000.00 1,101,500.00 48,500.00 850,000.00 - 850,000.00

PPCC 755,627.00 741,973.78 13,653.22 780,656.00 - 780,656.00

LACC 800,000.00 350,000.00 450,000.00 1,363,673.00 1,646,475.43 (282,802.43)

LBS 694,029.00 3,079,244.89 (2,385,215.89) 558,290.00 409,491.00 148,799.00

MRU 225,000.00 - 225,000.00 225,000.00 (225,000.00)

MYS 3,855,344.00 1,780,395.72 2,074,948.28 3,077,264.00 1,374,255.75 1,703,008.25

TH 1,545,850.00 (1,545,850.00) 6,743,854.35 (6,743,854.35)

LCO 66,517.00 62,955.42 3,561.58 83,269.00 200,111.73 (116,842.73)

- -

MOA 4,988,008.47 62,819.00 4,925,189.47 4,233,472.00 2,754,970.00 1,478,502.00

MOF 9,111,881.00 5,156,387.00 3,955,494.00 13,869,051.00 8,293,360.32 5,575,690.68

MOS 8,294,754.00 6,819,405.41 1,475,348.59 8,782,556.00 6,117,573.94 2,664,982.06

MLM 3,144,828.00 2,510,687.24 634,140.76 3,493,996.00 2,220,861.12 1,273,134.88

VPO 1,301,764.00 1,756,488.62 (454,724.62) 1,065,127.00 907,558.81 157,568.19

BOB 1,336,371.29 1,116,415.77 219,955.52 - -

LACC 800,000.00 565,647.44 234,352.56 1,363,673.00 333,158.57 1,030,514.43

MPT 1,648,872.00 1,160,084.21 488,787.79 1,288,329.00 1,000,869.86 287,459.14

- -

MOF(Debt Manag-Domestic Debt) - - 6,306,833.34 (6,306,833.34)

MOF(Debt Manag-External Debt) - - 6,855,622.22 (6,855,622.22)

- -

BWI 1,323,879.00 710,594.12 613,284.88 1,527,106.00 405,448.04 1,121,657.96

Page 1 of 2

ANNEX (5B)

UN-SUPPORTED EXPENDITURES

Ministry /Agency


Outtrun 08/09 USD


USD Variance USD


Outtrun 09/10 USD


USD Variance

CUC 357,260.00 - 357,260.00 487,183.00 442,976.00 44,207.00

FTI 61,357.00 61,357.00 - - -

LEC 3,103,413.00 - 3,103,413.00 1,544,523.00 200,929.60 1,343,593.40

LLHC 97,909.00 97,909.00 - 738,750.00 - 738,750.00

LTC 1,400,000.00 - 1,400,000.00 1,505,746.00 550,212.00 955,534.00

LWSC 785,000.00 - 785,000.00 452,233.00 452,233.00 -

MTA 1,480,070.00 66,666.33 1,413,403.67 2,178,777.00 2,748,294.39 (569,517.39)

NICOL 114,371.00 - 114,371.00 133,192.00 535,519.38 (402,327.38)

NHSB 50,000.00 - 50,000.00 45,153.00 38,410.00 6,743.00

WAEC 498,162.00 477,450.14 20,711.86 690,113.00 - 690,113.00

NCHE 243,009.00 380,769.61 (137,760.61) 548,835.00 546,021.03 2,813.97

LPMC 246,807.00 - 246,807.00 379,803.00 2,170,466.67 (1,790,663.67)

- -

MOH 13,092,040 10,958,518.07 2,133,521.93 14,049,926.00 1,073,783.47 12,976,142.53

LIGIS 2,844,733.00 1,885,600.00 959,133.00 3,660,892.00 1,650,513.15 2,010,378.85

BSE 72,913.00 40,918.15 31,994.85 102,159.00 68,480.00 33,679.00

GC 770,675.00 403,046.00 367,629.00 889,182.00 - 889,182.00

MOFA 7,362,195.00 1,855,953.00 5,506,242.00 8,252,704.00 14,446,291.00 (6,193,587.00)

LIBR 347,472.00 248,187.50 99,284.50 365,200.00 266,463.00 98,737.00

NIC 939,369.00 281,747.98 657,621.02 819,947.00 557,900.00 262,047.00

LIPA 599,278.00 148,730.28 450,547.72 640,211.00 101,491.04 538,719.96

JFK 5,161,591.00 16,292,110.99 (11,130,519.99) 4,394,911.00 16,333,392.33 (11,938,481.33)

NEC 3,347,601.00 1,625,369.00 1,722,232.00 5,796,650.00 2,753,775.00 3,042,875.00

PAHC 20,000.00 (20,000.00) - -

WVSTU 1,043,920.00 2,281,046.31 (1,237,126.31) 2,294,330.00 - 2,294,330.00

163,021,699.84 125,819,759.40 37,201,940.44 185,286,022.00 175,180,497.20 10,105,524.80

Page 2 of 2

Period: 2008/09 1 2 3 4 5 6 7 8

Name of Min/Agency Expenditure Type Per Fiscal Outturns Per Confirmation by M&A

Grant as Per M&A

Submission

Aid as Per M&A

Submission

Others as Per M&A

Submission Total =(2+3+4+5)

Unexplained Variance=(1-6) (Aid &

Grant)

Unexplained Variance between

MOF and M&A(1-2)

Ministry of State of Presidental Affairs Pesonnel Emoluments - 1,687,690.00 1,687,690.00 (1,687,690.00) (1,687,690.00)

Goods and Services 3,754,715.00 899,334.00 4,654,049.00 (4,654,049.00) (3,754,715.00)

Domestice and Foreign Travels 1,443,033.00 103,060.00 1,546,093.00 (1,546,093.00) (1,443,033.00)

Transfers and Subsidies 8,294,754.00 171,585.00 171,585.00 8,123,169.00 8,123,169.00

Capaital Acquisition - - - -

Vehicles, Equipments and other assets 1,024,317.00 124,400.00 1,148,717.00 (1,148,717.00) (1,024,317.00)

Construction, renovations & improvement - 344,005.00 16,022.00 360,027.00 (360,027.00) (344,005.00)

Total 8,294,754.00 8,425,345.00 - - 1,142,816.00 9,568,161.00 (1,273,407.00) (130,591.00)

Ministry of Transport Pesonnel Emoluments - 498,966.00 498,966.00 (498,966.00) (498,966.00)

Goods and Services - 376,638.00 376,638.00 (376,638.00) (376,638.00)

Domestice and Foreign Travels 31,931.00 31,931.00 (31,931.00) (31,931.00)

Transfers and Subsidies 1,427,095.00 - 1,427,095.00 1,427,095.00

Capaital Acquisition: - - -

Vehicles, Equipments and Tangible assets 360,493.00 360,493.00 (360,493.00) (360,493.00)

Construction, renovations & improvement 16,596.00 16,596.00 (16,596.00) (16,596.00)

Total 1,427,095.00 1,284,624.00 - - - 1,284,624.00 142,471.00 142,471.00

Ministry of Posts & Telecommunications Pesonnel Emoluments 652,862.00 652,862.00 (652,862.00) (652,862.00)

Goods and Services - - -


Transfers and Subsidies 1648872.00 - 1,648,872.00 1,648,872.00


Vehicles, Equipments and other assets 210,900.00 210,900.00 (210,900.00) (210,900.00)


Total 1,648,872.00 1,007,918.00 - - - 1,007,918.00 640,954.00 640,954.00

Liberia Broadcasting System Pesonnel Emoluments 265,300.00 265,300.00 (265,300.00) (265,300.00)

Goods and Services 284,110.00 193,000.00 477,110.00 (477,110.00) (284,110.00)


Transfers and Subsidies 694,029.00 - 694,029.00 694,029.00

Capaital Acquisition - - -


Construction, renovations & improvement - - -

Total 694,029.00 700,000.00 - - 193,000.00 893,000.00 (198,971.00) (5,971.00)

CNDRA Pesonnel Emoluments 222,799.00 222,799.00 (222,799.00) (222,799.00)






Construction, renovations & improvement 5,000.00 21,000.00 26,000.00 (26,000.00) (5,000.00)

Total 350,686.00 283,359.00 21,000.00 - - 304,359.00 46,327.00 67,327.00

Ministry of Gender and Development Pesonnel Emoluments 299,725.00 299,725.00 (299,725.00) (299,725.00)

Goods and Services 329,681.05 329,681.05 (329,681.05) (329,681.05)


Transfers and Subsidies 1049234.00 157,397.00 157,397.00 891,837.00 891,837.00


Vehicles, Equipments and Tangible assets 80,000.00 80,000.00 (80,000.00) (80,000.00)


Total 1,049,234.00 997,976.50 - - - 997,976.50 51,257.50 51,257.50

Ministry of Public works Pesonnel Emoluments 1,564,910.00 1,564,910.00 (1,564,910.00) (1,564,910.00)

Goods and Services 2,526,811.00 2,526,811.00 (2,526,811.00) (2,526,811.00)




Vehicles, Equipments and other assets 10,946,911.00 10,946,911.00 (10,946,911.00) (10,946,911.00)

Construction, renovations & improvement 2,406,579.00 2,406,579.00 (2,406,579.00) (2,406,579.00)

Total 17,040,004.00 17,999,346.00 - - - 17,999,346.00 (959,342.00) (959,342.00)

CSA Pesonnel Emoluments - 445,457.00 445,457.00 (445,457.00) (445,457.00)







Annex 6A Comparison of Expenditue Reported in Fiscal Outtuns Report against Expenditue Confirmed by Ministries and Agencies

Page 1 of 3

Period: 2008/09 1 2 3 4 5 6 7 8


Total 1,822,341.00 1,822,520.00 - - - 1,822,520.00 (179.00) (179.00)

Ministry of Information Pesonnel Emoluments - 832,754.00 832,754.00 (832,754.00) (832,754.00)


Domestice and Foreign Travels - - -





Total 1,461,934.00 1,745,902.00 - - - 1,745,902.00 (283,968.00) (283,968.00)

Ministy of Health Pesonnel Emoluments 4,239,420.00 3,576,766.00 7,816,186.00 (7,816,186.00) (4,239,420.00)

Goods and Services 3,889,230.00 3,317,029.00 7,206,259.00 (7,206,259.00) (3,889,230.00)


Transfers and Subsidies 13,092,040.00 4,947,928.00 4,900,009.00 9,847,937.00 3,244,103.00 8,144,112.00


Vehicles, Equipments and other assets 2,274,385.00 614,831.00 2,889,216.00 (2,889,216.00) (2,274,385.00)


Total 13,092,040.00 15,350,963.00 12,408,635.00 - - 27,759,598.00 (14,667,558.00) (2,258,923.00)

CDA Pesonnel Emoluments - - - - -

Goods and Services - - - - -

Domestice and Foreign Travels - - - - -

Transfers and Subsidies 167,715.00 - - - 167,715.00 167,715.00

Capaital Acquisition - - - - -

Vehicles, Equipments and other assets - - - - -

Construction, renovations & improvement - - - - -

Total 167,715.00 - - - - - 167,715.00 167,715.00

Ministry of Justice Pesonnel Emoluments 6,497,583.00 - 60,000.00 250,000.00 6,807,583.00 (6,807,583.00) (6,497,583.00)

Goods and Services 3,938,869.00 - 350,000.00 4,288,869.00 (4,288,869.00) (3,938,869.00)

Domestice and Foreign Travels 71,419.00 - 71,419.00 (71,419.00) (71,419.00)

Transfers and Subsidies 15,470,127.08 40,000.00 - 40,000.00 15,430,127.08 15,430,127.08


Vehicles, Equipments and other assets 1,414,320.00 - 1,414,320.00 (1,414,320.00) (1,414,320.00)

Construction, renovations & improvement 25,000.00 - 25,000.00 (25,000.00) (25,000.00)

Total 15,470,127.08 11,987,191.00 - 60,000.00 600,000.00 12,647,191.00 2,822,936.08 3,482,936.08

Enviromental Protection Agency Pesonnel Emoluments - 298,200.00 89,837.50 4,985.00 393,022.50 (393,022.50) (298,200.00)

Goods and Services - 157,700.00 232,953.34 139,604.89 530,258.23 (530,258.23) (157,700.00)

Domestice and Foreign Travels - 10,000.00 18,779.00 18,030.00 46,809.00 (46,809.00) (10,000.00)



Vehicles, Equipments and other assets - 133,900.00 18,375.90 9,065.00 161,340.90 (161,340.90) (133,900.00)

Construction, renovations & improvement - - - -

Total 563,411.00 599,800.00 359,945.74 - 171,684.89 1,131,430.63 (568,019.63) (36,389.00)

Ministry of Youth & Sports Pesonnel Emoluments 541,924.00 541,924.00 (541,924.00) (541,924.00)



Transfers and Subsidies 3,855,344.00 1,524,657.40 1,524,657.40 2,330,686.60 2,330,686.60


Vehicles, Equipments and other assets - - - -

Construction, renovations & improvement 791,210.66

Total 3,855,344.00 3,786,156.23 - - 63,891.57 3,058,837.14 796,506.86 860,398.43

Ministry of Labor Pesonnel Emoluments 839,800.00 839,800.00 (839,800.00) (839,800.00)







Total 2,035,948.00 2,356,344.00 111,733.49 - - 2,468,077.49 (432,129.49) (320,396.00)

General Services Agency Pesonnel Emoluments 596,204.00 596,204.00 (596,204.00) (596,204.00)







Total 1,405,825.00 1,439,226.27 - - - 1,439,226.27 (33,401.27) (33,401.27)

Page 2 of 3

Period: 2008/09 1 2 3 4 5 6 7 8


BIN Pesonnel Emoluments 1,837,267.00 271,262.00 2,108,529.00 (2,108,529.00) (1,837,267.00)







Total 1,440,971.00 2,598,596.00 - - 271,262.00 2,869,858.00 (1,428,887.00) (1,157,625.00)

National Election Commission Pesonnel Emoluments 1,048,474.00 1,048,474.00 (1,048,474.00) (1,048,474.00)







Total 3,347,601.00 3,347,601.00 - - - 3,347,601.00 - -

Ministry of Commerce Pesonnel Emoluments 583,337.00 583,337.00 (583,337.00) (583,337.00)







Total 1,440,971.00 1,471,243.91 - - - 1,471,243.91 (30,272.91) (30,272.91)

Ministry of Planning and Economic Affairs Pesonnel Emoluments 567,314.00 567,314.00 (567,314.00) (567,314.00)







Total 1,107,988.00 1,130,897.00 - - - 1,130,897.00 (22,909.00) (22,909.00)

Grant Total 77,716,890.08 78,335,008.91 12,901,314.23 60,000.00 2,442,654.46 92,947,766.94 (15,230,876.86) 173,091.83

Page 3 of 3

Period: 2009/10 1 2 3 4 5 6 7 8

Name of Ministry/Agency Expenditure Type Per Fiscal Outturns

Per Confirmation by

M&A Grant as Per M&A Submission

Aid as Per M&A

Submission

Others as Per M&A

Submission Total =(2+3+4+5)

Unexplained Variance (1-6) (Aid &

Grant)

Unexplained Variance

between MOF and M&A(1-2)

Ministry of State of Presidental Affairs Pesonnel Emoluments - 1,966,585.00 90,400.00 2,056,985.00 (2,056,985.00) (1,966,585.00)


Domestice and Foreign Travels 1,797,771.00 60,000.00 1,857,771.00 (1,857,771.00) (1,797,771.00)




Construction, renovations & improvement - 290,371.00 100,000.00 390,371.00 (390,371.00) (290,371.00)

Total 8,782,556.00 8,892,294.00 - - 1,667,187.00 10,559,481.00 (1,776,925.00) (109,738.00)

Ministry of Transport Pesonnel Emoluments 783,536.00 783,536.00 (783,536.00) (783,536.00)

Goods and Services 0 430,496.00 - 50,925.00 481,421.00 (481,421.00) (430,496.00)






Total 1,831,826.00 1,733,388.00 - - 50,925.00 1,784,313.00 47,513.00 98,438.00

Ministry of Posts & Telecommunications Pesonnel Emoluments 690,662.00 690,662.00 (690,662.00) (690,662.00)

Goods and Services: - - -






Total 1,288,329.00 987,230.00 - - - 987,230.00 301,099.00 301,099.00

Liberia Broadcasting System Pesonnel Emoluments 310,468.00 310,468.00 (310,468.00) (310,468.00)







Total 558,290.00 958,135.00 - - 586,830.00 1,544,965.00 (986,675.00) (399,845.00)

CNDRA Pesonnel Emoluments 307,783 5,463 313,246.00 (313,246.00) (307,783.00)

Goods and Services: - - -

Domestice and Foreign Travels 3,000 4,547 7,547.00 (7,547.00) (3,000.00)



Vehicles, Equipments and other assets 39,995 39,995.00 (39,995.00) (39,995.00)


Total 419,243.00 350,778.00 10,010.00 - - 360,788.00 58,455.00 68,465.00

Ministry of Gender and Development Pesonnel Emoluments 406,096.00 406,096.00 (406,096.00) (406,096.00)



Transfers and Subsidies 753,159.00 9,000.00 9,000.00 744,159.00 744,159.00




Total 753,159.00 485,827.00 - - - 485,827.00 267,332.00 267,332.00

Ministry of Public works Pesonnel Emoluments 3,434,322.00 3,434,322.00 (3,434,322.00) (3,434,322.00)





Vehicles, Equipments and other assets 3,626,216.00 3,626,216.00 (3,626,216.00) (3,626,216.00)

Construction, renovations & improvement 21,381,742.00 21,381,742.00 (21,381,742.00) (21,381,742.00)

Total 20,851,822.00 30,854,604.00 - - - 30,854,604.00 (10,002,782.00) (10,002,782.00)

CSA Pesonnel Emoluments 606,335.00 606,335.00 (606,335.00) (606,335.00)







Total 1,598,695.00 1,596,981.00 - - - 1,596,981.00 1,714.00 1,714.00

Ministry of Information Pesonnel Emoluments 114,330.64 114,330.64 (114,330.64) (114,330.64)





Vehicles, Equipments and other assets - - -

Annex 6B Comparison of Expenditue Reported in Fiscal Outtuns Report against Expenditue Confirmed by Ministries and Agencies

Page 1 of 3

Period: 2009/10 1 2 3 4 5 6 7 8



Total 1,314,474.00 226,837.14 - - - 226,837.14 1,087,636.86 1,087,636.86

Ministy of Health Pesonnel Emoluments 5,999,291.00 5,035,840.00 11,035,131.00 (11,035,131.00) (5,999,291.00)


Domestice and Foreign Travels - - - -

Transfers and Subsidies 14,049,926.00 4,935,455.00 4,788,210.00 9,723,665.00 4,326,261.00 9,114,471.00


Vehicles, Equipments and other assets 341,840.00 254,860.00 596,700.00 (596,700.00) (341,840.00)


Total 14,049,926.00 14,802,060.00 13,315,800.00 - - 28,117,860.00 (14,067,934.00) (752,134.00)

CDA Pesonnel Emoluments 119,516.00 - 11,450.00 130,966.00 (130,966.00) (119,516.00)

Goods and Services 24,623.00 - 122,327.00 146,950.00 (146,950.00) (24,623.00)




Vehicles, Equipments and other assets 67,733.00 - 67,733.00 (67,733.00) (67,733.00)


Total 213,717.00 211,872.00 - - 133,777.00 345,649.00 (131,932.00) 1,845.00

Ministry of Justice Pesonnel Emoluments 8,431,408.00 227,000.00 126,423.00 8,784,831.00 (8,784,831.00) (8,431,408.00)

Goods and Services 5,115,191.00 - 135,000.00 5,250,191.00 (5,250,191.00) (5,115,191.00)

Domestice and Foreign Travels 166,500.00 - 166,500.00 (166,500.00) (166,500.00)

Transfers and Subsidies 18,450,867.00 15,000.00 - 15,000.00 18,435,867.00 18,435,867.00

Capaital Acquisition - - - - -

Vehicles, Equipments and other assets 1,423,286.00 - 1,423,286.00 (1,423,286.00) (1,423,286.00)


Total 18,450,867.00 15,151,385.00 227,000.00 - 261,423.00 15,639,808.00 2,811,059.00 3,299,482.00

Enviromental Protection Agency Pesonnel Emoluments 334,800.00 128,510.00 2,859.00 466,169.00 (466,169.00) (334,800.00)

Goods and Services 117,503.00 330,552.00 187,068.96 635,123.96 (635,123.96) (117,503.00)




Vehicles, Equipments and other assets 102,900.00 108,190.00 5,891.00 216,981.00 (216,981.00) (102,900.00)


Total 562,054.00 569,203.00 567,252.00 - 195,818.96 1,332,273.96 (770,219.96) (7,149.00)

Ministry of Youth and Sport Pesonnel Emoluments 518,199.00 518,199.00 (518,199.00) (518,199.00)

Goods and Services 725,683.01 142,763.32 - 210,968.23 1,079,414.56 (1,079,414.56) (725,683.01)


Transfers and Subsidies 3,077,264.00 1,641,465.07 1,641,465.07 1,435,798.93 1,435,798.93




Total 3,077,264.00 3,070,202.08 142,763.32 - 210,968.23 3,423,933.63 (346,669.63) 7,061.92

Ministry of Labor Pesonnel Emoluments 899,263.00 - 899,263.00 (899,263.00) (899,263.00)




Capaital Acquisition 111,221.00 111,221.00 (111,221.00) (111,221.00)

Vehicles, Equipments and other assets - - -


Total 1,557,832.00 1,731,492.00 69,030.00 - - 1,800,522.00 (242,690.00) (173,660.00)

General Services Agency Pesonnel Emoluments 659,490.00 659,490.00 (659,490.00) (659,490.00)







Total 1,293,461.00 1,245,362.75 108,185.33 - - 1,353,548.08 (60,087.08) 48,098.25

Pesonnel Emoluments 2,206,476.00 443,610.00 2,650,086.00 (2,650,086.00) (2,206,476.00)

BIN Goods and Services 686,220.00 92,500.00 778,720.00 (778,720.00) (686,220.00)






Total 1,308,499.00 2,975,458.00 - - 536,110.00 3,511,568.00 (2,203,069.00) (1,666,959.00)

National Election Commission Pesonnel Emoluments 1,678,624.00 1,678,624.00 (1,678,624.00) (1,678,624.00)

Goods and Services 3,916,692.00 132,620.00 11,040.00 4,060,352.00 (4,060,352.00) (3,916,692.00)





Page 2 of 3

Period: 2009/10 1 2 3 4 5 6 7 8


Construction, renovations & improvement 3,552.00 2,500,000.00 2,503,552.00 (2,503,552.00) (3,552.00)

Total 5,796,650.00 5,805,925.00 2,632,620.00 - 11,040.00 8,449,585.00 (2,652,935.00) (9,275.00)

Ministry of Commerce Pesonnel Emoluments - 623,290.00 623,290.00 (623,290.00) (623,290.00)







Total 1,346,025.00 1,234,507.75 - - - 1,234,507.75 111,517.25 111,517.25

Ministry of Planning and Economic Affairs Pesonnel Emoluments - 657,935.00 60,100.00 409,829.97 1,127,864.97 (1,127,864.97) (657,935.00)







Total 2,128,930.00 2,205,639.00 68,280.00 - 434,707.65 2,708,626.65 (579,696.65) (76,709.00)

Grant Total 87,183,619.00 95,089,180.72 17,140,940.65 - 4,088,786.84 116,318,908.21 (29,135,289.21) (7,905,561.72)

Page 3 of 3

1

MINISTRY OF FINANCE

FISCAL OUTTURN

FISCAL YEAR 2008/09

October, 2009

Monrovia, Liberia

i

TABLE OF CONTENTS

PAGES

LIST OF FIGURES .............................................................................................................................................. II

LIST OF TABLES................................................................................................................................................ II

1.0 OVERVIEW ............................................................................................................................................ III

1.1 BUDGET 2008/09’S APPROPRIATIONS ................................................................................................... III

1.2 BUDGET 2008/09 OUTTURN: REVENUE ................................................................................................ IV

1.3 BUDGET 2008/09 OUTTURN: EXPENDITURE ......................................................................................... VI

2.0 MACROECONOMIC CONTEXT ........................................................................................................ VIII

3.1 FISCAL POLICY .................................................................................................................................. 1

3.2 REVENUE ........................................................................................................................................... 3

3.2.1 TAX REVENUE ................................................................................................................................... 6

3.3 EXPENDITURE ..................................................................................................................................... 12

3.3.1 APPROPRIATIONS, ALLOTMENTS, COMMITMENTS AND TRANSFERS ................................................. 12

3.3.2 COMMITMENT/CASH SPENDING ....................................................................................................... 16

3.3.3 CASH FLOW ANALYSIS: ............................................................................................................................ 17

3.4 DEBT MANAGEMENT ............................................................................................................................ 18

3.4.1 Domestic Debt ................................................................................................................................. 18

3.4.2 External Debt and Arrears ................................................................................................................ 21

2.5 WAY FORWARD ................................................................................................................................... 24

3.0 APPENDIXES ....................................................................................................................................... 25

3.1 GOVERNMENT FISCAL OPERATIONS – REVENUE (IN MILLION US, DOLLARS) ....................................... 25

3.2 GOVERNMENT FISCAL SUMMARY FISCAL YEAR 2008/09 (IN MILLION USD, UNLESS OTHERWISE

STATED) ........................................................................................................................................................... 26

3.3 GOVERNMENT FISCAL OPERATION BY FUNCTIONAL CLASSIFICATION - FISCAL YEAR 2008/09 (IN

MILLION USD, UNLESS OTHERWISE STATED) .................................................................................................... 27







ii

LIST OF FIGURES

FIGURE 1: SECTORAL CLASSIFICATION OF THE BUDGET- FY2008/09 (IN PER CENT OF TOTAL BUDGET) .......... IV

FIGURE 2: GOVERNMENT FISCAL OPERATION -FY2008/09 (IN MILLION USD, UNLESS OTHERWISE STATED) ....... VIII

FIGURE 3: GENERAL INFLATION, AND CONTRIBUTIONS FROM IMPORTED AND DOMESTIC ITEMS, % ..................... X

FIGURE 4: INFLATION RATES OF SELECTED LINES, % ..........................................................................................XI

FIGURE 5 GOVERNMENT FISCAL OPERATION - MONTHLY PERFORMANCE FY2008/09 ..................................... 2

FIGURE 6: ILLUSTRATION OF QUARTERLY ALLOTMENT (IN USD MILLIONS) BY FUNCTIONAL CLASSIFICATION-

FY2008/09 ................................................................................................................................................. 12

FIGURE 7: PRS ALIGNMENT PER TWO FY ........................................................................................................ 16

LIST OF TABLES

TABLE 1: SUMMARY OF FISCAL OPERATIONS: FISCAL YEAR08/09 VS FY07/08 & FY2006/07, ........................................... VI

TABLE 2: FISCAL OPERATIONS - REVENUE PERFORMANCE ............................................................................................. 4

TABLE 3: FISCAL OPERATIONS - REVENUE PERFORMANCE .............................................................................. 5

TABLE 4: YEAR -ON - YEAR MONTHLY REVENUE RECEIPT ................................................................................ 6

TABLE 5: FISCAL OPERATIONS - REVENUE PERFORMANCE .............................................................................. 7

TABLE 6: PERFORMANCE OF INDIVIDUAL TAXES ON INCOME AND PROFIT ......................................................... 9

TABLE 7: REVENUE INTAKE BY SECTOR MINISTRY AND AGENCY .................................................................... 10

TABLE 8: ALLOTMENT BY SECTOR – FY2008/’09 ......................................................................................... 13

TABLE 9: ANALYSIS OF ALLOTMENT (IN USD MILLIONS) BY EXPENDITURE TYPE –F008/’09.......................... 13

TABLE 10: COMPARATIVE ANALYSIS OF PRS ALIGNMENT FOR TWO FISCAL PERIODS ..................................... 15

TABLE 11: GOVERNMENT FISCAL OPERATION-REVENUE & EXPENDITURE ANALYSIS FY2008/09 .................... 16

iii

1.0 OVERVIEW

Fiscal year 2008/09 marked the start of the implementation of the Liberia Poverty Reduction

Strategy (PRS). This strategy clearly articulates the road map for achieving the medium term

agenda of the Government of Liberia. The PRS is structured in a four pillar framework with a

simultaneous implementation approach, comprising: peace and security; revitalization of the

economy; strengthening of governance and the rule of law; and rehabilitation of infrastructure

and delivery of basic services.

The Government of Liberia has committed itself to broadly aligning its domestic revenue with

the PRS, with 55 per cent in the first year of implementation, 60 per cent in the second year and

65 per cent in the third year1. This report highlights the achievements and challenges

encountered in implementing the objectives laid out in the Poverty Reduction Strategy via the

government budget.

1.1 Budget 2008/09’s appropriations

The National Legislature approved a total budget of US$298.09 million for fiscal year 2008/092,

which was submitted by the Executive and featured a total Base-Budget of US$270.19 million

(representing 90.6 per cent of the total) and a Contingent-Budget of US$27.09 million

(representing the remaining 9.4 per cent). The Government of Liberia allocated 58 per cent of

the National Budget towards the PRS, reflecting a 3 percentage point increase over the target of

55 per cent. In nominal terms, the Budget is allocated among five functional categories, as

follows: Public and Administrative Services Sector (PASS) US$74.48 million; General Claims

US$72.14 million; Social and Community Services Sector (SCSS) US$63.05 million; Economic

Services Sector (ESS) US$51.61 million and Rule of Law and Public Safety Sector (RLPS)

US$36.80 million. During the fiscal year, original revenue projections were put at US$277.71

million. These projections assumed an 18 per cent growth in nominal GDP for those tax

categories that grow along with the economy. No grants were included in the revenue

projections because partners did not make full commitments during the budget preparation

period. On the basis of the budgetary appropriations, all spending entities developed cash plans

for the total base budget, totaling US$270.19 million.

1 Due to the targeting of some grants or budget support, grants are netted out.

2 Covering July 1, 2008 to June 30, 2009.

iv

Figure 1: Sectoral Classification of the Budget- FY2008/09 (In per cent of total Budget)

2521.2

17.312.4

24.1

58

Source: Macro Fiscal Analysis Unit, Ministry of Finance.

1.2 Budget 2008/09 Outturn: Revenue

As shown in table 1 below, total revenue (including grants) collected during the fiscal year

under review amounted to US$234.91 million, about 78.8 per cent of total appropriation

(US$298.08 million), 15.4 per cent below projection of US$277.71 million and about 13.5 per

cent above total revenue for prior fiscal year. The shortfall in total revenue reflected a relatively

small difference in cumulative tax revenues of around 5 per cent and a significant shortfall of

non-tax revenues, which were lower than projected by 67 per cent. This departure from the two-

year upward pattern of strong revenue growth is in part attributed to:

� Impact of the global financial crisis on the Liberian economy and revenue base (through

low remittances, limited credit lines available to local importers, drastic drop in the prices

of major export products such as rubber, iron ore);

� Complications in the entire biding and contract ratification process of various

concessions that were expected to generate more revenue;

� Re-tendering of the Western Cluster Concession;

� Non compliance on the part of some taxpayers when taxes fall due;

v

The key revenue streams contributing to the overall collection were as follows:

� Taxes on international trade at US$88.54 million, 15 per cent above projection of

US$77.22 million and 37.7 per cent of total revenue;

� Taxes on income & profits at US$63.43 million,16 per cent over projection of US$54.46

million and 23.2 per cent of total revenue;

� Business and Professional Licenses at US$4.45 million or 33 per cent above projections

of US$3.34 million; and

� Fines and Forfeit, accounting for US$1.62 million or 224 per cent of the projection of

US$0.50 million.

Factors leading to the over performance of the above includes:

� Vigorous tax campaign aiming at informing taxpayers to pay their taxes and avoid under

declaration;

� Introduction of compensation scheme to compensate whistle blowers who report false

declaration of taxes by taxpayers;

� Process automation to reduce business processes.

Most of the contingent budget was expected to be realized from the mining concessions and the

Forestry sector. The outcomes of these concessions depended on legislative ratification, and a

contributing factor to the revenue shortfall was therefore the complications in the entire bidding

and contract ratification process as well as the re-tendering of the Western Cluster Concession

bid.

This revenue outturn meant that the total amount available to spend by the Government was

US$258.29 million, representing total revenue of US$234.91 million plus US$23.38 million as

amount brought forward from the prior period of fiscal year.

As described above, the government did not make any grant projections for fiscal year 2008/09

as partners did not make full commitments during the budget preparation period. However, the

Government received US$23.51million (US$12.0 million in quarter III and US$11.5 million in

quarter IV) from the African Development Bank (ADB) during the fiscal year. The ADB grant

came as a quick response to mitigate the fiscal impact of the global financial crisis in the face of

growing evidence of a revenue shortfall, helping to maintain vital expenditures, and was made

possible as a result of the significant improvement made by the Government of Liberia in its

Public Financial Management System.

vi

Table 1: Summary of fiscal operations: Fiscal year08/09 Vs FY07/08 & FY2006/07,

expenditure on a commitment

Category Projection Actual

Variance (in %)

against target

Total Revenue 132.88 148.34 11.6

Total Expenditure 134.98 134.65 -0.2

Total Revenue 182.46 206.89 13.4


Total Revenue 277.71 234.91 -15.4


Total Revenue 37.31 39.47

Total Expenditure 55.06 51.04

Total Revenue 52.20 13.54

Total Expenditure 42.42 23.17

Fiscal Year 2007 -2008

Fiscal Year 2006 - 2007

Fiscal Year 2008 - 2009

Growth in % from fiscal 2006/07 to fiscal year 2007/08

Growth in % from fiscal 2007/08 to fiscal year 2008/09

Source: Macro Fiscal Analysis Unit, Ministry of Finance

1.3 Budget 2008/09 Outturn: Expenditure

At the beginning of the fiscal year, cash plans for the total base budget were developed by all

spending entities, totaling US$270.18 million (see figure 2) and served as a guide for the

allotment of appropriations. Figure 2 shows that the original cash plans and allotment for the

fiscal year exceeded the original revenue projection. This is largely on account of the fact that

cash plans reflect the inclusion of cash brought forward from previous fiscal years in the total

amount available for government expenditure. Cash plans were based on the revenue

projections made at the time of the Budget. However, prudent planning and the successful

operation of the cash-based balanced budget meant that the Government did not incur any

deficits.

However, by the end of the second quarter of the fiscal year, it had become clear that the

revenue profile was threatened by the sharp downturn in the global economy. As a result,

Government of Liberia adopted “quick wins” fiscal measures to mitigate the impact, by adjusting

the cash plans of various ministries and agencies downward, and slowing down expenditure,

beginning in February 2009. While slowing down expenditure, the Government at the same time

ensured that available cash resources were directed towards PRS-related spending areas: the

“quick wins”. The grants received from the ADB further allowed the government to smoothen

expenditure, removing the need for greater budget cuts and helping to protect PRS expenditure.

vii

In the actual outturn, expenditure through the fiscal year was US$231.45 million on a cash

basis, and US$250.50 million on a commitment basis. The total allotment during the fiscal year

was US$262.40 million, leaving an uncommitted balance in allotment of US$11.90 million.

The balance in budgeted appropriation (commitment versus appropriation) was US$47.58

million, and balance in appropriation of US$35.68 million (allotment versus appropriation) was

largely on account of the fact that the fiscal year experienced the setback in revenues intake as

described above. Allotments issued through the fiscal year were about 97 per cent of the

original cash plans of US$270.18 million, reflecting significant improvement in the budget

process.

The balance in allotment of US$11.90 million against commitment was in part due to delays in

processing payment vouchers and/or limited capacity on the part of spending ministries and

agencies to utilize all of their allotments, late submission of allotments requests; and delays in

procurement processes. In order to address these challenges, Government of Liberia is working

along with partners in building capacity at the line ministries and agencies level.

As shown in figure 2 below, total cash expenditure during the fiscal year was US$231.45 million.

This amount represents commitments made in prior fiscal year of 2007/08 and the period under

review.

viii

Figure 2: Government Fiscal Operation -FY2008/09 (In million USD, unless otherwise stated)


During the second half of the fiscal year, the pace of spending by donors on local projects

declined. The Government started receiving signals that donors were winding down activities in

some of the critical PRS areas such as Health and Security, as the global financial crisis caused

funds on the global market to dry up.

2.0 MACROECONOMIC CONTEXT

The global economy is beginning to pull out of a recession unprecedented in the post-World

War II era, but stabilization is uneven and the recovery is expected to be sluggish. As the

human costs of the global recession are being felt in Africa especially in unemployment and

depressed economic growth, governments must deploy smart and appropriate fiscal and

monetary solutions to stem the downturn and speed up recovery.

While growth slowed significantly in 2008/09, it is largely adjudged to be the result of project

postponements, not cancellations. Growth prospects therefore remain strong for the Liberian

ix

economy, as the global economy recovers and projects come on stream. It is hoped therefore

that as these projects take place in FY2009/10 they will boost GDP and job creation. Growth is

expected from all sectors of the economy in the short to medium term.

Nevertheless, Liberia has been affected by the serious downturn in the global economy. The

economic slowdown in the US and OECD countries began to manifest its effects on

unemployment levels, sharply reducing the net remittances to Liberia. Lower prices on the

international market for Liberia’s primary exports continue to threaten our growth prospects.

About 95 per cent of the country’s exports are primary commodities (including gold, diamond,

rubber, iron ore, timber) whose prices are determined on the world market. The deterioration in

the demand for these commodities thus affects export earnings significantly, weakening both

national income and the balance of payments position. A cut back in external credit lines on the

world market that are available to local importers has increased domestic demand for US

dollars, and firms continue to request foreign exchange to meet local and foreign obligations.

Consequently, this condition, along with lower exports is creating increased pressure on the

exchange rate which has slipped to L$71.0 to US$1.00.

As a result, the Government of Liberia in collaboration with the International Monetary Fund

(IMF) has projected growth for the medium term as follows: For 2009, real GDP growth is

expected to decline sharply to 4.9 per cent, 6.3 percentage points above world growth of

negative 1.4 per cent and 3.1 percentage points above average growth rate of 1.8 per cent for

Africa. Growth is projected to be 7.5 per cent for 2010 and around 9 per cent for 2011. The year

2011 is expected to be the year of full recovery from the global economic crisis. The economic

downturn is expected to be reflected in delays in foreign direct investments, mining and forestry

exports.

As shown in figures 3 and 4, inflation for the first quarter of the fiscal year was more than 20 per

cent, with both domestic and imported items contributing strongly, particularly food prices. The

weight of all domestic items in the overall index is 58 per cent and 42 per cent for all imported

items. The beginning of the fiscal year was characterized by the global food crisis that led to

hikes in domestic food prices. As global food and fuel prices subsided in the second half of 2008

and early 2009, inflation in Liberia fell to around 7 per cent and has been relatively stable in

recent months. Crude oil prices have roughly halved from their peak of US$147 to around

US$75, though they have risen from the lows reached earlier in 2009.

x

Although the weight of fuel in the overall index is low at 2 per cent, sharply lower oil prices fed

through indirectly to impact on domestic food and transportation costs. The fall in consumer

price inflation reflects cheaper domestic food costs because access to transportation (from

cheaper gasoline prices) has made access to food cheaper and more readily available.

Figure 3: General inflation, and contributions from imported and domestic items, %


xi

Figure 4: Inflation, contributions from individual

items

-5 .0

0 .0

5 .0

1 0 .0

1 5 .0

2 0 .0

2 5 .0

JuL-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

O TH ER

H O U S IN G , W A T ER , E L EC TR IC ITY , G A S A N D O TH E R F U E L S

C L O TH IN G A N D F O O TW EA R

D O M E S TIC F O O D ITE M S

IM P O R T ED F O O D ITE M S

Figure 4: Inflation rates of selected lines, %

-40.00

-20.00

0.00

20.00

40.00

60.00

80.00

J uL -08 Aug-08 S ep-08 O ct-08 Nov-08 Dec-08 J an-09 F eb-09 Mar-09 Apr-09 May-09 J un-09

AL L IMP OR TE D IT E MS AL L DOME S T IC IT E MS

IMP OR T E D F OOD IT E MS DOME S TIC F OOD IT E MS

IMP OR T E D F UE L


xii

The depreciation of the Liberian Dollars, due to the financial crisis, is worrisome. The IMF

argues that African countries can use exchange rates to rebalance growth when possible. In

countries where the terms of trade have deteriorated, real exchange rate will have to depreciate

to preserve macroeconomic stability. Exchange rate issues have drawn the attention of the

President and a team of financial technicians from the Central Bank of Liberia and the Ministry

of Finance, who have been taking actions to stem the depreciation of the Liberian Dollar. Aside

from the usual effects of depreciation in terms of increased export competitiveness and the risk

of inflation (as import prices increase) local currency depreciation has significant wider

consequences in the local economy in Liberia. Exchange rate volatility plays out strongly in the

real economy due to the nature of Liberia’s import-dependent and highly dollarized economy.

Moreover, the effects of these changes are experienced disproportionately by the poorer

sections of the Liberian society, with least access to US Dollars. Going forward, the

Government has put in place short term fiscal measures to encourage the wider use of the

Liberian Dollar. These measures include the payments of Real Estate Taxes in Liberian Dollars,

based on the prevailing market rate. Taxpayers will also be allowed to pay 15 per cent of their

customs duties in Liberian Dollar, and the Ministry of Finance has agreed to meet some of its

domestic obligations payments in Liberian Dollars. The Central Bank o Liberia is also seeking

to increase the value of US Dollars on sale at its weekly auctions, with the goal of ensuring that

the exchange rate do not fluctuate beyond a bandwidth of comfort.

1

3.0 BUDGET EXECUTION

3.1 FISCAL POLICY

The Government of Liberia’s overall policy objective, articulated in the PRS, is to put the country

on an irreversible path toward rapid, inclusive and sustainable growth and development. In

support of this, the Government’s fiscal policy objective is to achieve macroeconomic stability

and to ensure that the benefits of growth are widely shared by supporting the PRS. This is

achieved through:

• Broadening the tax base through tax policy reforms and modernization of domestic tax

and customs administration

• Maintaining a cash-based balanced budget, preventing the build-up of arrears and

moving towards HIPC completion point in order to further write-off Liberia’s debt;

• Rationalizing current expenditures and ensuring that the allocation of spending is

directed towards PRS areas; and

• Improving the efficiency, transparency, accountability and control of fiscal processes,

including the implementation of the new Public Financial Management law and the

achievement of EITI compliancy.

With these ambitious reforms agenda in Liberia, the Poverty Reduction Strategy (PRS)

continues to forge ahead amid some challenges. However, macroeconomic and financial policy

support to the Government from external partners (IMF, World Bank, ADB and others) is proving

invaluable to meet the evolving challenges of Liberia’s economic future. The government is also

pursuing a major overhaul of its tax policy and investment regimes to ensure that it is attractive

to foreign direct investments in its key export sectors, and that these are of long-term

sustainable benefit to Liberia.

Fiscal policy-streamlining put into place by the Ministry of Finance as well as benchmarks

agreed with the IMF/World Bank is on target to meet the Heavily Indebted-Poor Countries

(HIPC) goals provided for Liberia. Testament to this paradigm shift, Liberia stands to benefit

from post-HIPC financial assistance.

2

The ongoing reforms and fiscal correction efforts in the Public Financial Management systems

should continue to be supportive of raising investment to meet rising domestic demand - both of

which are the main drivers of the current growth pattern in the Liberian economy.

The government’s cash-based budget approach continues to maintain fiscal discipline and

ensure sustainability in the government budget. Figure 6 below shows the monthly path of

revenue, commitment and cash expenditure for the fiscal year 2008/09.

Figure 5 Government Fiscal Operation - Monthly Performance FY2008/09 (In million US Dollars, unless otherwise stated)


3

3.2 REVENUE

Basic Assumptions: The fiscal year 2008/2009 revenue forecast is carried out on a cash

basis, consistent with the government’s cash-based balanced budget regime. The forecast is

based on available data from various revenue sources within the Ministry of Finance, BIVAC

(the provider of pre-shipment and destination inspectorate services) and various sector

ministries and agencies. For Internal Tax Revenue projections, a growth rate of 18 per cent in

nominal terms was used. In the case of Business Profit Taxes (corporate and presumptive) a

growth rate of 8 per cent in nominal terms was used, due to losses projected by key entities in

their submissions to the MoF. Also, the proposed tax rate of 30 per cent was applied in

anticipation of the legislative approval of a proposed reduction from 35 per cent to 25 per cent,

which have not taken place yet. The projections were underpinned by the historical gross

declarations from businesses using an historical profit average of 12 per cent.

Withholding taxes on salaries and wages were projected to grow at a rate of 10 per cent taking

into account a cost of living adjustment of 8 per cent on private sector related salaries.

Moreover, it was assumed that the implementation of the proposed reduction in the personal

income tax rates would occur in October 2008, but this has been shifted to the next fiscal year

(2009/10).

At the beginning of the fiscal year 2008/09, projections for customs revenue were based on an

estimated growth rate of 10 per cent of actual CIF and FOB values for the prior period imports

using import statistics and anticipated policy initiatives such as duty exemptions on agriculture,

construction and forestry equipments; imported cement, and rice.

Revenue summary: Total revenue collected during the fiscal year 2008/09 was US$234.91

million, 15 per cent below projected revenue of US$277.71 million and about 14 per cent above

that collected in fiscal year 2007/08. Government of Liberia received a grant of US$23.51 million

from the ADB in quarter III and IV. The key revenue streams contributing to the collection of

taxes are taxes on International Trade, amounting to US$88.54 million, 37.7 per cent of total

revenue; taxes on income & profit of US$63.43 million, 16 per cent over projection. Business

and Professional Licenses raised US$4.45 Million, 33 per cent above projections of US$3.34

million.

4

Table 2: Fiscal Operations - Revenue Performance

Quarter Projection Actual Variance % of Variance

QTR I 38.00 46.18 8.18 22%

QTR II 43.38 46.72 3.34 8%

QTR III 50.01 74.74 24.73 49%

QTR IV 146.32 67.27 (79.05) -54%

Total 277.71 234.91 -42.8 15.41

Source: Department of Revenue, Ministry of Finance.

Revenue collected in U.S. Dollars amounted to US$ 224.18 million while Liberian Dollar receipts

totaled L$771.57 million (or US$11.69 million)3. The Ministry of Finance continues to encourage

the payment of applicable taxes and fees in Liberian dollars in order to reduce the demand for

United States Dollars.

The Liberian Dollar revenue receipts of LD197.80 million fell below projected revenue payments

in Liberian dollars by 16 per cent. The average conversion rate was LD71.57.

Non-tax revenues were lower than projected, accounting for US$21.38 million, 9 percent of total

revenue collected. This represents an under performance of US$43.56 million against the

forecast of US$64.94 million. Of the total revenue collected, Internal Revenue stood at

US$104.85 million, 44.6 per cent of total revenue generated during fiscal year2008/09, and 41.9

per cent below projection of US$180.58 million .Revenues from stumpage fees were lower than

expected at US$0.67 million falling below projections of US$6.10 million. The performance of

the forestry sector is a key concern. This sector accounts for 2 per cent of the base budget and

22 per cent of the contingent budget. In addition, payments had been expected from Mittal,

Western Cluster, Bong Mines and Nocal Oil, but have not yet materialized. Grants, however,

have been higher than projected with US$12.0 million received in February and US$11.5 million

received in June 2009, compared to a projection of no grants throughout the year.

About 95 per cent of collections were projected to be paid in United States dollars. Similarly,

Government of Liberia pays the equivalent of this in US dollars of its expenditures, thereby

3 BASED ON APPROVED BUDGET RATE OF 66LD/USD, FOR THE FISCAL YEAR.

5

mitigating the US dollar demand effect. The flow of revenue for QI was projected at 14 per cent

of total revenue, QII at 16 per cent, QIII at 27 per cent and QIV at 43 per cent.


2008/09 2007/08 Variances (%)

Category Projection Outturn Outturn Proj. Outturn

Total Revenue and Grants 277,707 234,905 206,891 -15.4 13.5

Total Revenue 236,605 210,764 178,033 -10.9 18.4

Tax Revenue 171,666 189,746 170,918 10.5 11.0

Direct Taxes 54,458 65,830 55,838 20.9 17.9

Payroll Taxes 17,850 35,266 22,456 97.6 57.0

Business Profit Tax 27,893 25,215 26,845 -9.6 -6.1

Others 8,715 5,349 6,537 -38.6 -18.2

Taxes on Immovable Property 1,757 1,340 1,176 -23.7 13.9

Domestic Indirect Taxes 22,198 21,033 19,652 -5.2 7.0

Genera Sales Taxes 9,950 9,238 8,371 -7.2 10.4

Excise Taxes 3,884 5,017 4,037 29.2 24.3

Taxes on Specific Services 1,525 165 0 -89.2 0

Business and Prof. Scvs. 3,337 4,453 4,803 33.4 -7.3

Motor Vehicles 3,502 2,160 2,441 -38.3 -11.5

Maritime Revenue 16,027 12,997 14,040 -18.9 -7.4

Taxes on International Trade 77,226 88,546 80,212 14.7 10.4

Taxes & Duties on Import 76,242 87,603 78,897 14.9 11.0

Import duties 47,620 52,838 50,346 11.0 4.9

Import GST 22,000 26,455 22,277 20.3 18.8

Import Sur-charge 6,622 8,310 6,274 25.5 32.5

Export duties 984 943 1,315 -4.2 -28.3

Non Tax Revenue 64,939 21,018 7,115 -67.6 195.4

Government property income 11,108 1,882 636 -83.1 195.9

Stumpage & Relt. Charges 6,104 673 753 -89.0 -10.6

Others 47,727 18,463 5,726 -61.3 222.4

Other Taxes 41,102 24,141 28,858 -41.3 -16.3


6

Table 4: Year -on - year Monthly Revenue Receipt

Month FY2008/09 FY2007/08 % Change July 19.55 15.10 29.4August 12.97 12.85 0.9September 13.66 15.80 -13.5Quarter I 46.18 43.75 5.6

October 16.48 19.23 -14.3November 14.06 12.76 10.2December 16.18 12.92 25.2Quarter II 46.72 44.91 4.0

January 23.74 24.43 -2.8

February 24.09 16.51 45.9

March 26.91 18.22 47.7

Quarter III 74.74 59.16 26.3

April 18.02 18.49 -2.5

May 17.31 20.74 -16.5

June 31.93 18.12 76.2

Quarter IV 67.26 59.08 13.8

Total (I, II & IV) 234.90 206.90 13.5


3.2.1 Tax Revenue

Tax Revenue collected during the fiscal year totaled US$177.04 Million, 5 per cent more than

projection of US$168.83, 75 per cent of total revenue and 4.6 percent greater than tax revenue

of prior fiscal year (2007/08). Several key revenue streams were above projections, including:

individual Taxes on Income and Profits which accounted for US$65.83 million and was above

projection by US$11.37 million or 21 per cent. This was followed by Business and Professional

License that stood at US$4.45 million exceeding projection by US$1.12 million or 33 per cent.

Customs Duties on all imports was US$79.29 million, 14 per cent above projection of US$66.62

million and 8 per cent above collection in prior fiscal year of 2007/08. Other key revenue

streams contributed significantly to the revenue include Customs Surcharge and Fines and

Forfeit.

Taxes that fell below projection include Unallocable Income & profit Taxes, Motor Vehicle

Taxes, Taxes on Maritime Revenue, Taxes on Immovable Properties, Taxes on Specific

Services and Government Property Income. (See table below).

7

Factors that led to the underperformance of revenue include, non compliance of some tax

payers when taxes fall due, as well other major concession agreements that were not finalized

either as a result of legislative delays or delays in the completion of these concessions. Most of

the contingent revenues were to be generated from concessions that were expected to be

ratified.

Tax payments in Liberia are being done voluntarily, as a result, the Department of Revenue of

the Ministry of Finance has embarked on various tax awareness campaigns, aimed at informing

tax payers to pay their taxes on time and to avoid under-declaration of their taxes.

Compensations will be made for whistle blowers who report false declaration of taxes by

taxpayers. With signals of improvement in the global economy and the finalization of many

concessions including the China Union agreement, there are signs of improvement in the

collection of revenue going forward.


Qtr I Qtr II Qtr III Qtr IV Qtr I Qtr II Qtr III Qtr IV

Tax Revenue 32.85 35.10 42.04 58.84 168.83 41.51 40.29 48.94 46.30 177.04 8.21 5%

Non-Tax Revenue 2.30 4.11 4.77 53.76 64.94 1.90 2.82 10.31 6.35 21.38 (43.56) -67%

Maritime 2.74 4.17 3.18 5.94 16.03 2.77 3.61 3.48 3.12 12.98 (3.05) -19%

Extra-Ordinary Revenue 27.90 27.90 (27.90) -100%

Grant - - - 12.01 11.50 23.51 23.51

Total 37.89 43.38 50.0 146.44 277.7 46.18 46.72 74.7 67.27 234.91 -42.79 -1.8124

Variance

% of

Variance

Projection 08/09

Category

Actual 08/09

Total Total

Source: Department of Revenue, Ministry of Finance

3.2.2 Customs and Excise

Revenues from customs operations amounted to US$93.57 million, 15 per cent more than

projection of US$81.10 million; 53 per cent of total tax revenue and 40 per cent of total revenue.

International trade specifically import duties continued to account for the majority of Customs

revenues. During the fiscal year, import duties accounted for US$79.29 million, 14 per cent

more than projection of US$69.61 million and 85 per cent of total customs operations. Customs

surcharge was US$8.31 million or 9 per cent of customs revenue.

8

Customs Collectorates: There are 17 functional Customs collectorates plus 34 sub ports.

These collectorates are subdivided into urban and rural ports. In the urban, there are 6

collectorates plus the Freeport Collectorates, which are the highest contributor of all

collectorates, accounting for 73 per cent of total customs revenue and 29 per cent of total

revenue collection. The revenue collection from Freeport is US$67.98 million.

The second performing collectorate is the LPRC Collectorate which contributed US17.51 million,

7 per cent of the total revenue. There were three major contributors from rural customs

collectorates. They are RIA 1.28 per cent, Buchanan 0.37 per cent, and Ganta 0.09 per cent of

the total revenue respectively. The collectorates of Butuo and Greenville brought in the lowest

amounts of revenue.

2.2.3 Internal Revenue

Internal revenue contributed US$104.85 million or 44.6 percent of total revenue generated

during fiscal year 08/09, and 41.9 per cent below projection of US$180.58 million.

Taxes on Income and Profits: Actual revenue realized from taxes on income and profits

through the fiscal year was US$63.43 million, which exceeded the projection of US$54.46

million by 16.5 percent due to an over performance in individual taxes on income/profits and

Corporate Income Tax which contributed US$37.28 million and US$25.2 million respectively.

9

Table 6: Performance of Individual Taxes on Income and Profit (In million D, unless otherwise)

Qtr I Qtr II Qtr III Qtr IV

Taxes on Income and Profits 13.26 13.23 21.92 15.02 63.43 54.46 8.97 16%

Ind. Taxes on Income and Profits 9.15 8.94 8.80 10.39 37.28 20.16 17.12 85%

Wages and Salaries Withholding 8.86 8.55 8.51 10.17 36.09 17.85 18.24 102%

Withholding on Lease-Individual 0.29 0.39 0.20 0.16 1.04 1.86 (0.82) -44%

income from gambling 0.00 0.09 0.06 0.15 0.45 (0.30) -66%

0.00

Business Profit Taxes 3.85 3.91 13.00 4.44 25.20 27.89 (2.69) -10%

Corporate Income Tax 3.77 3.85 12.63 4.11 24.36 27.57 (3.21) -12%

Partnership Income Tax 0.08 0.06 0.06 0.09 0.29 0.32 (0.03) -9%

Withholding on Rent & Lease-Corporate 0.31 0.24 0.55 0.55

0.00

Unallocab. Income and Profit Taxes 0.26 0.38 0.17 0.19 1.00 6.42 (5.42) -84%

Rubber Sale Taxes 0.17 0.00 0.07 0.14 0.38 1.92 (1.54) -80%

Withholding on Non-Residents 0.08 0.11 0.04 0.05 0.28 4.18 (3.90) -93%

Other Taxes on Income and Profit 0.01 0.27 0.06 0.34 0.32 0.02 5%

Acutual-FY-08/09

Tax Kind

Annual

Actual

Annual

Proj. Variance

% of

Variance

Source: Department of Revenue, Ministry of Finance Domestic Taxes on Goods and Services: At US$ 21.03 million, domestic taxes on goods and

services were 1.16 million less than projected revenue of 22.20M. GSM companies totaled US$

9.50 million compared to projection of US$8.92m. The GSM performance is mainly from

Lonestar with a collection of US$ 5.00 million. Lonestar performance continued to exceed its

own projections, an indication of the expanding market base and market dominance by

Lonestar. The next in line was CELLCOM Communication Corporation that contributed US$2.5

Million or 26 per cent of the total GSM revenue collected while COMIUM and Libercell

accounted for US$ .99 and US$ 1 Million or 10% and 11% respectively to the GSM revenue

Revenue from license fees for diamond, gold, exploration, quarry and other mining fees

accounted for US$2.68 million or 13 percent of the total revenue on domestic taxes on goods

and services. This represented 1.1 percent of the total revenue.

The Ministry of Lands, Mines, & Energy collection was US$0.295M but fell below projections by

7 per cent or US$0.318M during the quarter.

Motor Vehicles: A total of US$6 million was collected as taxes on motor vehicles, 38 per cent

or US$1.35 million below projection. US$1.79 million represented collection for vehicle license

plates and US$0.37 million represented driver’s license. These figures represent voluntary

compliance as there was no enforcement during the period. When compared to projection, the

10

budget assumed a total of 7,121 license plates and 2,936 driver license issuance. This area

continues to be high risk for fake receipts to vehicles owners. Under a World Bank grant a radio

link is expected to be installed at the Ministry of Transport to facilitate the establishment of two

CBL teller booths.

Table 7: Revenue intake by Sector Ministry and Agency

No. Sector Ministry Revenue

1 Ministry of Commerce 1,505,395.00

2 Ministry of Foreign Affairs 270,191.00

3 Judiciary 2,991.00

4 Ministry of Youth and Sports 2,791.00

5 Ministry of Agriculture 20,432.00

6 Labor Ministry 744,891.00

7 Ministry of Justice 487,933.00

8 Ministry of Health 64,795.00

9 Ministry of Post and Telecommunication 19,735.00

3,119,154.00 Total Revenue


Real Property Tax: Collection on Real Property Tax amounted to US$1.34 million, 24 per cent

below projection of US$1.76 million. Taxes on building and land accounted for US$1.26 and

US$0.08 million or 94 per cent and 6 per cent of the total revenue respectively.

Internal Revenue Collection: Internal revenue collectorates are divided into two Divisions:

Urban and Rural Taxpayer Divisions. The Rural Taxpayers Division is categorized into two

regions: Western and Eastern Regions. During the fiscal year, US$1.4 million was collected as

total revenue against a target of US$1.3 million from the 18 Collectorates in the 15 Counties.

US$100,000.00 was realized as an excess collection from the 2008/09 projection of US$1.3

Million.

11

Non-Tax Revenue: Non-tax revenue for the fiscal year amounted to US$21.38 million, 9 per

cent of total revenue collected. This represents an significant under performance of US$43.56

million against the forecast of US$64.94 million.

Forestry: For FY2008/09, Stumpage and related charges collections stood at US$0.67 million

falling below projections of US$6.10 million by 89 percent. The performance of the forestry

sector is key concern. This sector account for 2 per cent of the base budget and 22 per cent of

the contingent budget. The revised forecast of the sector is US$15.0 million. The budget

assumed 2,269,960 TSC and 15,748,899 FMC. The FMCs was projected to come on stream in

April but did not materialize.

The sector ministries contributing to the collection of administrative fees and charges are the

Ministry of Foreign Affairs, Ministry of Labor & Bureau of Immigration of the Ministry of Justice.

Maritime Revenue: Maritime revenue for fiscal year 2008/09 was US$12.98 million or 19 per

cent below projections of 16.03 million and 8 percent below Maritime Revenue of fiscal year

2007/08. Tonnage taxes and corporate fees totaled US$9.35 million and US$3.65 million,

respectively. DCO stood at US$0.02 million. Maritime revenue accounted for 5.5 percent of

total revenue. Revenues budgeted for small water crafts have not been remitted to the

consolidated account.

12

3.3 EXPENDITURE

3.3.1 Appropriations, Allotments, Commitments and Transfers

As of June 30, 2009, US$262.40 million or 88 per cent of the total budget was allotted to various

line ministries and agencies. The balance in appropriation from the point of allotment as of June

30, 2009 is US$35.66 million, which represents 12 per cent of the total appropriation. The

balance in appropriation of US$35.66 million was largely on account of the fact that the fiscal

year experienced a setback in revenue intake as described above and delays on the part of line

ministries and agencies in their submission for allotment requests and cash plans.

The Budget is broadly aligned with the PRS and it is allocated among five functional categories.

The amounts allocated include: Public and Administrative Services Sector (PASS) US$74.48

million; General Claims US$72.14 million; Social and Community Services Sector (SCSS)

US$63.05 million; Economic Services Sector (ESS) US$51.61 million and Rule of Law and

Public Safety Sector (RLPS) US$36.80 million.

Cash Plan: Cash Plans were developed by ministries and agencies in compliance to the Cash

Management Committee’s regulation on spending. During the fiscal year, cash plans for all

ministries and agencies totaled US$270.19 million, equal to the base budget. Matching this

amount with total allotment of US$262.40 million, there was a variance of US$7.76 million.

Figure 6: Illustration of Quarterly Allotment (in USD Millions) by Functional Classification-

FY2008/09

Source: Department of Budget, Ministry of Finance

13

Table 8: Allotment By Sector – FY2008/’09

Function

Adjusted

Approp.

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

Total

% of Total

Allotment

% of

Total

Budget

Bal. in

Approp.

Public & Admin. Services 79.52 24.75 20.19 17.48 17.10 79.52 30.30 26.68 0

Rule of Law Pub. Safety 38.07 10.68 10.23 8.30 8.76 37.97 14.47 12.73 0.10

Social & Comm. Services 68.27 21.57 17.10 11.24 14.97 64.88 24.72 21.77 3.39

Economic Services 52.53 22.26 9.72 7.24 5.84 45.06 17.17 15.12 7.47

General Claims 59.70 1.05 18.65 5.15 10.15 35.00 13.34 11.74 24.70

Total 298.09 80.31 75.89 49.41 56.82 262.43 100.00 88.04 35.66


Table 7 illustrates Public Administrative Services Sector (PASS) as the largest budgetary

appropriation of US$79.52 million which received 100 per cent allotment, 30 per cent of

aggregate allotment of US$262.43 million. This was followed by Social and Community Services

Sector (SC&SS) with US$64.88 million or 24.72 per cent. Economic Services Sector (ESS) was

allotted US$45.06 million or 17.17 per cent; Rule of Law and Public Safety (RL&PS),

US$37.97million accounting for 14.48 per cent and General Claims, US$35.00 million

representing 13.35 per cent. It is observed that the first quarter allotment registered the highest

with US$80.31 million. The reason is that, at the beginning of the fiscal year, spending entities

ambitiously request for more funding in order to vigorously commence their operations. In terms

of the balance in appropriation, General Claims account for the largest proportion, due to some

expenditure lines in this category that were secondary and were either reduced or deferred as a

result of decline in revenue, allowing expenditure on higher priority items to continue.

Table 9: Analysis of Allotment (in USD Millions) By Expenditure Type –F008/’09

Expenditure Type

1ST Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

Total

% of Total

Allotment

% of

Total

Budget

Personnel Services 20.93 20.49 23.74 25.30 90.46 34.47 30.35

Contribution 0 2.92 0 1.92 4.84 1.84 1.62

Goods & Services 21.00 30.20 16.05 12.93 80.18 30.56 26.90

Transfers & Subsidies 13.88 9.02 7.56 6.87 37.33 14.22 12.52

Capital 24.50 9.13 1.12 2.70 37.45 14.27 12.56

Domestic Debt 0 4.13 0.94 0 5.07 1.93 1.71

External Debt 0 0 0 7.10 7.10 2.71 2.38

Total 80.31 75.89 49.41 56.82 262.43 100.00 88.04


14

Out of the total allotment, personnel expenditure ranked the highest for the period under review

by 34.47 per cent. This was followed by goods & services which accounted for 30.56 per cent

of total allotment. Additionally, allotment in favor of domestic debt showed the lowest accounting

for 1.93 per cent. In the third and fourth quarters spending on personnel increased substantially

due to the payment of personnel related arrears, the bulk of which was for Pre-NTGL salary

arrears.

Transfers were primarily affected by sometimes impromptu and unforeseen circumstances such

as urgent requests for funds on domestic and foreign travel; inadequate budget space,

celebration and other state engagements. In addition, weak budgetary planning by line

ministries and agencies had over the period resulted in a number of reversals. Lack of capacity

for ministries and agencies’ financial comptrollers in handling budgetary documents has been

one of the major hurdles to achieving better outcomes.

There were internal, inter-agency and intra-sectoral budgetary transfers during the fiscal year of

which US$12.45 million was transferred from General Claims to the other four sectors to

accommodate emerging priorities that were unforeseen during the preparation stage of the

budget. Topping the recipient sectors was Social and Community Services with US$5.22 million

or 41.93 per cent, followed by Public and Administrative Services with US$5.04 million or 40.48

per cent of total transfers.

Reversals: Reversals are actions taken to withdraw ministries’/agencies’ allotments still in the

spending queue or have not been committed through vouchers for payment. Unlike budgetary

transfers reversals were done only within individual ministries’/agencies’ budgets to

accommodate other priority needs of the individual entities and, therefore, had no external

impact. During the fiscal year, total allotment reversal was US$3.07 million. In PASS total

reversal amounted to US$1.94 million; RLPS, US$.55 million or; SCSS, US$.47 million and

ESS, US$0.10 million. In PASS, the National Legislature was more frequent in reversing

allotments than any other ministry or agency; it reversed fourteen times amounting to US$0.29

million. While the Ministry of State effected only four reversals. The total of US$0.64 million was

the highest in the sector, accounting for 32.99%. This was also the highest amount across

Government. The Ministry of National Defense reversed the largest amount of US$0.41 million

in RLPS representing 74.54 per cent. In SCSS the Ministry of Education made the biggest

chunk of transfers in the tune of US$0.33 million.

15

Compared to other sectors, ministries and agencies in ESS did not make significant reversals;

the sectoral total was only US$0.10 million of the aggregate (US$3.07).

Most (82.09 per cent) of the reversals were made in the fourth quarter which was the last

quarter because spending entities wanted to maximize the utilization of their allotments in

priority areas before they lapsed. A few reversals were effected in the third quarter, accounting

for about 17.91 per cent of total reversals. Reversals were not only made from allotments in one

quarter and the amount utilized in the next quarter(s). In some cases reversals were transacted

from one month to another within the same quarter.

.

Table 10: Comparative Analysis of PRS Alignment for Two Fiscal Periods

Agency/Sector Approp.

‘07/’08

Approp.

‘08/’09

Variance %

Increase

Education 23.36 35.02 11.66 49.91

Health 16.96 23.45 6.49 38.26

Agriculture 3.78 6.70 2.92 77.24

Public Works 9.69 23.03 13.34 137.66

Water & Sanitation 0.51 0.85 0.34 66.66

Total 54.30 89.05 34.75 64.00


PRS Alignment: Pursuant to Government‘s determination to reduce poverty, and add value to

the lives of its citizenry by improving their standard of living, the budget continues to be “pro-

poor” driven, laying emphasis on substantial support for key poverty reduction ministries and

agencies as illustrated in table 9. Table 9 further shows the overall percentage increase in the

budgets of PRS entities from ‘fiscal year 2007/’08 to 2008/’09 reflecting a 64.0 increase over

prior year. Another observation showed a trend of the Education Sector as the lead PRS

institution with the highest appropriation, followed by the Health Sector.

16

Figure 7: PRS Alignment per two FY


3.3.2 Commitment/Cash Spending: Government’s spending on a commitment basis

(including encumbrance) for the fiscal year totaled US$250.50 million or 84 per cent of total

appropriation and 23.2 per cent more than prior fiscal year of 2007/08. Total cash expenditure

was US$231.45 million including cash expenditure whose commitments were made in prior

fiscal year of 2007/08.

Table 11: Government Fiscal Operation-Revenue & Expenditure Analysis FY2008/09 (In million US Dollars, unless otherwise stated) Amount Available to Spend 258.29 100.0

Commitment 250.50 97.0

Expenditure 246.95 95.6

CMC approved 202.00 78.2

EDP 37.62 14.6

Direct debit 7.33 2.8

Cash Expenditure 231.45 89.6

Variance

b/w amount available & commitment 7.79

b/w amount available & expenditure 11.34

b/w amount available & cash expend. 26.84 Source: Macro Fiscal Analysis Unit, Ministry of Finance.

17

3.3.3 Cash Flow Analysis:

Revenue projected for the fiscal year 2008/2009 was US$277.71 million. After adding

uncommitted balance of US$23.38 million from prior year, the cash flow forecast for the period

was US$301.09 million. In actual performance, Revenue through the fiscal year was US$234.91

million. When added to the US$23.38 million brought forward from prior period amounted to

US$258.29 as amount available to spend. This is lower than the appropriated Budget of

US$298.08 million by 15.4 per cent. As revenue intake became challenging, expenditures were

streamlined in keeping with the balanced cash-base budget policy. Uncommitted balance

carried forward to the next fiscal year (FY2009/10) stood at US$1.6 million.

18

3.4 Debt Management

Government of Liberia continued the payment of domestic arrears and updated the debt stock

on the Ministry of Finance’s website through the fiscal year. The Debt Management Unit

continued the compilation of data to inform the flows of Debt Sustainability Analysis (DSA) as

well as verifying the compliance of individual agreements with the Paris Club Agreed Minutes.

The Ministry of Finance received final reports from the international auditors, KPMG/Ghana on

the validity and/or non-validity of domestic debts vetted by the auditors as required by the

Domestic Debt Resolution Strategy (DDRS).

3.4.1 Domestic Debt

Debt service spending during the period was limited to payments to the domestic financial

institutions and other debt holders.

National Debt Management Strategy

The national debt management strategy was revised in June 2009. It is scheduled for

discussion and adoption by the cabinet in November 2009. In formulating this strategy, the

Government focused on three debt management objectives:

1. Complete the process of reducing and rationalizing Liberia’s external debt by the middle

of 2010, and continue to progress on resolving domestic debt as agreed to in the GOL’s

January 2007 Domestic Debt Resolution Strategy;

2. Rebuild the institutional and professional capacity to monitor debt levels, analyze debt

sustainability and risks, service debts in a timely and efficient manner, and otherwise

ensure that Liberia does not face debt servicing difficulties in the future; and

3. Build the foundation for Liberia to begin to contract limited amounts of highly

concessional targeted finance to support its development programs, and over the long-

term to re-enter international financial markets.

19

Domestic Debt Resolution Strategy

The GOL, with the assistance of an external auditor, carried out an extensive review of US$914

million in claims between June and December of 2006. Based on this review, each claim was

placed into one of three categories: “valid,” “contestable,” or “rejected.” Each category is

comprised of roughly one third of all claims.

Outcome of Domestic Debt Verification and Discounting (in millions of USD)

Undiscounted Discounted

Valid Contestable Rejected Total Valid

Financial Institutions 263.8 25.1 15.2 304.1 263.8

Other 40.1 292.4 277.2 609.8 8.4

Total 303.9 317.5 292.5 913.8 272.2

Source: Debt

Management Unit

Valid Claims: The GOL will settle the valid claims through a discounted payout, where the

discount depends on the size of the claim. With the exception of debt held by the CBL, which is

treated as a preferred creditor, all claims were discounted at a range of 0 percent for those

below US$1,000 to 87.6 percent for those above US$1 million.

Contestable Claims: Holders of contestable claims were invited to provide further

documentation to support their claims. Government will decide to settle them in the future on a

case-by-case basis, based on the recommendations of the external auditor.

Rejected Claims: Government does not plan on settling these claims, since there is little proof

of their validity. However, The table below shows 2008/2009 debt service payment (US$) to

domestic financial institutions and other debt holders.

20

INSTRUMENT/PAYEE INTEREST PAYMENT PRINCIPAL REPAYMENT TOTAL PAYMENT

A. FINANCIAL INSTITUTION

CBL CAPITAL NOTES 698,380.07 - 698,380.07

CBL LONG-TERM LOAN(1) 2,444,686.59 - 2,444,686.59

CBL LONG-TERM LOAN(2) 301,815.26 - 301,815.26

LBDI LONG-TERM LOAN 227,145.16 750,000.00 977,145.16

ECOBANK/GOL 29,554.84 173,228.35 202,783.19

ECOBANK/LEC 6,481.00 50,633.00 57,114.00

Sub Total 3,708,062.92 973,861.35 4,681,924.27

B. OTHER DEBT HOLDERS

LAC/EMPLOYEES - 235,616.00 235,616.00

MOWEH (LIB) LTD - 99,999.00 99,999.00

NICK TC-SCAN - 518,214.00 518,214.00

Dom. Debt-06 Outs. Claims - 588,360.70 588,360.70

Dom. Debt-08 Claims (Cls. 1-3) - 329,322.98 329,322.98

Dom. Debt-Re-issued Checks - 83,263.02 83,263.02

Sub Total 1,854,115.70 1,854,775.70

GRAND TOTAL DOM. DEBT PAID 3,708,062.92 2,827977.05 6,536,699.97

Source: Debt Management Unit, Ministry of Finance

21

3.4.2 External Debt and Arrears

As part of the efforts towards Liberia’s debt cancellation, the Ministry of Finance continued to

coordinate the validation and the compliance of individual agreements with the Paris Club

Agreed Minutes for Paris Club creditors. All Paris Club bilateral agreements have been signed

except Finland and Switzerland.

Between mid-2007 and mid-2009, through support of many key partners, Liberia made

substantial progress in normalizing and reducing its debt. Arrears to the major multilateral

institutions were cleared, and debts outstanding to several multilateral creditors were

significantly reduced. Liberia negotiated a generous restructuring of it bilateral debts with the

Paris Club, including immediate forgiveness of significant amounts of debt, and completed a

major debt buyback operation with its commercial creditors.

By June 2009, Liberia’s debt had been reduced by $3.2 billion, with approximately $1.7 billion

outstanding. The government is aiming for further reductions as it works to complete its debt

reduction strategy by mid 2010.

The GOL has a variety of other overdue external obligations, including amounts it owes to

international organizations and amounts some of its diplomatic missions owe to suppliers. The

GOL has reached settlements and agreements in several of these cases, but some remain

outstanding. During 2009/10 the Government will complete a comprehensive accounting of all of

these obligations, and develop a strategy to resolve them appropriately over time.

Commercial Debt Buyback

In April 2009, Liberia slashed its external debt by buying back 1.2 billion in outstanding

government debt from foreign commercial creditors at a discount of nearly 97 percent of its face

value; the steepest discount ever negotiated on developing countries commercial debts. About

97.5 percent of creditors participated, one of the highest rates of participation on record. The

buy-back was executed through the IDA Debt Reduction Facility. The $38 million needed for the

deal was provided by some of Liberia’s partners — the World Bank, Germany, Norway, the

United Kingdom, and the United States. The Government of Liberia made no financial

contribution towards the elimination of the debt. As of June 2009, Liberia’s remaining

commercial debt amounted to approximately $20 million.

22

External Debt Servicing Liberia is currently making payments to the International Development Association (IDA), the

only debt service obligation that we have during the interim period under the HIPC arrangement.

For the period January-December, it is estimated that a total of US$2.37m would have been

paid to the IDA. In order to avoid delays in payments, the World Bank has granted access of its

Client Connection website to the DMU. Agreements with other creditors are nearing completion

(see table below).

0

1000

2000

3000

4000

5000

6000

Jun-07 De c-08 Mar-09 Jun-09

Total Debt Stock

Quarters

Liberia's External Debt Profile (Millions of US$)

23

Jun-07 Dec-08 Mar-09 Jun-09

I. MULTILATERAL

IMF 809.2 858.0 832.8 875.5 World Bank 442.6 70.2 70.2 70.2 AfDB 271.3 28.4 27.6 28.6 BADEA 19.1 19.7 19.8 19.9 OFID 25.2 25.2 25.2 25.2 IFAD 25.1 26.2 25.4 26.6 ECOWAS 5.0 5.0 5.0 5.0 EIB/EU 21.7 19.4 18.5 19.7

Total Multilateral 1,619.2 1,052.1 1,024.5 1,070.7

II. BILATERAL

A. Paris Club

USA 393.6 33.0 33.0 33.0 Germany 387.3 36.1 34.8 36.6 Denmark 29.2 - - - Netherlands 42.7 44.0 42.1 44.7 Norway 43.3 36.5 3.8 4.0 Italy 77.4 79.7 - - Japan 128.2 174.1 161.1 164.7 France 223.4 220.8 210.0 223.0 Belgium 45.9 47.3 45.3 48.0 United Kingdom 50.6 50.6 50.6 5.1 Sweden 30.3 30.3 10.0 10.0 Finland 2.7 2.8 2.7 - Switzerland 2.7 2.7 2.7 2.7

Total Bilateral Paris Club 1,457.5 758.0 596.0 571.8

B. Non-Paris Club China 16.2 5.1 5.1 5.1 Saudi Arabia 27.2 27.2 27.2 27.2 Kuwait 11.3 12.2 11.5 11.7 Taiwan 75.1 75.1 75.1 75.1

Total Bilateral Non-Paris Club 129.8 119.5 118.9 119.1

Total Bilateral 1,587.3 877.6 715.0 690.8

III.COMMERCIAL A. Financial Institutions 1,340.8 1,148.0 1,148.0 20.5 B. Supplier's Credits 345.6 85.8 85.8 -

Total Commercial 1,686.4 1,233.8 1,233.8 20.5

TOTAL EXTERNAL DEBT 4,892.9 3,163.4 2,973.3 1,782.1

1. Figures take into account exchange rate fluctuations using IMF representative exchange rates for Sept. 30, 2009.

REPUBLIC OF LIBERIA

National Debt Management Unit

Summary of Liberia's External Debt Profile (in US$ millions) As at September 30, 2009

24

2.5 Way Forward: The balanced cash-base budget policy gives the Government no

flexibility to do intra-year smoothening of its expenditure amid the limited fiscal space through

internal and external borrowing. To this end, the government is moving swiftly to finalize its debt

forgiveness agreements, and to deepen public financial management and other reforms

necessary to reach the HIPC completion point in mid 2010.The government is also pursuing a

major overhaul of its tax policy and investment regimes to ensure that Liberia is attractive to

foreign direct investments in its key export sectors, and that these are of long-term stainable

benefit to Liberia. It is expected that with all the necessary institutions put in place and a solid

Debt Sustainability Analysis, significant fiscal space will be opened up and maintained once the

external debt overhang is eliminated at completion point.

25

3.0 Appendixes 3.1 Government Fiscal Operations – Revenue (In million US, Dollars)

1ST HALF 2ND HALF

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER FY-08/09 JANUARY FEBRUAY MARCH APRIL MAY JUNE FY-08/09 ACTUAL 08/09

PROJECTION-

08/09 VARIANCE

% OF

VARIANCE

TOTAL REVENUE 19,551,812 12,966,583 13,660,723 16,480,559 14,059,649 16,176,533 92,895,859 23,742,425 24,094,118 26,907,117 18,022,743 17,313,521 31,929,422 142,009,347 234,905,206 277,707,233 (42,802,027) -15%

TAX REVENUE 18,842,353 12,318,099 13,117,397 15,737,142 12,712,893 15,454,873 88,182,756 19,500,067 11,650,353 21,270,028 16,510,942 13,723,093 18,911,312 101,565,794 189,748,550 171,667,886 18,080,665 11%

TAXES ON INCOME & PROFITS 6,888,097 2,931,793 3,439,703 6,199,111 2,865,365 4,170,161 26,494,230 6,831,184 3,220,526 11,869,400 6,618,679 3,777,386 7,019,071 39,336,248 65,830,477 54,458,933 11,371,544 21%

IND. TAXES ON INCOME & PROFITS 3,897,615 2,309,238 2,943,844 3,383,722 2,292,049 3,263,032 18,089,499 3,978,289 2,723,783 2,022,834 2,921,430 3,123,943 4,293,362.40 19,063,641 37,153,140 20,165,435 16,987,705 84%

BUSINESS PROFIT TAXES 2,928,252 584,435 333,582 2,789,332 486,599 635,150 7,757,350 2,843,079 366,140 9,802,804 3,598,313 610,800 236,557 17,457,692 25,215,042 27,893,498 (2,678,456) -10%

UNALLOCAB. INCOME & PROF. TAXES 62,230 38,120 162,277 26,057 86,718 271,979 647,381 9,817 130,604 43,762 98,936 42,643 2,489,152 2,814,915 3,462,296 6,400,000 (2,937,704) -46%

TAXES ON IMMOVABLE PROPERTIES 117,706 92,322 123,932 114,011 66,096 69,134 583,200 69,212 162,624 175,545 112,899 75,456 161,249 756,985 1,340,186 1,757,430 (417,244) -24%

DOMESTIC TAXES ON GOODS AND SERVICES 2,059,644 1,850,212 2,045,933 1,512,101 1,444,162 1,339,303 10,251,355 1,948,592 1,833,033 1,809,482 1,698,555 1,845,519 1,647,487 10,782,668 21,034,022 22,198,365 (1,164,343) -5%

EXCISE TAXES 364,619 445,750 454,764 396,383 280,744 482,781 2,425,041 377,429 364,198 423,745 430,823 527,861 467,514 2,591,569 5,016,610 3,884,665 1,131,946 29%

TAXES ON SPECIFIC SERVICES 60 156 31,629 52 37 31,934 - - 39,046 23,643 70,281 132,971 164,905 1,525,290 (1,360,385) -89%

BUSINESS & PROFESSIONAL LICENSES 804,954 403,579 651,624 249,566 345,639 95,345 2,550,707 341,076 478,011 328,936 256,853 268,293 230,006 1,903,175 4,453,883 3,336,698 1,117,185 33%

MOTOR VEHICLE TAXES 199,091 161,521 189,034 117,768 89,042 49,746 806,201 234,874 252,204 314,697 216,570 152,261 183,130 1,353,736 2,159,937 3,501,724 (1,341,787) -38%

MARITIME REVENUE 1,898,821 444,694 429,162 511,750 1,321,496 1,779,659 6,385,582 2,526,953 646,641 306,248 458,321 600,886 2,072,820 6,611,869 12,997,451 16,027,500 (3,030,049) -19%

TAXES ON INT'L TRADE AND TRANS. 7,878,085 6,999,077 7,078,668 7,400,170 7,015,774 8,096,615 44,468,389 8,124,127 5,787,529 7,109,353 7,622,487 7,423,845 8,010,684 44,078,024 88,546,414 77,225,650 11,320,764 15%

CUSTOMS DUTIES-ALL IMPORTS 7,128,609 6,491,956 6,320,948 6,741,493 6,361,302 7,414,333 40,458,641 7,122,688 5,186,766 6,133,373 6,682,213 6,557,608 7,152,337 38,834,985 79,293,626 69,620,000 9,673,626 14%

CUSTOMS SUR-CHARGE 618,562 421,403 711,998 608,464 607,616 617,094 3,585,136 877,619 540,535 909,003 855,705 756,938 784,951 4,724,751 8,309,887 6,621,950 1,687,937 0

CUSTOM DUTIES-EXPORT 130,914 85,718 45,722 50,214 46,856 65,189 424,613 123,820 60,227 66,978 84,568 109,298 73,396.34 518,288 942,901 983,700 (40,799) -4%

NON-TAX REVENUE 709,459 648,485 543,326 743,416 1,346,756 596,661 4,588,103 4,242,357 431,692 5,637,089 1,511,802 3,590,429 1,017,416 16,430,785 21,018,888 64,939,355 (43,920,467) -68%

ENTERPRENEUR AND PROPERTY INCOME OF GOL 18,961 4,158 - 788,283 311 811,712 687,980 56,980 188,649 10,035 205,876 170,164 1,319,685 2,131,397 24,479,301 (22,347,904) -91%

GOV'T PROPERTY INCOME 18,961 3,918 788,283 311 811,472 687,980 56,980 89,631 10,035 55,876 170,164 1,070,666 1,882,139 11,108,104 (9,225,965) -83%

SALES OF PROPERTIES OWNED BY GOVERNMENT - - - 86,112 (86,112) -100%

DIVIDENDS - 240 - 240 2,910,576 - 99,018 150,000 40,008 3,199,602 3,199,842 7,267,072 (4,067,230) -56%

STUMPAGE & RELATED CHARGES 55,182 82,813 131,152 51,693 56,546 50,617 428,003 21,319 7,432 45,141 38,401 21,399 111,721 245,412 673,415 6,104,127 (5,430,712) -89%

FEES & CHARGES 346,891 427,385 341,728 481,308 475,768 437,535 2,510,615 554,599 333,472 361,646 280,891 293,801 645,161.61 2,469,571 4,980,185.59 5,285,154.00 (304,968) -6%

ADMINISTRATIVE SERVICE CHARGES 126,017 223,566 201,402 317,138 287,860 225,439 1,381,422 323,371 224,330 150,876 127,303 162,951 488,891.45 1,477,723 2,859,144.51 3,668,154.00 (809,009) -22%

FINES AND FORFEITS 220,874 203,818 140,326 164,170 187,908 212,096 1,129,193 231,228 109,142 210,770 153,588 130,850 156,270.16 991,848 2,121,041.08 1,617,000.00 504,041 31%

EXTRAORDINARY REVENUE 288,428 138,287 66,288 210,416 26,159 108,198 837,776 67,883 33,807 5,041,654 1,182,474 3,069,353 50,364.88 9,445,536 10,283,312.05 35,174,900.00 (24,891,588) -71%

SOCIAL DEVELOPMENT FUND 125,000 125,000 - - - 125,000.00 13,200,000.00 (13,075,000) -99%

TOTAL B/4 GRANT & CONTIGENCY 19,551,812 12,966,583 13,660,723 16,480,559 14,059,649 16,176,533 92,895,859 23,742,425 12,082,044 26,907,117 18,022,743 17,313,521 19,928,728 117,996,579 210,892,438 249,807,233 (38,914,795) -15%

GRANTS - - 12,012,074 11,500,740.00 23,512,814 23,512,814.00 23,512,814

TOTAL B/4 CONTIGENCY - - 234,405,252 249,807,233 (15,401,981) -6% CONTINGENT REVENUE - - 499,954.00 499,954 499,954 27,900,000 (27,400,046) -98%

TOTAL (INCLUDING GRANT & CONTIGENCY) 19,551,812 12,966,583 13,660,723 16,480,559 14,059,649 16,176,533 92,895,859 23,742,425 24,094,118 26,907,117 18,022,743 17,313,521 31,929,421.97 142,009,347 234,905,206 277,707,233 (42,802,027) -15%

TAX KIND

FIRST SEMESTER-FISCAL YEAR 08/09 SECOND SEMESTER-FISCAL YEAR 08/09 FISCAL YEAR 2008/2009 REVENUE PERFORMANCE ANALYSIS

26

3.2 Government Fiscal Summary Fiscal year 2008/09 (In million USD, unless otherwise stated)

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

Cumulative

FY2008/09

Total Domestic Revenue and Grants 19.55 12.97 13.66 16.48 14.06 16.18 23.74 24.09 26.91 18.02 17.31 31.93 258.29

Domestic Revenue 19.55 12.97 13.66 16.48 14.06 16.05 23.74 12.08 26.91 18.02 17.31 20.43 211.27

Total Tax Revenue 19.13 12.46 13.18 15.95 12.74 15.56 19.55 11.74 21.31 16.69 13.79 18.96 191.07

Taxes on International Trade and Transactions 7.88 7.00 7.08 7.40 7.02 8.10 8.12 5.79 7.11 7.62 7.42 8.01 88.55

Taxes on Income and Profits 6.89 2.93 3.44 6.20 2.87 4.17 6.83 3.22 11.87 6.62 3.78 7.02 65.83

Taxes on Immovable Properties 0.12 0.09 0.12 0.11 0.07 0.07 0.07 0.22 0.18 0.11 0.08 0.16 1.40

Taxes on Goods and Services 3.96 2.29 2.48 2.02 2.77 3.12 4.46 2.48 2.12 2.16 2.45 3.72 34.02

Of which: maritime revenue 1.90 0.44 0.43 0.51 1.32 1.78 2.51 0.65 0.31 0.46 0.60 2.07 12.98

Other 0.29 0.14 0.07 0.21 0.03 0.11 0.07 0.03 0.04 0.18 0.07 0.05 1.28

Of which: overdue taxes 0.29 0.14 0.07 0.21 0.03 0.11 0.07 0.03 0.04 0.46 0.07 0.05 1.56

Total Non-Tax Revenue 0.42 0.51 0.48 0.53 1.32 0.49 4.19 0.34 5.60 1.33 3.52 1.47 20.19

Of which: stumpage and related charges 0.06 0.08 0.13 0.05 0.06 0.05 0.02 0.01 0.05 0.04 0.02 0.11 0.67

Extraordinary Revenue - - - - - - - - - 1.00 3.00 - 4.00

Of which: LTA/GSM License Fees - - - - - - - - - 1.00 3.00 - 4.00

Of which: Mittal One-Time - - - - - - - - - - - - -

Grants - - - - - 0.13 - 12.01 - - - 11.50 23.64

Revenue from prior year 23.38 23.38 Total Expenditure and Net Lending

(Commitment Basis) - 25.35 22.49 21.66 17.16 22.32 19.67 17.86 21.16 20.85 18.70 43.26 250.50

Current Expenditure - 24.40 21.66 17.96 16.00 20.63 16.92 16.56 15.22 16.11 16.07 35.17 216.72

Wages and Salaries - 13.07 7.70 7.91 7.09 8.73 7.90 8.26 7.24 7.25 7.32 8.98 91.45

Goods and Services - 5.43 7.52 6.21 5.40 6.06 5.07 5.93 4.62 6.05 4.20 16.90 73.39

Transfers and Subsidies - 5.86 5.10 3.28 2.80 3.19 3.51 2.10 2.66 2.34 3.13 6.88 40.85

Capital Expenditure - 0.95 0.83 3.70 1.16 1.69 2.75 1.30 5.94 4.74 2.63 8.09 33.78

Domestic & Foreign Debts - 0.04 1.34 0.56 0.72 2.65 0.45 0.27 0.70 0.47 1.42 2.42 11.03

External Debts - - - - - - - - - - - - -

Domestic Debts - 0.04 1.34 0.56 0.72 2.65 0.45 0.27 0.70 0.47 1.42 2.42 11.03 Overall surplus or deficit (Commitment basis

including grants) 19.55 (12.38) (8.83) (5.18) (3.10) (6.15) 4.07 6.24 5.74 (2.83) (1.39) (11.33) 7.79

Total expenditure and net lending (cash basis) 17.29 16.21 23.43 21.74 20.81 18.21 16.78 13.99 18.66 27.02 16.15 21.17 231.45

Current Expenditure 12.66 15.39 23.15 18.73 19.50 16.60 15.25 11.41 14.92 19.48 13.39 19.63 200.10

Wages and Salaries 2.53 4.90 7.09 5.14 7.04 4.01 4.01 4.15 2.57 10.11 4.36 4.59 60.49

Goods and Services 4.40 6.07 7.60 5.01 8.16 5.43 6.65 2.87 6.94 4.21 3.74 6.18 67.27

Transfers and Subsidies 4.77 3.99 8.02 8.16 3.71 6.27 4.08 3.99 4.99 4.59 5.28 7.38 65.24

of which: County development funds - - - - - - - - - - - - -

Capital Expenditure 4.63 0.83 0.28 3.00 1.31 1.61 1.53 2.58 3.74 7.54 2.76 1.55 31.36

Domestic & Foreign Debts 0.95 0.43 0.44 0.42 0.58 0.89 0.51 0.39 0.42 0.57 0.01 1.48 7.10

External Debts - - - - - - - - - - - - -

Domestic Debts 0.95 0.43 0.44 0.42 0.58 0.89 0.51 0.39 0.42 0.57 0.01 1.48 7.10

Grants - - - - - - - - - - - - -

Overall surplus or deficit (cash basis including

grants) 2.26 (3.25) (9.77) (5.26) (6.75) (2.03) 6.96 10.11 8.25 (8.99) 1.16 10.76 26.83

Domestic Financing - - - - - - - - - - - - -

Comercial bank (net) - - - - - - - - - - - - -

Central Bank (net) - - - - - - - - - - - - -

Other Domestic - - - - - - - - - - - - -

Externally Financing - - - - - - - - - - - - -

Loans - - - - - - - - - - - - -

Amortization (-) - - - - - - - - - - - - -

Statistical Discrepancies/Unidentified Financing - - - - - - - - - - - - -

NOTE: Expenditure reported in July '08 were splt-over expenditure from FY'07/'08

27

3.3 Government Fiscal Operation by Functional Classification - Fiscal year 2008/09 (In million USD, unless otherwise stated)

MINISTRY / AGENCY ADJUSTED ADJUSTED CASH BALANCE BALANCE

PUBLIC ADMINISTRATIVE SERVICES SECTOR APPROP. ALLOTMENT CUMULATIVE EXPENDITURE COMMIT. Vs CASH APPRO. Vs CASH

NATIONAL LEGISLATURE 18,358,777.00 18,358,758.00 18,310,527.00 18,300,527.41 9,999.59 58,249.59 MINISTRY OF STATE 8,425,345.00 8,425,345.00 8,294,754.00 8,269,650.00 25,104.00 155,695.00 VICE PRESIDENT OFFICE 1,349,408.00 1,349,408.00 1,301,764.00 1,275,002.00 26,762.00 74,406.00 BUDGET BUREAU 1,557,444.00 1,557,444.00 1,336,371.29 1,310,245.00 26,126.29 247,199.00 MINISTRY OF FINANCE 10,400,140.00 10,400,140.00 9,111,881.00 8,811,495.67 300,385.33 1,588,644.33 MIN. OF INTERNAL AFFAIRS 8,361,923.00 8,361,922.00 8,283,311.50 8,243,210.00 40,101.50 118,713.00 MINISTRY OF PLANNING 1,107,990.00 1,107,990.00 1,107,988.00 1,085,875.00 22,113.00 22,115.00 CIVIL SERVICE AGENCY 1,835,020.00 1,835,020.00 1,822,341.00 1,802,200.00 20,141.00 32,820.00 GENERAL SERVICES AGENCY 1,420,306.00 1,420,306.00 1,405,825.00 1,405,210.00 615.00 15,096.00 MINISTRY OF INFORMATION 1,549,893.00 1,549,893.00 1,461,934.00 1,431,933.44 30,000.56 117,959.56 GENERAL AUDITING COMMISSION 3,274,600.00 3,274,600.00 3,137,194.00 3,100,085.00 37,109.00 174,515.00 MIN. OF FOREIGN AFFAIRS 8,458,397.00 8,458,397.00 7,362,195.00 7,324,787.50 37,407.50 1,133,609.50 L I P A 645,701.00 645,701.00 599,278.00 587,264.00 12,014.00 58,437.00 NATIONAL ELECTIONS COMMISSION 3,347,601.00 3,347,601.00 3,347,601.00 3,325,435.00 22,166.00 22,166.00 L I S G I S 3,002,600.00 3,002,600.00 2,844,733.00 2,840,258.00 4,475.00 162,342.00 BUREAU OF STATE ENTERPRISE 73,934.00 73,934.00 72,913.00 59,796.85 13,116.15 14,137.15 NATIONAL INVESTMENT COMMISSION 939,900.00 939,900.00 939,369.00 926,416.14 12,952.86 13,483.86 GOVERNANCE COMMISSION 789,800.00 789,800.00 770,675.00 761,540.00 9,135.00 28,260.00 PUBLIC PROCUMENT AND CONCESSION 778,000.00 778,000.00 755,627.00 735,600.00 20,027.00 42,400.00 C N D R A 369,079.00 369,079.00 350,686.00 338,650.00 12,036.00 30,429.00 ENVIRONMENTAL PROTECTION AGENCY 599,800.00 599,800.00 563,411.00 559,452.00 3,959.00 40,348.00 LIBERIA BROADCASTING SYSTEM 700,000.00 700,000.00 694,029.00 679,100.00 14,929.00 20,900.00 TRUTH AND RECONCILIATION COMM 1,150,000.00 1,150,000.00 1,150,000.00 1,150,000.00 - - MANO RIVER UNION 225,000.00 225,000.00 225,000.00 225,000.00 - - ANTI- CORRUPTION COMMISSION 800,000.00 800,000.00 800,000.00 800,000.00 - -

SUB TOTAL 79,520,658.00 79,520,638.00 76,049,407.79 75,348,733.00 700,674.79 4,171,925.00

RULE OF LAW & PUBLIC SAFETY -

THE JUDICIARY 10,043,214.00 10,043,214.00 10,042,177.00 10,042,177.00 - 1,037.00

MINISTRY OF JUSTICE 16,325,796.00 15,751,385.00 15,470,127.08 15,463,433.05 6,694.03 862,362.95 MINISTRY OF NATIONAL DEFENSE 6,238,515.00 6,228,393.00 5,911,643.00 5,894,643.00 17,000.00 343,872.00

N S A 1,295,460.00 1,288,279.00 1,288,199.00 1,288,199.00 - 7,261.00 S S S 2,684,800.00 2,684,800.00 2,680,369.00 2,665,359.00 15,010.00 19,441.00 MINISTRY OF NATIONAL SECURITY 756,800.00 756,050.00 755,825.00 739,785.00 16,040.00 17,015.00 N B I 433,600.00 433,600.00 425,241.00 410,230.00 15,011.00 23,370.00 HUMAN RIGHTS COMMISSION 296,600.00 252,849.00 243,746.00 243,746.00 - 52,854.00

SUB TOTAL 38,074,785.00 37,438,570.00 36,817,327.08 36,747,572.05 69,755.03 1,327,212.95

COMMITMENT

28



SOCIAL & COMMUNITY SERVICES SECTOR APPROP. ALLOTMENT CUMULATIVE EXPENDITURE COMMIT. Vs CASH APPRO. Vs CASH

MINISTRY OF EDUCATION / CENTRAL 24,001,536.00 23,370,753.00 22,649,763.00 21,806,708.76 843,054.24 2,194,827.24 UNIVERSITY OF LIBERIA 4,569,601.00 4,569,601.00 4,569,601.00 4,533,500.00 36,101.00 36,101.00 MONROVIA CONSOLIDATED SCHOOL SYS 2,058,950.00 2,053,850.00 2,044,689.00 2,024,400.00 20,289.00 34,550.00 BOOKER WASHINGTON INSTITUTION 1,323,881.00 1,323,881.00 1,323,879.00 1,320,496.00 3,383.00 3,385.00 FORESTRY TRAINING INSTITUTION 61,357.00 61,357.00 61,357.00 50,000.00 11,357.00 11,357.00 CUTTINGTON UNIVERSITY 357,260.00 357,260.00 357,260.00 335,000.00 22,260.00 22,260.00 NATIONAL COMM. ON HIGHER EDUCATION 1,181,231.00 244,208.00 243,009.00 241,195.00 1,814.00 940,036.00 W V S TUBMAN TECHNICAL COLLEGE 1,043,920.00 1,043,920.00 1,043,920.00 1,043,920.00 - - WEST AFRICAN EXAMINATION COUNCIL 252,182.00 252,182.00 246,807.00 225,600.00 21,207.00 26,582.00 EDUCATION SECTOR TOTAL 34,849,918.00 33,277,012.00 32,540,285.00 31,580,819.76 959,465.24 3,269,098.24 MINISTRY OF HEALTH & WELFARE 16,846,213.00 15,437,213.00 13,092,040.00 13,049,000.00 43,040.00 3,797,213.00 J F K MEDICAL CENTER 5,721,736.00 5,521,736.00 5,161,591.00 5,150,465.00 11,126.00 571,271.00 PHEBE HOSPITAL 391,637.00 391,637.00 391,637.00 391,637.00 - - L I B R 364,355.00 363,380.00 347,472.00 333,435.00 14,037.00 30,920.00 MIN. OF YOUTH & SPORTS 4,263,031.00 4,023,031.00 3,855,344.00 3,835,246.00 20,098.00 427,785.00 N F A A 79,940.00 79,940.00 77,730.00 77,730.00 - 2,210.00 A I T B 264,052.00 264,052.00 251,329.00 251,329.00 - 12,723.00 MINISTRY OF GENDER & DEV 1,090,891.00 1,090,891.00 1,049,234.00 1,004,723.78 44,510.22 86,167.22 MONROVIA CITY CORPORATION 980,978.00 980,978.00 980,962.00 958,007.05 22,954.95 22,970.95 L R R R C 615,800.00 615,800.00 613,275.00 600,108.00 13,167.00 15,692.00 N C D D R R 1,351,893.00 1,351,893.00 1,350,893.00 1,332,273.41 18,619.59 19,619.59 NATIONAL COMMISSION ON DISABILITIES 250,000.00 247,919.00 247,718.00 240,700.00 7,018.00 9,300.00 NATIONAL VETERAN BUREAU 293,728.00 293,728.00 272,366.00 264,355.00 8,011.00 29,373.00 LIB. AGENCY FOR COMMUNITY EMPOWERMENT. 417,682.00 417,682.00 417,682.00 405,550.00 12,132.00 12,132.00 NATIONAL HOUSING AUTHORITY 490,250.00 490,250.00 487,522.00 485,352.23 2,169.77 4,897.77

SUB TOTAL 33,422,186.00 31,570,130.00 28,596,795.00 28,379,911.47 216,883.53 5,042,274.53

ECONOMIC SERVICES SECTOR

MINISTRY OF AGRICULTURE 6,692,791.00 5,408,359.00 4,988,008.47 4,596,008.47 392,000.00 2,096,782.53 MINISTRY OF LANDS & MINES 3,743,726.00 3,476,119.00 3,144,828.00 3,120,600.00 24,228.00 623,126.00 MINISTRY OF COMMERCE 1,507,357.00 1,476,977.00 1,440,971.00 1,428,800.00 12,171.00 78,557.00 MINISTRY OF POSTAL AFFAIRS 1,660,743.00 1,657,401.00 1,648,872.00 1,628,767.00 20,105.00 31,976.00 C D A 168,536.00 168,536.00 167,715.00 167,715.00 - 821.00 MINISTRY OF TRANSPORT 1,474,555.00 1,474,555.00 1,427,095.00 1,407,005.00 20,090.00 67,550.00 FORESTRY DEVELOPMENT AUTHORITY 3,288,725.00 3,072,790.00 3,069,487.00 3,042,310.00 27,177.00 246,415.00 MINISTRY OF LABOUR 2,375,421.00 2,372,171.00 2,035,948.00 2,005,730.00 30,218.00 369,691.00 MINISTRY OF PUBLIC WORKS 22,969,480.00 18,163,054.00 17,040,004.00 16,475,762.00 564,242.00 6,493,718.00 LIBERIA INDUSTRIAL PROPERTY SYSTEM 29,373.00 29,373.00 28,680.00 12,411.00 16,269.00 16,962.00 LIBERIA COPY RIGHT OFFICE 70,000.00 70,000.00 66,517.79 66,517.79 0.00 3,482.21 SUB TOTAL 43,980,707.00 37,369,335.00 35,058,126.26 33,951,626.26 1,106,500.00 10,029,080.74

COMMITMENT

29



PUBLIC CORPORATIONS APPROP. ALLOTMENT CUMULATIVE EXPENDITURE COMMIT. Vs CASH APPRO. Vs CASHLIBERIA WATER & SEWER CORP 785,000.00 785,000.00 785,000.00 785,000.00 - - L P M C 500,000.00 500,000.00 498,162.00 483,284.55 14,877.45 16,715.45 LIBERIA ELECTRICITY CORPORATION 3,105,703.00 3,105,703.00 3,103,413.00 3,047,240.00 56,173.00 58,463.00 MONROVIA TRANSIT AUTHORITY 2,280,512.00 1,480,512.00 1,480,070.00 1,426,392.00 53,678.00 854,120.00 LIBERIA TELECOMMUNICATION CORPORATION 1,400,000.00 1,400,000.00 1,400,000.00 1,375,000.00 25,000.00 25,000.00 NATIONAL HOUSING & SAVING BANK 50,000.00 50,000.00 50,000.00 34,890.46 15,109.54 15,109.54 LIBERIA INDUST. FREEZONE AUTHORITY 100,000.00 100,000.00 99,841.00 64,106.53 35,734.47 35,893.47 LIBERIA - LIBYAN HOLDING COMPANY 97,909.00 97,909.00 97,909.00 97,909.00 - - N I C O L 118,746.00 118,746.00 114,371.00 104,238.00 10,133.00 14,508.00 LIBERIA RUBBER DEVELOPMENT AUTHORITY 63,641.00 63,641.00 63,641.00 63,641.00 - -

LIBERIA NATIONAL LOTTERY 50,000.00 50,000.00 50,000.00 50,000.00 - -

SUB TOTAL 8,551,511.00 7,751,511.00 7,742,407.00 7,531,701.54 210,705.46 1,019,809.46

- OTHER GENERAL CLAIMS (BASE BUDGET) 5-5-01-00 -

BASIC SALARY (GUTHRIE EMPLOYEES) 180,000.00 180,000.00 180,000.00 180,000.00 - - MINIMUM SALARY ADJUSTMENT FUND 14,308.00 14,308.00 14,308.00 14,308.00 - - ALLOWANCE EQUALIZATION FUND - TECHNICAL STAFF 8,297.00 - - - - 8,297.00 PENSION & SEVERANCE 6,001,227.00 5,955,356.00 5,955,356.00 5,935,310.00 20,046.00 65,917.00 BENEFIT FOR FORMER OFFICIALS 41,256.00 30,000.00 30,000.00 28,000.00 2,000.00 13,256.00 GOL CONTRIBUTION TO NSS&WC 500,000.00 500,000.00 500,000.00 466,000.00 34,000.00 34,000.00 SUB TOTAL 6,745,088.00 6,679,664.00 6,679,664.00 6,623,618.00 56,046.00 121,470.00

REFUGEE REPATRIATION & RELATED COSTS 233,750.00 - - - 233,750.00 UNMIL AIRLIFT 370,000.00 370,000.00 313,960.00 313,960.00 - 56,040.00 FOOD & CATERING (RICE) 65,000.00 65,000.00 65,000.00 65,000.00 - - EXTRACTIVE INDUSTRY TRANSPARENCY INITIATIVE 100,000.00 100,000.00 99,999.00 99,999.00 - 1.00 COUNTY DEVELOPMENT FUND 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 - - SUB TOTAL 3,768,750.00 3,535,000.00 3,478,959.00 3,478,959.00 - 289,791.00

MITTAL COMMUNITY DEVELOPMENT FUND - NIMBA COUNTY 3,497,165.00 1,997,186.00 1,997,186.00 1,997,186.00 - 1,499,979.00

BONG COUNTY 1,165,754.00 665,747.00 665,747.00 665,747.00 - 500,007.00 GRAND BASSA COUNTY 2,331,507.00 1,331,493.00 1,331,493.00 1,331,493.00 - 1,000,014.00 SUB TOTAL 6,994,426.00 3,994,426.00 3,994,426.00 3,994,426.00 - 3,000,000.00 OTHER COMMUNITY DEVELOPMENT FUND -

BONG MINES COMMUNITY DEV FUND 3,000,000.00 - - - 3,000,000.00

WESTERN CLUSTER COMMUNITY DEV FUND 3,000,000.00 - - - 3,000,000.00

COMMUNITY DEVELOPMENT FUND - FOREST CONCESSION 8,085,000.00 - - - 8,085,000.00 SUB TOTAL 14,085,000.00 - - - - 14,085,000.00

LAND SURFACE RENTAL TO COUNTIES - FIRESTONE AGGREEMENT 240,000.00 240,000.00 160,800.00 160,800.00 - 79,200.00 PUBLIC UTILITIES 963,823.00 963,823.00 820,138.00 820,138.00 - 143,685.00 TRADE LEVY / ECOWAS 4,481,000.00 4,384,021.00 4,384,021.00 4,380,000.00 4,021.00 101,000.00 CELEBRATIONS, COMMEMORATION & STATE VISIT 217,260.00 217,260.00 217,260.00 217,260.00 - - ELECTORAL BOUNDARY DELIMITATION & DELINEATION 400,000.00 - - - - 400,000.00 CONTINGENCY RESERVED FUND 1,196,412.00 1,013,690.00 1,011,663.00 1,011,663.00 - 184,749.00 NATIONAL DISASTER RELHEF FUND 275,000.00 275,000.00 275,000.00 275,000.00 - - SUB TOTAL 7,773,495.00 7,093,794.00 6,868,882.00 6,864,861.00 4,021.00 908,634.00

COMMITMENT

30



APPROP. ALLOTMENT CUMULATIVE EXPENDITURE COMMIT. Vs CASH APPRO. Vs CASH

CENTRAL BANK OF LIBERIA / C B L CHARGES 1,918,000.00 1,918,000.00 1,897,861.00 1,897,861.00 - 20,139.00

PRE- N T G L SALARY ARREARS 1,127,510.00 1,127,510.00 1,098,431.00 1,098,431.00 - 29,079.00

PAYMENT TO OTHER DEBT HOLDERS 4,274,079.00 4,274,079.00 4,274,079.00 4,076,360.91 197,718.09 197,718.09

SUB TOTAL 7,319,589.00 7,319,589.00 7,270,371.00 7,072,652.91 197,718.09 246,936.09

EXTERNAL DEBT 764,182.00 764,182.00 764,182.00 654,080.00 110,102.00 110,102.00

SUB TOTAL 764,182.00 764,182.00 764,182.00 654,080.00 110,102.00 110,102.00

STAFF DEVELOPMENT & TRAINING (UNIDEP) 15,000.00 15,000.00 15,000.00 15,000.00 - -

STIPENDS FOR FINANCIAL MANAGEMENT TRAINEES 92,000.00 89,600.00 89,600.00 89,600.00 - 2,400.00

RICE STABILIZATION FUND 496,276.00 496,276.00 - - 496,276.00

PROTECTION OF INTELLECTUAL RIGHTS FOR LIBERIAN ARTISTS 100,000.00 100,000.00 100,000.00 87,000.00 13,000.00 13,000.00

SUB TOTAL 703,276.00 700,876.00 204,600.00 191,600.00 13,000.00 511,676.00

RENOVATION / EXECUTIVE MANSION 825,000.00 45,000.00 45,000.00 45,000.00 - 780,000.00

SUB TOTAL 825,000.00 45,000.00 45,000.00 45,000.00 - 780,000.00

GENERAL CLAIMS (BASE BUDGET ) TOTAL 48,978,806.00 30,132,531.00 29,306,084.00 28,925,196.91 380,887.09 20,053,609.09

CONTINGENT BUDGET / 5-5-02-00 -

PENSION & SEVERANCE 485,000.00 485,000.00 485,000.00 485,000.00 - -

COMMUNITY DEVELOPMENT FUND - FOREST CONCESSION 3,300,000.00 - - - 3,300,000.00

CELEBRATIONS, COMMEMORATIONS & STATE VISIT 238,260.00 204,000.00 200,000.00 200,000.00 - 38,260.00

CONTINGENCY RESERVED FUND - - - - -

PUBLIC UTILITIES 4,297.00 4,297.00 - - 4,297.00

FOREIGN MISSION ARREARS 240,784.00 - - 240,784.00

PRE- N T G L SALARY ARREARS 1,265,881.00 1,204,569.00 1,204,569.00 1,204,569.00 - 61,312.00

C B L CHARGES 250,000.00 - - - 250,000.00

PAYMENT TO OTHER DEBT HOLDERS 2,800,000.00 2,800,000.00 2,339,062.00 2,339,062.00 - 460,938.00

EXTERNAL DEBT 425,000.00 158,323.00 158,323.00 158,323.00 - 266,677.00

RENOVATION / EXECUTIVE MANSION 1,700,000.00 - - - 1,700,000.00

CONTINGENT BUDGET TOTAL 10,709,222.00 4,856,189.00 4,386,954.00 4,386,954.00 - 6,322,268.00

GEN CLAIMS & CONTINGENT BUDGET GRAND TOTAL 59,688,028.00 34,988,720.00 33,693,038.00 33,312,150.91 380,887.09 26,375,877.09

FISCAL BUDGET 2008/2009 GRAND TOTAL 298,087,793.00 261,915,916.00 250,497,386.13 246,852,514.99 4,848,494.87 41,206,197.26

COMMITMENT

1

REPUBLIC OF LIBERIA

ANNUAL FISCAL OUTTURN FY2009/10

MINISTRY OF FINANCE

OCTOBER 2010

2

CONTENTS

Executive Summary .......................................................................................................................................................................................... 4

1. Public Finance Performance .............................................................................................................................................................. 5

1.1. Original budget appropriations .............................................................................................................................................. 5

1.2. Revenue .............................................................................................................................................................................................. 7

1.3. Expenditure ...................................................................................................................................................................................... 9

1.3.1. Appropriation & Allotment ............................................................................................................................................ 9

1.3.2. Commitment........................................................................................................................................................................ 11

1.3.3. Cash Expenditure .............................................................................................................................................................. 12

1.3.4. Expenditure analysis ...................................................................................................................................................... 13

1.3.4.1. Payroll ............................................................................................................................................................................... 16

1.4. Cash flow analysis....................................................................................................................................................................... 26

1.4.1. Bank accounts .......................................................................................................................................................................... 27

1.5. Debt stock and service payments ....................................................................................................................................... 30

1.5.1. Domestic Debt .................................................................................................................................................................... 30

1.5.2. External Debt ...................................................................................................................................................................... 31

2. Recent Macroeconomic developments & prospects ........................................................................................................... 34

3. Government Fiscal Policy ................................................................................................................................................................. 36

3.1. Recent Fiscal Policy .................................................................................................................................................................... 36

3.2. Fiscal Policy Outlook ................................................................................................................................................................. 38

4. Conclusion and outlook ..................................................................................................................................................................... 42

Annex of public finance tables .................................................................................................................................................................. 44

3

Charts:

Chart 1: Revenue analysis ......................................................................................................................................................................... 9

Chart 2: Salaries paid to ministries and agencies................................................................................................................... 19

Chart 3: Total amount committed for fuel ................................................................................................................................... 21

Chart 4: Construction works ................................................................................................................................................................. 24

Chart 5: Cars commiteed by ministries and agencies .......................................................................................................... 25

Chart 6: Bank balances ............................................................................................................................................................................. 28

Chart 7: GDP Growth in Liberia .......................................................................................................................................................... 33

Chart 8: Inflation in Liberia ................................................................................................................................................................... 35

Tables:

Table 1: Original Revenue Projections 2009/10 ....................................................................................................................... 6

Table 2: Original Appropriation 2009/10 ...................................................................................................................................... 6

Table 3: Revenue Collection Performance ..................................................................................................................................... 8

Table 4: FY 2009/10 Appropriation and allotment by sector ........................................................................................ 10

Table 5: Allotment analysis ................................................................................................................................................................... 11

Table 6: Commitment analysis ............................................................................................................................................................ 12

Table 7: Cash expenditure by functional sector ...................................................................................................................... 13

Table 8: Cash expenditure by economic classification ....................................................................................................... 13

Table 9: Budget execution analysis .................................................................................................................................................. 14

Table 10: Aggregate expenditure analysis .................................................................................................................................. 15

Table 11: Expenditure analysis by economic classification ............................................................................................ 15

Table 12: PRS expenditure analysis ................................................................................................................................................ 16

Table 13: Commitment against cash by quarter ..................................................................................................................... 16

Table 14: Revenue - Expenditure analysis .................................................................................................................................. 26

Table 15: Cash flows FY 2009/10 ................................................................................................................................................... 266

Table 16: Analysis of Closing Balance ............................................................................................................................................ 27

Table 17: FY 2009/10 Bank account balances.......................................................................................................................... 29

Table 18: Domestic debt stock ............................................................................................................................................................ 30

Table 19: Domestic debt service payments ................................................................................................................................ 31

Table 20: External debt Service Payments.................................................................................................................................. 32

4

EXECUTIVE SUMMARY

During the fiscal year 2009/10, the National Legislature approved a total of US$371.9 million, representing an increase of nearly 25 per cent over the preceding year’s Budget of US$298 million. The revenue projection was more ambitious compared to the previous year’s budget; partly due to a significant increase during the budget deliberation process at the National Legislature. Projections made rose from US$347.0 million to US$371.9 million. This represents an upward adjustment of US$24.9 million, or 7.2 per cent from the proposed Budget submitted by the President to the Legislature. Aggregated revenue generated during the fiscal year was US$287.7 million, 22 per cent higher than the previous year, yet equally lower than the original budget. Tax revenue increased by 13 per cent compared to fiscal year 2008/09 while non-tax sources realized a 262 percent increase. Compared with the projection non-tax revenue was 50% lower, while tax revenue was 9% lower. Unanticipated changes in concessionary income from Bong Mines/China Union accounted for both gains and shortfalls in non-tax revenue. The annual budget initially incorporated US$43 million from this source but realized only US$20 million. In terms of the composition of revenue sources, the original budget envisaged a share of 67 percent from taxes, 27 from non-tax sources and 6 percent from external grants. This was compared to 84 percent from taxes, 6 percent from non-tax sources and 10 percent from grants in the previous year. Nevertheless, actual performance in fiscal year 2009/10 was 78 percent of returns in tax revenue, 18 percent in non tax and 5 percent in grants. This highlights the fact that both non-tax and grant sources are unreliable and contingent on various internal and external factors . On the expenditure side, total allotment and commitment increased by only 17.6 and 17 per cent respectively. As a result, allotment from the appropriation remained as low as 83 per cent when compared to 2008/09. Similarly the share of commitment was 79 per cent of the appropriation. This performance on both allotment and commitment is largely on account of the lower revenue intake which ultimately led to the adoption of a stringent risk management strategy of holding back about 15.7% of the original appropriation. Consistent with the cash-based balanced budget, expenditure performance has been driven by the revenue

performance. Consequently, there have previously been serious revenue shortfalls as a result of delays in

one-off payments from concessional agreements. The Ministry of Finance has therefore adopted a risk

management strategy (adopted by the House Committee on Finance, Ways & Means) to help mitigate the

impact of shocks created during budget execution. Monthly allotment of appropriation was guided by

efficient budget management and it was ensured that obligations are paid according to contractual terms

and available resources.

5

1. PUBLIC FINANCE PERFORMANCE

1.1. ORIGINAL BUDGET APPROPRIATIONS

This Fiscal Outturn fulfills the Ministry of Finance’s reporting requirements under Section 36[4] of the PFM

law. Pursuant to this, the Ministry of Finance through the Office of the President submitted on May 11,

2009, a draft budget of US$347.0 million to the National Legislature for ratification. During the ensuing

deliberations, the budget projection was increased by US$24.9 million or 7.2 percent, bringing the final

ratified budget to US$371.9 million. Included in this was US$2.8 million of unspent revenue from the

previous year of 2008/09. The revenue forecasts contained in the draft budget were underpinned by the

following core assumptions:

1. Nominal GDP growth of 5 per cent, a 37.5 per cent drop from the previous year’s growth of 8 per

cent due principally to impacts of the global financial and economic crisis;

2. Average inflation of 3.3 per cent;

3. Increase in GST rate from 7 per cent to 8 per cent and 10 per cent for GSM service providers and

alcoholic beverages as well as an increase in the excise on commodities with adverse social

consequences;

4. Reduction in PIT and CIT rates from a maximum of 35 per cent to 25 per cent;

5. Maintenance of the CIT rate at 35 per cent for GSM communication companies;

6. The consummation of three key concession contracts- i.e. Western Cluster, China Union and BHP

Billiton;

7. Continued freeze on import duty on rice equivalent of revenue foregone of about US$8 million;

8. Exchange rate of US$1.00 to L$66.00.

The revenue forecast was subdivided into three major components: Tax, Non-Tax and External grants. It

was expected that 66 per cent of total resources would come from tax revenue, 28 per cent from non-tax

revenue and 6 percent from external grant and direct budget support. An amount of US$2.8 million was

also included as unspent appropriation from FY2008/2009. The detailed revenue forecasts are presented

in Table 1.

6

TABLE 1: ORIGINAL REVENUE PROJECTIONS 2009/10

Forecast Outturn Forecast

2008/09 2008/09 2009/10

US$ million % US$ million % US$ million %

Total revenue 277.7 100% 234.9 100% 369.1 100% 33% 57%

Total tax revenue 203.0 73% 199.6 85% 246.8 67% 22% 24%

Taxes on income and profits 54.5 20% 65.8 28% 54.2 15% 0% -18%

o/w Individuals 20.2 7% 39.7 17% 25.6 7% 27% -36%

o/w Corporate 27.9 10% 25.9 11% 28.6 8% 3% 11%

Taxes on property 1.8 1% 1.4 1% 2.1 1% 17% 47%

Taxes on goods and services 52.6 19% 43.1 18% 58.7 16% 12% 36%

o/w Sales taxes 11.5 4% 9.2 4% 14.2 4% 23% 53%

o/w Excise taxes 3.9 1% 5.0 2% 5.9 2% 53% 18%

o/w Motor vehicles 3.5 1% 1.8 1% 3.7 1% 6% 108%

o/w Maritime revenue 16.0 6% 13.0 6% 21.3 6% 33% 64%

Taxes on international transactions 77.2 28% 88.0 37% 101.9 28% 32% 16%

o/w Imports 76.2 27% 87.6 37% 95.7 26% 26% 9%

o/w Exports 1.0 0% 0.4 0% 6.2 2% 527% 1593%

Other taxes 17.0 6% 1.3 1% 29.9 8% 76% 2229%

o/w Social Development Funds 13.2 5% 0.0 0% 20.4 6% 54% …

Total non-tax revenue 74.7 27% 11.6 5% 101.0 27% 35% 767%

o/w Rent, including one-off payments 47.2 17% 3.1 1% 84.0 23% 78% 2629%

Grants 0.0 0% 23.6 10% 21.3 6% … -10%


%y/y

Share of

total

Share of

total

Share of

total

Variance vs.

Forecast

2008/09

Variance vs.

Outturn

2008/09

In line with the principles of the current cash-based budget system, the amount of projected expenditure

was equal to the revenue estimates of US$371.9 million. This represented a 24.8 per cent increase over the

projected expenditure for FY2008/2009 and a 48.5 per cent increase over the total commitment for the

same fiscal year. As shown in Table 2, the Budget was appropriated to five sectors, with the Public and

Administrative Services Sector (PASS) receiving US$92.38 million; General Claims getting US$78.70

million; the Social and Community Services Sector (SCSS) with US$80.27 million; the Economic Services

Sector (ESS) receiving US$72.56 million, and the Rule of Law and Public Safety Sector (RLPS) with

US$48.00 million. As part of the commitment to ensure that spending policies are aligned with the PRS, the

Government of Liberia allocated 60 per cent of the 2009/10 National Budget towards the Poverty

Reduction Strategy (PRS) activities, 2 per cent higher than the previous fiscal year’s (2008/09) allocation of

58 per cent.

Compared to the outturn, the largest expected increases were found in the Economic Services and General

Claims Sectors. The significant increase in the ESS was on account of substantial allocations for road

construction, and rehabilitation of public buildings. Expenditure on capital acquisitions was expected to

double and a large increase in debt payments was also projected. The increases in the Rule of Law and

Public Safety, Social & Community Services and Economic Services Sectors underpinned the Government of

Liberia’s commitment to direct more resources towards PRS related activities. Public and Administrative

Services sector remained constant, reflecting government’s reallocation efficiency policy from

Administrative activities to service delivery.

Additionally, as Liberia reached the HIPC completion point, opportunity is once again available to borrow

prudently for investment purposes. Going forward, government’s borrowing will be directed towards

financing investments with sufficient social, economic or financial returns.

7

TABLE 2: ORIGINAL APPROPRIATION 2009/10

Appr. Appr.

2008/09 2009/10

US$ m % US$ m % %y/y

Appropriation by functional sector 298.1 371.9 25%

Public and Admin Services 74.5 25% 92.4 25% 24%

Rule of Law and Public Safety 36.8 12% 48.0 13% 30%

Social and Community Services 63.1 21% 80.3 22% 27%

Economic Services 51.6 17% 72.6 20% 41%

General Claims 72.1 24% 78.7 21% 9%

Appropriation by economic classification 298.1 371.9 25%

Personnel Expenses 95.3 32% 120.7 32% 27%

Goods and Services 75.5 25% 89.1 24% 18%

Transfers and Subsidies 38.2 13% 53.3 14% 40%

Capital Expenditure 47.9 16% 66.9 18% 40%

Capital Transfers 27.6 9% 25.5 7% -8%

Domestic and Foreign Debts 13.6 5% 16.4 4% 21%

Source: Departments of Expenditure and Budget, Ministry of Finance

Percentage

of total

Percentage

of total

Change in 09/10

Appr vs. 08/09

1.2. REVENUE

Total spendable resources for FY2009/2010 amounted to US$295 million, made up of US$287.7 million in current revenue and a US$7.3 million balance brought forward from FY2008/2009. The FY2009/2010 generated revenue of US$287.7 million was 22 percent higher than the previous year, butUS$84.2 million or 22.6 percent lower than the projected amount. Tax revenue increased by 13 percent compared to FY2008/2009 while non tax sources grew by an unprecedented 257 percent increase over the same period. Compared to FY2009/2010 projections, however, both tax revenue and non-tax revenue underperformed by 9 percent and 50 percent respectively. This revenue shock was attributable, in large part, to unforeseen challenges in receiving the signature bonus from the Bong Mines/China Union concession for which only about half of the originally budgeted US$ 43 million was realized during the course of the fiscal year. Taxes on income and profits: Among the different kinds of tax revenue, taxes on income & profits, particularly those from individual income and profits, performed quite satisfactorily, achieving 11 percent growth on the FY2008/2009 outturn and 29 percent over the projection. This increase was spurred by better tax awareness, compliance from individual taxpayers and better administration. Corporate income taxes also showed continuous growth due to the improved quality of services being provided to large taxpayers to enhance their compliance. Property taxes remained a major challenge in tax administration during FY2009/2010. The situation was somewhat mitigated by the granting of tax amnesty to property owners through an Executive Ordinance. Notwithstanding, property taxes in FY2009/10 amounted to $1.6 million, 20 percent below the current year projection and only 14 percent higher than the FY2008/2009 outturn. A plan for sustained future

8

public sensitization, including awareness of the amnesty is anticipated to improve compliance in subsequent years and thereby increase collection. Taxes on goods and services (sales taxes on goods and services, excise taxes, motor vehicles taxes, taxes on permissions and maritime) registered US$48.7 million, a moderate 16 percent over receipts from the previous fiscal year, but fell short of FY2009/2010 forecast by 17 percent. This is a departure from previous periods when the outturns in this category out-performed projections. Although the government continues to put in place more vigorous tax enforcement and administration mechanisms, the taxes in this group are generally contingent on economic activities, which have suffered somewhat from the effects of the international financial difficulties. Taxes on international trade performed less favorably in FY2009/2010 than at any time in the past four fiscal years. Proceeds from international trade amounted to US$91.8 million, a meager 2.7 percent increase over the FY2008/2009 outturn and a 10 percent under-performance against the original projection. The drop in collection arose principally from a slowdown in operations at the Freeport of Monrovia where tax collection was automated with the introduction of the ASYCUDA software and tax administration system. With the Freeport collectorate alone averaging almost 40% of total receipts from international trade, the transitional delays arising from the introduction of the new system affected overall performance of taxes on international trade. TABLE 3: REVENUE COLLECTION PERFORMANCE

Actual Budget Risked Bud.

2008/09 2009/10 2009/10

US$ mn % sha. US$ mn % shar US$ mn % shar US$ mn % sha.

Total revenue 234.9 369.1 309.3 288.0 +22.6 -22.0 -6.9

Total tax revenue 197.3 84.0 246.7 66.9 215.2 69.6 224.7 78.0 13.9 -8.9 4.4

Taxes on income and profits 63.2 26.9 54.2 14.7 49.7 16.1 70.2 24.4 11.0 29.5 41.1

o/w Individuals 37.1 15.8 25.6 6.9 24.7 8.0 40.0 13.9 7.9 56.6 62.0

o/w Corporate 26.1 11.1 28.6 7.7 25.0 8.1 30.1 10.5 15.4 5.3 20.4

Taxes on property 1.3 0.6 2.1 0.6 2.0 0.7 1.7 0.6 23.5 -19.3 -17.8

Taxes on goods and services 42.0 17.9 58.8 15.9 50.2 16.2 48.7 16.9 16.1 -17.0 -3.0

o/w Sales taxes 9.4 4.0 16.3 4.4 9.9 3.2 10.9 3.8 16.1 -33.0 10.5

o/w Excise taxes 3.9 1.7 6.0 1.6 5.4 1.8 9.1 3.2 135.2 52.9 68.2

o/w Motor vehicles 1.8 0.8 3.7 1.0 2.9 0.9 2.6 0.9 42.1 -30.9 -12.1

o/w taxes on perm. 13.9 5.9 11.6 3.1 11.6 3.7 9.8 0.9 -81.6 -77.9 -14.7

o/w Maritime revenue 13.0 5.5 21.3 5.8 20.5 6.6 16.3 3.4 -24.2 -53.7 -20.4

Taxes on international transactions 89.4 38.1 101.9 27.6 90.7 29.3 91.8 31.9 2.7 -9.8 1.2

o/w Imports 88.0 37.5 95.7 25.9 87.4 28.2 91.4 31.7 3.8 -4.5 4.6

o/w Exports 1.4 0.6 6.2 1.7 3.4 1.1 0.5 0.2 -67.8 -92.7 -86.6

Other taxes 1.4 0.6 29.9 8.1 22.5 7.3 12.3 4.3 777.3 -58.9 -45.4

o/w Social Development Funds 0.1 0.0 20.4 5.5 17.0 5.5 10.9 3.8 10755.4 -46.7 -36.0

Total non-tax revenue 14.1 6.0 101.0 27.4 68.6 22.2 50.3 17.5 256.7 -50.2 -26.7

o/w Rent, including one-off payments 2.5 1.1 20.9 5.7 58.2 18.8 40.6 14.1 1526.7 93.7 -30.3

Grants 23.5 10.0 21.3 5.8 25.5 8.2 13.0 4.5 -44.6 -39.0 -49.0


July-June (Actual)

2009/10Budget 2009/10

July-June (Actual)

2008/09

Risked Budget

2009/10

%y/y

2009/10 Growth over

Non-tax revenue: Total non-tax revenue projection was US$101.9 million, of which US$63 million, or 62 percent, was expected from one time concessional payments from, among others, Western Cluster (US$18 million), Bong Mines/China Union (US$40 million) and BHP Billiton (US$5 million). Actual collection, however, remained at US$50.3 million, just under 50 percent of the projected level. In the case of Bong Mines/China Union, merely US$20 million was realized, due to the negative impact of the financial crisis and concessions were not ratified during the fiscal year as anticipated.

9

CHART 1: REVENUE ANALYSIS

197.3246.7

215.2 224.7

14.1

101.0

68.6 50.3

23.5

21.3

25.513.0

0

50

100

150

200

250

300

350

400

July-June

(Actual)

2008/09

Budget

2009/10

Risked

Budget

2009/10

July-June

(Actual)

2009/10

GrantsTotal non-tax revenueTotal tax revenue


US$m

84.0%

66.9% 69.6%78.0%

6.0%

27.4% 22.2%17.5%

10.0% 5.8% 8.2% 4.5%

July-June

(Actual)

2008/09

Budget 2009/10 Risked Budget

2009/10

July-June

(Actual)

2009/10

GrantsTotal non-tax revenueTotal tax revenue


1.3. EXPENDITURE

1.3.1. APPROPRIATION & ALLOTMENT

Risk Management Strategy: A thorough reassessment of the revenue projections for FY2009/2010

revealed that some US$59.7 million or 16 percent of the US$371.9 million revenue projections were

unrealizable. On the expenditure, US$58.5 million or 15.7% of the projected budget was deemed

unspendible. The difference of US$1.2 million came from extraordinary sources used to mitigate the effect

of the risk on public expenditure. The distribution of the budget risk among various functional categories

was as follows: US$17.02 million from General Claims, US$1.5 from Public Corporations, US$18.5 million

resulting from across-the-board adjustments to specific objects of expenditure, and US$21.9 million

determined through a prioritized, PRS sensitive adjustment by M+As. In the final analysis, only US$313.4

million or 84.5 percent of the approved budget was initially available for allotment.

Virements (Budgetary Transfer): Altogether, a total of US$14.8 million was shifted among budget lines, M+As and functional sectors during the course of FY2009/2010. However, these shifts did not alter the total resource envelope and the balanced budget policy remained intact.

Allotment: During the period under review, total allotment amounted to US$308.6 million, representing 83 per cent of the adjusted appropriation, but US$13 million or 4.5 percent in excess of the actual amount available to spend (revenue plus brought-forward) outturn of US$295.7 million. This mismatch resulted from the fact that allotments are normally processed on the basis of unrestricted cash balance at the start

10

of the month plus revenue projection for the month, hence, a revenue disturbance during the month when allotments has already been issued could result in a revenue – allotment mismatch. TABLE 4: FY 2009/10 APPROPRIATION AND ALLOTMENT BY SECTOR

Sector

Original

Appropriation Transfers Risk Factor

Adjusted

Appropriation

Processed

Allotment Reversals

Total

Allotment

PASS 92.4 5.3 -13.0 84.7 89.1 1.3 87.9

RLPSS 48.0 1.7 -5.7 43.9 45.0 0.6 44.4

SCSS 80.3 3.5 -8.2 75.6 69.6 1.2 68.3

ESS 72.6 4.4 -14.5 62.4 62.3 3.5 58.8

GC 78.7 -14.8 -17.0 46.9 53.4 4.1 49.3

TOTAL 371.9 0.0 -58.5 313.4 319.3 10.7 308.6


Reversals:- A total of US$10.7 million of processed allotment was reversed. Of this amount, US$4.1 million was affected from the General Claims, while US$3.5 million was from Economic Services Sector. The high reversals were largely on account of the risk strategy employed for which ministries and agencies were constrained to re-appropriate before undertaking further expenditure. The bulk of reversals came under GC, which account for 38.31% of total reversals; or 7.68% of the Processed Allotment for GC. The smallest reversal, as a proportion of total reversals, is in RLPSS: 5.61% of total reversals. As a proportion of the Processed Allotment this is also the smallest reversal. ESS sees a reversal of 5.62%; PASS a reversal of 1.46% and SCSS a reversal of 1.72%.

11

TABLE 5: ALLOTMENT ANALYSIS

2009/10 Share 2010/11 Share Growth


Allotment by functional sector 262.4 308.6 18%





General Claims 35.0 13% 49.3 16% 41%

Allotment by economic classification 262.4 308.6 18%


Goods and Services 80.2 31% 73.2 24% -9%


Capital Expenditure 37.5 14% 41.3 13% 10%

Capital Transfers 0.0 0% 19.5 6% …


Annual Actual


1.3.2. COMMITMENT

For the purpose of this report, commitment refers to Government’s acknowledgment that it will formally obligate funding. Consistent with Government commitment control measure, only US$292.7 million out of the allotted US$308.6 million was effectively committed reflecting Government’s balance cash based budget policy. The residual allotment lapsed in accordance with the Budget Act.

Commitment for the period under review amounted to US$292.7, an increase of 17 per cent over FY2008/09. By functional classification, the highest increase of 45 per cent was seen on General Claims, largely on account of transfers to the counties in the form of funds for social developments. Consequently it is one of the sectors exhibited percentage share increase over the total commitment in the fiscal year from 13.5 per cent of last year to 16.6 per cent in fiscal year 2009/10.

12

TABLE 6: COMMITMENT ANALYSIS

2008/09 Share 2009/10 Share Growth


Commitment by functional sector 250.5 292.7 17%





General Claims 33.7 13% 48.4 17% 44%

Commitment by economic classification 250.5 292.7 17%


Goods and Services 73.4 29% 71.3 24% -3%


Capital Expenditure 33.8 13% 31.5 11% -7%

Capital Transfers 0.0 0% 15.0 5% …


Annual Actual

Source: Department of Expenditure, Ministry of Finance

1.3.3. CASH EXPENDITURE

Cash Expenditure represents amounts drawn from the bank account opened for budget execution for the

fiscal year 09/10. The methodology for reporting cash expenditure has changed between 08/09 and 09/10,

so the cash outturn for 09/10 is not directly comparable to the cash outturn in 08/09. In O8/09, the cash

expenditure was US$231.5m in ‘accounting cash expenditure’ – the amount of cash which hit the

government’s bank accounts between 1 July 2008 and 30 June 2009. For 2009/10 fiscal year, the

methodology has changed to report ‘Budget cash expenditure’ –the cash expenditure which is directly

related to commitments made against the 09/10 Budget. This excludes cash payments at the beginning of

the fiscal year which relate to commitments made in the previous fiscal period, and includes cash payments

after 30 June 2010 which fulfills commitments made against the 09/10 Budget. The opening of separate

accounts for revenue and expenditure has made it possible to easily track revenue and expenditure

operational funds.

Cash expenditure for the fiscal year 2009/2010 was US$277.62 Million representing 94.74 percent of the

total commitment for the same period.

13

TABLE 7: CASH EXPENDITURE BY FUNCTIONAL SECTOR

Outturn Share

2009/10

US$m %

By functional sector

Public & Administrative Sector 85.1 30.7%

Rule of Law & Public Safety 42.8 15.4%

Social and Community Services 65.0 23.4%

Economic Services & Public Corporation 45.8 16.5%

General Claims 38.9 14.0%

Total Cash Expenditure 277.6


Of the total cash of US$277.62 million, US$113.81 million or 41.00 percent was for Personnel cost,

US$70.74 million or 25.50 per cent for Goods & Services, US$44.23 million or 15.94 percent went to

Transfer & Subsidy. Capital Expenditure accounted for US$33.80 million or 12.21 percent while Domestic

and External debts accounted for US$9.94 million and US$5.1 million or 3.58 per cent or 1.84 per cent,

respectively.

TABLE 8: CASH EXPENDITURE BY ECONOMIC CLASSIFICATION

Outturn Share

2009/10

US$m %

By economic classification

Personnel 113.81 41.0%

Goods & Services 70.74 25.5%

Transfers & Subsidies 44.23 15.9%

Capital Expenditure 33.80 12.2%

Domestic Debt 9.94 3.6%

External Debt 5.10 1.8%

Total Expenditure 277.6


1.3.4. EXPENDITURE ANALYSIS

Appropriation, Allotment, and Commitment: The total appropriated budget for fiscal year 2009/10

indicated an increase of nearly 25 per cent over FY2008/2009. The total allotment and commitment,

though significantly lower than original appropriation, showed slight increases from prior year, with 17.6

and 17 per cent respectively. Allotment from the appropriation remained as low as 83 per cent compared

to 88 percent in FY2008/2009. Similarly, commitment as a proportion of appropriation was 79 percent

compared to 84 percent in the previous fiscal year. In keeping with the cash-based balanced budget, MoF

14

managed to avoid commitment exceeding revenue and allotment. On the whole the actual expenditure for

FY2009/2010 was a lower proportion of appropriation in comparison to FY2008/2009. This was primarily

due to:

� The adoption of a Risk Management Strategy by the Government of Liberia to mitigate the impact of the short fall revenue intake;

� Allotment and commitment for capital expenditure in the first half of the fiscal year 2009/2010 were restrained.;

� Collaborative efforts with the Public Procurement & Concession Commission and the General Services Agency to monitor the procurement process have help to streamline cost.

TABLE 9: BUDGET EXECUTION ANALYSIS

Fiscal year

2008/09

% of

appropriation

% of non-

contingent

Budget

Fiscal year

2009/10

% of original

appropriation

% of risk

adjusted

appropriation

Growth

over

08/09*

Ministry/Sector US$m % US$m

Original Appropriation 298.2 100% 371.9 100% 24.7%

Risk Adjusted Appropriation 270.3 91% 100% 313.4 84% 100% 5.1%

Allotment 262.4 88% 97% 308.6 83% 98% 17.6%

Commitment 250.5 84% 93% 293.0 79% 93% 17.0%

Cash 231.5 78% 86% 277.6 75% 89%

%

* for Cash Expenditure, inter-year comparison is not valid because a different methodology has been used in each year: Budget Cash for 2009/10,

and Accounting Cash for 2008/09

Source: Departments of Budget and Expenditure, Ministry of Finance

Commitment versus Allotment:– Of the US$308.63 (83% of appropriation) that was allotted, effective

commitment was US$293.04 million, representing 94.9 per cent of the total allotment. In keeping with the

cash based balanced budget rule and existing expenditure control regulations, commitment did not exceed

revenue outturn.

The total budget for the reporting period was US$371.90million representing an increase of US$73.7

million or 24.7 per cent over FY2008/2009 budget of US$298.2 million. Allotment totalled US$308.7

million or 17.6 percent more than allotment for the previous year. Commitment for the same period

amounted to US$291.9Million representing a 16.5 per cent increase over FY2008/2009 commitment of

US$250.5million. This was a reflection of the Government’s desire to expand its resource absorption

capacity by increasing spending. Compared to 88 percent absorption rate for FY2008/2009, commitment-

to-appropriation ratio for FY2009/2010 was 79 percent against the original appropriation of US$371.9

million but 93 percent of the risk-adjusted budget of US$313.4 million.

15

TABLE 11: EXPENDITURE ANALYSIS BY ECONOMIC CLASSIFICATION

Allotment % of Appr. Commitment % of Allot Cash

% of

Comm.

Sectors % US $ m % US $ m %

Personnel 114.0 94.5% 113.9 99.9% 113.8 99.9%

Goods and Services 73.2 82.2% 71.3 97.4% 76.7 107.6%

Transfers and Subsidies 46.7 87.6% 45.9 98.3% 44.2 96.4%

Capital Expenditure 41.3 61.8% 31.5 76.1% 13.5 43.0%

Capital Transfers 19.5 76.5% 15.0 77.0% 14.3 95.0%

Debt Payments 13.9 84.9% 15.1 108.3% 15.0 99.6%

Total 308.6 83.0% 292.7 94.8% 277.6 94.9%


PRS alignment: - Noting that all poverty reduction strategy (PRS) related appropriation was 60 percent of

total budget, the Ministry of Finance tracked the actual amount that was spent on core high profile PRS

deliverables, i.e. infrastructure (Public Works), social services (education, health and WATSAN), and

economic revitalization (agriculture). In order to achieve PRS objectives government expenditure policy is

designed to finance critical areas identified in the strategy. Furthermore, the PRS committed the

Government to allocate available resources to such areas acknowledged as having direct impact on poverty

reduction and improving the living standard of citizens. Concomitant this with aim, a total of US$ 119.3

million or 32 per cent has been allocated to the basic PRS service delivery sectors including health,

education, roads, agriculture, water and sanitation. However, their share from the total allotment and

commitment were relatively lower; allotment and commitment to the aforesaid sectors remained 31.6 %

29% of the respective totals. Obviously these sectors incorporate relatively more capital expenditures than

others, and as capital expenditure is the first victim in the process of cutting expenditures expenditure in

these sectors is likely to fall to a larger degree.

TABLE 10: AGGREGATE EXPENDITURE ANALYSIS

FY09/10

% of Orig.

Appr.

Appropriation 371.9 100%

Risk Adjusted Appropriation 313.4 84%

Allotment 308.6 83%

Commitment 292.7 79%

Disbursed expenditure 292.4 79%

CMC approvals 242.5 12%

EDP 44.3 1%

Direct debit 5.6 1%

Cash Expenditure 277.6 75%

Bal. In appropriation 63.3 17%

Bal. In risked appropriation 4.8 1%

Bal. In allotment 16.0 4%

Source: Departments of Budget and Expenditure

16

TABLE 12: PRS EXPENDITURE ANALYSIS

Allotment % of Appr. Commitment % of Allot. Cash % of Comt.

Ministry/Sector % US$ %

Public Works 39.9 30.8 77.1% 20.8 67.6% 19.1 91.9%

Education Sector 43.3 39.8 92.0% 38.7 97.3% 38.7 100.0%

Health Sector 27.3 21.2 77.7% 20.1 94.8% 20.1 100.0%

Agriculture Sector 7.3 4.4 60.2% 4.2 96.7% 4.0 95.7%

WATSAN (LWSC &MCC) 1.5 1.4 91.1% 1.4 98.6% 1.3 97.6%

Total 119.3 97.6 81.8% 85.3 87.4% 83.4 97.8%


Original

Appropriati

on

July-June Outturn

Quarterly Analysis of allotment: It was also observed that allotments for the fourth quarter of the fiscal

year registered the highest amount at US$ 93.9 million (30.4%) of the total US$ 308.7million compared to

23.1, 23.9 and 22.1 % of the 3rd, 2nd and 1st quarter’s allotments respectively. This was unlike the previous

fiscal years where spending Ministries & Agencies requested more funding in order to jumpstart

operations at the fiscal year by frontloading requests for capital expenditure. This change was largely

attributed to the risk management strategy in the face of revenue shortfall early in the execution stage. As

the revenue situation improved slightly at the close of the fiscal year, allotment was increased in the fourth

quarter.

Quarterly commitment vs. cash: A comparison of commitment against cash on a quarterly basis reveals a

negative in some quarters; this is due to the roll over effect of commitment into cash.

TABLE 13: COMMITMENT AGAINST CASH BY QUARTER

1.3.4.1. PAYROLL

The Financial record, of employees’ salaries, deductions and net salaries is processed in the Liberian

Dollars Electronic Data Processing Units (EDP), in the Department of Expenditure, Ministry of Finance.

During the year under review, the Electronic data processing section was able to successfully implement

and achieve governments’ goal for the payment of GOL Line ministries and agencies salaries on or before

the 20th of each month.

These activities were accomplished by setting up timeline for receiving and processing transactions from

line ministries and agencies. A transaction includes additions, deletions, deduction (insurance/salary),

17

change of name, salary change, transfer, promotion etc, of employee’s process through their various

ministries and the Civil Service Agency.

The Ministry of Finance established a Direct Deposit Scheme to decentralize the payments of civil servants

salaries in line with its institutional reforms. This effort is aimed at reducing the burden on government

employees within the rural areas, while ensuring strong financial accountability within the salary payment

process as well as promoting a national banking culture. This effort was expanded to six (6) out of the eight

(8) licensed commercial banks outside the epicenter of Montserrado County. Counties in which the scheme

is operational are Montserrado, Bong, Margibi, Lofa, Grand Capemount, Maryland, Grand Gedeh, Nimba and

Grand Bassa. Those counties yet to be included on the scheme are Bomi, Gbarpolu, Rivercess, Rivergee,

Sinoe and Grand Kru due to the non existence of banks in these counties.

18

Number of

NO. MINISTRIES AND AGENCY Employees GROSS

1 National Legislature 2026 2,525,971.18 2 Ministry of State 486 630,315.15 3 Ministry of National Security 284 698,893.20

5 Bureau of State Enterprises 24 32,435.00 6 Ministry of Finance 1237 1,643,038.61 7 Ministry of Planning 121 152,684.09

8 Civil Service Agency 117 158,711.06 9 General Service Agency 330 369,985.00

10 National Food Assistant Association 56 62,580.00 11 Liberia Institute of Public Administration 55 65,735.00 12 Ministry of Gender & Development 124 160,140.00

13 Ministry of Foreign Affairs 320 404,971.82 14 Ministry of Labor 170 196,930.15

15 Ministry of Public Works 453 625,246.36 16 Ministry of Information 304 346,549.55 17 Center of National Documents & Records 106 125,665.00

18 Agriculture & Industrial Training Board 34 46,390.00 19 Ministry of Youth & Sports 180 220,235.00 20 Ministry of Commerce 297 345,140.00

21 Ministry of Postal Affairs 271 317,425.82 22 Ministry of Transport 281 332,591.36

23 Liberia Institute of Statistics & Geo-In 91 221,530.00

1 Judiciary 1492 1,881,125.64

2 Ministry of Justice 3411 4,076,736.03 3 Ministry of Internal Affairs 3871 4,246,044.55 4 Ministry of Education 9815 15,924,039.39

5 Ministry of Health 1980 2,429,374.03 6 Ministry of Lands, Mines & Energy 532 642,458.30

7 Ministry of Agriculture 296 375,005.00

1 Pension 15368 5,048,758.82 TOTAL 44,306,705.11 -

GRAND TOTAL 44,132 44,306,705.11

MINISTRIES & AGENCIES UNDER NON DIRECT DEPOSIT

MINISTRY OF FINANCE

PAYMENT TO DIRECT AND NON-DIRECT DEPOSIT

FOR FISCAL PERIOD ENDED 2009/2010

MINISTRIES & AGENCIES UNDER DIRECT DEPOSIT

MINISTRIES & AGENCIES UNDER DIRECT DEPOSIT and NON DIRECT DEPOSIT

19

CHART 2: SALARIES PAID TO MINISTRIES AND AGENCIES

2,525,971.18

630,315.15

698,893.20

32,435.00

1,643,038.61

152,684.09

158,711.06

369,985.00

62,580.00

65,735.00

160,140.00

404,971.82

196,930.15

625,246.36

346,549.55

125,665.00

46,390.00

220,235.00

345,140.00

317,425.82

332,591.36

221,530.00

1,881,125.64

4,076,736.03

4,246,044.55

15,924,039.39

2,429,374.03

642,458.30

375,005.00

5,048,758.82

National Legislature

Ministry of State

Ministry of National Security

Bureau of State Enterprises

Ministry of Finance

Ministry of Planning

Civil Service Agency

General Service Agency

National Food Assistant Association

Liberia Institute of Public Administration

Ministry of Gender & Development

Ministry of Foreign Affairs

Ministry of Labor

Ministry of Public Works

Ministry of Information

Center of National Documents & Records

Agriculture & Industrial Training Board

Ministry of Youth & Sports

Ministry of Commerce

Ministry of Postal Affairs

Ministry of Transport

Liberia Institute of Statistics & Geo-In

Judiciary

Ministry of Justice

Ministry of Internal Affairs

Ministry of Education

Ministry of Health

Ministry of Lands, Mines & Energy

Ministry of Agriculture

Pension

SALARIES PAID TO MINISTRIES and AGENCIES

Series1

The fiscal year 2009/2010 began with 48,773 employees. During the period, a total of 4,113 employees

were added through the regular, supplementary, and pension payroll. Of the total addition of 4,113

employees in the fiscal year, 1,950 employees representing 47.41 percent were new recruitments made

during the period. 321 or 7.8 percent were the number of employees that were reinstated during the

period. Supplementary payroll employees accounted for 1,279 or 31.10 percent of the total addition while

563 or 19.87 percent were employees that were added as the result of pension during the fiscal year

2009/2010. The pensioners were in two categories: regular payroll pensioners (employees who goes

through the regular civil servant processes for employment and retired honorably either due to age or

tenure) and non payroll pensioners (employees who do not go through the regular civil servant process, for

example, security officers-SSS, LNP, etc.). The total pension accounted for 15,368 employees or 35% of the

overall payroll. The fiscal year closed with 44,132 employees, which was the net effect of the additions and

deletions made during the period. The totals of 7,482 employees were deleted during the period. Of the

total deletion, 1,126 employees or 15.05 percent were as a result of dismissal. 8 employees or 0.11 percent

were employees that resigned; 1,860 employees or 24.86 percent were deleted due to Ministry of Finance

vigorous payroll cleanings exercise; 459 employees or 6.13 percent were employees that were deleted

20

from the regular payroll and transferred to the pension payroll. 342 employees or 4.57 percent were

deleted due to death, while 3,687 employees were deleted as the result of the General Auditing Commission

(GAC) audited reports for the period. Of the total names recommended by the GAC for deletion, the total of

2,028 or 55 percent were vetted and placed back on the payroll.

21

Amount for Fuel was committed by ministries and agencies during the year. See chart below depicting the

amount committed.

CHART 3: TOTAL AMOUNT COMMITTED FOR FUEL

The total amount spent for personnel cost in the fiscal year 2009/2010 was 113.9m. Of this amount, payroll

(L$) accounted for US$44.3m or 38.9 percent while allowances accounted for US$68.72m or 60.33 percent

and other personnel accounted for 0.88 or 0.7 percent . Below is a table showing spending entities and the

amount spent during the period under review.

22

A I T B 79,648.00

BUREAU OF STATE ENTERPRISE 49,188.00

C D A 119,516.00

C N D R A 182,228.00

CIVIL SERVICE AGENCY 447,997.52

ENVIRONMENTAL PROTECTION AGENCY 334,800.00

FORESTRY DEVELOPMENT AUTHORITY 2,160,892.00

GENERAL ALLOWANCE EQUALIZATION FUND 6,000.00

GENERAL AUDITING COMMISSION 2,468,013.00

GENERAL SERVICES AGENCY 306,763.00

GOVERNANCE COMMISSION 525,156.00

HONORARIUM 208,250.00

HUMAN RIGHTS COMMISSION 366,038.00

L I B R 160,843.00

L I P A 352,789.00

L I S G I S 916,127.00

L R R R C 503,117.00

LIBERIA ANTI- CORRUPTION COMMISSION 1,017,667.00

LIBERIA BROADCASTING SYSTEM 298,259.00

LIBERIA COPY RIGHT OFFICE 40,634.00

LIBERIA INDUSTRIAL PROPERTY SYSTEM 24,538.00

MIN. OF FOREIGN AFFAIRS 3,715,346.91

MIN. OF INTERNAL AFFAIRS 1,127,903.23

MIN. OF YOUTH & SPORTS 384,021.85

MINIMUM SALARY ADJUSTMENT FUND 15,220.00

MINISTRY OF AGRICULTURE 1,033,710.36

MINISTRY OF COMMERCE 331,583.09

MINISTRY OF EDUCATION / CENTRAL 2,881,409.97

MINISTRY OF FINANCE 5,322,557.82

MINISTRY OF GENDER & DEV 265,550.15

MINISTRY OF HEALTH & WELFARE 3,289,110.18

MINISTRY OF INFORMATION 482,781.45

MINISTRY OF JUSTICE 6,988,674.85

MINISTRY OF LABOUR 655,623.85

MINISTRY OF LANDS & MINES 789,633.70

MINISTRY OF NATIONAL DEFENSE 4,848,001.00

MINISTRY OF NATIONAL SECURITY 155,050.48

MINISTRY OF PLANNING 469,978.47

MINISTRY OF POSTAL AFFAIRS 368,999.12

MINISTRY OF PUBLIC WORKS 2,115,813.09

MINISTRY OF STATE 1,347,147.00

MINISTRY OF TRANSPORT 531,777.05

MONROVIA CONSOLIDATED SCHOOL SYS 169,377.91

N B I 289,999.00

N F A A 26,532.00

N S A 700,224.00

NATIONAL COMM. ON HIGHER EDUCATION 172,536.00

NATIONAL COMMISSION ON DISABILITIES 106,386.00

NATIONAL ELECTIONS COMMISSION 1,669,849.00

NATIONAL INVESTMENT COMMISSION 396,852.00

NATIONAL LEGISLATURE 7,574,823.76

PROFESSIONAL 57,020.00

PUBLIC PROCUMENT AND CONCESSION 553,795.00

RETIREMENT BENEFITS FOR FORMER LEGISLATORS 64,000.00

S S S 2,366,561.00

SAVERANCE PAYMENTS FOR NCDDRR CLOSURE 603,777.00

THE JUDICIARY 5,358,723.21

VICE PRESIDENT OFFICE 396,702.00

WEST AFRICAN EXAMINATION COUNCIL 526,632.00

Ministry of Finance

Payment of Allowance of Ministry and AgenciesFor the fiscal period ended June 30, 2010

23

A I T B

BUREAU OF STATE ENTERPRISE

C D A

C N D R A

CIVIL SERVICE AGENCY

ENVIRONMENTAL PROTECTION AGENCY

FORESTRY DEVELOPMENT AUTHORITY

GENERAL ALLOWANCE EQUALIZATION FUND

GENERAL AUDITING COMMISSION

GENERAL SERVICES AGENCY

GOVERNANCE COMMISSION

HONORARIUM

HUMAN RIGHTS COMMISSION

L I B R

L I P A

L I S G I S

L R R R C

LIBERIA ANTI- CORRUPTION COMMISSION

LIBERIA BROADCASTING SYSTEM

LIBERIA COPY RIGHT OFFICE

LIBERIA INDUSTRIAL PROPERTY SYSTEM

MIN. OF FOREIGN AFFAIRS

MIN. OF INTERNAL AFFAIRS

MIN. OF YOUTH & SPORTS

MINIMUM SALARY ADJUSTMENT FUND

MINISTRY OF AGRICULTURE

MINISTRY OF COMMERCE

MINISTRY OF EDUCATION / CENTRAL

MINISTRY OF FINANCE

MINISTRY OF GENDER & DEV

MINISTRY OF HEALTH & WELFARE

MINISTRY OF INFORMATION

MINISTRY OF JUSTICE

MINISTRY OF LABOUR

MINISTRY OF LANDS & MINES

MINISTRY OF NATIONAL DEFENSE

MINISTRY OF NATIONAL SECURITY

MINISTRY OF PLANNING

MINISTRY OF POSTAL AFFAIRS

MINISTRY OF PUBLIC WORKS

MINISTRY OF STATE

MINISTRY OF TRANSPORT

MONROVIA CONSOLIDATED SCHOOL SYS

N B I

N F A A

N S A

NATIONAL COMM. ON HIGHER EDUCATION

NATIONAL COMMISSION ON DISABILITIES

NATIONAL ELECTIONS COMMISSION

NATIONAL INVESTMENT COMMISSION

NATIONAL LEGISLATURE

PROFESSIONAL

PUBLIC PROCUMENT AND CONCESSION

RETIREMENT BENEFITS FOR FORMER LEGISLATORS

S S S

SAVERANCE PAYMENTS FOR NCDDRR CLOSURE

THE JUDICIARY

VICE PRESIDENT OFFICE

WEST AFRICAN EXAMINATION COUNCIL

79,648.00

49,188.00

119,516.00

182,228.00

447,997.52

334,800.00

2,160,892.00

6,000.00

2,468,013.00

306,763.00

525,156.00

208,250.00

366,038.00

160,843.00

352,789.00

916,127.00

503,117.00

1,017,667.00

298,259.00

40,634.00

24,538.00

3,715,346.91

1,127,903.23

384,021.85

15,220.00

1,033,710.36

331,583.09

2,881,409.97

5,322,557.82

265,550.15

3,289,110.18

482,781.45

6,988,674.85

655,623.85

789,633.70

4,848,001.00

155,050.48

469,978.47

368,999.12

2,115,813.09

1,347,147.00

531,777.05

169,377.91

289,999.00

26,532.00

700,224.00

172,536.00

106,386.00

1,669,849.00

396,852.00

7,574,823.76

57,020.00

553,795.00

64,000.00

2,366,561.00

603,777.00

5,358,723.21

396,702.00

526,632.00

Allowance Paid to Ministries and Agencies

Series1

24

Of the total US$19,107,843.00 for the fiscal year 2009/2010 committed the ministry of Public Works

accounted for US$14,240,162.00 representing 74.53 percent of the total commitment on construction

works. Next was the LIGIS followed by the Judiciary accounting for US$1,100,000.00 and 950,000.00 with

percentage of 5.76 and 4.98 respectively. See below a chart depicting the details of amount committed for

construction works.

CHART 4: CONSTRUCTION WORKS

25

Of the total of US$6,996,783.00 committed for cars, that 46.8 percent was committed for four spending

entities. The entities are: Ministry of Public Works US$476,742; Ministry of Agriculture US$ 566,880;

Ministry of Justice accounted for 1,123,545.00; LISGIS accounted for US$524,480 and Ministry of Internal

Affairs accounted for US$587,972.00. See below detail of amount committed for Ministries and agencies

Cars.

CHART 5: CARS COMMITEED BY MINISTRIES AND AGENCIES

26

1.4. CASH FLOW ANALYSIS

A total of US$288 million was generated, while US$ 7.8 million was added from the previous year unspent

cash balance which aggregated the fiscal year revenue to US$ 295.8 million. On the expenditure side,

US$308.6 million was allotted, whereas actual commitment was limited to US$ 292.7 million or about 98

per cent of the available envelope.

TABLE 14: REVENUE - EXPENDITURE ANALYSIS

Account Amount % of Total

Current Revenue 288.0 +97.4

Revenue from Prior Period b/f 7.8 +2.6

Amount available to spend 295.8 +100.0

Allotment 308.6 +104.3

Commitment 292.7 +99.0

Cash 277.6 +93.9

Variance

b/w amount available & allotment -12.9 -4.3

b/w amount available & commitment 3.1 +1.0

b/w amount available & cash 18.2 +6.1

Source: Departments of Revenue, Budget and Expenditure, Ministry of Finance

TABLE 15: CASH FLOWS FY 2009/10

Opening

Balance Revenue

Amt

Available

Commitm

ent

Closing

Bal.

Month

Closing balance of prior fiscal year 55.64

Amount to provided for outstanding checks, prior year obligations 40.12

Monthly cash flows

Jul-09 15.52 22.67 38.19 -10.64 27.55

Aug-09 27.55 13.61 41.16 -17.53 23.63

Sep-09 23.63 16.41 40.04 -24.23 15.82

Oct-09 15.82 24.53 40.35 -25.03 15.32

Nov-09 15.32 17.03 32.35 -18.61 13.74

Dec-09 13.74 26.63 40.37 -24.65 15.72

Jan-10 15.72 46.43 62.15 -23.70 38.45

Feb-10 38.45 18.56 57.01 -25.13 31.88

Mar-10 31.88 23.34 55.22 -18.86 36.35

Apr-10 36.35 27.65 64.00 -26.66 37.35

May-10 37.35 19.13 56.48 -24.66 31.82

Jun-10 31.82 31.99 63.81 -53.08 10.73

Source: Departments of Revenue and Expenditure, Ministry of Finance

US$ million

27

1.4.1. BANK ACCOUNTS

The Government of Liberia (GOL) operated ten bank accounts (4 United States dollar currency and 6

Liberian dollar currency) with the Central Bank of Liberia for the consolidated funds of GOL. The ten bank

accounts comprise five bank accounts operated up to fiscal year 2008/09 and are referred to as the old

bank account and 5 bank accounts opened solely for the execution of the fiscal year 2009/10 budget and

are referred to as the new bank accounts. The five new bank accounts opened for the execution of the fiscal

year 2009/10 budget comprise two bank accounts (United States dollars & Liberian dollars) for revenue,

two bank accounts (United States dollars & Liberian dollars) for expenditure and one Liberian dollar bank

account for payroll. The opening of separate bank accounts for revenue and expenditure put an end to the

co-mingling of revenue and expenditure in a single bank account. This was a major problem in reconciling

GOL’s bank account. Before the end of the FY 09/10, the five old bank accounts were closed and the

balances transferred to the new bank accounts for FY 09/10.

At the end of the fiscal year 2009/10 the balances in the five bank accounts were UDS$57,041,681.29 and

L$509,781,233.75. The aggregate closing bank balance using the exchange of LD 71:1USD is

US$64,221,700.67. The US$64,221,700.67 has been adjusted to US$10.73m based on outstanding checks

and other related transactions that are expected to be disbursed from GOL’s bank accounts. See Appendix

II for analysis of the US$64,221,700.67.

TABLE 14: ANALYSIS OF CLOSING BALANCE

Payroll Acct. Operation Acct. Revenue Acct. Total Operation Acct. Revenue Acct. Total

Month 139/140 (L$) 138 (L$) 137 L$ US$ Equv. 138 (US$) 137 US$ Per Month

July 31, 2009 4,319,683.83 12,719.38 11,833,411.25 227,687.53 3,434,546.20 11,530,890.16 15,193,123.89

Aug. 31, 2009 5,942,576.60 1,378,191.58 57,289,396.37 910,002.32 1,021,253.03 17,347,202.43 19,278,457.78

Sept. 30, 2009 5,364,406.63 652,581.68 48,181,918.42 763,364.88 5,519,289.99 8,148,187.22 14,430,842.09

Oct. 31, 2009 5,495,940.09 2,803,120.54 26,389,527.24 488,571.66 6,979,886.55 10,517,031.68 17,985,489.89

Nov. 30, 2009 5,356,265.96 1,979,287.95 63,217,313.48 993,702.36 13,513,035.15 7,443,960.94 21,950,698.45

Dec. 31, 2009 4,230,560.69 3,431,755.05 67,365,646.90 1,056,731.87 10,117,134.63 9,533,629.87 20,707,496.37

Jan. 31, 2010 1,150,107.75 7,321,981.18 192,165,197.49 2,825,877.27 1,898,154.72 41,661,826.05 46,385,858.04

Feb. 28, 2010 756,627.57 7,965,186.97 63,044,538.59 1,010,793.71 8,428,886.78 25,867,945.25 35,307,625.74

March 31, 2010 758,916.77 4,229,805.33 141,627,975.24 2,065,023.91 15,151,880.05 21,049,020.34 38,265,924.30

April 30, 2010 1,948,230.62 5,062,109.61 60,646,564.32 952,914.15 16,344,122.39 19,384,855.04 36,681,891.58

May 31, 2010 3,853,670.67 1,747,088.30 328,853,718.31 4,710,626.44 21,697,091.58 12,040,998.17 38,448,716.19

June 30, 2010 117,840,061.29 167,326,179.30 224,614,993.16 7,180,017.38 37,483,948.66 19,557,734.63 64,221,700.67

Cash Flows Analysis on Closing Balance

For the period Ended June 30, 2010

28

CHART 6: BANK BALANCES

Of the 64,221,700.67 million bank balance, the GOL Operation account accounted for 37, 483,948.66

million or 58.37 percent. GOL Revenue account accounted for 19,557,734.63 million or 30.45 percent. The

Liberian Dollar was converted at a rate of L$71:US$1. The converted GOL Liberian Dollars Operation

account accounted for 2,356,706.75 million or 3.67 percent, while the converted Revenue Account

accounted for 4.93 percent or 3,163,591.45 million. The converted GOL Payroll Account accounted for 2.58

percent or 1,659,719.17 million.

29

TABLE 15: FY 2009/10 BANK ACCOUNT BALANCES

ACCOUNT TITLE ACCOUNT # BANK BALANCE

GOL OPERATIONS A/C 0220530000138 37,483,948.66

GOL REVENUE A/C 0220530000137 19,557,734.63

Sub-Total 57,041,683.29

LRD ACCOUNTS

GOL OPERATION A/C 0120530000138 167,326,179.30

GOL REVENUE A/C 0120530000137 224,614,993.16

GOL PAYROLL A/C 0120530000140 117,840,061.29

Sub-Total 509,781,233.75

United States Dollors Equavilent 7,180,017.38

TOTAL 64,221,700.67

FISCAL YEAR 2009/2010 BANK ACCOUNT BALANCES

Note: the Liberian Dollars was converted at a rate of L$71: US$1

Additionally, Section 27(2) of the Public Financial Management Act of 2009 states that; “All balance of

appropriations committed but not disbursed prior to the end of the fiscal year shall be available for the

settlement of those obligations within 90 days from the end of the preceding fiscal year…” In fulfillment of this

Law, the department disbursed the total of $43,721.414.88 reducing the account balance from US$

64,221,700.67 to US$20,500,285.79. The total outstanding check(s) against the US$20,500,285.79 is/are

US$9,770,473.11. This brings the net bank balance to US$10,729,812.68 at the close of the fiscal period.

Of the total US$ 43,721,414 cleared in the 90 days window, July accounted for US$23,020,776 or 52

percent; August accounted for 8,940,832 or 21 percent, while September accounted for US$11,759,807 or

27 percent.

The Public Administrative Services Sector accounted for US$9,881,169 or 23 percent of the total cleared

checks; the Rule of Law & Public Safety accounted for US$2,644,838 or 6 percent; Social & Community

Service Sector accounted for US$ 15,091,501 or 34 percent; Economic Services Sector accounted for

US$5,628,045 or 13 percent; Public Corporations Sector accounted for US$344,982 or 1 percent and Other

General Claims accounted for US$10,130,880 or 23 percent.

Personnel Cost accounted for US$8,773,949 or 20 percent; Goods & Services US$ 12,819,822 or 29 percent;

Transfers & Subsides accounted for US$15,046,641 or 34 percent; Capital Expenditure accounted for

US$5,816,148 or 13 percent; Domestic Debt accounted for US$ 872,853 or 2 percent; and External Debt

accounted for US$392,000 or 0.9 percent of the total amount.

30

1.5. DEBT STOCK AND SERVICE PAYMENTS

1.5.1. DOMESTIC DEBT

As of June 30, 2010, total valid domestic debt stock amounted to US$284.3million, indicating a decline of

US$6.3milion or approximately 2.2% compared to the debt stock reported for the same period of the

previous fiscal year. Of this amount, US$270.2million or 95.0% represented obligations to financial

institutions, namely, the Central Bank of Liberia (CBL), the Liberia Bank for Development and Investment

(LBDI), and Ecobank Liberia Limited. The remaining 5% represented obligations to other domestic debt

holders, which include rental and vendor arrears, Pre-NTGL salary arrears, and Non EDP payroll arrears.

TABLE 16: DOMESTIC DEBT STOCK

FY08/09 FY09/10 FY09/10

PAYEE Prin. Bal B/F

Principal

Repayment

Ending

Principal Bal.

DOMESTIC DEBT

Financial Institutions

CBL 266.4 3.6 262.8

ECO 0.9 0.2 0.7

LBDI 7.5 0.7 6.8

Sub-total Fin. Institution 274.7 4.5 270.2

Other Debt Holder

NPA COMPULSORY LEAVERS 0.6 0.3 0.3

GUTHRIE PLANTATION WORKERS 0.4 0.4

VENDOR ARREARS 6.3 0.6 5.6

PRE-NTGL SALARY ARREARS 4.8 0.6 4.3

Non-EDP Payroll Arrears 3.9 3.9

Sub-total Other Debt Holder 15.9 1.8 14.1

GRAND TOTAL 290.61 6.33 284.27


DOMESTIC DEBT SERVICE

During the period under review, total domestic debt service amounted to US$9.94M. Of this amount,

US$6.34M or approximately 63.8% represented principal repayment and US$3.6M or 36.2% represented

interest payment. As a result of the principal repayment of US$6.34M, coupled with Government’s no

borrowing policy during the fiscal year, total domestic debt stock decreased by approximately 2.2% from

US$290.6M at the beginning of FY2009/10 to US$284.3M at the end of FY2009/10. The table below shows

the percentage of debt service payment per category of domestic creditor.

31

TABLE 19: DOMESTIC DEBT SERVICE PAYMENTS

FY09/10 FY09/10 FY09/10

PRINCIPAL INTEREST TOTAL

PAYEE REPAYMENT PAYMENT PAYMENT

DOMESTIC DEBT

Financial Institutions

CBL 3.6 3.4 7.0

ECO 0.2 0.0 0.2

LBDI 0.7 0.2 0.9

Sub-total Fin. Institution 4.5 3.6 8.1

Other Debt Holder - - -

NPA COMPULSORY LEAVERS 0.3 0.3

GUTHRIE PLANTATION WORKERS 0.4 0.4

VENDOR ARREARS 0.6 0.6

PRE-NTGL SALARY ARREARS 0.6 0.6

Sub-total Other Debt Holders 1.8 1.8

Total Domestic Debt Service 6.3 3.6 9.9


1.5.2. EXTERNAL DEBT

On the external front, as at June 30, 2010, total external debt portfolio amounted to US$1,553.0million, a

decrease of approximately US$229.1M or 12.9% over end June 2009 figure of US$1,782.1 million. This

decrease in total stock of public and publicly guaranteed external debt during the period under review was

primarily due to the following reasons;

• Interim debt relief provided by bilateral creditors,

• Reconciliation of external debt conducted at end 2009, and

• Debt service payments to large multilateral institutions including the World Bank, the IMF and the

African Development Bank (AfDB) group.

Of the total external debt stock at end June 2010, US$1,006.68 million represented obligations to

multilateral creditors, US$525.82million represented bilateral credits while US$20.54million represented

commercial credits.

EXTERNAL DEBT SERVICE1

Furthermore, during the period under review, a total of US$5.7M was paid. Of this amount, approximately

68.4% or US$3.9million represented payment to IDA of the World Bank; 7% or US$0.4million accounted for

payment to the AfDB Group; and 24.6% or US$1.4million constituted payment to the IMF.

1 NOTE: PAYMENT TO UNESCO IS NOT CONSIDERED AN EXTERNAL DEBT SERVICE AS IT IS NOT A PART OF THE EXTERNAL DEBT STOCK.

32

TABLE 17: EXTERNAL DEBT SERVICE PAYMENTS

FY09/10 FY09/10 FY09/11

Principal

Repayment

Interest

Payment Total Payment

World Bank (IDA) 3.3 0.6 3.9

IMF Payment 0.4 0.4

ADB 1.1 0.3 1.4

Total External Debt 4.5 1.2 5.7


DEBT RELIEF GRANTED LIBERIA UNDER THE HIPC PROCESS

On June 29, 2010 Liberia reached completion point under the Enhanced HIPC initiative. The Boards of the

World Bank and the IMF determined that Liberia had taken the necessary policy actions to reach the

completion point, and is therefore qualified for debt relief from both the HIPC Initiative and the

Multilateral Debt Relief Initiative (MDRI). The implication of this relief is that Liberia will no longer face a

heavy burden for debt service in respect of its budget revenue, and therefore is expected to utilize freed-up

revenue for poverty reduction and enhancement of its development plans.

By reaching the completion point, the IMF and the World Bank have both joined their efforts to support a

total of US$4.6 billion of debt relief for Liberia. Of this amount of debt relief, multilateral creditors are

expected to deliver US$1.5 billion out of a total multilateral stock of more than US$1.6 billion at end June

2007, with the IMF contributing a total of US$730 million (the IMF’s biggest ever HIPC contribution for a

single country), and contribution from the World Bank totaling US$374 million.

Furthermore, after reaching the HIPC completion point, Liberia also becomes eligible for further debt relief

of US$66.9 million from the World Bank and US$17.2 million from the African Development Bank under

the Multilateral Debt Relief Initiative (MDRI); beyond-HIPC assistance from the IMF of US$173 million, and

US$0.9 million from the EU Special Debt Relief Initiative.

Liberia is the 29th country to reach the completion point, which officially marks the end of the HIPC

process.

33

I Multilateral 1,615.4 1,066.4 549.0 1,576.4 890.2 686.2 634.5 - 1,320.7 255.7

II Bilateral 1,549.4 686.0 863.3 1,538.6 712.0 826.6 581.9 36.4 1,444.9 93.7

Paris Club 1,420.4 561.7 858.7 1,411.9 590.3 821.6 481.1 36.4 1,339.1 72.8

Non-Paris Club 129.0 124.3 4.7 126.7 121.7 5.0 100.9 - 105.9 20.8

III Commercial 1,233.9 20.5 1,213.4 1,233.9 20.5 1,213.4 19.9 - 1,233.3 0.6

Total 4,398.7 1,773.0 2,625.7 4,348.9 1,622.7 2,726.2 1,236.3 36.4 3,998.9 350.0

Interim HIPC

Relief

Updated

debt stock at

DP (end Jun

07)

Debt stock at

CP (end Jun

09)

Total

Assistance/

Debt Relief Creditor

Updated debt

stock at DP

(end Jun 07)

Anticipat

ed Post

CP Debt

stock

Present Values

Republic of Liberia

Summary of HIPC Assistance to Liberia by Category of Creditor

As at June 30, 2010

Debt stock at

CP (end Jun

09)

Interim HIPC

Relief

Nominal Values

Anticipated

Post CP HIPC

Traditional

Assistance

Anticipated

Post CP

Additional

Bilateral

Assistance

34

2. RECENT MACROECONOMIC DEVELOPMENTS & PROSPECTS

The past three years have witnessed unprecedented turmoil in the world’s financial markets, enormous

swings in international commodity prices, triggering a global economic crisis of monumental proportions

and a global recession that ranks second only to the Great Depression of the 1930s. These events had just

begun to unfold as the Government launched its medium-term socio-economic and growth framework –

the Poverty Reduction Strategy (PRS). The advent of global economic meltdown provided the backdrop

against which the Liberian economy has managed to sustain growth and job creation, although at a pace

well below that envisioned when the PRS was crafted.

Today, the global economic picture is showing some promising pictures. The global economy has evolved

better than expected with activity recovering at varying speeds; Sub-Saharan Africa is weathering the

global crisis well, and its recovery is expected to be stronger than other recoveries following past global

downturns2. The International Monetary fund stressed the role of policy support to attain sustainable

recovery including an expansionary monetary policy and a stimulus fiscal policy. However, Liberia’s

ability to move robustly to effect stimulus fiscal policies was constrained by the limited fiscal space coupled

with the zero borrowing requirements of our HIPC completion Point triggers. Looking further ahead, it is

projected that the world economy is poised for further recovery but at varying speeds across and within

regions. Global growth is projected to reach 4 ¾ percent in 2010 and 4¼ 2011. Advanced economies are

now expected to expand by 2¾ percent in 2010 and by 2¼ percent in 2011, following a decline in output of

more than 3 percent in 2009. Growth in emerging and developing economies is projected to be over 6 ½

percent during 2010–11, following a modest 2½ percent in 20093.

In the face of this global reality the Government and people of Liberia have continued the difficult task of

rebuilding an economy that has been all but completely destroyed by years of conflict. In the course of the

rebuilding and economic recovery exercise, GDP growth picked up steadily from 2004 to 2007, and reached

a peak of 9.4 per cent. As the food and fuel price shock of early 2007, and credit crunch of early 2008,

pushed the world’s major economies into recession, growth in Liberia slowed to 7.1 per cent. In 2009, and

2010 the Liberian economy was estimated to have grown by 4.6 per cent. The current IMF forecast for

growth in 2010 is 6.3 per cent as the economy rebounds from the effects of the global financial and

economic crisis.

2 IMF Economic Outlook, October 2010 3 Ibid.

35

CHART 7: GDP GROWTH IN LIBERIA CHART 8: INFLATION IN LIBERIA

2.6

5.3

7.8

9.4

7.1

4.6

6.3

0

1

2

3

4

5

6

7

8

9

10

2004 2005 2006 2007 2008 2009 2010

%y/y

Source: Macro Fiscal Analysis Unit, Ministry of

Finance and IMF Staff estimates

-10

-5

0

5

10

15

20

25

30

35

40

Jan-07 Oct-07 Jul-08 Apr-09 Jan-10

Food and non-alcoholic

beverages

General Index

%y/y

Source: Central Bank of Liberia

Limitations in the availability of data continue to pose serious setbacks in breaking down the sources of

growth with great accuracy, but current estimates suggest the agriculture and services sectors continue to

account for the majority of growth as delays in the resumption of activities in mining and timber sectors

persist.

As world food prices soared in the first half of 2008, the rate of inflation in Liberia was pushed up sharply

from 8.6 per cent in October 2007 to a peak of 26.5 per cent in August 2008. Inflation steadily declined in

late 2008 and early 2009 as domestic food price inflation eased and imported fuel prices fell. Since then,

inflation has been broadly stable through 2009, at between 6 and 9 per cent, but edged higher between

January and April of 2010. However, it started to decline in May 2010 and reached 2.5 percent in June

2010. This was due to a very low (1.4 percent) inflation of food and non-alcoholic beverages which

accounts for almost 45 percent of the general rate of inflation weight.

36

3. GOVERNMENT FISCAL POLICY

3.1. RECENT FISCAL POLICY

The preparation and presentation of the Budget for the fiscal year 2009/10 was underpinned by the

expectation of a robust macroeconomic growth outlook. The reality was the reverse - where the external

impacts of a financial crisis threw a wrench in the economic and financial cog of the Liberian economy.

Even in light of these hurdles, the Government of Liberia continued to pursue a fiscal policy designed to:-

• Ensure sustained, accelerated, broad-based economic growth with particular emphasis on

increasing Government’s investment in infrastructure; and strengthening the rural economy in

accordance with the poverty alleviation strategies of the PRS.

• Continue tax reforms for widening the tax base and reducing the revenue deficit to a target that will

allow sustainable growth in the economy by creating more fiscal space.

• Formulate expenditure plans to complete outstanding PRS-related projects.

• Restructure subsidies to decrease their impact on the nation’s finances.

• Foster a robust enabling environment for investment through private and public/private initiatives.

• Focus on an integrated development of physical infrastructure such as roads, water supply and

access to transportation.

• Increase in fiscal discipline and the promotion of fiscal empowerment in Government institutions to ensure fiscal accountability, transparency and responsibility.

Achieving such objectives is a challenge for the country as the appetite for building infrastructure and

social need is huge. In more specific manner, given the tight revenue constraints the main challenge has

been implementing expenditure policies which preserved macro-stability and ensure that public services

are sustainable, comprehensive, and efficiently provided.

Creating Fiscal Space through Expenditure Efficiency Measures: In the execution of the previous two

fiscal years budget, the government made substantial gains in revenue collection as revenues rose by close

to 58 and 15 percent compared to the preceding years of fiscal years 2007/08 and 2008/09 respectively.

Indeed, such growth was generated from a low base; and the global economic environment affected FDI

flow to Liberia in fiscal year 2009/10 and this resulted in a decline particularly in non tax revenue

generation for the period. Expenditure management for the just ended fiscal year was implemented amidst

stark reality which required adjustments in public spending. In similar fashion, serious attention was given

to prevent disruptive expenditure adjustments for priority programs by creating the necessary fiscal space

through implementing expenditure efficiency measures.

Given the constrained resource envelope and in the face of declining one –off concessional payments as

well as limited access to external financing, difficult choices and trade-offs on spending decisions posed

serious challenges. A more robust focus was employed to preserve macro-stability and ensure that public

services are sustainable, comprehensive, and efficiently provided.

Bringing donor flows on Budget:-It has been recognized by both donors and the government that direct

budget support becomes an effective way to strengthen the management of public financial systems, and

37

has helped prioritize areas of expenditure that improve access to basic services like healthcare and

education and target the poor. Based on this assumption, during the 09/10 fiscal year strenuous effort has

been exerted to design a common assessment framework to bring donors in direct budget support and

harmonize their assistance with Government priorities. The budget process, therefore initiated a strategy

to make the national budget a central instrument for coordinating donor assistance and PRS alignment.

Cash-Based Balanced Budgeting: The 2009/2010 budget was prepared following the cash based balanced

budget policy. Containing expenditure within available resources has been the government policy since the

Fiscal Year 2006/07 budget. Under a cash based budgeting system, shortfalls in expected resources within

a fiscal year are matched by cuts in expenditure. Government responds to a shortfall in expected tax

revenue by cutting expenditure, rather than covering the shortfall by domestic borrowing or/and printing

money, which could generate inflation.

While successful in improving fiscal discipline, the cash budgeting system however had severe costs in

terms of the effectiveness and efficiency of expenditure. It also undermined the reforms focused on

improving budget planning. With the budget being adjusted several times a year, it was less important for

spending ministries to focus on their budget preparation, because of the weakened role of the up-front

budget allocations in determining funding during the spending year. These problems prompted Liberia to

undertake complementary reforms to its cash management and commitment control systems. These

operate in tandem with the overall fiscal management system.

In order to operate the cash-based budget effectively, the fiscal authorities introduced a Risk Management

Strategy which was implemented throughout the fiscal year 2009/10. Accordingly, the original budget was

revised from US$371.9 million to US$313.4 million lowered by about 16 per cent. The strategy while

maintaining the cash-based budget protected poverty related expenditures on course towards achieving

the target for HIPC Completion Point.

At the start of the first quarter of the fiscal year, it was realized that serious revenue shortfalls were

imminent, largely on account of further drop in GDP forecasts influenced by global economic crisis. Among

the most significant elements of risk to the revenue forecasts were:

• the non-approval of the proposal to raise general GST from 7 per cent to 8 per cent and

telecommunications GST from 7 per cent to 10 per cent

• Uncertainties surrounding payments from forestry and mining concessions (excluding China

Union).

As a result of these and others, a revenue risk profile assessment was made, which showed that US$59.8

million or 16 per cent of the projected revenue of US$371.9 million was deemed uncollectible.

On the expenditure side, US$58.5 million, 15.7 per cent, was frozen out of the Budget as part of the Risk

Management Strategy to ensure that Spending Entities do not overspend revenue collection. The risk

management strategy was the culmination of a succession of series of temporary measures starting in July

with expenditure requests approved from a selected list of strategic goods and service.

While the risk management strategy was initially envisaged as a temporary austerity measure put in place

pending improvements in various economic factors that influence revenue performance, it has become

38

evident that some of the significant concessionary revenue sources may not materialize. The risk

management strategy therefore was implemented throughout the entire fiscal year and includes the

following measures:

• Except for the Heads of the three Branches of Government, is recommended that all GoL financed

foreign travels for the remainder of the fiscal year will be by economy class.

• Review payments to financial institutions in light of reduction in view of withdrawal of their field

staff from counties covered by Payroll Decentralization Program.

• Project proposals from social service delivery of M+As to be funded by SOEs.

• Insistence on sector ministries and agencies (those collecting administrative and service fees and

charges) to remit internally generated funds. The FY2010/2011 appropriations for these entities

should be contingent on their cooperation in this regard.

Debt Policy: Over the past few years the government has made great strides to achieve the two pertinent

stages of the HIPC requirements. Based on this successful track record the country’s development partners

granted about US$4.6 billion debt relief. This significantly reduces the annual cost of servicing debt. .

The Government has established a Debt Management Committee (DMC), consisting of the MoF as Chair, the

Governor of the Central Bank, the Minister of Justice, and two other members appointed by the President.

The Committee will monitor the country’s debt situation and maintain sustainable debt levels, putting in

place relevant indicators consistent with the National Debt Management Strategy.

Public Financial Management Reforms: Finally, improving the public financial management system is an

integral part of the success of the PRS and building the country’s development partners confidence. In view

of this, the government has implemented far-reaching reform process in the area of budgeting,

disbursement, cash management, reporting, internal and external auditing. It is believed that the

introduction of the new PFM Act provided a comprehensive framework for the management of public

finances.

In addition to the legal framework, the MoF has been actively strengthening specific areas of PFM over the

ended fiscal year. Among the more important achievements of the fiscal year are, the introduction of

coherent and consistent Chart of Accounts, the implementation of International Accounting Standards, the

merger of the Bureau of the Budget within the MoF; and the direct payment of civil servants salaries

through commercial banks.

3.2. FISCAL POLICY OUTLOOK

Budget year 2009/10 was a rollercoaster ride for fiscal policy. We have learned lessons from this

experience and, in addition to continuing with our fiscal aims set out in the previous section, we will

implement further fiscal strategies to ensure that Liberia meets its significant fiscal challenges, which are: -

• Protecting and increasing the amount of investment in the Budget in the face of large, volatile

concession revenue from enclave sectors, and an increasing pay bill compared to tax-revenue

• The end of the cash-based balanced budget, presenting both opportunities and challenges for

responsible borrowing, and ensuring government policy is non-inflationary.

39

• Meeting the objective of targeted, efficient government spending towards the country’s policy

priorities.

To guide these strategies we have developed four fiscal principles:

• The Government needs to develop, and implement, clear fiscal rules.

• Expenditure should be targeted, efficient and accountable

• Economic allocation of Budget should meet fiscal objectives; and

• Revenues from non-renewal resources should be invested in Liberia’s future

With these intentions in mind the Government has developed a set of strategic responses to the fiscal

situation, which are outlined below.

1. Investment spending: This issue can be broken down into two areas:

• Reacting to Concession Revenues: Concessions revenue provides an enormous fiscal benefit to

Liberia, as well as potentially large economic benefits. The income from Social Development Funds

and other concessionary revenue was greater than US$ 30 million in the fiscal year 2009/2010.

The income from iron ore production could reach US$ 1 billion by 2030, according to IMF best case

scenarios, hence the potentially for significant investment is large. Concession revenue however

also produces challenges. The inclusion of concession revenue in the revenue forecasts and budget

has led to shortfalls in the budget in periods when those revenues did not materialize. This has led

to cutbacks from anticipated expenditure, which has particularly impacted capital expenditure

(which fell from US$33.8 million in 2008/2009 to US$31.8 million in 2009/2010). As a result of

unfulfilled revenue projections the commitment expenditure was US$292.7 million, significantly

lower than the appropriation of US$ 371.9 million.

In reaction to this, we have put in place a Project Budget for the 10/11 Budget to channel uncertain

concession revenues into specific capital investments. If concession revenues materialize it will

provide additional investment expenditure and disperse the benefits from concessions through the

wider economy. If they do not materialize it will not impact the Core Budget, which we will ensure

contains adequate investment through a capital expenditure minimum rule.

Going forward, large revenues from concessionary enterprises in enclave, often non-renewable

sectors pose a particular fiscal challenge for Liberia. It is clear that revenues from non-renewable

resources should be invested so that future generations of Liberians can share in our country’s

wealth. Meanwhile the fact that these large fiscal revenues from economic activity in enclave

sectors that are relatively cut off from the rest of the economy, means that the effective use of these

fiscal revenues to develop the rest of the economy is the best way to share the benefits of this

enclave economic activity among all Liberians.

We propose a new fiscal rule, therefore, to channel all fiscal revenues from non-renewable enclave

economic activity towards investment spending that will benefit the wider economy and future

generations. In support of this, the Ministry of Planning and Economic Affairs is developing a Public

Sector Investment Plan (based on sector plans in key areas) which will increase the focus on

investment spending and guide these expenditures to be strategic and complementary

• Pay Strategy: The cost of personnel has risen between the 2008/2009 and the 2009/2010 budgets

at a rate faster than the increase in the tax receipts. As a result it has increased as a proportion of

40

tax revenue from 45.5% to 50.7%; it is expected to further increase in the 2010/2011 budget to

57.8% of tax revenue. The CSA pay strategy was intended to set the 2010/2011 wage bill between

40% and 45% of tax revenues and then see it reduce by at least 1% per year until it reached around

a quarter of tax revenues. While the value compared to overall revenue has fallen, most likely due

to a greater weight of non-tax revenues, this increase represents a challenge to the Government as

the wage bill cannot continue to rise in an unsustainable way.

The inclusion of a fiscal rule on investment may mitigate some of the effects of an increasing drift

towards personnel expenditure, however does not entirely overcome the concern. We will implement

the fiscal aspects of the CSA pay strategy, to ensure that the ratio of the pay bill to tax revenue falls by

one percentage point each year.

2. End of Cash Based Balanced Budget: Now that Liberia has reached the HIPC completion point, the

government intends to shift from a “no borrowing” policy, as was required under the HIPC

arrangement, to the resumption of borrowing in order to finance its national reconstruction and

development drive. Such borrowing will be consistent with maintaining a sustainable debt position

beginning FY2010/11. The development of a domestic debt market through sale and issuance of

treasury bills is underway, coupled with new responsibilities of the Debt Management Unit as required

by the PFM Law and Regulations (including the monitoring of SOEs’ borrowing), operations of the DMU

have now shifted from being reactive to being proactive.

The end of the cash based balanced budget provides an opportunity for Liberia to have greater

discretion and flexibility in the formation of fiscal policy, however also necessitates that measures be

implemented to ensure that borrowing controlled and sustainable.

As described in the Debt Management Strategy (DMS), all loans (including to SOEs) approved and

monitored by the Debt Management Committee and to adhere to the reporting requirements set out in the

PFM. The Government will also implement and enforce fiscal rules as laid out in the Debt Management

Strategy. These fiscal rules include:

• Hold the level of debt stock (including the debt held by SOEs) below or at 60%.

• An annual borrowing limit for Central Government based on GDP – set at US$ 46m in FY 2010/11;

• Earmark borrowing only for investment purposes, to ensure intergenerational fairness in the budget

process.

To further strengthen Debt Management, the Government is committed to implementing the following:

• Fully and vigorously implement its National Debt Management Strategy;

• Closely work with the IMF and the World Bank to update and reconcile its data with creditors;

• Build the institutional and professional capacity of the Debt Management Unit (DMU) in the Ministry

of Finance;

3. Targeting Government Spending at Government Priorities.: A recent study by the World Bank

attested that the links between a Poverty Reduction Strategy (PRS) and the budget, whether at the

formulation, execution, or reporting stage, are integral to the successful implementation of the PRS and

41

vital for strengthening government accountability. According to this study4 when the two systems are

well integrated, three benefits are likely to emerge:

• PRS priorities are more likely to be implemented as planned;

• Spending agencies can be held to better account for performance;

• Parliament can have an increased role in monitoring PRS outcomes;

Though significant challenges appeared to link planning and budgeting, there is a legal framework to

remove fractures in all planning and budgeting process. Reporting on the budget is also enforced by law.

The government is committed to strengthening the links between policy, medium-term planning and

budgeting and will implement the Medium Term Expenditure Framework (MTEF) over the next two years.

The Cabinet has endorsed an MTEF Strategy and Action Plan in the 09/10 fiscal year.

With regard to budget and actual outturns of PRS focused expenditures the 2009/10 Budget about 60 per

cent of the aggregated expenditure is allocated to PRS related expenditures compared to 58 per cent of

fiscal year 2008/09. It should be noted that this has been achieved despite unsatisfactory revenue outturn.

As part of the new PRS (National Vision) the development of sector plans aligned to the PRS should ensure that

budget priorities are more closely aligned with poverty reduction objectives. Such sector plans are also

necessitated by MTEF and the PSIP. In addition, we will ensure targeted government spending is reaching its

intended recipients through a new program of grassroots monitoring: the Public Expenditure Survey, which

aims to include people from outside of government in monitoring spending.

Others methods of providing improved monitoring of outputs of government spending include:-

• Activity-based deliverables for the new PRS (National Vision) prepared by December 2010, to be used as

measurable objectives for Spending Entities in 2010/2011 Budget

• Joint monitoring and evaluation by the Ministry of Planning and Economic Affairs and the Ministry of

Finance of the budget, PRS deliverables and the reporting of policy outputs from each Spending Entity in

Annual and Mid-year Fiscal outturns.

Finally, while some investment may be provided by donor groups, it is a necessary role of government to

provide the framework for investment in public services and ensure that large revenues earned from

concessions builds the overall economy to ensure both societal and intergenerational fairness.

4 Linking PRS with National Budgets September 2008, The World Bank

42

4. CONCLUSION AND OUTLOOK

During FY 09/10, a total of US$ 287.7 million was generated, indicating an increase of 22% over the

preceding year performance but lower by the same magnitude than the original budget. In terms of the

composition of revenue sources, the original budget envisaged a share of 67 percent from taxes, 27 from

non tax and 6 percent from external grants. This was compared to 84 percent taxes, 6 percent in non tax

and 10 per cent grants contribution in the preceding year’s revenue performance. Nevertheless, actual

performance in fiscal year 2009/10 was 78 percent of returns in tax revenue, 18 percent in non tax and 5

percent in grants. Revenue from concessionary income from Bong Mines/China Union accounted for both

large gains and shortfalls in the non-tax revenue. The annual budget initially incorporated US$40 million

from this source but realized only US$ 20 million. This outcome highlights the fact that both non tax and

grant sources are unreliable and contingent on various factors.

In line with the cash based balanced budget principle the overall expenditure performance was driven by

the revenue performance. Thus, despite a 25% increase of the total appropriation, the allotment and

commitment showed a rise of only 17.6% and 17% respectively. As a result allotment from the

appropriation remained as low as 83%; the share of commitment was 79% of the appropriation. Total

allotment of the fiscal year showed an increase of 18% over the preceding fiscal year. General Claims, and

Economic Services Sector accounted for these increases as the Government devoted more attention to

county developments and infrastructure building.

To achieve objectives envisaged in the PRS government expenditure policy is designed to finance critical

areas identified in the strategy. With this objective in mind, during the fiscal year a total of US$ 119.3

million (32%) has been allocated to the basic PRS sectors such as health, education, roads, agriculture and

water and sanitation. However, their share from the total allotment and commitment were relatively lower.

Allotment and commitment to the aforesaid sectors remained 31.6 % of the total allotment and 29% of the

total commitment. Obviously these sectors incorporate relatively more capital expenditures than others,

thus it is evident that capital expenditure is the first victim in the process of aligning expenditures with

available resources.

The fiscal year 2009/10 revenue projection was more ambitious and encompasses 57% growth from the

previous year revenue performance. On top of that the National legislation increased the proposed budget

from US$ 347.0 million to US$ 371.9 million. This was an upward adjustment of US$24.9 million, or 7.2

percent above the Ministry of Finance proposal. The revenue forecast also incorporated non–taxes and

external grants revenue which includes the uncertain concessional revenues. Actual collection, however,

was nearly 22% below the original budget. This was largely due to poor collection of non-tax revenue

which is half the original budget owing to a decline of 80% in concessional payments.

Over the past two years the government committed to adopt cash–based balanced budgeting as part of its

fiscal austerity measures. The Ministry of Finance was forced to match shortfalls in expected resources by

cuts in expenditure, rather than covering the shortfall by domestic borrowing, which could be inflationary.

Moving revenue and expenditure outturn closer to the original budget is an indicator of a country’s credible

public finance management.. According to the 2007 Public Expenditure and Financial Accountability

(PEFA) Performance Scores, Liberia rated “B” for Aggregate expenditure outturn compared with original

approved budget; “D” for composition of expenditure outturn compared with original approved budget and

“A” for aggregate revenue outturn compared with original approved budget.

43

It should be noted that such results were generated from prudent performances in the years prior to FY

2008/09. The problems in FYs 2008/09 and 2009/10 have their justifications however; the country’s

development partners, particularly the World Bank, are rule driven.. Consequently, to maintain the

country’s track record in budget credibility and promote its smooth relationship with its development

partners it is important to be vigilant in addressing issues related to budget outturn.

One could argue that having ambitious revenue projection is recommended to add further incentive on

revenue collecting institutions. But pertinent to the country’s relation with its development partners it is

necessary to consider the potential to attain what is projected. Given the government’s cash based budget

management it is crucial to give more emphasis on revenue projection as expenditure follows actual

collection.

To this end, it is important to create awareness among the various stakeholders in the budget preparation

and approval, including the legislators, of the need to use realistic budget projections.

44

ANNEX OF PUBLIC FINANCE TABLES

DESCRIPTION

ORIGINAL

BUDGET

Inc. at

Budget

Hearing

TOTAL

APPROVED

BUDGET

RISK

ADJUSTED

BUDGET

TOTAL REVENUE BASE 323,697 24,058 347,755 283,809 274,992

Internal Tax Revenue 95,088 8,145 103,232 87,026 105,691

Internal Other Revenue (Non-tax) 33,772 4,229 38,001 28,621 30,213 Maritime Revenue 16,028 5,245 21,272 20,472 16,299

Internal Revenue SDF'S 17,367 3,000 20,367 16,967 10,855 Int. Rev. Concessionary 1Time Pmts. 63,000 - 63,000 40,000 20,100 Customs Tax Revenue 98,443 3,440 101,883 90,723 91,835

GRANTS 23,338 (2,000) 21,338 25,500 13,009

TOTAL REVENUE FORECAST 347,035 22,058 369,094 309,309 288,001

Uncommitted Revenue from FY08/09 - 2,815 7,730 2,815 7,730 -

TOTAL REVENUE BUDGET 347,035 24,873 376,824 312,124 295,731

TOTAL REVENUE 347,035 22,058 369,094 309,309 287,989

TAX REVENUE 226,925 19,830 246,755 215,188 224,679

TAXES ON INCOME & PROFITS 54,197 - 54,197 49,730 70,160

PROPERTY TAXES 2,052 - 2,052 2,012 1,655

TOTAL TAXES ON GOODS & SERVICES(EXCL. Motor Vehicle & Maritime) 52,339 6,398 58,736 50,236 48,748

Taxes on Goods & Services (General) 16,278 - 16,278 9,878 10,913

Excise Taxes 5,928 - 5,928 5,428 9,127

Taxes on Specific Services - - - - 2

MOTOR VEHICLE TAXES 2,555 1,153 3,708 2,908 2,557

OTHER TAXES AND PERMSSION ON USE OF GOODS 11,551 - 11,551 11,551 9,850

MARITIME REVENUE 16,028 5,245 21,272 20,472 16,299

TAXES ON INTERNATIONAL TRADE & TRANS. 98,443 3,440 101,883 90,723 91,835

CUSTOMS & OTHER IMPORT DUTIES 92,716 3,000 95,716 87,356 91,384

TAXES ON EXPORTS 5,727 440 6,167 3,367 450

OTHER TAXES 19,895 9,992 29,886 22,486 12,282

SOCIAL DEVELOPMENT FUNDS 17,367 3,000 20,367 16,967 10,855

OVERDUE TAXES 2,528 6,992 9,519 5,519 1,427 -

GRANTS 23,338 (2,000) 21,338 25,500 13,009 GRANTS FROM FOREIGN COUNTRIES - - - - -

GRANTS FROM INTERNATIONAL ORGANIZATIONS 23,338 (2,000) 21,338 25,500 13,009

OTHER REVENUE 96,772 4,229 101,001 68,621 50,301

PROPERTY INCOME 85,151 4,229 89,379 58,179 40,565

FEES & CHARGES 5,354 - 5,354 4,174 4,330

FINES FOR CRIMINAL & ECON. OFFENCE 2,658 - 2,658 2,658 1,796

MISCELLANEOUS & UNIDENTIFIED REV. 3,610 - 3,610 3,610 3,610

GRAND SUMMARYREVENUE PERFORMANCE REPORTFY 2009/10 YEAR ENDED OUTLOOK

FY END

ACTUAL AT

JUNE 30, 2010

45

APPROPRIATION

ADJUSTED

APPROPRIATION

CUMMULATIVE

ALLOTMENT

CUMMULATIVE

COMMITMENT

CUMMULATIVE

CASH EXP

BALANCE IN

ALLOTMENT

BALANCE IN

COMMITMENT

Balance in

Appropriation

PUBLIC AND ADMINISTRATIVE SERVICES SECTOR

NATIONAL LEGISLATURE 21,230,624 22,016,031 20,926,273 20,907,448 20,603,441 18,825 304,007 1,089,758

MINISTRY OF STATE 7,272,000 8,939,187 8,903,303 8,782,556 8,183,674 120,747 598,882 35,884

VICE PRESIDENT OFFICE 1,220,428 1,281,235 1,088,080 1,065,127 1,025,524 22,953 39,603 193,155

MINISTRY OF FINANCE 15,046,937 15,170,436 14,206,385 13,869,051 13,205,655 337,334 663,396 964,051

MIN. OF INTERNAL AFFAIRS 8,896,079 9,706,079 8,333,595 7,790,412 7,790,412 543,183 - 1,372,484

MINISTRY OF PLANNING 2,239,800 2,389,800 2,233,865 2,128,930 1,773,280 104,935 355,650 155,935

CIVIL SERVICE AGENCY 1,885,400 2,073,724 1,626,304 1,598,695 1,543,619 27,609 55,076 447,420

GENERAL SERVICES AGENCY 1,664,400 1,812,937 1,333,916 1,293,461 1,242,321 40,455 51,140 479,021

MINISTRY OF INFORMATION 1,744,790 1,885,717 1,366,921 1,314,474 952,197 52,447 362,277 518,796

GENERAL AUDITING COMMISSION 3,700,000 3,900,000 3,617,937 3,615,617 3,337,493 2,320 278,124 282,063

MIN. OF FOREIGN AFFAIRS 9,547,000 9,633,705 8,414,870 8,252,704 8,252,704 162,166 - 1,218,835

L I P A 937,400 1,015,636 706,637 640,211 353,702 66,426 286,509 308,999

NATIONAL ELECTIONS COMMISSION 6,582,229 6,940,041 5,805,925 5,796,650 5,796,650 9,275 - 1,134,116

L I S G I S 3,814,230 4,237,730 3,716,777 3,660,892 3,289,119 55,885 371,773 520,953

BUREAU OF STATE ENTERPRISE 113,621 115,460 102,159 102,159 88,579 - 13,580 13,301

NATIONAL INVESTMENT COMMISSION 1,025,000 1,031,000 819,957 819,947 819,947 10 - 211,043

GOVERNANCE COMMISSION 1,000,000 1,000,000 889,182 889,182 753,684 - 135,498 110,818

PUBLIC PROCUMENT AND CONCESSION 970,000 970,000 818,101 780,656 618,119 37,445 162,537 151,899

C N D R A 482,400 547,141 468,633 419,243 223,665 49,390 195,578 78,508

ENVIRONMENTAL PROTECTION AGENCY 651,480 651,480 562,062 562,054 330,499 8 231,555 89,418

LIBERIA BROADCASTING SYSTEM 958,135 958,135 558,290 558,290 461,958 - 96,332 399,845

LIBERIA ANTI- CORRUPTION COMMISSION 1,400,000 1,400,000 1,364,933 1,363,673 1,145,802 1,260 217,871 35,067

PASS TOTAL 92,381,953 97,675,474 87,864,105 86,211,432 81,792,045 1,652,673 4,419,387 9,811,369

RULE OF LAW & PUBLIC SAFETY

THE JUDICIARY 11,662,722 12,132,722 10,672,186 10,654,767 10,550,650 17,419 104,117 1,460,536

MINISTRY OF JUSTICE 20,270,000 21,384,029 18,882,497 18,450,867 18,228,036 431,630 222,831 2,501,532

MINISTRY OF NATIONAL DEFENSE 8,285,400 8,374,400 7,401,446 7,372,944 7,370,794 28,502 2,150 972,954

N S A 1,638,400 1,638,400 1,506,678 1,506,670 1,380,290 8 126,380 131,722

S S S 3,947,800 4,022,800 4,012,296 4,008,872 3,280,132 3,424 728,740 10,504

MINISTRY OF NATIONAL SECURITY 950,000 994,298 891,703 886,958 616,293 4,745 270,665 102,595

N B I 494,600 494,600 437,796 437,781 293,868 15 143,913 56,804

HUMAN RIGHTS COMMISSION 750,000 613,156 566,827 429,411 269,419 137,416 159,992 46,329

RLPS TOTAL 47,998,922 49,654,405 44,371,429 43,748,270 41,989,482 623,159 1,758,788 5,282,976

SOCIAL & COMMUNITY SERVICES SECTOR

MINISTRY OF EDUCATION / CENTRAL 26,961,800 30,068,439 25,107,269 23,955,989 23,882,749 1,151,280 73,240 4,961,170

UNIVERSITY OF LIBERIA 7,500,000 7,500,000 6,893,442 6,893,441 6,893,441 1 - 606,558

MONROVIA CONSOLIDATED SCHOOL SYS 2,038,765 2,500,083 2,219,562 2,195,838 2,195,838 23,724 - 280,521

BOOKER WASHINGTON INSTITUTION 1,646,891 1,646,891 1,527,110 1,527,106 1,523,142 4 3,964 119,781

FORESTRY TRAINING INSTITUTION 65,345 65,345 60,060 60,060 51,484 - 8,576 5,285

CUTTINGTON UNIVERSITY 530,482 530,482 487,373 487,183 439,155 190 48,028 43,109

NATIONAL COMM. ON HIGHER EDUCATION 1,459,576 609,576 548,883 548,835 548,835 48 - 60,693

W V S TUBMAN TECHNICAL COLLEGE 2,500,000 2,500,000 2,294,454 2,294,330 2,161,931 124 132,399 205,546

WEST AFRICAN EXAMINATION COUNCIL 600,000 740,000 692,627 690,113 591,197 2,514 98,916 47,373

EDUCATION SECTOR TOTAL 43,302,859 46,160,816 39,830,780 38,652,895 38,287,771 1,177,885 365,124 6,330,036

MINISTRY OF HEALTH & WELFARE 20,146,400 20,671,400 14,879,503 14,049,926 14,020,269 829,577 29,657 5,791,897

J F K MEDICAL CENTER 6,100,000 6,100,000 5,440,556 4,394,911 4,394,911 1,045,645 - 659,444

PHEBE HOSPITAL 600,000 600,000 551,960 508,248 489,347.00 43,712 18,901 48,040

L I B R 475,630 475,630 367,640 365,200 246,318 2,440 118,882 107,990

MIN. OF YOUTH & SPORTS 4,580,000 4,639,582 3,220,269 3,077,264 2,841,399 143,005 235,865 1,419,313

N F A A 90,000 101,359 91,223 90,567 67,619 656 22,948 10,136

A I T B 260,000 235,986 193,614 184,761 125,861 8,853 58,900 42,372

MINISTRY OF GENDER & DEV 1,335,073 1,398,642 865,531 753,159 631,277 112,372 121,882 533,111

MONROVIA CITY CORPORATION 1,002,978 1,002,978 919,975 919,665 919,665 310 - 83,003

L R R R C 677,249 677,249 588,074 582,198 557,112 5,876 25,086 89,175

NATIONAL COMMISSION ON DISABILITIES 300,000 300,000 251,179 251,057 222,145 122 28,912 48,821

NATIONAL VETERAN BUREAU 350,000 350,000 309,606 309,390 244,718 216 64,672 40,394

LIB. AGENCY FOR COMMUNITY EMPOWERMENT. 550,000 550,000 422,932 421,933 402,771 999 19,162 127,068

NATIONAL HOUSING AUTHORITY 500,000 500,000 449,447 449,198 410,204 249 38,994 50,553

SUB TOTAL 36,967,330 37,602,826 28,551,509 26,357,477 25,573,616 2,194,032 783,861 9,051,317

-

S&CSS TOTAL 80,270,189 83,763,642 68,382,289 65,010,372 63,861,387 3,371,917 1,148,985 15,381,353

MINISTRY OF FINANCE

OFFICE OF THE DEPUTY MINISTER FOR EXPENDITURE & DEBT MANAGEMENT

DETAIL OF EXPENDITURE PERFORMANCE

COVERING THE PERIOD JULY 1, 2009 - SEPT. 30, 2010


46

APPROPRIATION

ADJUSTED

APPROPRIATION

CUMMULATIVE

ALLOTMENT

CUMMULATIVE

COMMITMENT

CUMMULATIVE

CASH EXP

BALANCE IN

ALLOTMENT

BALANCE IN

COMMITMENT

Balance in

Appropriation

MINISTRY / AGENCY

ECONOMIC SERVICES SECTOR

MINISTRY OF AGRICULTURE 7,250,000 7,431,188 4,367,846 4,233,472 3,797,996 134,374 435,476 3,063,342

MINISTRY OF LANDS & MINES 3,950,000 4,302,150 3,635,567 3,493,996 3,083,668 141,571 410,328 666,583

MINISTRY OF COMMERCE 1,900,000 2,009,789 1,346,025 1,308,499 1,163,338 37,526 145,161 663,764

MINISTRY OF POSTAL AFFAIRS 2,000,000 2,010,057 1,321,239 1,288,329 1,004,677 32,910 283,652 688,818

C D A 252,223 252,223 214,788 213,717 122,370 1,071 91,347 37,435

MINISTRY OF TRANSPORT 2,350,000 2,371,500 1,868,781 1,831,826 1,175,493 36,955 656,333 502,719

FORESTRY DEVELOPMENT AUTHORITY 3,500,000 3,500,000 2,857,656 2,848,922 2,467,368 8,734 381,554 642,344

MINISTRY OF LABOUR 2,543,783 2,573,909 1,664,801 1,557,832 1,416,461 106,969 141,371 909,108

MINISTRY OF PUBLIC WORKS 39,900,000 40,000,000 30,780,211 20,851,822 20,117,355 9,928,389 734,467 9,219,789

LIBERIA INDUSTRIAL PROPERTY SYSTEM 50,000 50,000 41,750 41,288 18,416 462 22,872 8,250

LIBERIA COPY RIGHT OFFICE 100,000 100,000 85,857 83,269 51,793 2,588 31,476 14,143

SUB TOTAL 63,796,006 64,600,816 48,184,521 37,752,972 34,418,937 10,431,549 3,334,035 16,416,295

PUBLIC CORPORATIONS

LIBERIA WATER & SEWER CORP 524,025 524,025 471,622 452,233 429,064 19,389 23,169 52,403

L P M C 525,000 525,000 384,803 379,803 334,989 5,000 44,814 140,197

NATIONAL TRANSIT AUTHORITY 500,000 175,000 125,000 125,000 114,712 - 10,288 50,000

LIBERIA ELECTRICITY CORPORATION 2,000,000 2,000,000 1,605,820 1,544,523 1,544,523 61,297 - 394,180

MONROVIA TRANSIT AUTHORITY 2,154,538 2,479,538 2,179,538 2,178,777 2,178,777 761 - 300,000

LIBERIA TELECOMMUNICATION CORPORATION 2,300,000 2,150,000 1,505,749 1,505,746 1,286,469 3 219,277 644,251

NATIONAL HOUSING & SAVING BANK 50,000 50,000 45,433 45,153 45,153 280 - 4,567

LIBERIA INDUST. FREEZONE AUTHORITY 100,000 100,000 81,239 81,239 51,022 - 30,217 18,761

LIBERIA - LIBYAN HOLDING COMPANY 255,000 805,000 738,750 738,750 718,750 - 20,000 66,250

N I C O L 168,746 168,746 133,193 133,192 105,414 1 27,778 35,553

LIBERIA RUBBER DEVELOPMENT AUTHORITY 138,641 138,641 98,888 93,888 93,006 5,000 882 39,753

LIBERIA NATIONAL LOTTERY 50,000 50,000 24,994 18,044 13,526 6,950 4,518 25,006

BUREAU OF MARITIME 3,236,919 3,236,919 3,236,919 2,736,919 - 500,000 -

SUB TOTAL 8,765,950 12,402,869 10,631,948 10,533,267 9,652,324 98,681 880,943 1,770,921

ESS & PC TOTAL 72,561,956 77,003,685 58,816,469 48,286,239 44,071,260 10,530,230 4,214,979 18,187,216

OTHER GENERAL CLAIMS (BASE BUDGET) 5-5-01-00

PERSONNEL

MINIMUM SALARY ADJUSTMENT FUND 8,500,000 1,059,958 15,220 15,220 15,220 - - 1,044,738

HONORARIUM - - - -

GENERAL ALLOWANCE EQUALIZATION FUND 150,000 47,767 6,000 6,000 6,000 - - 41,767

PROFESSIONAL 64,000 64,000 64,000 64,000 - - -

RETIREMENT BENEFITS FOR FORMER LEGISLATORS 250,000 210,750 208,250 208,250 100,000 - 108,250 2,500

SAVERANCE PAYMENTS FOR NCDDRR CLOSURE 645,000 603,778 603,778 603,777 603,777 1 - -

SAVERANCE PAYMENTS 511,500 511,500 511,500 511,500 - - -

SUB TOTAL 9,545,000 2,495,253 1,411,248 1,408,747 1,300,497 2,501 108,250 1,084,005

CONTRIBUTIONS

PENSION CONTRIBUTIONS 6,750,000 6,954,028 5,571,051 5,571,051 5,570,227 - 824 1,382,977

BENEFITS FOR FORMER OFFICIALS 250,000 66,269 60,000 60,000 50,471 - 9,529 6,269

GOL CONTRIBUTION TO NSS&WC 500,000 425,000 - - - - 425,000

SUB TOTAL 7,500,000 7,445,297 5,631,051 5,631,051 5,620,698 - 10,353 2,900,751

GOODS AND SERVICES - -

UNMIL AIRLIFT 370,000 379,079 315,585 315,585 315,585 - - 63,494

PAYROLL DECENTRALLIZATION 1,900,000 1,139,807 724,120 724,120 705,758 - 18,362 415,687

REFUGEE REPATRIATION & RELATED COSTS 100,000 28,050 - - - - 28,050

ELECTRICITY(INFAVOR OF L E C ) 900,000 801,763 756,763 756,763 756,763 - - 45,000

SPECIALIZED MATERIAL - - - -

WATER & SEWAGE 200,000 170,000 - - - - 170,000

TRADE AGREEMENT LEVY / ECOWAS 3,500,000 3,445,224 3,445,224 3,445,224 3,204,530 - 240,694 -

CENTRAL BANK OF LIBERIA FEES 1,300,000 1,383,891 1,335,203 1,335,203 1,335,203 - - 722,231

CELEBRATIONS, COMMEMORATION & STATE VISIT 500,000 371,104 360,000 360,000 360,000 - -

CONTINGENCY RESERVED FUND 1,000,000 50,000 50,000 50,000 50,000 - - -

NATIONAL DISASTER RELIEF FUND 250,000 125,000 - - - - 125,000

SUB TOTAL 10,020,000 7,893,918 6,986,895 6,986,895 6,727,839 - 259,056 907,023 Source: Department of Expenditure, Ministry of Finance

47

APPROPRIATION

ADJUSTED

APPROPRIATION

CUMMULATIVE

ALLOTMENT

CUMMULATIVE

COMMITMENT

CUMMULATIVE

CASH EXP

BALANCE IN

ALLOTMENT

BALANCE IN

COMMITMENT

Balance in

Appropriation

TRANSFERS AND SUBSIDIES

SUPPORT TO LIBERIAN BUSINESSES 2,000,000 1,700,000 - - - - - 1,700,000

SOCIETY GENERAL DE' SEVERANCE (SGS) 500,000 550,055 550,055 550,055 550,055 - - -

SUBSIDY TO NATIONAL HOUSING AND BANK 200,000 175,000 75,000 74,514 74,514 486 - 100,000

RICE STABILIZATION FUND 500,000 420,160 400,000 400,000 400,000 - - 20,160

MCC-WB COUNTERPART FUNDING 200,000 182,500 - - - - 182,500

TRANSFER TO LIBERIA EXTRACTIVE INDUSTRIES TRANS. IN.200,000 200,000 200,000 200,000 200,000 - - -

TRANSFER TO LAND COMMISSION 600,000 525,000 525,000 525,000 525,000 - - -

TRANSFER TO TRUTH & RECON.COMMISSION (CLOSING COST)600,000 850,000 850,000 850,000 850,000 - - -

TRANSFER TO NCDDRR (CLOSING COST) 306,000 215,921 215,921 215,921 215,921 - - -

NATIONAL IRON ORE COMPANY - 24,195 24,195 24,192 24,192 3 - -

LAW REFORM COMMISSION - 415,990 415,990 415,990 415,990 - - -

NATIONAL AIDS COMMISSION 100,000 66,000 66,000 66,000 66,000 - -

PROTECTION OF INTELLECTUAL RIGHTS FOR LIBERIAN ARTISTS100,000 85,000 - - - -

STIPENDS FOR FINANCIAL MANAGEMENT TRAINEES 450,000 409,750 409,750 409,750 409,750 - - -

VACATION JOBS/COMMUNITY SERVICES 300,000 255,000 - - - - 255,000

TRANSFER TO L ICPA 75,000 75,000 64,750 64,750 64,750 - - 10,250

SOCIAL CONTRI. TO GRAND CAPE MOUNT (NOCAL) 300,000 300,000 300,000 300,000 300,000 - - -

SOCIAL CONTRI. RIVER CESS (NOCAL) 300,000 300,000 300,000 300,000 300,000 - - -

SUB TOTAL 6,731,000 6,749,571 4,396,661 4,396,172 4,396,172 489 - 265,250

CAPITAL ACQUISITIONS -

SUBSTANTIAL MAINTENANCE AND RENOVATION 3,000,000 2,030,000 - - -

SUB TOTAL 3,000,000 2,030,000 - - -

CAPITAL TRANSFERS

GOL COUNTY DEVELOPMENT FUND 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 - - -

NIMBA COUNTY (MITTAL) 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 - - -

BONG COUNTY (MITTAL) 1,000,000 1,000,000 1,000,000 1,000,000 500,000 - 500,000 -

GRAND BASSA COUNTY (MITTAL) 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 - - -

MARGIBI (FIRESTONE) 160,800 160,800 160,800 160,800 160,800 - - -

MONTSERRADO (FIRESTONE) 79,200 79,200 79,200 79,200 79,200 - - -

SITE DEVELOPMENT AND CONST. WORKS - 935,000 - - - - 935,000

GRAND BASSA (NOCAL) 150,000 150,000 150,000 150,000 - 150,000

SINOE (NOCAL) 100,000 100,000 100,000 100,000 - 100,000

SINOE/GRAND KRU (NOCAL) 100,000 100,000 100,000 100,000 100,000 - - -

RIVER CESS (NOCAL) 250,000 250,000 250,000 250,000 250,000 - - -

MONTSERRADO (NOCAL) 150,000 150,000 150,000 150,000 150,000 - - -

BONG MINES: COMMUNITY DEVELOPMENT FUNDS3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 - - -

WESTERN CLUSTER: COMMUNITY DEVELOPMENT FUNDS3,000,000 2,550,000 - - - - 2,550,000

FOREST CONCESSIONS: COMMUNITY DEVELOPMENT FUNDS9,000,000 2,972,218 2,110,892 1,522,149 1,522,149 588,743 - 861,326

SUB TOTAL 25,490,000 19,947,218 15,600,892 14,262,149 588,743 750,000 4,346,326

PAYMENT OF PRINCIPAL TO CENTRAL BANK OF LIBERIA3,609,779 4,726,462 4,726,462 4,726,462 4,484,974 - 241,488 -

PRE-NTGL SALARY ARREARS 2,950,000 2,681,028 1,101,578 1,101,578 1,001,555 - 100,023 1,579,450

GOL RENTAL ARREARS 500,000 427,882 - - - - 10,272,102

FOREIGN MISSION ARREARS 150,000 127,500 125,000 125,000 125,000 - -

PAYMENT TO OTHER DOMESTIC DEBT HOLDERS 4,200,000 3,398,896 3,398,896 3,398,896 2,983,658 - 415,238 -

SUB TOTAL 11,409,779 11,361,768 9,351,936 9,351,936 8,595,187 - 756,749 11,851,552

PAYMENT OF PRINCIPAL TO MULTILATERAL ORGANIZATIONS5,000,000 5,793,530 5,793,530 5,793,014 4,999,902 516 793,112 -

SUB TOTAL 5,000,000 5,793,530 5,793,530 5,793,014 4,999,902 516 793,112 -

GENERAL CLAIMS (BASE BUDGET ) TOTAL78,695,779 63,811,575 49,267,233 33,567,815 45,902,444 592,249 2,677,520 21,354,907

GRAND TOTAL 371,908,799 371,908,781 308,701,525 291,931,003 277,616,619 16,770,228 14,219,658 70,017,821

Department of Expenditure, Ministry of Finance

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