His comments come on the heels of consistent damning report of financial impropriety and malfelsance.
"Accounting in the public sector has not been the best," Kan-Dapaah said at the launch of the 2016 Citizens' Budget presented by the Financial Accountability and Transparency- Africa (FAT-Africa) held in Accra.
"The Auditor General has always said that when he goes out there to audit in the public sector, he is not able to get the information that requires to be able to come out with what we call a complete balance sheet system; and this is because the financial statement are not prepared by the Ministries' departments and agencies and it is no better at the assembly level," he added.
He said Ghana has a challenge if "a ministry cannot tell you how much it received and how it spends that money during the course of the year."
Kan-Dapaah said the country must re-examine sanctions for public officials who are cited for poor financial management by the Auditor General.
"We need to re-examine the sanction regime and it must be severe enough to deter others from repeating it."
Kan-Dapaah served as cabinet minister for eight under former president Kufour's administration. He served in parliament for 16 years and served as the chairman of PAC for four years.