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REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF DISTRICT ASSEMBLIES' COMMON FUND AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016 This report has been prepared under Section 11 of the Audit Service Act, 2000 for presentation to Parliament in accordance with Section 20 of the Act. Daniel Yaw Domelevo Auditor-General Ghana Audit Service 30 June 2017

This report can be found on the Ghana Audit Service website: www.ghaudit.org For further information about the Ghana Audit Service, please contact: The Director, Communication Unit Ghana Audit Service Headquarters Post Office Box MB 96, Accra. Tel: 0302 664928/29/20 Fax: 0302 662493/675496 E-mail: [email protected] Location: Ministries Block 'O' © Ghana Audit Service 2017

TRANSMITTAL LETTER

My Ref. AG.01/109/Vol.2./103 Office of the Auditor-General Ministries Block ‘O’ P. O. Box M96 Accra.

Tel. (0302) 662493 Fax (0302) 675496

30 June 2017

Dear Hon. Speaker

REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF THE DISTRICT ASSEMBLIES’ COMMON FUND (DACF) AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016

I have the privilege and honour to submit to be laid before Parliament, my report on the Management and Utilisation of the District Assemblies’ Common Fund and Other Statutory Funds for the financial year ended 31 December 2016. This report supplements my main report on the operations of the Metropolitan, Municipal and District Assemblies (MMDAs) covering the same period.

2. The report covers the management and utilization of the District Assemblies’ Common Fund (DACF) and District Development Facility (DDF) which were provided by the Common Fund Administrator and Ministry of Local Government and Rural Development respectively for mostly physical development activities of MMDAs. The report which has been compiled from unresolved and outstanding matters contained in management letters issued by my office during the 2016 financial year, highlights the significant cases and issues which came out of the routine (interim and final) and special audits carried out under my direction and supervision.

3. The outstanding and unresolved issues were attributed to deficiencies and weaknesses in internal controls in the operations of the Assemblies. Irregularities such as non-compliance with existing legislative framework and instruments, managerial lapses and weak monitoring procedures at both the ministerial, legislative and

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds i administrative levels of the Assemblies were still prevalent as evidenced in the management letters.

4. The deficiencies noted in the operations of the Assemblies created avenues for some officials to mismanage funds and resources of the Assemblies to a financial value of approximately GH¢70,173.645.97. The lapses and deficiencies were identified in transactions under account areas such as cash management, contract, procurement and store, and tax irregularities which have been summarized and consolidated in this report.

5. I have in my previous report on the Management and Utilisation of the DACF, recommended to the Honourable Minister of Local Government and Rural Development to set up effective monitoring and follow-up mechanisms to track actions to be taken on conclusions and recommendations made in my audit reports and management letters. I also recommended punitive actions against management and staff of Assemblies who indulge in the mismanagement of resources brought under their care. The widespread instances of malfeasance and mismanagement of finances and resources of the Assemblies by public officials in this report may mean that the Ministry has not significantly implemented the admonitions and recommendations in my previous reports.

6. I therefore appeal to the Honourable Minister to use her good office to ensure that the recommendations in my reports are implemented to the letter by responsible officers in order to improve and step up the standard of financial administration in the Assemblies and forestall the avoidable financial and material losses which result from these anomalies and control weaknesses.

7. I wish to express my profound gratitude to the Chief Executive Officers, Coordinating Directors and staff of the respective MMDAs for the cooperation and support they gave to my field officers during the audits.

8. I finally, acknowledge the immense contributions made by my staff towards the production of this report.

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Yours faithfully,

DANIEL YAW DOMELEVO (AUDITOR-GENERAL) THE RIGHT HONOURABLE SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA

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TABLE OF CONTENTS

Paragraph Page

PART I Mandate, Scope and Objectives 1-4 1-2

PART II Summary of findings and recommendations 5-16 3-7

PART III Details of findings and recommendations Ashanti Region 17-102 8-20 Brong Ahafo Region 103-182 21-33 Central Region 183-222 34-41 Eastern Region 223-293 41-54 Greater Accra Region 294-318 55-59 Northern Region 319-362 60-66 Upper East Region 363-418 67-76 Upper West Region 419-468 76-83 Volta Region 469-580 84-101 Western Region 581-625 102-110

PART IV District Development Facility and the Local 626-729 110-128 Service Delivery and Governance Programme

Appendices 2016 District Assemblies’ Common Fund Allocations Appendix ‘A’ Summary of irregularities according to regions Appendix ‘B’ Summary of irregularities according to MMDAs Appendix ‘C’ 2016 DDF transfer Appendix ‘D' DDF irregularities according to MMDAs Appendix ‘E’

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REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF DISTRICT ASSEMBLIES’ COMMON FUND (DACF) AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016

PART I

MANDATE, SCOPE AND OBJECTIVES Introduction As stipulated by Articles 187(2) and 253 of the 1992 Constitution of Ghana and Part X, Section 121 of the Local Government Act, 1993 (Act 462), the Auditor-General has audited the management and utilisation of the District Assemblies’ Common Fund and Other Statutory Funds of the 216 Metropolitan, Municipal and District Assemblies (MMDAs) for the period 1 January 2016 to 31 December 2016.

2. Significant issues emanating from our management letters on the interim and final audits provided the materials and facts for the report. The issues raised during both audits were formally discussed with the management of the Assemblies and their comments and responses have been considered before concluding this report. Issues considered in this report are only those that came to our attention during the audits and so the weaknesses identified and recommendations made might not be exhaustive.

Scope of audit and objectives 3. I applied the International Standards of Auditing (ISAs), INTOSAI and AFROSAI-E standards of 1992 in the conduct of the audits. My audits were also guided by Section 13 of the Audit Service Act, 2000 (Act 584) which required that I ascertain whether in my opinion:  The accounts have been properly kept;  All public monies collected have been fully accounted for and rules, regulations and procedures are sufficient to provide effective check on the assessment, collection and proper allocation of revenue;  Monies have been expended for the purposes for which they were appropriated and expenditures made as authorized;  Essential records were maintained and the rules and procedures applied were sufficient to safeguard and control the Assemblies’ assets and  Programmes and activities of the Assemblies have been undertaken with due regard to economy, efficiency, and effectiveness in relation to the resources utilized and results achieved.

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4. My audits also ascertained the extent of compliance with applicable laws, regulations and guidelines. These included the Financial Administration Act, 2003 (Act 654), Public Financial Management Act, 2016 (Act 921), Financial Administration Regulations, 2004 (LI 1802), Financial Memoranda for District Assemblies, Public Procurement Act, 2003 (Act 663), Public Procurement (Amendment) Act, 2016 (Act 914), Guidelines on the Utilisation of the District Assemblies’ Common Fund, and the Local Government Act, 1993 (Act 462).

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PART II

Summary of findings and recommendations Introduction 5. The issues in my report on the Management and Utilization of Common Fund and other statutory funds for the 2016 financial year are not significantly different from those of previous years. Management and staff of the Assemblies continued to violate rules and regulations, policies, procedures, and directives etc. which had been put in place to ensure the economic, effective and efficient management of public resources made available to MMDAs. These violations persisted in spite of our recommendations with regards to compliance with the financial regulations and other existing public financial management laws. As a result, the irregularities for the year 2016 of GH¢70,173,645.97 showed a 32 per cent rise of GH¢16,955,282.83 over the 2015 figure of GH¢53,218,363.14. The management letters on the interim and final audits which formed the basis of this report, revealed recurring internal control weaknesses and lapses under our key audit areas of cash management, contract administration, procurement and stores management and tax administration all of which are highlighted in this report.

6. The state of affairs in the management of resources by MMDAs did again show the lack of interest and dedication to duties and responsibilities as well as commitment on the part of the Ministry of Local Government and Rural Development and management of MMDAs in the implementation and enforcement of my audit recommendations towards mitigating infringements of the laws. I also attributed the situation to the non - imposition of sanctions to minimise the violations. I reiterate that effective supervision, monitoring and enforcement of existing statutory and regulatory frameworks, together with imposition of sanctions should be made paramount to curb the infractions. I once again employ the Ministry of Local Government and Rural Development and management of the MMDAs to impose sanctions where necessary to serve as a deterrent to others.

7. I have summarized and provided in the succeeding paragraphs, the key audit findings identified and their related recommendations made. I have also attached as Appendix ‘A’ details of the Common Fund allocations to the Assemblies in the year. I have provided a schedule of the collated source deductions of Assemblies on regional levels by the Administrator of Common Funds to be based on agreements signed between the MMDAs and service providers. The summary on regional basis of irregularities has been provided as Appendix ‘B’ whilst Appendix ‘C’ represents the individual MMDAs’ irregularities. The individual District Development Facility

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(DDF) allocations to beneficiary Assemblies have been provided as Appendix ‘D’ to the report with Appendix ‘E’ showing the table of irregularities

Cash irregularities 8. Cash irregularities totaling GH¢32,684,459.20 was recorded by the 216 Assemblies. These have been classified in the table below:

Total No. of Irregularity GH¢ MMDAs Unsupported payments 21,046,407.53 93 Unretired imprest 540,301.60 18 Unaccounted funds 543,294.77 13 Assistance to needy students not acknowledged 323,358.48 9 Over deductions made by the DACF Administrator 107,914.36 1 Judgement debt paid 215,924.56 2 Unbudgeted expenditure 748,306.80 3 Unpresented payment vouchers 1,413,839.67 11 Unjustifiable DACF deductions 3,725,249.62 16 Misapplication of funds 1,500,559.28 12 Failure to allocate funds to sub-district structures 66,152.89 2 Unreceipted payment 683,738.29 8 Lack of evidence to justify payment of levelling refuse 43,295.00 1 dump Payment of compensation for encroaching and unlawful 20,248.70 1 damage to property Non-prudent expenditures 56,783.00 2 Acquisition of plot of land without obtaining any title 160,000.00 2 deed Uncollected revenue 3,480.00 1 Failure to locate/ obtain title to heavy duty equipment 60,000.00 1 procured Failure to repay inter-account borrowings 44,157.00 3 Pre-financing of project work before execution 180,000.00 2 Disbursement without the MP’s approval 305,037.06 1 Overpayment 31,755.00 2 Indebtedness of Zoomlion Ghana to an Assembly 238,000.00 1 Payment without expenditure warrant 626,655.59 1 Total 32,684,459.20 9. I noted that cash irregularities showed a significant increase of 27.17% over the 2015 figure due to continuous disregard and violations of relevant laws. In all the irregularities identified, I have made appropriate recommendations to address them and to deter any further violations. Amongst the recommendations made are:

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a. the MMDAs involved to provide evidence to support unsubstantiated/unaccounted expenditures; b. the authorising and approving officials of the payments should be held liable for recovery of the amounts; all unretired imprest should be recovered from the imprest holders, c. overdue loans, advances and overpayments must be recovered; d. the management of the Assemblies should pursue the service providers/ suppliers to fulfil their obligations in respect of payments made on their behalf by the Administrator of the DACF from source deduction of the common fund or refund the amount into the Assemblies accounts; e. Revision of contract documents for payments to be made by ADACF to service providers/ suppliers on behalf of MMDAs from their source deductions to include certification of satisfactory performance by the Assemblies before payments by the ADACF clause; f. prompt liquidation of indebtedness to avoid the payment of judgment debts/penalties; g. Management of the Assemblies should refund all misapplied funds; h. the Finance Officers should be held liable for all unpresented payment vouchers; i. all officers whose inaction resulted in losses to the Assemblies should be surcharged with the cost and sanctions imposed on those found culpable; and j. Effective control measures must be introduced and rigidly enforced to forestall such irregularities in the future.

Contract irregularities 10. A total amount of GH¢26,839,675.97 was noted as contract irregularities from my audits. These anomalies detected and their corresponding monetary values are shown below:

Amount No. of Irregularity GH¢ MMDAs Abandoned projects 7,030,573.20 11 Unjustifiable payment of contingency 45,318.94 1 Unapproved variations 521,715.51 6 Completed projects not in use 3,726,675.24 12 Payment for a contract not executed 80,376.68 3 Contract payments not recorded in contract register 569,613.66 2 Delayed/unexecuted/ poorly executed projects 9,224,876.12 19 Payment made without monitoring reports 308,247.29 4 Completed project without electrical fittings/ toilet 580,597.24 2 facility Payment of mobilization fee without receipt 21,666.60 1 Overpayment of contract sum 352,475.03 4 Maintenance and repairs without works orders 1,568,449.23 18

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Payments for non-existing projects 150,776.90 2 Failure to maintain retention deposit register 156,720.46 1 Payment of preliminaries without justification 37,373.10 1 Projects not carried out to specification 8,223.53 1 Non submission of contract documents/ No contract 1,052,609.59 2 agreement Projects not in Annual Action Plan 1,012,515.38 3 Failure to recover mobilization 26,505.00 1 Failure to withhold retention 3,544.90 1 Failure to fully execute portions of contract 33,863.00 1 Loss of funds arising from termination of contracts 34,348.89 1 Construction of Mandatory Projects 104,323.56 1 Completed projects not fully paid for 47,581.05 1 Award of contracts without tendering 140,705.87 1 Total 26,839,675.97

11. Contract irregularities recorded a 19.0 per cent increase over the GH¢22,483,500.59 recorded in 2015. To ensure value for money and also ensure that earmarked communities benefited from projects, I once again urged management of the Assemblies to immediately address issues of delayed and abandoned projects. I recommended that management of the Assemblies should ensure that payments are made based on certificates duly certified by engineers and supported by monitoring reports to avert payment for poorly constructed projects, overpayments, and payment for works not done. I further recommended that any official found culpable of any contract irregularities which result in losses to the Assemblies or any avoidable cost should be surcharged with the cost.

Procurement and store irregularities 12. During the year, procurement and stores irregularity summed up to be GH¢10,341,200.67. Most of the anomalies resulted from the non- adherence to the Public Procurement laws and Ministry of Finance Store regulations. The irregularities and their corresponding monetary values are provided below.

Amount No. of Irregularity GH¢ MMDAs DACF deductions for items/services not supplied 745,200.00 2 Uncompetitive procurement 2,640,979.22 24 Unaccounted fuel 1,093,947.98 16 Unaccounted stores 622,776.10 21 Purchases from non-VAT registered entities 2,942,068.74 36 Procurement outside approved budget/ procurement 763,647.24 2 plan

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Failure to account for items distributed 1,022,437.39 7 Payment for single sourced contract not executed 480,000.00 2 Supplies not delivered 30,144.00 3 Total 10,341,200.67

13. Despite our recommendations to guard against losses to the state, irregularities relating to procurement and stores upsurged from GH¢4,721,382.42 in 2015 to GH¢10,341,200.67 in 2016 - 119.03% increase. I recommended strict compliance with the procurement laws and store regulations. I also recommended that any official who failed to act responsibly and as a result the Assemblies incurs avoidable cost should bear those expenses.

Tax irregularities 14. Tax irregularities with a total value of GH¢308,310.13 were noted in some Assemblies. The irregularities identified and their corresponding monetary values are shown below.

Amount No. of Irregularity GH¢ MMDAs Failure to remit withheld tax 158,147.10 18 Failure to withhold taxes 122,401.23 26 Payment of tax penalty imposed 1,194.68 1 Payment of VAT without VAT receipt 26,567.12 7 Total 308,310.13

15. I urged management of the affected Assemblies to ensure strict compliance with the Public Financial Management Act, 2016 (Act 291), Financial Administration Regulations, 2004 (LI 1802), then Internal Revenue Act, 2000 (Act 592), Income Tax Act, 2015 (Act 896) and the Value Added Tax, 1998 (Act 546) by dealing with only VAT registered suppliers, obtaining VAT receipts for payments made inclusive VAT, deduct and remit taxes from payments made to suppliers of goods and services to avoid penalties which might impact negatively on the limited financial resources of the Assemblies. I recommended that any official whose inaction caused the penalties should be surcharged with the cost.

16. Details of the significant findings and recommendations made in the course of our audits of the Management and Utilisation of the District Assemblies’ Common Fund and Other Statutory Funds have been presented on regional and district basis under ‘Management Issues’ of Part III of this report. Part IV of the report takes account of issues emanating from the audit of the District Development Facility (DDF).

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PART III

MANAGEMENT ISSUES

ASHANTI REGION

Introduction 17. Out of the Parliamentary allocation of GH¢95,727,667.09 for the 30 Assemblies in the Ashanti Region during the year under review, actual amount received was GH¢50,228,207.98. This relates to the first three quarters of the year and represented 52.47% of the total regional allocation in 2016.

Cash irregularities

Unsupported payments – GH¢1,899,826.19 18. We noted that the District Finance officers of 14 Assemblies violated Part IX, Sections 13 and 14 of the Financial Memoranda for Assemblies as they failed to substantiate payments totaling GH¢1,899,826.19 with the requisite expenditure documents such as invoices, receipts of payees and statements of claims etc. The details are provided in the schedule below.

No. of No. Assembly Amt. (GH¢) PVs 1 Asante Akim Central Municipal Assembly 36 119,222.00 2 Bekwai Municipal Assembly 1 27,384.00 3 Ejisu-Juaben Municipal Assembly 11,652.00 4 Offinso Municipal Assembly 5 45,212.90 5 Adansi South District Assembly 26 541,977.56 6 Afigya Kwabre District 11 8,196.70 7 Asante Akim South District Assembly 50 421,831.04 8 Atwima Mponua District 9 333,462.60 9 Bosom Freho District 2 20,222.40 10 Offinso North District Assembly 32 162,951.45 11 Sekyere Afram Plains District Assembly 21 130,921.84 12 Sekyere East District Assembly 6 30,219.00 13 Sekyere Kumawu District Assembly 8 10,952.00 14 Sekyere South District Assembly 4 35,620.70 Total 1,899,826.19 19. We attributed negligence on the part of the Coordinating Directors and Finance Officers who should be aware of public payment procedures. The propriety of the transactions was therefore in doubt and gave rise to a potential risk of loss of funds to the Assemblies.

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20. We recommended that in the absence of the appropriate supporting documents the amount involved should be recovered from the Coordinating Directors and Finance Officers of the Assemblies.

Unretired imprest – GH¢43,908.00 21. Part Section 39 of Part IX of the Financial Memoranda (FM) for MMDAs demands that all standing imprest should be retired at the end of the financial year while special imprest be allowed within or on completion of the activities for which the imprest was granted,

22. The Kumasi Metropolitan Assembly failed to enforce this regulation and hence the failure of the Director of Waste Management and the MP for Manhyia South to retire a total amount of GH¢43,908.00 in imprests three to five months after undertaking supposed activities on behalf of the Assembly. The tendency that the amount was not used in furtherance of the Assembly’s activities cannot be ruled out.

23. We recommended that failure to retire the imprest amount, advance accounts should be opened in the name of the two imprest holders and the amount recovered accordingly from any entitlements due them.

Unaccounted Funds – GH¢52,703.00 24. Regulation 39 of FAR, 2004 (L.I. 1802) enjoins a head of department to ensure that moneys are utilised in a manner that secures both the optimum value for money and the intention of Parliament.

25. On the contrary, we noted that out of a total amount of GH¢149,835.00 given to the Asante Akim Central (GH¢49,150.00) and Sekyere Afram Plains (GH¢100,685.00) Assemblies to meet expenditure of various goods and services, only GH¢97,132.00 was accounted for leaving a difference of GH¢52,703.00. The details are given below:

No. Assembly No. of Amount Amount Difference PVs Released Accounted (GH¢) (GH¢) for (GH¢) 1 Asante Akim 3 49,150.00 20,535.00 28,615.00 Central Municipal 2 Sekyere Afram 13 100,685.00 76,597.00 24,088.00 Plains District Total 16 149,835.00 97,132.00 52,703.00

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26. We attributed the practice to failure by management to introduce measures that would ensure full accountability of funds and using the funds for the intended purposes in the interest of the Assemblies. Under such circumstance the Assemblies’ funds might rather be used in the personal interest of staff.

27. We recommended that failure to account for the outstanding amount the Co- ordinating Directors and Finance Officers should be held responsible for a refund.

MPs assistance to needy students not acknowledged – GH¢169,749.00 28. We noted during our audits that three Members of Parliament from Bekwai Municipal (27) (GH¢24,931.00), Afigya Kwabre District (49) (GH¢37,218.00) and Amansie West District (154) (GH¢107,600) offered financial assistance to 230 needy students in their constituencies to the tune of GH¢169,749.00. However, the students failed to submit any receipts from their institutions to the Assemblies to acquit the payment vouchers and to attest to their studentship.

29. In the absence of the relevant supporting documents to the payment, we could not validate whether the funds were used for intended purpose and as such it poses a high risk of abuse of funds.

30. We recommended that the Finance Officers and scheduled Accountants of the Assemblies should obtain receipts from the schools to authenticate the payments.

Over deductions made by the DACF Administrator – GH¢107,914.36 31. By Part II, Regulation 45 of LI 1802, if any expenditure is made in excess of the amounts actually due, the overpayment shall be recovered immediately and paid into the account from which it was originally paid.

32. In 2014 the Kumasi Metropolitan Assembly procured some Heavy Duty Equipment from Messrs. J. A. Plant Pool at GH¢2,044,179.00. The amount was to be deducted by installments by the DACF Administrator and paid to J. A. Plant Pool.

33. We noted that as at 31 December 2016 (two years into the agreement) 1 Howo 6x4 Low bed costing GH¢183,750.00 had not be delivered to the Assembly which should have automatically reduced the amount payable to GH¢1,860,429.00. However a total amount of GH¢1,968,343.36 had been deducted from the Assembly’s share of the Common Fund instead of the actual indebtedness of GH¢1,860,429.00 resulting in an over deduction of GH¢107,914.36.

34. We recommended that management should notify the Administrator of the DACF to suspend the payment pending the delivery of the equipment. If payment

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 10 had been effected, the overpaid amount of GH¢107,914.36 should be recovered immediately from the supplier Messrs. J. A. Plant Pool.

Judgement debt paid – GH¢95,849.74 35. The Common Fund Guidelines require that completed projects should be paid for before new projects are started. Part IX, Section 22 of the Financial Memoranda (FM) for MMDAs also require that claims accepted against an Assembly’s funds shall be dealt with promptly.

36. The Sekyere Kumawu District Assembly failed to settle its outstanding liabilities on completed projects. This was mainly due to taking on new projects and this led to contractors seeking justice in the law Court which resulted in the Court awarding costs amounting to GH¢95,849.74 against the Assembly. This has the risk of stalling earmarked programmes on the Assemblies.

37. We recommended that the Assembly should discharge all its obligations on completed projects before embarking on new ones to avert any legal tussle with a resultant loss of funds.

Unbudgeted expenditure – GH¢262,500.00 38. Part I, Section 11 of the Local Government Act, 1993 (Act 462) enjoins Assemblies to be responsible for the preparation and approval of their annual budgets. The essence is to ensure that expenditures of the Assemblies are within available resources.

39. Management of Atwima Nwabiagya District Assembly procured 500 street lights at a cost of GH¢262,500.00 although the expenditure was not factored in the approved budget for 2016. This has the effect of bringing other earmarked programmes of the Assembly to a halt.

40. We advised management to desist from making such unplanned expenditure which can affect the funding or stall the execution of other earmarked programmes and activities in approved budgets in future.

Contract irregularities

Abandoned projects – GH¢608,684.95 41. We noted that due to what management termed ‘lack of funds’ six projects valued at GH¢1,052,991.98 had been abandoned by two Assemblies for periods ranging between four and 12 months after a total amount of GH¢608,684.95 had been paid. The details are provided below:-

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No of Contract Amount Paid No. Assembly projects Sum (GH¢ (GH¢)

1 Atwima Nkwanwoma District 5 620,305.66 371,301.81 2 Amansie Central District 1 432,686.32 237,383.14 Total 1,052,991.98 608,684.95

42. We found this to be in contrast with the Guidelines for the utilization of the Common Fund which directs Assemblies to give priority to uncompleted projects before embarking on new ones. When projects are abandoned the possibility of cost over runs arises due to inflationary effects on building materials.

43. We recommended to management to endeavour to complete the projects for the communities to derive the intended benefits so that the GH¢608,684.95 sank into them would not go down the drain.

Payment for work done without work orders and performance certificates – GH¢105,993.40 44. Contrary to Regulation 1522 of the Store Regulations, 1984 ,the Asante Akim South District (GH¢74,593.40) and Offinso Municipal (GH¢31,400.00) Assemblies paid a total amount of GH¢105,993.40 for repair works done but failed to attach to the related payment vouchers any work orders and performance certificates duly signed by any authorised officers.

45. The anomaly which arose from non-compliance with the regulation has the risk of committing the Assemblies to payment for shoddy works or no work done.

46. We recommended that in the absence f work orders and performance certificates supporting the payments made any avoidable cost should be recovered from the authorizing and approving officers.

Unjustifiable payment of contingency to contractors: – GH¢45,318.74 47. Regulation 39 (2) of the FAR, 2004 (L.I. 1802) provides that, the head of accounts section of a department shall control disbursement of funds and ensure that transactions are properly authenticated to show that amounts are due and payable.

48. Contingency funds provided in contract estimates or certificate of payment do not form part of the contract sum but serve to take care of unforeseen circumstances in the course of construction. In the event of using contingency funds, reasons are provided to justify the payment and approval must be given by the entity tender committee.

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49. On the contrary Sekyere East District Assembly paid contingency fee s of GH¢45,318.94 without any justification and related approval to Messrs Al- iddrisafoho, the contractor who constructed the Police Station at Kumawu.

50. In the absence of justification for the payment and approval by the District Tender Committee, we recommended the recovery of the amount from the contractor otherwise the DCD, DFO and District Engineer should be held jointly and severally liable for the refund and reprimanded thereafter.

Completed projects not in use – GH¢657,813.80 51. Social interventions embarked on by Assemblies and Development partners are meant to mitigate the inconveniences that beneficiary communities encounter in their areas.

52. Our audit however, disclosed that three projects valued at GH¢657,813.80 and completed in 2015 by the Offinso Municipal (GH¢519,546.00) and the Sekyere Kumamu (GH¢138,267.80) District Assemblies had not been put to use a year afterwards. Assembly Contract Value GH¢ CHPS Compound (Kyebi) 227,029.00 Offinso Municipal 3 Unit Classroom Blk (Kayera) 292,517.00 Sekyere Kumawu District Police Station (Kumawu) 138,267.80 Total 657,813.80

53. A number of reasons including absence of electricity, non-commissioning of projects and apathy of community to use the projects were identified as the causes of the idleness of the projects.

54. We recommended that management should as a matter of urgency take necessary steps to ensure that the projects are used immediately so that the communities and by extension the State would derive the intended benefits.

Payment for a contract work not executed – GH¢50,393.70 55. Regulation 45 of LI 1802, states that, if any expenditure is made in excess of the amounts actually due the overpayment shall be recovered immediately and paid into the account from which it was originally paid and the officer concerned shall report the circumstances immediately to the head of department or the appropriate authority.

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56. Management of Asokore District Assembly awarded a contract to tar the forecourt of the Administration block with bitumen at a cost of GH¢114,007.31 to Reggio Co. Ltd and paid an amount of GH¢50,393.70 to the contractor on 3rd December, 2015 as a pre-financing arrangement to enable the company commence the project.

57. Due to lack of control over the contractor by management the tarring of the forecourt of the administration block had not begun a year after the initial payment had been made.

58. We recommended abrogation of the contract and the recovery of the initial payment with interest at the prevailing bank rate from the contractor.

Contract payments not recorded in contract register – GH¢569,613.66 59. Section 74 of Part IX of the FM for MMDAs stipulates that a contract register shall be kept by an Assembly and shall be entered promptly as details become available.

60. The Bekwai Municipal (11) (GH¢376,894.59) and Amansie Central District (6) (GH¢192,719.07) paid a total amount of GH¢569,613.66 vide 17 payment vouchers to 10 contractors but failed to update the contract register with the transactions. The absence of a contract register does not facilitate effective monitoring and control over payments and works.

61. We recommended to management of the Assemblies to always update contract registers with new contracts and its related payments in order to monitor and control work and payments to avoid loss of funds.

Delayed completion of projects – GH¢1,362,788.03 62. As a result of inadequate and intermittent funding coupled with management’s inability to priortise projects by phasing out old ones before new ones were awarded, four Assemblies in Ashanti Region delayed the completion of five projects totaling GH¢1,362,788.03. Below are the details:-

No. of No. Assembly Amount GH¢ projects 1 Mampong Municipal 3 97,913.17 2 Ejisu-Juaben months 1 81,391.00 3 Offinso Municipal 1 548,209.90 4 Ejura Sekyedumase Municipal 635,273.96 Total 1,362,788.03

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63. Delays in project execution lead to upward revision of contract prices due to rise in material costs or abrogation of contracts for repackaging and rewards. 64. We recommended to the management of the Assemblies to complete these projects before new ones are initiated.

Payment made without monitoring reports – GH¢199,437.02 65. Contrary to Section 70 of Part IX of the FM for MMDAs the Asante Akim Central Municipal (1) (GH¢6,450.00) and Adansi South District (15) (GH¢192,987.02) Assemblies per 16 vouchers with a total amount of GH¢199,437.02 paid contractors for project executions without any monitoring reports from the monitoring teams confirming the level of completions. We were therefore not in a position to determine whether the amount paid was indeed commensurate to work done.

66. We recommended that in the absence of monitoring reports justifying the payments made the authoring and approving officers of payments should be held liable to account for the payment.

Completed project without electrical fittings – GH¢419,152.40 67. In our view the construction of government projects one is expected to make provision for basic enhancements such as places of convenience and electricity power.

68. We however noted that in the construction of 3no. 3 Unit classroom blocks by the Offinso Municipal Assembly at a cost of GH¢419,152.40, the Municipal Engineer, Mr. Frimpong Ofosu failed to factor electrical fittings in the Bill of quantities (BoQ) as part of the contract which had led to difficulties in the use of computers in the study of Information, Communication and Technology (ICT) by the students.

69. We urged management of the Assembly to as a matter of urgency provide the schools with electricity power to enhance teaching and learning in order to match up with other well-endowed schools. We also advised that in future more diligent work should be done so that BOQs will contain every necessary details.

Payment of mobilization fee without receipt – GH¢21,666.60 70. Amansie West District Assembly paid a mobilization fee of GH¢21,666.60 on payment voucher no. 0676032 of 01/03/16 to Messrs. Panquit Co. Ltd. in respect of constructing a KG block, Pakyi, but nine months after the payment the contractor had not acknowledged receipt.

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71. Management’s inaction therefore contravened Section 39 (1c) of Part II of the FAR, 2004 which requires heads of departments to ensure that transactions are properly authenticated to show that amounts are due and payable.

72. We recommended that the contractor be made to acknowledge receipt of the amount to prevent any disputes or the Finance Officer should be held liable to refund the amount to the Assembly.

Overpayment of contract sum – GH¢15,422.24 73. Management of Amansie West District Assembly paid two contractors a total amount of GH¢293,891.50 instead of GH¢278,469.26 for the construction of a Police Station at Tontokrom and 3 Unit Classroom block at Manso Nkwanta respectively leading to an overpayment of GH¢15,422.24. 74. Management’s inaction violated Part VI, Section II of the Financial Memoranda for Assemblies and would result in a loss of the Assembly’s funds.

75. We recommended the recovery of the overpayment from the two contractors failing which the Coordinating Director, Finance Officer, Internal Auditor and District Engineer should be held liable for negligence.

Procurement and stores irregularities

DACF deductions for items/services not supplied – GH¢745,200.00 76. The DACF Administrator deducted a total amount of GH¢745,200.00 from the allocations of the Offinso Municipal (GH¢414,000.00) and Offinso North District (GH¢331,200.00) Assemblies for the provision of items, equipment and services such as fumigation, training among others. The items and equipment were not delivered and evidence could not be produced to show that the services had also been rendered.

77. In our view, the deductions which were significant would take a heavy toll on the development agenda of the Assemblies. Besides, the payment of these funds for no work done in the interest of the Assemblies constitute losses.

78. This happened because the ADACF was not required under the contract agreement to obtain certification of work done from the various MMDAs before making payments to the suppliers/ service providers.

79. We recommended that management of the Assemblies should ensure that the items / equipment are delivered and services provided to the Assemblies or the amount recovered from the contractors. We also recommended that the contract

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 16 should include performance certification by the Assemblies before payments by the ADACF to avoid losses due to nonperformance.

Uncompetitive procurement – GH¢386,415.06 80. Section 20 of the Public Procurement (Amendment) Act, 2016 (Act 914) requires that procurement entities should request quotations from as many contractors or suppliers as practicable but from at least three different sources.

81. On the contrary we noted that the Adansi South (GH¢121,941.68), Amansie Central (GH¢37,914.38), Asante Akim South (GH¢103,216.00) and Offinso North (GH¢123,343.00) District Assemblies procured goods and services to the tune of GH¢386,415.06 without obtaining alternative quotations from other sources to ensure competitive pricing. We also did not sight any approval from PPA for the sole sourcing.

82. In the circumstances, we were unable to ascertain whether the Assemblies indeed derived value for money in the procurement processes.

83. We recommended that the Chief Executives, Co-ordinating Directors and Finance Officers should subject all procurements to competitive quotations in order to derive maximum benefits from the procurement processes.

Unaccounted fuel – GH¢303,300.04 84. Assemblies are enjoined by Part XII, Section 60 of the FM to maintain log books on all official vehicles into which particulars of receipt of fuel and lubricants as well as persons undertaking journeys and kilometric readings shall be recorded.

85. However, the Adansi South (GH¢50,000.00) and Asante Akim South (GH¢253,300.04) District Assemblies purportedly purchased fuel and lubricants worth GH¢303,300.04 but were not recorded in any logbooks of their vehicles.

86. The absence of entries of fuel procured in the Assemblies’ vehicles does not provide authenticity on its use in furtherance of the Assemblies’ activities.

87. We recommended that management of the Assemblies should provide evidence of receipt and use of the fuel and lubricants or the Co-ordinating Directors, Finance Officers and Transport Officers should be held liable to refund the amount involved.

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Purchases from non-VAT registered entities –GH¢555,754.20 88. We noted that seven Assemblies violated Regulation 183(4) of LI 1802 which enjoins government stores to be procured from only VAT registered entities and purchased goods and services valued GH¢555,754.20 from non VAT agents thereby resulting in the non-payment of VAT of GH¢97,256.99. The details are provided below

No. Assemblies Total Amount VAT Element Paid (GH¢) (GH¢) 17.5% 1 Asante Akim Central Municipal 26,920.00 4,711.00 2 Offinso Municipal 85,212.00 14,912.10 3 Asante Akim South District 101,866.70 17,826.67 4 Atwima Mponua District 97,802.00 17,115.35 5 Offinso North District 198,896.00 34,806.80 6. Sekyere Afram Plains District 23,595.00 4,129.13 7. Sekyere Kumawu District 21,462.50 3,755.94 Total 555,754.20 97,256.99

89. The anomaly arose from managements’ deliberate failure to operate in accordance with the relevant VAT law.

90. We recommended that the management of the affected Assemblies should comply with the VAT laws to avert any punitive action in future otherwise all the Coordinating Directors and their Finance Officers should bear the cost of any penalties.

Execution of contracts not in procurement plan – GH¢242,885.15 91. Part III, Section 21(1) of the PPA, 2003 (Act 663) requires that an annual procurement plan shall be prepared to support approved project, programmes and activities.

92. At Mampong Municipal Assembly, we noted that five projects valued GH¢242,885.15 executed during the year were not included in the 2016 annual procurement plan. The practice has the tendency of throwing the budget into disarray and also the Assembly’s benefit could be sacrificed for that of individuals. Management explained that the projects were carried out on exigency.

93. In order to instill sanity in the use of public funds, management was advised to comply with the above stated procurement law in future.

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Failure to account for items issued in bulk to Hon. MPs – GH¢487,918.00 94. Our audit at Bekwai Municipal Assembly revealed that store items valued GH¢487,918.00 were purchased from the two MPs Common fund (Manso Adubia, GH¢283,906.00 and Manso Nkwanta, GH¢204,012.00) and issued to them (MPs) in bulk for distribution to earmarked beneficiary communities. We however found no evidence such as signed distribution list of the items to confirm delivery and receipt by the beneficiaries.

95. We recommended that the Hon. MPs should be contacted to provide the signed distribution lists of the beneficiaries of the items. The Assembly should make beneficiary communities or individuals sign and collect items due them directly from the storekeeper.

Procurement of items from source deductions not accounted for before distribution – GH¢242,151.89 96. The DACF Administrator deducted an amount of GH¢242,151.89 from the Offinso North District MP’s DACF allocation for the purchase of sporting items from Messrs. Summit Vision but failed to provide any related disbursement invoices and receipts to aid an efficient audit trail.

97. Although we sighted no invoices to affirm the quantities and values, our follow up action at the Assembly confirmed the delivery and distribution of the items to the beneficiaries. Under such circumstance we were unable to confirm whether the items received were of the correct quantity, specification and fairly priced.

98. We recommended that for such arrangements with the Administrator all related disbursement documents should be provided for audit reviews. Meanwhile, the Hon. MP should be contacted to provide the relevant supporting documents to the transaction with Messrs. Summit Vision.

Tax irregularity

Failure to remit withheld tax – GH¢1,292.50 99. Part VIII, Section 117 of the Income Tax Act, 2015 (Act 896) enjoins a withholding agent to pay to the Commissioner-General within fifteen days after the end of each calendar month, a tax that has been withheld in accordance with this Division during the month.

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100. Our audit disclosed that the Sekyere Afram Plains District Assembly withheld five percent tax of GH¢1,292.50 but failed to remit same to the Ghana Revenue Authority.

101. We opined that management had deliberately failed to remit the amount. By this act the state is denied the revenue expected at a particular time to meet its activities.

102. We recommended that the unremitted tax should be immediately remitted to GRA to avoid any penalties otherwise the Coordinating Director and Finance Officers should bear such cost.

BRONG AHAFO REGION

Introduction 103. Out of the Parliamentary allocation of GH¢81,059,426.77 for the 27 Assemblies in the Brong Ahafo Region during the year under review, actual receipt amounted to GH¢42,531,797.46. This relates to the first three quarters of the year and represented 52.47% of the total regional allocation in 2016.

Cash irregularities

Unsupported payments – GH¢742,371.12 104. Part IX, Sections 7, 13 and 14 of the Financial Memoranda for MMDAs require that originals of relevant supporting documents including invoices and statements of expenditure should be attached to payment vouchers.

105. A total amount of GH¢742,371.12 disbursed per 155 vouchers by 11 Assemblies lacked the relevant supporting documents stated above to substantiate the payments.

106. Our review showed that the lapse arose as a result of laxity on the part of the Coordinating Directors and Finance Officers in adhering to the regulation. The affected Assemblies and their corresponding amounts are as shown in the table below:

No. of No Assembly Amount-GH¢ PVs 1 Asunafo North District 6 29,042.87 2 Asunafo South District 66 291,309.25 3 Banda District 7 31,612.00

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4 Sunyani West District 6 8,750.00 5 Sunyani Municipal 18 57,681.00 6 Tain District 19 72,098.00 7 Tano North District 12 34,241.00 8 Tano South District 2 14,000.00 9 Wenchi Municipal 13 61,287.00 10 Dormaa West District 2 77,350.00 11 Pru District 4 65,000.00 Total 155 742,371.12

107. Payments not properly and sufficiently substantiated can result in payments for goods/services not or partly rendered to the Assemblies. 108. We recommended that in the absence of the relevant supporting documents such as original receipts, invoices to authenticate the transactions, the amount should be recovered from the Finance Officers and Co-ordinating Directors involved.

Unpresented payment vouchers - GH¢263,492.38 109. The District Finance Officers of Dormaa West District (6) (GH¢118,413.69), Wenchi Municipal (7) (GH¢10,269.42) and Tain District (7) (GH¢134,809.27) Assemblies failed to present 20 payment vouchers valued at GH¢263,492.38 for audit contrary to Regulation 1 (2) of LI 1802.

110. In our opinion, the lapse occurred as a result of improper handling of payment vouchers by scheduled officers and poor supervision by the District Finance officers which can possibly lead to losses to the Assemblies. We were therefore, unable to authenticate the total expenditure of GH¢263,492.38.

111. We recommended that failure to produce the vouchers for our scrutiny, the amount should be recovered from the Finance Officers.

Failure to obtain receipts from students-GH¢100,258.00 112. Part IX, Sections 13 and 14 of the Financial Memoranda for MMDAs require that all payment should be receipted with written acknowledgement or official receipts.

113. Our audit however revealed that, management of Banda (14) (GH¢7,800.00), Tain (34) (GH¢82,234.00) and Tano North (12) (GH¢10,224.00) District Assemblies failed to obtain receipts totalling GH¢100,258.00 from 60 beneficiaries under the ‘assistance to needy but brilliant students programme’ neither did they obtain copies of their academic performance.

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114. We noted that the lapse occurred as a result of laxity on the part of the Finance Officers to adhere to the payment process to obtain the necessary documents. The Assemblies are likely to pay for people who may not actually be in school as well as those whose academic performance are poor and unappealing.

115. We recommended that receipts and records of students’ academic performance should be obtained during the offer of financial assistance to them otherwise the Coordinating Directors and their Finance Officers should be held accountable for the funds. Meanwhile the Coordinating Directors and their Finance Officers should justify the payments. Unjustified DACF deductions-GH¢1,755,618.65 116. We noted that a total amount of GH¢1,755,618.65 deducted at source from the allocations of nine Assemblies for the provision of services such as fumigation, sanitation, NALAG dues, training, waste management among others were not delivered by the service providers. Details are shown below: Amount No. Assembly deducted-GH¢ 1 Asutifi North District 192,512.40 2 Asunafo South District 127,650.00 3 Banda District 310,500.00 4 Dormaa Central Municipal 314,985.08 5 Kintampo Municipal 5,750.00 6 Nkoranza North District 120,750.00 7 Sunyani West District 347,369.12 8 Sunyani Municipal 175,102.05 9 Tano North District 161,000.00 Total 1,755,618.65

117. Our follow up also revealed the inability of the Administrator of the Common Fund to furnish the Assemblies with detailed explanation and documentary evidence on the merits of all the deductions.

118. The deduction which we found significant impacted negatively on the resources of the Assemblies as services were not rendered and the Assemblies were also unable to honour several committed contracts and programmes during the period.

119. This occurred due to the absence of certification of performance by MMDAs before payment by the ADCF clause in the contract agreement.

120. We recommended that management of the Assemblies should ensure that the services are delivered otherwise the amount is recovered from the service providers

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 22 without delay. We also recommended that the insertion of performance certification by MMDAs before payments by the ADCF clause in the contract to curb losses.

Duplicate payments-GH¢25,200.00 121. Regulation 39(1) and (2c) of LI 1802 direct a head of department to ensure that moneys are utilised in a manner that secures both optimum value for money and the intention of Parliament. Additionally, Regulation 39(2c) requires the head of the accounts section of a department to control disbursements of funds and ensure that transactions are properly authenticated to show that amounts are due and payable.

122. Our review of the Common Fund releases to the Sunyani West District Assembly disclosed that, a total amount of GH¢347,369.12 was deducted at source for activities including sanitation improvement involving Messrs Zoomlion Ghana Ltd during the year under review. We however noted that after the second quarter 2016 release had been made to Zoomlion its sanitation equipment broke down in July 2016 compelling the Assembly to seek alternative means by contracting the services of other private people at a cost of GH¢25,200.00.

123. In our view, a full year deduction of funds had already been made on behalf of Zoomlion and the Company should have found alternative means of performing the task when its equipment broke down.

124. We therefore recommended a recovery of the amount of GH¢25,200.00 from Messrs Zoomlion Ghana Ltd. into the Assembly’s account.

Misapplication of funds-GH¢646,322.67 125. Management of the Asunafo South (DACF) (GH¢33,838.45), Dormaa West (DACF) (GH¢50,752.00) and Jaman North (PWD) (GH¢29,300.00) violated Regulation 179 of FAR, 2004 (L.I. 1802), which prohibits a head of department from authorizing payments from funds earmarked for specific activities and misapplied their DACF and People With Disability (PWD) funds totaling GH¢113,890.45 on programmes other than the earmarked.

126. In a related development the Wenchi Municipal Assembly disbursed 47% of its DACF resources on recurrent expenses instead of the 20% ceiling contained in the Administrator’s Guidelines for the year resulting in a 27% excess expenditure of GH¢532,432.22.

127. It could be inferred from the situation that, apathy on the part of management to adhere strictly to the Administrator’s Guidelines for the year accounted for the anomaly which can adversely affect other scheduled programmes.

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128. We urged management of the Assemblies to refund the amount into the PWD accounts and r imburse its DACF account with the excess expenditure from the IGF accounts. We also r that management should desist from the practice of stifling the DACF and PWD programmes by using their funds for the unintended purposes. We further recommended the adherence to the Administrator’s guidelines and the excess expenditure should be reimbursed from their IGF.

Unretired Imprest-GH¢9,545.00 129. Five officers of the Pru (2) (GH¢3,150.00) and Kintampo South (3) (GH¢6,395.00) who were given moneys to undertake various activities failed to retire a total amount of GH¢9,545.00 at the end of December 2016, three to 11 months after the activities were supposedly to have been completed.

130. We attributed their inaction which is in violation of Regulation 283 (b) of the Financial Administration Regulation (FAR) 2004, (LI. 1802) to management’s failure to ensure strict compliance with the regulation. This could lead to abuse of the system, with a resultant loss of funds to the Assemblies.

131. We recommended to management of the Assemblies to ensure recovery of the amount from the imprest holders in the absence of accountability of the imprest.

Failure to allocate funds to sub-district structures-GH¢66,152.89 132. Part I, paragraph 3 of the 2016 Guidelines for the Utilization of the DACF directs that two percent (2%) of DACF quarterly releases should be used for the establishment and strengthening of sub-district structures.

133. Our audit however disclosed that, management of Dormaa Central Municipal (GH¢28,036.69) and Wenchi Municipal (GH¢38,116.20) Assemblies failed to provide the two percent of their year’s allocations amounting to GH¢66,152.89 to the strengthening of the sub-structures resulting in the non-functioning of their Town and Urban Councils.

134. The failure of Assemblies to strengthen the sub-structures could stifle any effective identification and prioritization of development projects by communities for inclusion in their respective development budgets.

135. We therefore urged the Coordinating Directors to ensure full compliance with the Guidelines.

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Unbudgeted Expenditure-GH¢485,806.80 136. Contrary to Part I, a (v) of the Financial Memoranda for District Assemblies 2004 the Tano South (GH¢324,389.30) and Banda (GH¢161,417.50) District Assemblies disbursed a total amount of GH¢485,806.80 of their MPs’ funds on activities for which no provision was made in their years’ budgets. This act can result in the diversion of funds meant for planned activities leading to delays in project execution.

137. We recommended to management to always spend in line with budgeted programmes and that any disbursement outside the budget should be done through the submission and approval of supplementary budgets. The amount should be reimbursed from the IGF.

Contract irregularities

Overpayment of contracts - GH¢225,354.63 138. Our review of the contract register of Dormaa Central Municipal Assembly disclosed that while the contract sums of the two projects amounted to GH¢610,192.74, management paid GH¢835,547.37 leading to an overpayment of GH¢225,354.63 as detailed below.

Name of Contract Excess Assembly Project Payments contractor sum -GH¢ payment Construction of Joekona Co. ltd – new Assembly 414,531.24 505,596.70 91,065.46 Sunyani Dormaa block Central Joshlarbi Co. ltd – Construction of 195,661.50 329,950.67 134,289.17 Sunyani Polyclinic Total 610,192.74 835,547.37 225,354.63

139. In both situations we were not provided evidences of any approved variations in the contract sums. The lapse was attributed to the failure on the part of the Coordinating Director, and Finance Officer and Monitoring Team to do due diligence work in the payment of contracts and could result in the loss of the Assembly’s funds.

140. We recommended that the total amount of GH¢225,354.63 should be recovered from the two contractors otherwise the Co-ordinating Director, Finance Officer and Monitoring team should refund the amount into the Assembly’s account and measures put in place to prevent any future occurrence.

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Payments for non-existing projects and failure to execute portions of contract:- GH¢150,776.90 141. Part IX, Section 70 (a) of the Financial Memoranda for Assemblies requires that no payment shall be made to a contractor unless in the case of payments in respect of work done, the Works Engineer or such other person as the Assembly may appoint for the purpose has inspected the work done and given a certificate required which shall be attached to the payment vouchers.

142. On the contrary, we noted that management of Atebubu Amantin District Assembly paid GH¢134,196.90 to eight contractors for non-existing projects in the communities. The details are provided below.

Facilities not Amount- Assembly Contract Location Contractor provided GH¢ Ali Construction of Construction of 1No. Lukman Bresuano 1No. 3unit 13,046.78 3unit classroom shed Enterprise, classroom shed Atebubu King-Kay Construction of Construction of 1No. Moshi- Co. Ltd, 1No. 3unit 13,046.78 3unit classroom shed Moshi Accra classroom shed Pelasgco Construction of Construction of 1No. Janjawura Enterprise, 1No. 3unit 13,046.78 3unit classroom shed Atebubu classroom shed Pelasgco Construction of Construction of 1No. Sampa Enterprise, 1No. 3unit 13,046.78 Atebubu- 3unit classroom shed Atebubu classroom shed Amantin Pelasgco Construction of Construction of 1No. Gruma- Enterprise, 1No. 3unit 13,046.78 3unit classroom shed Gruma Atebubu classroom shed Construction of 1No. Pelasgco Construction of 10 unit open market Nyomoase Enterprise, 1No. 10 unit open 13,731.50 shed Atebubu market shed Construction of 1No. King-Kay Construction of Dobidi 10 unit open market Co. Ltd, 1No. 10 unit open 13,731.50 Nkwanta shed Accra market shed DCE Construction of 2No. Bolga- Construction of (Tractor 41,500.00 Police Post Nkwanta 2No. Police Post A/C) Total 134,196.90

143. In a related development Banda District Assembly paid a total amount of GH¢16,580.00 to two contractors for works provided in the contracts but failed to be executed. The details are shown below.

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Contrac Facilities not Amount- Assembly Contract Location tor provided GH¢ 4 bed room Liman Banda Banda Installation of Bungalow for Seidu 6,000.00 District Ahenkro Kitchen Cabinet DCD Ent. Renovation works at No renovation bungalows, Matben works carried on Banda Banda (DCD, DCE, Betty the residencies of 10,580.00 District Ahenkro DFO, MOFA, Ent. MOFA, GES and GES and GHS GHS). Total 16,580.00

144. We found both situations as inertia on the part of the Authoring and Approving officers leading to loss of funds to the Assemblies involved and in addition denying the intended beneficiaries the use of the facilities.

145. We urged the management of the Assemblies to exercise high level of circumspection and diligence in their contract management. The total amount of GH¢150,776.90 should be recovered from the contractors involved failing which the Coordinating Directors, Engineers and the Finance Officers of the Assemblies should be made to refund the amount involved into the Assemblies account.

Failure to maintain retention deposit register-GH¢156,720.46 146. Part IX paragraph 72 of the Financial Memoranda for Metropolitan and District Assemblies states that ‘every contract shall provide for at least 10% of the contract sum to be paid to the contractor to be retained and shall specify the period after the completion of the contract for which sums shall be retained’.

147. We noted that the Asutifi South District Assembly complied with the regulation and accordingly deducted the retention amounts, but failed to maintain a retention deposit register to keep track of a collated retention monies of GH¢156,720.46 withheld from contract payments.

148. In order to ensure that funds are readily available to meet retentions that are due and to avoid litigation, we recommended that the retention deposit register should be maintained to monitor retention payments.

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Payment of preliminaries without justification-GH¢37,373.10 149. Section III, Condition 37.2 of the Contract Documents on the DACF projects which provides the conditions of the contracts, stipulates that “The Bill of Quantities is used to calculate the Contract Price. The Contractor is paid for the quantity of the work done at the rate in the Bill of Quantities for each item”.

150. We however, noted that the Asunafo South District Assembly included in the Interim Payment Certificates (IPCs) and made preliminary payments totaling GH¢37,373.10 to two contractors without providing the details during the period under review. We also did not sight evidence of the work done or delivery of any items at the project sites and this might result in the loss of the Assembly’s funds.

151. We recommended that Authorising Officers and the District Engineer should provide the justification for the payments, failing which, the amount of GH¢37,373.10 representing the preliminaries component, should be refunded by the contractors otherwise the three officers should refund the amount into the Assembly’s account.

Unapproved variation-GH¢314,089.16 152. Part IX, Section 68 of the Financial Memoranda states that “No alterations shall be made to any contract or schedule or specification thereof except on the recommendations of the District Tender Board and provided that Assembly provision is available. Such alterations shall be signed by the Presiding Member of the Assembly or such other person as may be authorized by the Assembly to act on his behalf and by the contractor”.

153. Our review of Dormaa Central Municipal Assembly’s contract payments revealed that the Tender Committee varied a contract sum of GH¢195,661.50 three times to GH¢409,604.35 resulting in a total variation of GH¢213,942.85 without recourse to the Tender Review Board for approval in contravention with the above stated law. The breakdown is as follows:

Project Contractor Contract sum Variation Variation

1st 122,754.25 Construction of 1No. Josh larbi 2nd 13,931.60 Health Clinic at 195,661.50 3rd 77,257.00 Dormaa – Ahenkro Total 213,942.85

154. In a related issue , the Tender Committee of the Banda District Assembly also approved of the variation of three contracts at a total cost of GH¢100,146.31 without

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 28 recourse to the Tender Review Board or the General House of the Assembly as two of the variations exceeded the 10% allowable ceiling. The projects are tabled below:

% of Contract Fluctuation Contractor Details Award date fluctuat sum (GH¢) (GH¢) ion Liman Seidu Construction of 4 27/11/2012 215,138.00 20,270.00 9.24 ltd Bedroom for DCD Construction 5 No Monsie bedrooms 27/11/2012 242,499.00 45,602.31 18.8 const.ltd bungalow for DCE Koboamp's Construction of 1 Comp. no 3 bedroom for 27/11/2012 229,040.08 34,274.00 14.96 limited senior staff Total 686,677.08 100,146.31

155. The Banda Assembly had assigned reasons of delayed and inadequate funding for the review in the contract sums. In our view, disregard of the provision can be a recipe for collusion and misappropriation of funds.

156. We therefore recommended that the Assemblies adhere to the laid down regulations and act accordingly otherwise members of the Tender Committee should be held liable for refund of the amount for sanctioning the unjustified payments.

Completed projects not in use-GH¢300,835.48 157. One prime mandate of an Assembly is to harness and develop the resources within its jurisdiction and provide the various communities with the appropriate social amenities to enhance the well-being of its people amongst others. 158. The Asutifi North (GH¢85,252.02) and Dormaa West (GH¢215,583.46) District Assemblies expended a total amount of GH¢300,835.48 on two projects but these have not been put to use two to three years after the completion. While the 20 seater water closet at Kenyasi is said to have been sited within a locality with a traditional toilet in use, the Community Health Centre at Yaakrom is yet to be commissioned.

159. We recommended to the management of the Assemblies to always consider the need factor and also consult communities before carrying out projects. Management was advised to ensure the immediate use of the facilities.

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Abandoned/delayed projects-GH¢1,871,451.60 160. Paragraph 2 of the DACF guidelines (Ref. DACF/06-1001-2/72) of 1 April 2011 stipulates that, Assemblies should give priority to uncompleted / on-going projects before embarking on new projects.

161. We noted that four Assemblies expended a total amount of GH¢1,871,451.60 on 17 projects awarded within 2011 to February 2016. We however noted that these projects which are at various levels of completion had been abandoned and new projects awarded. The details are provided below.

No. of Completion Amount paid to Assembly Projects Date date GH¢ Asunafo North 4 Feb. 2016 692,663.34 Berekum Municipal 4 2014 75,584.47 Dormaa East 4 2011 152,627.16 Wenchi Municipal 5 Mar-15 950,576.63 Total 17 1,871,451.60

162. Delay in executing projects could lead to cost overruns to the detriment of other developmental projects of the Assemblies.

163. We urged management of the Assemblies to ensure that priority is given to abandoned/delayed projects before new ones are awarded as enshrined in the guidelines.

Procurement and store irregularities

Uncompetitive procurements-GH¢163,564.57 164. We noted that three Assemblies made 30 payments for goods and services totalling GH¢163,564.57 without alternative quotations from other prospective suppliers in contravention to Section 20 of the Public Procurement (Amendment) Act, 2016, (Act 914). We however did not sight the required approval from PPA for the sole sourcing. Details are shown below:

Assembly NO. PVs Amount-GH¢

Asunafo South District 15 77,948.82 Kintampo South 7 25,418.75 Wenchi Municipal 8 60,197.00 Total 30 163,564.57

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165. We could therefore, not confirm whether the Assemblies obtained value for money in their transactions. We reiterated our view on how the single source procurement could be open to abuse or inflationary prices of the items to the Assemblies.

166. We urged the Coordinating Directors to ensure that procurements are always subjected to competitive quotations in order to obtain maximum benefit from the transactions in line with the expectation of the law.

Fuel purchases not accounted for-GH¢121,877.00 167. By Store Regulation 1604 a vehicle log book is supposed to be maintained on government vehicles in which journeys undertaken, receipted fuel and lubricants are to be recorded on daily bases among others.

168. The Kintampo Municipal (GH¢2,923.00), Banda (GH¢66,512.00) and Tano North District (GH¢52,442.00) Assemblies violated this regulation during the year as they were unable to account for fuel of GH¢121,877.00 allegedly expended since there were no entries in the vehicle log books and other available evidences to explain the situation.

169. Under such circumstance we found it difficult to authenticate whether the alleged fuel purchased was used in furtherance of the Assemblies programmes.

170. We recommended in the absence of appropriate documentation to authenticate the payments, the amount should be recovered from the Co-ordinating Directors, Finance and Transport Officers.

Supplies short delivered - GH¢25,644.00 171. Contrary to Section 39(2c) of the FAR, we noted that on Store Issue Voucher (SIV) 000205 of 15 January 2016, the District Engineer of Tano North District Assembly received building materials which were sent to Techire SHS for the construction of a pavilion. Our verification at the school and the Assemblyman’s house where the materials were kept revealed that the items were short supplied to the tune of GH¢5,410.00. Details are shown below:

Quantity Quantity Value Item Difference on SIV Received (GH¢)

Cement 130 80 50 1,750.00

Galvanized pipes 25 20 5 300.00

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 31

Roofing Sheets-Aluzink 15pkts 7pkts 8pkts 3,360.00

Total 5,410.00

172. We also noted that a supplier, Messrs. Mukwano Golden Ent contracted to furnish the Administration Block of the Wenchi Municipal Assembly and paid GH¢89,000.00 ended up supplying goods worth GH¢68,766.00 resulting in an under delivery of GH¢20,234.00. 173. The Assemblies stood the risk of fund lost by the act of the Engineer and supplier. The act of the Engineer and supplier resulted in the loss of funds to the Assemblies.

174. We recommended that, the balance of the items valued GH¢25,644.00 should be supplied immediately by the Engineer and supplier otherwise the amount should be recovered from them and sanctions imposed for financial indiscipline.

Purchases from non VAT registered entities - GH¢995,113.29 175. Regulation 183 (4) of the Financial Administration Regulations, 2004 (LI 1802), provides amongst others that government stores should be procured from only VAT registered persons.

176. Management of seven Assemblies as provided below procured good and services valued GH¢995,113.29 from non-VAT registered businesses and as a result did not pay the 17.5% VAT of GH¢174,144.83 to the State.

No. Assembly Gross Amount VAT income GH¢ (GH¢) 1 Asunafo North District 103,779.37 18,161.39 2 Banda District 116,946.39 20,465.62 3 Dormaa Central Municipal 236,580.00 41,401.50 4 Jaman South District 7,881.43 1,379.25 5 Kintampo Municipal 8,040.00 1,407.00 6 Techiman North District 153,025.99 26,779.55 7 Wenchi Municipal 368,860.11 64,550.52 Total 995,113.29 174,144.83

177. We reiterated the need for management of the Assemblies to comply in earnest with the tax laws otherwise sanctions should be imposed on all responsible officers for breach of financial discipline.

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 32

Tax irregularities

Failure to withhold/remit taxes-GH¢34,155.58 178. Section 117(5) of the Income Tax Act 2015 (Act 896) states that, a withholding agent who fails to withhold tax under this Division but pays the tax that should have been withheld to the Commissioner-General in accordance with subsection (1) is entitled to recover an equal amount from the withholdee.

179. The Finance Officers of five Assemblies as detailed below, failed to deduct withholding taxes of GH¢31,981.93 from payments totaling GH¢620,019.49 made to suppliers.

Gross Amt. Withholding Assembly Tax rate (GH¢) Tax (GH¢) Banda District. 67,605.80 3% 2,028.17 Kintampo South District 217,875.00 7.50% 16,340.63 Nkoranza South District 122,045.00 3% 3,661.35 Techimann North District 178,848.69 5% 8,942.43 Tain District 33,645.00 3% 1,009.35 Total 620,019.49 31,981.93

180. Similarly, the Sunyani Municipal Assembly failed to remit to the Commissioner-General withheld taxes amounting to GH¢2,173.65.

181. Ineffective supervision and review work by the Coordinating Directors and Internal Auditors resulted in the above anomalies which denied the State of tax revenues.

182. We recommended remittance of the total tax amount of GH¢2,173.65 to the Commissioner-General of the Ghana Revenue Authority by Sunyani Municipal Assembly and advised the five defaulting Assemblies to comply and act accordingly with Section 117(5) of the Income Tax Act 2015, (Act 896).

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CENTRAL REGION Introduction 183. The region received three quarter releases out of four amounting to GH¢33,297,985.07 from the Administrator of District Assemblies’ Common Fund for its 20 Assemblies during the year. The amount represented 52.47% of the total Parliamentary approval of GH¢63,461,121.86 in 2016.

Cash irregularities

Un-receipted payments-GH¢507,519.88 184. We noted that five Assemblies disbursed a total amount of GH¢475,847.42 from the Common Fund to organizations and individuals without supporting the payment vouchers with any acknowledgement receipt from the beneficiaries. In a related development three Assemblies also failed to produce receipts to support payments totaling GH¢31,672.46 made from their MPs Common Fund allocations. These are detailed below. Amount Amount GH¢ No. Assembly GH¢ Total GH¢ MPs DACF 1 Ajumako-Enyan-Essiam District 1,467.00 2,775.00 4,242.00

2 Ekumfi District 17,272.86 2,895.98 20,168.84 3 Cape Coast Metropolitan 431,252.00 26,001.48 457,253.48 4 Assin South District 20,000.00 20,000.00 5 Effutu Municipal 5,855.56 5,855.56 Total 475,847.42 31,672.46 507,519.88

185. The inaction of management of the Assemblies therefore contravened Part IX, Section 14 of the Financial Memoranda for M.MDA’s which stipulates that receipts should be obtained in support of payments made to government Departments, State Enterprises, Institutions etc. and as a result the risk of payments being made to unintended beneficiaries cannot be ruled out.

186. We recommended that failure to obtain receipts from the payees, the Finance officers should be held liable for refund of the amounts.

Unretired imprest- GH¢291,895.10 187. We noted that in violation of Part IX, Sections 38 and 39 of the Financial Memoranda six Assemblies granted imprest totaling GH¢395,195.20 to officers of the

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Assemblies and individuals to undertake activities on behalf of the Assemblies but as of 31 December 2016 only GH¢103,300.10 had been retired leaving an unaccounted balance of GH¢291,895.10. Shown in the table below are the details:

Amount Amount Amount No. Assembly Granted Retired Outstanding GH¢ GH¢ GH¢

1 Awutu Senya East Municipal 256,518.15 50,270.00 206,248.15

2 KEEA 44,427.00 7,989.30 36,437.70 3 Ekumfi District 11,363.00 11,363.00 4 Mfantseman 5,928.00 5,928.00

Abura-Asebu Kwamankese 26,806.00 21,960.00 4,846.00 5 (P.W.D) 12,409.00 8,866.00 3,543.00 6 Effutu Municipal 37,744.05 14,214.80 23,529.25 Total 395,195.20 103,300.10 291,895.10

188. In the absence of the relevant document to retire the imprest we were unable to authenticate whether the amount was used in the interest of the Assemblies.

189. We recommended that failure to retire the imprest, the amount should be treated as personal advances to the imprest holders and recovered into the Assemblies account.

Unsubstantiated payments-GH¢1,214,992.41 190. Part IX, Section 7 of the Financial Memoranda for MMDA’s requires management of Assemblies to ensure that all payments are substantiated with supporting documents such as statement of claim, receipt, memoranda etc. to show that amounts are due and payable.

191. On the contrary we noted that eight Assemblies made payments totaling GH¢1,214,992.41 without supporting them with documentary evidences such as statement claim, invoices, reports, memoranda among others to authenticate the transactions. The transactions are detailed in the table below. WATER&SANI DACF MPs P.W.D. TATION Water & No. Assembly No. DACF No. M.Ps No. No. Sanitatio of of of P.W.D of n PV (GH¢) PV (GH¢) PV PV (GH¢)

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 35

Cape Coast 1 19 6 13,231.00 Metro 187,075.54 Assin South 2 3 33,046.50 7 183,162.00 District Abura Asebu

3 Kwamankese 5 2 14,500.00 6,052.00 District

4 K.EEA District 23 66,424.04 Gomoa East 5 89 9 35,089.00 District 569,400.69 Upper

6 Denkyira East 7 11,016.00 District Upper

7 Denkyira West 6 24,752.00 District Effutu 8 10 Municipal 71,243.64 Total 159 935,963.91 14 82,635.50 6 13,231.00 7 183,162.00

192. Failure by the Coordinating Directors and their Finance Officers to ensure that payment vouchers were properly supported with required documents before authorizing and approving the payments accounted for anomaly. This can lead to losses to the Assemblies through payments made for no work done among others.

193. We recommended that failure by the Coordinating Directors and Finance officers to ensure that the total amount is accounted for, the amount should be recovered from them into the Assemblies account.

Un-receipted/Unjustified deductions at source by DACF Administrator: GH¢394,599.05 194. The DACF Administrator’s circular no. DACF/CIR/01 dated 4 June 2003 requires all Assemblies to issue official receipts in acknowledgement of gross amounts of all releases made to them before deductions. The Administrator was in turn, required to issue receipts for all deductions made from the releases.

195. Contrary to the above stated circular and guidelines, we noted that for the year under review, the ADACF deducted at source a total amount of GH¢394,599.05 from the Common Fund allocations of the Cape Coast Metropolitan Assembly without issuing official receipts to acknowledge the amount deducted. The deductions we noted were to finance the cost of Fumigation, NALAG Dues, sanitation improvement and AID/HIV. The affected Assembly however acknowledged receipt of all the releases made by the Administrator to them. The Assembly could only vouch for

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 36 receipt of NALAG dues whereas benefits from provision of the other services could not be confirmed.

196. The lapse of unreceipted deductions was as a result of the failure of the DACF Administrator to adhere to his own official directives. We opined that lukewarm attitude of the Assembly towards pursuing the Administrator for the receipts also accounted for the situation. We attributed the payments for benefits not received by the Assembly to the absence of certification of performance by the Assembly before payments by the ADACF clause in the contract agreement for payments to be made on behalf of the Assembly by source deductions.

197. We recommended that the Assembly should endeavour to obtain receipts from the Administrator for the deductions made to complete the transactions. We also recommended that management of the Assembly should pursue the contractors/ service providers to honour their obligations without any delay or recover the amount from them into the Assembly’s account. For the avoidance of loss of the Assembly’s funds, we recommended the inclusion of certification of satisfactory performance by the Assembly before payments by ADACF clause in the contract agreement

Financial assistance to needy but brilliant students not acknowledged – GH¢26,001.48 198. Part I, Paragraph 2 of the Guidelines for the utilization of DACF for the year 2016 provides that up to two percent should be set aside and used to support and sustain a District Education Fund. It further states that the fund shall be used to finance scholarships, bursaries or repayment of loans to finance needy students with a proven record of good academic performance.

199. We noted that a payment of GH¢ 26,001.48 made in respect of financial assistance to needy students by the Cape Coast Metropolitan Assembly was not supported with official acknowledgments from the beneficiaries’ schools.

200. We attributed this lapse to the failure of the Finance Officer and the Social Services Sub- committee to monitor, supervise the process and ensure compliance with the payment process. This could lead to fictitious payment or monies being paid on behalf of the wrong persons.

201. We recommended that the Finance Officer should obtain the relevant documents to justify the payment or he should be held liable for refund of the amount.

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MP Common Fund not accounted for - GH¢ 100,160.00 202. Part IX, Section 1 of the Financial Memoranda for MMDA’s, 2004 states “ Every payment shall be supported by the original of a voucher, which shall contain full particulars of the service for which payment is being made and the head, sub-head and item or account to which is to be charged”.

203. Our review of the Cape Coast Metropolitan Assembly’s financial records disclosed that, the Cape Coast South MP failed to account for his share of MPs’ Common Fund of GH¢100,160.00. The MP by his letter captioned ‘’Request for payment’’ dated 04/03/16 directed the Administrator of Common Fund to pay a supplier Messrs. Vision and Sport Enterprise an amount of GH¢100,160.00 for various items allegedly supplied to his Constituency. We noted that there were no physical and documentary evidences of the Assembly taking delivery of the items and distribution to enhance an effective audit trail. Consequently we could not confirm justification of the expenditure in the interest of the Assembly. This is a recurrence of the anomaly as in 2015, where the MP disregarded the payment process and directed the payment of GH¢168,884.00 to the same company for the supply of items to his Constituency.

204. We could also not determine whether or not the purchases were effected in accordance with the relevant provisions of the Public Procurement (Amendment) Act, 2006 (Act 914) as circumvented procurement processes would fail to ensure transparency and value for money.

205. We urged management of the Assembly to call on the MP to account fully for the alleged purchases for audit scrutiny or refund the money into the Assembly’s account and be educated on the operations of the Public Financial Management System.

Lack of evidence to justify payment of levelling refuse dump– GH¢43,295.00 206. Part IX, Section 70 (a) of the Financial Memoranda states among others that, in the case of payments in respect of works done, the Works Engineer or such other person as the Assembly may appoint for the purpose, has inspected the work done and given the certificate required which form shall be attached to the payment voucher”.

207. We however noted that the Cape Coast Metropolitan Assembly paid an amount of GH¢43,295.00 for the supposed levelling of solid waste at Abura Cemetery sanitation site, evacuation of solid waste at Brofoyedru and Amokofoa skip sites. The payment made was not backed by any performance certificate from the environmental

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 38 department or from any designated officials of the Assembly. Additionally, there was no empirical evidence such as a photograph of the mountainous refuse dump before and after to justify the payment. In the absence of these relevant supporting certificate or report, the audit team could not vouch the propriety of the payment.

208. We blamed the Coordinating Director and Finance Officer for not ensuring that such payments were supported with certificates before authorizing and approving the payment.

209. In the absence of any evidences to prove and justify the expenditure, we recommended that the Coordinating Director and Finance Officer should be held liable to refund the amount into the Assembly’s account.

Payment of compensation for encroaching and unlawful damage to property on private land-GH¢20,248.70 210. Section 39(2c&d) of Financial Administration Regulation 2004 (LI 1802) states that, the head of the accounts section shall control disbursement and ensure that transactions are properly authenticated to show that amounts are due and payable and any disbursement that does not meet the requirement should be rejected.

211. Management of the Cape Coast Metropolitan Assembly constructed a school block at Anakyim Brickfields in Cape Coast but failed to establish whether the school had title to the land. This resulted in two payments totalling GH¢20,248.70 to one Mrs. Adriana Abaidoo, a private person for encroaching her land and damaging her property without her prior knowledge.

212. Failure of the Assembly to conduct any baseline or feasibility study on the land to ascertain ownership resulted in this avoidable expenditure. This resulted in the loss of funds to the Assembly which could have been prudently used on another project to alleviate or improve the standard of living of the community.

213. We recommended a recovery of the amount of GH¢20,248.70 from all responsible officers who failed to exercise due diligent in the performance of their work and as a result led to the loss to the Assembly.

Contract irregularities

Payment for work without certificate of work done: GH¢673,488.60 214. Contrary to Part IX, Section 70(a) of FMDA, we noted that the Gomoa West (GH¢23,879.00), Gomoa East (GH¢6,650.00) and Awutu Senya (GH¢642,959.60)

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District Assemblies spent a total amount of GH¢673,488.60 on repairs building and equipment, reshaping of roads, collection of refuse amongst others without attaching vouchers with any certificates of satisfactory completion.

215. We recommended that certificate of completion of work done are prepared for all works executed to avoid any losses through shoddy or non-existent works otherwise any extra cost incurred for the same work should be recovered from the authorizing and approving officials for such payment.

Procurement and stores irregularities

Purchases from non-VAT entities-GH¢202,148.70 216. We noted that the four (4) Assemblies procured goods worth GH¢202,148.70 from non-registered VAT entities without any justification thereby violating Regulation 183(4) of the Financial Administration Regulation, 2004, (LI 1802) which requires a department to procure government stores from only VAT registered persons or entities. The summary is tabled below.

MPs Common DACF (GH¢) No Assembly Fund (GH¢) Cost of goods Cost of Goods 1 Cape Coast Metro 88,070.00 29,492.59 2 KEEA 13,310.39 19,500.00 3 Upper Denkyira West District

4 Effutu Municipal 51,775.72 Total 172,6.11 29,492.59 217. This could attract penalties and drain the limited funds of the Assemblies. We recommended to the management of the Assemblies to ensure strict compliance with the VAT laws in all future transactions to avert any penalties otherwise any avoidable cost incurred should be recovered from the Finance Officers and any responsible officer whose act resulted in the cost.

Uncompetitive procurement-GH¢480,283.93 218. We noted that contrary to Section 20 (1) of the Public Procurement (Amendment) Act, 2016, (Act 914), the Awutu Senya East District (GH422,402.00), KEEA (GH15,091.00), Upper Denkyira East District (GH28,253.93) and Agona West Municipal (GH14,537.00) Assemblies procured goods and services worth GH¢480,283.93 without obtaining alternative quotations from at least three different sources or the required approval for sole sourcing from PPA . Under the circumstances

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 40 we could not ascertain whether the Assemblies obtained fair pricing for the goods and services procured.

219. We therefore recommended that in future all purchases made by the affected Assemblies should be on the basis of alternative quotations obtained from different sources and in compliance with the law or Coordinating Directors, Finance and procurement officers should be sanctioned.

Tax irregularities

Unremitted Withholding tax - GH¢9,077.06 220. Under Part VIII, Section 117 of the Income Tax Act, 2015 (Act 896) a withholding agent should pay to the Commissioner-General within 15 days after the end of each calendar month a tax that has been withheld in accordance with this Division during the month.

221. Our examination of payment vouchers revealed that the Finance Offices of two (2) Assemblies Komenda-Edina-Eguafo-Abrem District (KEEA) (GH¢4,163.25) and Upper Denkyira East District (GH¢4,913.81) failed to remit taxes totaling GH¢9,077.06 withheld from suppliers during the year under review. This act could attract penalties and worsen the existing fund challenges of the Assemblies

222. We recommended that management of the Assemblies should immediately pay the amount of GH¢9,077.06 to the Commissioner, Ghana Revenue Authority to avoid any penalties otherwise any cost to be incurred should be recovered from the Finance Officers. EASTERN REGION Introduction 223. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. In 2016, the region as a result received from the Administrator a total amount of GH¢40,015,345,31 representing its first three quarters allocation for the year for the 26 Assemblies. This amount represented 52.47% of the total allocation of GH¢76,263,434.57 for 2016.

Cash irregularities

Unsupported payments – GH¢2,025,372.51 224. Management of 18 Assemblies made 225 payments from their District Assemblies’ Common Fund Account totaling GH¢1,788,484.92 without any

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 41

supporting expenditure documents contrary to Regulation 39(2c) of FAR, 2004 (LI 1802).

225. In a related development seven Assemblies as detailed below made 34 payments totaling GH¢222,212.75 in respect of scholarship support for brilliant but needy student, provision of farm inputs to farmers, rent, building materials; provision of farm inputs to farmers, rent, building material, construction of KG Block at Bosuso Presby; construction of a Kindergarten block and others out of their MPs share of the Common Fund without supporting the vouchers with any expenditure documents.

226. We also noted that the Kwahu West Municipal (1) (GH¢10,774.84), West Akim Municipal (1) (GH¢500.00) and Ayensuano District (3) (GH¢3,400.00) made five payments totaling GH¢14,674.84 from their PWD funds for store items, financial assistance to PWDs without any expenditure documents to validate the payments. Details are provided below:

Assembly No. DACF (GH¢) No. MPs No. PWD of of (GH¢) of (GH¢) PVs PVs PVs Atiwa District 4 27,950.00 2 7,850.00 Fanteakwa District. 4 8,985.91 1 46,585.00 Suhum Municipal 4 5,780.00 Denkyembuor District 13 187,291.90 Kwaebibirem District 37 280,853.38 Upper West Akim 6 85,709.79 District Birim Central Municipal 9 61,728.76 18 16,856.80 Birim South District 9 102,656.51 Birim North District 2 2,593.23 Lower Manya Krobo 8 92,829.00 7 35,974.95 Municipal Upper Manya Krobo 9 46,074.00 District Kwahu Afram Plains 45 283,810.00 North District West Akim Municipal 39 279,887.77 3 57,151.00 1 500.00 Akyemansa District 15 276,302.89 2 41,105.00 Kwahu East District 15 28,231.00 Asuogyaman District 4 4,520.00 Yilo Krobo Municipal 1 6,150.00

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Nsawam Adoagyiri 1 7,130.78 Municipal Kwahu South District 1 16,690.00 Kwahu West Municipal 1 10,774.84 Ayensuano District 3 3,400.00 Total 225 1,788,484.92 34 222,212.75 5 14,674.84

227. Payments made without the relevant supporting documents have the tendency of the amount not being used for intended purposes.

228. We recommended that failure to provide the relevant supporting documents to justify that the funds were used in the interest of the Assemblies, the amount should be recovered from the Coordinating Directors and their Finance Officers and Social Services sub-committee members.

Unsubstantiated DACF deductions – GH¢731,372.38 229. Nine quarterly source deductions amounting to GH¢731,372.38 were made from the Common Fund allocations of New Juaben Municipal (4) (GH¢414,000.00), Suhum Municipal (4) (GH¢151,772.38) and Birim South District (1) (GH¢165,600.00) during the year. However, the Assemblies had not benefited from the required services (fumigation, sports items to sanitation etc) for which the deductions were made. 230. The practice negatively affected the Assemblies’ cash flow position and hampered the fulfilment of some of their development agenda. The non-provision of services paid for could result in loss of the Assemblies funds. We noted the absence of certification of satisfactory performance by MMDAs before payments by the ADACF clause; a relevant control mechanisms in the contract agreement for payments to be made on behalf of the MMDAs from source deductions as the cause of this unfortunate situation.

231. We recommended that management of the Assemblies should pursue the contractors/ service providers to honour their obligation of recover the amount from them into the Assemblies accounts. To curb the loss of funds to the Assemblies, we recommended the revision of the contract document to include a certification of satisfactory performance by MMDAs before payment by ADACF clause.

Unpresented payment vouchers – GH¢335,576.30 232. The West Akim Municipal Assembly failed to submit for our audit scrutiny seven payment vouchers valued at GH¢335,576.30 in respect of reshaping of roads, vehicle repairs and others contrary to Part I, Regulation 1&2 of LI 1802.

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 43

233. We could therefore not authenticate the justification of the expenditure in the Assembly’s interest.

234. We recommended that failure to present the payment vouchers to justify the regularity of the expenditure, the Coordinating Director and Finance Officer should be held liable for refund of the amount into the Assembly’s account.

Non-prudent expenditures – GH¢7,710.00 235. Part VI Section II(c) of the Financial Memoranda for MMDAs, 2004 provides that it is the duty of an officer responsible for an expenditure to vouch vouchers for payment. In doing so he shall be held responsible that the prices charged are either according to contracts or approved sales or are fair and reasonable according to contract local prices”

236. On 2 February 2016 the management of Kwahu Afram Plains North District Assembly allegedly procured fuel valued GH¢7,710.00 for four of its official vehicles. We found the expenditure unrealistic relative to the fuel consumption capacity of the said vehicles.

237. We advised management of the Kwahu Afram Plains North District Assembly to ensure the prudent and judicious use of the Assembly resources so as to positively impact on the citizenry and ultimately to the benefit of the Assembly.

Acquisition of plot of land without obtaining any title deed- GH¢140,000.00. 238. Management of Suhum Municipal Assembly acquired and fully paid for a 10 acre land at Suhum at the cost of GH¢ 140,000.00 from one Naa Seidu Anas to be used as a public cemetery but failed to obtain any Title Deed transferring ownership to the Assembly.

239. The absence of this relevant document can result in losses to the Assembly in times of dispute.

240. We recommended that management should pursue the vendor for title to the land or refer the issue to the Lands Commission for redress.

Uncollected revenue- GH¢ 3,480.00 241. Part II, Regulation 17 of LI 1802 requires a head of department to ensure that all non-tax revenue is efficiently collected.

242. We noted that Management of Birim North Assembly failed to demand and collect its share of revenue of GH¢3,480.00 in respect of 87 sanitation containers it

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 44 contracted to Messrs Zoomlion Co. Ltd. We further noted that although Zoomlion charges its clients GH¢ 20.00/month for lifting and empting the containers there was no clearly defined terms in the agreement between the Company and Assembly regulating the release of the sanitation containers.

243. We advised management to pursue Messrs. Zoomlion Co. Ltd for its share of the income of GH¢3,480.00 and clearly specify the terms and conditions for the release of the containers in the contract to protect the interest of the Assembly.

Unretired imprests /advances- GH¢21,799.00 244. The Kwahu East District Assembly accounted for only an amount of GH¢ 23,898.00 from eight payments of imprests/advances totalling GH¢45,697.00 meant for meeting expenses, sensitisation of PWD’s, layout expenses and District Environmental Action Plan etc. leaving an outstanding balance of GH¢21,799.00 contrary to Regulation 12 of LI 1802 . 245. The failure to fully account for the advanced sum pre supposes that the amount had not been used for intended purpose.

246. We recommended that failure by the affected payees to properly and fully retire the imprest, the amount should be recovered from them.

Payment of judgement debt- GH¢120,074.82 247. Management of Kwaebibirem District Assembly failed to pay M/ S Kingdowsko Ent. Ltd an amount of GH¢153,416.52 being the valuation of work undertaken in respect of a contract for the construction of an Assembly hall with offices valued at GH¢1,477,183.00.

248. The company therefore filed a suit in the Koforidua High Court where costs of GH¢ 120,074.82 being interests accrued in addition to the value of work done of GH¢153,416.52 was awarded against the Assembly.

249. Management had attributed the issue to the delays in the release of the District Assemblies’ Common Fund. The situation which had resulted in a loss to the Assembly and a drain on its limited funds which could have pushed the project currently ongoing ahead.

250. We recommended that the Assembly should strategise to forestall such situations.

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Misapplied funds - GH¢56,044.00 251. Part V, Regulation 179 of LI 1802 prohibits heads of departments from using earmarked funds for activities other than those activities.

252. We however, noted that management of the East Akim Municipal Assembly borrowed an amount of GH¢185,741.00 from the retention funds set aside to pay contractors after the defect liability periods and disbursed on social activities such as independent day celebrations. Management refunded GH¢129,701.00 leaving a difference of GH¢56,044.00 as of 31 December 2016. This in our opinion can adversely affect the payment of contractors should they put in their claims and could result in the payment of judgment debts.

253. We recommended that management should ensure reimbursement of the retention fund with the outstanding amount to enable the Assembly promptly settles its liabilities to contractors in order to avoid litigation and its attendant costs. Contract irregularities

Contract variation without consent of the other party - GH¢56,500.00 254. We noted that Messrs. Zoomlion Ghana Ltd. unilaterally increased the service charge for environmental disinfestation from GH¢25,000.00 to GH¢40,250.00 per quarter without any supplementary agreement and in disregard of Sections 5 and 7 of the standing agreement which stipulates that changes in rates were to be by mutual agreement of the two parties. Consequently, management of Akyemmansa (GH¢45,750.00) and Denkyembuor (GH¢10,750.00) District Assemblies paid a total variation fee of GH¢56,500.00 to Zoom Lion Ghana Ltd (per deductions at source for four and two quarters respectively). Details are provided below.

Assembly Quarter Contract Amount Variance Agreement Paid GH¢ GH¢ Amount GH¢ Akyemansa 1st 25,000.00 40,250.00 15,250.00 District 2nd 25,000.00 40,250.00 15,250.00 3rd 25,000.00 40,250.00 15,250.00 Sub-Total 75,000.00 120,750.00 45,750.00 Denkyembuor 1st 35,000.00 40,250.00 5,250.00 District

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2nd 37,000.00 42,500.00 5,500.00 Sub-Total 72,000.00 82,750.00 10,750.00 Grand 147,000.00 203,500.00 56,500.00 Total

255. We urged management to ascertain basis for the increase and in the absence of any contractual agreement between the parties to the contract follow up with the recovery of the amount of GH¢56,500.00 from Messrs. Zoomlion Ghana Ltd.

256. Meanwhile, any further review of service agreement should be done with the consent of both contracting parties and the Administrator of Common Fund.

Projects not carried out to specification- GH¢8,223.53 257. We noted that management of Nsawam Adoagyiri Municipal Assembly awarded the construction of a two 3- seater KVIP toilet at Asante Kwaku and Nyame Bekyere at a cost of GH¢ 29,384.00 to M/S Speer’s Business Solutions Ltd. Although the project was completed in October 2016, we noted some deviations from the drawings. Whereas the drawings made room for a wall to provide a corridor in front of the toilets, this was not done in addition to not providing a water tank. All these valued at GH¢8,223.53 and had earlier been provided in the Bill of Quantities.

258. This situation resulted from ineffective supervision of the project by the Works Engineer and the Project Inspection Team to regularly visit and monitor the execution of projects.

259. We recommended that management should ensure that the contractor rectifies the deficiencies identified, failing which management should recover the cost of GH¢8,223.53 from the contractor and he should be blacklisted. Meanwhile the Engineer and Monitoring team should also be sanctioned for non-performance.

Non submission of contract documents- GH¢ 160,000.00 260. Whereas Part 1, Section 1c of the Regulations, 2004 (L. I.1802), requires among others that a head of a government department should submit records on all transactions when requested by the Minister, Auditor-General and Controller and Accountant-General, management of Yilo Krobo Municipal Assembly failed to produce the contract documents in respect of a Landfill Site contract worth GH¢160,000.00 awarded to M/S Waste Landfills Co Ltd and fully paid for our scrutiny.

261. As a result we could not give assurance as to whether the Assembly obtained value for money in the transaction.

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262. We recommended to management to ensure that the Municipal Environment Health Officer produces the documents which he claimed had mixed up with other official records for audit review, failing which he should be sanctioned for poor record keeping of essential documents.

Projects not in Annual Action Plan – GH¢342,248.00 263. We noted that Birim Central Municipal (3)(GH¢160,000.00) and Birim North District (3) (GH¢182,248.00) Assemblies made six payments totaling GH¢342,248.00 for the management of final disposal site to Messrs. Waste Landfills Co. Ltd. and purchase of 30 footballs and jerseys each from Messrs. Vision and Sports Enterprise from DACF(Main) and DACF(MPs) respectively. We found that the activities were not captured in the approved Annual Action Plans for the year. 264. Such practice has the tendency of throwing the Assemblies’ budgets into disarray and as a result the Assemblies interest would be sacrificed for individual’s interest.

265. We recommended that management of the Assemblies should ensure that they proactively plan and approve their annual activities/ programmes and to routinely update it as and when new services/ activities become imperative.

Completed projects not in use – GH¢426,249.17 266. Our audits disclosed that Asuogyaman (GH¢146,978.10), Upper West Akim (GH¢84,270.11) and Denkyembour (GH¢195,000.96) District Assemblies made three payments of GH¢426,249.17 towards the construction of two non-detached Staff Bungalows, 20-Unit Market Shed and a Community Day School and one Master Bedroom Bungalow. The projects which were completed in the months of January and February 2016 were lying idle and had not been put to its intended use by the communities

267. The anomaly was found to be due to the non-commissioning and handing over of the projects to the communities and consequently might defeat the objective of the projects.

268. We recommended that management should facilitate the commissioning and handing over of the projects for use to prevent deterioration due to inactivity.

Delayed/unexecuted/poorly executed projects – GH¢2,257,293.40 269. Our audits disclosed that Birim South (3)( GH¢302,969.48), Akyemansa (7) (GH¢1,343,814.12), Kwahu West (8)(GH¢420,402.13) and Lower Manya Krobo (6) (GH¢190,107.67) District Assemblies had spent a total amount of GH¢2,257,293.40 on 24 projects yet to be completed and had delayed for periods ranging from three to

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 48 nine years beyond the completion date. The projects comprised one Kindergarten block, three 6-Unit classroom blocks, Bungalow’s for staff and 16-unit w/c toilets etc.

270. This situation was due to management’s failure to prioritise these projects as well as irregular and inadequate releases of DACF funds by the Common Fund.

271. We recommended that management of the affected District Assemblies should prioritise the completion of this project and not initiate new ones in the light of the irregular DACF funding

Procurement and stores irregularities

Non-competitive tendering – GH¢1,165,046.223 272. Section 35(1) of the Public Procurement Act, 2003, (Act 663) mandates a procurement entity to procure goods, services or works by competitive tendering. Additionally, Section 35(3) of the Act mandates the management of a procurement entity to justify the use of any other method other than the prescribed competitive tendering in the procurement of goods, services or works.

273. Contrary to the above provisions, we noted that seven Assemblies awarded contracts valued at GH¢1,165,046.23 without going through any tendering processes thereby rendering the award process non-competitive and this could adversely affect the achievement of value for money. Besides we did not sight the required approval from the PPA for the single sourcing. The breakdown is shown below:

No Assembly Amount No. GH¢ of PVs 1 Birim Central Municipal 175,275.00 4 2 Birim North District 130,040.38 2 3 Birim South District 384, 480.00 3 4 Akyemmansa District 240,000.00 2 5 Kwahu South District 24,674.00 2 6 West Akim Municipal 160,000.00 2 7 Kwaebibirem District 50,576.85 8 Total 1,165,046.23 23

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274. We recommended that management of the seven Assemblies should ensure that contracts are awarded according to the provisions specified in Act 663 in order to make them competitive and obtain value for money.

Unrecorded stores – GH¢407,732.69 275. Contrary to Part XII, Section 18 of the Financial Memoranda for Assemblies, management of fourteen (14) Assemblies made purchases of bags of cement, vehicle tyres, spare parts, air conditioners, office furniture, stationery, roofing sheets and wood products worth GH¢407,732.69 without taking them on ledger charge before supposedly consuming them. The breakdown is shown below: No Assembly Value of Purchases No. of PVs GH¢ 1 Atiwa District 5,800.00 3

2 Akyemansa District 21,105.00 1 3 Lower Manya Municipal 40,673.54 5 4 West Akim Municipal 137,363.25 7 5 Nsawam Adoagyiri Municipal 41,894.46 8 6 Suhum Municipal 1,520.00 1 7 Ayensuano District 20,250.00 1 8 Upper West Akim District 9,517.90 7 9 Kwahu East 22,084.60 4 10 Kwahu South 22,184.46 10 11 Kwahu Afram Plains North District 65,050.48 11 12 Kwahu Afram Plains South District 7,750.00 2 13 Asuogyaman District 8,759.00 3 14 Birim Central 3,780.00 1 Total 407,732.69 64

276. In the circumstances, we could not readily confirm the authenticity of the purchases.

277. We recommended that failure to account for the stores, the Coordinating Directors and their Finance Officers should justify the payment.

Maintenance and repairs without works orders – GH¢443,470.22 278. Contrary to Section 70 of the FM for District Assemblies, we observed that management of six Assemblies spent a total amount of GH¢443,470.22 on repairs of

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 50 their vehicles without reference to Job Orders and/or Certificate of Completion of Work. Details are shown below:

No Assembly Value of No. of Purchases PVs GH¢ 1 Kwahu East District 32,845.58 9 2 Ayensuano District 58,649.00 19 3 Upper Manya Krobo District 62,832.40 6 4 Lower Manya Krobo Municipal 167,622.44 5 5 Atiwa 79,135.80 9 6 Kwahu Afram Plains North 42,385.00 9 Total 443,470.22 58

279. This anomaly could result in arbitrary service charges and shoddy or no works being carried out on these vehicles.

280. We recommended that the affected Assemblies should ensure that all future repair works are supported by approved Job Orders and Certificates of Completion of Work. We also recommended that failure by the Coordinating Directors and Finance Officers to ensure that all relevant documents are attached to the payment before authorizing and approving any extra cost to be incurred on the job should be recovered from them.

Purchases from non-VAT registered persons – GH¢446,494.36 281. We noted that seven Municipal and District Assemblies undertook procurement dealings valued at GH¢446,494.36 with non-VAT registered persons contrary to Part VI, Regulation 183(4) of LI 1802. Details are provided below:

Value of No. of No Assembly Purchases PVs GH¢ 1 Atiwa District 13,738.55 11 2 West Akim Municipal 286,997.01 16 3 Kwahu Afram Plains North District 17,753.75 7 4 Kwahu Afram Plains South District 30,980.00 4 5 Suhum Municipal 23,114.99 26 6 Kwaebibrem 44,210.06 3 7 Upper West Akim 29,700.00 2 Total 446,494.36 69

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282. Noncompliance of the above stated law could attract penalties leading to avoidable cost. We recommended that management of the Assemblies should only deal with VAT registered persons in future, otherwise any responsible person whose act results in penalties being charged should be made to bear the cost.

Store items issued without any corresponding signed Distribution Lists- GHȻ81,816.50 283. The Hon. MPs for Atiwa (GH¢79,817.50) and East Akim (GH¢1,999.00) Constituencies in their bid to empower their constituents bought various items (including cutlasses, provisions, roofing sheets, cement, Wellington boots,) valued at GHȻ81,816.50 for their use. However, these items which were issued to the beneficiaries were not supported with signed distribution lists to attest to the receipt of the items by the intended beneficiaries, the situation in our view could be abused by their representatives and thereby defeat the laudable objectives of the Hon. MPs.

284. We urged management of the two Assemblies to ensure that issues of store items are only made to named beneficiaries on the strength of Distribution Lists approved by the Municipal Coordinating Director or any responsible official mandated by him.

Purchases of fuel and lubricants not accounted for –GH¢68,451.27 285. Regulations 299 and 300 of the Stores Regulations, 1984 enjoin MMDAs to maintain vehicle logbooks on all official vehicles in which daily entries of fuel and lubricants requisitioned are to be entered as well as the monthly computation of fuel consumption. On the contrary, fuel and lubricants valued at GH¢68,451.27 purchased by six Assemblies per 82 payment vouchers were not recorded in their vehicle logbooks for control and accountability purposes. Details are provided below:

No Assembly Value of No. of PVs Purchases GH¢ 1 West Akim 8,000.00 4 2 Kwahu East 10,234.00 38 3 Kwahu Afram Plains North District 14,583.27 12 4 Kwahu Afram Plains South District 27,494.00 28 5 Yilo Krobo Municipal 8,140.00 4 Total 68,451.27 82

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286. This lapse was attributed to inadequate supervision of the drivers by the responsible officials. The practice of not accounting for fuel in vehicle logbooks might facilitate financial malpractices.

287. We recommended that management should ensure that these amounts are appropriately accounted for or in default, recover the amounts from the drivers, Transport and Finance officers involved.

Tax irregularities

Withholding taxes not remitted\deducted – GH¢82,700.82 288. Section 117(1) of Act 896 requires a withholding agent to pay to the Commissioner a tax that has been withheld within 15 days after the end of the month in which the payment subject to withholding tax was made.

289. During the year under review, eleven Assemblies were involved in tax irregularities regarding un-withheld and unremitted taxes amounting to GH¢82,700.82. The breakdown is shown below: No Assembly Tax not Tax not Total Deducted Remitted (GH¢) (GH¢) (GH¢) 1 Birim North District 3,901.20 - 3,901.20 2 Akyemmansa District 633.15 28,637.54 29,270.69 3 Nsawam Adoagyiri District - 5,532.63 5,532.63 4 East Akim District 198.75 - 198.75 5 West Akim Municipal 445.00 364.00 809.00 6 Kwaebibirem District 34,964.88 - 34,964.88 7 Fanteakwa District 3,352.70 - 3,352.70 8 Kwahu South District 2,987.81 - 2,987.81 9 Suhum Municipal 519.90 - 519.90 10 Kwahu West Municipal 154.12 - 154.12 11 Kwahu East District 556.94 452.20 1,009.14 Total 47,714.45 34,986.37 82,700.82 290. Failure to withhold tax and not promptly paying withheld taxes deducted to the Commissioner deny the inflow of revenue into the Consolidated Fund.

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291. We recommended that management should ensure that taxes are deducted and promptly remitted to the Ghana Revenue Authority to avert penalties.

Payment of tax penalty imposed- GH¢1,194.68 292. By Part VIII, Section 117 of Act 896 a withholding agent is mandated to pay to the Commissioner-General within 15 days, tax that has been withheld. Management of Birim Central Municipal Assembly paid a tax penalty of GH¢1,194.68 on 8 September 2016 due to its failure to promptly remit withheld taxes totaling GH¢3,982.26 to the Commissioner-General (GRA).

293. We advised management to desist from the practice of unduly retaining withheld taxes and also to recover the penalty amount involved from the Finance Officer.

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GREATER ACCRA REGION

Introduction 294. During the year, the 16 Assemblies in the Greater Accra Region received a total amount of GH¢33,392,496.94 from the Common Fund Administrator as against a Parliamentary allocation of GH¢63,641,247.77. The amount which represented 52.47% of the allocation, related to the first three quarters of the year’s allocation.

Cash irregularities

Unsupported payments - GH¢619,300.00 295. Regulation 39(2c & d) of the Financial Administration Regulations, 2004 (L.I.1802) and Memorandum 7 of Financial Memoranda for MMDAs require heads of accounts section to control disbursements of funds and ensure that transactions are properly authenticated to show that amounts are due and payable; and to reject any disbursements that do not meet the requirement.

296. We however noted that, Ga Central (GH¢49,600.00), Ningo Prampram (GH¢569,700.00) District Assemblies disbursed a total amount of GH¢619,300.00 from their main and MPs’ Common Fund accounts respectively without the supporting documentation such as official receipts, invoices, statement of claims. In the absence of the supporting documents we could not confirm the veracity of the related transactions.

297. Failing to account for the payments, we recommended that the amount involved should be recovered from the Coordinating Directors and Finance Officers of the Assemblies who authorized and approved of the payments.

Non prudence use of funds - GH¢49,073.00 298. Regulation 12 Part 2 (h) of FAR L.I 1802 states among other financial duties of a Departmental Head to preserve in good order and secure economic use of all equipment and stores used by the department.

299. We noted that in February 2016, the Ga South Municipal Assembly’s Motor Grader broke down and was sent to the agents, Messrs. J. A. Plant Pool, for repairs. Two service quotations issued on 4 February 2016 by Messrs. J. A. Plant Pool and valid for 14 days requested for a servicing fee of GH¢12,527.00 to replace the brake drum and Turbo charger. As of 31 December 2016, management of the Assembly had not been able to raise the GH¢12,527.00 to fix the Motor Grader. Meanwhile between April

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 55 and August 2016 management hired the services of a privately owned grader to reshape and gravel some of the roads in the municipality at a fee of GH¢49,073.00.

300. In our opinion the Assembly had not been prudent in the management of its resources and this defeats the purpose of acquiring the grader. We urged management to repair the Grader Motor to secure its economic use and be efficient with spending to avoid waste and dissipation of funds.

Contract irregularities

Defects in completed project found within defect liability period 301. Section 46 Sub-section 4 of the Local Government Act, 1993 (Act 462) directs that the Municipal Planning Coordination Unit (MPCU) as part of its monitoring and evaluation functions undertake periodic project site inspection.

302. Our review of projects records revealed that the 6 Unit classroom block with ancillary facilities at Aplaku had been completed and handed over to the Ga South Municipal Assembly by the contractor, Messrs. J.O. Okine LTD.

303. Seven months into the handing over when we visited the site, we noted various roof leakages in one of the classrooms. Our interaction with users of the facility revealed that the leakages occurred about a month earlier which meant it fell within the defect liability period. Meanwhile, the Assembly has not paid the contractor his retention funds of GH¢19,847.81. We found that infrequent monitoring and evaluation of projects by the Works department and M&E teams accounted for the stalemate.

304. Since the retention funds had not been paid to the contractor, we recommended to management of the Assembly to remedy the situation with the retained amount. Meanwhile, the M&E team and works department should be up and doing in their approach to field work.

Procurement and stores irregularities

Projects executed but not budgeted for in the MTDP and the Procurement Plan- GH¢670,267.38 305. As a guide for undertaking its programmes and activities for any given period, Assemblies are enjoined to prepare a development plan and Annual Action plans for identification and prioritization of its development programmes.

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306. We however noted that management of the Ga Central Municipal Assembly spent a total amount of GH¢670,267.38 to execute projects and procure items and services which were not budgeted for in the 2016 Annual Action Plan and the Medium Term Development Plan (2014-2017).

307. We attributed the irregularity to the inability of management and the Procurement team to critically assess procurement requirements of the Assembly and factor it into the Annual Action Plan. Making unplanned procurements in our view could lead to throwing the budget into disarray thereby affecting the implementation of other prioritized programmes.

308. To enable management to achieve its strategic objective set out in the five year development plan, we urged management of the Ga Central Municipal Assembly to desist from this practice and ensure that all the needed programmes are captured in the Annual Action Plans.

Procurement without alternative price quotations- GH¢212,856.15 309. Section 20 of Public Procurement (Amendment) Act, 2003 (Act 914) requires among others that a procurement entity should obtain quotations from as many suppliers and contractors as practicable but should compare quotations from at least three different sources that should not be related.

310. The Ga Central (GH¢10,979.70) and Ningo Prampram (GH¢201,876.45) Municipal Assemblies violated the provision in the above stated law by procuring goods and services to the tune of GH¢212,856.15 without seeking alternative price quotations to ensure comparism and competitive pricing and value for money. We also noted that the single source procurement was without the required approval from the PPA.

311. To promote transparency and accountability in management of public resources, we recommended that management should comply with the provisions of the Public Procurement Act during the procurement of goods and services. We further recommended the sanctioning of any management personnel found culpable of not complying with the Act.

Failure to deal with VAT registered persons- GH¢12,518.00 312. Management of the Ga South Municipal Assembly contravened Part VI, Regulation 183(4) of FAR L.I 1802 which requires departments to procure government stores from only VAT registered persons and procured building materials valued at

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GH¢12,518.00 from a non-VAT registered supplier. Management had offered no justification for sidestepping the law under the circumstance.

313. We recommended to management to adhere to the provision of the law or be sanctioned for non-adherence.

Tax irregularities

Withheld taxes not remitted- GH¢20,630.83 314. Contrary to Section 117 of the Income Tax Act, 2015 (Act 896) which requires withheld taxes to be remitted within fifteen days after the end of each calendar month, management of Ningo Prampram District Assembly failed to remit to the Commissioner-General of the Ghana Revenue Authority (GRA) taxes withheld over five to eight months amounting to GH¢20,630.83.

315. We recommended to management to remit without any further delay, the amount to GRA and in the event of the attraction of a penalty for delayed remittance, the cost should be recovered from the Finance Officer.

Under deduction of withholding tax- GH¢4,966.78 316. Section 116(1) of the Income Tax Act 2015 Act 896 states that “Subject to Sub- Section (3), a resident person shall withhold tax at a rate provided for in paragraph 8 of the first schedule where that person pays a service fee with a service in the country for any other supply of service”. Under the Income Tax (Amendment) Act, 2016 (Act 907) the applicable rate for services for paragraph 8 of Section 116 of Act 896 has been amended from 5% to 7.5%.

317. We noted from our review of payments made from GAMA Project account that management of Ga Central Municipal Assembly withheld and remitted GH¢9,933.59 to Ghana Revenue Authority (GRA) being 5% tax on a gross payment of GH¢198,671.69 made to two consultancy firms instead of GH¢14,900.37 at the revised rate of 7.5% on services. This resulted in a tax under deduction of GH¢4,966.78 and therefore denied Government earmarked income for its numerous developmental projects and services. Details are given below:

Date Payee Gross Under Correct Diff Amount deduction Deduction (GH¢) (GH¢) (GH¢) (GH¢) 29/3/16 Lambda Consult 120,608.73 6,030.44 9,045.65 3,015.21

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31/3/16 Colan Consult 78,062.96 3,903.15 5,854.72 1,951.57 198,671.69 9,933.59 14,900.37 4,966.78

318. We recommended that the difference of GH¢4,966.78 should be recovered from the entities involved or from the Finance Officer for negligence.

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NORTHERN REGION

Introduction 319. A total amount of GH¢40,890,966.21 was released by the Administrator of the District Assemblies’ Common Fund for distribution among the 26 Assemblies in the Northern Region, despite the approved projection of GH¢77,932,240.78 for the year. The releases which formed 52.47% of the allocation were for the first three quarters of the year.

Cash irregularities

Unsupported payment vouchers – GH¢11,629,909.16 320. Part IX, Section 7 of the Financial Memoranda for District Assemblies provides that where applicable the original invoices and statements shall be attached to a payment voucher. Again Section 13 and 14 of the same instrument stipulates that official receipts shall be obtained in support of payments to Government Departments, State Enterprises and others including Assemblies.

321. However, our examination of payment vouchers disclosed that eight Assemblies detailed below failed to support payment vouchers amounting to GH¢11,629,909.16 with the relevant receipts and statements of expenditure to enable us validate the payments.

No. Assembly Amount GH¢ 1 Yendi Municipal Assembly 11,178,081.00 2 Zabzugu District Assembly 6,712.00 3 Bole District Assembly 6,316.00 4 Bunkprugu/Yunyo District Assembly 31,722.00 5 West Mamprusi Distict Assembly 10,366.00 6 West Gonja District Assembly 191,501.16 7 Mion Gonja District Assembly 175,437.00 8 Mamprugu Moaduri District Assembly 29,774.00 Total 11,629,909.16

322. We were of the opinion that lack of effective supervision of the accounting staff by the District Finance Officers in ensuring that the disbursement receipts and related documents are obtained before payments are made were the causes of the lapse. Also the failure of both the Authorising and Approving officers of the payment to ensure the attachment of the supporting documents to the payment vouchers before recommending for the payment accounted for the irregularity. The absence of the

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 60 supporting documents could be a way to conceal fictitious transactions and misappropriation of funds.

323. We recommended that in the absence of the supporting documents for the payment vouchers the amount of GH¢11,629,909.16 should be recovered from the Coordinating Directors and Finance Officers.

Payments not accounted for - GH¢221,889.50 324. Sections 7, 13 and 14 of the Financial Memoranda of Assemblies require that original of relevant supporting documents including invoices, official receipts, and statements of expenditure should be attached to payment voucher for easy scrutiny.

325. On the contrary, we noted in our audits that Tamale Metropolitan (6) (GH¢24,133.00), East Gonja (16) (GH¢145,756.50), and Sagnarigu District (3) (GH¢52,000.00) Assemblies made 25 payments with a total face value of GH¢221,889.50 without the relevant supporting documents attached.

326. The anomaly was caused by the authorising officers’ non-adherence to rules of the payment processes as specified in the Financial Memoranda of Assemblies. This has the tendency of duplicated payment, overpayments and payments for goods not supplied.

327. We recommended that failure to support the payments with the relevant document for authentication, the authoring and approving officers of the payments should refund the money into the Assemblies account.

Unretired imprest – GH¢82,594.50 328. Part IX, Section 39 of the Financial Memoranda for Assemblies stipulates that standing imprest shall be retired at the end of each financial year, while special imprest shall be retired within the period allowed.

329. We noted that officials of four District Assemblies failed to account for a total amount of GH¢82,594.50 being special imprests granted to them between January and December, 2016 for the performance of assignments on behalf of their respective Assemblies. Details are shown below:

Assembly Amount (GH¢)

Zabzugu North District 5,300.00

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Karaga District 50,311.50 West Gonja District 6,819.00 Central Gonja District 20,164.00 Total 82,594.50

330. Failure of the District Finance Officers of the 4 Assemblies to ensure that officers retire imprests after execution of the various assignments was the cause of the omission. There stood a potential risk that the imprest amounts might not have been used for their intended purposes.

331. We recommended that failure by the officials to account for the imprest, management of the four Assemblies should treat the amount as personal loans and recovered from any entitlements due them.

Expenditure in excess of required percentage as per DACF Guidelines - GH¢31,878.57 332. Under Part I, Section 5 of the Guidelines on the utilization of DACF 2016 an Assembly is allowed to use 10% of its DACF allocation for recurrent expenditure. We however, noted that management of East Gonja District Assembly expended a total amount of GH¢235,021.30 on recurrent expenses which was GH¢31,878.57 in excess of the required 10% percent of GH¢203,142.73.

333. Management therefore violated the 2016 DACF Guidelines leading to misapplication of funds which has the tendency of stalling other earmarked activities.

334. We recommended re-imbursement of the Common Fund account with the IGF and advised management to ensure the operation of the Common Fund within the Annual Guidelines.

Failure to produce payment vouchers for audit – GH¢15,242.51 335. In breach of Section 11(2) of the Audit Service Act, 2000 (Act 584) which provides that the Auditor-General or his representative shall have access to all books and records in the course of his work, management of the Bunkprugu/Yunyoo District Assembly (BYDA) failed to present for audit four payment vouchers with the face value of GH¢15,242.51. 336. Under the circumstance, we could not validate the genuiness of the payment. We recommended that failure to produce the payment vouchers to justify the payment the District Finance Officer should be held responsible for the recovery of the amount of GH¢15,242.51.

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Failure to locate/ obtain title to heavy duty equipment procured – GH¢60,000.00 337. Our audits revealed that the Sagnarigu District Assembly procured a Massey Ferguson Tractor at a cost of GH¢60,000.00 from Messrs. Delovely car rentals. Management could however, not produce any record of ownership of the tractor for our verification. We further noted that particulars of the tractor had not been recorded in the Assembly’s assets register. Our quest to physically inspect the tractor was not met as management could not readily tell the whereabouts of the tractor.

338. This act of management contravenes Part XII, Section 64 of the Financial Memoranda for Assemblies which requires of any Assembly to maintain a register of assets for all it owns and leases. We attributed the situation to management’s failure to exercise due diligence in the procurement and ineffective supervision of the machinery which can result in loss to the Assembly and the State.

339. We recommended that management should immediately follow-up to formalize the Assembly’s ownership of the equipment to prevent any loss or diversion and update the assets register accordingly. We also requested management to make the equipment available for our inspection or refund the cost of the equipment into the Assemblies account.

Failure to repay inter-account borrowings - GH¢34,157.00 340. Regulation 179 of LI 1802 does not allow heads of department making payments out of earmarked funds for specific activities other than those activities. Our audits revealed that, the Tamale Metropolitan (GH¢6,557.00) and Mion District (GH¢27,600) Assemblies borrowed a total amount of GHȼ34,157.00 from their People with Disability accounts.

341. As of the time of audit and on leaving the location, management of the Assemblies had not paid back the amount possibly due to managements’ indifference towards such borrowings. Consequently, programmes earmarked from such funds would be stalled.

342. We recommended immediate refund of the amount into the accounts in order not to stall any programmes and activities of the people with disability. Payment to third parties without authority notes: GH¢7,000.00 343. We noted from our audit of North Gonja District Assembly that a total amount of GH¢7,000.00 was paid from the Member of Parliament’s share of Common Fund to support needy students from the North Gonja District. The payments were duly signed for by proxies on behalf of the beneficiaries without any authority notes. This was in contravention of regulation 43 of LI 1802 which states that a payment shall be

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 63 made to the name of person(s) named on the payment voucher or their representative duly authorised in writing to receive the payment.

344. As a measure to adequately authenticate payments, we urged management to ensure that such payments are supported with authority notes duly signed by the beneficiaries together with photocopies of the students ID cards, failure of which the Finance officer should be held liable for any losses emanating from such transactions.

Contract irregularities

Payments for repairs works without works orders/performance certificate – GH¢33,963.30 345. Management of Zabzugu (GH¢8,365.80), Saboba (GH¢17,140.00) and Nanumba South (GH¢8,457.50) District Assemblies carried out repairs works on their official vehicles to the tune of GH¢33,963.30 without any works orders or performance certificates to initiate and confirm execution.

346. A very high possibility of mechanics inflating the cost of repairs and payments made for shoddy works cannot be ruled out and as such we could not guarantee that the Assemblies concerned obtained value for money from these transactions.

347. We recommended that management should ensure the use of these expenditure initiators in order to obtain value for money and to avoid misappropriation by personnel. We also recommended that in the absence of the relevant documents the Authoring and Approving officers should refund any avoidable cost that emanates from the transaction.

Procurement and stores irregularities

Fuel purchases not accounted for - GH¢65,287.45 348. Contrary to Section 1604 of the Store Regulation 1984, and Part XII, Section 60 of the Financial Memoranda of Assemblies, the Mamprugu Moaduri District Assembly purchased fuel and lubricants worth GH¢65,287.45 but failed to record same in the vehicle logbooks of the Assembly.

349. We were therefore unable to validate the purchase and use of the fuel for any official assignments. We therefore attributed the anomaly to the Finance and Transport officers of the Assembly’s failure to intensify their supervisory roles in transport management. This can result in fuel purchased not used for the intended benefits of the Assembly.

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350. We requested management of the Assembly to provide evidence of receipt and utilization of the fuel purchased, failure of which the amount of GH¢65,287.45 should be recovered from the Coordinating Director, Finance and Transport Officers for negligence in their supervisory responsibilities.

Procurements without alternative price quotations – GH¢113,866.98 351. Whereas Section 20 of Act 914 mandates Assemblies to obtain quotations from three alternative sources among others, the West Mamprusi (GH¢23,617.00) and Mion (GH¢90,249.98) District Assemblies procured goods and services to the tune of GH¢113,866.98 without seeking alternative price quotation.. The single sourced procurement was without the required approval of the PPA.

352. Besides not promoting transparency and accountability in the management of public resources, failure to comply with the regulation can lead to the Assemblies not obtaining value for money in the procurement process.

353. We recommended compliance with the provision in the procurement law and any losses emanating from such violations should be recovered from all responsible officials whose inaction contributed to the loss.

Unaccounted stores– GH¢56,354.50 354. Regulation 0522 of the Ministry of Finance Stores Regulation 1984 requires a Store Receipt Voucher (SRV) to be prepared to record all goods received into the store and subsequently recorded in the store ledgers. We noted that management of the Yendi Municipal (GH¢9,854.50) and Zabzugu District (GH¢46,500.00) Assemblies purported to have purchased goods worth GH¢56,354.50 but could not show any trace of the supply of the items involved neither could we find any evidence for their utilization.

355. We recommended that failure to make available to us the relevant documentation to authenticate the receipt and use of the items in the interest of the Assemblies, the amounts involved should be recovered from the spending officers and their accountants of the two Assemblies.

Tax irregularities

Payment of VAT without obtaining VAT receipt – GH¢13,207.20 356. In contravention of Regulation 19(3) of the Value Added Tax Regulation, 1998 (L.I. 1646), management of Yendi Municipal (GH¢1,330.00), Zabzugu (GH¢4,580.14), Sawla/Tuna/Kalba (GH¢1,133.47) and Mamprugu Moaduri (GH¢6,163.59) District

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Assemblies procured goods valued GH¢13,207.20 supposedly from VAT accredited agents but failed to obtain VAT receipts to compel the suppliers remit the VAT revenue component of GH¢13,207.20. The VAT component had been provided on the private invoices of the suppliers given to the Assemblies.

357. Failure on the part of the District Finance Officers of the respective Assemblies to duly scrutinize the underlying documents substantiating and authenticating transactions before making payment was the cause of the infraction. As a result the suppliers are not bound to remit the VAT amount received to the tax authorities.

358. We urged management of the four Assemblies to obtain the VAT invoices from the suppliers so as to compel them to pay the VAT component to the Ghana Revenue Authority or the amount recovered from them into the Assemblies accounts. Failing this, the VAT amount of GH¢13,207.20 should be recovered from the District Finance Officers and remitted to the Commissioner-General of Ghana Revenue Authority.

Failure to withhold/remit taxes – GH¢11,352.70 359. Management of Yendi Municipal (GH¢4,181.08) and Zabzugu District (GH¢1,830.00) Assemblies violated Section 117(3) of Act 896 which enjoins a withholding tax agent to withhold taxes on payments made to suppliers by failing to deduct taxes and pay same to the Commissioner-General, an amount of GH¢6,011.08 from payments made to suppliers.

360. In a related development the Karaga (GH¢3,759.31) and Bunkpurugu/Yunyoo (GH¢1,582.31) District Assemblies also failed to remit withheld taxes amounting to GH¢5,341.62 to the Revenue Commissioner. 361. Ineffective and inadequate supervision by the District Finance Officers over the activities of schedule officers of the finance sections of the Assemblies were the cause of the anomaly.

362. We recommended to management (FOs) of the respective Assemblies to strictly adhere to the provisions of the tax law and act as such otherwise any avoidable cost incurred should be borne by them.

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UPPER EAST REGION Introduction 363. Out of the Parliamentary allocation of GH¢39,337,665.77 for the 13 Assemblies in the Upper East Region during the year under review, actual amount received was GH¢20,640,432.69 and this relates to the first three quarters of the year. The amount received represented 52.47% of the 2016 total regional allocation.

Cash irregularities

Unsupported payment vouchers – GH¢1,102,070.36 364. Section 39(2c) of the Financial Administration Regulations 2004 L.I 1802 requires the head of accounts to always ensure that transactions are properly authenticated to show that amounts paid are due and payable.

365. On the contrary, we noted that nine Assemblies failed to support 197 payment vouchers amounting to GH¢1,102,070.36 with any disbursement receipts and statements of account to validate the payments. Below are the details.

No. Assembly No. of PV’S Amount GH¢ 1 Bolgatanga Municipal 1 24,195.00 2 Bongo District 37 179,965.64 3 Talensi District 7 5,935.00 4 Garu- Tempane District 49 285,814.45 5 Pusiga District 15 242,596.00 6 Binduri District 63 287,842.48 7 Builsa South District 2 5,093.75

8 Nabdam District 8 13,382.50

9 Bawku West District 15 57,245.54 Total 197 1,102,070.36

366. Failure of the Coordinating Directors and their Finance Officers to ensure that the relevant supporting documents were attached to the payment vouchers before authorizing and approving the payment as well as the failure of the Internal Auditor to properly scrutinize vouchers and ensure that all payment vouchers were properly acquitted accounted for the lapses. 367. We recommended that failure to produce the relevant documents to authenticate the payment, the Coordinating Directors, their Finance Officers and Internal Auditors should be held liable for recovery of the amount.

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Payments not fully accounted for - GH¢ 152,420.27 368. Contrary to Part I, Regulation 2 of the Financial Administration Regulations (LI 1802), we noted that out of total amount of GH¢324,098.96 paid on 69 payment vouchers for various assignments in five Assemblies, only GH¢171,678.69 was accounted for leaving a difference of GH¢152,420.27 not accounted for with any receipts, invoices and statements of claim.

Assembly PV’s Total Accounted Unaccounted Amt. for for (GH¢) (GH¢) (GH¢) Garu- Tempane District 2 10,447.00 7,137.00 3,310.00 Talensi District 2 41,528.00 38,384.00 3,144.00 Bongo District 27 140,931.40 92,510.06 48,421.34 Nabdam District 2 2,681.56 714.13 1,967.43 Bawku West District 36 128,511.00 32,933.50 95,577.50 Total 69 324,098.96 171,678.69 152,420.27

369. In our opinion failure to account for the outstanding amount indicates that the amount was not used in the interest of the Assemblies. We recommended that in the absence of immediate accountability, the amount should be treated as personal loans to the advance holders and recovered as such into the Assemblies account.

Pre-financing of project work before execution - GH¢180,000.00 370. Regulation 39(1 & 2c) of the Financial Administration Regulations (FAR) 2004 enjoins all heads of departments to ensure that moneys are utilized in a manner that secures both optimum value for money and the intention of Parliament. The head of the accounts section of all departments shall also control the disbursements of funds and ensure that transactions are properly authenticated to show that amounts are due and payable.

371. We noted per agreements approved by the Upper East Regional Coordinating Council in November 2016, that management of Bawku West and Bongo Assemblies had awarded contracts for waste landfill site management to Messrs. Waste Landfills Co. ltd. The Assemblies were to pay a rate of GH¢60,000.00 on quarterly basis from January 2016 and to run for five years. We noted that prior to the final approval of the agreement by the Regional Coordinating Council in November 2016 and when the Contractor had not commenced work, the Assemblies made a total payment of GH¢180,000.00 as detailed below to the contractor.

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Assembly Date of Date of Payment Amount approval Payment period GH¢ of award Bongo 20/11/2016 3/8/16 Jan-Mar 2016 60,000.00 Bongo 20/11/16 11/11/16 Apr-Jun 2016 60,000.00 Bawku West 21/11/2016 28/7/2016 Jan.-Mar 2016 60,000.00 Total 180,000.00

372. The lapse was as a result of the failure of the Coordinating Directors and Finance Officers to use the contract award date and commencement of work by the contractor as basis for payment.

373. This resulted in payments for works not executed and could result in possible loss of funds to the Assemblies. However work commenced in December 2016.

374. We recommended that the Co-ordinating Directors and Finance Officers should be reprimanded for non-adherence to the terms and conditions of the contract agreement and any avoidable cost incurred should be recovered from them.

Failure to recover advances to staff-GH¢5,149.00 375. The 2016 Guidelines on the utilization of DACF frowns on the use of DACF for personal advances. Besides, Part IV, Regulation 114(1) of LI 1802 states that, the duty of the head of department to deduct advance recoveries from salary payments will not diminish the responsibility of a public officer, who has received an advance, to repay it according to the agreement and to report any failure to make deductions from salary when due.

376. Our audit however disclosed that management of Builsa South District Assembly granted from DACF personal advances totaling GH¢5,149.00 to six members of staff some dating as far back as February 2013 and also failed to make recoveries. Total neglect of the law by both management and the six affected staff accounted for the lapse and has the tendency of the inability to stall earmarked programmes of DACF and also deny other needy staff the facility. 377. We recommended to management to avoid the laxity and immediately recover the total amount of GH¢5,149.00 from the staff concerned. We also recommended that management should desist granting advances from DACF or be sanctioned.

Misapplication of People with Disability Fund- GH¢62,091.68 378. We noted that management of the Binduri District Assembly made withdrawals totaling GH¢62,091.68 from the People with Disability (PWD) account

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 69 for other uses other than PWD activities. As of 31 December 2016, no efforts had been made by management to refund the amount.

379. Management’s inaction therefore violated Part VII, Regulation 179 which prevents heads of departments from authorizing payments to be made out of funds earmarked for specific activities for purposes other than those activities. This could negatively affect the activities of PWD for the year.

380. We recommended to management of the Assembly to desist from the practice and ensure that the PWD funds are duly refunded without any further delay.

Payments to contractors without inspection and monitoring reports - GH¢78,310.27 381. Part IX, Section 70 (a) of the Financial Memoranda for District Assemblies provides that “no payment shall be made to contractor unless the Works Engineer or such other person as the Assembly may appoint for the purpose has inspected the work done and given a certificate which shall be attached to the payment voucher’.

382. We noted that the Bongo District Assembly made contract payments totaling GH¢78,310.27 to two contractors without inspection and monitoring reports. The practice could lead to unsatisfactory or payment for no work done.

383. We recommended that in the absence of a monitoring and inspection report to the payment, any avoidable cost incurred should be recovered from the Co-ordinating Director and his Finance Officer and the monitoring team.

Non acknowledgement of school fees paid -GH¢20,350.00 384. Contrary to Part 11, Regulation 39 Sub-section 2(c) and (d) of FAR 2004, we noted that a total amount of GH¢20,350.00 was paid to 21 needy students on 21 payment vouchers from the MP’s Common fund at Bongo District Assembly to support their education but these were not supported with official receipts from the schools to substantiate the payments. The cause of this anomaly was failure by the Finance Officer to demand receipts from the schools. This could lead to payment to unintended beneficiaries.

385. We recommended that the Finance Officer should obtain the receipt from the schools to authenticate the payments.

Payment vouchers not presented for audit - GH¢ 553,299.33 386. Part I, Regulation 1 (1) of the Financial Administration Regulation, 2004 (LI 1802) requires among others that public officers responsible for the conduct of

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 70 financial business on behalf of the government should keep proper records of all transactions and to produce the records for inspection when called upon to do so.

387. We noted that payments totaling GH¢553,299.33 made vide 107 vouchers by the Bawku West District Assembly and duly recorded in the cashbooks could not be presented by the Finance Officer for audit. We could therefore not validate the authenticity of the transactions and attributed the situation to poor record keeping.

388. We recommended that failure to make the payment vouchers available for our examination to ascertain and confirm the validity of payments, the Finance and spending officer would be held liable for recovery of the amount into the Assembly’s account.

Contract irregularities

Delayed contracts- GH¢2,010,786.48 389. Contract agreements require that the contractors commence work on projects on scheduled dates and complete on stipulated dates provided in the contracts.

390. Our audit revealed that although the contract agreements had provided the completion dates of eight projects valued at GH¢2,010,786.48 by the Binduri District (5) (GH¢984,183.47), Builsa North (1) (GH¢474,428.60) and Bawku West (2) (GH¢552,174.41) District Assemblies these projects had as of 31 December 2016 been unduly delayed beyond the completion dates for periods ranging between 9 and 67 months. Below are the details:

Assembly Award Completion Contract Period date date sum GH¢ delayed Binduri District Construction of DCE’s 14/1/14 24/7/14 204,399.18 29 months Accommodation Construction of CHPS 10/7/15 10/1/16 187,252.52 11months compound Ziako 3 Unit classroom block, 24/10/15 9/3/16 189,678.00 9 months Teampellim Construction of market 22/11/13 22/5/14 82,439.05 31 months stalls at Boko and Kukparigu

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2 Unit lockable stores at 18/6/15 18/12/15 320,414.72 12 months Batua Builsa North District Assembly complex Phase 27/5/10 27/5/11 474,428.60 67 months two Bawku West District Office blk DHMT of GHS 5/2/14 14/3/15 245,479.90 21 months Zebilla Const. CHPS Compound & 21/10/15 31/3/16 306,694.51 9 months supply of furniture Biringu Total 2,010,786.48

391. All the three management explained that the delay and inadequacy of DACF releases were the attributes to the delayed completion of the projects which in our view can result in avoidable variations and costs to the Assemblies.

392. We recommended to management to ensure the completion of the projects before awarding new ones to enable the targeted communities to benefit from them.

Failure to recover mobilization -GH¢26,505.00 393. Regulation 12 of the Financial Administration Regulations, 2004, L.I 1802 requires all persons entrusted with custodial duties for public and trust moneys to protect public and trust moneys against unlawful diversion from their proper purposes and against incidental loss, and locate such moneys so as to facilitate the efficient and economical discharge of public financial business. 394. We noted that management of the Builsa South District Assembly, failed to recover the payment of a mobilisation amount of GH¢26,505.00 from the contractor, Messrs, AB&K Construction Ltd. after his contract on the construction of the District Coordinating Director’s Bungalow, Fumbisi awarded on 5 June 2014 and valued GH¢176,704.85 was terminated for delinquency and vacating from site.

395. We attributed the lapse to management’s inability to thoroughly assess the capabilities of the contractor prior to awarding the contract to him. The situation had led to loss of funds to the Assembly and thereafter undermining its capacity to complete the contracts.

396. We recommended to management to ensure recovery of the amount from the contractor otherwise all responsible officials should be held liable for refund of the amount.

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Abandoned Assembly Complex project and overpayment- GH¢99,818.06 397. Part II, Regulation 45 of LI 1802 requires that if any expenditure is made in excess of the amounts actually due, the overpayment shall be recovered immediately and paid into the account form which it was originally paid and the officer concerned shall report the circumstances immediately to the head of department or the appropriate authority.

398. Our review of contract management at the Builsa North District Assembly, Sandema revealed that on 27 May 2010 management awarded the construction of its Assembly Complex project valued at GH¢474, 428.60 to Messrs. Bisco Tesco Enterprise to be completed in 12 months. We found that as of 2016 the project had been abandoned by both Assembly and contractor due to what management termed as ‘financial challenges’.

399. We however found that prior to abandoning the project the contractor was overpaid an amount of GH¢99,818.06 which the Assembly is currently pursuing to recover. The overpayment had occurred because the Monitoring and Evaluation Team of the Assembly approved a Certificate for payment of GH¢185, 000.00 as work done instead of GH¢ 85,181.94. While the abandoned project can lead to unwarranted variations and cost overruns the overpayment can also lead to loss of funds to the Assembly. We recommended to the Assembly to ensure recovery of the overpayment failing which the amount be recovered from the Monitoring Team and advised that measures be put in place aimed at completing the project.

Failure to withhold retention- GH¢3,544.90 400. Part IX Section 72 of the Financial Memoranda for Districts Assemblies states that every contract shall provide for at least ten percent of the contact sum to be paid to the contractor to be retained and shall specify the period after the completion of the contract for which such sums shall be retained.

401. On the contrary the Pusiga District Assembly paid two contractors amounting to GH¢35,449.00 without retaining the required 10% of GH¢3,544.90.

402. Failure on the part of management to ensure that retention amounts were deducted during contract payments and paid only six months after completion of the project caused the lapse. The situation could lead to non-availability of funds to finance defects arising during the defect liability period.

403. We recommended to management to ensure that any defect identified within the defect liability period is rectified at no extra cost and also retention amounts were recovered as and when certificates are approved for payments.

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Procurement and store irregularities

Purchases without alternative quotations – GH¢70,274.32 404. Contrary to Section 20 of the Public Procurement Amendment Act, 2016 (914), we noted that management of Talensi (1) (GH¢24,167.79), Pusiga (4) (GH¢9,162.00) and Bongo (10) (GH¢36,944.53) District Assemblies paid for goods and services on15 payment vouchers valued at GH¢70,274.32 without obtaining any alternative quotations to ensure competitive pricing and value for money in the procurement dealings. The single source procurement was also without the required approval from the PPA.

405. Such practice blurs transparency and did not guarantee fair pricing. We recommended to management of the Assemblies to strictly adhere to the procurement law or be held liable for any future losses that may occur from non- compliance with the law.

Purchases from non-VAT registered entities- GH¢232,173.33 406. We noted contrary to Part VI Section 183(4) of the Financial Administration Regulations (FAR, 2004) that the under-listed four Assemblies made procurements amounting to GH¢232,173.33 from non-VAT registered suppliers, resulting in the non- payment of the 17.5% VAT of GH¢40,630.33. The details are as follows: Name of Assembly PV’S Amount GH¢ VAT GH¢ Talensi District 4 96,967.25 16,969.27 Pusiga District 9 26,777.05 4,685.98 Nabdam District 62,949.03 11,016.08 Garu- Tempane District 10 45,480.00 7,959.00 Total 23 232,173.33 40,630.33

407. We urged management of the Assemblies to ensure future compliance with the provisions of the Financial Administration Regulation to prevent any penalties otherwise the cost incurred should be recovered from all culpable officials.

Payment for goods not supplied (MP’s DACF Account) – GH¢4,500.00 408. We noted in violation of Part II Section 39 (2c) of the Financial Administration Regulations, 2004 (LI 1802) that the Builsa South District Assembly paid an amount of GH¢4,500.00 from the MP’s Common Fund to Ministry of Mines for the supply of 100 pieces of solar lanterns. However, three months as of 31 December 2016 these lanterns have not been delivered.

409. We were of the view that the absence of follow up actions by management had led to the situation.

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410. We therefore recommended to management to pursue delivery of the lanterns or have the amount recovered from the Ministry of Mines.

Payments for vehicle repairs/maintenance without works orders: GH¢51,607.13 411. Under public service transport management, a Transport officer is required to ensure that vehicles are in perfect condition and that where such vehicles need to be maintained, the Transport Officer would have to provide works orders to identify the needed works to be carried on them. In the event of the completion of the repairs, the Transport Officer would also need to certify the condition of the vehicles before payments are made.

412. Our audit however at Bongo District Assembly revealed that the District Finance Officer made twelve payment totaling GH¢51,607.13 for the maintenance of official vehicles without works orders and certificates of satisfactory work done after the supposed maintenance works. We attributed this to the neglect of the guideline by the Coordinating Director, Finance and Transport officers. This can result in unsatisfactory maintenance works and payments for no work done. 413. We recommended that the Coordinating Director, Finance and Transport Officers adequately comply with the public service transport management system or be made to pay for any avoidable cost that might occur from this omission.

Tax irregularities

Failure to withhold and remit taxes: GH¢33,074.73 414. Section 116(1) and 117 (1) of the Income Tax Act 2015, Act 896 states among others that a withholding agent shall pay to the Commissioner a tax that has been withheld or that should have been withheld within 15 days.

415. Management of Pusiga (13) (GH¢75,733.39) (GH¢4,538.22) and Nabdam (2) (GH¢3,016.80) (GH¢ 271.68) District Assemblies failed to withhold various taxes amounting to GH¢4,809.90 on 15 transactions valued at GH¢78,750.19.

416. In another development, taxes withheld by the Bolgatanga Municipal (GH¢936.22), Binduri (GH¢1,286.94), Bongo (GH¢2,357.83.) and Bawku West (GH¢23,683.84) totaling GH¢28,264.83 were yet to be remitted to the Commissioner- General, Ghana Revenue Authority.

417. We found the Finance Officers culpable in both situations as they are fully aware and conversant with the regulations and had implemented them in some

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 75 situations. Consequently this might deny government of earmarked development funds and also attract penalties.

418. We recommended the immediate compliance with the above stated Regulations otherwise the payment of any penalties should be recovered from the Finance Officers.

UPPER WEST REGION Introduction 419. During the year, the 11 Assemblies in the Upper West Region received a total amount of GH¢16,482,873.94 from the Common Fund Administrator as against a Parliamentary allocation of GH¢31,413,963.02. The amount which represented 52.47% of the allocation related to the first three quarters of the year.

Cash irregularities

Misapplication of DACF – GH¢172,525.51 420. Whereas the Common Fund Administrator per bullet 8 of Part I of his 2016 Guidelines made room for Assemblies to use 10% of their allocations for recurrent expenses, management of Nadowli District Assembly rather disbursed a total amount of GH¢321,898.24 representing 21.55% of total net receipt of GH¢1,493,727.34 from the Administrator of the District Assemblies Common Fund. This resulted in an over expenditure of GH¢172,525.51 on recurrent activities and might stall other earmarked programmes of the Assembly to be funded from the DACF.

421. We advised the Assembly to desist from the practice and further recommended for a refund of the excess amount of GH¢172,525.51 into the District Assembly Common Fund (DACF) account, failure of which the spending officer(s) should be held liable and accordingly reprimanded for neglecting the guidelines in the disbursement process.

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Unreceipted/unsupported payments – GH¢102,941.46 422. Section 7, 13 and 14 of Part IX of the Financial Memoranda (FM) for MMDAs determines for Assemblies the form in which expenditure can be acknowledged. These involve the supporting of the payment voucher with invoices, statement of expenditure and payees’ receipts etc.

423. We noted that Wa West (7) (GH¢48,628.21) and Sissala East (8) (GH¢54,313.25) failed to support 15 payments amounting to GH¢102,941.46 with any invoices, official receipts and statements of expenditure.

424. We were of the opinion that the Finance Officers and Internal Audit Units had failed in their responsibilities to ensure that the payments were supported with the necessary documents before payments were affected. Also, the failure of the spending officers to ensure that the relevant documents were attached to the payment vouchers before authorising and approving the payments resulted in the lapse.

425. We recommended that in the absence of the relevant supporting documents, justifying the expenditure the amounts should be recovered from the Co-ordinating Directors, Internal Auditors and Finance officers of both Assemblies.

Unpresented payment vouchers - GH¢209,379.15 426. Finance officers of the Wa Municipal (18) (GH¢192,556.40) and Sissala West (6) (GH¢16,822.75) failed to submit for audit examination, 24 payment vouchers with a total value of GH¢209,379.15 thereby contravening Part I, Regulation 1 (1) of Part 1 of the Financial Administration Regulations, 2004 (LI 1802).

427. Under the circumstance we could not ascertain the genuineness of the expenditures. In our opinion the Finance Officers simply failed to ensure that the paid vouchers were safeguarded and properly handled.

428. We recommended that failure to locate and submit the outstanding payment vouchers for our scrutiny the Finance Officers should be held liable for refund of the amount into the Assembly’s account.

Payment of PWDs without authority notes- GH¢5,922.00 429. Part II, Regulation 43 of LI 1802 and Part IX, Section 16 of the Financial Memoranda for Assemblies respectively provide that a payment shall be made only to the person(s) named on the payment voucher or to their representatives duly authorized in writing to receive the payment.

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430. We however noted at the Sissala West District Assembly that the Finance Officer allowed persons other than the actual PWD beneficiaries to sign and collect a total amount of GH¢5,922.00 on 18 payment vouchers without any written authority. Consequently we could not validate whether the amount was paid to intended payees.

431. We recommended to the District Co-ordinating Director (DCD) to ensure that the issue is regularized, failure of which the Finance Officer should refund the amount into the Assembly’s account.

Unretired imprests - GH¢22,969.00 432. Part XIII, Regulation 288 states that, imprest shall be retired at the close of the financial year and any imprest not so retired shall be adjusted to a personal advance account in the name of the imprest holder. Also special imprest according to Regulation 283 must be fully retired by the dated specified in the approval to operate the imprest.

433. On the contrary, imprests for official assignments given to officials of Nadowli (6) (GH¢13,529.00) and Daffiama (6) (GH¢9,440.00) District Assemblies amounting to GH¢22,969.00 on 12 payment vouchers had as of 31 December 2016 not been retired by the officials , three to five months after the funds had been released to them.

434. Management’s failure to institute control measures to ensure that monies advanced for certain activities were accounted for at the given dates of accountability was the cause of the lapse.

435. We recommended that failure to retire amount, it should be adjusted as personal advances in the names of the recipients and recovered from any entitlements due them.

Borrowing from People with Disability (PWD) Accounts – GH¢10,000.00 436. In October 2016, the Wa Municipal Assembly borrowed a total amount of GH¢10,000.00 from the People With Disability Fund to fund activities other than PWD related ones but had failed to refund the amount as of 31 December 2016.

437. This was in contravention of Part V, Regulation 179(1) of LI 1802 which frowns on the use of earmarked funds for purposes other than the specific activities set out.

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438. Borrowing from PWD accounts is likely to affect the ability of the Assembly to execute planned programmes related to the PWD in the District.

439. We recommended to management to immediately refund the amount into the PWD’s account from its local resources without further delay.

Contract irregularities

Abandoned projects- GH¢360,759.90 440. Assemblies as the local administration are required to harness and develop the resources in their localities by providing the communities with social amenities to enhance the well-being of its people. In doing so annual Guidelines for the utilization of DACF require, all Assemblies to give priority to all uncompleted or on-going projects before embarking on new ones.

441. We however noted in our project management reviews that four projects; Wa Municipal (1) (GH¢162,602.76), and Jirapa (2) (GH¢198,157.14) District Assemblies on which the Assemblies had spent a total of GH¢360,759.90 out of a total contract sum of GH¢1,027,381.21 have been abandoned for periods ranging between six months to four years whilst new projects were embarked on. Details are provided below;

Assembly Project Date Contracto Contract Amount Expected Current Remark little of r sum GH¢ paid GH¢ date of status awar completio d n Wa Const. of 13/1 M/s Abu 580,842.90 162,602.76 Not Foundation Balance Municipal Storey 2 Upper indicated level of building West erection of GH¢418, Office pillars for 240.00 Complex 1st floor outstan level ding Jirapa Reh. of M/s 215,836.57 145,367.39 12/05/14 68%comple District Jirapa BunasCo- te. Project at District Ltd lintel level Assembly 30 months behind schedule Const. of M/s 101,451.32 52,789.75 24/10/14 Project at CHPS Simadong lintel level. compound Co. Ltd Abandoned at since June Nindowal 2016. 24 months behind schedule Total 1,027,381.21 360,759.90

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442. In the case of the Wa Municipal Assembly, we established that between March and September 2015, management awarded eight new contracts at a contract sum of GH¢576,703.39 and paid GH¢193,247.57 when the balance of GH¢418,240.14 for the uncompleted Assembly building complex remained outstanding.

443. In our view the Assemblies had not seen how costly abandon projects could be, thus the need to prioritise ongoing projects rather than the award new ones in line with the directive of the ADACF which was ostensibly to ensure that on-going projects are fully completed and paid for before commencement of new ones. 444. We recommended to the Chief Executives and Co-ordinating Directors of the Assemblies to ensure strict adherence to the directives of the ADACF by desisting to make further provisions towards the construction of new projects and to see to the completion of all on-going projects.

Failure to fully execute portions of contract- GH¢33,863.00 445. Part V, Section 11(b) of the Financial Memoranda for MMDA provides that it is the duty of an officer responsible as a Head of Expenditure to vouch vouchers for payment to ensure that the service specified has been duly performed.

446. We, however, noted that two projects of the Wa Municipal Assembly contracted at GH¢55,989.90 and on which the Assembly had paid GH¢48,526.25 were executed without the portions of the projects provided for in the Bill of Quantities. The details are indicated below:

A/ Contract Contract Award Expected Contract Payment to Remarks No or Date date of Sum Date (GH¢) completion (GH¢) 52 CHPS Astee Co. 06/5/16 30/5/2016 8,526.25 8,526.25 Provision of 4 compoun Ltd. (Wa door fan d – Guli Muni) costing GH¢1,400.00 not provided

54 Reh.- Busa Goro 63 5/7/16 21/8/16 47,463.65 40,000.00 Ancillary Zonal Enterpris facilities Council e (Wa costing Muni) GH¢32,463.00 not done Total 55,989.90 48,526.25

447. The works department and the monitoring team failed to ensure that the contractors executed the works according to the standards set in the project document

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 80 and Bill of quantities. The works Engineer and the Planning Officer could not explain why they prepared the certificates to request for payment for the contractors when the works had not been performed.

448. The anomaly could have been averted if the Finance Officer, in the discharge of his duties, had also been diligent enough and applied Part V, Section 12 of the Financial Memoranda, which allows the Finance Officer to reject expenditures.

449. We recommended that the contractors should be made to complete the remaining works indicated in the table or the amount should be recovered from them. Failing this the Works Engineer and Monitoring team should be held liable for the refund and cautioned to be diligent in the administration of contracts.

Unapproved variation of contract sum - GH¢18,517.80 450. Part IX, Section 68 of the Financial Memoranda for MMDAs states that the “no alterations shall be made to any contract or schedule or specification thereof except on the recommendation of the District Tender Board. Such alterations shall be signed by the presiding member of the Assembly or such other person who may be authorized.”

451. Additionally Part IX Section 87(1) of the Public Procurement Act, 2003 (Act 663) provides that there should not be an aggregate increase in the original amount of the contract by more than 10 % of the original sum unless authorised by a Tender Review Board.

452. On the contrary, we found that in the construction of I No. 2 Bedroom Semi Detached Quarters at Wechiau awarded to Messrs. Adihama Ent, management of the Wa West District Assembly varied the initial contract sum of GH¢94,874.21 by 19.52% to GH¢113,392.01 without recourse to the Tender Review Board.

453. Management’s failure to comply with the provision on contract variation was the cause of the lapse, a situation that could lead to loss of funds to the Assembly.

454. We recommended that the process of variation should be adhered to failure of which the Coordinating Director, Works Engineer, Planning Officer and the Finance officer should be held jointly, liable and accordingly reprimanded.

Procurement and stores irregularities

Awarded procurement contracts without any signed Agreements- GH¢892,609.59

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455. Section 65 Part IX of the Financial Memoranda for MMDAs requires that on acceptance by the Assembly, a contract under the common seal of the Assembly and the hand and seal of the contractor shall be entered into by Coordinating Director of the Assembly or such other person as may be authorized by the Assembly to act on its behalf and the contractor.

456. Our review of procurement contracts disclosed that Wa Municipal Assembly awarded contracts for the supply of goods and services worth GH¢892,609.59 to 26 suppliers without any written agreements to legally bind the two parties,(ie the Assembly and the supplier/contractor).

457. The likelihood of contracting incompetent contractors resulting in the supply of shoddy or wrong specification of goods cannot be ruled out. Also the Assembly stands to lose in times of disputes.

458. We recommended to management to implement the procurement process provided under the Financial Memoranda and Procurement Act.

Distribution of procured items/souvenirs without documentation - GH¢49,405.00 459. Section 0601 Chapter 6 of the Stores Regulations 1984 stipulates that ‘Stores shall be issued and released to properly authorized persons against properly signed documents.

460. We noted that management of the Wa Municipal Assembly procured various quantities of mobile phones, cement, sugar and other provisions totaling GH¢49,405.00 for distribution by the Chief Executive to individuals in some communities in the Wa Municipality. We however cited no supporting documents such as store issue vouchers and distribution list.

461. Management failed to ensure that systems were put in place so that items issued out were properly documented and accounted for. In the absence of these documents, we could not confirm whether the items were actually procured and receipted by targeted beneficiaries in the communities.

462. We recommended that in the absence of the relevant documentation attesting to procurement and receipt of the items by targeted beneficiaries, the Municipal Chief Executive and Municipal Coordinating Director should be held liable to refund the amount involved into the Assembly’s account.

Fuel/Lubricants not accounted for - GH¢264,109.63

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463. Contrary to Stores Regulation 1604 and Part XII, Section 60 of the Financial Memoranda for Assemblies which require use of logbooks to monitor fuel purchases, uses and vehicle movements, the Wa Municipal (GH¢141,704.63), Nadowli (GH¢15,000.00) and Daffiama (GH¢107,405.00) purchased fuel and lubricants to the tune of GH¢264,109.63 but failed to record the purchases in any Vehicle Log Books.

464. The lapse occurred as a result of ineffective supervision by the Schedule Officer in-charge of transport. Fuel/Lubricants not recorded could lead to diversion and waste.

465. We recommended to management to provide evidence of receipt and utilization of the fuel, failure of which the said amount should be recovered from the District Coordinating Directors, Finance and Transport Officers.

Tax irregularities

Failure to remit withholding taxes – GH¢9,631.05 466. Management of Nadowli District Assembly withheld taxes amounting to GH¢9,631.05 from 22 payments but failed to remit the amount to the Commissioner-General, Ghana Revenue Authority. The amount had been retained for over three months in the Assembly’s account contrary to Section 117 (1) of the Income Tax Act, 2015 (Act 896) .

467. The Finance Officer under the circumstance deliberately violated the law having applied it in other instances and remitted accordingly.

468. We recommended strict adherence to the tax provision with the immediate remittance to the Ghana Revenue Authority to avoid any penalties otherwise the Finance Officer should be made to refund any avoidable cost incurred.

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VOLTA REGION Introduction 469. The intermittent release of funds by the Administrator of Common Fund led to the release of only the first three quarters of 2016. The 25 Assemblies received only GH¢39,846,537.39 representing 52.47% of the approved allocation of GH¢75,941,711.12 for the year.

Cash irregularities

Unsubstantiated payment- GH¢ 1,136,178.63 470. Our audits disclosed that contrary to Part IX, Sections 7, 13 and 14 of the Financial Memoranda for District Assemblies , 12 Assemblies failed to substantiate total payments of GH¢1,132,268.63 made from the Main and MPs Common Fund with the invoices and statements of expenditure etc. Details are shown below:

No. Assembly No. of Amount PV. Nos Amount PVs GH¢ MPs (MPs) GH¢ 1. Afadzato-South District 2 16,087.00 2. Agotime-Ziope District 6 12,689.46 3. Akatsi South District 16 158,621.29 23 46,067.54 4. Biakoye District 63 158,292.50 5. Central Tongu District 61 91,955.90 6. Hohoe Municipal 7 46,436.29 7. Ketu North District 10 82,909.37 8. Keta Municipal 50 183,644.60 81 102,572.00 9. North Dayi District 3 7,935.00 8 95,312.98 10. North Tongu District 30 91,394.70 1 5,200.00 11. South Tongu District 5 12,350.00 12 Ho Municipal 9 20,800.00 Total 862,316.11 269,952.52

471. In a related issue, from the People With Disability account, the Keta Municipal Assembly also did not substantiate three payments totaling GH¢3,910.00 with any disbursement receipts.

472. In circumstances where payments are not properly and adequately substantiated it becomes difficult to ascertain the validity and propriety of the transactions.

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473. We recommended that failure to substantiate the payments, the authorising and approving officers of the payments should refund the amount into the Assemblies’ accounts.

Misapplication of DACF-GH¢519,426.68 474. Part I, Paragraph 5(a) of the 2016 Guidelines for the management and utilization of the District Assemblies’ Common Fund, restricts Assemblies to the use of only 10% of their DACF allocations for recurrent expenses. We however noted that management of Ketu South Municipal Assembly (45.2%) (GH¢587,378.70) and Krachi East District (12%) (GH¢365,706.42) Assemblies spent a total amount of GH¢953,085.12 on recurrent expenditures such as Hotel bills, Fuel, security expenses and stationery etc. This resulted in an excess of misapplied funds of GH¢519,426.68 with the breakdown below.

Assembly % Amount spent Supposed Excess on recurrent 10% of funds expenditure DACF misapplied Ketu South District 45.2 587,378.70 129,307.84 458,070.86 Krachi East District 12.0 365,706.42 304,350.60 61,355.82 Total 953,085.12 433,658.44 519,426.68

475. We attributed the lapse to the inability of management to widen and improve upon their internally generated revenue activities to facilitate funding of such recurrent expenditures, thus relying on funds meant for development projects. This has the effect of stalling the development projects.

476. We recommended that management of the Assemblies involved should desist from misapplying funds tied to specific activities and operate within the approved DACF rates allowed by the 2016 Guidelines for the Utilization of the DACF.

We further recommended to management of Assemblies to recover the misapplied amount of GH¢519,426.68 from their local resources to the DACF accounts.

Misapplication of PWD funds-GH¢7,121.17 477. We noted that management of Ho West Assembly misapplied a total amount of GH¢7,121.17 from the People With Disability receipts for recurrent expenditures including payment of funeral donations, pledges, utility bills, and payment of transfer grants among others in contravention of Part V, Regulation 179 of LI 1802.

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478. We attributed the lapse to management’s inability to widen and improve upon their internally generated revenue activities to facilitate funding of such recurrent expenditures and this could defeat the purpose of creating the PWD funds.

479. We recommended that management of the Assembly should desist from misapplying funds tied to specific activities and also ensure that the misapplied funds are refunded to the account.

DACF deductions not benefited from by Assemblies - GH¢843,659.54 480. We noted during our audit that the Common Fund Administrator deducted from the allocation of Adaklu-Waya (GH¢248,400.00), Agotime-Ziope (GH¢248,400.00) and Biakoye (GH¢346,859.54) a total amount of GH¢843,659.54 for supposed activities such as fumigation, sanitation improvement packages. There were however no records and confirmation by management that the Assemblies had benefited from the supposed services. We also noted that these activities were not included in the Assemblies Annual Plan.

481. This was contrary to Section 87 (2) of the Local Government Act 1993 (Act 462) which requires all expenditures incurred from the DACF account to be in the approved development plans.

482. The occurrence of monies paid the ADACF to suppliers/service providers for nonperformance or delivery of goods and services was due to the absence of certification by MMDAs for satisfactory performance before payments clause in the contract agreement of DACF source deductions to be used for payments on behalf Assemblies.

483. We therefore recommended that management of the Assemblies should pursue the suppliers/ service providers to honour their obligation otherwise the amount should be recovered from them. We also ADACF for the provision of the services otherwise the moneys should be recovered from the service providers and paid into the Assemblies account. Failing this the ADACF should refund the amount into the Assemblies account.

Unpresented payment vouchers - GH¢36,850.00 484. Management of Keta Municipal (2) (GH¢ 21,000.00), Akatsi South (1) (GH¢ 12,250.00) and Agotime-Ziope (1) (GH¢3,600.00) District Assemblies failed to present for audit, four paid vouchers with a total face value of GH¢36,850.00 made from their

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Main, MP’s Common Fund and People With Disability account respectively to enable us review their veracity and authenticity.

485. We attributed the lapse to poor records keeping on the part of the Finance Officers and their subordinates which violated Section 1(a) of the Financial Administration Regulation, 2004.

486. We recommended that failure to produce the vouchers to justify the payment, the Finance officers should be held liable for refund of the amounts accountable for the irregularity.

Unretired imprest- GH¢ 67,864.00 487. Management of Adaklu-Waya (2) (GH¢4,500.00) and Krachi East (9) (GH¢ 63,364.00) District Assemblies, violated Part IX, Section 39 of the Financial Memoranda for District Assemblies by failing to ensure that officials granted a total amount of GH¢67,864.00 in imprests for official assignments in 11 situations retired them after the exercises.

488. We found the situation to be as a result of weak supervisory control and inertia on the part of the management of the Assemblies.

489. We recommended that failure of the officials to retire the amounts involved, this should be adjusted to their personal accounts as advances and recovered without any further delay.

Indebtedness of Zoomlion Ghana Limited to Adaklu-Waya District Assembly- GH¢238,000 .00 490. Our review of the minutes of the meetings of the General Assembly, Executive Committee and the Finance and Administration Sub-committee revealed that Messrs. Zoomlion Ghana Limited is indebted to Adaklu-Waya District Assembly in the sum of GH¢238,000.00. The indebtedness is in respect of cost of fumigation deducted at source from the Assembly’s share of the Common Fund by the Administrator for the period June, 2012-March, 2013 for which no work was done by the company.

491. The minutes further indicated the intention of management is to engage the services of a lawyer to pursue refund of the money, but no action has been initiated in this regard. The Assembly had therefore been denied the services and use of GH¢238,000.00 which could have been channeled for other developmental activities.

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492. We recommended to management to recover the amount of GH¢238,000.00 from Messrs. Zoomlion Ghana Limited without any further delay and steps should be taken to have the Administrator suspend the deductions for such services.

Payment of commitment fee for acquisition of land without title documents- GH¢20,000.00 493. In violation of Part II Regulation 39 (2c) of the Financial Administration Regulation, 2004, management of Ho Municipal Assembly made two payments amounting to GH¢20,000.00 from its DACF account as commitment fee to two corporate persons to acquire plots of land to construct an engineered landfill site at Akrofu, near Ho but rather failed to initiate the processing of a land title document. Details are shown below:

S/N Date PV. No. Amount Payee Details/Narration (GH¢) 1. 07/9/16 DACF 4 10,000.00 Agbo-Agbotse Commitment fee for family land paid. 2. 14/6/16 DACF 9 10,000.00 GrorgeL. K. Commitment fee for Awude& Co. land paid. Total 20,000.00

494. The situation has the potential of leading the Assembly into protracted land litigation and its associated costs, in future.

495. We recommended to management to ensure that processes are put in place to regularize the acquisition of the land to avert any disputes.

Disbursement without MP’s approval – GH¢305,037.06 496. Part III, Sections 4 and 5 of the Guidelines for the Utilization of the District Assemblies Common Fund for 2016 fiscal year states that under no circumstances shall money be withdrawn from this account without a memorandum from the sitting Member of Parliament from the constituency and where a memorandum has been raised to the District Chief Executive for a project to be financed under this fund, the Member of Parliament shall be given a reply within fourteen (14) working days as to whether the request has been passed or whether a query has been raised.

497. We noted during our review that management of Kpando Municipal Assembly made 30 payments for various activities from the MP’s Common Fund totaling GH¢305,037.06 without seeking approval from the Member of Parliament, Honourable, Mrs. Della Sowah.

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498. This lapse could lead to, misappropriation of funds and derailment of programmes and activities drawn by the MP for the communities.

499. We therefore advised management to regularise the expenditure by seeking approval from the Member of Parliament otherwise the fund should be reimbursed with the amount withdrawn and any subsequent expenditure from the fund must always be approved by the MP.

Overpayment for items procured by MP - GH¢ 6,555.00 500. Part II, Section 39 (2c) of the Financial Administration Regulation of 2004, (L.I.1802) states that, “The head of accounts section shall control the disbursement of funds and ensure that, transactions are properly authenticated to show that amounts are due and payable”

501. According to Part II Regulation 14 (12a) on the Public Procurement Act, 2003 ( Act 663) “The Head of the Procurement Unit ( and his /her team) shall be responsible for undertaking and coordinating all detailed procurement activity within the procurement entity. This shall include receiving procurement requests from originating officers, checking that the proposed procurement is within the approved procurement plan, and that budgeted funds are available prior to commencement of procurement proceedings.”

502. We noted during our audit that the Member of Parliament for Adaklu, Hon. Governs Kwame Abodza, usurped the procurement functions of the Adaklu-Waya District Assembly and unilaterally procured items worth GH¢ 89,180.40 from Messrs. Vision and Sports Enterprise. Our further scrutiny of the invoices provided by Messrs. Vision and Sports Enterprise revealed that the total value of items procured were wrongly computed as GH¢95,736.40 instead of GH¢89,180.40 leading to an overpayment of GH¢6,555.00. 503. The Member of Parliament’s practice of side stepping the role of the procurement unit of the Assembly was the cause of the anomaly.

504. We recommended that the Member of Parliament should ensure the refund of the amount of GH¢6,555.00 from Messrs. Vision and Sports Enterprise otherwise recovery should be made from him.

Contract irregularities

Contracts awarded without competitive tendering – GH¢140,705.87 505. Part IV, Section 35 (1) of the Public Procurement Act, 2003 (Act 663) states among others that “a procurement entity shall procure goods, services or works by

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 89 competitive tendering. Section 35(3) further states that if the procurement entity uses the method of procurement other than competitive tendering, it shall include in the record required a statement of the grounds and circumstances on which it relied to justify the use of the method.”

506. On the contrary, management of Ketu North District Assembly awarded seven contracts amounting to GH¢140,705.87 to seven contractors without engaging in any competitive tendering contrary to the procurement regulation. We also did not sight the required approval from the PPA for single sourcing.

507. Management might not have taken into consideration transparency and fair pricing and ultimately the achievement of value for money in the course of the procurement. We were unable to authenticate whether the Assembly paid for fair pricing.

508. We recommended to management to adhere to the Procurement Act by ensuring that future procurements are done on competitive basis or the required approval for single source is granted to obtain value for money.

Loss of funds arising from termination of contracts – GH¢34,348.89 509. Our review of the contract document on the construction of the Police Station at Torkor revealed that, management of Kpando Municipal Assembly awarded the initial contract to Messrs. Marslu on 9 July 2014 at a cost of GH¢92,040.00 and was expected to be completed by 9 December 2014.

510. Though, the contractor did not perform according to the terms and specification of the contract, the Assembly went ahead and paid GH¢75,420.21 as certified works by the engineers, representing approximately 82% of the contract sum.

511. The Assembly later terminated the contract on 2 April 2016 and without the approval of the General Assembly unilaterally re-awarded the contract to Messrs. Vain Enterprise at the cost of GH¢50,968.68 after the project had delayed for about 17 months due to the contractor’s poor performance,

512. The termination and re-awarding of the contract resulted in the Assembly sinking a further GH¢34,348.89 in to the project which could have been used on another project.

513. We recommended that the engineers should be held liable for the additional cost of GH¢34,348.89. In order to ensure prudent use of resources we also

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recommended that the procurement committee assesses the technical and the financial abilities of contractors before contracts are awarded. Meanwhile the General House should always be consulted for approvals and ratifications.

Completed projects not in use - GH¢2,292,700.54 514. The purpose of Assemblies providing services to communities is to ensure that such communities attain accepted condition conducive to the inhabitants. As a result efforts must be made to execute and commission all intended projects for the use of the beneficiaries.

515. Management of the Hohoe Municipal (1) (GH¢347,349.09), Agotime-Ziope (3) (GH¢595,381.35), Ho West (4) (GH¢652,728,10) and Krachi East (3) (GH¢697,242.00) District Assemblies spent a total amount of GH¢ 2,292,700.54 on 11 projects but failed to put them to use, after their completion in May 2016. The details are provided below:

Assembly Project Year of Contract completion Sum (GH¢) Agotime- Construction of 1.No. Community Health May, 2016 595,381.35 Ziope Planning services (CHPS) Compound at Dohia (GH¢ 199,049.95).

Construction of 1.No. Community Health May, 2016 Planning Service (CHPS) Compound at Agohome (GH¢ 198,930.82).

3. Construction of 1.N0. CHPS Compound at May, 2016 Sirendre (GH¢ 197,400.58). Hohoe A chip compound, drilling and mechanization of 19/03/2016 347,349.09 Municipal 1 no. boreholes, polytank with 850 1 No. volt chamber toilet at Gbi-Kodzofe

Ho West 3 Unit Classroom Block at AbutiaKpota (GH¢ 9/5/16 652,728.10 153,651.94).

CHPS compound at Anyirawase (GH¢ 24/5/16 185,000.00)

CHPS compound at Luvudo (GH¢ 183,476.16) 9/5/16

12 Seater water closet toilet at Dzolokpuita GH¢ 130,600.00 Krachi 10 Seater KVIP latrine at Bidikorpe (GH¢ May, 2016 697,242.00 East 50,000.00).

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CHPS compound at Motorway Adakorpe (GH¢ 500,000.00).

ICT Center at Dambai (GH¢ 147,242.00) Total 2,292,700.54

516. Lack of utility services and distance from the communities were cited as the reasons for the inactivity of the projects. In addition to denying the communities the benefit of using the projects, the long delay in putting them to use could result in theft of items and dilapidation. We opined that adequate feasibility studies were not conducted before undertaking such projects in view of the reasons assigned for their non use.

517. We recommended that the necessary action should be taken without further delay to enable the communities benefit from the use of the projects and advised that feasibility studies should be done for all future projects to be undertaken.

Abandoned projects - GH¢ 5,581,616.09 518. Part I of the 2016 Guidelines for the utilization of the District Assemblies’ Common Fund under “Mandatory requirements” in the year 2016, Assemblies are not to make any provision towards the construction of any mandatory projects. All MMDAs are therefore directed to commit resources towards the completion of all on- going mandatory projects”.

519. Management of five District Assemblies as provided below have abandoned sixty-two community based projects at various stages of completion and in which a total amount GH¢5,581,616.09 has been invested. Details are shown below:

No. Name of Institution No. of Projects Amount GH¢ 1 Akatsi South 6 756,504.43 2 Ho West 1 282,174.24 3 Ketu North 38 3,598,964.00 4 Ketu South 16 826,057.00 5 Krachi East 1 117,916.42 Total 62 5,581,616.09

520. The practice would not serve the purpose of embarking on such projects and might result in inflationary cost. 521. We recommended that management of the Assemblies involved should endeavor to complete these projects before embarking on new ones.

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Construction of Mandatory Projects in 2016 – GH¢ 104,323.56 522. Contrary to Part I of the Guidelines for the Utilization of the District Assemblies Common Fund for 2016 Fiscal year, we noted during our review of the contract records that management of Adaklu Waya District Assembly failed to comply with the above directive and awarded two (2) new mandatory projects totaling GH¢104,323.56 in the 2016 fiscal year. Details are as shown below: Amount Award No. Contractor Details GH¢ Date Construction of 1No. 3 unit 1 Chriswed ltd 59,796.90 26-04-16 classroom block at Adaklu Waya Your Ways Construction of 3 unit 2 44,526.66 28-04-16 Company Ltd classroom block at Wayanu Total 104,323.56

523. In our opinion management was over ambitious in deploying projects in the Districts without considering its credit worthiness and the enormous burden it puts on the financial resources of the Assembly.

524. The Assembly is likely to be financially constrained and therefore we recommended strict compliance with the Guidelines on the disbursement of the Common Fund.

Payments without works orders and certificate of satisfactory completion of works - GH¢111,738.35 525. According to Part IX, Section 70(a) of the Financial Memoranda, no payments should be made to a contractor unless the works engineer or any other mandated person had inspected and certified the works done.

526. Contrary to this regulation, we noted that the management of Ketu South (GH¢94,429.95) and Ho West GH¢17,308.40) District Assemblies undertook maintenance works on its equipment, buildings and vehicles at a cost of GH¢111,738.35 without works orders and certificate of satisfactory completion of works.

527. These transactions, in our view, lacked the element of transparency and if due care is not taken value for money would not be achieved in the execution of jobs with a resultant loss of funds to the Assembly.

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528. We recommended to management to comply with the provision by issuing works orders before repairs/maintenance are carried out on the Assembly’s assets. We also recommended that should any avoidable cost be incurred it should be recovered from the authorising and approving officers for the payment.

Construction of 3 Unit classroom block without toilet facility - GH¢161,444.84 529. Our project inspection revealed that the management of Ho West District Assembly used part of its DACF to construct a 3 Unit Classroom block at Kpedze- Awlime at a cost of GH¢161,444.84 but did not include a toilet facility even though the School did not have such a facility. We view the issue from an objective level rather than technical and in the interest of the children.

530. We attributed this anomaly to an oversight on management with emphasis on the Planning Officer and Engineer who could not detect the lapse in the architecture design when packaging the contract for tender. 531. As a result, the School was left with no wash room for both staff and pupils. We found the situation untenable as it would inconvenience the beneficiaries of the classroom block. It could also promote truancy and absenteeism as both teachers and pupils would have to leave school in search of such facility elsewhere.

532. We urged management of the Assembly to as a matter of urgency provide the school with a toilet facility to enable the teachers and school children derive maximum satisfaction from the use of the classroom block.

Defects on 3 Unit classrooms block at Abutia-Kpota - GH¢153,651.94 533. Management of Ho West District Assembly awarded the 3 Unit Classroom block at a cost of GH¢153,651.94 at Abutia-Kpota which was completed in November 2016 to Messrs. NASF Ventures. During our inspection of the project in January which incidentally fell within the Defect Liability Period, we noted cracks in the cemented floor of the entire structure.

534. We attributed the defect to possibly a hasty manner in the construction of the project, the use of inferior quality material, and ineffective supervision which as a result have denied the Assembly from achieving value for money.

535. We recommended that since the damage falls within the Defect Liability Period, the contractor should be prevailed upon to remedy the situation, failure of which his retention money should be denied him and use to correct the defect.

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Delayed project- GH¢360,823.95 536. We observed during project inspection that management of Hohoe Municipal Assembly had engaged Messrs. Bumecon Investment Ltd. in the construction of 1 No. 3 Unit classroom block, office and staff common room with 4 seater KVIP and 2 unit urinal at Akpafu-Odomi at a total cost of GH¢360,823.95 . The project on which the Assembly had spent GH¢181,838.70 (50.4%) and to be completed by 19 March 2016 is still ongoing at 54% completion.

537. We were informed that the contractor vacated site for some time after the Assembly was unable to pay his Certificate No. 3 for GH¢70,000.00 which had attributed to the delay.

538. We found the project one of an emergency with the delay being from both management and contractor. The old school building which poses a danger is dilapidated, thus the Junior High School students are in makeshift structures. We were of the opinion that with the advent of rains if the project is not completed early for the pupils to move in there could be an avoidable disaster.

539. We therefore urged management to take immediate steps to complete the new building under the circumstances.

Completed projects not fully paid for - GH¢47,581.05 540. In our efforts to ascertain the indebtedness of the Afadzato District Assembly, under the operations of the DACF account, we noted that five contracts awarded by management at a total cost of GH¢207,895.49 had been completed and handed over but the Assembly was yet to redeem its indebtedness of GH¢47,581.05 to the contractors. Details are shown below:

Project name Contract Contractor Date Date Status Amount Amount sum commenc complete paid outstandin (GH¢) ed d (GH¢) g (GH¢) Construction 35,094.44 Manit 24/7/15 23/9/15 100% 26,881.96 8,212.48 &mechanization of Construction compl borehole with Ltd. eted plumbing work & connection to CHPS compound at Tafi Abuife Construction of 38,726.34 Royal 16/0/16 15/7/16 100% 31,300.00 7,426.34 waiting shed at Ve- September Golokuati lorry Ltd. park

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Renovation of 31,986.94 Wil-Elik Co. 22/2/16 15/3/16 100% 28,777.95 3,208.99 DCE/DCD Office Ltd. Block Metal fabrication 50,280.00 Killian 29/7/16 9/9/16 100 40,815.00 9,465.00 and installation of Donkor burglar proof to the metal works new Assembly complex Rehabilitation of 99,388.82 Wil-Elik Co. 8/10/12 9/1/13 100% 80,120.58 19,268.24 DFO/Central Ltd. Administration blocks Total 255,476.54 207,895.4 47,581.05 9

541. Management assigned unavailability and inadequate funds to settle the debts which in our view can result in legal tussles with its attendant judgment debts. 542. We therefore urged management to place full priority in the settlement of these debts before considering the award of new contracts with the allocation of funds from the ADACF.

Failure to invite tenders from Contractors –GH¢446,100.00 543. Part V, Sections 47 of the Public Procurement Act, 2003 (Act 663) requires every procurement entity to invite tenders from potential contractors for prequalification.

544. Our audit revealed that management of Nkwanta South District Assembly awarded three contracts for the construction of aqua privy toilet facilities totaling GHȻ446,100.00 without tendering. See the details below:

No. Contract Description Location Contractor Price GH¢ 1 Construction of 10 Salifu 150,000.0 seater aqua privy Nkwanta Okarakuw 0 toilets a Enterprise 2 Construction of 10 Adbens 148,200.0 seater aqua privy Nkwanta Dream 0 toilets Ventures 3 Construction of 10 Adbens 147,900.0 seater aqua privy Nkwanta Dream 0 toilets Ventures Total 446,100.0 0

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545. Value for money, fair pricing and transparency in the award and execution of the contracts cannot be guaranteed.

546. We recommended to management to always ensure that the requirements of the procurement law and regulations are duly followed otherwise avoidable cost should be recovered from them.

Procurement and store irregularities

Procurement outside approved budget – GH¢ 520,762.09 547. Part VI, Section (2) of the Financial Memoranda for MMDAs 2004 provides that the basic authority for expenditure is the approved Assembly`s annual estimates. Again Section 87 of the Local Government Act, 1993 (Act 462) reiterates that the use of the approved estimates may only be varied by an approved supplementary budget or reallocation of budget.

548. Management of Kpando Municipal Assembly procured items valued at GH¢520,762.09 outside the Assembly`s approved budget for 2016. The failure to prepare supplementary budget for approval or reallocation of budget before the expenditure incurred caused the omission.

549. It was likely that the unbudgeted expenditure prevented the Assembly from carrying out some of the planned activities in the Action Plan.

550. We recommended that management should endeavour to operate within the approved budget at all times. In cases of un-budgeted expenditure supplementary budget should be prepared and approved by the General Assembly or reallocation of budget should be considered.

Purchases from non-VAT registered suppliers –GH¢247,578.54 551. Management of Afadzato-South District Assembly procured goods and services worth GH¢27,175.20 from non-VAT registered entities and as a result avoided the payment of VAT of GH¢4,755.66 contrary to Financial Administration Regulation 183(4) of L. I. 1802 stipulates.

552. Similarly, Adaklu-Waya (GH¢67,215.15) (GH¢11,762.65), Agotime-Ziope (GH¢100,116.00) (GH¢17,019.72), Akatsi South (GH¢53,072.19) (GH¢8,102.11) District Assemblies also procured from their respective MPs’ Common Fund goods and services from non-VAT agents valued GH¢220,403.34 which led to the nonpayment of VAT of GH¢36,884.48.

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553. We attributed the anomaly to deliberate disregard for regulations governing the discharge of public financial business.

554. We recommended compliance with the above stated regulation for the avoidance of penalties otherwise all culpable officials should be made to bear such cost.

Failure to register Assembly vehicles in the names of Akatsi North District Assembly 555. Complete ownership of assets of an entity is one of the important assertions by Management that gives the entity the legal right over its assets. Ownership also gives an entity the legal power to contest in case there are legal concerns raised.

556. We noted that whereas a letter issued from the Ministry of Local Government and Rural Development on 3 September 2013 signed by one Vincent K. Adjato-Ntem authorized all MMDAs to effect the change of ownership of Nissan Patrol vehicles in their names, management of Akatsi North District Assembly failed to do so for three of such vehicles in their possession. As a result ownership is still vested in the dealers.

557. In our view management may find it difficult to legally make claims to these vehicles should there arise any legal tussle with the dealers (companies). We recommended that management takes the necessary steps to regularize this issue of ownership to avoid any legal tussle in future.

Stores/fuel not accounted for - GH¢429,611.50 558. Contrary to Sections 0522 and 0316 of Stores Regulations 1984, management of Agotime-Ziope (GH¢ 32,437.60 on 12 PVs), Akatsi South (GH¢ 92,336.74) and Biakoye (GH¢15,357.00 on 7 PVs) District Assemblies procured various items totaling GH¢140,131.34 for DACF activities without accounting for the receipt and use of the items. We also noted that the management of Keta (12) (GH¢ 9,552.00) and Kpando (1) (GH¢ 9,005.57) Municipal Assemblies procured from 13 transactions various items totaling GH¢18,557.57 from the MPs Common Fund activities without accounting for the receipt and use of the items.

559. In a related development Biakoye (GH¢ 165,807.56) and Ketu North (GH¢105,115.03) District Assemblies also purchased fuel worth GH¢270,922.59 but

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 98 failed to record them in any vehicle log books to authenticate and account for the expenditure on fuel.

560. Without store ledger and vehicle log book records, we could not ascertain whether the items were actually received and used for the intended purposes. This could lead to misuse of funds, diversion of stores and fuel as well as payment for goods not supplied.

561. We recommended that failure to provide evidence of receipt and usage of the items and fuel, the Coordinating Directors and the Finance Officers should refund the amount of GH¢429,611.50 into the Assemblies’ accounts.

Uncompetitive purchases - GH¢48,671.98 562. We observed during a review of records on disbursements that management of Hohoe Municipal Assembly procured items valued at GH¢48,671.98 on five payment vouchers without resorting to alternative quotations contrary to Part IV, Section 20 of the Public Procurement (Amendment) Act, 2016 (Act 914} . The procurement which was single sourced was also without the approval of the PPA. The transactions therefore lacked transparency, fairness and as such value for money may not have been obtained.

563. We recommended that management of the Assembly involved should comply with the provisions in the Public Procurement Act to promote transparency and accountability in the management of public resources.

Purchases/financial support not accounted for -GH¢161,146.00 564. Part IX, Section 4 of the Financial Memoranda for District Assemblies states that “an officer certifying a voucher thereby certifies to the accuracy of every detail there in.”

565. Part I, Section 2(a) provides that, the head of government department shall manage and operate the department’s accounting systems so as to ensure the accountability of all officers transacting such business and facilitate the efficient discharge of such business.

566. We noted that management bought 30 cartons of cutlasses at GH¢15,160.00 using the MP’s Common Fund for the 2016 Farmers’ Day and handed them over to the Member of Parliament for Ho for distribution. We however found no distribution list of beneficiaries in support of the transaction to aid an audit trail. In a like manner the MP for Hohoe through the Hohoe Municipal Assembly procured items worth

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GH¢43,666.00 for distribution in the Hohoe Municipality but also failed to provide distribution lists and acknowledgments by beneficiaries/opinion leaders.

567. In a related development the Ho Municipal Assembly again paid as financial support for brilliant but needy students an amount of GH¢ 65,200.00 from the MP’s Common Fund. We noted that the amount was handed over to the MP who paid the supposed students through the Municipal Director of Education. The situation had the tendency of stifling audit trail. 568. Furthermore, the Agotime-Ziope District Assembly also made financial assistance of GH¢37,120.00 to 54 students totaling GH¢37,120.00 through the Member of Parliament (MP) Fund without obtaining any application letters from the beneficiaries to complete the administrative procedures.

569. The Coordinating Directors and the Finance Officers failed to diligently ensure that adequate information on the transactions were provided by the MP making it difficult for us to establish the genuineness of the purchases as the final destination and beneficiaries were unknown.

570. We recommended that management should request accountability from the three Members of Parliament by providing the distribution list of the beneficiaries for our verification or be held liable to refund the amount of GH¢161,146.00.

Tax irregularities:

Failure to withhold/ remit taxes - GH¢16,462.51 571. According Part VIII, Section 117(4) of Income Tax Act (Act 896) a withholding agent who fails to withhold tax in accordance with this Division shall pay the tax that should have been withheld in the same manner and at the same time as tax that is withheld. Additionally, Section 117(1) also directs a withholding agent to pay within fifteen days after the end of the month, a tax that has been withheld.

572. Management of Afadzato South (GHC 4,119.13), Hohoe Municipal (GHC 2,189.25) and Keta Municipal (GHC 1,900.00) Assemblies failed to deduct the required 5% withholding tax to the tune of GH¢ 8,208.38 on payments made for goods and services..

573. In another development management of North Dayi District Assembly failed to remit a total amount of GH¢8,254.13 being tax withheld on three transactions

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 100 valued at GH¢165,032.50 to Ghana Revenue Authority. The amount had been retained for over four months in violation of the tax law.

574. We attributed both situations which had denied the State of revenue to ineffective supervision and lack of commitment on the part of the Finance Officers.

575. We recommended that management of the Assemblies involved should pay the unremitted tax of GH¢ 8,254.13 to GRA and ensure compliance of withholding appropriate taxes.

Failure to obtain VAT invoices for VAT paid - GH¢ 13,359.92 576. Section 41(1) of the Value Added Tax Act, 2013 (Act 870 ) states that, a taxable person shall on making a taxable supply of goods or services, issue to the recipient, a tax invoice in the form with the details that are prescribed by the Commissioner- General.

577. Contrary to the above law, management of Biakoye (GH¢133,616.16), North Tongu (GH¢23,921.40) and South Tongu (GH¢3,401.68) District Assembly failed to obtain VAT invoices to support a payment of GH¢160,939.24 to suppliers which included a VAT component of GH¢ 12,264.32. Details are shown below:

Assembly No. of Amount (GH¢) VAT Paid PVs (GH¢) Biakoye 5 133,616.16 8,276.18 North Tongu 2 23,921.40 3,392.40 South Tongu 1 3,401.68 595.74 Total 160,939.24 12,264.32

578. Management of North Dayi District Assembly also failed to obtain VAT invoices to support a payment of GH¢28,880.00 made from the MP’s Common Fund to a supplier which included a VAT component of GH¢ 1,095.60.

579. The tax revenue is likely to be lost by Government as by this action the suppliers are not bound to make any payments to the tax authorities.

580. We recommended that management of the Assemblies involved should demand the appropriate VAT invoices from the respective suppliers to ensure they remit the VAT element to government or the amount be recovered from them. Failing this the amount should be recovered from the Finance Officers

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WESTERN REGION

Introduction 581. The Western Region received an amount of GH¢34,959,789.23 being releases for the three out of the four quarters during the year for its 22 Assemblies. The amount represented 52.47% of the total Parliamentary approval of GH¢66,628,279.25.

Cash irregularities

Unsupported/un-receipted payments-GH¢749,564,10 582. Our audit however, disclosed that six Assemblies failed to support 102 payment vouchers used in disbursing a total amount of GH¢573,445.69 with any requisite expenditure document in violation of Part IX, Sections 7, 13 and 14 of the Financial Memoranda for Assemblies . Failure by the authorising and approving officers of the payment to ensure that the payments were justified with the relevant documents before being effected occasioned the anomaly. Details are shown below:

No. Assembly No. of Amount No. of PVs Amount PVs (GH¢) PWD (GH¢) 1 Ellembelle District 12 97,290.00 2 Prestea/Huni Valley 4 50,204.00 District (PWD) 3 Sefwi Bodi District 24 205,775.00 4 Shama District 48 102,294.94 5 Suaman District 10 77,381.75 5 Suaman District (MP) 4 15,500.00 6 Wassa Amenfi West 1 25,000.00 District Total 99 523,241.69 4 50,204.00

583. We also noted that management of Sefwi Bodi District (GH¢53,490.00) and Shama (GH¢108,700.00) District Assemblies disbursed a total amount of GH¢162,190.00 to individuals and institutions without obtaining any receipts to acknowledge the payment.

584. We further observed that Prestea/Huni Valley District Assembly paid a total withholding tax of GH¢13,928.41 to the Ghana Revenue Authority without any acknowledgments from the tax authorities although the amounts have been withdrawn from the Assembly’s account.

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585. Under such situations, failure of the Finance Officers to ensure that payments were properly acknowledged by the payees gave rise to the anomalies.

586. Payments without the requisite documentation raise doubt as to the authenticity of the disbursement made. Also, unacknowledged payments are an indicative that the payments were made to unintended payees or had not been made.

587. We recommended that in the absence of the appropriate supporting documents to justify the expenditure, the amounts involved should be recovered from the Coordinating Directors and Finance Officers of the respective Assemblies. We also recommended that the Finance officer should be held liable to refund the monies if they are not receipted by the intended payees.

Proceeds from sale of tender document not accounted for- GH¢10,200.00 588. Part II, Section 15(1) of the Financial Administration Regulation, 2004 requires public officers or revenue collectors who collect or receive public and trust moneys to issue official receipts for them and same paid into the relevant public fund bank accounts within twenty-four hours of receipts.

589. Mr. Thomas F.K. Parker, Chief Revenue Superintendent of Jomoro District Assembly sold forty-one contract tender documents on twelve) project to be funded by DACF at GH¢10,200.00 but failed to issue official receipts to acknowledge and account for the amount involved to the Finance Officer.

590. We urged the Coordinating Director and the Finance Officer to ensure that the amount involved is recovered from Mr. Parker and same paid to the Assembly account. He should thereafter be reprimanded and barred from handling physical cash.

Payment without expenditure warrant- GH¢626,655.59 591. Suaman District Assembly paid a total amount of GH¢626,655.59 as per 39 payment vouchers without supporting the payments with any expenditure warrants to confirm budgetary provision and management approval of the transactions.

592. This contravened the directive given by the Minister of Finance contained in paragraph 1199 of the 2012 Budget Statement and Economic Policy of the Government. However we detected no malfeasance and budget overruns.

593. We recommended that the Coordinating Director and the Finance Officer of the Assembly should ensure that all future payments are supported with warrants in

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 103 conformity with the directive. All the authorizing and approving officers should be reprimanded for acting contrary to a directive. Contract irregularities

Payment for work not executed- GH¢29,982.98 594. Our review disclosed that the Bia West (GH¢20,622.98) and Tarkwa Nsuaem (GH¢9,360.00) Assemblies made payments amounting to GH¢29,982.98 to two contractors Messrs. Ashmond Baffoe and ProphXP Gh Ltd. for no works done in violation of Part II, Regulation 39(1) of the FAR.

595. We are of the view that failure on the part of the Works Engineer to ensure that works have been completed before certifying for payments to be made resulted in the irregularity.

596. We recommended to management of the Assemblies to ensure that the works are done or recover the amount from the contractors otherwise the amount should be recovered from the Engineers, Coordinating Directors and their Finance Officers.

Abandoned Projects- GH¢479,512.26 597. Whereas the intention of Local Administrations is to provide services to the communities under their jurisdictions, we noted at Sefwi Bodi (6) (GH¢551,584.47) and Sekondi-Takoradi Metropolitan (1) (GH¢138,656.67) that the Assemblies had abandoned seven projects with a contract sum of GH¢690,241.14 and scheduled for completion in 2011 and 2013. The Assemblies had so far spent a total amount of GH¢479,512.26 on the projects. The projects are as detailed below.

No. Project details Assembly Contract Payment Expected Sum to date Completion (GH¢) (GH¢) date 1. Health Centre at Amoaya Sefwi Bodi 103,215.15 90,157.90 2011 2. 6unit classroom block with Sefwi Bodi 119,893.41 78,848.20 2013 Ancillary facilities at Asamanso 3. 1No. Library/4unit Sefwi Bodi 180,930.00 150,337.50 2013 classroom block at BOSEC 4. 1No. 3unit classroom block Sefwi Bodi 35,000.00 27,250.00 2013 at Besease 5. 1No.3unit classroom block Sefwi Bodi 34,227.16 21,859.08 2013 at KwasiAdukrom

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6. 1No. 4unit Teachers Sefwi Bodi 78,318.75 30,478.85 2013 Quarters at Krayawkrom 7. Renovation of the Takoradi STMA 138,656.67 80,580.73 2011 Sub Metro Office-Takoradi

Total 690,241.14 479,512.26

598. Management explained that the delay was caused by the irregular releases and source deductions by the Administrator of District Assemblies Common Fund which usually affected the allocations and budgets for construction.

599. We urged management of the Assemblies to ensure that the projects are completed before new ones are awarded.

Delayed Projects- GH¢1,387,065.97 600. Our audit disclosed that nine projects awarded by two Assemblies, Sefwi Bodi (5) (GH¢464,931.15) and Sekondi-Takoradi Metropolitan (5) (GH¢922,134.82), and on which an amount of GH¢1,387,065.97 had so far been spent were ongoing two to ten months after their scheduled completion dates. The projects which were within 30 to 80 per cent completion and were earmarked for completion between October 2016 and February 2017 remained uncompleted as at March 2017.

No. Project Details Contract Payment to Expected Percen Assem Sum (GH¢) date (GH¢) completio tage of bly n date compl etion 1 3No. Police Visibility 129,195.00 71,712.50 April 2016 55.5% Bodi Tent 2 1No. 6Unit 247,641.18 158,267.20 February 63.9% Bodi classroom block with 2016 Ancillary facilities at Datano 3 1No. 6unit classroom 249,207.63 76,551.40 February 30.7% Bodi block with Ancillary 2016 facilities at Patakro 4 2unit 3 bedroom 259,209.01 120,993.25 February 72% Bodi semi-detached 2016 bungalow 5 6unit classroom 249,378.68 37,406.80 February 47% Bodi block at Yayaso 2016 6 Construction of 705,888.40 171,032.26 February 40% STMA Community based 2017

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Health and Service Compound at Apremdu 7 Construction of 751,856.99 258,551.45 February 55% STMA Community based 2017 Health and Service Compound at Kojokrom 8 Construction of 452,471.43 293,596.72 October 80% STMA Community based 2016 Health Planning and Service at Apremdo 9 Construction of 6unit 597,803.03 198,954.39 February 45% STMA classroom block with 2017 Ancillary facilities at Essipon Total 3,642,651.35 1,387,065.95

601. The delay which could be due to poor contract management and inadequate resources can result in the abandoning of projects and as a result contract variation. 602. We recommended that management of the Assemblies should prioritize and complete the projects before embarking on new projects Unapproved variation- GH¢132,608.55 603. Contrary to Part IX, Section 68 of the Financial Memoranda , management of Bia East District Assembly varied four contract sums by a total amount of GH¢132,608.55 without recourse to the District Tender Board. There were no letters or minutes on the District Tender Board file to show that the variations were referred to the Board for approval nor ratification.

604. We recommended that, in the absence of any documentation to show due process in varying the contract prices and subsequent ratification, the Coordinating Director, Works Engineer, Planning officer and Finance Officer should be held jointly liable to account for the disbursement of GH¢132,608.55 and reprimanded

Overpayment of contract certificate - GH¢11,880.10 605. Part IX, Section 70(a) of the Financial Memoranda for MMDAs, 2004 requires that no payments shall be made to a contractor, unless in case of payment of work done, the works engineer or such other person as the Assembly may appoint for the purpose, has inspected the work done and given the certificate required (contract or retention money payment certificate) which form shall be attached to the payment voucher.

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606. We noted that management of the Sefwi Bodi District Assembly overpaid a contractor, Messrs. Regha Construction Ltd who was engaged on the construction of a 3unit classroom block with a contract sum of contracted at GH¢96,642.12 at Afere by GH¢11,880.10. This was made possible because in the preparation of the Interim Payment Certificate No. 4 the Engineer understated the works paid to date from GH¢44,595.10 to GH¢32,715.00 resulting in the overstatement of GH¢11,880.10 which brought the forth certificate value to GH¢17,825.64 instead of GH¢5,945.54.

607. We recommended that the amount should be charged against any subsequent certificates presented as the project is ongoing. We further recommended that the Coordinating Director, the Works Engineer and the Finance Officer should exercise due care to prevent overpayment. The Engineer should be reprimanded for negligence which could have gone unnoticed.

Absence of monitoring team report - GH¢30,500.00 608. Part I, Section 2(a) of LI 1802 enjoins a head of department to manage and operate the department’s accounting systems, so as to ensure the accountability of all officers transacting such business and facilitate the efficient discharge of such business.

609. We however noted that management of Sefwi Bodi District Assembly paid an amount of GH¢30,500.00 in respect of monitoring activities but we did not sight any monitoring and inspection report, or specification of places visited and works carried out.

610. In the absence of the monitoring and inspection reports as well as non- specification of the locations visited , we could not confirm whether the amount paid was justified and also whether projects executed were in accordance with specifications and as a result value for money was obtained.

611. We recommended that the expenditure should be justified with the relevant documents otherwise the amount should be recovered from the Coordinating Director, Finance Officer and the monitoring team.

Completed project not in use- GH¢49,076.25 612. We noted from the audit of the MP’s Common Fund that, the Sekondi-Takoradi Metropolitan Assembly spent a total amount of GH¢49,076.25 on the renovation of 16 Seater W/C Toilet at First Street, Sekondi but this facility had not been put to use since December 2016.

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613. On our enquiry, management could not give any reason for its inability to hand over the facility for the use of the community. We recommended that management of the Assembly should without any further delay put the necessary measures in place to enable the community benefit from the project.

Procurement and stores irregularities

Purchases from non-VAT registered entities-GH¢250,288.32 614. We observed that the Shama (GH¢230,997.32) (VAT GH¢40,424.53) and Bibiani/Anhwiaso/Bekwai (GH¢19,291.00) (VAT GH¢3,375.93) purchased stores amounting to GH¢250,288.32 from non-VAT registered entities, thereby consciously avoided the payment of VAT of GH¢43,800.46.

615. Management of the Assemblies’ deliberate action contravened Pat VI, Regulation 183(4) of LI 1802 which provides that government stores shall be procured from only Value Added Tax (VAT) registered persons.

616. We recommended that management of the Assemblies should ensure strict adherence to the provisions of the above stated regulation to avoid sanctions in future.

Single source contract to private company for construction of solid waste disposal site and failure to commence work - GH¢480,000.00 617. Part Section 20 of the Public Procurement (Amendment) Act, 2016 (Act 914) requires of a procurement entity among others to request for quotations from as many suppliers or contractors as practicable but shall compare quotations from at least three different sources that should not be related in terms of ownership, shareholding or directorship.

618. We however found that the management of Shama (GH¢240,000.00) and Jomoro (GH¢240,000.00) District Assemblies single sourced Messrs. Waste Landfill Company for the management of solid waste disposal sites in the two districts at a quarterly fee of GH¢80,000.00 for an initial period of five years subject to renewal. As at the close of 31 December 2016, (three quarters into the agreement) a total amount of GH¢480,000.00 had been paid by the two Assemblies to Messrs. Waste Landfilled Company Ltd.

619. Management of the Assemblies could not provide us with any approval from the Public Procurement Board nor a ratification from the Regional Coordinating Council for sole sourcing under the situation. Our visit to the project sites also disclosed that despite payments made to the company work had not commenced.

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620. We recommended that management of the Assemblies should ensure that the provisions of the procurement regulations are strictly followed. Management should also ensure that the contractor executes the project otherwise the amount should be recovered and paid into the Assemblies’ accounts. Failure of which the Co-ordinating Directors and Finance Officers should refund the amount into the Assemblies’ accounts and sanctions imposed on them for flouting such relevant regulations. We also recommended that management should avert pre-financing of any further works.

Payment for works/repairs without orders and certificates of satisfactory completion of works- GH¢148,188.23 621. Management of Shama District Assembly contravened Part IX, Section 70 of the Financial Memoranda for Assemblies and paid a total amount of GH¢148,188.23 for the maintenance of buildings and other plant and equipment without works orders and certificates of satisfactory work done from the Works Engineer or any delegated personnel. 622. The neglect of Works Engineer and any management delegated staff to issue works orders and certificates of satisfactory work done to support maintenance works could lead to fictitious payments, execution of shoddy work and supply of inferior goods with the result of potential loss of funds to the Assembly.

623. We recommended that management of Shama District Assembly should ensure strict compliance with the provisions of the Memoranda in order to achieve value for money in all transactions. We further recommended that any avoidable cost incurred should be recovered from the authorising and approving officers of the payment.

Tax irregularities

Five percent withheld taxes not remitted- GH¢57,203.35 624. Contrary to Section 117 (1) of the Income Tax Act, 2015 (Act 896) which require among others that a withholding agent pays to the Commissioner-General after the end of each calendar month a tax that has been withheld, we noted that four Assemblies listed below failed to remit a total amount of GH¢57,203.35 in taxes withheld to the Commissioner-General. The amounts had been retained over periods averaging between one to 11 months.

No. Assembly Amount (GH¢) 1. Sefwi Bodi District 23,747.85 2. Prestea/Huni Valley District 20,272.18 3. Suaman District 2,611.36

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 109

4. Wasa Amenfi West District 10,571.96 Total 57,203.35

625. We recommended that the Coordinating Directors should ensure that the amounts are remitted to the Commissioner-General without any further delay to avoid any punitive action from the tax authorities otherwise the Finance Officers should bear the cost of any penalties imposed.

DISTRICT DEVELOPMENT FUNDS

Introduction 626. The table below shows the number of Assemblies in each region and the amount received from the District Development Facility Secretariat of the Ministry of Local Government and Rural Development as assistance towards their DDF infrastructural development activities for the year 2016.

Region No. of Amount Granted Assemblies ( GH¢) Ashanti 30 20,014,002.00 Brong Ahafo 27 16,089,520.00 Central 20 10,536,072.00 Eastern 26 14,153,681.00 Greater Accra 16 10,522,226.00 Northern 26 19,224,448.00 Upper East 13 9,842,815.00 Upper West 11 7,709,899.00 Volta 25 13,629,053.00 Western 22 12,386,443.00

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MANAGEMENT ISSUES

BRONG AHAFO REGION Cash irregularities

Unbudgeted expenditure-GH¢72,000.00 627. Regulation (151) of the Financial Administration Regulations, 2004 LI1802 provides amongst others that, a budget committee of a department shall review and formulate the strategic plans based on the policies of government; allocate resources based on objectives, outputs and activities, monitor and evaluate budget performance in accordance with the law.

628. On the contrary, management of the Tano South District Assembly procured 600 metal dual desks at a cost of GH¢119,850.00, out of which a part payment of GH¢72,000.00 was made. We however noted that the procurement of the desks were not captured in the Annual Action and Procurement Plans for the 2016 fiscal year. 629. We were of the opinion that such developments can result in diversion of funds meant for planned projects to the benefit of an individual and rather at the expense of the Assembly.

630. We recommended to management to always spend within the approved budget and that any new developments outside the budget, should be catered from approved supplementary budgets.

Unsupported payments – GH¢316,141.69 631. Whereas Part II Sections 7, 10, and 13 of the Financial Memoranda for Assemblies and Part II, Regulation 39 2(c & d) of LI 1802 require proper authentication of payment of transactions the Wenchi Municipal (GH¢309,168.69) and Pru District (GH¢6,973.00) Assemblies disbursed a total amount of GH¢316,141.69 from their District Development Facility funds without documentary evidence to show the prices, statement of expenditures and acknowledgment of receipts to substantiate and authenticate the payments.

632. As in other cases we attributed the lapse to laxity in the responsibilities of the Coordinating Directors and Finance Officers in ensuring sanity in the payment process.

633. Payments not properly substantiated could lead to payment for goods/services not or partly rendered or misappropriation of funds.

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634. We recommended that in the absence of an immediate accountability of the funds the Coordinating Directors, Finance Officers and Internal Auditors, should be made to refund the amount into the Assemblies’ accounts.

Contract irregularities

Overpayment of contract sum - GH¢47,975.15 635. Part IX, Section 68 of the Financial Memoranda for MMDAs requires that no alterations shall be made to any contract or schedule or specification thereof, except on the recommendation of the District Tender Board and provided that Assembly provisions are available. Such alterations shall be signed by the Presiding Member of the Assembly or such person as may be authorized by the Assembly to act on its behalf and by the contractor. Therefore payments shall be limited to the contract sum.

636. Our review of payments of completed contracts revealed that the Berekum Municipal (GH¢2,317.93), Atebubu Amantin (GH¢33,778.87) and Dormaa West District (GH¢11,878.35) Assemblies overpaid contracts by a total amount of GH¢47,975.15 as detailed below:

Assembly Name of Accou Project Contract Payments Excess contractor nt sum -GH¢ payment Atebubu- M/S. DDF Completion of 138,785.48 172,564.35 33,778.87 Amantin Frankwaba Mortuary at a Ent. Atebubu Hospital Berekum Care UDG 1 No. 2bedroom 31,920.07 34,238.00 2,317.93 Municipal Const. semi-detached Commecial nurses quarters at Ltd Berekum Dormaa Original DDF Cons. Of 16 unit 219,292.48 231,170.83 11,878.35 West Asaase lockable stores Aban Co. Ltd Total 392,315.96 435,655.25 47,975.15

637. We opined that failure to keep proper and prompt update of contract documents by the Finance officer and Engineer accounted for the lapse.

638. We recommended immediate recovery of the amount from the contractors the total amount of GH¢47,875.15 and measures put in place to prevent future occurrence.

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Failure of which the amount should be recovered from the finance officer and engineer.

Payment of preliminaries without evidence-GH¢39,750.00 639. Section 50.2 of the conditions of contract of the contract documents of Kintampo South District Assembly requires that, the contractor is to use the advance payment only to pay for equipment, plant, materials and mobilization expenses required specifically for execution of the contract. The contractor is to justify the payments by producing evidence in the form of receipts and invoices to the Works Engineer.

640. However, two contractors engaged in the construction of a 2 Unit Semi Detached classroom block, and WC toilet and urinal, respectively at Jema failed to provide evidences of preliminaries with regard to work undertaken amounting to GH¢39,750.00. This can result in shoddy or unexecuted portions of the contract.

641. We recommended to the DCD to ensure that the contractor provides evidence of disbursement or the advance should be recovered from them.

Payments for contracts without monitoring and evaluation reports - GH¢418,471.54 642. Regulation 39 (1&2) of Part II of FAR 2004, (LI 1802) states; ‘’A head of department shall ensure that moneys are utilized in a manner that ensures both optimum value for money and the intention of Parliament.’’

643. We noted that, management of Tain District Assembly paid nine contractors a total amount of GH¢418,471.54 but failed to produce any project monitoring reports to support the payments. Details are provided below:

P.V. No. Date Amount Project Title Payee 0633908 16/2/16 11,564.56 Construction of M/S Nogyam Ltd. classroom block at Teadene 0633914 22/4/16 9,835.28 Construction of Police M/SEverlina Company Post at Badu Ltd. 0633915 26/4/16 63,315.00 Construction of M/S S. K. Sukma Teachers’ Quarters at Enterprise Yabraso 0633916 27/4/16 98,571.00 Evacuation of two M/S Sabonsu refuse dumps at Badu Construction 0633923 3/6/16 108,000.00 Construction of 3 No. -do- unlockable market stalls at Nsawkaw

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0633925 8/7/16 34,227.42 Construction of M/S S. K. Sukma Teachers’ Quarters at Enterprise Yabraso 0633926 29/7/16 26,994.28 Construction of 3 No. M/S Sabonsu unlockable market stalls Construction at Nsawkaw 0633933 24/11/16 35,973.00 Completion of M/S ENSPAT Works Teachers’ Quarters at Degedege 0633932 24/11/16 29,991.00 Construction of CHPS -do- Compound at Degedege Total 418,471.54

644. As a result, we could not determine whether value for money was achieved for the total amount of GH¢418,471.54 paid.

645. We urged the DCD, DFO and the Works Engineer to provide us with monitoring reports on all certificates paid to authenticate the payments or they are jointly held liable for any loss that may accrue from the transactions.

Failure to execute contract according to specification-GH¢917,744.50 646. Part IX, Section 70(a) of the Financial Memoranda for Assemblies requires that no payment shall be made to a contractor unless in the case of payments in respect of work done, the Works Engineer or such other person as the Assembly may appoint for the purpose has inspected the work done and given a certificate required which shall be attached to the payment vouchers.

647. Contrary to the above, management of Asunafo South District (GH¢63,592.86), Banda District (GH¢4,335.00) and Wenchi Municipal (GH¢849,816.64) Assemblies paid a total amount of GH¢917,744.50 to two contractors for unexecuted portions of a contract. Details are shown below:

Assembly Contract Location Facilities not provided Amount- GH¢ Asunafo Rehabilitation of Banda Painting, decoration 63,592.86 South Kwapong NTC. Ahenkro and external works Hostels and lecture halls.

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Banda 2 NO. semi – Banda Boase Connection of 4,335.00 detached electricity, sink, WC, bungalow Ceiling, wash hand basin and Toilet roll holder Wenchi Construction of Wenchi Two stands at Wenchi 849,816.64 Municipal Four stands at town park Wenchi town park. Total 917,744.50

648. The anomaly has denied the beneficiaries the use of the facilities and has also deprived the Assemblies the needed funds for other infrastructural development. We urged the management of the Assemblies to exercise high level of circumspection and diligence in their contract management. The contractors should be pursued to perform the work or the total amount of GH¢917,744.50 should be recovered from them failing which the DCDs and the DFOs of the Assemblies involved should be made to refund the amount into the Assemblies account.

649. Payments to contractors without pre-qualification certificates-GH¢666,162.04 650. It is required in Section IX of each of the Tain District Assembly’s Contract Documents that, a contractor should possess the under listed documents to enable him/her qualify for the award of a contract in the Tain District.  Valid Ministry of Works and Housing Registration Certificate  Valid IRS Clearance Certificate  Valid SSNIT Clearance Certificate  Valid Registrar-General’s Certificate  Valid Assembly Registration Certificate  Minimum amount of liquid assets: - GH¢25,000.00  Certificate of Classification etc.  Equipment profile  Previous work profile

651. Our review of contract files for the period under review revealed however that, the six under-listed contractors who were awarded seven contracts in the sum of GH¢666,162.04, did not have any of the required criteria which is an indication that it was possible they did not meet the basic requirement for selection for award of contract in the district. The summary is tabled below.

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No Project title Contractor Contract Remarks . Sum 1. Construction of 1 No. 3-unit Messrs. 115,645.70 None of the classroom block at Teadene NOGYAM Ltd. required documents was sighted 2. Construction of 1 No. Police Everlina 98,352.76 -do- Post at Badu Asuafo Company Ltd. 3. Construction of 1 No. M/S S. K. Sukma 108,380.47 -do- Teacher’s Quarters at Enterprise Yabraso. 4. Evacuation of 2 No. refuse M/S Sabonsu 98,571.00 -do- dumps at Badu Construction

5. Construction of 3 No. M/SSabonsu 171,755.00 -do- market stalls at Nsawkaw Construction 6. Construction of 1 No. M/S Hazbuk Co. 36,307.11 -do- Reproductive Health and Ltd. Childhood Centre at Brohani 7. Supply and installation of M/S Gatcom 37,150.00 -do- Electrical materials to Enterprise connect 15 boreholes Total 666,162.04

652. This state of affairs can result in award of contracts based on favouritism and nepotism which can result in shoddy works to the detriment of the Assembly.

653. We recommended that the District Engineer should ensure that the contractors make a presentation of all these necessary documents for our inspection, failure of which he should be held liable for any setbacks that might emanate from the constructions.

Failure to sign Contract Agreements-GH¢692,590.43 654. Part IX Section 65 of FM for MMDAs states; ‘’On acceptance by the Assembly, a contract under the common seal of the Assembly and the hand and seal of the Contractor shall be entered into by the Co-ordinating Director of the Assembly or such other person as may be authorized by the Assembly to act on that behalf and the Contractor’’.

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655. We however noted that, management of Tain District Assembly failed to sign contracts in respect of seven projects valued at GH¢692,590.43 to ensure that terms and conditions contained in the contract documents were binding on both parties. Details are shown:

No. Project Title Contract Name Contract Remarks Sum Construction of 1No. Police Everlina No Contractor’s 1. Post at Badu Company. Ltd 90,352.76 seal Construction of 1 No. 3 unit 115,645.70 No Contractor’s 2. classroom block /ancillaries M/S Nogyam seal at Teadene L/A Ltd. Supply and installation of 37,150.00 Agreement not 3. Electrical materials for Gatkom signed by either mechanization of 15 Enterprise party boreholes. Construction of 3 No. market Sabonsu 171,755.00 No Chief 4. stalls at Nsawkaw Construction Executive’s seal, No Contractor’s seal Evacuation of 2 No. refuse Sabonsu 98,571.00 Contractor did 5. dumps at Badu Construction not sign at all Works Completion of 1 No. S. K. Sukma 108,380.47 Not endorsed by 6. Teachers’ Quarters at Enterprise Contractor and Yabraso Chief Executive Construction of 1 No. 3 unit Hazbuk 70,735.50 Not endorsed by 7. classroom pavilion at Company Ltd. Contractor and Kwaekesiem Chief Executive Total 692,590.43

656. Under such situations the Assembly stands to lose as it has no legal locus in the event of any dispute for non-performance.

657. We recommended that the Coordinating Director should liaise with the Planning Unit and Works Department to get the affected contractors to sign their respective portions of the contract agreements.

Abandoned/delayed projects-GH¢1,490,387.60 658. The Asutifi North (4) (GH¢668,301.94) and Asunafo South (5) (GH¢822,085.66) District Assemblies expended a total amount of GH¢1,490,387.60 on nine projects which are at various stages of completion but had been abandoned and new projects awarded. The projects were scheduled for completion in June 2016.

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659. Delay/ abandoning of projects can lead to cost overruns to the detriment of other developmental projects of the Assemblies.

660. We recommended that management of the Assemblies should ensure that priority is given to abandoned/delayed projects before new ones are awarded.

Procurements and stores irregularities

Uncompetitive procurements-GH¢57,857.00 661. Contrary to Section 20 of the Public Procurement (Amendment) Act, 2015 (Act 914) which requires procurement entities to request quotations from as many suppliers or contractors as practicable but from at least three different and unrelated sources, the Sunyani West District Assembly single sourced consultancy services for capacity building for staff amounting to GH¢57,857.00 without justification and approval from PPA.

662. We could therefore, not ascertain whether the Assembly obtained value for money in the transaction. Such single source procurement could be open to various abuses.

663. We recommended that the DCD should ensure that procurements are always subject to competitive quotations in order to obtain maximum benefit from all transactions.

Stores not accounted for-GH¢36,452.00 664. We found from our audit that the Asutifi South District Assembly purchased stores valued at GH¢36,452.00 from two (2) suppliers on three (3) occasions but failed to route the items through stores or make their final disposal points known. The items included, tables and chairs at GH¢18,952.00 and fifty Sewing Machines costing GH¢17,500.00.

665. Non maintenance of store records could result in diversion of stores for personal use. We recommended that in the absence of accountability of the items the Coordinating Directors and Finance Officers should be held liable for recovery of the amount.

Purchases from non VAT registered suppliers - GH¢142,519.66 666. Regulation 183 (4) of the FAR 2004, provides amongst others that government stores should to procured from only VAT registered persons.

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667. We however noted that the Wenchi (GH¢27,501.54), Nkoranza South Municipal (GH¢33,954.29), Banda (GH¢51,063.83) and Techiman North (GH¢30,000.00) District Assemblies procured goods and services amounting to GH¢142,519.66 from non-VAT registered entities resulting in the non-payment of a 17.5% VAT of GH¢24,940.94.

668. We recommended that the Coordinating Directors and the Finance Officers should always adhere to the requirements expected of government officials and comply with the tax laws, otherwise any penalties imposed should be recovered from them. .

EASTERN REGION

Cash irregularities

Unsupported payments- GH¢76,400.39 669. Section 39(2c) of LI 1802 require managements of public institutions to ensure that all payments are substantiated with expenditure documents to ensure they are due and payable.

670. Our audit however disclosed that Atiwa (5) (GH¢31,127.00) and Akyemmansa (6) (GH¢45,273.39) District Assemblies made 11 payments totaling GH¢76,400.39 from the District Development Facility funds without supporting the vouchers with any expenditure documents to justify and validate them.

671. Weak supervision and negligence on the part of the Finance Officers resulted in the lapse which posed financial risks to the Assemblies.

672. We recommended that failure to justify the payments with the relevant expenditure documents, the Coordinating Directors and Finance Officers who authorized the expenditures should be held liable for recovery of the amount into the Assemblies’ accounts.

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Contract irregularities

Completed projects not in use- GH¢254,007.00 673. We noted that Nsawam Adoagyri Municipal Assembly spent a total amount of GH¢254,007.00 on the construction of a slaughter house at Wangara (GH¢182,931.00) and 1 No. 16 Seater W/C toilet at Djankrom (GH¢71,076.00). These projects which were completed in 2014 are currently not in use by the intended beneficiary communities as a result of lack of water to run the facilities.

674. We advised management of the Assembly to undertake the provision of portable water to the facilities to make them operational, so as to generate revenue and improve the sanitation and health conditions of the beneficiary communities.

Poorly executed/Delayed projects-GH¢937,159.18 675. We noted that management of Nsawam-Adoagyiri Municipal ((2) (GH¢54,283.40), Birim South (2) (GH¢109,785.48) and Birim North (8) (GH¢773,090.30) spent a total amount of GH¢937,159.18 on 12 projects aimed at improving the life of the people of the communities under their jurisdiction. We however noted that the projects had either been poorly executed or delayed thereby not providing the intended benefits of the targeted communities.

676. We urged management to rectify the deficiencies and also ensure that action is expedited in the execution of the delayed projects.

Overpayment of contract-GH¢596.70 677. Management of Fanteakwa District made an overpayment of GH¢596.70 to a contractor due to wrong computation and non-reference to monitoring and evaluation report when effecting the payments. From a contract sum of GH¢130,000.00, management ended paying GH¢130,596.70 leading to the excess of GH¢596.70. This contravened Part II. Regulation 45 of LI 1802.

678. The situation can result in Assemblies not obtaining commensurate value for money expended as well as losses.

679. We urged management to recover the overpayment from the contractor and further ensure that in future computations on certificates are meticulously reviewed.

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NORTHERN REGION

Cash irregularities

Un-receipted payments - GH¢292,675.94 680. We noted in our review of DDF payment vouchers that, management of West Gonja District Assembly paid for five separate contracts totaling GH¢292,675.94 but failed to obtain receipts from the contractors/supply in acknowledgement of the amounts paid in violation of Sections 7, 13 and 14 of the Financial Memoranda of Assemblies.

681. We recommended that failure to obtain receipts to authenticate that the payments were made to intended payees, the Finance Officer should account for the amount.

Unsupported payment vouchers- GH¢107,991.50 682. Part IX, Section 5 of the Financial Memoranda for District Assemblies provides that where applicable the original invoices and statements shall be attached to a payment voucher. This is further emphasized in Sections 13 and 14 of the same instrument which reiterates that, official receipts shall be obtained in support of payments to Government Departments, State Enterprises and others including Assemblies

683. Our examination of the District Development Facility (DDF) payment vouchers however disclosed that the Zabzugu (GH¢99,500.00) and Bole (GH¢8,491.50) District Assemblies failed to adequately support 3 payment vouchers amounting to GH¢107,991.50 with any invoices, receipts, and statements of expenditure.

684. Failure of the accounting staff to demand receipts and other supporting documents from the payees for attachment to the vouchers and lack of effective supervision of the accounting staff by the District Finance Officers including disregard for the financial regulations were the causes of the lapse. We also attributed the lapse to the failure of the Coordinating Directors and Finance Officers to ensure that the relevant documents supported the payment vouchers before approving and authorizing for the payment.

685. The absence of the supporting documents could be a ploy to conceal shortages and misappropriation of funds. The authenticity of the payments could therefore not be confirmed.

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686. We recommended that in the absence of proper supporting of the payment vouchers with the relevant documents the amount of GH¢107991.50 should be recovered from the authorizing officers (DCDs and FOs) of the payments involved.

Payment for activities without activity performance reports: GH¢38,363.00 687. Management of Nanumba North District Assembly made three payments totaling GH¢38,363.00 in respect of activities it purported to have carried out regarding capacity building workshops. The payments were however not supported by activity performance reports and signed list of participants at the programmes to justify the expenditure.

688. Failure on the part of management to make sure payments are only made when activities have been undertaken and reported on was the cause of the anomaly which made it difficult and impossible for our audit team to confirm the veracity of the payment involved.

689. We recommended that failure to provide evidence of activity performance and signed lists of participants, the amount should be recovered jointly from the Coordinating Director and Finance Officer and same paid into the DDF account of the Assembly.

Payments for no work done– GH¢607,650.00 690. Part II, Regulation 39(2c) of LI 1802 states that the head of the accounts section of a department shall control the disbursement of funds and ensure that transactions are properly authenticated to show that amounts are due and payable.

691. Our audits disclosed that management of East Gonja District Assembly prefinanced a capacity building intervention of GH¢607,650.00 to be handled by one Clinton Gbangba but to date the programme had not come off.

692. Management’s action which resulted in pre-financing of the programme to the consultant for a service that he never rendered, stood the risk of causing loss of funds to the Assembly.

693. We recommended that management of the Assembly should immediately retrieve the amount paid to the consultant and pay same into the DDF accounts of the Assembly, failing which the authorizing officials should be held accountable and thereafter reprimanded for negligence.

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Contract irregularities

Failure to produce contract documents and evaluation reports – GH¢720,141.85 694. Whereas Part VII, Regulation 202 of the L.I.1802, enjoins officers to maintain financial and accounting records, management of East Gonja District Assembly awarded three contracts to the tune of GH¢720,141.85 without contract documentations and contract evaluation reports due to disregard to contract procedures.

695. We were therefore not availed with any criteria for the qualification and award of the contracts to the companies. We recommended that management of the Assembly as well as its tender committee should produce evidence of criteria and related records used in the awards of the contracts. Meanwhile, the Tender Committee should be reprimanded for negligence.

Contract payment without monitoring reports and engineers certificate – GH¢149,595.60 696. Contrary to the dictates of Section 70 (a) of the Financial Memoranda of Assemblies, our audit revealed that the Central Gonja District Assembly made payments to contractors to the tune of GH¢149,595.60 but failed to back the payment vouchers with monitoring and engineer’s reports on the projects involved.

697. Management’s refusal to comply with the Financial Memoranda caused the lapse, which made it difficult for us to determine whether the works have been done to the right specification or not.

698. We recommended to management to strictly adhere to the provisions enshrined in the Financial Memoranda to ensure that the Assembly obtains value for money for any expenditure incurred otherwise the approving officers should be held liable for any cost.

UPPER EAST REGRION

Cash irregularities

Payments not accounted for - GH¢163,224.39 699. Section 39(2)(c) of the Financial Administration Regulations, 2004 L.I. 1802, enjoins the DFO to control the disbursement of funds and ensure that transactions are properly authenticated to show that amounts paid are actually, due and payable.

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700. We however noted on the contrary that a total amount of GH¢163,224.39 paid on seven vouchers by management of Builsa North (3) (GH¢64,280.39) and South (4) (GH¢98,944.00) Assemblies were not accounted for by way of receipts and other related disbursement documents of the payees.

701. We could not authenticate the payments in the absence of the documents, and therefore recommended that failure to produce the relevant documents justifying the expenditure, the total amount of GH¢163,224.39 should be recovered from the Coordinating Directors and their Finance Officers.

Payments without vouchers – GH¢34,483.89 702. Part IX section 1 of the Financial Memoranda for District Assemblies provides that every payment shall be supported by the original of a voucher, which shall contain full particulars of the service for which payment is being made and the account to which is to be charged.

703. On the contrary the District Finance Officer (DFO) of Builsa South District Assembly made a total payment of GH¢ 34, 483.89 on 14 cheques but failed to support the payments with any payment vouchers. We assigned total negligence on the part of the Co-ordinating Director and his Finance Officer to the lapse which has the potential of inducing fraud and any payment irregularities.

704. We recommended that in the absence of the relevant document to justify the expenditure, the DCD and his finance officers should account for the amount.

Contract irregularities

Failure to complete projects on schedule - GH¢491,574.94 705. Part II Section 39(1) of the Financial Administration Regulations, 2004 (L.I 1802) enjoins the head of department to ensure that moneys are utilized in a manner that secures both optimum value for money and the intention of parliament.

706. On the contrary we noted during our project inspection that the construction of two projects, CHPS Compound at Wiaga Choik and Sandema Hospital Theatre Block of the Builsa North Assembly costing GH¢ 491,574.94 were as of 30 November 2016 seven months behind schedule.

707. Management attributed the delay to late release of funds from the DDF Secretariat, lack of co-operation from the contractors and heavy rains during the

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 124 raining season. In our opinion the delays could lead to increases in the contract sums of the projects.

708. We recommended to management to take steps to ensure that the contracts were completed on schedule to prevent any budget overruns.

Completed projects not in use- GH¢117,000.00 709. Contrary to Section 39(1) of the Financial Administration Regulation 2004 (L.I, 1802), we noted during our inspection of projects that 1No. 4 Unit Police Quarters and Ancillary facilities at Denugu, completed in February 2016 at a cost of GHC117,000.00 had not been put to use.

710. We noted that failure by management of the Garu Tempane Assembly to liaise, commission and formally hand over the project to the District Commander of Ghana Police Service, Garu to occupy the Quarters had resulted in the stalemate.

711. This has the tendency of undermining the purpose, effectiveness, efficiency and economy in the use of Public Funds.

712. We recommended to management of the Assembly to take the necessary steps to have the project commissioned to boost the morale of the Security personnel in order to make maximum contribution to the communities.

VOLTA REGION

Cash irregularities

Unsubstantiated payment- GH¢ 69,370.00 713. Part IX, Sections 7, 13 and 14 of the Financial Memoranda for District Assemblies require original invoices, statements, payee’s official receipts or written acknowledgement in ink by payees to support payment vouchers. Our audit of the District Development Fund (DDF) disclosed on the contrary that Hohoe Municipal (GH¢7,470.00 on a PV), Keta (GH¢6,000.00 on a PV) and North Dayi (GH¢55,900.00 on 2 PVs) District Assemblies failed to substantiate total payments of GH¢69,370.00 with any disbursement related documents.

714. Consequently we found it difficult to validate the genuineness of the transactions in the absence of supporting receipts, invoices, statements etc.

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715. We recommended that failure to provide all relevant supporting invoices, receipts and other documentary evidence for examination the amounts involved should be refunded by the authorizing and approving officials of the Assemblies.

Unretired imprest- GH¢19,400.00 716. Contrary to Part IX, Section 39 of the Financial Memoranda for District Assemblies, Mr. Yakubu Mohammed Hardi of Krachi East District Assembly failed to fully retire imprest totaling GH¢19,400.00 granted him to organize a three day workshop for Sub-structures and Training on Geographic Information System (GIS) data collection and management on behalf of the Assembly. Weak supervisory control and inertia on the part of the management of the Assembly resulted in the lapse.

717. We recommended that failure by the official to retire the imprest, the amount involved should be adjusted to his personal account and recovered as such.

Contract irregularities

Variation order without details- GH¢10,000.00 718. The Works Engineer, Mr. Issifu Iddi Zakri of the Krachi East District Assembly gave a variation order for works in the sum of GH¢10,000.00 for the construction of 1 No. 30 Unit Market Sheds at Bidikorpe constructed by Messrs. Kademco Ventures at an initial cost of GH¢89,851.80.

719. In a letter referenced KEDA/VR/RDS/DDF/CONS/15/VO of 8 September, 2015, to the District Tender Committee, the Engineer had sought the approval of the bulk amount having varied the initial design of 2.0 to 3.0 without any submission of Bill of Quantities in support.

720. This in our opinion was not proper and rendered the variation orders not transparent because the Engineer stated only a bulk amount in the request without indicating how it was arrived that. The situation may result in over payment of variation costs if details of the variation order are not substantiated. Value for money may also not be achieved under such circumstances.

721. We requested for the provision of the bill of quantities for our audit scrutiny. In default the Works Engineer should be made to refund the amount of GH¢10,000.00 and sanctioned thereafter.

Abandoned District Magistrate Court under construction - GH¢57,668.67 722. Our visit to DDF projects sites of the Krachi East District Assembly disclosed that the construction of a Circuit Court, Dambai which was started in 2011 at a contract sum

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 126 of GH¢150,000.00 by Messrs. Gilgal Company Limited had been abandoned after the Assembly had committed a total amount of GH¢57,668.67 being 38.4% of cost as of 31 October 2014. The community is therefore denied benefit from the project.

723. The Works Engineer; Mr. Duah Bonsu attributed non commitment on the part of the contractor adding that he (contractor) was indebted to his bankers hence any payment through the bank was used to service the debts which made it difficult for him (contractor) to be solvent to continue with the execution.

724. We recommended that the contract should be abrogated and possibly re-awarded to a more credit worthy contractor for completion. Management should also give priority to this project when considering new awards.

Un-provided items in bill of quantities-GH¢16,000.00

725. We noted that four contractors who were awarded various constructional projects by the Krachi East District Assembly failed to provide some expenditure items valued at GH¢16,000.00 included in the preliminary stages of the bills of quantities. The details have been provided in the table below:

Un-provided items on bill of quantities

No. Project Contractor Item not provided Amount GH¢

1. Construction of Messrs. Provide and erect sign post 1,000.00 CHPS Compound Kademco on the project at Motorway Ventures Record on temperature, Adakorpe for 1,500.00 GH¢500,000.00 visitors and any other occurrences progress of work

2. Construction of Messrs. Provide and erect sign post 1,000.00 1No. 3 Unit Lavis on the project Classroom Block Constructi Record on temperature, with ancillary on and 1,5000.00 facilities at Nwane Trading visitors and any other GH¢249,875.69 Limited occurrences progress of 3,000.00 work

Temporary building

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3. Construction of Messrs. Provide and erect sign post 1,000.00 CHPS Compound Ajaf on the project at Kparekpare for Engineerin GH¢513,957.40 g Limited Record on temperature, visitors and any other 1,500.00 occurrences progress of 3,000.00 work

Temporary building

4. Construction of Messrs. Provide and erect sign post 1,000.00 1No. 6 Unit Kwaneth on the project Classroom Block Company 1,500.00 with ancillary Limited Record on temperature, facilities at visitors and any other Betenase for occurrences progress of GH¢500,000.00 work

Total 16,000.00

726. We recommended that until the provisions have been made by the contractors, the amount should be withheld from any subsequent payments made to them. The Works Engineer should be sanctioned for not ensuring the execution of every agreed term in the contracts.

Tax irregularities

Withholding taxes not deducted:-GH¢ 1,514.41 727. Part VIII, Section 117(3) of the Income Tax Act, 2015 (Act 896) states that a withholding agent who fails to withhold tax in accordance with this division shall pay the tax that should have been withheld in the same manner and at the same time as tax withheld.

728. Management of Afadzato South (GH¢1,021.41) and Hohoe (GH¢493.00) District Assemblies failed to deduct withholding tax to the tune of GH¢1,514.41 from suppliers for goods and services for remittance to the Domestic Tax Revenue Division of Ghana Revenue Authority (GRA). The Finance officers were found to have been negligent in that respect which deprived the State of revenue for development.

729. We recommended compliance with the above stated law.

Auditor-General’s Report on the Management and Utilisation of DACF and Other Statutory Funds 128

DACF ALLOCATIONS, DEDUCTIONS AND RELEASES - 2016 APPENDIX A

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE ASHANTI REGION 1 ADANSI NORTH 3,313,399.58 595,350.06 564,068.96 579,118.31 1,738,537.33 1,574,862.25 52.47 2 ADANSI SOUTH 2,923,021.95 525,207.19 497,611.57 510,887.84 1,533,706.60 1,389,315.35 52.47 3 AFIGYA KWABRE 3,354,255.35 602,691.00 571,024.20 586,259.11 1,759,974.31 1,594,281.04 52.47 4 AHAFO ANO NORTH 2,822,594.01 507,162.35 480,514.84 493,334.97 1,481,012.16 1,341,581.85 52.47 5 AHAFO ANO SOUTH 2,981,580.00 535,728.87 507,580.42 521,122.65 1,564,431.94 1,417,148.06 52.47 6 AMANSIE CENTRAL 2,666,156.24 479,053.68 453,883.07 465,992.67 1,398,929.42 1,267,226.82 52.47 7 AMANSIE WEST 3,023,070.98 543,183.95 514,643.79 528,374.48 1,586,202.22 1,436,868.76 52.47 8 ASANTE AKIM CENTRAL 2,851,552.97 512,365.68 485,444.78 498,396.44 1,496,206.90 1,355,346.07 52.47 9 ASANTE AKIM NORTH MUN. 3,399,418.09 610,805.82 578,712.65 594,152.69 1,783,671.16 1,615,746.93 52.47 10 ASANTE AKIM SOUTH 2,765,912.35 496,977.81 470,865.43 483,428.11 1,451,271.35 1,314,641.00 52.47 11 ASOKORE MAMPONG MUN. 5,291,343.23 950,746.03 900,791.60 924,824.70 2,776,362.33 2,514,980.90 52.47 12 ATWIMA KWANWOMA 2,787,311.55 500,822.81 474,508.40 487,168.28 1,462,499.49 1,324,812.06 52.47 13 ATWIMA MPONUA 2,995,026.18 538,144.88 509,869.48 523,472.79 1,571,487.15 1,423,539.03 52.47 14 ATWIMA NWABIAGYA 3,313,980.26 595,454.39 564,167.82 579,219.81 1,738,842.02 1,575,138.24 52.47 15 BEKWAI MUNICIPAL 2,970,478.50 533,734.16 505,690.51 519,182.33 1,558,607.00 1,411,871.50 52.47 16 BOSOME FREHO 2,641,985.59 474,710.71 449,768.29 461,768.10 1,386,247.10 1,255,738.49 52.47 17 BOSOMTWI 2,668,841.86 479,536.23 454,340.27 466,462.06 1,400,338.56 1,268,503.30 52.47 18 EJISU JUABEN MUNICIPAL 3,173,411.87 570,197.13 540,237.63 554,651.16 1,665,085.92 1,508,325.95 52.47 19 EJU/SEKYEDUMASE MUN. 2,698,383.76 484,844.31 459,369.45 471,625.42 1,415,839.18 1,282,544.58 52.47 20 KUMASI METRO. 8,654,433.11 1,555,024.42 1,473,319.77 1,512,627.92 4,540,972.11 4,113,461.00 52.47 21 KWABRE EAST 2,981,504.91 535,715.38 507,567.63 521,109.53 1,564,392.54 1,417,112.37 52.47 22 MAMPONG MUNICIPAL 2,650,447.92 476,231.22 451,208.91 463,247.16 1,390,687.29 1,259,760.63 52.47 23 OBUASI MUNICIPAL 3,112,445.08 559,242.65 529,858.72 543,995.34 1,633,096.71 1,479,348.37 52.47 24 OFFINSO MUNICIPAL 2,880,299.31 517,530.81 490,338.52 503,420.74 1,511,290.07 1,369,009.24 52.47 25 OFFINSO NORTH 2,696,296.27 484,469.23 459,014.07 471,260.56 1,414,743.86 1,281,552.41 52.47 26 SEKYERE AF./PLAINS 3,124,300.24 561,372.78 531,876.93 546,067.40 1,639,317.11 1,484,983.13 52.47 27 SEKYERE CENTRAL 2,825,502.37 507,684.92 481,009.96 493,843.30 1,482,538.18 1,342,964.19 52.47 28 SEKYERE EAST 2,670,856.08 479,898.15 454,683.17 466,814.11 1,401,395.43 1,269,460.65 52.47 29 SEKYERE KUMAWU 2,703,755.01 485,809.41 460,283.84 472,564.21 1,418,657.46 1,285,097.55 52.47 30 SEKYERE SOUTH 2,786,102.46 500,605.56 474,302.57 486,956.95 1,461,865.08 1,324,237.38 52.47 TOTAL - GHc 95,727,667.09 17,200,301.59 16,296,557.25 16,731,349.14 50,228,207.98 45,499,459.11

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

BRONG AHAFO REGION 1 ASUNAFO NORTH MUN. 3,024,882.55 543,509.46 514,952.19 528,691.10 1,587,152.75 1,437,729.80 52.47 2 ASUNAFO SOUTH 2,933,793.71 527,142.66 499,445.34 512,770.53 1,539,358.53 1,394,435.18 52.47 3 ASUTIFI NORTH 3,424,845.87 615,374.67 583,041.44 598,596.98 1,797,013.09 1,627,832.78 52.47 4 ASUTIFI SOUTH 2,730,611.28 490,634.93 464,855.82 477,258.17 1,432,748.92 1,297,862.36 52.47 5 ATEBUBU AMANTIN 3,325,477.67 597,520.24 566,125.12 581,229.33 1,744,874.69 1,580,602.98 52.47 6 BANDA 2,846,540.84 511,465.10 484,591.52 497,520.42 1,493,577.04 1,352,963.80 52.47 7 BEREKUM MUNICIPAL 2,917,961.19 524,297.88 496,750.03 510,003.31 1,531,051.22 1,386,909.97 52.47 8 DORMAA CENTRAL MUN. 2,714,995.88 487,829.17 462,197.47 474,528.89 1,424,555.53 1,290,440.35 52.47 9 DORMAA EAST 2,741,353.79 492,565.14 466,684.61 479,135.75 1,438,385.50 1,302,968.29 52.47 10 DORMAA WEST 3,299,964.22 592,936.00 561,781.74 576,770.07 1,731,487.81 1,568,476.41 52.47 11 JAMAN NORTH 2,705,130.86 486,056.62 460,518.06 472,804.68 1,419,379.36 1,285,751.50 52.47 12 JAMAN SOUTH 3,369,857.66 605,494.42 573,680.32 588,986.10 1,768,160.84 1,601,696.82 52.47 13 KINTAMPO MUNICIPAL 2,719,227.29 488,589.46 462,917.82 475,268.46 1,426,775.74 1,292,451.55 52.47 14 KINTAMPO SOUTH 2,651,385.29 476,399.65 451,368.49 463,410.99 1,391,179.13 1,260,206.16 52.47 15 NKORANZA NORTH 2,690,995.73 483,516.83 458,111.72 470,334.13 1,411,962.68 1,279,033.05 52.47 16 NKORANZA SOUTH MUN. 2,882,213.15 517,874.69 490,664.33 503,755.25 1,512,294.27 1,369,918.88 52.47 17 PRU 3,293,921.55 591,850.26 560,753.05 575,713.93 1,728,317.24 1,565,604.31 52.47 18 SENE EAST 3,348,976.91 601,742.58 570,125.60 585,336.54 1,757,204.72 1,591,772.19 52.47 19 SENE WEST 2,941,587.43 528,543.03 500,772.13 514,132.72 1,543,447.88 1,398,139.55 52.47 20 SUNYANI MUNICIPAL 3,542,342.06 636,486.33 603,043.84 619,133.04 1,858,663.21 1,683,678.85 52.47 21 SUNYANI WEST 3,216,327.67 577,908.22 547,543.56 562,152.02 1,687,603.80 1,528,723.87 52.47 22 TAIN 2,669,417.50 479,639.66 454,438.27 466,562.67 1,400,640.60 1,268,776.90 52.47 23 TANO NORTH 2,931,264.43 526,688.20 499,014.76 512,328.46 1,538,031.42 1,393,233.01 52.47 24 TANO SOUTH 3,152,926.14 566,516.27 536,750.17 551,070.65 1,654,337.09 1,498,589.05 52.47 25 TECHIMAN MUNICIPAL 2,697,465.29 484,679.28 459,213.09 471,464.89 1,415,357.26 1,282,108.03 52.47 26 TECHIMAN NORTH 3,541,187.71 636,278.92 602,847.33 618,931.28 1,858,057.53 1,683,130.18 52.47 27 WENCHI MUNICIPAL 2,744,773.09 493,179.52 467,266.71 479,733.38 1,440,179.61 1,304,593.48 52.47 TOTAL - GHc 81,059,426.77 14,564,719.19 13,799,454.53 14,167,623.74 42,531,797.46 38,527,629.31 DACF ALLOCATIONS, DEDUCTIONS AND RELEASES - 2016 APPENDIX A

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

CENTRAL REGION 1 ABURA/ ASEBU/KWAN. 2,748,273.37 493,808.45 467,862.59 480,345.16 1,442,016.20 1,306,257.17 52.47 2 AGONA EAST 3,052,215.12 548,420.56 519,605.25 533,468.31 1,601,494.12 1,450,721.00 52.47 3 AGONA WEST MUN. 2,854,757.66 512,941.50 485,990.34 498,956.56 1,497,888.40 1,356,869.26 52.47 4 AJU/ENY/ESSIAM 2,829,076.89 508,327.19 481,618.48 494,468.05 1,484,413.72 1,344,663.17 52.47 5 ASI/ODO/BRAKWA 2,843,518.48 510,922.05 484,077.00 496,992.16 1,491,991.21 1,351,527.27 52.47 6 ASSIN NORTH MUN. 2,836,803.00 509,715.41 482,933.76 495,818.43 1,488,467.60 1,348,335.40 52.47 7 ASSIN SOUTH 3,014,188.19 541,587.90 513,131.59 526,821.94 1,581,541.43 1,432,646.76 52.47 8 AWUTU SENYA 3,099,885.00 556,985.86 527,720.51 541,800.09 1,626,506.46 1,473,378.54 52.47 9 AWUTU SENYA EAST MUN 3,841,118.06 690,170.26 653,907.09 671,353.32 2,015,430.67 1,825,687.39 52.47 10 CAPE COAST METRO. 3,572,414.86 641,889.80 608,163.40 624,389.19 1,874,442.39 1,697,972.47 52.47 11 EFFUTU MUNICIPAL 3,253,468.30 584,581.63 553,866.34 568,643.48 1,707,091.45 1,546,376.85 52.47 12 EKUMFI 3,369,790.52 605,482.35 573,668.89 588,974.36 1,768,125.60 1,601,664.92 52.47 13 GOMOA 3,199,849.65 574,947.46 544,738.37 559,271.98 1,678,957.81 1,520,891.84 52.47 14 GOMOA EAST 3,390,604.13 609,222.13 577,212.17 592,612.18 1,779,046.48 1,611,557.65 52.47 15 KOM/EDI/EGU/ABI MUN. 3,041,450.97 546,486.46 517,772.78 531,586.95 1,595,846.19 1,445,604.78 52.47 16 MFANTSEMAN WEST MUN. 3,677,753.25 660,816.95 626,096.07 642,800.31 1,929,713.33 1,748,039.92 52.47 17 TWIFO ATI-MORKWA 3,133,455.34 563,017.76 533,435.48 547,667.53 1,644,120.77 1,489,334.57 52.47 18 TWIFO HEMANG/LOWER DEN 3,453,716.36 620,562.11 587,956.32 603,642.98 1,812,161.41 1,641,554.95 52.47 19 UPP. DENKY. EAST MUN. 2,887,720.47 518,864.24 491,601.89 504,717.82 1,515,183.95 1,372,536.52 52.47 20 UPPER DENKYIRA WEST 3,361,062.23 603,914.06 572,182.99 587,448.83 1,763,545.88 1,597,516.35 52.47 TOTAL - GHc 63,461,121.86 11,402,664.13 10,803,541.31 11,091,779.63 33,297,985.07 30,163,136.79

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

EASTERN REGION 1 AKUAPEM SOUTH 2,787,663.76 500,886.10 474,568.36 487,229.84 1,462,684.30 1,324,979.46 52.47 2 AKUAPIM NORTH MUN 3,231,480.73 580,630.92 550,123.20 564,800.48 1,695,554.60 1,535,926.13 52.47 3 AKYEMANSA 3,214,641.34 577,605.22 547,256.49 561,857.28 1,686,718.99 1,527,922.35 52.47 4 ASUOGYAMAN 2,582,230.39 463,973.93 439,595.64 451,324.05 1,354,893.62 1,227,336.77 52.47 5 ATIWA 2,680,255.78 481,587.08 456,283.36 468,456.99 1,406,327.43 1,273,928.35 52.47 6 AYENSUANO 3,293,996.79 591,863.77 560,765.86 575,727.08 1,728,356.71 1,565,640.08 52.47 7 BIRIM CENTRAL MUNICIPAL 2,869,133.96 515,524.62 488,437.75 501,469.26 1,505,431.63 1,363,702.33 52.47 8 BIRIM NORTH 2,713,826.12 487,618.98 461,998.33 474,324.44 1,423,941.75 1,289,884.37 52.47 9 BIRIM SOUTH 3,323,082.77 597,089.93 565,717.42 580,810.75 1,743,618.10 1,579,464.67 52.47 10 DENKYEMBOUR 3,595,882.81 646,106.51 612,158.55 628,490.90 1,886,755.96 1,709,126.85 52.47 11 EAST AKIM MUNICIPAL 2,842,113.85 510,669.66 483,837.88 496,746.66 1,491,254.20 1,350,859.65 52.47 12 FANTEAKWA 2,653,809.93 476,835.30 451,781.25 463,834.77 1,392,451.32 1,261,358.61 52.47 13 KWAEBIBIRIM 2,711,140.49 487,136.43 461,541.14 473,855.05 1,422,532.62 1,288,607.87 52.47 14 KWAHU AFRAM PLAINS. N 3,113,401.72 559,414.54 530,021.58 544,162.55 1,633,598.67 1,479,803.05 52.47 15 KWAHU AFRAM PLAINS. S 3,375,590.44 606,524.48 574,656.26 589,988.08 1,771,168.82 1,604,421.62 52.47 16 KWAHU EAST 2,845,239.90 511,231.35 484,370.05 497,293.03 1,492,894.43 1,352,345.47 52.47 17 KWAHU SOUTH 2,623,857.61 471,453.49 446,682.21 458,599.68 1,376,735.38 1,247,122.23 52.47 18 KWAHU WEST MUNICIPAL 2,970,974.90 533,823.36 505,775.02 519,269.09 1,558,867.47 1,412,107.43 52.47 19 MANYA KROBO MUNICIPAL 2,677,570.15 481,104.53 455,826.16 467,987.60 1,404,918.29 1,272,651.86 52.47 20 NEW JUABEN MUNICIPAL 3,639,696.04 653,978.85 619,617.26 636,148.64 1,909,744.75 1,729,951.29 52.47 21 NSAWAM/ADOAGYIRI 2,660,956.53 478,119.40 452,997.88 465,083.86 1,396,201.14 1,264,755.39 52.47 22 SUHUM MUNICIPAL 2,653,399.51 476,761.56 451,711.38 463,763.04 1,392,235.98 1,261,163.53 52.47 23 UPPER MANYA KROBO 2,960,150.79 531,878.48 503,932.34 517,377.24 1,553,188.06 1,406,962.73 52.47 24 UPPER WEST AKIM 2,737,330.46 491,842.23 465,999.68 478,432.55 1,436,274.46 1,301,056.00 52.47 25 WEST AKIM MUNICIPAL 2,719,868.78 488,704.73 463,027.03 475,380.58 1,427,112.34 1,292,756.44 52.47 26 YILO KROBO MUNICIPAL 2,786,139.05 500,612.14 474,308.80 486,963.35 1,461,884.29 1,324,254.76 52.47 TOTAL - GHc 76,263,434.57 13,702,977.59 12,982,990.88 13,329,376.84 40,015,345.31 36,248,089.26 DACF ALLOCATIONS, DEDUCTIONS AND RELEASES - 2016 APPENDIX A

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

GREATER ACCRA REGION 1 ACCRA METRO. 9,171,416.31 1,647,915.71 1,561,330.34 1,602,986.61 4,812,232.66 4,359,183.65 52.47 2 ADA EAST 2,748,067.86 493,771.52 467,827.61 480,309.24 1,441,908.37 1,306,159.49 52.47 3 ADA WEST 3,222,998.08 579,106.76 548,679.13 563,317.88 1,691,103.77 1,531,894.31 52.47 4 ADENTA MUNICIPAL 2,937,404.57 527,791.45 500,060.05 513,401.64 1,541,253.14 1,396,151.43 52.47 5 ASHAIMAN MUNICIPAL 3,259,978.70 585,751.42 554,974.66 569,781.37 1,710,507.45 1,549,471.25 52.47 6 GA CENTRAL MUNICIPAL 4,731,403.42 850,136.31 805,468.15 826,958.03 2,482,562.49 2,248,840.93 52.47 7 GA EAST MUNICIPAL 3,538,313.61 635,762.50 602,358.05 618,428.95 1,856,549.50 1,681,764.11 52.47 8 GA SOUTH 3,808,959.70 684,392.06 648,432.49 665,732.66 1,998,557.21 1,810,402.49 52.47 9 GA WEST MUNICIPAL 3,430,847.09 616,452.97 584,063.08 599,645.87 1,800,161.92 1,630,685.17 52.47 10 KPONE AKATAMANSO 4,384,286.13 787,766.44 746,375.34 766,288.62 2,300,430.40 2,083,855.73 52.47 11 LA DADE-KOTOPON MUN 5,279,271.34 948,576.96 898,736.49 922,714.77 2,770,028.22 2,509,243.12 52.47 12 LA NKANTANANG MADINA M 3,030,736.73 544,561.33 515,948.80 529,714.30 1,590,224.43 1,440,512.30 52.47 13 LEDZEKUKU-KROWOR MUN. 4,547,437.97 817,081.49 774,150.10 794,804.41 2,386,036.00 2,161,401.97 52.47 14 NINGO/PRAMPRAM 3,031,401.51 544,680.78 516,061.97 529,830.49 1,590,573.24 1,440,828.27 52.47 15 SHAI/OSUDOKU 3,027,373.07 543,956.95 515,376.17 529,126.40 1,588,459.52 1,438,913.55 52.47 16 TEMA METRO. 3,491,351.68 627,324.41 594,363.30 610,220.91 1,831,908.62 1,659,443.06 52.47 TOTAL - GHc 63,641,247.77 11,435,029.06 10,834,205.73 11,123,262.15 33,392,496.94 30,248,750.83

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

NORTHERN REGION 1 BOLE 2,723,579.01 489,371.38 463,658.65 476,029.06 1,429,059.09 1,294,519.92 52.47 2 BUNKPURUGU/YUNYOO 3,051,919.74 548,367.49 519,554.97 533,416.68 1,601,339.14 1,450,580.60 52.47 3 CENTRAL GONJA 3,039,537.43 546,142.64 517,447.02 531,252.49 1,594,842.15 1,444,695.28 52.47 4 CHEREPONI 2,599,015.56 466,989.88 442,453.13 454,257.77 1,363,700.78 1,235,314.78 52.47 5 EAST GONJA 3,440,959.63 618,269.99 585,784.63 601,413.35 1,805,467.97 1,635,491.66 52.47 6 EAST MAMPRUSI 3,174,411.15 570,376.68 540,407.75 554,825.82 1,665,610.25 1,508,800.90 52.47 7 GUSHEGU 3,057,533.89 549,376.23 520,510.71 534,397.93 1,604,284.87 1,453,249.02 52.47 8 KARAGA 2,641,974.65 474,708.75 449,766.43 461,766.19 1,386,241.37 1,255,733.28 52.47 9 KPANDAI 3,209,701.19 576,717.56 546,415.48 560,993.84 1,684,126.88 1,525,574.31 52.47 10 KUMBUNGU 2,601,029.78 467,351.79 442,796.03 454,609.82 1,364,757.64 1,236,272.14 52.47 11 MAMPRUGU-MOAGDURI 3,130,457.06 562,479.03 532,925.06 547,143.49 1,642,547.58 1,487,909.48 52.47 12 MION 3,361,062.23 603,914.06 572,182.99 587,448.83 1,763,545.88 1,597,516.35 52.47 13 NANUMBA NORTH 3,134,066.30 563,127.54 533,539.49 547,774.32 1,644,441.35 1,489,624.95 52.47 14 NANUMBA SOUTH 3,274,842.61 588,422.16 557,505.07 572,379.30 1,718,306.53 1,556,536.08 52.47 15 NORTH GONJA 2,918,605.18 524,413.59 496,859.66 510,115.87 1,531,389.12 1,387,216.06 52.47 16 SABOBA 2,590,958.68 465,542.22 441,081.54 452,849.58 1,359,473.34 1,231,485.34 52.47 17 SAGNERIGU 2,977,688.97 535,029.74 506,918.01 520,442.58 1,562,390.33 1,415,298.64 52.47 18 SAVELUGU/NANTON 2,951,853.73 530,387.67 502,519.85 515,927.07 1,548,834.59 1,403,019.14 52.47 19 SAWLA-TUNA-KALBA 3,096,467.77 556,371.85 527,138.77 541,202.82 1,624,713.44 1,471,754.33 52.47 20 TAMALE METRO. 3,825,004.30 687,274.95 651,163.91 668,536.95 2,006,975.81 1,818,028.49 52.47 21 TATALE SANGULI 2,923,305.02 525,258.05 497,659.76 510,937.31 1,533,855.12 1,389,449.90 52.47 22 TOLON 2,560,073.97 459,992.87 435,823.76 447,451.53 1,343,268.16 1,216,805.81 52.47 23 WEST GONJA 2,887,720.47 518,864.24 491,601.89 504,717.82 1,515,183.95 1,372,536.52 52.47 24 WEST MAMPRUSI 2,991,117.11 537,442.50 509,204.00 522,789.56 1,569,436.06 1,421,681.05 52.47 25 YENDI MUNICIPAL 2,901,777.09 521,389.93 493,994.87 507,174.65 1,522,559.45 1,379,217.64 52.47 26 ZABZUGU 2,867,578.26 515,245.10 488,172.91 501,197.35 1,504,615.36 1,362,962.90 52.47 TOTAL - GHc 77,932,240.78 14,002,827.89 13,267,086.34 13,621,051.98 40,890,966.21 37,041,274.57

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

UPPER EAST REGION 1 BAWKU MUNICIPAL 3,134,126.75 563,138.40 533,549.78 547,784.88 1,644,473.06 1,489,653.69 52.47 2 BAWKU WEST 2,717,854.56 488,342.81 462,684.13 475,028.54 1,426,055.48 1,291,799.08 52.47 3 BINDURI 3,038,786.99 546,007.80 517,319.26 531,121.33 1,594,448.39 1,444,338.60 52.47 4 BOLGA. MUNICIPAL 3,527,571.11 633,832.30 600,529.25 616,551.36 1,850,912.91 1,676,658.20 52.47 5 BONGO 3,712,031.44 666,976.09 631,931.66 648,791.44 1,947,699.19 1,764,332.25 52.47 6 BUILSA NORTH 2,670,856.08 479,898.15 454,683.17 466,814.11 1,401,395.43 1,269,460.65 52.47 7 BUILSA SOUTH 2,660,784.98 478,088.58 452,968.68 465,053.87 1,396,111.13 1,264,673.85 52.47 8 GARU-TEMPANE 3,017,454.34 542,174.76 513,687.62 527,392.80 1,583,255.18 1,434,199.16 52.47 9 KASSENA NANKANA MUN. 3,564,498.48 640,467.39 606,815.72 623,005.56 1,870,288.67 1,694,209.81 52.47 10 KASSENA NANKANA WEST 2,623,857.61 471,453.49 446,682.21 458,599.68 1,376,735.38 1,247,122.23 52.47 11 NABDAM 2,909,876.89 522,845.29 495,373.77 508,590.33 1,526,809.39 1,383,067.50 52.47 12 PUSIGA 3,070,311.08 551,672.03 522,685.88 536,631.13 1,610,989.04 1,459,322.04 52.47 13 TALENSI 2,689,655.47 483,276.01 457,883.55 470,099.88 1,411,259.44 1,278,396.03 52.47 TOTAL - GHc 39,337,665.77 7,068,173.10 6,696,794.68 6,875,464.91 20,640,432.69 18,697,233.08 DACF ALLOCATIONS, DEDUCTIONS AND RELEASES - 2016 APPENDIX A

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE UPPER WEST REGION 1 DAFFIAMA-BUSSIE-ISSA 3,612,839.76 649,153.33 615,045.28 631,454.68 1,895,653.29 1,717,186.47 52.47 2 JIRAPA 2,631,243.08 472,780.50 447,939.50 459,890.52 1,380,610.52 1,250,632.56 52.47 3 LAMBUSSIE KANI 2,586,930.24 464,818.39 440,395.74 452,145.49 1,357,359.62 1,229,570.62 52.47 4 LAWRA 2,673,541.71 480,380.70 455,140.37 467,283.50 1,402,804.57 1,270,737.14 52.47 5 NADOWLI KALEO 2,639,299.97 474,228.16 449,311.10 461,298.71 1,384,837.97 1,254,462.00 52.47 6 NANDOM 2,660,113.58 477,967.94 452,854.38 464,936.53 1,395,758.85 1,264,354.73 52.47 7 SISSALA EAST 2,670,184.68 479,777.51 454,568.87 466,696.76 1,401,043.14 1,269,141.54 52.47 8 SISSALA WEST 2,722,593.26 489,194.26 463,490.84 475,856.77 1,428,541.87 1,294,051.39 52.47 9 WA EAST 3,165,156.22 568,713.76 538,832.20 553,208.24 1,660,754.20 1,504,402.02 52.47 10 WA MUNICIPAL 3,400,675.23 611,031.71 578,926.66 594,372.41 1,784,330.78 1,616,344.45 52.47 11 WA WEST 2,651,385.29 476,399.65 451,368.49 463,410.99 1,391,179.13 1,260,206.16 52.47 TOTAL - GHc 31,413,963.02 5,644,445.91 5,347,873.43 5,490,554.60 16,482,873.94 14,931,089.08

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE VOLTA REGION 1 ADAKLU- 2,701,609.24 485,423.86 459,918.55 472,189.17 1,417,531.58 1,284,077.66 52.47 2 AFADZETO 3,224,457.33 579,368.96 548,927.55 563,572.93 1,691,869.44 1,532,587.89 52.47 3 AGORTIME-ZIOPE 3,142,183.63 564,586.06 534,921.38 549,193.07 1,648,700.51 1,493,483.12 52.47 4 AKATSI NORTH 3,464,395.64 622,480.96 589,774.34 605,509.51 1,817,764.81 1,646,630.83 52.47 5 AKATSI SOUTH 3,778,005.83 678,830.29 643,162.95 660,322.52 1,982,315.76 1,795,690.07 52.47 6 BIAKOYE 2,632,585.90 473,021.78 448,168.10 460,125.22 1,381,315.10 1,251,270.80 52.47 7 CENTRAL TONGU 2,823,936.82 507,403.62 480,743.44 493,569.67 1,481,716.73 1,342,220.09 52.47 8 HO MUNICIPAL 3,610,825.54 648,791.41 614,702.39 631,102.63 1,894,596.43 1,716,229.11 52.47 9 HO WEST 2,642,657.00 474,831.35 449,882.59 461,885.45 1,386,599.39 1,256,057.61 52.47 10 HOHOE MUNICIPAL 3,302,649.84 593,418.55 562,238.94 577,239.47 1,732,896.96 1,569,752.88 52.47 11 JASIKAN 2,621,843.39 471,091.57 446,339.31 458,247.64 1,375,678.52 1,246,164.87 52.47 12 KADJEBI 2,731,954.10 490,876.21 465,084.42 477,492.86 1,433,453.49 1,298,500.61 52.47 13 KETA MUNICIPAL 4,051,939.78 728,050.61 689,797.12 708,200.89 2,126,048.62 1,925,891.16 52.47 14 KETU NORTH 3,610,154.14 648,670.78 614,588.09 630,985.29 1,894,244.16 1,715,909.98 52.47 15 KETU SOUTH MUNICIPAL 3,144,238.24 564,955.23 535,271.15 549,552.18 1,649,778.56 1,494,459.68 52.47 16 KPANDO MUNICIPAL 2,680,927.18 481,707.72 456,397.66 468,574.34 1,406,679.72 1,274,247.46 52.47 17 KRACHI EAST 3,043,506.01 546,855.71 518,122.62 531,946.13 1,596,924.46 1,446,581.55 52.47 18 KRACHI NTSUMURU 2,629,228.86 472,418.59 447,596.60 459,538.47 1,379,553.66 1,249,675.20 52.47 19 KRACHI WEST 3,149,569.10 565,913.08 536,178.67 550,483.91 1,652,575.66 1,496,993.44 52.47 20 NKWANTA 2,870,272.57 515,729.21 488,631.58 501,668.26 1,506,029.05 1,364,243.52 52.47 21 NKWANTA NORTH 3,271,765.13 587,869.20 556,981.17 571,841.42 1,716,691.79 1,555,073.34 52.47 22 NORTH DAYI 2,681,598.59 481,828.36 456,511.96 468,691.69 1,407,032.01 1,274,566.58 52.47 23 NORTH TONGU 2,740,682.39 492,444.51 466,570.31 479,018.40 1,438,033.22 1,302,649.17 52.47 24 SOUTH DAYI 2,690,998.29 483,517.29 458,112.15 470,334.58 1,411,964.02 1,279,034.27 52.47 25 SOUTH TONGU 2,699,726.57 485,085.58 459,598.05 471,860.11 1,416,543.74 1,283,182.83 52.47 TOTAL - GHc 75,941,711.12 13,645,170.49 12,928,221.09 13,273,145.81 39,846,537.39 36,095,173.73

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No MMDA ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

WESTERN REGION 1 AHANTA WEST 2,683,612.81 482,190.27 456,854.86 469,043.74 1,408,088.87 1,275,523.94 52.47 2 AMENFI CENTRAL 2,760,531.76 496,011.03 469,949.44 482,487.69 1,448,448.16 1,312,083.60 52.47 3 AMENFI EAST 2,686,410.13 482,692.89 457,331.07 469,532.66 1,409,556.62 1,276,853.51 52.47 4 AMENFI WEST 2,784,377.04 500,295.54 474,008.83 486,655.38 1,460,959.75 1,323,417.29 52.47 5 AOWIN 2,711,811.90 487,257.07 461,655.44 473,972.39 1,422,884.90 1,288,927.00 52.47 6 BIA EAST 3,332,863.15 598,847.26 567,382.42 582,520.17 1,748,749.85 1,584,113.30 52.47 7 BIA WEST 2,670,856.08 479,898.15 454,683.17 466,814.11 1,401,395.43 1,269,460.65 52.47 8 BIB/ANW/BEK 2,629,228.86 472,418.59 447,596.60 459,538.47 1,379,553.66 1,249,675.20 52.47 9 BODI 3,252,294.34 584,370.70 553,666.48 568,438.30 1,706,475.48 1,545,818.86 52.47 10 ELLEMBELLE 2,679,584.37 481,466.44 456,169.06 468,339.65 1,405,975.15 1,273,609.22 52.47 11 JOMORO 3,164,445.05 568,585.98 538,711.13 553,083.94 1,660,381.05 1,504,064.00 52.47 12 JUABOSO 2,980,374.60 535,512.29 507,375.21 520,911.97 1,563,799.47 1,416,575.13 52.47 13 MPOHOR 3,097,713.79 556,595.74 527,350.89 541,420.60 1,625,367.23 1,472,346.56 52.47 14 NZEMA EAST MUNICIPAL 2,686,123.19 482,641.33 457,282.22 469,482.50 1,409,406.05 1,276,717.14 52.47 15 PRESTEA-HUNI VALLEY 3,468,971.76 623,303.19 590,553.37 606,309.33 1,820,165.89 1,648,805.87 52.47 16 SEFWI AKONTOMBRA 2,647,356.85 475,675.82 450,682.69 462,706.90 1,389,065.41 1,258,291.44 52.47 17 SEFWI WIAWSO 3,291,121.79 591,347.19 560,276.42 575,224.59 1,726,848.20 1,564,273.59 52.47 18 SEKONDI TAKORADI METRO. 4,754,656.20 854,314.36 809,426.67 831,022.16 2,494,763.19 2,259,893.01 52.47 19 SHAMA 2,954,307.86 530,828.63 502,937.64 516,356.01 1,550,122.28 1,404,185.58 52.47 20 SUAMAN 3,363,076.45 604,275.97 572,525.89 587,800.87 1,764,602.73 1,598,473.72 52.47 21 TARKWA NSUEM MUNICIPAL 3,397,318.20 610,428.51 578,355.16 593,785.67 1,782,569.34 1,614,748.86 52.47 22 WASSA EAST 2,631,243.08 472,780.50 447,939.50 459,890.52 1,380,610.52 1,250,632.56 52.47 TOTAL - GHc 66,628,279.25 11,971,737.45 11,342,714.16 11,645,337.62 34,959,789.23 31,668,490.02 APPENDIX A SUMMARY

DACF ALLOCATIONS, DEDUCTIONS AND RELEASES - 2016

1ST QUARTER 2ND QUATER 3RD QUARTER TOTAL % No. REGION ALLOCATION DEDUCTIONS RELEASES RELEASES RELEASES RELEASES RELEASE

1 ASHANTI REGION 95,727,667.09 17,200,301.59 16,296,557.25 16,731,349.14 50,228,207.98 45,499,459.11 52.47

2 BRONG AHAFO REGION 81,059,426.77 14,564,719.19 13,799,454.53 14,167,623.74 42,531,797.46 38,527,629.31 52.47

3 CENTRAL REGION 63,461,121.86 11,402,664.13 10,803,541.31 11,091,779.63 33,297,985.07 30,163,136.79 52.47

4 EASTERN REGION 76,263,434.57 13,702,977.59 12,982,990.88 13,329,376.84 40,015,345.31 36,248,089.26 52.47

5 GREATER ACCRA REGION 63,641,247.77 11,435,029.06 10,834,205.73 11,123,262.15 33,392,496.94 30,248,750.83 52.47

6 NORTHERN REGION 77,932,240.78 14,002,827.89 13,267,086.34 13,621,051.98 40,890,966.21 37,041,274.57 52.47

7 UPPER EAST REGION 39,337,665.77 7,068,173.10 6,696,794.68 6,875,464.91 20,640,432.69 18,697,233.08 52.47

8 UPPER WEST REGION 31,413,963.02 5,644,445.91 5,347,873.43 5,490,554.60 16,482,873.94 14,931,089.08 52.47

9 VOLTA REGION 75,941,711.12 13,645,170.49 12,928,221.09 13,273,145.81 39,846,537.39 36,095,173.73 52.47

10 WESTERN REGION 66,628,279.25 11,971,737.45 11,342,714.16 11,645,337.62 34,959,789.23 31,668,490.02 52.47

GREAND TOTAL - GHc 671,406,758.00 120,638,046.40 114,299,439.40 117,348,946.42 352,286,432.22 319,120,325.78 52.47 APPENDIX B

DISTRICT ASSEMBLIES' COMMON FUND- TABLLE OF IRREGULARITIES 2016

NATIONAL SUMMARY OF IRREGULARITIES

GREATER UPPER IRREGULARITY ASHANTI BRONG CENTRAL EASTERN NORTHERN UPPER WEST VOLTA WESTERN Total ACCRA EAST No. of MMDAs CASH IRREGULARITIES GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Unsupported payments 1,899,826.19 742,371.12 1,214,992.41 2,025,372.51 619,300.00 11,629,909.16 1,102,070.36 102,941.46 1,136,178.63 573,445.69 21,046,407.53 93

Unretired imprest 43,908.00 9,545.00 291,895.10 21,799.00 82,594.50 22,696.00 67,864.00 540,301.60 18

Unaccounted funds 52,703.00 100,160.00 221,889.50 152,420.27 5,922.00 10,200.00 543,294.77 13

Assistance to needy students not acknowledged 169,749.00 100,258.00 26,001.48 7,000.00 20,350.00 323,358.48 9

Over deductions made by the DACF Administrator 107,914.36 107,914.36 1

Judgement debt paid 95,849.74 120,074.82 215,924.56 2

Unbudgeted expenditure 262,500.00 485,806.80 748,306.80 3

Unpresented payment vouchers 263,492.38 335,576.30 15,242.51 553,299.33 209,379.15 36,850.00 1,413,839.67 11

Unjustifiable DACF deductions 1,755,618.65 394,599.05 731,372.38 843,659.54 3,725,249.62 16

Misapplication of funds 646,322.67 56,044.00 31,878.57 67,240.68 172,525.51 526,547.85 1,500,559.28 12

Failure to allocate funds to sub-district structures 66,152.89 66,152.89 2

Unreceipted payment 507,619.88 176,118.41 683,738.29 8 Lack of evidence to justify payment of levelling refuse 43,295.00 43,295.00 1 dump Payment of compensation for encroaching and 20,248.70 20,248.70 1 unlawful damage to property Non-prudent expenditures 7,710.00 49,073.00 56,783.00 2 Acquisition of plot of land without obtaining any title 140,000.00 20,000.00 160,000.00 2 deed Uncollected revenue 3,480.00 3,480.00 1 Failure to locate/ obtain title to heavy duty equipment 60,000.00 60,000.00 1 procured Failure to repay inter-account borrowings 34,157.00 10,000.00 44,157.00 3

Pre-financing of project work before execution 180,000.00 180,000.00 2

Disbursement without the MP’s approval 305,037.06 305,037.06 1

Overpayment 25,200.00 6,555.00 31,755.00 2

Indebtedness of Zoomlion Ghana to an Assembly 238,000.00 238,000.00 1 Payment without expenditure warrant 626,655.59 626,655.59 1

Sub total 2,632,450.29 4,094,767.51 2,598,811.62 3,441,429.01 668,373.00 12,082,671.24 2,075,380.64 523,464.12 3,180,692.08 1,386,419.69 32,684,459.20

GREATER UPPER IRREGULARITY ASHANTI BRONG CENTRAL EASTERN NORTHERN UPPER WEST VOLTA WESTERN Total ACCRA EAST No. of MMDAs CONTRACT IRREGULARITIES GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Abandoned projects 608,684.95 360,759.90 5,581,616.09 479,512.26 7,030,573.20 11

Unjustifiable payment of contingency 45,318.94 45,318.94 1

Unapproved variations 314,089.16 56,500.00 18,517.80 132,608.55 521,715.51 6

Completed projects not in use 657,813.80 300,835.48 426,249.17 2,292,700.54 49,076.25 3,726,675.24 12

Payment for a contract not executed 50,393.70 29,982.98 80,376.68 3

Contract payments not recorded in contract register 569,613.66 569,613.66 2

Delayed/unexecuted/ poorly executed projects 1,362,788.03 1,871,451.60 2,257,293.40 2,010,786.48 335,490.64 1,387,065.97 9,224,876.12 19

Payment made without monitoring reports 199,437.02 78,310.27 30,500.00 308,247.29 4 Completed project without electrical fittings/ toilet 419,152.40 161,444.84 580,597.24 2 facility Payment of mobilization fee without receipt 21,666.60 21,666.60 1

Overpayment of contract sum 15,422.24 225,354.63 99,818.06 11,880.10 352,475.03 4

Maintenance and repairs without works orders 105,993.40 673,488.60 443,470.22 33,963.30 51,607.13 111,738.35 148,188.23 1,568,449.23 18

Payments for non-existing projects 150,776.90 150,776.90 2

Failure to maintain retention deposit register 156,720.46 156,720.46 1

Payment of preliminaries without justification 37,373.10 37,373.10 1

Projects not carried out to specification 8,223.53 8,223.53 1 Non submission of contract documents/ No contract 160,000.00 892,609.59 1,052,609.59 2 agreement Projects not in Annual Action Plan 342,248.00 670,267.38 1,012,515.38 3

Failure to recover mobilization 26,505.00 26,505.00 1

Failure to withhold retention 3,544.90 3,544.90 1

Failure to fully execute portions of contract 33,863.00 33,863.00 1

Loss of funds arising from termination of contracts 34,348.89 34,348.89 1

Construction of Mandatory Projects 104,323.56 104,323.56 1 Completed projects not fully paid for 47,581.05 47,581.05 1

Award of contracts without tendering 140,705.87 140,705.87 1

Sub total 4,056,284.74 3,056,601.33 673,488.60 3,693,984.32 670,267.38 33,963.30 2,270,571.84 1,305,750.29 8,809,949.83 2,268,814.34 26,839,675.97

GREATER UPPER IRREGULARITY ASHANTI BRONG CENTRAL EASTERN NORTHERN UPPER WEST VOLTA WESTERN Total ACCRA EAST No. of MMDAs PROCUREMENT/STORE IRREGULARITES GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

DACF deductions for items/services not supplied 745,200.00 745,200.00 2

Uncompetitive procurement 386,415.06 163,564.57 480,283.93 1,165,046.23 212,856.15 113,866.98 70,274.32 48,671.98 2,640,979.22 24

Unaccounted fuel 303,300.04 121,877.00 68,451.27 65,287.45 264,109.63 270,922.59 1,093,947.98 16

Unaccounted stores 407,732.69 56,354.50 158,688.91 622,776.10 21

Purchases from non-VAT registered entities 555,754.20 995,113.29 202,148.70 446,494.36 12,518.00 232,173.33 247,578.54 250,288.32 2,942,068.74 36

Procurement outside approved budget/ procurement 242,885.15 520,762.09 763,647.24 2 plan

Failure to account for items distributed 730,069.89 81,816.50 49,405.00 161,146.00 1,022,437.39 7

Payment for single sourced contract not executed 480,000.00 480,000.00 2

Supplies not delivered 25,644.00 4,500.00 30,144.00 3

Sub total 2,963,624.34 1,306,198.86 682,432.63 2,169,541.05 225,374.15 235,508.93 306,947.65 313,514.63 1,407,770.11 730,288.32 10,341,200.67

TAX IRREGULARITIES

Failure to remit withheld tax 1,292.50 2,173.65 34,986.37 20,630.83 5,341.62 28,264.83 8,254.13 57,203.17 158,147.10 18

Failure to withhold taxes 31,981.93 9,077.66 47,714.45 4,966.78 6,011.08 4,809.90 9,631.05 8,208.38 122,401.23 26

Payment of tax penalty imposed 1,194.68 1,194.68 1

Payment of VAT without VAT receipt 13,207.20 13,359.92 26,567.12 7

Sub total 1,292.50 34,155.58 9,077.66 83,895.50 25,597.61 24,559.90 33,074.73 9,631.05 29,822.43 57,203.17 308,310.13

Grand total 9,653,651.87 8,491,723.28 3,963,810.51 9,388,849.88 1,589,612.14 12,376,703.37 4,685,974.86 2,152,360.09 13,428,234.45 4,442,725.52 70,173,645.97 APPENDIX C

ASHANTI REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT/STORE IRREGULARITIES TAX IRR.

Payment for Contract Failure to Procurement of MPs assistance Over deductions Unjustifiable Payment for Payment Completed Payment of DACF Purchases from Execution of repairs without Completed payments not Delayed Overpayment account for items from source Failure to No. Assembly Unsupported Unretired Unaccounted to needy made by the Judgement Unbudgeted Abandoned payment of a contract made without project without mobilization deductions for Uncompetitive Unaccounted non-VAT contracts not in work orders and projects not recorded in completion of of contract items issued in deductions not remit payments imprest Funds students not DACF debt paid expenditure projects contingency to not monitoring electrical fee without items/services procurement fuel registered procurement performance in use contract projects sum bulk to Hon. accounted for withheld tax acknowledged Administrator contractors executed reports fittings receipt not supplied entities plan certificates register MPs before distribution

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Adansi South 541,977.56 192,987.02 121,941.68 50,000.00

2 Afigya Kwabre 8,196.70 37,218.00

3 Amansie West 107,600.00 21,666.60 15,422.24

4 Amansie Central 237,383.14 192,719.07 37,914.38

5 Asante Akim Central 119,222.00 28,615.00 74,593.40 6,450.00 26,920.00

6 Asante Akim South 421,831.04 103,216.00 253,300.04 101,866.70

7 Asokore 50,393.70

8 Atwima Mponua 333,462.60 97,802.00

9 Atwima Nwabiagya 262,500.00 371,301.81

10 Bekwai 27,384.00 24,931.00 376,894.59 487,918.00

11 Bosom Freho 20,222.40

12 Ejisu-Juaben 11,652.00 81,391.00

13 Ejura Sekyeredumase 635,273.96

14 Kumasi 43,908.00 107,914.36

15 Mampong 97,913.17 242,885.15

16 Offinso 45,212.90 31,400.00 519,546.00 548,209.90 419,152.40 414,000.00 85,212.00

17 Offinso North 162,951.45 331,200.00 123,343.00 198,896.00 242,151.89

18 Sekyere Afram Plains 130,921.84 24,088.00 23,595.00 1,292.50

19 Sekyere East 30,219.00 45,318.94

20 Sekyere Kumawu 10,952.00 95,849.74 138,267.80 21,462.50

21 Sekyere South 35,620.70

Total 1,899,826.19 43,908.00 52,703.00 169,749.00 107,914.36 95,849.74 262,500.00 608,684.95 105,993.40 45,318.94 657,813.80 50,393.70 569,613.66 1,362,788.03 199,437.02 419,152.40 21,666.60 15,422.24 745,200.00 386,415.06 303,300.04 555,754.20 242,885.15 487,918.00 242,151.89 1,292.50

No. of MMDAs 14 1 2 3 1 1 1 2 2 1 2 1 2 4 2 1 1 1 2 4 2 7 1 1 1 1 APPENDIX C

BRONG AHAFO REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT/STORE IRREGULARITIES TAX IRR.

Failure to Failure to Payment of Purchases from Failure to Unpresented Unjustified Failure to allocate Payments for maintain Completed Delayed Supplies Failure to No. Assembly Unsupported obtain Duplicate Misapplication Unretired Unbudgeted Overpayment preliminaries Unapproved Uncompetitive Unaccounted non VAT remit payment DACF funds to sub- non-existing retention projects not completion of short withhold payments receipts from payments of funds Imprest expenditure of contracts without variation procurement fuel registered withheld vouchers deductions district structures projects deposit in use projects delivered tax students justification entities tax register

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Asunafo North 29,042.87 692,663.34 103,779.37

2 Asunafo South 291,309.25 127,650.00 33,838.45 37,373.10 77,948.82

3 Asutifi North 192,512.40 85,252.02

4 Asutifi South 156,720.46

5 Atebubu Amantin 134,196.90

6 Banda District 31,612.00 7,800.00 310,500.00 161,417.50 16,580.00 100,146.31 66,512.00 116,946.39 2,028.17

7 Berekum 75,584.47

8 Dormaa Central 314,985.08 28,036.69 225,354.63 213,942.85 236,580.00

9 Dormaa East 152,627.16

10 Dormaa West 77,350.00 118,413.69 50,752.00 215,583.46

11 Jaman North 29,300.00

12 Jaman South 7,881.43

13 Kintampo North 5,750.00 2,923.00 8,040.00

14 Kintampo South 6,395.00 25,418.75 16,340.63

15 Nkoranza North 120,750.00

16 Nkoranza South 3,661.35

17 Pru District 65,000.00 3,150.00

18 Sunyani 57,681.00 175,102.05 2,173.65

19 Sunyani West 8,750.00 347,369.12 25,200.00

20 Tain District 72,098.00 134,809.27 82,234.00 1,009.35

21 Tano North 34,241.00 10,224.00 161,000.00 52,442.00 5,410.00

22 Tano South 14,000.00 324,389.30

23 Techiman North 153,025.99 8,942.43

24 Wenchi 61,287.00 10,269.42 532,432.22 38,116.20 950,576.63 60,197.00 20,234.00 368,860.11

Total 742,371.12 263,492.38 100,258.00 1,755,618.65 25,200.00 646,322.67 9,545.00 66,152.89 485,806.80 225,354.63 150,776.90 156,720.46 37,373.10 314,089.16 300,835.48 1,871,451.60 163,564.57 121,877.00 25,644.00 995,113.29 31,981.93 2,173.65

No. of MMDAs 11 3 3 9 1 4 2 2 2 1 2 1 1 2 2 4 2 3 2 7 5 1 APPENDIX C

CENTRAL REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CONTRACT CASH MANAGEMENT IRREGULARITES PROCCUREMENT IRR. TAX IRR. IRR

Financial Lack of Payment of Un-receipted MP assistance to evidence to compensation for Payment for deductions at Common Purchases Withholding No. Assembly Unreceipted Unretired Unsubstantiated needy but justify encroaching and work without Uncompetitive source by Fund not from non- tax not payments imprest payments brilliant payment of unlawful damage certificate of procurement DACF accounted VAT entities deducted students not levelling to property on work done Administrator for acknowledge refuse dump private land

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Abura-Asebu Kwamankese 8,389.00 20,552.00

2 Agona West 14,537.00

3 Ajumako-Enyan-Essiam District 4,242.00

4 Assin South District 20,000.00 216,208.50

5 Awutu Senya 642,959.60

6 Awutu Senya East 206,248.15 422,402.00

7 Cape Coast Metropolitan 457,253.48 200,306.54 394,599.05 26,001.48 100,160.00 43,295.00 20,248.70 117,562.59

8 Effutu Municipal 5,855.56 23,529.25 71,243.64 51,775.72

9 Ekumfi District 20,168.84 11,363.00

10 Gomoa East 604,489.69 6,650.00

11 Gomoa West 23,879.00

12 KEEA 36,437.70 66,424.04 13,310.39 15,091.00 4,163.25

13 Mfantseman 5,928.00

14 Upper Denkyira East 11,016.00 28,253.93 4,913.81

15 Upper Denkyira West 24,752.00 19,500.00

Total 507,519.88 291,895.10 1,214,992.41 394,599.05 26,001.48 100,160.00 43,295.00 20,248.70 673,488.60 202,148.70 480,283.93 9,077.06

No. of MMDAs 5 6 8 1 1 1 1 1 3 4 4 2 APPENDIX C

EASTERN REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES

Acquisition of Contract Delayed/ Non Unsubstantiated Unpresented plot of land Payment of variation Projects not Projects not in Completed unexecuted/ No. Assembly Unsupported Non-prudent Uncollected Unretired Misapplication submission DACF payment without judgement without carried out to Annual Action projects not poorly payments expenditures revenue Imprests of fund of contract deductions vouchers obtaining any debt consent of the specification Plan in use executed documents title deed other party projects GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Akyemansa District 317,407.89 45,750.00 1,343,814.12

2 Asuogyaman District 4,520.00 146,978.10

3 Atiwa District 35,800.00

4 Ayensuano District 3,400.00

5 Birim Central Municipal 78,585.56 160,000.00

6 Birim North District 2,593.23 3,480.00 182,248.00

7 Birim South District 102,656.51 165,600.00 302,969.48

8 Denkyembuor District 187,291.90 10,750.00 195,000.96

9 East Akim 56,044.00

10 Fanteakwa District. 55,570.91

11 Kwaebibirem District 280,853.38 120,074.82

12 Kwahu Afram Plains North 283,810.00 7,710.00

13 Kwahu Afram Plains South

14 Kwahu East District 28,231.00 21,799.00

15 Kwahu South District 16,690.00

16 Kwahu West Municipal 10,774.84 420,402.13

17 Lower Manya Krobo 128,803.95 190,107.67

18 New Juaben 414,000.00

19 Nsawam Adoagyiri 7,130.78 8,223.53

20 Suhum Municipal 5,780.00 151,772.38 140,000.00

21 Upper Manya Krobo 46,074.00

22 Upper West Akim 85,709.79 84,270.11

23 West Akim Municipal 337,538.77 335,576.30

24 Yilo Krobo Municipal 6,150.00 160,000.00

Total 2,025,372.51 731,372.38 335,576.30 7,710.00 140,000.00 3,480.00 21,799.00 120,074.82 56,044.00 56,500.00 8,223.53 160,000.00 342,248.00 426,249.17 2,257,293.40

No. of MMDAs 21 3 1 1 1 1 1 1 1 2 1 1 3 3 4 APPENDIX C EASTERN REGION SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

PROCUREMENT/STORE IRREGULARITIES TAX IRREGULARITIES

Store items issued Purchases from Maintenance and without any Purchases of fuel Non-competitive Non-VAT Failure to remit Tax not Payment of tax No. Assembly Unrecorded stores repairs without corresponding and lubricants tendering registered withheld tax Remitted penalty imposed works orders signed Distribution not accounted for persons Lists GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Akyemansa District 240,000.00 21,105.00 58,649.00 633.15 28,637.54

2 Asuogyaman District 8,759.00

3 Atiwa District 5,800.00 79,135.80 13,738.55 79,817.50

4 Ayensuano District 20,250.00

5 Birim Central Municipal 175,275.00 3,780.00 1,194.68

6 Birim North District 130,040.38 3,901.20

7 Birim South District 384,480.00

8 East Akim 1,999.00 198.75

9 Fanteakwa District. 3,352.70

10 Kwaebibirem District 50,576.85 44,210.06 34,964.88

11 Kwahu Afram Plains North 65,050.48 42,385.00 17,753.75 14,583.27

12 Kwahu Afram Plains South 7,750.00 30,980.00 27,494.00

13 Kwahu East District 22,084.60 32,845.58 10,234.00 556.94 452.20

14 Kwahu South District 24,674.00 22,184.46 2,987.81

15 Kwahu West Municipal 154.12

16 Lower Manya Krobo 40,673.54 167,622.44

17 Nsawam Adoagyiri 41,894.46 5,532.63

18 Suhum Municipal 1,520.00 23,114.99 519.90

19 Upper Manya Krobo 62,832.40

20 Upper West Akim 9,517.90 29,700.00 8,000.00 445.00 364.00

21 West Akim Municipal 160,000.00 137,363.25 286,997.01 8,140.00

22 Yilo Krobo Municipal Total 1,165,046.23 407,732.69 443,470.22 446,494.36 81,816.50 68,451.27 47,714.45 34,986.37 1,194.68

No. of MMDAs 6 14 6 7 2 5 10 4 1 APPENDIX C

GREATER ACCRA REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT PROCUREMENT IRREGULARITIES TAX IRREGULARITIES IRREGULARITIES

Procurement Failure to deal Projects without Withheld No. Assembly Unsupported Non prudence with VAT Failure to executed not alternative taxes not payments use of funds registered withhold tax budgeted for price remitted persons quotations

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Ga Central 49,600.00 670,267.38 10,979.70 4,966.78

2 Ningo Prampram 569,700.00 201,876.45 20,630.83

3 Ga South 49,073.00 12,518.00

Total 619,300.00 49,073.00 670,267.38 212,856.15 12,518.00 20,630.83 4,966.78

No. of MMDAs 2 1 1 2 1 2 1 APPENDIX C

NORTHERN REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CONTRACT TAX CASH MANAGEMENT IRREGULARITIES PROCUREMENT/STORES IRREGULARITES IRR IRREGULARITIES Expenditure in Failure to Failure to locate/ Fuel Procurements excess of Failure to Payments for Payment of produce obtain title to Payment to third purchases without Failure to No. Assembly Unsupported Payments not Unretired required repay inter- repairs works Unaccounted VAT Failure to payment heavy duty parties without not alternative withhold payments accounted for imprest percentage in account without works stores without remit taxes vouchers for equipment authority notes accounted price taxes DACF borrowings orders VAT receipt audit procured for quotations Guidelines

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Bole District 6,316.00

2 Bunkprugu/Yunyo 31,722.00 15,242.51 1,582.31

3 Central Gonja District 20,164.00

4 East Gonja 145,756.50 31,878.57

5 Karaga 50,311.50 3,759.31

6 Mamprugu Moaduri 29,774.00 65,287.45 6,163.59

7 Mion Gonja 175,437.00 27,600.00 90,249.98

8 Nanumba South 8,457.50

9 North Gonja 7,000.00

10 Saboba 17,140.00

11 Sagnarigu District 52,000.00 60,000.00

12 Sawla/Tuna/Kalba 1,133.47

13 Tamale Metropolitan 24,133.00 6,557.00

14 West Gonja 191,501.16 6,819.00

15 West Mamprusi 10,366.00 23,617.00

16 Yendi 11,178,081.00 9,854.50 1,330.00 4,181.08

17 Zabzugu 6,712.00 5,300.00 8,365.80 46,500.00 4,580.14 1,830.00

Total 11,629,909.16 221,889.50 82,594.50 31,878.57 15,242.51 60,000.00 34,157.00 7,000.00 33,963.30 65,287.45 113,866.98 56,354.50 13,207.20 6,011.08 5,341.62

No. of MMDAs 8 3 4 1 1 1 2 1 3 1 2 2 4 2 2 APPENDIX C

UPPER EAST REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT/STORES IRREGULARITIES TAX IRREGULARITIES

Non Payments for Payments Pre-financing Failure to Payments to Purchases Purchases from Misapplication acknowledge Payment vouchers Failure to Overpayment Failure to Payment for vehicle Failure to No. Assembly Unsupported not fully of project recover contractors without Delayed without Non-VAT Failure to of People with ment of not presented for recover for abandoned withhold goods not repairs/mainten remit payments accounted work before advances to inspection and contracts alternative registered withhold tax Disability Fund school fees audit mobilization projects retention supplied ance without withheld tax for execution staff monitoring reports quotations entities paid works orders

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Bawku West 57,245.54 95,577.50 60,000.00 553,299.33 552,174.41 23,683.84

2 Binduri 287,842.48 62,091.68 984,183.47 1,286.94

3 Bolgatanga 24,195.00 936.22

4 Bongo 179,965.64 48,421.34 120,000.00 78,310.27 20,350.00 36,944.53 51,607.13 2,357.83

5 Builsa North 474,428.60 99,818.06

6 Builsa South 5,093.75 5,149.00 26,505.00 4,500.00

7 Garu- Tempane 285,814.45 3,310.00 45,480.00

8 Nabdam 13,382.50 1,967.43 62,949.03 271.68

9 Pusiga 242,596.00 3,544.90 9,162.00 26,777.05 4,538.22

10 Talensi 5,935.00 3,144.00 24,167.79 96,967.25

Total 1,102,070.36 152,420.27 180,000.00 5,149.00 62,091.68 78,310.27 20,350.00 553,299.33 2,010,786.48 26,505.00 99,818.06 3,544.90 70,274.32 232,173.33 4,500.00 51,607.13 4,809.90 28,264.83

No. of MMDAs 9 5 2 1 1 1 1 1 3 1 1 1 3 4 1 1 2 4 APPENDIX C

UPPER WEST REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT IRR. TAX IRR.

Awarded Payment of Borrowing Failure to Distribution of procurement Failure to Unpresented PWDs from People fully Unapproved procured items/ Fuel/ No. Assembly Misapplication Unsupported Unretired Abandoned contracts remit payment without with Disability execute variation of souvenirs Lubricants not of DACF payments imprests projects without any withheld vouchers authority (PWD) portions of contract sum without accounted for signed tax notes Accounts contract documentation Agreements GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Daffiama 9,440.00 107,405.00

2 Jirapa 198,157.14

3 Nadowli 172,525.51 13,529.00 15,000.00 9,631.05

4 Sissala East 54,313.25

5 Sissala West 16,822.75 5,922.00

6 Wa 192,556.40 10,000.00 162,602.76 33,863.00 892,609.59 49,405.00 141,704.63

7 Wa West 48,628.21 18,517.80

Total 172,525.51 102,941.46 209,379.15 5,922.00 22,969.00 10,000.00 360,759.90 33,863.00 18,517.80 892,609.59 49,405.00 264,109.63 9,631.05

No. of MMDAs 1 2 2 1 2 1 2 1 1 1 1 3 1 APPENDIX C

VOLTA REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES

DACF Indebtedness Payment of Contracts Overpayment Loss of funds No. Assembly deductions Unpresented of Zoomlion commitment fee Disbursement awarded Completed Construction Unsubstantiated Misapplication Unretired in items arising from Abandoned not benefited payment Ghana Limited for acquisition of without MP’s without projects not in of Mandatory payment of DACF imprests procured by termination projects from by vouchers to the land without title approval competitive use Projects MP of contracts Assemblies Assembly documents tendering

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Adaklu-Waya 248,400.00 4,500.00 238,000.00 6,555.00 104,323.56

2 Afadzato-South 16,087.00

3 Agotime-Ziope 12,689.46 248,400.00 3,600.00 595,381.35

4 Akatsi South 204,688.83 12,250.00 756,504.43

5 Biakoye 158,292.50 346,859.54

6 Central Tongu 91,955.90

7 Ho Municipal 20,800.00 20,000.00

8 Ho West 7,121.17 652,728.10 282,174.24

9 Hohoe 46,436.29 347,349.09

10 Keta 290,126.60 21,000.00

11 Ketu North 82,909.37 140,705.87 826,057.00

12 Ketu South 458,070.86 3,598,964.00

13 Kpando 305,037.06 34,348.89

14 Krachi East 61,355.82 63,364.00 697,242.00 117,916.42

15 Nkwanta South

16 North Dayi 103,247.98

17 North Tongu 96,594.70

18 South Tongu 12,350.00

Total 1,136,178.63 526,547.85 843,659.54 36,850.00 67,864.00 238,000.00 20,000.00 305,037.06 6,555.00 140,705.87 34,348.89 2,292,700.54 5,581,616.09 104,323.56

No. of MMDAs 12 3 3 3 2 1 1 1 1 1 1 4 5 1 APPENDIX C VOLTA REGION SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CONTRACT IRREGULARITIES PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Construction Purchases Purchases/ Failure to Procurement Failure to Failure to Payments of 3 Unit Defects on 3 Unit Completed from Non- Stores not financial Failure to No. Assembly Delayed invite outside Fuel not Uncompetitive obtain VAT remit without works classroom classrooms block projects not VAT accounted support not withhold project tenders from approved accounted for purchases invoices for withheld orders block without at Abutia-Kpota fully paid for registered for accounted tax Contractors budget VAT paid tax toilet facility suppliers for

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Adaklu-Waya 67,215.15

2 Afadzato-South 47,581.05 27,175.20 4,119.13

3 Agotime-Ziope 100,116.00 32,437.60 37,120.00

4 Akatsi South 53,072.19 92,336.74

5 Biakoye 165,807.56 15,357.00 8,276.18

6 Central Tongu

7 Ho Municipal 80,360.00

8 Ho West 17,308.40 161,444.84 153,651.94

9 Hohoe 181,838.70 48,671.98 43,666.00 2,189.25

10 Keta 9,552.00 1,900.00

11 Ketu North 105,115.03

12 Ketu South 94,429.95

13 Kpando 520,762.09 9,005.57

14 Krachi East

15 Nkwanta South 446,100.00

16 North Dayi 8,254.13

17 North Tongu 4,488.00

18 South Tongu 595.74

Total 111,738.35 161,444.84 153,651.94 181,838.70 47,581.05 446,100.00 520,762.09 247,578.54 270,922.59 158,688.91 48,671.98 161,146.00 13,359.92 8,208.38 8,254.13

No. of MMDAs 2 1 1 1 1 1 1 4 2 5 1 3 3 3 1 APPENDIX C

WESTERN REGION SUMMARY OF IRREGULARITIES ACCORDING TO REGION- 2016

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITES PROCUREMENT IRREGULARITIES TAX IRR

Purchases Proceeds from Payment Payment for Payment for Payment for Overpayment Absence of Completed from non- Failure to Unsupported Unreceipted sale of tender without Abandoned Delayed Unapproved sole souced repairs No. Assembly work not of contract monitoring project not VAT remit payments payment document not expenditure projects Projects variation contract not without executed certificate team report in use registered withheld tax accounted for warrant executed works orders entities

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Bia East 132,608.55

2 Bia West 20,622.98

3 Bibiani/Anhwiaso/Bekwai 19,291.00

4 Ellembelle District 97,290.00

5 Jomoro 10,200.00 240,000.00

6 Prestea/Huni Valley 50,204.00 13,928.41 20,272.18

7 Sefwi Bodi District 205,775.00 53,490.00 398,931.53 464,931.15 11,880.10 30,500.00 23,747.85

8 Sekondi-Takoradi 80,580.73 922,134.82 49,076.25

9 Shama District 102,294.94 108,700.00 230,997.32 240,000.00 148,188.23

10 Suaman District 92,881.75 626,655.59 2,611.36

11 Tarkwa Nsuaem 9,360.00

12 Wasa Amenfi West 25,000.00 10,571.96

Total 573,445.69 176,118.41 10,200.00 626,655.59 29,982.98 479,512.26 1,387,065.97 132,608.55 11,880.10 30,500.00 49,076.25 250,288.32 480,000.00 148,188.23 57,203.35

No. of MMDAs 6 3 1 1 2 2 2 1 1 1 1 2 2 1 4 DDF TRANSFER - 2016 APPENDIX D

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Ashanti Adansi North Fomena 412,037 190,953 602,990 2 Ashanti Adansi South New Edubiase 440,671 213,199 653,869 3 Ashanti Afigya-Kwabre Kodie 470,797 198,946 669,743 4 Ashanti Ahafo Ano North Tepa 454,523 193,546 648,069 5 Ashanti Ahafo Ano South Mankranso 504,699 253,248 757,947 6 Ashanti Amansie Central Jacobu 441,933 183,588 625,521 7 Ashanti Bekwai Municipal Bekwai 413,199 210,416 623,614 8 Ashanti Amansie West Manso Nkwanta 505,445 255,467 760,913 9 Ashanti Asante Akim Central Municipal Konongo 311,588 108,677 420,265 10 Ashanti Asante Akim North Agogo 376,061 72,452 448,513 11 Ashanti Asante Akim South Juaso 502,483 221,491 723,974 12 Ashanti Atwima Kwanwoma Foase 403,046 200,722 603,768 13 Ashanti Atwima Mponua Nyinahin 541,852 229,240 771,093 14 Ashanti Atwima Nwabiagya Nkawie 60,800 248,832 309,632 15 Ashanti Bosome Freho Asiwa 312,829 158,228 471,057 16 Ashanti Bosomtwe Kuntenase 367,445 178,651 546,096 17 Ashanti Ejisu-Juaben Municipal Ejisu 462,581 207,042 669,623 18 Ashanti Ejura Sekyeredumase Municipal Ejura 394,960 231,403 626,363 19 Ashanti Kumas Metropolitan Kumasi 2,036,525 873,182 2,909,707 20 Ashanti Asokore Mampong Municipal Asokore Mampong 791,972 97,020 888,993 21 Ashanti Kwabre East Mamponteng 433,861 187,970 621,831 22 Ashanti Mampong Municipal Mampong 337,670 153,138 490,808 23 Ashanti Obuasi municipal Obuasi 408,957 173,399 582,356 24 Ashanti Offinso municipal Offinso 338,197 168,073 506,270 25 Ashanti Offinso North Akomadan 317,235 150,729 467,963 26 Ashanti Sekyere Kumawu Kumawu 371,137 120,648 491,785 27 Ashanti Sekyere Afram Plains South Drobonso 292,601 120,648 413,249 28 Ashanti Sekyere Central Nsuta 352,062 177,483 529,545 29 Ashanti Sekyere East Effiduase 345,773 191,987 537,761 30 Ashanti Sekyere South Agona Ashanti 444,070 196,616 640,685 TOTAL 13,847,009 6,166,993 20,014,002

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 B. Ahafo Asunafo North Municipal Goaso 457164.5509 218577.9169 675,742 2 B. Ahafo Asunafo South Kukuom 424,590 285,210 709,799 3 B. Ahafo Asutifi North Kenyasi 335,031 123,714 458,745 4 B. Ahafo Asutifi South Hwidiem 354,250 123,714 477,963 5 B. Ahafo Atebubu-Amantin Atebubu 506,519 263,067 769,586 6 B. Ahafo Berekum Municipal Berekum 388,680 - 388,680 7 B. Ahafo Dormaa East Wamfie 281,967 137,156 419,124 8 B. Ahafo Dormaa Central Municipal Dormaa-Ahenkro 385,820 120,470 506,290 9 B. Ahafo Dormaa West Nkran Nkwanta 316,862 80,314 397,175 10 B. Ahafo Jaman North Sampa 391,025 197,650 588,675 11 B. Ahafo Jaman South Drobo 467,538 217,564 685,102 12 B. Ahafo Kintampo North Municipal Kintampo 446,761 343,053 789,814 13 B. Ahafo Kintampo South Jema 465,167 258,359 723,526 14 B. Ahafo Nkoranza North Busunya 394,379 173,205 567,584 15 B. Ahafo Nkoranza South Municipal Nkoranza 464,986 213,727 678,713 16 B. Ahafo Pru Yeji 621,800 298,222 920,021 17 B. Ahafo Sene West Kwame Danso 426,977 268,639 695,616 18 B. Ahafo Sene East Kajaji 417,340 268,639 685,979 19 B. Ahafo Sunyani Municipal Sunyani 373,574 193,609 567,183 20 B. Ahafo Sunyani West Odumase 387,589 183,733 571,322 21 B. Ahafo Tain Nsawkaw 431,857 167,671 599,528 22 B. Ahafo Banda Banda Ahenkro 286,718 167,671 454,388 23 B. Ahafo Tano North Duayaw Nkwanta 366,339 164,309 530,648 24 B. Ahafo Tano South Bechem 371,343 178,677 550,020 25 B. Ahafo Techiman Municipal Techiman 401,744 131,570 533,314 26 B. Ahafo Techiman North Tuobodom 349,803 87,713 437,517 27 B. Ahafo Wenchi Municipal Wenchi 400,436 307,031 707,468 TOTAL 10,916,258 5,173,262 16,089,520

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Central Abura Asebu Kwamankesse Abura Dunkwa 403,709 198,560 602,269 2 Central Agona East Nsaba 332,560 132,836 465,397 3 Central Agona West Municipal Swedru 329,694 138,105 467,799 4 Central Ajumako-Enyan-Essiam Ajumako 445,660 213,475 659,135 5 Central Asikuma Odoben Brakwa Breman Asikuma 377,781 192,252 570,034 6 Central Assin North Municipal Assin Foso 502,785 262,727 765,512 7 Central Assin South Nsuaem Kyekyewere 428,274 197,967 626,241 8 Central Awutu Senya Awutu Breku 332,376 96,613 428,989 9 Central Awutu Senya East Municipal Kasoa 391,617 144,920 536,536 10 Central Cape Coast Metropolitan Cape Coast 357,650 155,734 513,384 11 Central Efutu Municipal Wineba 287,091 126,638 413,728 12 Central Gomoa East Afransi 579,759 - 579,759 13 Central Gomoa West Apam 439,465 217,364 656,828 14 Central Komenda Edina Eguafo Abirem Elmina 367,428 178,653 546,081 15 Central Mfantseman Municipal Saltpond 390,989 134,549 525,538 16 Central Ekumfi Essarkyir 288,736 89,699 378,435 17 Central Twifo Ati-Morkwa Twifo Praso 324,814 100,917 425,731 18 Central Twifi Hemang Lower Denkyira Hemang 371,180 100,917 472,096 19 Central Upper Denkyira East Municipal Dunkwa-on-Offin 301,648 136,699 438,347 20 Central Upper Denkyira West Diaso 311,506 152,725 464,231 TOTAL 7,564,722 2,971,350 10,536,072

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Eastern Akwapim North Municipal Akropong Akwapim 453,133 - 453,133 2 Eastern Nsawam-Adoagyiri Municipal Nsawam 307,612 95,520 403,132 3 Eastern Akwapim South Aburi 304,449 63,680 368,129 4 Eastern Akyemansa Ofoase 408,927 194,968 603,895 5 Eastern Asuogyaman Atimpoku 391,002 167,401 558,403 6 Eastern Atiwa Kwabeng 495,531 235,261 730,792 7 Eastern Birim Central Municipal Akim Oda 417,936 197,306 615,243 8 Eastern Birim North New Abirem 377,584 166,570 544,154 9 Eastern Birim South Akim Swedru 397,756 215,914 613,670 10 Eastern East Akim Municipal Kibi 470,737 214,156 684,893 11 Eastern Fanteakwa Begoro 442,817 226,863 669,680 12 Eastern Kwaebibirem Kade 60,800 142,453 203,253 13 Eastern Denkyembour Akwatia 419,330 142,453 561,784 14 Eastern Kwahu East Abetifi 387,675 181,394 569,069 15 Eastern Kwahu Afram Plains North Donkorkrom 492,570 246,291 738,861 16 Eastern Kwahu Afram Plains South Tease 575,692 246,291 821,983 17 Eastern Kwahu South Mpraeso 342,411 151,637 494,048 18 Eastern Kwahu West Municipal Nkawkaw 361,985 249,127 611,112 19 Eastern Lower Manya Krobo Municipal Odumase Krobo 407,476 - 407,476 20 Eastern New Juaben Municipal Koforidua 383,757 - 383,757 21 Eastern Suhum Municipal Suhum 403,882 131,645 535,527 22 Eastern Ayensuano Coaltar 378,462 131,645 510,106 23 Eastern Upper Manya Krobo Asesewa 311,283 118,857 430,140 24 Eastern West Akim Municipal Asamankese 392,556 150,891 543,447 25 Eastern Upper West Akim Adeiso 445,576 100,594 546,170 26 Eastern Yilo Krobo Municipal Somanya 399,863 151,959 551,822 TOTAL 10,230,803 3,922,878 14,153,681

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 G. Accra Accra Metropolitan Accra 2,249,046 959,036 3,208,082 2 G. Accra La Dade-Kotopon Municipal La 566,439 95,904 662,343 3 G. Accra Adentan Municipal Adentan 267,910 101,072 368,982 4 G. Accra Ashaiman Municipal Ashaiman 377,463 140,670 518,133 5 G. Accra Ada East Ada Foah 350,814 101,475 452,289 6 G. Accra Ada West Sege 354,447 101,475 455,922 7 G. Accra Shai-Osudoku Dodowa 319,340 115,583 434,923 8 G. Accra Ningo-Prampram Prampram 60,800 115,583 176,383 9 G. Accra Ga East Municipal Abokobi 358,372 81,888 440,260 10 G. Accra La Nkwantanang-Madina Municipal Madina 60,800 81,888 142,688 11 G. Accra Ga West Municipal Amasaman 440,311 190,489 630,800 12 G. Accra Ledzokuku-Krowor Municipal Teshie-Nungua 466,760 192,055 658,815 13 G. Accra Tema Metropolitan Tema 464,356 165,049 629,405 14 G. Accra Kpone Katamanso Kpone 405,302 82,525 487,826 15 G. Accra Ga South Municipal Weija 679,722 136,502 816,224 16 G. Accra Ga Central Municipal Sowutuom 302,651 136,502 439,153 TOTAL 7,724,533 2,797,693 10,522,226

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Northern Bole Bole 419,197 324,883 744,080 2 Northern Bunkpurugu-Yunyoo Bunkpurugu 60,800 332,523 393,323 3 Northern Central Gonja Buipe 546,188 494,445 1,040,633 4 Northern Chereponi Chereponi 376,156 188,615 564,771 5 Northern East Gonja Salaga 645,525 403,474 1,048,998 6 Northern East Mamprusi Gambaga 685,063 374,560 1,059,623 7 Northern Gushiegu Gushiegu 640,585 384,737 1,025,322 8 Northern Karaga Karaga 60,800 270,451 331,251 9 Northern Kpandai Kpandai 571,847 364,527 936,374 10 Northern Nanumba North Bimbila 680,234 321,460 1,001,694 11 Northern Nanumba South Wulensi 511,652 250,119 761,771 12 Northern Saboba Saboba 60,800 226,073 286,873 13 Northern Savelugu Nanton Municipal Savelugu 725,466 329,741 1,055,207 14 Northern Sawla-Tuna-Kalba Sawla 579,239 336,077 915,316 15 Northern Tamale Metropolitan Tamale 613,082 271,223 884,304 16 Northern Sagnerigu Sagnerigu 432,099 135,611 567,710 17 Northern Tolon Tolon 422,021 148,979 571,000 18 Northern Kumbungu Kumbungu 334,105 148,979 483,085 19 Northern West Gonja Damango 338,819 231,423 570,243 20 Northern North Gonja Daboya 382,512 231,423 613,935 21 Northern West Mamprusi Walewale 660,302 250,293 910,596 22 Northern Mamprugu-Moagduri Yagaba 413,319 250,293 663,613 23 Northern Yendi Municipal Yendi 560,689 299,434 860,122 24 Northern Mion Sang 483,683 199,622 683,306 25 Northern Zabzugu Zabzugu 445,244 163,715 608,959 26 Northern Tatale Sanguli Tatale 478,623 163,715 642,338 TOTAL 12,128,051 7,096,397 19,224,448 2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 U. East Bawku Municipal Bawku 588,417 227,901 816,317 2 U. East Pusiga Pusiga 502,865 113,950 616,816 3 U. East Binduri Binduri 523,874 113,950 637,824 4 U. East Bawku West Zebilla 623,102 282,224 905,326 5 U. East Bolgatanga Municipal Bolgatanga 634,712 247,970 882,682 6 U. East Bongo Bongo 605,117 220,073 825,191 7 U. East Builsa North Sandema 456,379 156,288 612,667 8 U. East Builsa South Fumbisi 390,696 156,288 546,984 9 U. East Garu-Tempane Garu 807,785 385,448 1,193,233 10 U. East Kassena Nankana Municipal Navrongo 674,271 290,558 964,829 11 U. East Kassena Nankana West Paga 516,515 219,498 736,013 12 U. East Talensi Tongo 474,622 138,102 612,723 13 U. East Nadbdam Nangodi 354,109 138,102 492,211 TOTAL 7,152,463 2,690,352 9,842,815

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 U. West Jirapa Jiripa 607,774 276,065 883,839 2 U. West Lambussie Karni Lambussie 401,234 185,521 586,755 3 U. West Lawra Lawra 427,685 130,217 557,902 4 U. West Nandom Nandom 461,883 130,217 592,100 5 U. West Nadowli-Kaleo Nadowli 407,862 153,965 561,827 6 U. West Daffiama-Bissie-Issa Issa 325,860 153,965 479,826 7 U. West Sissala East Tumu 445,973 335,247 781,220 8 U. West Sissala West Gwollu 401,879 293,141 695,019 9 U. West Wa East Funsi 489,190 252,947 742,137 10 U. West Wa Municipal Wa 629,269 239,031 868,299 11 U. West Wa West Wechiaw 541,273 419,701 960,974 TOTAL 5,139,882 2,570,017 7,709,899

DDF TRANSFER - 2016 APPENDIX D 2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Volta Agortime Ziope Agortime-Kpetoe 316,319 93,549 409,868 2 Volta Adaklu Adaklu Waya 281,975 93,549 375,524 3 Volta Akatsi South Akatsi 480,069 109,776 589,845 4 Volta Akatsi North Ave Dakpa 289,853 109,776 399,629 5 Volta Biakoye Nkonya Ahenkro 362,176 182,666 544,841 6 Volta Ho Municipal Ho 527,806 225,813 753,618 7 Volta Ho West Dzolopuita 423,884 150,542 574,426 8 Volta Hohoe Municipal Hohoe 467,953 179,561 647,514 9 Volta Afadzato South Ve Golokwati 456,499 119,708 576,207 10 Volta Jasikan Jasikan 378,885 179,123 558,008 11 Volta Kadjebi Kadjebi 313,249 150,855 464,104 12 Volta Keta Municipal Keta 463,904 209,608 673,512 13 Volta Ketu North Dzodze 467,999 187,670 655,669 14 Volta Ketu South Denu 623,202 273,998 897,200 15 Volta Krachi East Dambai 531,097 278,493 809,590 16 Volta Krachi West Kete-Krachi 279,985 165,143 445,128 17 Volta Krachi Ntsumuru Chinderi 461,978 165,143 627,121 18 Volta Nkwanta North Kpasa 344,133 223,931 568,064 19 Volta Nkwanta South Nkwanta 551,661 - 551,661 20 Volta Kpando Kpando 60,800 105,902 166,702 21 Volta North Dayi Amfoega 323,474 105,902 429,376 22 Volta Central Tongu Adidome 60,800 129,366 190,166 23 Volta North Tongu Battor Dugama 504,653 129,366 634,019 24 Volta South Dayi Kpeve 290,309 162,772 453,081 25 Volta South Tongu Sogakope 453,651 180,529 634,180 TOTAL 9,716,313 3,912,741 13,629,053

2nd Tranche FOAT Additional FOAT V VI - 50% Allocation No. Region Assembly Capital TOTAL investment & 100% (Investment) - CB - March November 1 Western Ahanta West Agona Nkwanta 436,413 181,517 617,931 2 Western Aowin Enchi 466,274 129,660 595,934 3 Western Suaman Dadieso 278,085 129,660 407,745 4 Western Bia West Essam-Dabiso 413,114 112,660 525,774 5 Western Bia East Adabokrom 269,759 112,660 382,419 6 Western Bibiani Anhwiaso Bekwai Bibiani 459,642 183,532 643,174 7 Western Ellembele Nkroful 399,882 199,064 598,946 8 Western Jomoro Jomoro 516,862 270,711 787,573 9 Western Juabeso Juabeso 331,479 97,077 428,556 10 Western Bodie Bodie 364,401 97,077 461,478 11 Western Wassa East Daboase 418,591 124,835 543,426 12 Western Mpohor Mpohor 307,362 124,835 432,196 13 Western Nzema East Municipal Axim 277,506 144,076 421,582 14 Western Prestea-Huni Valley Bogoso 535,096 211,656 746,752 15 Western Sefwi Akontombra Sefwi Akontombra 374,776 151,753 526,529 16 Western Sefwi Wiawso Municipal Sefwi-Wiaso 536,420 200,763 737,183 17 Western Sekondi-Takoradi Metropolitan Sekondi 735,202 318,190 1,053,392 18 Western Shama Shama 341,111 173,017 514,128 19 Western Tarkwa- Nsuaem Municipal Tarkwa 337,473 240,261 577,734 20 Western Wassa Amenfi East Wassa Akropong 416,568 - 416,568 21 Western Wassa Amenfi West Asankragua 394,086 107,335 501,421 22 Western Wassa Amenfi Central Manso Amenfi 358,665 107,335 466,000 TOTAL 8,968,767 3,417,676 12,386,443

SUMMARY APPENDIX D No. REGION FOAT V & VI (CB) and No. OF INVESTMENT - GHc MMDAs

1 ASHANTI 20,014,002 30 2 BRONG AHAFOR 16,089,520 27

3 CENTRAL 10,536,072 20

4 EASTERN 14,153,681 26 5 GREATER ACCRA 10,522,226 16

6 NORTHERN 19,224,448 26 7 UPPER EAST 9,842,815 13

8 UPPER WEST 7,709,899 11

9 VOLTA 13,629,053 25

10 WESTERN 12,386,443 22

GRAND TOTAL 134,108,160 216

APPENDIX E

DISTRICT DEVELOPMENT FACILITY- TABLE OF IRREGULARITIES

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT IRREGULARITIES TAX IRR.

Failure to sign Payment for Payments to Payments for Contract Abandoned/ Purchases No. Assembly activities without Failure to contractors Completed Variation Withholding Unbudgeted Unsupported Payments not Payments for Unretired contracts without Agreements/ pooly/ Overpayment of Uncompetitive Stores from non- activity execute portion without pre- projects not in order without taxes not expenditure payments accounted for no work done imprest- monitoring/ produce delayed contract sum procurements accounted for VAT performance of a contract qualification use details deducted evaluation reports contract projects suppliers reports certificates document BRONG HAHFO REGION GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Asunafo South 822,085.66 2 Asunafo South District 63,592.86 3 Asutifi North 668,301.94 36,452.00 4 Atebubu Amantin 33,778.87 5 Banda District 4,335.00 51,063.83 6 Berekum 2,317.93 7 Dormaa West 11,878.35 8 Kintampo South 39,750.00 9 Nkoranza South 33,954.29 10 Pru District 6,973.00 11 Sunyani West 57,857.00 12 Tain District 418,471.54 666,162.04 692,590.43 13 Tano South 72,000.00 14 Techiman North 30,000.00 15 Wenchi 309,168.69 849,816.64 27,501.54 Total 72,000.00 316,141.69 39,750.00 418,471.54 917,744.50 666,162.04 692,590.43 1,490,387.60 47,975.15 57,857.00 36,452.00 142,519.66 EASTERN REGION 1 Akyemmansa 45,273.39 2 Atiwa 31,127.00 3 Birim North 773,090.30 4 Birim South 109,785.48 5 Fanteakwa 596.70 6 Nsawam Adoagyri 54,283.40 254,007.00 Total 76,400.39 - - - - - 937,159.18 254,007.00 596.70 - - - NORTHERN REGION Zabzugu 99,500.00 Bole 8,491.50 Central Gonja 149,595.60 East Gonja 607,650.00 720,141.85 Nanumba North 38,363.00 West Gonja 292,675.94 Total 400,667.44 - 607,650.00 38,363.00 149,595.60 - - 720,141.85 ------UPPER EAST REGION Builsa North 64,280.39 491,574.94 Builsa South 98,944.00 34,483.89 Garu Tempane 117,000.00 Total - 163,224.39 34,483.89 ------491,574.94 117,000.00 - - - - VOLTA REGION 1 Afadzato South 1,021.41 2 Hohoe 7,470.00 493.00 3 Keta 6,000.00 4 Krachi East 19,400.00 16,000.00 57,668.67 10,000.00 5 North Dayi 55,900.00 Total 69,370.00 - - - 19,400.00 - 16,000.00 - - 57,668.67 - - 10,000.00 - - - 1,514.41

Grand total 72,000.00 1,025,803.91 74,233.89 607,650.00 38,363.00 19,400.00 568,067.14 933,744.50 666,162.04 1,412,732.28 2,976,790.39 371,007.00 48,571.85 10,000.00 57,857.00 36,452.00 142,519.66 1,514.41 Mission Statement

The Ghana Audit Service exists

To promote

· good governance in the areas of transparency, accountability and probity in the public financial

management system of Ghana

y auditing B

· to recognized international auditing standards, the management of public resources

And

· reporting to Parliame nt