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 2013

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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 2013

TABLE OF CONTENTS Paragraph Page Transmittal letter - i-ii

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

PART II Summary of findings and recommendations 5-16 3-6

PART III Details of findings and recommendations Ashanti Region 17-64 7-14 Brong Ahafo Region 65-128 15-25 129-156 26-30 157-213 31-40 Greater Region 214-244 41-45 Northern Region 245-302 46-55 Upper East Region 303-333 56-61 Upper West Region 334-373 62-67 374-461 68-81 Western Region 462-492 82-87

PART IV District Development Facility 493-553 88-98

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 2013 Appendices

District Assemblies’ Common Fund Allocations - 2013 Appendix ‘A’

Summary of Cash, Contract, Procurement, Store and Tax irregularities – 2013 Appendix ‘B’

Table of Irregularities of each MMDA - 2013 Appendix ‘C’

Details of District Development Facility (DDF) allocated to MMDAs - 2013 Appendix ‘D’

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 2013 TRANSMITTAL LETTER

My Ref. No. AG. 01/109/Vol.2/72 Office of the Auditor-General Ministries Block ‘O’ P. O. Box M 96 Accra

21 July 2014

Tel. No. (0302) 662493 Fax (0302) 675496

Dear Honourable Speaker,

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 2013

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 for the financial year covering 1 January to 31 December 2013. This report is supplementary to my main report on the operations of the Metropolitan, Municipal and District Assemblies (MMDAs) covering the same financial year.

2. The report covers the management and utilisation of the District Assemblies’ Common Fund (DACF) and the District Development Facility (DDF) which were released for development programmes of the MMDAs. The report is derived from unresolved and outstanding matters raised in management letters issued by my office during the 2013 financial year and highlights the significant cases and issues arising out of the routine and special audits carried out under my direction and supervision.

3. The outstanding and unresolved issues are attributable to deficiencies and weaknesses in internal controls in the Assemblies’ operations. Weaknesses such as non-compliance with existing legislative framework and instruments, managerial lapses and weak monitoring procedures at both the ministerial, legislative and administrative levels of the Assemblies were pervasive as evidenced in the management letters.

4. The deficiencies noted in the operations of the Assemblies created avenues for some officials to mismanage the funds and resources of the Assemblies to a financial

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 2013 value of approximately GH¢28,536,877.56 during the year under review. The lapses and deficiencies were identified in transactions such as cash management which repeatedly recorded payment cycle irregularities, unsubstantiated payments and misapplication of funds. I also noted procurement, store and contract irregularities in the transactions of some Assemblies as well as tax irregularities all of which have been summarised and consolidated in this report.

5. I had in my previous reports 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 in my audit reports and management letters. I had further recommended that punitive actions should be taken against managements of Assemblies which indulged in the mismanagement of resources placed at their disposal.

6. However, I wish to reluctantly conclude that the increased and widespread instances of malfeasance and mismanagement of the finances and resources of the Assemblies by public officials as portrayed in my current report under review may be indicative that the Ministry has not significantly implemented the admonitions and recommendations in my previous reports.

7. I once again appeal to the Minister to use his good offices to ensure that the recommendations in my reports are implemented to the letter by responsible officials in order to improve and raise the standards of financial administration in the Assemblies and forestall the financial and material losses which result from these anomalies and control weaknesses.

8. I wish to express my profound gratitude to the Chief Executive Officers of the respective MMDAs and their staff for the co-operation and support they gave to my field officers who carried out the field audits.

9. I also acknowledge the immense contributions made by my staff towards the production of this report. Yours faithfully

RICHARD Q. QUARTEY AUDITOR-GENERAL THE HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE, ACCRA.

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 2013 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 2013

PART I

MANDATE, SCOPE AND OBJECTIVES

Introduction As statutorily required by Article 187(2) and 253 of the 1992 Constitution and 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) covering the period 1 January to 31 December 2013.

2. Significant matters that came to light during interim and final audits conducted in the year under review provided the materials and facts for this report. The issues raised and findings noted during the audits were formally discussed with the managements of the Assemblies whose comments and responses have been appropriately considered in this report. Observations commented on in this report are only those that came to 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:

a) the accounts have been properly kept; b) 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; c) monies have been expended for the purposes for which they were appropriated and expenditures made as authorised; d) essential records are maintained and the rules and procedures applied are sufficient to safeguard and control Assemblies’ assets; and

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 1 and Other Statutory Funds for the year ended 31 December 2013 e) programmes and activities of the Assemblies have been undertaken with due regard to economy, efficiency and effectiveness in relation to the resources utilised and results achieved.

4. My audits also ascertained the extent of compliance with applicable laws, regulations and guidelines. These included the Financial Administration Act (FAA) 2003, (Act 654), Financial Administration Regulation (FAR) 2004 (LI 1802), the Financial Memoranda for District Assemblies (FM), the Public Procurement Act (PPA) 2003, (Act 663), Guidelines on the Utilisation of the District Assemblies’ Common Fund, the HIPC Fund and the Local Government Act, 1993 (Act 462).

2 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 2013 PART II

Summary of key findings and recommendations

Introduction 5. My report on the management and utilisation of Common Fund and Other Statutory Funds for the 2013 financial year shows that irregularities noted and reported on in previous years continue unabated. The operations of most of the Assemblies were characterised by flagrant violations of rules, regulations, policies, procedures, directives and legal instruments which had been introduced to ensure effective and efficient management of resources placed at the disposal of the Assemblies. As a result, my management letters and annual audit reports, the contents of which formed the basis of this report, have divulged recurring weaknesses in controls and lapses in operational areas such as cash management, contract administration, procurement and stores management and tax administration.

6. In my view, the persistent flouting of rules and regulations in the management of resources held by the Assemblies is due mainly to lack of interest and dedication to duties and responsibilities exhibited by the Ministry of Local Government and Rural Development (MLGRD) and managements of the MMDAs towards the implementation and enforcement of my audit recommendations. I reiterate my previous recommendation to the MLGRD to, as a matter of urgency, put in appropriate structures to ensure effective supervision, monitoring and enforcement of existing statutory and regulatory frameworks, together with imposition of sanctions.

7. A summary of key audit findings identified and recommendations made has been provided in the succeeding paragraphs. I have attached as Appendix ‘A’ to this report, details of Common Fund allocations to the individual Assemblies together with statutory and other deductions made and the net balance for development programmes and once again recommend transparency in the utilisation of the source deductions by the ADACF. Appendix ‘B’ provides a summary on regional basis of irregularities highlighted in this report, whilst Appendix ‘C’ shows irregularities of each MMDA. Appendix ‘D’ details the DDF allocated to each beneficiary Assembly in 2013.

Cash irregularities – GH¢19.59 million 8. The 216 MMDAs covered in this report recorded cash irregularities totalling GH¢19,594,152.87 during the year under review. The identified cash irregularities are classified as follows:

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 3 and Other Statutory Funds for the year ended 31 December 2013 Cash irregularities Irregularities Amount (GH¢) No. of MMDAs Unsubstantiated payments 3,250,777.68 72 Unreceipted deductions by ADACF 2,381,544.86 13 MP’s Common Fund irregularities 242,136.57 8 Payment vouchers not pre-audited 2,575,817.27 18 Overdue loans/advance 317,350.72 5 Payment for judgement debt 100,479.00 2 Unapproved loan/overdraft 106,793.14 3 PWD CF irregularities 76,029.28 3 Unsubstantiated deductions by ADACF 7,436,950.61 34 Unretired imprest 492,907.15 21 Payments unaccounted for 31,217.00 2 Payments without warrants 458,605.80 6 Unpresented payment vouchers 437,251.92 9 Misapplication of funds 1,464,197.52 25 Unapproved/unauthorised payments 191,094.00 2 HIV/AIDS and malaria irregularities 4,055.03 1 Unaccounted funds from ADACF 15,000.00 1 Non-payment of Dist. Educ. Fund levy 11,945.32 1 Total 19,594,152.87

9. I urge the affected MMDAs to provide evidence in support of the unsubstantiated expenditures, issue receipts to cover gross funds from the ADACF and obtain receipts for source deductions made by the ADACF and also ensure that PVs are submitted for pre-audit and all overdue advances and loans promptly recovered. I also recommend that management of the Assemblies should request for unsupplied items and services from the ADACF, retire all outstanding imprests, and investigate cases of unauthorised disbursements and misapplication of funds with the view to recovering to chest all the amounts involved. Again, managements of the MMDAs should trace and make available for audit examination the unpresented payment vouchers. Furthermore, officers found culpable should be sanctioned and effective control measures put in place and rigidly enforced to forestall such irregularities in future.

Contract management irregularities – GH¢6.63 million 10. Contract management irregularities noted in the Assemblies audited during the 2013 financial year amounted to GH¢6,628,348.32. The irregularities noted and their corresponding monetary values were as follows:

4 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 2013 Contract management irregularities Irregularities Amount (GH¢) No. of MMDAs Delayed projects 1,391,113.31 3 Payment without certificate/works order 697,850.13 15 Abandoned projects 1,447,466.91 7 Overpayment of contract sum 66,909.67 10 Completed projects not in use 638,848.17 3 Contract register irregularities 758,785.17 8 Failure to submit performance bond 499,641.84 1 Poor contract management 531,152.91 2 Contracts without approval 25,075.50 1 Indebtedness to contractors 183,460.42 1 Unapproved projects/variation 327,607.53 5 Retention irregularities 32,361.10 2 Unjustified contract payments 28,075.66 3 Total 6,628,348.32

11. I recommend to the Assemblies involved to recover all contract overpayments and unjustified payment of contingency, rectify all anomalies in connection with contract processes and procedures and enforce strict adherence to existing rules and regulations to enhance contract management. I also recommend that managements of the Assemblies should ensure provision of amenities inhibiting the use of completed projects and endeavour to complete ongoing projects before embarking on new ones.

Procurement and store irregularities – GH¢2.07 million 12. The Assemblies recorded procurement and store irregularities in the sum of GH¢2,066,606.15 during the year under review. The anomalies were mainly as a result of non-compliance with procurement and store rules and regulations. The irregularities noted and their corresponding monetary values are classified as follows: Procurement and store irregularities Irregularities Amount (GH¢) No. of MMDAs Uncompetitive procurement 937,831.18 30 Stores unaccounted for 524,140.83 28 Fuel unaccounted for 234.025.75 16 Stores issued without approval 8,045.18 1 Repairs without works order 125,893.41 8 Unauthorised procurement 16,381.00 1 Purchases not supplied 8,754.50 1 Asset register/embossment irregularities 211,534.30 3 Total 2,066,606.15

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 5 and Other Statutory Funds for the year ended 31 December 2013 13. I urge management of the Assemblies to ensure strict compliance with the provisions of the Public Procurement Act, desist from pre-financing suppliers and ensure that outstanding supplies are delivered and also account for all store purchases that have not been taken on ledger charge. I further recommend that request for works should always be supported with works order and certificates issued on satisfactory completion of jobs before payments are made.

Tax irregularities – GH¢247,770.22 14. Tax irregularities noted in some Assemblies during the 2013 financial year amounted to GH¢247,770.22. The identified irregularities and their corresponding monetary values are shown below.

Tax irregularities Irregularities Amount (GH¢) No. of MMDAs Withholding tax not deducted 32,457.48 18 Withheld tax not remitted 130,650.69 21 Charging VAT on non-VAT invoices 19,798.63 7 Purchases from non-VAT entities 64,863.42 15 Total 247,770.22

15. I recommend to the Assemblies involved to comply with the provisions of the Financial Administration Act and the Internal Revenue Act by procuring government stores from only Value Added Tax registered persons, deduct withholding tax from payments made for goods and services and promptly remit taxes withheld to the Commissioner-General of GRA to avoid sanctions. I also urge Assemblies involved to obtain VAT invoices covering all VAT payments from the suppliers and service providers.

16. Details of significant findings and recommendations made during the audits of the management of the District Assemblies’ Common Fund and other statutory funds are presented on regional and district basis under Part III of this report which is captioned Management Issues. The result of the audits of the District Development Facility (DDF) is set out in Part IV of this report.

6 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 2013 PART III

MANAGEMENT ISSUES

ASHANTI REGION

Introduction 17. During the 2013 financial year, the 30 Assemblies which operated in the Ashanti Region were allocated a gross amount of GH¢24,304,127.48 as their share of the District Assemblies’ Common Fund (DACF). Out of the total allocation, source deductions totalling GH¢9,629,098.26, which represented an average of 39.6% of the allocations were made. The Assemblies therefore operated with a net receipt of GH¢14,675,029.22 for the year 2013. Appendix ‘A’ attached provides information on the allocations, deductions and the net receipts of each Assembly.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢151,240.21 18. We observed that nine Assemblies failed to support payment vouchers used in disbursing a total amount of GH¢151,240.21 with the relevant documents in violation of Part IX, Section 13 and 14 of the Financial Memoranda which stipulates that payment vouchers shall be receipted with attachments of all relevant records to authenticate payments. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Asante Akim Central Mun. 13,175.00 2. Asante Akim South District 21,500.70 3. Atwima Kwanwoma District 34,900.00 4. Atwima Mponua District 9,640.00 5. Ejisu - Juaben Municipal 26,434.51 6. Ejura Sekyeredumasi Mun. 30,265.00 7. Kwabre East District 3,265.00 8. Offinso North District 7,408.00 9. Offinso South Municipal 4,652.00 Total 151,240.21

19. The practice could result in unauthorized payments. We recommended that management should provide the necessary records to authenticate the payments or the

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 7 and Other Statutory Funds for the year ended 31 December 2013 amounts recovered from the Finance Officers and the authorizing officers of the Assemblies involved. We also urged management to sanction the Finance Officers for breach of financial discipline.

Unreceipted deductions by DACF Administrator – GH¢61,200.00 20. The Administrator of District Assemblies Common Fund (ADACF) Circular no DACF/CIR/01/123 of 4 June 2003 enjoins Assemblies to issue receipts for gross allocations before deductions and the Administrator to also issue receipts to cover all deductions made at source. The Guidelines for utilization of District Assemblies Common Fund further provides that “all releases of the DACF allocation should be receipted in gross in the Assembly’s cash book and any other deduction should be treated as expenditure.

21. Contrary to the above, we noted that for the year under review, the ADACF deducted a total amount of GH¢61,200.00 from the Common Fund allocations of Adansi South District Assembly without issuing receipts in acknowledgement of the amounts deducted.

22. We recommended that the Finance Officer should obtain the required receipts from the ADACF to support the deductions made to ensure accurate financial reporting.

Failure to pre-audit payment vouchers – GH¢178,712.93 23. Part XIII Section 1 of the Financial Memoranda requires amongst others that, the Internal Auditor shall pre-audit or cause to be pre-audited, all payment vouchers with all appropriate attachments. Contrary to the above requirement, we noted that four Assemblies failed to submit payment vouchers with a total face value of GH¢178,712.93 to the Internal Audit Unit for pre-auditing. Details are shown in Appendix C.

24. We recommended that the Coordinating Directors and the District Finance Officers should ensure strict compliance of the provisions in the Financial Memoranda to enhance accountability and financial discipline.

Misapplication of funds – GH¢117,133.02 25. Section 87(2) of the Local Government Act, 1993 (Act 462) stipulates that: “for the avoidance of doubt all monies received by a District Assembly from the District Assembly Common Fund shall be expended only on projects which form part of the approved development plan of the Assembly.”

26. We noted however, that management of four Assemblies misapplied Common Fund receipts totalling GH¢117,133.02 on travelling and transport, Independence Day

8 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 2013 activities etc. which did not fall within the guidelines for disbursement of Common Fund receipts. The Assemblies and the amounts involved are shown in Appendix C.

27. We recommended that the Chief Executives, the Co-ordinating Directors and the Finance Officers should ensure the transfer of the amounts from the Internally Generated Fund Accounts to the Common Fund Account.

Unretired imprest – GH¢21,914.00 28. Contrary to Part IX Section 39 of the Financial Memoranda which require standing imprests to be retired at the end of each financial year and special imprest within the period allowed, we observed that Offinso South Municipal (GH¢2,700.00) and Sekyere Kumawu District (GH¢19,214.00) Assemblies failed to ensure that imprests totalling GH¢21,914.00, released to officials of the Assemblies were retired at the close of the financial year.

29. We recommended that management of the Assemblies should recover the amounts from officers involved and this Office informed accordingly.

Unaccounted payments – GH¢4,880.00 30. Our audit of paid vouchers revealed that the Sekyere East Assembly made payments totalling GH¢8,692.00 for various goods and services, however, the supporting documents attached to the payments amounted to GH¢3,812.00 leaving a balance of GH¢4,880.00 unaccounted for.

31. We recommended that management should refund the unaccounted amount of GH¢4,880.00 to chest and this office informed accordingly.

Unpresented payment vouchers – GH¢91,135.56 32. Regulation 1(1) of the FAR, 2004 enjoins public officers who are responsible for the conduct of financial business on behalf of the Government to keep proper records of all transactions and produce the records for inspection when called upon to do so by the Auditor–General.

33. Contrary to the above regulation, the chief cashier in charge of the Kumasi Metropolitan Assembly’s Common Fund failed to produce 12 payment vouchers with a total face value of GH¢91,135.56 for audit examination.

34. We could not as a result, vouch for the authenticity of the payments made. We recommended that management should ensure that the payment vouchers together with relevant supporting documents are presented for audit examination or the amount recovered from the chief cashier in charge of the Common fund.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 9 and Other Statutory Funds for the year ended 31 December 2013 Unsubstantiated DACF deductions – GH¢430,484.71 35. We noted during our audit that the ADACF made deductions totalling GH¢430,484.71 from the Common Fund allocations to the Asante Akim South (GH¢244,484.71), and Afigya Kwabre (GH¢186,000.00) Assemblies for provision of goods and services to the Assemblies, but these were not supplied as at the end of the financial year.

36. Substantial deductions from the Assemblies’ share of the Common Fund by the Administrator without corresponding benefits could render the Assemblies incapable of executing their planned and approved developmental activities. We recommended to the Assemblies involved to demand the goods and services for which the amounts were deducted, from the Administrator or recover the total amount into the Assemblies’ coffers.

Contract irregularities

Payment for work done without performance certificate/works order – GH¢93,448.30 37. Part IX Section 70(a) of the Financial Memoranda provides 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 (contract payment certificate on D.A. Form 22A or retention money payment certificate on D.A. Form 22B), which form shall be attached to the payment voucher.”

38. Our audit disclosed that six Assemblies made payments totalling GH¢93,448.30 for works and services without any report or certificate to confirm works or service carried out.

No. Assembly Amount (GH¢) 1. Asokore Mampong Municipal 25,534.00 2. Asante Akim Central Mun. 40,576.30 3. Bosomtwe District 14,450.00 4. Amansie Central District 1,000.00 5. Offinso North District 6,350.00 6. Sekyere Kumawu District 5,538.00 Total 93,448.30

39. In the absence of the relevant works certificates, we could not confirm whether the Assemblies involved received value for the monies paid. We recommended that management of the Assemblies should ensure that their Works Engineers inspect and

10 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 2013 issue appropriate certificates on the works carried out and this office notified accordingly.

Overpayment of contract sum – GH¢2,472.19 40. Part VI Section 11 of the Financial Memoranda directs heads of expenditure to vouch payments to ensure that the expenditure chargeable is within the approved estimate, the services specified have been performed and the prices charged are either according to contracts or approved scales.

41. We noted, however, that the Kumasi Metropolitan Assembly paid M/S Amankwa Konadu Enterprise a total of GH¢52,202.09 instead of GH¢49,729.90, resulting in an overpayment of GH¢2,472.19 without any approval for variation.

42. We urged management to recover the amount overpaid from M/S Amankwa Konadu Enterprise.

Failure to update contract register – GH¢18, 645.00 43. Our audit revealed that a total amount of GH¢18,645.00 paid on contracts by the Offinso South Municipal Assembly was not entered in the Assembly’s Contract Register.

44. This contravenes Part IX Section 74 of the Financial Memoranda for District Assemblies which states that “a contract register shall be maintained by the Assembly and shall be entered promptly as the details become available.”

45. Failure to update contract registers could result in poor contract management and overpayment of contract sums as total payments made to contractors cannot be readily ascertained. We recommended that management should ensure that the contract register is updated without further delay.

Procurement and Store irregularities

Stores not accounted for – GH¢104,572.50 46. Section 35(2) of the Financial Administration Act, 2003 (Act 654) states that “accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.”

47. Contrary to the above, we noted that various store items purchased by six Assemblies valued at GH¢104,572.50, neither had Store Receipt Vouchers covering them

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 11 and Other Statutory Funds for the year ended 31 December 2013 nor were they taken on ledger charge to provide an audit trail on usage and beneficiaries.

48. Failure to take store purchases on ledger charge could lead to diversion or short delivery of store items. We recommended that management should account for the stores purchased or refund the amount involved to chest.

Fuel not accounted for – GH¢4,783.00 49. Contrary to Section 1604 of the Stores Regulations 1984, and Part XII, Section 60 of the Financial Memoranda for MMDAs, the Ejura-Sekyeredumasi Municipal Assembly failed to record fuel purchased amounting to GH¢4,783.00 in the vehicle log book of the Assembly.

50. This weakness could result in the payment for unsupplied fuel or diversion of fuel to the detriment of the Assembly. We requested management of the Assembly to provide evidence of the receipt and utilization of the fuel purchased, failing which the amount of GH¢4,783.00 should be recovered from the authorising officers of the transaction.

Uncompetitive purchases – GH¢50,324.70 51. In contravention of Section 43(1) of the Public Procurement Act 2003 (Act 663), three Assemblies, namely Ejisu Juaben Municipal (GH¢4,825.00), Atwima Nwabiagya District (GH¢26,161.30) and Kwabre East District (GH¢19,338.40), procured goods and services worth GH¢50,324.70 without obtaining multiple quotations to ensure value for money and transparency.

52. We urged managements of the Assemblies to ensure full compliance with the provisions in the Procurement Act.

Tax irregularities

Purchases from non-VAT registered entities – GH¢8,466.28 53. In contravention of Regulation 183(4) of the FAR, 2004 (LI 1802), which require that government departments should procure goods and services from only VAT registered persons or entities, three Assemblies, namely Asante Akim South (GH¢4,265.94), Atwima Mponua (GH¢2,998.65) and Atwima Nwabiagya (GH¢1,201.69) procured goods and services amounting to GH¢56,441.90 from non-VAT registered entities thereby avoiding the payment of GH¢8,466.28 as VAT to the State.

54. We recommended that management should ensure that all future purchases are made from VAT registered entities.

12 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 2013 Withheld taxes not remitted – GH¢22,181.59 55. Our review of records of Assemblies in the Region disclosed that Kumasi Metropolitan (GH¢20,809.09) and Bosomtwi District (GH¢1,372.50), failed to remit taxes withheld totalling GH¢22,181.59 to the Revenue Authority as at the close of the financial year.

56. The practice constituted an infringement of Section 87(1) of the Internal Revenue Act 2000 (Act 592) which directs that taxes withheld should be remitted to the Commissioner General within 15 days after the end of the month in which the amount was withheld.

57. We urged management of the Assemblies involved to fully remit the Commissioner General with the amounts withheld without further delay.

Payment of VAT without VAT invoices/receipts – GH¢3,503.25 58. Section 19(1) of the VAT Act 1998 (Act 546) provides that “a taxable person shall on making taxable supply of goods or services issue to the customers or the persons supplied, tax invoices in such form as shall be prescribed by regulations.” Additionally, Regulation 19(1) of the VAT Regulations 1998 (L.I. 1646) also directs that a taxable person shall in accordance with Section 19(1) of the Act, on supply of taxable goods or service to a customer issue to the customer a tax invoice similar to “Form C” in the Schedule.

59. In contravention with these requirements, we observed that the Asante Akim Central Municipal Assembly failed to obtain VAT invoices for the payment of VAT amounting to GH¢3,503.25.

60. We recommended to management to obtain VAT invoices covering the VAT payment from the suppliers and service providers or the amount recovered from them.

Failure to withhold tax – GH¢4,634.20 61. Section 84(2) of the Internal Revenue Act 2000 (Act 592) states that “where a resident person pays a sum to another resident person for the supply or use of goods or property of any kind, or for the supply of any services, in respect of a contract between the payee and a resident person other than an individual exceeding fifty currency points, the person making the payment shall withhold tax on the gross amount of the payment at the rate prescribed in Part IV of the First Schedule.

62. Section 16(3) of the Financial Administration Act 2003 (Act 654) also provides that “where taxes are required to be paid in respect of payment for work done, goods supplied or services rendered, whether under a contract or not, the head of the department concerned shall be responsible to ensure that any tax is paid.”

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 13 and Other Statutory Funds for the year ended 31 December 2013 63. Contrary to the above, we noted that four Assemblies failed to withhold 5% tax amounting to GH¢4,634.20 from payments made for goods and services as shown below:

No. Assembly Amount (GH¢) 1. Asokore Mampong Mun. 776.80 2. Adansi South District 590.00 3. Ahafo Ano South District 892.77 4. Sekyere Afram Plains Dist. 2,374.63 Total 4,634.20

64. Failure to withhold tax denies the State of timely inflow of revenue for development. We recommended that management should ensure that taxes are always deducted from eligible payments.

14 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 2013 BRONG AHAFO REGION

MANAGEMENT ISSUES

Introduction 65. In the Brong Ahafo Region, the Administrator of the DACF allocated a gross amount of GH¢20,895,790.80 to the 27 Assemblies which operated in the region during the 2013 financial year. Statutory and other obligatory deductions made from the amount was GH¢7,265,284.60, representing an average of 34.7% of the amount allocated, leaving the Assemblies with a net receipt of GH¢13,630,506.20 to operate with during the year. Appendix ‘A’ attached provides the allocated amounts, deductions made and the net balances.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢257,399.94 66. Regulation 39(2c&d) of the FAR (2004) require the heads of accounts section to control disbursement of funds and ensure that transactions are properly authenticated to show the amounts are due and payable and reject any disbursements that does not meet the requirements.

67. We however, observed that a total of GH¢257,399.94 disbursed by seven Assemblies were not substantiated with the necessary documentation. The details are as follows:

No. Assembly Amount (GH¢) 1. Nkoranza South Municipal 20,613.00 2. Tano North District 22,597.42 3. Sunyani West District 17,552.50 4. Asunafo South District 1,900.00 5. Asunafo North Municipal 9,879.00 6. Wenchi Municipal 83,905.15 7. Dormaa West District 100,952.87 Total 257,399.94

68. Failure to support payments with the relevant receipts and attachments affects the credibility of the payments and could lead to fraud.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 15 and Other Statutory Funds for the year ended 31 December 2013 69. We recommended that the relevant supporting documents should be provided to authenticate the transactions, failing which the amount should be recovered from the authorising officers and their Accountants.

Monies unaccounted for – GH¢26,337.00 70. Part IX, Section 10 of the Financial Memoranda for MMDAs provides that, where applicable, the original invoices and statements shall be attached to a payment voucher. We noted, however, that the Asunafo North Municipal Assembly withdrew a total amount of GH¢56,123.00 for various expenses but could not account for GH¢26,337.00 at the time of the audit.

71. We recommended that the MCE and the MFO should be held liable for the unaccounted amount.

Un-receipted DACF deductions – GH¢871,394.51 72. By circular No. ADACF/C/01/123 dated 4 June 2003 of the Administrator of Common Fund, Finance Officers of MMDAs are required to issue receipts to cover the gross Common Fund allocations, whilst the Administrator also issue receipts for deductions made at source.

73. We noted however, that the ADACF deducted a total amount of GH¢871,394.51 from the Common Fund allocations to four Assemblies but failed to issue receipts in acknowledgement of the amounts deducted. The breakdown is shown below:

Assembly Amount (GH¢) Kintampo South District 199,109.04 Sunyani West District 240,815.35 Dormaa West District 300,811.79 Techiman Municipal 130,658.33 Total 871,394.51

74. We recommended that the Finance Officers should obtain the required receipts from the ADACF to support the deductions made to ensure accurate financial reporting.

Deductions by Common Fund Administrator without justification – GH¢1,190,032.09 75. We noted during our audit that the Administrator of Common Fund withheld a total amount of GH¢1,190,032.09 from the allocation of four Assemblies ostensibly for the provision of services such as fumigation, sanitation, NALAG dues, and training on waste management among others, but these were not carried out. The breakdown is shown below:

16 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 2013 Assemblies Amount (GH¢) Dormaa Municipal 326,289.15 Sunyani Municipal 185,644.42 Berekum Municipal 455,852.02 Techiman North 222,246.50 Total 1,190,032.09

76. The deductions impacted negatively on the Assemblies’ developmental programmes. We therefore urged management to take up the matter with the Administrator of the DACF to ensure that the services are delivered.

Misapplication of funds – GH¢54,630.50 77. Section 87(2) of the Local Government 1993 (Act 462) states that “for the avoidance of doubt all monies received by a District Assembly from District Assemblies Common Fund shall be expended only on projects which form part of the approved development plan for the district.”

78. Contrary to the above, our review of DACF records disclosed that Sunyani West (GH¢24,788.00) and Dormaa Municipal (GH¢29,842.50) District Assemblies disbursed a total amount of GH¢54,630.50 on recurrent expenditure not related to development activities in their districts.

79. We recommended that the Chief Executives and their Finance Officers should ensure the immediate transfer of the amount spent from their Internally Generated Fund account to the Common Fund account.

Unretired imprest – GH¢14,541.30 80. In contravention of the provisions of Part IX Section 39 of the Financial Memoranda which require imprest holders to retire them after the execution of the assignment, three Assemblies, namely Sunyani West (GH¢5,042.30), Asunafo South (GH¢3,271.00) and Jaman South (GH¢6,228.00) District Assemblies granted a total amount of GH¢14,541.30 as imprests to staff but failed to ensure that the imprests were retired after the execution of the activities.

81. We recommended that the Co-ordinating Directors should ensure the immediate retirement of the imprests or convert the amounts into loans and recover from the salaries of the imprest holders.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 17 and Other Statutory Funds for the year ended 31 December 2013 Overdue loans/advances – GH¢207,123.72

i. Unrecovered loans – GH¢200,923.72 82. Regulation 110 of the FAR, 2004 (LI 1802) require heads of departments or the officer to whom the duties of the head of department have been delegated in accordance with regulation 109, to ensure that all advances issued are duly recovered in accordance with the appropriate agreement. Additionally, Part VII Section 43 of the Financial Memoranda for MMDAs also requires that all advances and loans shall be paid in accordance with conditions laid down by the Assemblies when such moneys are to be paid.

83. We observed, however, that as at 31 December 2013, two Assemblies, namely Jaman North District (GH¢49,800.00) and Dormaa Municipal (GH¢151,123.72) failed to recover loans totalling GH¢200,923.72, given to farmers as part of the Government poverty alleviation programme in 2012.

84. Management’s failure to recover the loans has deprived other prospective farmers of the facility. We advised management of the Assemblies to take pragmatic measures in recovering the loans.

ii. Outstanding rent advance – GH¢6,200.00 85. The Dormaa Municipal Assembly in May 2013 rented an apartment at a cost of GH¢7,200.00 for two years for use as a guest house for visitors and paid GH¢6,200.00 as part payment. The Assembly later allocated the apartment to four staff members who are not entitled to free accommodation but failed to enter into any agreement with them to ensure recovery of the amount invested.

86. We recommended that management should immediately enter into agreement with the staff involved and ensure full recovery of the amount paid.

Procurement of software without approval – GH¢11,000.00 87. Part XIV, Section 2 of the Financial Memoranda stipulates that “an Assembly computer software package shall be approved by the Minister responsible for Local Government, the Auditor-General and the Controller and Accountant General.”

88. We noted that Sunyani West District Assembly purchased and maintained an accounting software from DV consult and Daniel Eglan at a cost of GH¢11,000.00 without the approval of the above-named institutions.

89. We recommended that management should ensure strict adherence to the provisions of the Financial Memoranda at all times.

18 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 2013 Payment of judgement debt – GH¢100,479.00 90. Failure on the part of two Assemblies to settle outstanding liabilities after completion and handing over of projects, judgement debts totalling GH¢100,479.00 have been awarded against the Assemblies. They are Jaman North District (GH¢81,667.48) and Tain District (GH¢18,811.52) Assemblies.

91. The lapse was due to the failure of the Assemblies to complete and pay for projects before embarking on new ones whilst management attributed it to the delays in the release of Common Fund allocations.

92. We recommended that management of the Assemblies should endeavour to discharge all obligations on time and also ensure completion and payment of ongoing projects before commencing new projects.

Over deduction by ADACF for computers supplied – GH¢13,390.00 93. Regulation 45 of the Financial Administration Regulation, 2004 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.”

94. Our audit disclosed that the Common Fund Administrator deducted an amount of GH¢58,710.00 from the MP’s fund for computer accessories supplied by Vision Sport Enterprise to the Sunyani West District Assembly. Further review of the suppliers’ invoice and physical checks revealed that 22 laptops, costing GH¢45,320.00 was supplied, hence an over-deduction of GH¢13,390.00 by the Administrator.

95. We recommended that management of the Assembly should draw the attention of the Common Fund Administrator to the anomaly for the refund of the overpayment.

Contract irregularities

Indebtedness to contractors – GH¢183,460.42 96. We noted during our audit that Dormaa East District Assembly awarded five contracts at a total cost of GH¢415,072.37 but managed to pay GH¢231,611.95 with the balance of GH¢183,460.42 outstanding. The contractors have completed the contracts and awaiting payment by the Assembly. Details are provided below:

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 19 and Other Statutory Funds for the year ended 31 December 2013 No. Contractor Project Contract Total Balance Sum payments Outstanding (GH¢) (GH¢) (GH¢) 1. M/S Zudo’s Completion of security 75,609.91 30,914.60 44,695.31 Ltd. post & fencing of DCE’s bungalow 2. M/S No Completion of 1 No. 2- 104,260.75 47,775.37 56,485.38 Problem Cons. Bedroom semi- Ltd. detached staff quarters 3. M/S Kojaben Const. of 1 No.60-unit 89,875.10 51,267.20 38,607.90 Ent. Ltd open market stores and shed. 4. M/S Obrefo Reshaping of 3 No. 35,012.61 Nil 35,012.61 Alawa Co. Ltd. feeder roads 5. M/S Sages Drilling & Construction 110,314.00 101,654.78 8,659.22 Consult. of 10 No Boreholes Total 415,072.37 231,611.95 183,460.42

97. We are of the view that the Assembly awarded the contracts without considering its cash position and this could results in penalty payments should the contractors resort to the courts for redress. We recommended that management should ensure that ongoing projects are completed before commencement of new ones.

Abandoned projects – GH¢346,478.66 98. Paragraph 2 of the DACF guidelines Ref. No. DACF/06-1001-2/72 of 01/04/2011 stipulates clearly that the Assemblies should give priority to all uncompleted/on-going projects, before embarking on new projects.

99. Despite this directive, three Municipal Assemblies, namely: Wenchi (GH¢181,030.83), Dormaa (GH¢59,546.88) Sunyani (GH¢105,900.95) awarded seven contracts, with some dating as far back as November 2009, totalling GH¢346,478.66 and these have remained uncompleted as at the time of the audit.

100. We recommended that management of the Assemblies should endeavour to complete these projects before embarking on new ones.

Completed projects not in use – GH¢370,633.83 101. We noted during our audit that the Dormaa East District Assembly has constructed a bungalow and two bedroom semi-detached bedroom bungalows for the DCE and officials of the Assembly at a total cost of GH¢370,633.83 but have failed to put the projects to use since they were completed in 2012. Details are provided below:

20 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 2013 Project Cost of Year of project completion (GH¢) Construction of DCE’s bungalow 251,636.93 2012 2 bedroom semi-detached bungalow 118,996.90 2012 Total 370,633.83

102. Management explained that electricity has not been extended to the buildings. We noted however that from January 2012 to December 2013, a total amount of GH¢19,945.00 was spent on rented apartments for the DCE, DCD, Finance Officer, Planning Officer and the Budget Analyst, which could have been used in extending electricity to the facilities.

103. We recommended that management should as a matter of urgency, ensure provision of electricity to the buildings to save costs for other development projects.

Unjustified contingency payment – GH¢2,304.84 104. Our audit disclosed that the Jaman South District Assembly paid an amount of GH¢2,304.84 as contingency to Ike Apex Consultancy Services without justification, thereby reviewing the total consultancy fee from GH¢47,548.82 to GH¢49,853.66.

105. We recommended that the amount paid as contingency should be recovered from the firm, failing which the authorising officers should be held liable to refund the money to chest.

Unapproved variation – GH¢168,329.03 106. Part IX, Section 68 of FM states 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 provision is available. Such alterations shall be signed by the Presiding Member of the Assembly or such other person as may be authorised by the Assembly to act on that behalf, and by the Contractor.”

107. Our review of contract payments revealed that the tender committee of two Assemblies varied five contract prices by GH¢168,329.03 without recourse to the Tender Review Board in contravention with the law quoted above. Details are shown below:

Assembly No of Contract sum Variation Total contracts (GH¢) (GH¢) (GH¢) Techiman North Dist. 3 623,008.19 119,955.06 742,963.25 Asunafo North Mun. 2 148,149.49 48,373.97 196,523.46 Total 168,329.03

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 21 and Other Statutory Funds for the year ended 31 December 2013 108. Flagrant disregard of the provision above is a recipe for collusion and misappropriation of funds. We therefore recommended that management of the two Assemblies should submit the variations to the Tender Review Board for review and ratification, failing which members of the Tender Committee responsible for the variations should be held liable for the unjustified payments.

Overpayment to contractors – GH¢4,459.80 109. 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 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 its behalf, and by the contractor. Therefore payments of contracts shall be limited to the contract sum.

110. Our review of contract registers of three Assemblies disclosed that payments for projects executed exceeded the contract sums by GH¢4,459.80. Details are provided below:

Assembly Contractor Project Contract Total Excess sum payments Paid (GH¢) (GH¢) (GH¢) Kintampo M/S Asumah 11 No. school Dist. Cont. works feeding 23,000.00 24,229.00 1,229.00 kitchens Tano M/S B K Nsia Spot South & Co. improvement- 150,000.00 150,866.00 866.00 Dist. Bechem – Bredi road

M/S Ricanda Reshaping of 80,900.00 81,659.80 759.80 Co. Ltd. selected roads- F/Roads Asunafo D. B. Metal & Maintenance of 9,120.00 10,725.00 1,605.00 North cons. Works- street lights Mun. Goaso Total 4,459.80

111. This lapse could be attributed to the failure on the part of the Coordinating Directors and Finance Officers to ensure that all contract payments were properly and promptly documented and scrutinized. We recommended that the total amount of GH¢4,459.80 should be recovered from the contractors and measures put in place to prevent future recurrence.

22 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 2013 Payments without engineers’ certificate – GH¢76,213.75 112. The Asunafo South District (GH¢19,911.89), Wenchi Municipal (GH¢51,301.86) and Berekum Municipal (GH¢5,000.00) Assemblies made payments totalling GH¢76,213.75 from the Common Fund accounts without the required work performance certificates from the Works Engineers contrary to Part IX Section 70(a) of the FM of MMDAs. The Assemblies also failed to provide project inspection reports from the project inspection teams on the contracts.

113. The basis and justification for which the payments were made to the contractors could not be ascertained. We recommended that management of the Assemblies should follow contract procedures at all times to minimise the risk of payments for non-existent contracts. Meanwhile, the payments should be regularised or the amounts involved recovered from the authorising and finance officers to chest.

Stores and procurement irregularities

Uncompetitive procurements – GH¢140,207.91 114. Contrary Section 43(1) of the Public Procurement Act 2003 (Act 663) which require that procurement entities shall request quotations from as many suppliers or contractors as practicable but from at least three different sources, seven Assemblies purchased goods totalling GH¢140,207.91 without alternative quotations from other prospective suppliers. The Assemblies involved are shown below:

No. Assembly Amount (GH¢) 1. Techiman North District 12,875.00 2. Asutifi South District 21,132.00 3. Asunafo North Municipal 37,312.00 4. Techiman Municipal 6,330.00 5. Sunyani Municipal 28,897.00 6. Nkoranza North District 28,577.91 7. Berekum Municipal 5,084.00 Total 140,207.91

115. In the circumstance, we could not ascertain whether the Assemblies obtained value for money in the transactions. We urged the Chief Executives and Coordinating Directors to ensure that procurements are always subjected to competitive quotations in order to obtain maximum benefit from the transactions. We also recommended that the officials involved should be sanctioned accordingly.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 23 and Other Statutory Funds for the year ended 31 December 2013 Fuel purchases not accounted for – GH¢5,047.89 116. Contrary to Part XII, Section 60 of the Financial Memoranda for MMDAs, Techiman North District Assembly procured fuel and lubricants amounting to GH¢5,047.89 but failed to account for the purchase in the Assembly’s vehicle logbook.

117. We were unable to determine the veracity of the amount purported to have been spent on fuel by the Assembly. We urged the DCD/DCE to account for the fuel purchase or refund the amount to chest.

Stores unaccounted for – GH¢40,326.00 118. Section 35(2) of the Financial Administration Act 2003, (Act 654) states “that accountability is discharged when government stores have been consumed in the course of public business and records are available to show that the government stores have been consumed.”

119. We noted during our audit that three Assemblies, namely Techiman North District (GH¢2,280.00), Wenchi Municipal (GH¢30,945.00) and Dormaa Municipal (GH¢7,101.00) Assemblies purchased stores worth GH¢40,326.00, but failed to record the purchases in store ledgers before they were put to use.

120. We recommended that the Coordinating Directors and their Finance Officers should be made to account for the items purchased or the amount involved recovered from them for their negligence.

Tax irregularities

Non-deduction of withholding taxes – GH¢5,078.60 121. Section 84(2) of the Internal Revenue Act 2000, (Act 592) states that “tax shall be withheld from payments made to a resident person for goods and services in excess of fifty currency points.”

122. On the contrary, the Asunafo North (GH¢1,189.30) and Sunyani Municipal (GH¢3,889.30) Assemblies failed to deduct withholding taxes amounting to GH¢5,078.60 from payments made to suppliers of goods and services.

123. We recommended that the Coordinating Directors should ensure that taxes are withheld from payments made within the threshold provided in Act 592.

Tax not remitted – GH¢5,347.81 124. Section 87(1) of the Internal Revenue Act 2000, (Act 592) provides that “a withholding tax agent shall pay to the Commissioner a tax that has been withheld

24 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 2013 within 15 days after the end of the month to which the payment subject to withholding tax is made.”

125. Contrary to the above provision, management of Asunafo South District Assembly failed to remit withholding taxes totalling GH¢5,347.81 to the Commissioner- General of the Ghana Revenue Authority.

126. We recommended that the DCD should ensure that the amount withheld is paid to the Commissioner-General without further delay.

Purchases from non VAT registered entities – GH¢16,136.98 127. The seven Assemblies listed below purchased goods and services worth GH¢107,579.88 from non-VAT registered entities, thereby avoiding the payment of GH¢16,136.98 as VAT to the State.

No. Assembly Amount VAT (GH¢) (GH¢) 1. Sunyani West District 2,337.00 350.55 2. Tain District 2,751.38 412.71 3. Dormaa Municipal 3,598.80 539.82 4. Dormaa West District 92,814.36 13,922.15 5. Techiman Municipal 1,333.57 200.04 6. Sunyani Municipal 2,520.12 378.02 7. Nkoranza North Dist. 2,224.65 333.69 Total 107,579.88 16,136.98

128. The practice violated Section 30(2) of the Financial Administration Act, 2003 (Act 654) which provides that government stores shall be procured from only Value Added Tax registered persons. We recommended that management of the Assemblies should ensure strict adherence to the provisions of the FAA to avoid sanctions.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 25 and Other Statutory Funds for the year ended 31 December 2013 CENTRAL REGION

MANAGEMENT ISSUES

Introduction 129. In 2013, the 20 Assemblies which operated in the Central Region during the financial year were allocated GH¢15,928,267.18 by the Administrator of the Common Fund. Of this, a total of GH¢5,289,812.06 representing 33.2% of the amount was deducted to meet statutory and other obligations of the Assemblies for the year. The Assemblies, therefore, operated with a net receipt of GH¢10,638,455.12 for their programmes. Appendix ‘A’ attached provides information on the allocations, deductions and the net receipts of each Assembly.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢80,525.00 130. We noted that (GH¢27,425.00), Metropolitan (GH¢26,650.00) and Enyan Essiam District (GH¢26,450.00) Assemblies failed to substantiate payments totalling GH¢80,525.00 in contravention of Part IX Section 7 of the Financial Memoranda for District Assemblies which requires that the original of relevant expenditure supporting documents, including invoices and statement of expenditure and receipts should be attached to payment vouchers.

131. We recommended that the relevant supporting documents should be provided for our review, failing which the Coordinating Directors and the Finance Officers should be made to refund the amounts to chest.

Unretired imprest – GH¢5,400.00 132. Regulation 288(1) of FAR 2004 stipulates that “imprest shall be retired at the close of a financial year and any imprest not so retired shall be adjusted to a personal advance account in the name of the imprest holder.”

133. On the contrary, we observed that an amount of GH¢5,400.00 released to Whilham Freeman Goku on PV No. CF06/10/2013 of 10/02/2013 to undertake sanitation activities at Effutu Municipal was not accounted for, neither has the imprest amount adjusted to the personal account of the imprest holder.

134. We recommended that the amount should be accounted for and this office notified for verification or the amount recovered to chest.

26 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 2013 Payment to school feeding caterers without payment certificates – GH¢180,094.00 135. During the period January to October 2013, management of Effutu Municipal Assembly made payments totalling GH¢180,094.00 to Ten School Feeding Caterers. We noted that the payment vouchers were supported with invoices for goods bought by the Caterers but without payment certificates from heads of the beneficiary Schools.

136. As a result we were unable to ascertain the number of days the caterers cooked and the number of children fed. We recommended to the MCD and the MFO to obtain the appropriate certificates from the schools for proper accountability, failing which they should be surcharged with the amounts paid.

Unapproved loan – GH¢50,260.50 137. Part VII Section 88 of the Local Government Act, 1993 (Act 462) states that “a District Assembly may raise loans or obtain overdraft within Ghana of such amounts, from such sources, in such manner for such purposes and upon such conditions as the Local Government Minister in consultation with the Minister responsible for Finance, may approve; except that no approval is required where the loan or overdraft to be raised does not exceed GH¢2,000.00 and the loan or the overdraft does not require a guarantee by the Central Government.”

138. We noted that the Awutu Senya District Assembly on 4 July 2013 took an overdraft facility of GH¢50,260.50 from the NIB, Road, to complete the ground floor of the Office block and move in to avoid ejection from their old rented office. We noted however, that the Assembly did not seek the approval of the Minister before going for the overdraft facility.

139. We recommended to the District Chief Executive to seek retrospective approval for the overdraft facility and ensure compliance with the provisions of the Act in all future transactions.

Unreceipted deductions by DACF Administrator – GH¢69,362.46 140. We noted that the Administrator of Common Fund deducted a total of GH¢62,162.46 from the Common Fund allocation of Ajumako Enyan Essiam District but failed to issue official receipts to cover the deducted amount. This contravenes the Administrator’s directive in circular No. DACF/C/01/123 dated 4 June 2003 which directs all Assemblies to issue receipts to cover gross amount of releases made to Assemblies, while the Administrator in turn issue receipts for all deductions from the allocations to the Assemblies.

141. We also noted that an amount of GH¢7,200.00 was deducted from Awutu Senya East Municipal Assembly Common Fund allocation for fumigation but this activity was not carried out by the Administrator.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 27 and Other Statutory Funds for the year ended 31 December 2013 142. We recommended that management of Ajumako Enyan Essiam District Assembly should obtain receipt from the ADACF whilst the Awutu Senya East Municipal Assembly seek a refund of the amount deducted for the fumigation exercise from the Administrator.

Payment of recurrent expenditure from Common Fund – GH¢190,422.22 143. Section 87(2) of the Local Government Act 1993 (Act 462) states that “for the avoidance of doubt all monies received by a District Assembly from District Assemblies Common Fund shall be expended only on projects which form part of the approved development plan for the District.”

144. We noted however, that the Assembly spent a total of GH¢190,422.22 of their Common Fund on recurrent expenditure. We therefore recommended that management should transfer the amount involved from the IGF Account to the Common Fund Account.

Contract irregularities

Abandoned projects – GH¢639,391.84 145. We noted during project inspection at Effutu Municipal Assembly that an office complex started in 2003, on which the Assembly has spent a total of GH¢589,391.94, has been abandoned since December 2011.

146. In a similar development, the Awutu Senya District Assembly has also abandoned a community centre project started in 2010 with a total incurred expenditure of GH¢49,999.90 because of poor citing and non-involvement of the community in selecting the site.

147. Projects abandoned at advance stages constitute an immense drain on the Assemblies’ resources. We recommended to the Chief Executive of the Assemblies involved to take necessary action to ensure completion of the projects before commencing new ones.

Payment for works without inspection report – GH¢26,345.30 148. Contrary to the requirements of Part IX Section 70(a) of the Financial Memoranda, management of Cape Coast Metropolitan Assembly made payments totalling GH¢26,345.30 to two contractors namely Sameed Electricals and Construction Works, Kwaku Abedu Wilson and National Sports Council without supporting the payment vouchers with certificates of work done from the Works Engineer or other person approved by the Assemblies, neither did the Assemblies provide project inspection reports from the project inspection teams on the contracts.

28 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 2013 149. We recommended that management should follow contract procedures at all times to minimise the risk of payments for non-existent contracts. Meanwhile, the payments should be regularised or the amounts involved recovered from the authorising and finance officers to chest.

Store and procurement irregularities

Unrecorded/unaccounted stores – GH¢33,806.00 150. We noted during the audit of Abura Asebu Kwamankese District that store items worth GH¢33,806.00 were not recorded in the stores ledger. This contravenes Section 16 of the Financial Memoranda for District Assemblies which requires that “all stores received by an Assembly shall be supported by local purchase order or store receipt voucher.”

151. Failure to record store items in ledgers could lead to diversion of stores purchased. We therefore recommended that the Coordinating Director and Finance Officer should ensure that the items are recorded in the ledgers, failing which they should be made to refund the amount involved to chest.

Unrecorded fuel – GH¢10,880.00 152. Section 1604 of the Stores Regulations provides that ‘a vehicle logbook shall be maintained for each vehicle in which journeys undertaken and particulars of receipt of fuel, oil and lubricants shall be recorded daily by the driver.’

153. We however noted that management of Abura Asebu Kwamankese District Assembly failed to ensure that drivers recorded fuel and lubricants purchased totalling GH¢10,880.00 in their vehicle log books.

154. We recommended that management should provide evidence of usage of the fuel purchased, or the amount recovered from the Coordinating Director and Finance Officer to chest.

Tax irregularities

Failure to remit withholding tax – GH¢25,076.53 155. We noted that four Assemblies failed to remit tax withheld totalling GH¢25,076.53 to the Commissioner General of Ghana Revenue Authority in contravention of Section 87(1) of Internal Revenue Act 592. The breakdown is shown below:

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 29 and Other Statutory Funds for the year ended 31 December 2013 No. Assembly Amount (GH¢) 1. Effutu Municipal 9,541.17 2. Abura Asebu Kwamankese 1,283.10 3. 1,031.05 4. Agona West Municipal 13,221.21 Total 25,076.53

156. We recommended that the amounts should be remitted to the Commissioner– General of GRA without further delay.

30 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 2013 EASTERN REGION

MANAGEMENT ISSUES

Introduction 157. Gross Common Fund allocations to the 26 MMDAs which operated in the Eastern Region during the 2013 financial year was GH¢19,956,289.25. Out of this amount, GH¢6,633,822.28 representing 33.2% of the total allocation, was deducted as statutory and other obligatory requirements. The Assemblies were therefore left with total net receipt of GH¢13,322,466.97 to operate with. Appendix ‘A’ to this report provides information on the allocations to the various Assemblies, deductions made at source and the net balances.

Details of findings and recommendations

Cash irregularities

Unreceipted funds – GH¢543,508.98 158. We noted that the and District Assemblies failed to acknowledge receipt of their second quarter District Assembly Common Fund releases of GH¢300,544.81 and GH¢242,964.17 respectively contrary to Regulation 28(1) of the FAR which states that “a collector who is satisfied that money tendered is in order, shall issue an original receipt to the payer, and shall deal with the duplicate and triplicate copies as required by Departmental Accounting Instructions.”

159. We advised management of the two Assemblies to ensure that they acknowledge receipt of all DACF releases to ensure proper disclosure of accounting information in their books of account.

Misapplication of DACF – GH¢132,613.25 160. Five Assemblies misapplied a total amount of GH¢132,613.25 from the DACF, Persons With Disabilities and Social Investment Fund on recurrent expenditures such as overtime and sitting allowances, workshops, fuel, travelling and transport, hotel accommodation, electricity, transfer grants, haulage claims, legal fees, rent, etc. in violation of provisions under Section 87(2) of the Local Government Act, 1993 (Act 462) and Regulation 179 (1) of the FAR, 2004 (L.I 1802). The breakdown is shown below:

No. Assembly Type of Amount Fund (GH¢) 1. West Akim Municipal PWD 37,988.00 2. Kwahu West Municipal SIF 3,569.25 3. Suhum Municipal DACF 39,735.00

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 31 and Other Statutory Funds for the year ended 31 December 2013 4. Upper West Akim District DACF 20,000.00 5. PWD 31,321.00 Total 132,613.25

161. This situation could result in the depletion of funds earmarked for developmental programmes and projects. We recommended that the total amount misapplied should be transferred from the IGF to the Common Fund account.

Unsupported payments – GH¢1,094,022.13 162. Part IX Section 14 of the Financial Memoranda requires management of public Institutions to ensure that all payments are substantiated with official receipts and supporting documents to ensure that they are due and payable. Our audits, however, disclosed that 16 Assemblies made payments totalling GH¢1,094,022.13 without supporting the vouchers with relevant expenditure documents. The breakdown is shown below and the details are found in Appendix ‘C’ to this report.

No. Type of Fund Amount (GH¢) 1. DACF 1,016,518.47 2. MP CF 5,813.50 3. PWD and GSFP 71,690.16 Total 1,094,022.13

163. Weak supervision by management resulted in the lapses which posed financial risks to the Assemblies. We recommended that the payments should be justified with relevant expenditure documents, failing which the officials who authorised the expenditures should be surcharged with the amounts involved.

Unapproved overdraft – GH¢15,000.00 164. Section 88 of the Local Government Act, 1993 (Act 462) states that “a District Assembly may raise loans or obtain overdrafts within Ghana of such amounts, from such sources, in such manner for such purpose and upon such conditions as the Minister in consultation with the Minister responsible for Finance, may approve except that, no approval is required where the loan or overdraft to be raised is below GH¢2,000.00 and the loan or overdraft does not require a guarantee by the Central Government.”

165. On the contrary, our audit disclosed that East Akim Municipal Assembly obtained bank overdraft facility totalling GH¢15,000.00 from the Ghana Commercial Bank, Kibi branch without the approval of the General Assembly and the Minister of Local Government and Rural Development in consultation with the Minister of Finance.

32 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 2013 166. We recommended that management should seek retrospective approval from the authorising Ministries and also comply with the provisions of the Act in all future transactions.

Overdue loan – GH¢97,027.00 167. Yilo Krobo Municipal (GH¢69,450.00) and the Assemblies (GH¢27,577.00) granted loans totalling (GH¢97,027.00) to small scale entrepreneurs through Agricultural Development Bank and the Manya Krobo Rural Bank and tricycle loans to Assemblymen respectively to be repaid in monthly instalments. However, as at 31 December 2013, no repayments have been made by the beneficiaries, thereby denying the Assemblies the use of the funds in other projects.

168. This contravenes Part VII Section 43 of the Financial Memoranda which require that ‘advances made shall be repaid in accordance with conditions determined at the time the advances were granted.”

169. We recommended to management of the Assemblies to ensure early recovery of the outstanding amounts.

Unsubstantiated DACF deductions – GH¢1,666,168.84 170. The Administrator of Common Fund deducted a total amount of GH¢1,666,168.84 from the Common Fund allocation of nine Assemblies for services such as fumigation, sanitation, NALAG dues and diaries, MAKS Publications, Photo exhibitions, among others. We noted however, that these services were not carried out. The table below shows the breakdown:

No. Assembly Amount (GH¢) 1. New Juaben Municipal 283,800.00 2. Kwaebibirem District 232,438.52 3. Upper West Akim District 72,961.74 4. Denkyembour District 142,000.00 5. Yilo Krobo Municipal 200,000.00 6. Kwahu West Municipal 290,550.60 7. 186,600.00 8. Fanteakwa District 29,674.00 9. Suhum Municipal 228,143.98 Total 1,666,168.84

171. The deductions impacted negatively on the cash flow of the Assemblies and hampered execution of their development programmes. We recommended to management of the Assemblies to demand accountability of the amounts deducted from the Administrator of the Common Fund.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 33 and Other Statutory Funds for the year ended 31 December 2013 Unpresented payment vouchers – GH¢35,430.00 172. Regulation 1 of the Financial Administration Regulations, 2004 states that “any public officer who is responsible for the receipt, custody and disbursement of public and trust moneys shall keep proper records of transactions and shall produce records of transactions for inspection when called upon to do so by the Minister, the Auditor- General and the Controller and Accountant-General or any officer authorised by them.”

173. Contrary to the above provision, the Upper West Akim District Assembly failed to submit nine payment vouchers used in paying GH¢35,430.00 for audit review. We recommended that management should produce the nine payment vouchers for our audit review, failing which the amount should be recovered from management to chest.

Unretired imprest – GH¢37,369.00 174. We noted that staff of Kwahu West Municipal (GH¢30,719.00) and (GH¢6,650.00) Assemblies failed to retire imprests totalling GH¢37,369.00 contrary to Regulation 288 of the Financial Administration Regulation 2004.

175. We recommended that management of the Assemblies should ensure that the imprests are accounted for, failing which the total amounts should be treated as loans and recovered from the salaries of the staff involved to chest.

Payment vouchers not pre-audited – GH¢765,646.81 176. Part XIII Section 1 of the FM of the MMDAs enjoins the Internal Auditor to pre- audit or cause to be pre-audited, all payment vouchers and their related supporting documents. We however, observed that five Assemblies failed to submit 93 payment vouchers used in paying GH¢765,646.81 for pre-auditing. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. West Akim Municipal 324,475.53 2. Upper West Akim District 75,723.28 3. 175,100.80 4. Birim Central Municipal 182,047.20 5. Kwahu East District 8,300.00 Total 765,646.81

177. We recommended that management of the Assemblies should ensure that all payment vouchers are submitted to internal audit for pre-auditing before payments are effected.

34 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 2013 Contract irregularities

Abandoned projects – GH¢187,892.00 178. Our audit at the Asuogyaman District Assembly disclosed that after making a total payment of GH¢187,892.00 towards the completion of a 36 No. market stalls for yam traders at Senchi, the project was abandoned in 2009 even though the project was 77% complete. We were informed that the Volta River Authority has constructed a similar yam market nearby which is close to the riverside, making it more convenient to the traders.

179. We recommended that management should seek input from the community before embarking on such projects to avoid duplication and waste. We urged management to look for alternative use for the market.

Overpayment of contracts – GH¢40,986.01 180. Section 11 of Part VI of the Financial Memoranda states, among others that, it is the duty of an officer responsible for a head of expenditure to vouch payment vouchers, and in doing so he must ensure that: a. the expenditure chargeable is within the approved estimate b. the services specified have been performed and c. the prices charged are either according to contracts or approved scales.

181. We observed however, that the four Assemblies listed below made payments totalling GH¢40,986.01 in excess of amounts due to contractors.

No. Assemblies Overpayment (GH¢) 1. Upper West Akim District 4,771.66 2. Yilo Krobo Municipal 31,990.12 3. 1,500.00 4. Birim South District 2,724.23 Total 40,986.01

182. We recommended that management of the Assemblies should recover the amounts overpaid from the contractors and institute measures to prevent its recurrence.

Unplanned projects and procurements – GH¢131,577.59 183. We noted that Asuogyaman District (GH¢57,100.00) and Birim South District (GH¢74,477.59) Assemblies undertook projects and procurement activities valued at GH¢131,577.59 which were not recorded as part of their approved Annual Procurement Plans.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 35 and Other Statutory Funds for the year ended 31 December 2013 184. Venturing into unplanned activities results in numerous uncompleted projects which also derails the Districts’ developmental programmes. We advised managements to ensure that only approved projects and procurement activities are undertaken during each fiscal year.

Payments without monitoring reports/performance certificates – GH¢200,966.94 185. We noted that Birim North (GH¢184,097.10) and Akyemansa (GH¢16,869.84) District Assemblies made payments totalling GH¢200,966.94 to contractors for work done without recourse to the reports of Assemblies’ monitoring and evaluation teams in contravention of Part IX Section 70(a) of the Financial Memoranda for District Assemblies.

186. We recommended that the payments should be regularised or the amounts involved recovered from the authorising and finance officers to chest.

Contract register not updated – GH¢152,281.21 187. Part IX Section 74 of the Financial Memoranda for MMDAs states that “a Contract Register shall be maintained by the Assembly and shall be entered promptly as details become available.” We noted however, that three Assemblies paid a total of GH¢152,281.21 for various construction projects without recording the amounts and other details in a contract register. The breakdown is shown below:

Assembly Amount (GH¢) Upper West Akim District 22,254.86 Yilo Krobo Municipal 14,000.00 Kwahu West Municipal 116,026.35 Total 152,281.21

188. Failure to update contract registers could result in overpayment to contractors. We recommended that the Assemblies should update the contract registers to facilitate accurate financial reporting.

Poorly executed projects – GH¢531,152.91 189. Our audits disclosed that New Juaben Municipal (GH¢529,402.91) and Denkyembour District (GH¢1,750.00) Assemblies paid a total of GH¢531,152.91 to contractors for various projects, including the fencing of the MCE’s residence, construction of an Early Childhood Development Centre and a 26 No. Lockable Stores, but these were not executed according to specifications in the bills of quantities.

190. The anomaly was due to poor contract management practices and weak financial controls. We recommended that the contractors involved should be made to correct the

36 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 2013 defects identified, failing which management of the Assemblies should be held personally liable to remedy the situation for their negligence.

Procurement and store irregularities

Non-competitive tendering – GH¢343,917.25 191. Section 35(1&3) of the Public Procurement Act, 2003 (Act 663) provides that “a procurement entity shall procure goods, services or works by competitive tendering; and 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 that method.”

192. Contrary to the above provision we noted that four Assemblies awarded contracts valued at GH¢343.917.25 without going through tendering processes even though their contract sums were above the threshold for Head of Entity, thereby rendering the award process non-competitive. The breakdown is shown below:

Assembly Amount (GH¢) Birim Central Municipal 73,027.00 Birim North District 86,350.00 Birim South District 84,775.36 Fanteakwa District 99,764.89 Total 343,917.25

193. We recommended that the managements of the affected Assemblies should ensure that contracts are awarded according to the provisions specified in Act 663 to avoid sanctions.

Purchases not supplied – GH¢8,754.50 194. Contrary to Part VI Section 11 of the Financial Memoranda which provides among other things that ‘it is the duty of an officer responsible for a head of expenditure to vouch payment vouchers, and in doing so he must ensure that the services specified have been performed,’ we noted that West Akim Municipal Assembly made pre-payments for the supply of furniture and building materials amounting to GH¢8,754.50 were not supplied.

195. We urged management of Assembly to desist from pre-financing suppliers and also ensure that the outstanding supplies are delivered, failing which the amount involved is recovered from the authorising and finance officers to chest.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 37 and Other Statutory Funds for the year ended 31 December 2013 Unrecorded stores – GH¢85,321.20 196. Section 35(2) of the Financial Administration Act, 2003 (Act 654) states that “accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.”

197. Contrary to the above, we noted that various store items purchased by five Assemblies valued at GH¢85,321.20, neither had Store Receipt Vouchers covering them nor were they taken on ledger charge to provide an audit trail on usage and beneficiaries. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. New Juaben Municipal 7,027.00 2. West Akim Municipal 43,623.20 3. Upper West Akim District 5,320.00 4. Kwahu Afram Plains North Dist. 15,809.00 5. East Akim District 13,542.00 Total 85,321.20

198. In the circumstances, we could not confirm the authenticity of the purchases. We recommended that management of the Assemblies should account for the items or they should be surcharged with the amounts involved.

Stores issued without approval – GH¢8,045.18 199. We noted that store items valued at GH¢8,045.18 were issued without approved requisitions at the New Juaben Municipal Assembly contrary to Part XII Section 28 of the Financial Memoranda for MMDAs.

200. We recommended that management should ratify the transaction with appropriate stores requisitions or surcharge the officers involved with the value of items issued.

Unaccounted fuel and lubricants – GH¢11,928.00 201. Part XII Section 60 of the Financial Memoranda enjoins MMDAs to maintain vehicle logbooks on official vehicles in which particulars of receipts of fuel and lubricants as well as persons undertaking journeys and kilometric recordings shall be entered daily.

38 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 2013 202. On the contrary, we observed that fuel and lubricants valued at GH¢11,928.00 purchased by West Akim (GH¢4,000.00) and Kwahu West (GH¢7,928.00) Municipal Assemblies were not recorded in their vehicle logbooks.

203. We recommended that management of the Assemblies should provide evidence of utilization of the fuel purchased or in default refund the amount to chest.

Maintenance and repairs without works order – GH¢17,308.00 204. Part II Section 16 (1a) of the Financial Administration Act, 2003 (Act 654) states among other things that “payment shall not be made for any work done, goods or services supplied or rendered under a contract or not until such payments are supported by a payment voucher or certificate where the head of department certifies that the work has been performed, such goods or services have been supplied or delivered and prices are reasonable.”

205. We observed that managements of New Juaben Municipal (GH¢7,233.00) and (GH¢10,075.00) Assemblies spent a total amount of GH¢17,308.00 on repairs of their vehicles without reference to job order cards or certificate of completion of work in contravention of the provisions of the FAA.

206. We urged management of the Assemblies to ensure that all future repair works are supported by approved job order cards and certificate of completion of work.

Tax irregularities

Purchases from non-VAT registered entities – GH¢12,362.25 207. Asuogyaman (GH¢5,250.00) and Atiwa (GH¢7,112.25) District Assemblies avoided the payment of VAT amounting to GH¢12,362.25 to the State by purchasing goods and services worth GH¢82,415.00 from non-VAT registered entities in contravention of Section 30(2) of the Financial Administration Act, 2003.

208. We recommended that management of the Assemblies should ensure strict compliance with the provisions of the FAA in all future transactions.

Withholding taxes not remitted – GH¢23,242.37 209. Contrary to Section 87(1) of the Internal Revenue Service Act, 2000 (Act 592) which 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, five Assemblies withheld taxes totalling GH¢23,242.37 but failed to remit the amount to the Ghana Revenue Authority. The breakdown is shown below:

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 39 and Other Statutory Funds for the year ended 31 December 2013 No. Assembly Amount (GH¢) 1. Kwaebibirem District 8,565.20 2. Kwahu East District 748.15 3. Birim South District 2,380.38 4. 6,821.36 5. Fanteakwa District 4,727.28 Total 23,242.37

210. We recommended that the amounts should be remitted to the GRA without further delay.

Failure to deduct withholding taxes – GH¢4,928.57 211. Section 84(2) of Internal Revenue Act, 2000 (Act 592) requires that “where a resident person pays a sum to another resident person for the supply or use of goods or property of any kind exceeding fifty currency points, the person making the payment shall withhold tax on the gross amount of the payment at the rate prescribed in Part IV of the First Schedule.”

212. Contrary to the above requirement, we noted that four Assemblies failed to deduct withholding taxes totalling GH¢4,928.57 from payments made for goods and services thereby denying the State of timely inflow of revenue. The breakdown is shown below:

Assembly Amount (GH¢) Kwaebibirem District 414.40 Denkyembour District 455.89 Birim South District 1,923.90 Atiwa District 2,134.38 Total 4,928.57

213. We recommended to management of the Assemblies to ensure that withholding taxes are deducted from all payments exceeding fifty currency points and remitted to the Commissioner General of the GRA.

40 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 2013

MANAGEMENT ISSUES

Introduction 214. For the 2013 financial year, the 16 Assemblies which operated in the Greater Accra Region were allocated a gross amount of GH¢16,279,585.31 as their share of the Common Fund. Out of this allocation, statutory and other source deductions were GH¢4,940,277.73, representing an average of 30.3% of the total allocation. The Assemblies were therefore left with a net amount of GH¢11,339,307.58 to operate with. Appendix ‘A’ attached provides the breakdown of allocations to each Assembly, deductions made and net amounts received by the Assemblies for their programmes.

Details of findings and recommendations

Cash irregularities

Unjustified deductions by DACF Administrator – GH¢861,745.25 215. We noted during our audit that the Administrator of the DACF deducted a total amount of GH¢861,745.25 from the Common Fund and MPs share allocations of four Assemblies for capacity building, training, supply of equipment and store items among others without the Assemblies consent, but none of the services or supplies were delivered. The breakdown is provided below:

Assembly Amount (GH¢) La Nkwantanang Madina Mun. 170,199.05 134,200.00 144,801.20 – Municipal 412,545.00 Total 861,745.25

216. We recommended that management should request the Administrator to deliver the items and services or recover the amounts involved and this office informed accordingly.

Unpresented payment vouchers – GH¢78,982.06 217. Regulation 1(1) of the FAR, 2004 enjoins public officers who are responsible for the conduct of financial business on behalf of the Government to keep proper records of all transactions and produce the records for inspection when called upon to do so by the Auditor–General.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 41 and Other Statutory Funds for the year ended 31 December 2013 218. Contrary to the above regulation, management of La Nkwantanang Madina Municipal (GH¢5,000.00) and (GH¢73,982.06) failed to produce 11 payment vouchers with a total face value of GH¢78,982.06 for audit examination.

219. The lapse could lead to the concealment of financial impropriety by the Assemblies. We recommended that management should ensure that the payment vouchers together with relevant supporting documents are presented for audit examination or the amount recovered from the Coordinating Directors and their Finance Officers.

Unsupported payments – GH¢111,027.50 220. We observed, as shown below, that three Assemblies failed to support 25 payment vouchers covering a total of GH¢111,027.50 paid between January and November 2013 for training of officers and other activities with the relevant supporting documents.

Assembly No. of Amount PVs (GH¢) La Nkwantanang Madina Mun. 2 18,600.00 Ada West District 15 83,299.50 Ada East District 8 9,128.00 Total 25 111,027.50

221. The lapse contravened Part IX Sections 7, 13 and 14 of the Financial Memoranda for MMDAs which require that originals of relevant supporting documents including invoices and statements of expenditure should be attached to payment vouchers.

222. We recommended that management of the Assemblies should provide the necessary documents, failing which the amounts involved should be recovered from the Authorising officers and their Finance Officers.

Unrecovered advances – GH¢13,200.00 223. The La Nkwantanang Madina Municipal Assembly granted salary and rent advances totalling GH¢13,200.00 to staff during the period under review but failed to make monthly deductions from the salaries of the staff involved.

224. This contravened Section 3(a) of Appendix 1 to the Financial Memoranda for MMDAs which stipulates that ‘monthly instalments due from an officer of an Assembly in respect of an advance should be deducted at source from his monthly salary before payment is made to him.”

42 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 2013 225. We recommended that the Assembly should desist from granting advances to staff from the DACF and urged management to recover the amount from the salaries of officers involved.

Misapplication of DACF – GH¢17,990.13 226. We noted that management of Ada East District Assembly misapplied GH¢12,031.73 from the DACF of the Assembly to settle unpaid deductions and penalties to SSNIT, while the Ada West District Assembly also misapplied GH¢5,958.40 to pay staff allowances.

227. To ensure continuous execution of development programmes of the communities, we urged managements to desist from misapplying the Common Fund. We also recommended that management of the Assemblies should transfer the total amount misapplied from their IGF accounts to the Common Fund accounts.

Contract Irregularities

Overpayment of contract sum – GH¢16,340.92 228. The Ga West Municipal Assembly awarded a contract to M/s Belcema Company Limited for the construction of a fence wall around the Assembly’s offices with a gate house at a cost of GH¢69,971.01

229. Our examination of payment vouchers disclosed that even through there were no variations to the contract, the contractor was paid GH¢82,994.23, resulting in an overpayment of GH¢13,023.22.

230. Management explained that the excess payment was due to price fluctuations which made them vary the contract price but could not provide any documentary evidence of the contractor applying for variation of the contract sum or minutes of the Tender Committee’s approval for the variation.

231. We further noted that a contingency of GH¢3,317.70 provided for in the contract was also paid to the contractor without documentary justification, thus bringing the amount overpaid to the contractor to GH¢16,340.92.

232. We recommended that management should recover the total overpayment of GH¢16,340.92 from the contractor, failing which the amount should be recovered from the Coordinating Director and the Finance Officer.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 43 and Other Statutory Funds for the year ended 31 December 2013 Contract payments not recorded in contract register – GH¢316,241.29 233. Part IX Section 74 of the Financial Memoranda for MMDAs states that, “a contract register shall be maintained by the Assembly and shall be entered promptly as details become available.”

234. We, however noted that the Ga West Municipal Assembly paid a total amount of GH¢316,241.29 to various contractors for projects executed but failed to record the amounts and the details in the contract register.

235. Failure to record contract payments in a register could lead to overpayments. We therefore recommended that the Assembly should ensure that entries in the contract register are updated as early as practicable.

Under-deduction of retention money – GH¢25,092.00 236. Part IX Section 72 of the Financial Memoranda for MMDAs, 2004 states that “every contract shall provide at least ten percent of the 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.”

237. We, however, noted that the La Nkwantanang Madina Municipal Assembly deducted retention money of GH¢2,788.00 from a total payment of GH¢278,800.00 made to five contractors instead of GH¢27,880.00, resulting in an under-deduction of GH¢25,092.00.

238. We recommended that management should be held responsible for any defects noted should the contractors default in remedying such during the retention period.

Procurement and store irregularities

Purchases not routed through stores – GH¢17,075.50 239. Section 0105 of the Store Regulation 1984 provides that heads of departments shall be accountable for the proper care, custody and use of public supplies and equipment from acquisition to use or otherwise disposed of.

240. We noted, however, that Ada West District Assembly purchased store items including equipment to the tune of GH¢17,075.50 but failed to route them through the stores and show their disposal.

241. Failure to route purchases through store records could lead to diversion or payment for items not supplied. We therefore recommended to management to

44 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 2013 produce evidence of receipt and use of the items involved, failing which the amount should be recovered from the Authorizing and Finance Officers.

Single-source procurement without approval – GH¢49,943.29 242. Section 40(1) of the Public Procurement Act 2003 (Act 663) provides that “a procurement entity may engage in single-source procurement with the approval of the Board, where goods, works or services are only available from a particular supplier or contractor, or if a particular supplier or contractor has exclusive rights in respect of the goods, works or services, and no reasonable alternative or substitute exists,” among others.

243. We, however, observed that the management of Ga East Municipal Assembly adopted the single-source procurement method in awarding a contract valued at GH¢49,943.29 to M/s Sawaba Construction Limited without approval from the Public Procurement Authority (PPA).

244. We recommended that management should use competitive tendering approach in awarding contracts to ensure transparency and value for money. Meanwhile, management was urged to seek authorisation from the PPA to support the single source method used in the award of the contract.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 45 and Other Statutory Funds for the year ended 31 December 2013 NORTHERN REGION

MANAGEMENT ISSUES

Introduction 245. The Common Fund Administrator allocated a total of GH¢21,106,162.54 to the 26 Assemblies in the Northern Region as their share of common fund for the 2013 financial year. Source deductions totalling GH¢6,519,034.34, which represented approximately 30.9% of the allocation, were made by the Administrator as statutory/other deductions leaving the Assemblies with a net total receipt of GH¢14,587,128.20 to operate with during the year. Appendix ‘A’ attached provides details of the allocated amounts, deductions made and the net balances.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢419,086.13 246. 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, if the original document has been lost, a duplicate shall be obtained which shall be certified by the appropriate officer that he has taken all possible steps to ensure that no payment has been made on the original document.” Section 14 of the same instrument also stipulates that official receipts shall be obtained in support of payments to Government Departments, State Enterprises and other Assemblies.

247. Contrary to the above, our examination of payment vouchers disclosed that eight Assemblies failed to adequately support payment vouchers used in disbursing a total of GH¢419,086.13 with the relevant receipts and statement of expenditures. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Tamale Metropolitan 39,934.00 2. Savelugu/Nanton Mun. 1,170.00 3. Tolon District 57,849.26 4. Bole District 180,775.39 5. Bunkpurugu/Yunyoo Dist. 108,245.00 6. Sawla/Tuna/Kalba District 10,000.00 7. Central Gonja District 11,154.48 8. North Gonja District 9,958.00 Total 419,086.13

46 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 2013 248. Absence of supporting documents could be a pretext to conceal cash shortages or misappropriation of funds. We recommended that the relevant documents should be provided to authenticate the transactions, failure of which the amount should be recovered from the officials who authorised and effected the payments.

Unretired imprests – GH¢49,056.00 249. Part IX, Section 39 of the Financial Memoranda for District Assemblies stipulates that “standing imprest shall be retired at the end of each financial year. Special imprests shall be retired within the period allowed.”

250. Our audit disclosed that officials of Bole District Assembly failed to account for special imprests totalling GH¢49,056.00 granted between January and December 2013 for the performance of assignments on behalf of the Assembly.

251. Unretired imprest could serve as a pretext to cover up misappropriation or misuse of funds. We recommended that officials should be compelled to account for the imprest granted them, failing which management should treat the amounts as personal loans and advances to the officials.

Unaccounted deductions at source from DACF allocations – GH¢1,530,487.31 252. The Administrator of the DACF in his Circular No. DACF/C/01/123 of 4 June 2003 directed all District Finance Officers to issue receipts to cover gross amount of releases made to District Assemblies. The Administrator would in turn issue receipts for all deductions from the allocations to the District.

253. Contrary to the above circular, we noted that for the year 2013, the Administrator of the DACF deducted a total amount of GH¢1,530,487.31 at source from the allocations of six Assemblies but failed to issue official receipts to cover the source deductions.

No. Assembly Amount (GH¢) 1. Tamale Metropolitan 464,759.72 2. Tolon District 226,500.00 3. Mion District 358,817.52 4. West Mamprusi District 62,181.06 5. Kumbungu District 288,653.04 6. East Mamprusi District 129,575.97 Total 1,530,487.31

254. We also noted that most of the deductions were to finance the cost of training, fumigation, supply of equipment and other human capacity building activities of the Assemblies, however, no evidence exist at the Assemblies to show that the services were rendered.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 47 and Other Statutory Funds for the year ended 31 December 2013 255. We recommended that the Assemblies should follow up and ensure that the services for which the amounts were deducted are delivered and also obtain receipts from the Administrator to cover such amounts.

Misapplication of DACF – GH¢387,472.50 256. Section 87(2) of the Local Government Act, 1993 (Act 462) stipulates that the main purpose for establishment of the Common Funds was to assist the Assemblies to solely undertake development projects and not for recurrent expenditure. Regulation 179 of the FAR 2004 (LI 1802) prohibits a head of department from authorizing payments to be made out of funds earmarked for specific activities for purposes other than those activities.

257. Our audit disclosed that four Assemblies disbursed a total amount of GH¢387,472.50 from their Common Fund allocations on recurrent expenditure not related to the developmental projects. The breakdown is as follows:

No. Assembly Amount (GH¢) 1. Tamale Metropolitan 40,913.00 2. Yendi Municipal 27,374.00 3. Gushiegu District 9,640.00 4. Bunkpurugu/Yunyoo 309,545.50 District Total 387,472.50

258. In response, management of the Assemblies explained that the DACF Utilisation Guideline issued on 7 November 2013, instructing them not to spend more than 20% of each quarter’s releases on recurrent expenses was received late, after the expenditures in question had been incurred.

259. We are of the view that management’s response confirm the need to go strictly by the provision in Section 87(2) of Act 462 by using the fund on development projects. We therefore recommended that management of the Assemblies should transfer the misapplied funds from the IGF account to the Common Fund accounts.

Payment vouchers not pre-audited – GH¢1,014,235.80 260. Part XIII, Section 1 of the Financial Memoranda for District Assemblies stipulates that the Internal Auditor shall pre-audit or cause to be pre-audited, all payment vouchers with all appropriate attachments.

261. Contrary to the above provision, we observed that payment vouchers with a total face value of GH¢1,014,235.80 were not submitted to internal audit for pre-auditing by the Nanumba North District Assembly.

48 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 2013 262. We could not as a result confirm whether the Assembly obtained value for money for the transactions involved. We recommended that henceforth, all payment vouchers should be referred to the Internal Auditor for pre-audit before payments are effected.

Payments not supported with warrants – GH¢253,852.66 263. Three District Assemblies, namely Chereponi (GH¢202,574.66), Saboba (GH¢42,400.00) and Karaga (GH¢8,878.00) paid a total amount GH¢253,852.66 without supporting the payments with warrants to confirm budgetary provisions and management approval of the transactions.

264. This contravenes the directive given by the Minister of Finance and Economic Planning contained in paragraph 1199 of the 2012 Budget Statement and Economic Policy of the Government. We recommended that management of the Assemblies should ensure that all future payments are supported with warrants.

PWD irregularities – GH¢59,405.95

i. Borrowing from People With Disability account – GH¢27,600.00 265. Section 8(d) of the Guidelines on the disbursement and management of the District Assemblies Common Fund for People With Disability (PWD) states that there shall be no borrowing from the disability account.

266. Contrary to the above Guideline, we noted that management of Gushiegu District Assembly borrowed a total of GH¢27,600.00 from the PWD accounts to meet some financial commitments of the Assembly.

267. We recommended that management should also desist from the practice and transfer the amount borrowed into the PWD account.

ii. Unreceipted remittances – GH¢31,805.95 268. The Sawla/Tuna/Kalba District Assembly failed to issue official receipts to acknowledge remittances received in respect of PWD totalling GH¢31,805.96, contrary to the Administrator of the DACF Circular No. ADACF/CIR/01 of 4/6/2003 which required that official receipts shall be issued to cover all remittances from the Common Fund Secretariat.

269. We therefore recommended that official receipts should be issued to cover the amount received to facilitate accurate financial reporting.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 49 and Other Statutory Funds for the year ended 31 December 2013 Contract irregularities

Failure to submit performance bond and programme of work – GH¢499,641.84 270. Section 22(2) of the Public Procurement Act, 2003 (Act 663) provides that “a procurement entity may require tenderers to provide appropriate documentary evidence or other information that it considers useful to satisfy itself that the tenderers are qualified in accordance with the criteria referred to in Section 22(1) of the Act.”

271. We noted to the contrary that the Nanumba South District Assembly did not obtain performance bonds for contracts totalling GH¢499,641.84. In the absence of a performance bond, it would be difficult to get a remedy in case of a default by a contractor.

272. We also noted that management did not request the contractors to produce programme of work to facilitate monitoring and evaluation of progress made on the contracts. We recommended that management should ensure provision of performance bonds and programme of work for all contracts to protect the Assembly against any default by contractors.

Failure to produce contract document – GH¢47,208.00 273. Management of Tamale Metropolitan Assembly paid GH¢47,208.00 to the Managing Director of Wuloco Electricals to erect street light poles at Afa Ajura mosque without any contractual agreement between the parties. Management could not also produce any monitoring and evaluation reports on the above contract to authenticate the transaction, neither was the contract recorded in the Assembly’s contract register.

274. Under the circumstance, we could not ascertain that the contract was executed and merited the payments made. We recommended to management to either produce the contract documents on the transaction for which a total amount of GH¢47,208.00 have been paid or the amount recovered from the former Metropolitan Chief Executive, the Metropolitan Coordinating Director and the Metropolitan Finance Officer.

Variation of contract without authority – GH¢27,700.91 275. Management of Savelugu/Nanton Municipal Assembly awarded a contract for the construction of the MCD’s bungalow at a contract sum of GH¢197,508.97 to M/S Yoozak Enterprise in June 2011. At the time of our audit, the Assembly has made a total payment of GH¢225,209.88 to the contractor without recourse to the District Tender Board. Despite the overpayment of GH¢27,700.91 to the contractor, the building has not been completed.

50 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 2013 276. This contravenes Part IX, Section 68 of the Financial Memoranda which provides that ‘no alterations shall be made to any contract except on the recommendation of District Tender Board.

277. We recommended that management should refer the variation to the District Tender Board and the General Assembly for retrospective approval, failing which the MCE, MCD, Municipal Engineer and the Municipal Finance Officer should be held liable for the refund of the variation of GH¢27,700.91.

Delayed projects – GH¢1,391,113.31 278. Thirteen Common Fund projects awarded by management of three Assemblies remain uncompleted as at 31 December 2013 with some commencing as far back as 2007. Details are furnished below:

Assembly No of Amount projects (GH¢) Tolon District 5 779,150.19 Kumbungu District 3 137,184.89 Nanumba South Dist. 5 474,778.23 Total 13 1,391,113.31

279. This was due to poor contract management and could lead to abandoning of projects or contract variation. We urged management of the Assemblies to prioritize and complete these projects before embarking on new ones.

Assets Register not updated – GH¢99,661.30 280. Part XII, Section 64 of the Financial Memoranda enjoins Assemblies to maintain a register of assets that it owns or leases while Section 65 of the same part specifies the minimum details required to be recorded in the assets register.

281. We observed that even though the Kpandai District Assembly maintained an assets register, this is not regularly updated with information of all assets purchased. For instance furniture and electrical gadgets purchased for senior staff bungalows in February 2012 at a total cost of GH¢ 99,661.30 from M/S. Maarong Enterprise, Tamale were not recorded in the asset register.

282. Failure to update assets register could lead to non-detection of pilfered assets. We therefore recommended that the assets register should be regularly updated to enable accurate financial reporting.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 51 and Other Statutory Funds for the year ended 31 December 2013 Procurement irregularities

Purchases not routed through stores – GH¢134,605.63 283. Section 35(2a) of the Financial Administration Act, 2003 (Act 654) states that “accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.”

284. We noted to the contrary that goods totalling GH¢134,605.63, purchased by five Assemblies were not routed through stores before they were put to use. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Tamale Metropolitan 63,214.00 2. Zabzugu District 22,339.30 3. Tolon District 6,673.20 4. Bole District 31,579.13 5. West Mamprusi District 10,800.00 Total 134,605.63

285. Failure to route purchases through store records could lead to diversion or payment for items not supplied. We therefore recommended to management to produce evidence of receipt and use of the items involved, failing which the amount should be recovered from the Authorizing and Finance Officers.

Fuel purchases not recorded in logbooks – GH¢106,614.04 286. Contrary to Section 1604 of the Store Regulation 1984, and Part XII, Section 60 of the Financial Memoranda for MMDAs, six District Assemblies purchased fuel and lubricants worth GH¢106,614.04 but failed to record them in the Assemblies vehicle logbooks. The Assemblies and their respective values of fuel purchases are listed below:

No. Assembly Amount (GH¢) 1. Zabzugu District 27,119.50 2. Karaga District 4,992.00 3. Chereponi District 41,619.37 4. Bole District 3,270.00 5. Saboba District 6,636.00 6. Nanumba South Dist. 22,977.17 Total 106,614.04

52 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 2013 287. We requested management of the Assemblies to provide evidence of the receipt and utilization of the fuel purchased, failing which the cost involved should be recovered from the authorising and finance officers of the Assemblies.

Procurements without alternative price quotations – GH¢144,985.46 288. In contravention of Section 43(1) of the Public Procurement Act 2003, (Act 663) which require a procurement entity to obtain quotations from as many sources as practicable but from at least three different sources, five Assemblies procured goods and services to the tune of GH¢144,985.46 without seeking alternative price quotations. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Yendi Municipal 37,423.49 2. Tolon District 7,512.67 3. Sawla/Tuna/Kalba Dist. 65,238.72 4. Bole District 17,610.00 5. Nanumba North District 17,200.58 Total 144,985.46

289. To promote transparency and accountability in management of public resources we recommended that management should comply with the provisions of the Public Procurement Act at all times.

Payments for repairs without works order – GH¢73,365.93 290. Management of Chereponi (GH¢14,485.55), East Gonja (GH¢51,478.00) and Bole (GH¢7,402.38) District Assemblies paid a total amount of GH¢73,365.93 for repair works on their official vehicles without works orders detailing the type and nature of repairs to be carried out.

291. This contravenes Regulation 1522 of the Stores Regulations, 1984 which states that ‘a request for the repair or maintenance of an item of plant or machinery shall be made by means of a Departmental Purchase Order, which shall in all cases be supported by a written estimate of the cost of repairs or other work required.’

292. To avoid paying for services not rendered, we recommended that management should always ensure that request for repairs were supported with works order.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 53 and Other Statutory Funds for the year ended 31 December 2013 Tax irregularities

Failure to deduct 5% withholding tax – GH¢5,684.13 293. Section 84(2) of Internal Revenue Act, 2000 (Act 592) requires that “where a resident person pays a sum to another resident person for the supply or use of goods or property of any kind exceeding fifty currency points, the person making the payment shall withhold tax on the gross amount of the payment at the rate prescribed in Part IV of the First Schedule.”

294. Contrary to the above requirement, we noted that four Assemblies failed to withhold tax totalling GH¢5,684.13 from payments made for goods and services.

No. Assembly Amount (GH¢) 1. Tolon District 1,511.21 2. Bole District 387.15 3. Nanumba North Dist. 261.10 4. Nanumba South Dist. 3,524.67 Total 5,684.13

295. We recommended to management of the Assemblies to ensure that taxes are withheld from payments made for goods and services.

Withheld taxes not remitted to GRA – GH¢14,776.29 296. Contrary to Section 87(1) of Act 592 which require withholding agents to pay to the Commissioner-General, taxes that have been withheld or that should have been withheld within 15 days after the end of the month in which the payment subject to withholding tax is made, we noted that the three Assemblies listed below failed to remit withheld taxes totalling GH¢14,776.29 to the Commissioner-General.

Assembly Amount (GH¢) Bunkprugu/Yunyoo Dist. 5,285.00 Nanumba North District 5,442.45 Nanumba South District 4,048.84 Total 14,776.29

297. We recommended to the Assemblies to remit the taxes withheld to the Commissioner–General without further delay.

Failure to obtain VAT invoice for VAT paid – GH¢6,339.27 298. Section 19(1) of the Value Added Tax Act,1998 (Act 546) stipulates that: “a taxable person shall on making taxable supply of goods or services issue to the

54 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 2013 customers or the persons supplied, tax invoices in such form as shall be prescribed by regulations.”

299. We noted, however, that management of Nanumba North (GH¢1,339.27) and Sawla/Tuna/Kalba (GH¢5,000.00) paid VAT totalling GH¢6,339.27 but were issued with the suppliers’ ordinary invoice instead of VAT invoice thereby denying the State of the revenue involved.

300. We recommended that management of the Assemblies should obtain the relevant VAT invoices from the suppliers, failing which the VAT revenue of GH¢6,339.27 should be recovered from the DFOs and paid to the GRA.

Purchases from non-VAT registered entities – GH¢2,767.50 301. In contravention of Regulation 183(4) of the FAR, 2004 (LI 1802) Bole District Assembly procured goods and services worth GH¢18,450.00 from non-VAT registered entities thereby avoiding the payment of VAT of GH¢2,767.50 to the State.

302. We recommended that management should desist from procuring from non- VAT registered entities and ensure that all future purchases are made from VAT registered entities.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 55 and Other Statutory Funds for the year ended 31 December 2013 UPPER EAST REGION

MANAGEMENT ISSUES

Introduction 303. In the Upper East Region, the Administrator of the DACF allocated a gross amount of GH¢10,361,662.65 to the 13 Assemblies which operated in the region during the 2013 financial year. Out of the amount, statutory and other deduction was GH¢2,948,180.78, representing an average of 28.4% of the year’s total allocation. This left the Assemblies with total net receipts of GH¢7,413,481.87 to operate with during the year. Appendix ‘A’ attached provides the details of allocations to each Assembly, deductions made and the net balances.

Details of findings and recommendations

Cash irregularities

Payment vouchers not pre-audited – GH¢409,515.86 304. Part XIII Section 1 of the Financial Memoranda for District Assemblies states among others that the Internal Auditor shall pre-audit or cause to be pre-audited all payment vouchers with all attachments.

305. We noted however, that four District Assemblies failed to submit 113 payment vouchers covering a total payment of GH¢409,515.86 for pre-auditing as shown below:

No. Assembly No. of Amount PVs (GH¢) 1. Binduri 69 263,380.54 2. Pusiga 17 100,226.00 3. Bongo 8 14,072.00 4. Kassena Nanakana West 19 31,837.32 Total 113 409,515.86

306. We recommended to management of the Assemblies to ensure that payment vouchers were pre-audited before payments were made.

Unsupported payment vouchers – GH¢494,803.00 307. Five Assemblies failed to support 97 payment vouchers covering a total payment of GH¢494,803.00 with the requisite supporting documents in contravention of Part IX Sections 7, 13 and 14 of the Financial Memoranda for MMDAs which require that

56 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 2013 originals of relevant supporting documents including invoices and statements of expenditure should be attached to payment vouchers. Below are the details.

No. Assembly No. of Amount PVs (GH¢) 1. Binduri District 37 100,268.46 2. Nabdam District 11 25,450.63 3. Builsa South Dist. 20 125,965.70 4. Bongo District 4 10,499.00 5. Bawku Municipal 25 232,619.21 Total 97 494,803.00

308. In the absence of the relevant supporting documents, we could not vouch for the authenticity of the payments. We recommended that management of the Assemblies should produce the necessary supporting documents for our review, failing which the authorising and finance officers should be surcharged with the amount involved.

Un-receipted source deductions from ADACF – GH¢355,563.12 309. Contrary to the Administrator of DACF Guidelines on recognition of Common Fund allocation to the Assemblies, we noted that the Administrator deducted at source a total amount of GH¢355,563.12 of the Common fund allocations of the Pusiga (GH¢225,963.12) and Binduri (GH¢129,600.00) Assemblies without issuing receipts in acknowledgement of the amounts deducted.

310. We recommended that the Finance Officers should obtain the required receipts from the ADACF to support the deductions made to ensure accurate financial reporting.

Unretired imprest – GH¢13,728.50 311. Part IX Section 39 of the Financial Memoranda for District Assemblies stipulates that standing imprest shall be retired at the end of each financial year and any imprest not so retired shall be adjusted to a personal advance account in the name of the imprest holder. Special imprest shall be retired within the period allowed.

312. Contrary to the above regulation, we noted that imprests granted vide 13 payment vouchers totalling GH¢13,728.50 to officials of Bongo District (GH¢11,708.50) and Pusiga District (GH¢2,020.00) Assemblies were not retired.

313. We recommended that management should ensure that the imprests are retired, failing which the amounts should be treated as loans and recovered from the salaries of the officials involved.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 57 and Other Statutory Funds for the year ended 31 December 2013 Unpresented payment vouchers – GH¢19,000.00 314. Regulation 1(1) of the FAR, 2004 enjoins public officers who are responsible for the conduct of financial business on behalf of the Government to keep proper records of all transactions and produce the records for inspection when called upon to do so by the Auditor–General.

315. The District Finance Officer of the Bongo District Assembly however, failed to present a payment voucher used in paying GH¢19,000.00. We could not as a result, vouch for the authenticity of the payments made. We recommended that management should ensure that the payment vouchers together with relevant supporting documents are presented for audit examination or the amount recovered from the chief cashier in charge of the Common fund.

Misapplication of fund – GH¢43,983.60 316. Regulation 179(1) and (2) of the Financial Administration Regulation, 2004 (LI 1802) states that head of department shall not authorize payment to be made out of funds earmarked for specific activities for purposes other than those activities. Section 87(2) of the Local Government 1993 (Act 462) also states that “for the avoidance of doubt all monies received by a District Assembly from District Assemblies Common Fund shall be expended only on projects which form part of the approved development plan for the district.”

317. Contrary to the above, management of Bongo District Assembly expended GH¢43,983.60 of the Assembly’s Common Fund on activities not related to the Fund. We also noted that the expenditures were not supported with relevant receipts and invoices as detailed below:

PV Date Cheque Details Payee Amount No. No. (GH¢) 09 12/11/13 971796 Funds released District 6,000.00 for security Coordinating activities. Director 12 19/11/13 971801/7 Funds for 29th Mashahu Alhaji 11,433.60 farmers’ day Ahmed (MOFA celebration in Director) Bongo. 01 05/12/13 971805 Organization of District 7,100.00 Regional Coordinating Farmers’ Day. Director 15 09/12/13 971819 Release to District 1,450.00 District Coordinating Coordinating Director Director to

58 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 2013 attend a conference in Sunyani. Administration District Co- 18,000.00 expenses for the ordinating Assembly Director Total 43,983.60

318. We recommended that management should ensure that the amount is transferred from the Internally Generated Fund Accounts to the Common Fund Account.

Contract irregularities

Abandoned projects – GH¢273,704.41 319. We noted during review of projects of the Bongo District Assembly that three projects on which the Assembly had spent a total of GH¢273,704.41 and which were slated for completion between four and nine months had been abandoned. Provided below are the details:

Start date Project Contractor Date of Contract Amount Comp- completion sum paid letion (GH¢) (GH¢) level 25/04/08 Finance Gamasbu 25/07/08 67,841.00 49,353.00 90% officer’s Construction bungalow 05/06/08 Office Bumuka Ltd 03/2009 306,073.00 197,238.00 30% complex 25/07/11 Radio Lemyaarum 08/11/11 65,577.00 27,113.41 50% Station Total 273,704.41

320. Delay in executing projects leads to cost overruns to the detriment of other developmental projects. We urged management to ensure that the projects are completed before new ones are embarked upon.

Payment for work done without engineer’s certificate – GH¢187,073.84 321. Part IX Section 70(a) of the Financial Memoranda require the Works Engineer or such other person as the Assembly may appoint for the purpose, to inspect work done and give a certificate (contract payment certificate on D.A. Form 22A or retention money payment certificate on D.A. Form 22B) which shall be attached to the payment voucher.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 59 and Other Statutory Funds for the year ended 31 December 2013 322. Contrary to the above requirement, we noted that Bongo District Assembly paid for contract works totalling GH¢187,073.84 without the requisite reports or certificates to confirm works done or service rendered as detailed below:

PV No. Date Payee Contract Amount Remarks (GH¢) 01/06 11/06/13 Alhaji Supervisory 4,847.00 No monitoring report Musbahu Services No material of field density test result 06/06 12/6/13 Lampoher Gorogo-soe 36,337.00 No monitoring report Eng.Ltd road No evaluation report No engineer’s certificate 09/09 25/09/13 Lampoher Gorogo-Soe 59,364.84 No monitoring Eng Ltd Feeder report, No field test Road result 09/12 10/12/13 Balima Ent. Rehabilitati 32,080.00 No field test report on of Dua- Apuwongo feeder Road 02/12 15/12/13 Pathfinder Rehabilitati 54,445.00 No field test report Co. ltd on of Dua- Yikine Road Total 187,073.84

323. In the absence of the relevant works certificates, we could not confirm whether the Assembly received value for the monies paid. We recommended that management should ensure that the Works Engineer inspects and issue appropriate certificates on the works carried out and this office notified accordingly.

Failure to submit contract register for review – GH¢127,505.29 324. Section 262 of the Financial Administration Regulations 2004 states that, “a head of department shall ensure that financial and accounting records are preserved on good order in a manner that facilitates access.”

325. Contrary to the above regulation, management of Bongo District Assembly failed to produce its contract register to enable us review 11 contracts for which payments totalling GH¢127,505.29 have been made.

326. In the absence of the register, we could not match the contract values with progress payments and ascertain stages of completion of the contracts among others. We recommended that the Assembly should locate the register and submit it for our review.

60 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 2013 Procurement and store irregularities

Purchases without multiple quotations – GH¢48,306.40 327. Section 43(1) of the Public Procurement Act 2003 (Act 663) require procurement entities to request quotations from as many sources as practicable but from at least three different sources when procuring goods and services.

328. We noted however, that management of Binduri (GH¢28,846.40) and Pusiga (GH¢19,460.00) District Assemblies paid a total amount of GH¢48,306.40 for services on 16 payment vouchers without obtaining alternative quotations.

329. We recommended to management of the Assemblies to ensure due compliance with the provisions of the Procurement Act.

Tax irregularities

Failure to withhold tax – GH¢1,611.35 330. Builsa South (GH¢634.80) and Pusiga (GH¢976.55) violated the provisions of Section 84(2) of the Internal Revenue Act 592 by failing to withhold tax amounting to GH¢1,611.35 from payments made for goods and services.

331. This denied the State of timely inflow of revenue for development. We recommended to management of the Assemblies to ensure that taxes are withheld when paying for goods and services that fall within the threshold provided in the tax law.

Non remittance of taxes withheld – GH¢12,893.55 332. Contrary to Section 87(1) of the Internal Revenue Act 2000 (Act 592), we noted that management of Bongo District Assembly failed to remit 5% withholding tax deducted on six payments totalling GH¢12,893.55 to the Ghana Revenue Authority.

333. We recommended to management to ensure that the amount withheld is paid to the Ghana Revenue Authority without further delay.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 61 and Other Statutory Funds for the year ended 31 December 2013 UPPER WEST REGION

MANAGEMENT ISSUES

Introduction 334. For the 2013 financial year, the Common Fund Administrator allocated a total amount of GH¢8,339,131.20 to the eleven Assemblies which operated in the Upper West Region. Of this amount, GH¢2,705,464.49 representing 32.4% was deducted at source to meet statutory and other obligations of the Assemblies for the year. The Assemblies therefore operated with the net balance of GH¢5,633,666.71. Appendix ‘A’ attached provides the allocated amounts, deductions made and the net balances to each Assembly.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢34,893.46 335. Part IX Section 7, 13 and 14 of the Financial Memoranda for MMDAs require payment vouchers to be supported with invoices, statements of expenditure and receipts of payees.

336. On the contrary, our audit of Sissala West (GH¢11,950.00) and Lawra (GH¢22,943.46) District Assemblies disclosed that payments totalling GH¢34,893.46 were made to government institutions, private agencies and staff without supporting the payment vouchers with the requisite receipts, invoices and statements of expenditure to authenticate the payments.

337. We recommended that management of the Assemblies should produce the necessary supporting documents to acquit the payments or refund the total amount paid to chest.

Unretired imprest – GH¢186,056.92 338. Part IX Section 39 of the Financial Memoranda for Assemblies requires that all imprest should be retired at the close of the financial year.

339. We however, observed that six Assemblies failed to ensure that imprests granted to staff totalling GH¢186,056.92 were retired. The breakdown is shown below:

62 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 2013 No. Assembly Amount (GH¢) 1. Wa East District 2,126.52 2. Nadowli District 35,328.00 3. Jirapa District 4,150.00 4. Sissala East District 13,668.00 5. Wa West District 6,721.40 6. Wa Municipal 124,063.00 Total 186,056.92

340. We recommended that management should ensure that the officers retire the imprest as soon as possible or the amounts debited against their personal accounts as advances and deducted from their salaries.

Misapplication of funds – GH¢58,000.00 341. The guidelines for the utilization of the DACF provides that Common Fund allocation to Assemblies shall be used for capacity building, District Reponses initiative, Malaria Prevention, People with Disabilities and projects in economic ventures, social services, administration and environment.

342. On the contrary, we noted during a review of the expenditure records of Lawra District Assembly that a total amount of GH¢58,000.00 was misapplied into payments for expenditures incurred under the Ghana School Feeding Programme and Ghana Social Opportunities Project (GSOP).

343. We recommended that management should transfer the amount from the GSFP and GSOP accounts to the Common Fund account.

Unpresented payment vouchers – GH¢102,877.51 344. Regulation 1(1) of the FAR, 2004 (LI 1802) requires public officers to keep proper records of all transactions and produce all the records for inspection when called upon to do so by the Auditor-General.

345. Contrary to the above, Wa East District (GH¢5,261.50) and Wa Municipal (GH¢97,616.01) Assemblies failed to produce 30 payment vouchers covering a total payment of GH¢102,877.51 for audit examination.

346. Failure to produce payment vouchers for audit review could be a pretext to cover up irregularities. We recommended that management of the Assemblies should produce the vouchers for audit examination and review or the amount involved recovered from the authorising and finance officers of the Assemblies.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 63 and Other Statutory Funds for the year ended 31 December 2013 Unsubstantiated deductions by DACF Administrator – GH¢1,093,200.00 347. Our audit disclosed that a total amount of GH¢1,093,200.00 was deducted from the Common Fund allocations of six Assemblies towards fumigation, sanitation improvement package, photo exhibition, MAKS publication and vision sports by the Administrator. We noted however, that the Assemblies did not receive any service or benefit from the amounts deducted. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Wa East District 197,000.00 2. Jirapa District 197,000.00 3. Wa West District 120,200.00 4. Wa Municipal 266,600.00 5. Daffiama Bissie Issa Dist. 120,200.00 6. Lambussie Karni District 192,200.00 Total 1,093,200.00

348. We therefore recommended that management of the Assemblies should request the DACF Administrator to account for the monies deducted.

Unauthorised expenditure/expenditure not supported with warrants – GH¢84,743.08 349. Part VI Section 11(a) of the FM for MMDAs states that it is the duty of an officer responsible for a head of expenditure to vouch vouchers for payment by ensuring that expenditures are within the provision for services included in the approved estimates, supplementary estimates or reallocation of estimates.

350. We however noted that payments totalling GH¢84,743.08 on 27 payment vouchers made by Wa East (GH¢68,230.50) and Nadowli (GH¢16,512.58) District Assemblies were not supported with warrants to confirm that they were either budgeted for or within the limits of the provisions made in the approved budgets of the Assemblies.

351. We recommended that management of the Assemblies should obtain the approved warrants to support the payments and also ensure that all future payments are supported with approved warrants.

Payment vouchers not pre-audited – GH¢76,685.88 352. Wa East (GH¢54,870.30) and Nadowli (GH¢21,815.58) District Assemblies violated Part XIII Section 1 of the Financial Memoranda by failing to submit 26 payment vouchers covering a total payment of GH¢76,685.88 to their internal audit units for pre- audit before payment.

64 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 2013 353. We recommended that management of the Assemblies should ensure that all payment vouchers are pre-audited before payments are made.

Contract irregularities

Duplication of payment for project work – GH¢20,000.00 354. Contrary to Part IX Section 15 of the Financial Memoranda, which provides that “officers concerned in any stage of payment shall take every precaution against duplicate payments,” our review of Common Fund expenditure documents at Lawra District Assembly disclosed that management paid an amount of GH¢20,000.00 to Macksams Ltd. for the construction of a girls dormitory at Lawra Health Assistants Training School, when that project expenditure had already been paid from DWAP funds

355. We view this transaction as fraudulent and recommended that management thoroughly investigate and take punitive action against the perpetrators. Management was further urged to recover the amount to chest.

Procurement and stores irregularities

Repairs without works orders – GH¢19,862.15 356. Section 1522 of store Regulations 1984 provides that a request for the repair or maintenance of an item of plant or machinery shall be made by means of Departmental Purchase Order, which shall in all cases be supported by a written estimate or cost of repairs or other work required.

357. On the contrary, we noted that Sissala West District Assembly paid a total amount of GH¢19,862.15 for repairs of vehicles without works orders detailing the actual work done, neither were the payments accompanied by certificates to the effect that work done were satisfactory.

358. We recommended that management should ensure that request for works are always supported with works order, and certificates issued on satisfactory completion of jobs before payments are made.

Items procured but not recorded in store – GH¢15,759.00 359. Section 35(2a) of the Financial Administration Act (FAA) 2003 Act 654 provides that “accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.”

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 65 and Other Statutory Funds for the year ended 31 December 2013 360. On the contrary, we noted that three Assemblies procured items totalling GH¢15,759.00 but failed to enter them in their store records. The breakdown is as follows:

Assembly Amount (GH¢) Wa East District 5,359.00 Nadowli District 3,400.00 Sissala West District 7,000.00 Total 15,759.00

361. We recommended that the management of the Assemblies should produce evidence of receipt and use of the store items, failing which the cost involved should be recovered from the authorising and Finance Officers.

Purchases without alternative quotations – GH¢40,343.50 362. Wa Municipal (GH¢31,540.00) and Sissala East District (GH¢8,803.50) Assemblies purchased goods and services amounting to GH¢40,343.50 without alternative quotations from at least three different sources in contravention of Section 43(1) of the Public Procurement Act, 2003 (Act 663).

363. We recommended that management should ensure strict compliance with the provisions of the Public Procurement Act.

Failure to account for fuel in log books – GH¢48,389.96 364. Regulation 1604 of Store Regulations requires that “a log book shall be maintained for each vehicle and particulars of receipts of fuel and lubricants shall be entered up daily in the log book by the driver.”

365. On the contrary, management of three Assemblies failed to ensure that drivers record fuel and lubricants bought, costing GH¢48,389.96 in their vehicle log books. The breakdown is shown below:

Assembly Amount (GH¢) Sissala East District 8,514.53 Lawra District 31,682.43 Wa Municipal 8,193.00 Total 48,389.96

366. We could not as a result confirm whether the Assemblies benefited from the use of the fuel and lubricants and accordingly recommended that management of the Assemblies account for the fuel, failing which the amount should be recovered from the authorizing officers and the Finance officers.

66 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 2013 Tax irregularities

Withheld taxes not remitted to GRA – GH¢1,247.90 367. Contrary to Section 87(1) of Internal Revenue Act, 2000 (Act 592) which require withholding agents to pay to the Commissioner-General, taxes that have been withheld or that should have been withheld within fifteen days after the end of the month in which the payment subject to withholding tax was made, we noted that the Wa East District Assembly deducted withholding taxes amounting to GH¢1,247.90 from payments to suppliers and service providers but failed to remit the amount to the Commissioner General.

368. We recommended that the amount should be paid to the Commissioner General without further delay.

Failure to obtain VAT invoices for VAT paid – GH¢2,990.00 369. Section 19(1) of the VAT Act 1998 (Act 546) provides that “a taxable person shall on making taxable supply of goods or services issue to the customers or the persons supplied, tax invoices in such form as shall be prescribed by regulations.”

370. Contrary to the above requirement, Wa East District Assembly paid VAT totalling GH¢2,990.00 for goods and services procured but failed to obtain VAT invoices for the amount paid.

371. Failure to collect VAT invoices for VAT paid leads to non-payment of VAT to the State by the supplier. We therefore recommended that management of the Assemblies should obtain the VAT invoices to support the payments made or recover the amounts from the suppliers and pay same to the GRA.

Purchases from non-VAT registered entities – GH¢24,000.53 372. Contrary to Regulation 183(4) of the FAR, 2004 (LI 1802) which states that “a department shall procure government stores from only VAT registered persons and any department that requires an exemption for specific cases shall apply to the minister with the necessary justification,” management of Wa Municipal Assembly procured goods worth GH¢160,003.52 from non-VAT registered entities without approval from the Minister of Finance, thereby avoiding the payment of GH¢24,000.53 as VAT to the State.

373. We recommended that management should ensure adherence to the provisions in the FAR to avoid sanctions.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 67 and Other Statutory Funds for the year ended 31 December 2013 VOLTA REGION

MANAGEMENT ISSUES

Introduction 374. In the Volta Region, the Administrator of Common Fund allocated a gross amount of GH¢19,072,799.95 to the 25 Assemblies which operated in the region during the 2013 financial year. Statutory and other deductions made by the Administrator was GH¢6,507,203.57 and this represented approximately 34.1% of the amount allocated. The Assemblies were left with net balance of GH¢12,565,596.38 for their operations for the year. Appendix ‘A’ attached provides information on the allocations to the individual Assemblies, deductions effected and the net balances.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢187,682.40 375. We noted that 10 Assemblies violated Part IX, Sections 13 and 14 of the Financial Memoranda by failing to support payment vouchers used in disbursing a total of GH¢187,682.40 with relevant supporting documents like invoices, statement of expenditure, receipts, etc. as shown below:

No. Assembly Amount (GH¢) 1. Municipal 28,685.00 2. 9,152.20 3. South Tongu 27,126.00 4. Ketu North 26,137.67 5. North 14,071.00 6. 26,907.04 7. Akatsi South 11,432.00 8. Agotime-Ziope 1,200.00 9. Adaklu 15,924.00 10. South Dayi 27,047.49 Total 187,682.40

376. In the absence of these supporting documents, we could not vouch for the genuineness of the transactions. We recommended that management of the Assemblies should provide all the relevant documents for our review, failing which the authorizing and finance officers should be surcharged with the amount involved.

68 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 2013 Misapplication of DACF – GH¢379,952.36 377. We noted that five Assemblies misapplied a total of GH¢379,952.36 from the Common Fund account on recurrent expenditures including payment of sitting allowances, fuel, T&Ts, Hotel accommodation, medical bills, electricity bills, haulage claims, outstanding staff wages and rent payments in contravention of Section 87(2) of the Local Government Act, 1993 (Act 462) and Regulation 179(1) of the FAR, 2004 (L.I 1802). The breakdown is shown below:

No. Assembly Amount (GH¢) 1. South Tongu 38,495.52 2. Krachi West 168,228.74 3. Krachi East 57,445.96 4. 81,827.10 5. 33,955.04 Total 379,952.36

378. To avoid depletion of funds earmarked for developmental programmes and projects, we recommended that the total amount misapplied should be transferred from the IGF to the Common Fund account.

Payment vouchers not pre-audited – GH¢131,019.99 379. Part XIII Section 1 of the FM of the MMDAs enjoins the Internal Auditor to pre- audit or cause to be pre-audited, all payment vouchers and their related supporting documents. We however, observed that South (GH¢76,513.30) and South Dayi (GH¢54,506.69) District Assemblies failed to submit payment vouchers used in paying GH¢131,019.99 for pre-auditing.

380. We recommended that management of the Assemblies should ensure that all payment vouchers are submitted to internal audit for pre-auditing before payments are effected.

Unretired imprests – GH¢164,841.43 381. Part IX, Section 39 of the Financial Memoranda for District Assemblies stipulates that “standing imprest shall be retired at the end of each financial year. Special imprests shall be retired within the period allowed.”

382. We observed however, that four Assemblies granted a total amount of GH¢275,438.33 to officials to undertake various assignments, but only GH¢110,596.90 was accounted for leaving a total of GH¢164,841.43 unaccounted for. Details are shown below:

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 69 and Other Statutory Funds for the year ended 31 December 2013 No. Assembly Amount Amount Amount Paid retired Outstanding (GH¢) (GH¢) (GH¢) 1. 130,444.50 35984.20 94,460.30 2. Nkwanta North 34,074.00 27,428.00 6,646.00 3. Krachi East 86,689.10 47,184.70 39,504.40 4. Keta Municipal 24,230.73 - 24,230.73 Total 275,438.33 110,596.90 164,841.43

383. We were unable to determine whether the amounts involved have been used in the interest of the Assemblies. We therefore recommended that officials should be compelled to account for the imprest granted them, failing which management should treat the amounts as personal loans and advances to be deducted from their salaries.

Unpresented payment vouchers – GH¢8,000.00 384. Regulation 1(1) of the FAR, 2004 enjoins public officers who are responsible for the conduct of financial business on behalf of the Government to keep proper records of all transactions and produce the records for inspection when called upon to do so by the Auditor–General.

385. During our audit, management of South Assembly could not produce two payment vouchers used in paying a total amount of GH¢8,000.00 for our review.

386. We urged management to produce the payment vouchers for our review or be surcharged with the total amount paid on the payment vouchers.

Unreceipted source deduction of DACF allocation – GH¢480,515.79 387. The Administrator of District Assemblies Common Fund (ADACF) Circular no DACF/CIR/01/123 of 4 June 2003 enjoins Assemblies to issue receipts for gross allocations before deductions and the Administrator to also issue receipts to cover all deductions made at source. The Guidelines for utilization of District Assemblies Common Fund further provides that “all releases of the DACF allocation should be receipted in gross in the Assembly’s cash book and any other deduction should be treated as expenditure.

388. Contrary to the above, we noted that the ADACF deducted a total amount of GH¢480,515.79 from the Common Fund allocation to Ketu North (GH¢242,754.74) and Akatsi South (GH¢237,761.05) District Assemblies without issuing receipts in acknowledgement of the amounts deducted, neither did the Assemblies also issue receipts to cover the gross amounts of funds released to them.

70 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 2013 389. We recommended that the Finance Officers should issue receipts to cover the gross amounts and obtain the required receipts from the ADACF to support the deductions made to ensure accurate financial reporting.

Unjustified deductions by DACF Administrator – GH¢664,832.41 390. We noted during the course of our audit that the Administrator of the DACF deducted a total amount of GH¢664,832.41 from the Common Fund allocation to Nkwanta North (GH¢177,040.00), South Dayi (GH¢239,053.40) and Agotime Ziope (GH¢248,739.01) District Assemblies without the prior knowledge, consent and approval of the Assembly. Correspondence available at the Assemblies indicated that although the amounts were deducted for sanitation improvement, fumigation, photo exhibition, NALAG diaries and dues, MAKS publication, among others, the Assemblies did not receive any item nor did they benefit from any of the services for which the monies were deducted.

391. We recommended that management should demand a refund of the monies deducted from the ADACF.

Funds released by ADACF not accounted for – GH¢15,000.00 392. The ADACF released an amount of GH¢15,000.00 to the Keta Municipal Assembly vide Bank of Ghana cheque No. 607770 to enable National Security undertake an official assignment in the Municipality. The cheque was duly acknowledged by the Assembly with GCR No. 5517209 of 5/11/12.

393. We observed that receipt of this amount was not recorded in the cash book of the Assembly and management alleged that the cheque was dishonoured by the Ghana Commercial Bank. When asked to produce the cheque to ascertain reasons for the dishonour, management indicated that the cheque has been sent back to the ADACF.

394. We recommended that management should investigate the issue and inform this office of the outcome.

Non-payment of District Education Fund levy – GH¢11,945.32 395. The 2013 Guidelines for the Utilization of the DACF directs that two percent of DACF quarterly releases should be transferred to the District Education Fund to finance scholarships, bursaries or repayment of loans to finance needy students with a proven record of good academic performance; and one percent to the District Response Initiative on HIV/AIDS and prevention of malaria.

396. Our audit disclosed that Ketu South Municipal Assembly failed to transfer the two per cent District Education Fund levy amounting to GH¢10,670.88 from its common fund allocation of GH¢533,543.85 during the year. In a similar development,

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 71 and Other Statutory Funds for the year ended 31 December 2013 management of the same Assembly transferred GH¢4,061.00, representing 0.76% of the total allocation to the District Response on HIV/AIDS, instead of one percent amounting to GH¢5,335.44, resulting in a shortfall of GH¢1,274.44.

397. Failure to transfer monies into the Funds could lead to some students dropping out of school as well as increase in HIV/AIDS and malaria prevalence in the District. We therefore urged the MCD to ensure compliance with the Guideline referred to above.

Payments not supported with expenditure warrant – GH¢120,010.06 398. Section 16(1a) of the Financial Administration Act 2003, (Act 654) provides that “payment shall not be made for work done, goods supplied or services rendered whether under a contract or not in connection with any part of the public service, unless in addition to any other voucher or certificate that is required, the head of the government department or any other officer authorized by the head of department certifies that the work has been performed, the goods supplied or the service rendered, and that the price charged is according to the contract or if not specified by the contract, is reasonable.”

399. We noted that between January and November 2013, the Assembly paid a total of GH¢120,010.06 on 15 payment vouchers for various Common Fund activities without authorized expenditure warrants.

400. For effective expenditure control and financial management, we recommended that management should ensure that every payment transaction is covered by expenditure warrants to allow for transparency and proper accountability of funds.

Unapproved overdraft – GH¢41,532.64 401. Section 88 of the Local Government Act, 1993 (Act 462) provides that “an Assembly may raise loans or obtain overdrafts within Ghana of such amount, from such sources, in such manner for such purpose and upon such conditions as the Local Government Minister in consultation with the Minister responsible for Finance, may approve; except that no approval is required where the loan or overdraft to be raised does not exceed GH¢2,000.00 and the loan or overdraft does not require a guarantee by the Central Government.”

402. We noted however, that the Assembly obtained an overdraft of GH¢41,532.64 from the National Investment Bank, Ho without the approval of the General Assembly and the Minister of Finance and the loan was mainly on administrative expenses and the funeral rites of the late former Volta Regional Minister and MP for Constituency, instead of using the loan on developmental projects.

72 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 2013 403. The Assembly ended up paying a total sum of GH¢3,295.72 as processing fees and interest on the overdraft. We recommended that management should comply with the provisions in Act 462 and also ensure that common fund receipts are used only on development projects that will benefit the communities.

MPs Common Fund irregularities – GH¢228,746.57

i. Failure to obtain receipts for payments made – GH¢28,489.00 404. Part IX Section 14 of the Financial Memoranda for MMDAs stipulates that official receipts shall be obtained in support of payment to Government Departments, State Enterprises and other Assemblies.

405. We noted during our audit of MP’s Common Fund that six Assemblies disbursed a total amount of GH¢28,489.00 as financial assistance to students of various institutions but failed to obtain official receipt to acquit the payments. The breakdown is as follows:

No. Assembly Amount (GH¢) 1. Krachi East 1,300.00 2. Krachi Ntsumuru 3,016.50 3. Ketu North 1,700.00. 4. South Dayi 9,939.50 5. 8,594.00 6. Krachi West 3,939.00 Total 28,489.00

406. Failure to acquit payments with receipts issued by payees could lead to fictitious payments. We recommended that management of the Assemblies should collect receipts covering all payments made to the institutions, failing which the Coordinating Directors and their Finance officer should be surcharged with the amounts.

ii. Unaccounted receipt of fund from the ADACF – GH¢30,525.28 407. Part VIII Section 1 of the Financial Memoranda for MMDAs states that “it shall be the duty of the Finance Officer to supervise and as far as possible, enforce the punctual collection of revenue and to take action that revenue collected and the receipts are properly brought to account.”

408. We noted during our audit that a transfer of GH¢30,525.28 on 23/7/2013 vide release letter No. DACF/05-16/Vol. 1/54 by the ADACF to the MP’s Common Fund account of Ketu South Assembly had not reflected in the Assembly’s bank statement neither had the amount been recorded in their books of accounts.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 73 and Other Statutory Funds for the year ended 31 December 2013 409. Management’s response at the time of the audit that frantic effort was being made to trace the whereabouts of the amount indicate that little or no effort have been made towards unravelling the mystery surrounding the disappearance of the money. We therefore recommended that management should investigate and retrieve the money to avoid being surcharged with the amount.

iii. Non-utilization of MP’s common fund – GH¢169,732.29 410. Members of Parliament are expected to assess the developmental needs of their constituencies and use their share of the Common Fund to meet those developmental needs in collaboration with the Assemblies.

411. We noted however, that Members of Parliament for Biakoye (GH¢113,322.31) and Krachi East (GH¢56,409.98) District Assemblies did not cause the use of their share of the Common Fund amounting to GH¢169,732.29. Their constituents have therefore been denied developmental projects that could address some of their needs whilst the monies are losing value in the bank.

412. We recommended that management of the Assemblies should liaise with the MPs as well as unit committee members and opinion leaders to assess the needs of their constituencies and use the funds allocated to the MPs for those purposes.

Contract irregularities

Overpayment of contract sum – GH¢2,650.75 413. Our examination of contract documents at Assembly disclosed that management awarded a contract for the supply and erection of nine sign boards to Messrs. Akpaliskos Enterprise, the lowest bidder, but paid the contractor GH¢9,441.50 instead of GH¢6,790.75, resulting in an overpayment of GH¢2,650.75.

Name of Supplier Total Amount Total Amount Excess Quoted (GH¢) Amount Paid Amount (GH¢) (GH¢) (GH¢) 5pcs 4pcs 9pcs Akpaliskos Enterprise 2,650.75 4,140.00 6,790.75 9,441.50 2,650.75 Freezing the World Ventures 3,795.00 4,830.00 8,625.00 - - Some Friends Eng. & Tr. Ent. 3,737.50 4,719.00 8,456.50 - -

414. We further noted that the amount of GH¢9,441.50 paid to the contractor was higher than the amount quoted by the highest bidder. We therefore recommended that the amount of GH¢2,650.75 paid in excess of the award value should be recovered from

74 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 2013 the contractor to chest, failing which the officials involved in approving and payment of the excess amount should be surcharged with the overpaid amount.

Payment made without inspection report – GH¢35,010.00 415. Part IX Section 70(a) of the Financial Memoranda for District assemblies provides that ‘no payment shall be made to a 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.’

416. We observed that Assembly made contract payments totalling GH¢35,010.00 to two contractors for works on feeder roads and electrification of substation without inspection reports by the works engineer or the monitoring team of the Assembly.

417. Without the inspection report we could not ascertain whether the projects were executed in accordance with specifications and whether the Assembly received value for money in the transactions. We recommended that management should ensure compliance with the provisions in the various financial enactments before payments are approved or risk being surcharged with the amount paid.

Wrongful payment of contingency to contractors – GH¢5,770.82 418. Regulation 39(2c) of the FAR 2004 (LI 1802) provides that ‘the head of 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.’ We noted that management of North Tongu Assembly released contingencies provided in three contracts totaling GH¢5,770.82 to three contractors without proper justification.

419. We observed that none of the contractors applied for extra funds, neither did they state any additional work carried out to warrant such payments. We did not also site any recommendation from a special committee or the District Tender Evaluation Committee for extra payments to be made to the contractors.

420. Management in a response to our observation, provided three hand written instructions from the District Engineer to the contractors, instructing them to carry out additional works on site due to the location of the projects together with variations in contract sums.

421. We view management’s response as untenable as the District Tender Evaluation Committee on whose recommendation the contracts were awarded are in a better position to handle such variation if need be. We therefore recommended that the amount of GH¢5,770.82 paid from the contingency provision should be recovered from

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 75 and Other Statutory Funds for the year ended 31 December 2013 the contractors, failing which the DCD, the DFO, the Budget Analyst and the DWD Engineer should be surcharged with the amount.

Completed project not put to use – GH¢68,781.07 422. The Assembly awarded a contract in October 2011 for the construction of a 10 Seater WC Toilet facility at Vakpo Market to Messrs Dakomer Co. Ltd at a contract sum of GH¢68,781.07. The project was completed and handed over to the Assembly in January 2013.

423. We noted during our visit to the project site that the toilet facility is not being used by the community because management has not ensured extension of water supply to the facility. The community had therefore been deprived of the use of the facility although a total of GH¢68,781.07 had been sunk into the project.

424. We recommended that management should take necessary steps to ensure that the project is put to use to the benefit of the community.

Variation of contract without approval by tender board & Assembly – GH¢25,075.50 425. Part IX Section 68 of the Financial Memoranda provides 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 the 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 that behalf and by the contractor.”

426. Section 87 of the Public Procurement Act, 2003 (Act 663) also stipulates that “where there is an aggregate increase in the original amount of the contract by more than 10% of the original price, a procurement entity shall inform the appropriate Tender Review Board.”

427. Contrary to the above requirements, management of Krachi West District Assembly in 2012, awarded the rehabilitation of Nkyenekyene – old Chantai feeder road to Messrs Nyira and Aseda Engineering Limited for a contract sum of GH¢107,184.00, but in June 2013 varied the contract by GH¢25,075.50, representing 23% of the initial contract sum without recourse to the Tender Review Board nor the Assembly.

428. We also noted that the DWD Engineer unilaterally approved a contract payment certificate of GH¢25,000.00 on the project without any inspection report from the Assembly’s Technical Monitoring Team contrary to Part IX, Section 70(a) of the Financial Memoranda for MMDAs.

76 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 2013 429. In the absence of appropriate authorization by the District Tender Review Board and the General Assembly, as well as a project inspection report, we could not vouch for the authenticity of the variation in the project and the payment made.

430. We recommended that management should seek retrospective approval from the District Tender Review Board and the endorsement of the General Assembly and also submit an inspection report on the work done, failing which the total amount paid as variation in cost should be recovered from the officials who approved and effected payment.

Failure to withhold retention – GH ¢7,269.10 431. Part IX Section 72 of the Financial Memoranda states that “every contract shall provide for at least ten percent of the 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.”

432. We observed that management of Nkwanta South District Assembly paid a contract sum of GH¢90,264.19 to Selgibarns Limited for the construction of a 3 Bedroom Semi-Detached Bungalow at Tokor without deducting retention fee of GH¢7,269.10. We noted during our visit to the project site that the electrical fittings were not completed.

433. We recommended that the Coordinating Director should ensure that the project is completed to the specifications stated in the contract documents or be held liable for the cost.

Failure to update contract register with contract payments – GH¢96,904.38 434. Part IX Section 74 of the FM for MMDAs states that “a contract register shall be maintained by the Assembly and shall be entered promptly as details become available.”

435. Our audit however, disclosed that Jasikan District Assembly made payments totalling GH¢40,583.41 on four different contracts but failed to record the details in the contract register. In a similar development, the Assembly failed to record payments made for contract works carried out by the Works Engineer of the Assembly totalling GH¢56,320.97 in the contract register.

436. Failure to update contract register with relevant information could impact negatively on project monitoring as well as overpayment of contract sum. We recommended that management should strengthen supervision of schedule officers to ensure effective project management.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 77 and Other Statutory Funds for the year ended 31 December 2013 Procurement and stores irregularities

Uncompetitive Procurement – GH¢119,802.67 437. Section 43(1) of the Public Procurement Act, 2003 (Act 663) provides that “a procurement entity shall obtain quotations from as many suppliers or contractors as practicable but from at least three different sources.”

438. We noted on the contrary that management of six Assemblies procured goods and services totaling GH¢119,802.67 without alternative quotations from other suppliers or service providers. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Krachi Ntsumuru 5,414.00 2. Akatsi South 12,272.45 3. Agotime–Ziope 22,814.00 4. Adaklu 21,355.00 5. South Dayi 18,578.28 6. Krachi East 39,368.94 Total 119,802.67

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

Payments made without works order – GH¢15,357.33 440. Regulation 1522 of the Stores Regulations, 1984 states that “a request to any of the listed workshops for repair or maintenance of an item of plant or machinery shall be made by means of Departmental Purchase Order, which shall in all cases be supported by a written estimate of the cost of repairs or other work required, signed by a manager or a supervisor of the workshop. The officer who signs the certificate of satisfactory completion of service must satisfy himself that the work has in fact been satisfactorily performed.”

441. We noted that management of Krachi West (GH¢9,116.33) and Krachi Ntsumuru (GH¢6,241.00) Assemblies paid a total of GH¢15,357.33 on repair and maintenance of official and other heavy duty vehicles without works orders and invoices showing the estimated cost of the repairs and certificates of satisfactory completion of work.

442. In the absence of the relevant works orders and certificates, we could not confirm whether the Assemblies received value for the monies paid. We recommended that management of the Assemblies should ensure that their Works Engineers inspect and

78 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 2013 issue appropriate certificates on the works carried out and this office notified accordingly.

Stores unaccounted for – GH¢92,675.00

i. Purchases not routed through stores – GH¢89,175.00 443. Section 35(2a) of the Financial Administration Act, 2003 (Act 654) states that “accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.”

444. We noted that four Assemblies purchased goods worth GH¢89,175.00 but failed to route them through the store records to enable the storekeepers effect appropriate entries in the store ledgers for financial reporting.

Assembly Amount (GH¢) Keta Municipal 57,000.00 Nkwanta North 6,875.00 South Dayi 22,950.00 Nkwanta South 2,350.00 Total 89,175.00

445. We recommended that management of the Assemblies should produce evidence of receipt and utilisation of the store items involved, failing which the amount should be recovered from the authorizing and finance officers.

ii. Missing air-conditioner – GH¢3,500.00 446. During physical inspection of equipment at the Keta Municipal Assembly, the storekeeper was unable to account for one split air-conditioner costing GH¢3,500.00.

447. We recommended that management should ensure that the air-conditioner is accounted for, failing which the cost should be surcharged to the storekeeper and deducted from his salary.

Fuel purchases not recorded in vehicle log books – GH¢46,382.86 448. Regulation 1604 of Store Regulations 1984 provides that “a vehicle log book shall be maintained for each vehicle and shall always be carried in the vehicle. Journeys undertaken shall be recorded and full particulars of receipts of fuel, oil and lubricants shall be entered up daily in the Log Book by the driver, and all journeys recorded shall be certified by the officer using the vehicle.”

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 79 and Other Statutory Funds for the year ended 31 December 2013 449. We noted that Keta Municipal (GH¢31,034.26) and Akatsi North (GH¢15,348.60) Assemblies failed to account for fuel purchased, valued at GH¢46,382.86 in their vehicle log books.

450. We could not as a result confirm whether the fuel was indeed purchased and used in the interest of the Assemblies. We recommended that the Coordinating Directors and their Finance Officers should show proof of purchase and use of the fuel or be surcharged with the amounts involved.

Non-compliance with public procurement procedures – GH¢16,381.00 451. Section 21(5) of the Public Procurement Act, 2003 (Act 663) provides that ‘a procurement entity shall not divide a procurement order into parts or lower the value of a particular order to avoid the application of the procedures for public procurement in this Act.’

452. Contrary to the above provision, management of the Assembly split a contract for re-wiring of the office, amounting to GH¢16,381.00 into two, that is re-wiring of the District Finance Office and the Assembly Hall (GH¢9,453.00) and re-wiring of DCD and DCE’s office (GH¢6,928.00), thereby avoiding the need to refer the procurement to the District Tender Review Board.

453. We recommended that management desist from practice of splitting contracts and comply with procedures outlined in the Procurement Act.

Failure to emboss office equipment – GH¢111,873.00 454. Contrary to Regulation 1513 of Stores Regulations 1984 which provides that every departmental plant number shall be clearly and conspicuously written on the item of plant or machinery for easy identification, equipment valued at GH¢111,873.00 were not embossed with identification numbers by the Keta Municipal (GH¢66,000.00) and Krachi Ntsumuru District (GH¢45,873.00) Assemblies.

455. Failure to emboss Assembly assets with identification numbers could result in theft of assets without detection. We urged management to ensure that the items are embossed as early as practicable.

TAX IRREGULARITIES

Non-deduction of withholding taxes – GH¢10,520.63 456. Contrary to Section 84(2) of the Internal Revenue Act 2000, (Act 592) which require that “tax shall be withheld from payments made to resident persons for goods and services in excess of fifty currency points,” management of Keta Municipal

80 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 2013 (GH¢6,576.76) and Jasikan District (GH¢3,943.87) Assemblies failed to withhold tax totaling GH¢10,520.63 from payments made for goods and services.

457. We recommended that the Coordinating Directors should ensure that taxes are withheld from payments made within the threshold provided in the Act to avoid sanctions.

Purchases from non-VAT registered entities – GH¢1,129.88 458. In contravention of Regulation 183(4) of the FAR, 2004 (LI 1802), the Nkwanta North District Assembly procured goods and services worth GH¢7,532.50 from non- VAT registered entities thereby avoiding the payment of GH¢1,129.88 as VAT to the State.

459. We recommended that management should desist from procuring from non- VAT registered entities and ensure that all future purchases are made from VAT registered entities.

Payment of VAT without VAT invoices/receipts – GH¢3,056.21 460. Section 19(1) of the VAT Act 1998 (Act 546) provides that “a taxable person shall on making taxable supply of goods or services issue to the customers or the persons supplied, tax invoices in such form as shall be prescribed by regulations.” Additionally, Regulation 19(1) of the VAT Regulations 1998 (L.I. 1646) also directs that a taxable person shall in accordance with Section 19(1) of the Act, on supply of taxable goods or service to a customer issue to the customer a tax invoice similar to “Form C” in the Schedule.

461. We noted however, that Nkwanta North District Assembly paid suppliers a total amount of GH¢48,680.93, which included VAT of GH¢3,056.21, but failed to obtain VAT invoices in acknowledgement of the payments. We recommended that the DCD and the DFO should be held personally liable to refund the VAT component of GH¢3,056.21 to the GRA or recover from the suppliers and pay same to the latter and this office informed accordingly.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 81 and Other Statutory Funds for the year ended 31 December 2013 WESTERN REGION

MANAGEMENT ISSUES

Introduction 462. Common Fund allocations to the 22 MMDAs which operated in the Western Region during the 2013 financial year was GH¢17,340,541.03. Out of this amount, a total of GH¢5,651,888.07 was deducted as statutory and other obligatory deductions which represented approximately 32.6% of the total amount allocated. The Assemblies were therefore left with a net receipt of GH¢11,688,652.96 to operate with during the year. Appendix ‘A’ attached provides a breakdown of the allocations to each Assembly, the deductions made and the net balances.

Details of findings and recommendations

Cash irregularities

Unsupported payments – GH¢420,097.91 463. Part IX Section 7 of the Financial Memoranda for MMDAs requires that relevant supporting documents should be attached to payment vouchers before payments are made. Our audit however, disclosed that management of nine Assemblies failed to enforce this regulation when a total of GH¢420,097.91 was paid from the Common Fund. The breakdown is shown below:

No. Assembly Amount (GH¢) 1. Juaboso District 91,180.71 2. Aowin District 42,834.00 3. Jomoro 11,900.00 4. Sefwi Wiawso Municipal 62,174.80 5. Prestea Huni Valley Dist. 6,350.00 6. Ellembelle District 137,687.40 7. Sefwi Akontombra District 25,956.00 8. Wassa Amenfi Central Dist. 22,995.00 9. Suaman District 19,020.00 Total 420,097.91

464. We recommended that management of the Assemblies should provide the necessary documents, failing which the amounts involved should be recovered from the Authorising officers and their Finance Officers.

82 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 2013 Borrowing from PWD Fund – GH¢16,623.33 465. Regulation 78 of FAR, 2004 states that “all disbursements out of a Special Fund shall be made by authorization of administering authority of the special funds, quoting the rules governing the operation of the fund and any rule pertaining to the particular transaction.” Paragraph 8(d) of the Guidelines for the disbursement and management of the District Assembly Common Fund for Persons With Disability (PWD) also makes it clear that “there shall be no borrowing from the account.”

466. Our review of the PWD Fund account at Wassa Amenfi West District Assembly disclosed that a total amount of GH¢16,623.33 was borrowed and used for purposes unrelated to PWD activities without recourse to the Committee with oversight responsibility over the fund as detailed below:

Date PV No. Particulars Payees Amount (GH¢) 4/2/13 01/02/13 Advance to support election of DCE 2,500.00 council of state member 12/9/13 01/09/13 Insurance premium for vehicle No. Unique 3,123.33 GN2389-11 Insurance Co. Ltd. 13/9/13 02/09/13 Advance to cater for the visit of DCE 1,000.00 Regional Police Commander 2/10/13 01/10/13 Advance to pay for T&T expense DCE 2,000.00 incurred 8/10/13 05/10/13 Conveying of DCE’s Official DCE 2,000.00 Vehicle 21/11/13 02/11/13 Expenses to cater for Assembly DCE 6,000.00 meeting Total 16,623.33

467. We further observed that 29 PWD applicants who requested for assistance in 2012 had to wait till 2013 before their requests were met.

468. Despite the recovery of GH¢14,123.33 or 85 per cent of the amount borrowed, we still recommended that management should desist from the practice and ensure strict compliance with Regulation 78 of the FAR 2004 and paragraph 8(d) of the Guidelines for the disbursement of the DACF.

Misapplication of DACF – GH¢82,000.00 469. Section 87(2) of the Local Government Act, 1993 Act 642 states that “for the avoidance of doubt all monies received by a District Assembly from the Assembly Common Fund shall be expended only on project which form part of the approved development plan of the district.”

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 83 and Other Statutory Funds for the year ended 31 December 2013 470. Contrary to the above, we noted that Wassa Amenfi East District Assembly transferred a total amount of GH¢82,000.00 from the Common fund Accounts into the HIPC, MP’s CF, IGF and the Project Monitoring accounts without reimbursing the Common Fund account.

471. As a result of this irregularity, some communities were denied funds for development projects. We recommended and management agreed to reimburse the DACF account with the amount involved.

Failure to support district response initiative on HIV/AIDS & malaria – GH¢4,055.03 472. Part I paragraph 4 of the Guide on Utilization of District Assemblies’ Common Fund 2013 requires that one per cent of the Fund should be used to support the District Response Initiative (DRI) on HIV/AIDS and prevention of malaria.

473. Our review of the DACF records revealed that the Wassa Amenfi West District Assembly failed to set aside GH¢4,055.03 representing one per cent of Common Fund receipts for the period to support the DRI on HIV/AIDS and malaria.

474. We were informed by the District Health Administration that there is a link between public education and rise/fall in HIV/AIDs and malaria cases, hence the need to take a serious view of this lapse.

475. We recommended that management of the Assembly should ensure this component of the DACF is always made available to support the DRI to minimize the incidence of malaria and HIV cases in the district.

Unpresented payment vouchers – GH¢101,826.79 476. Regulation 1(b) of the FAR, 2004 requires that ‘any public officer who is responsible for receipt, custody and disbursement of public and trust moneys shall keep proper records of all transactions and shall produce records of all transaction when called upon to do so by the Auditor-General or any officers authorised by him.’

477. We however, noted that the Prestea Huni Valley District Assembly failed to present 19 payment vouchers covering a total payment of GH¢101,826.79 for audit review.

478. Failure to present payment vouchers for audit review casts doubt over the authenticity of the payments involved. We recommended that management should ensure provision of the payment vouchers, failing which the amount should be recovered from the authorising and finance officers of the Assembly.

84 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 2013 Contract irregularities

Completed projects not being used – GH¢199,433.27 479. Our audit of the Jomoro District Assembly revealed that four completed projects costing GH¢199,433.27 were not being used by the communities more than a year after the projects were completed.

480. Non-utilisation of completed projects could result in their early deterioration resulting in financial loss to the Assembly. We recommended to management to ensure that the projects are handed over and put to immediate use.

Payment without inspection certificates – GH¢78,792.00 481. Part IX Section 70(a) of the Financial Memoranda stipulates 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 the certificate required, which shall be attached to the payment voucher.’

482. Our audit of the DACF Account at Jomoro District Assembly disclosed that a total payment of GH¢78,792.00 was made on various works carried out at the Assembly but the payment vouchers were not supported with performance certificates from the Works Engineer or any authorised personnel to indicate that satisfactory works have been carried out.

483. We recommended that in the absence of the relevant certificates of satisfactory completion of work, the amount should be recovered from the authorising and finance officers to chest.

Store and procurement irregularities

Failure to return motor bikes by former Assembly members (CF) 484. We observed that Bia West District Assembly procured motor bikes from their own resources in 2010 for the Assemblymen. Subsequently, the Ministry of Local Government and Rural Development supplied the Assembly members with new motor bikes, so they were asked to return the old motor bikes.

485. We noted that seven former Assembly members who lost the 2010 Assembly elections have failed to return their motor bikes as detailed below.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 85 and Other Statutory Funds for the year ended 31 December 2013 No. Name Electoral area Bike No. 1. Edmond Aduma Kyeremikrom M- 10-GR 4406 2. Kwateng David Kramokrom ,, ,, ,, ,, 4407 3. Francis Gyekye Asanteman ,, ,, ,, ,, 4412 4. Daniel Botchway Kwasarekrom ,, ,, ,, ,, 4413 5. Saka Adams Kwasi Nkrumah ,, ,, ,, ,, 4418 6. S. O. Owusu Topakrom ,, ,, ,, ,, 4421 7. Robert Kuma Sukusuku ,, ,, ,, ,, 4405

486. This is a clear violation of the agreement made between the District Assembly and the Assembly members which required that the Assembly members should return the bikes in a good condition to the Assembly after their term of office had ended.

487. We recommended that the DCE and DCD should use the appropriate agencies to retrieve the motor bikes in good condition from the former Assembly members.

Tax irregularities

Payment of VAT without VAT invoice – GH¢3,909.90 488. Section 19(1) of the VAT Act 1998 (Act 546) provides that “a taxable person shall on making taxable supply of goods or services issue to the customers or the persons supplied, tax invoices in such form as shall be prescribed by regulations.” Additionally, Regulation 19(1) of the VAT Regulations 1998 (L.I. 1646) also directs that a taxable person shall in accordance with Section 19(1) of the Act, on supply of taxable goods or service to a customer issue to the customer a tax invoice similar to “Form C” in the Schedule.

489. We noted however, that Wassa Amenfi East (GH¢1,329.00) and Jomoro (GH¢2,580.90) District Assemblies paid VAT totalling GH¢3,909.90 to suppliers of goods and services but failed to collect receipts for the payments made.

490. We recommended that management of the Assemblies should obtain the appropriate VAT invoices from the suppliers involved, failing which the amounts should be recovered from the DFOs and paid to the GRA.

Non-remittance of withholding tax to GRA – GH¢25,884.65 491. Contrary to Section 87(1) of the Internal Revenue Act, 2000 (Act 592) which require withholding agents to pay withheld taxes to the Commissioner-General within 15 days after the end of the month in which the payments subject to withholding tax were made, the four Assemblies listed below did not remit a total amount of

86 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 2013 GH¢25,884.65 withheld from payments made to contractors and suppliers during the year. The breakdown is shown below:

Assembly Amount (GH¢) Wassa Amenfi East District 2,020.93 Bia West District 1,206.33 Prestea Huni Valley District 7,064.62 Sefwi Akontombra District 15,592.77 Total 25,884.65

492. We recommended that management of the Assemblies should ensure that the amount withheld are remitted to the GRA without further delay.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 87 and Other Statutory Funds for the year ended 31 December 2013 PART IV

DISTRICT DEVELOPMENT FACILITY

Introduction 493. We reviewed the accounts of the District Development Facility (DDF) activities as part of our audit of the Assemblies.

494. The DDF is a performance based facility granted to MMDAs by a group of Development Partners. For the year under review, AFD, CIDA, DANIDA, and KfW made contributions to the DDF. contributes to the facility through the District Assemblies’ Common Fund (DACF). The facility is given to the Assemblies to support their developmental projects as well as capacity building activities.

495. Allocation of funds is based on an assessment of the operational and financial performance of the Assemblies by a procedure referred to as the Functional Organisational Assessment Tools (FOAT). For the year under review, a total amount of GH¢73,000,000.00 was released in one tranche to the qualified Assemblies in March 2013. The table below shows the FOAT number, category of the release, month of release, number of MMDAs that qualified and the total amount released. The details are found in Appendix D attached.

FOAT No. Category Month of No. of Amount (GH¢) release MMDAs IV (2nd Tranche) Investment – 58% March 2013 208 73,000,000.00

ASHANTI REGION

Financial Reporting

496. In Ashanti Region, 27 out of the 30 Assemblies which operated during the 2013 financial year were allocated a DDF of GH¢10,218,166.26. The release was made in one tranche in March 2013 as shown in Appendix ‘D’ attached to this report.

88 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 2013 BRONG AHAFO REGION

Financial reporting

497. A total DDF of GH¢9,180,778.58 was allocated to the 27 Assemblies in the Brong Ahafo Region for the 2013 financial year. The release was made in March as shown in Appendix ‘D’ attached to this report.

Management Issues

Cash irregularities

Unsupported payments – GH¢23,947.00 498. Regulation 39(2c&d) of the FAR 2004 require the head of the accounts section to control disbursements of funds and to ensure that transactions are properly authenticated to show that amounts are due and payable and any disbursement that does not meet the requirements is rejected.

499. A total amount of GH¢23,947.00 disbursed by three Assemblies were not supported with relevant supporting documents and therefore did not meet the above requirements. The lapse arose due to laxity on the part of the Finance Officers. The Assemblies and the unsupported amounts are shown below:

Assembly Amount (GH¢) Asunafo South District 1,000.00 Asunafo North Municipal 5,289.50 Tain District 17,657.50 Total 23,947.00

500. Payments not properly substantiated could lead to payment for goods/services not delivered or rendered. We recommended that management should provide the necessary records to authenticate the payments or the amounts recovered from the Finance Officers and the authorizing officers of the Assemblies involved.

Failure to obtain official receipts from payees – GH¢320,631.31 501. Part IX Section 13 of the Financial Memoranda for MMDAs require written acknowledgment in ink by the payee on the payment voucher or the attachment to the payment voucher of the payee’s official receipt.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 89 and Other Statutory Funds for the year ended 31 December 2013 502. We observed that payments totalling GH¢320,631.31, made to contractors by three Assemblies were not supported with official receipts to prove that the monies were received by the appropriate beneficiaries. The breakdown is shown below:

Assembly Amount (GH¢) Techiman North District 24,626.27 Asunafo North Municipal 55,541.66 Tain District 240,463.38 Total 320,631.31

503. We urged the DCDs to ensure that the Finance and schedule officers obtained the requisite receipts to authenticate the payments or the amount recovered from them.

Unaccounted imprest – GH¢1,000.00 504. Contrary to Part IX, Section 39 of the Financial Memoranda for MMDAs which require imprests to retired after the execution of the assignments, management of Asunafo North Municipal Assembly did not ensure retirement of GH¢1,000.00 imprest given to Mr. Lawontong Vincent, a senior executive officer of the Assembly at the close of December 2013.

505. We recommended that management should ensure the immediate retirement of the amount, failing which it should be converted into a loan and deducted from the officer’s salary.

Contract irregularities

Execution of unapproved projects – GH¢105,000.00 506. Part 4, Section 4.1.2(a) of the DDF operational manual of October, 2012 provides that allowable expenditures will be those covered by the approved medium term development plan and annual action plans of the Assembly.

507. Contrary to the above requirement, our review of the DDF records disclosed that management of Techiman South District Assembly awarded the construction of a five and three bedroom Teachers’ quarters at Weila and Apesika respectively at the contract sum of GH¢65,000.00 and GH¢40,000.00 which were not included in the approved Medium Term Development Programme (MTDP) and the 2012 and 2013 Annual Action Plans.

90 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 2013 508. Management explained that, the lapse occurred as a result of promises made to the two communities in the District by the DCE during some of his tours. This is unacceptable since approval for the modification to the development plans could have been obtained.

509. This has denied the Assembly, the completion of a permanent office accommodation for the District Agricultural Unit of MOFA and other projects that were contained in the approved plan. We recommended that the Regional Co-ordinating Council should sanction the DCE for his flagrant disregard for the provisions in the DDF Operational Manual and ensure the non-occurrence of such breaches.

Payment for monitoring without report – GH¢8,966.00 510. Part IX, Section 70(a) of the Financial Memoranda for MMDAs require provision of reports on inspection carried out on work done before payments are made to contractors. We noted however, that management of Tain District Assembly made payments to the tune of GH¢8,966.00 from the DDF account on monitoring of projects but failed to provide reports on the monitoring activities carried out to warrant the payments made.

511. The basis and justification under which the payments were made could not be ascertained. We recommended that in the absence of the monitoring reports, the monies paid should be recovered from the beneficiaries to chest and this office notified accordingly.

Irregularities of contract execution – GH¢80,900.00 512. The District Tender Committee of Tano South District Assembly awarded a contract for the reshaping of selected feeder roads (25.0 km) at a total contract sum of GH¢80,900.00 to Messrs Ricanda Company Ltd. We noted that the selected roads were not specified in the contract documents, neither had the Assembly attached drawings and photographs taken before and after the completion of the works as well as minutes on site meetings with the contractor. We did not also see an acceptance letter from the contractor.

513. The absence of such important documentation could lead to payment for non- executed works or shoddy work. We recommended that management should provide the above mentioned documentation for our review, failing which the Tender Committee, the District Engineer, the DCD and DCE should be collectively surcharged with the contract amount.

Unapproved variation – GH¢30,440.50 514. Part IX, Section 68 of FM states that “no alterations shall be made to any contract or schedule or specification thereof except on the recommendation of the District

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 91 and Other Statutory Funds for the year ended 31 December 2013 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 authorised by the Assembly to act on that behalf, and by the Contractor.”

515. Our review of contract payments revealed that the tender committees of two Assemblies reviewed contract sums upward by GH¢30,440.50 instead of referring to the Tender Review Board in contravention with the law quoted above. Details are shown below:

Assembly Contract Name of contractor Variation (GH¢) Jaman South Dist. 10 boreholes M/S Camero Co. Ltd. 8,000.00 Asunafo North Mun. Police Station at Mim M/S Safrim Const. Ltd. 22,440.50 Total 30,440.50

516. We recommended that management of the Assemblies should ensure strict adherence to the provisions in the Financial Memoranda and avoid being sanctioned in accordance with Section 92(1) of the Public Procurement Act, 2003 (Act 663).

Completed project not in use – GH¢164,571.26 517. We noted that Asunafo North Municipal Assembly has constructed a Police Station at Mim at a total cost of GH¢164,571.26 but have failed to put it to use after satisfactory completion.

518. Management explained that they were yet to commission the place for use. To avoid pilferage of fittings and general deterioration, we recommended that the Station should be commissioned for use without further delay.

Tax irregularities

Purchases from non-VAT registered suppliers – GH¢4,466.31 519. Contrary to Regulation 183(4) of FAR 2004 which require government stores to be procured from only VAT registered persons, Asunafo South District Assembly procured goods and services from non-VAT registered entities thereby avoiding the payment of GH¢4,466.31 as VAT to the State.

520. We recommended to the DCD to ensure compliance with provisions of the FAR.

92 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 2013 CENTRAL REGION

Financial reporting

521. For the 2013 financial year, 18 out of the 20 MMDAs in the Central Region were allocated GH¢4,838,918.95 as their share of the DDF. The release was made in March as shown in Appendix ‘D’ to this report.

EASTERN REGION

Financial reporting

522. The 26 MMDAs in the Eastern Region were allocated a total of GH¢7,782,316.58 as their share of the DDF for the 2013 financial year. The release, which came in one tranche, was made in March as shown in Appendix ‘D’ to this report.

GREATER ACCRA REGION

Financial reporting

523. A total DDF of GH¢4,727,690.17 was allocated to the 16 MMDAs in the Greater Accra Region for the 2013 financial. The release was made in one tranche in March as shown in Appendix ‘D’ attached to this report.

Management Issues

Cash irregularities

Unsupported payments – GH¢20,044.00 524. La Nkwantanang Madina (GH¢14,044.00) and Ga East (GH¢6,000.00) Municipal Assemblies paid GH¢20,044.00 for goods supplied and services rendered without relevant supporting documents in contravention of Part IX Sections 7 and 13 of the Financial Memoranda for MMDAs which require the attachment of original invoices and the payee’s official receipt or written acknowledgment in ink by the payee on the payment voucher.

525. We recommended that management of the Assemblies should either provide the supporting documents to properly acquit the vouchers or recover the amounts involved from the Coordinating Directors and the Finance Officers.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 93 and Other Statutory Funds for the year ended 31 December 2013 Contract Irregularities

Under-deduction of retention money – GH¢6,175.75 526. Part IX Section 72 of the Financial Memoranda for MMDAs states that “every contract shall provide for at least ten percent of the sum to be paid to a contractor to be retained and shall specify the period after the completion of the contract for which such sum shall be retained.”

527. We noted however, that the La Nkwantanang Madina Municipal Assembly awarded a contract for GH¢82,953.73 to Messrs Prefos Limited and in effecting payment, deducted GH¢2,119.62 instead of GH¢8,295.37 resulting in under-deduction of GH¢6,175.75.

528. To avoid losses to the Assembly in case of defects in contract execution, we recommended that management should adhere to the provisions in the Financial Memoranda.

Payments without monitoring reports – GH¢40,970.21 529. The Ningo Prampram District Assembly paid a total amount of GH¢40,970.21 to four contractors between June and October 2013 for projects executed without monitoring reports to show that the projects were satisfactorily executed as required by Part IX Section 70(a) of the Financial Memoranda.

530. We recommended to management of the Assembly to ensure that all payments to contractors are supported with monitoring reports to avoid payments for no work done or poorly executed projects. Meanwhile management was urged to produce monitoring reports on the projects paid for.

NORTHERN REGION

Financial reporting

531. The 26 MMDAs in the Northern Region were allocated District Development Facility of GH¢13,707,767.62 for the 2013 financial year. The release was made in March 2013 as shown in Appendix ‘D’ attached to this report.

94 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 2013 UPPER EAST REGION

Financial reporting

532. For the 2013 financial year, the 13 MMDAs in the Upper East Region were allocated GH¢4,846,533.37 as their share of the District Development Facility. The release was made in March as shown in Appendix ‘D’ attached to this report.

UPPER WEST REGION

Financial reporting

533. The 11 MMDAs in the Upper West Region were allocated a total of GH¢4,713,605.10 as their share of the DDF for the 2013 financial year. The release, which was in one tranche, was made in March as shown in Appendix ‘D’ to this report.

Management issue

Contract irregularity

Delay in project execution – GH¢496,101.10 534. The three Assemblies listed below awarded contracts for 12 projects under the DDF between the first quarter of 2012 and the first quarter of 2013 to be completed between four and twelve months at a total cost of GH¢876,270.05.

Assembly No of Contract Sum Amount paid Projects (GH¢) (GH¢) Wa East District 1 43,877.87 31,033.69 Sissala West District 7 444,363.98 237,499.39 Wa West District 4 388,028.20 227,568.02 Total 12 876,270.05 496,101.10

535. During our inspection of projects, we noted delays in project execution and these were due mainly to failure of the Assemblies to commit enough resources to the projects as well as delay in the release of funds by the DDF Secretariat. As a result, we observed that most of the contractors have abandoned the projects.

536. Delay in project execution eventually results in additional cost as prices of building materials continue to rise and this could lead to shoddy work by contractors. We recommended that management of the Assemblies should endeavour to prioritise these ongoing projects and commit funds to ensure their early completion.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 95 and Other Statutory Funds for the year ended 31 December 2013 VOLTA REGION

Financial reporting

537. A total DDF of GH¢6,927,527.01 was allocated to 24 out of the 25 Assemblies in the Volta Region for the 2013 financial year. The release was made in March 2013 as shown in Appendix ‘D’ to this report.

WESTERN REGION

Financial reporting

538. In the Western Region, 20 out of the 22 Assemblies which operated during the 2013 financial year were allocated District Development Facility of GH¢6,056,696.40. The release was made in March 2013 as shown in Appendix ‘D’ attached to this report.

Management Issues

Contract irregularities

Completed projects not being used – GH¢422,739.22 539. We noted at Wassa Amenfi West District Assembly that four completed DDF projects valued at GH¢442,739.22, which have been handed over to the Assembly are yet to be put to use. The details are shown below:

Project Location Date handed over Value (GH¢) Slaughter House Asankrangwa May 2013 35,999.10 Maternity Block Asankrangwa November 2013 118,611.12 District Police Headquarters Asankrangwa October 2013 215,038.35 3 Unit Classroom Breman 53,090.65 Total 422,739.22

540. We also noted that the projects are overgrown with weeds and infested with reptiles. We were informed that the only thing left to be done is to commission the projects for use but management could not proffer any reason for the delay in commissioning the projects.

96 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 2013 541. The communities are thereby denied the use of the projects which they urgently need. Further delay in putting the facilities to use could cause public disaffection as we were informed that management of the Catholic Hospital are frustrated over the non- use of the maternity block and the inability of children in the Bremen Community to use the completed 3 unit classroom block.

542. We recommended that management should as a matter of urgency, take necessary steps to commission the facilities to serve the needs of the communities.

Overpayment on contract sum – GH¢3,176.30 543. Regulation 45 of the FAR 2004 states that “if any expenditure is made in excess of the amount 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.”

544. Our review of project expenditure at the Shama District Assembly disclosed that management paid Fikopat Enterprise GH¢36,489.01 for a 10-Seater Aqua Privy Toilet at Grabodo instead of GH¢33,312.71 resulting in an overpayment of GH¢3,176.30.

545. We recommended that management should recover the overpayment from the contractor to chest. Management has taken note of the recommendation and notified the contractor to take the necessary steps to refund the amount overpaid to the Assembly.

Part payment for unexecuted contract – GH¢4,000.00 546. We noted during our audit that the Bibiani/Anhwiaso/Bekwai District Assembly paid GH¢4,000.00 out of a contract sum of GH¢9,810.00 as advance to Messrs Emmanuel Enterprise (Sefwi Bekwai) for the manufacture and supply of 150 pieces of school dual desks for schools within the District by March 2013. As at the time of audit, none of the desks had been supplied and the whereabouts of the contractor cannot be traced.

547. As at the close of audit, the whereabouts of the contractor could not be traced. The Assembly’s failure to obtain security bond before granting him the advance attributed to the lapse.

548. We urged management to endeavour to retrieve the advance payment of GH¢4,000.00, failing which the amount should be recovered from officials who authorized and effected the payment.

Report of the Auditor–General on the Management and Utilisation of District Assemblies’ Common Fund (DACF) 97 and Other Statutory Funds for the year ended 31 December 2013 Store and procurement irregularity

Uncompetitive procurements – GH¢85,710.52 549. Contrary to Section 43(1) of the Public Procurement Act 2003 (Act 663) which require that procurement entities shall request quotations from as many suppliers or contractors as practicable but from at least three different sources, our audit disclosed that Ellembelle District Assembly procured various store items totalling GH¢85,710.52 without sourcing for alternative price quotations from at least three different sources.

550. In the circumstance, we could not ascertain whether the Assemblies obtained value for money in the transactions. We urged the Chief Executive and Coordinating Director to ensure compliance with the provisions of the Public Procurement Act at all times.

Tax irregularities

Unremitted withholding tax – GH¢25,708.88 551. Section 87(1) of the Internal Revenue Act, 2000 (Act 592) requires a tax withholding agent to remit taxes that has been withheld to the Commissioner-General of the GRA within 15 days after the end of the month in which the withholding tax was deducted.

552. On the contrary, we noted that two Assemblies, namely Tarkwa Nsuaem Municipal (GH¢23,070.89) and Bibiani/Anhwiaso/Bekwai District (GH¢2,637.99) withheld taxes amounting to GH¢25,708.88 from contractors and service providers but failed to remit the amounts to the GRA.

553. The State is accordingly denied the use of these funds in other sectors of the economy. We recommended that management should remit the amount to the GRA without further delay.

98 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 2013 APPENDIX A SUMMARY OF COMMON FUND ALLOCATIONS, DEDUCTIONS AND NET AMOUNT RELEASED % OF NO REGION GROSS AMOUNT DEDUCTIONS NET RELEASE DEDUCTIONS 1 ASHANTI 24,304,127.48 9,629,098.26 39.62 14,675,029.22 2 BRONG AHAFO 20,895,790.80 7,265,284.60 34.77 13,630,506.20 3 CENTRAL 15,928,267.18 5,289,812.06 33.21 10,638,455.12 4 EASTERN 19,956,289.25 6,633,822.28 33.24 13,322,466.97 5 GREATER ACCRA 16,279,585.31 4,940,277.73 30.35 11,339,307.58 6 NORTHERN 21,106,162.54 6,519,034.34 30.89 14,587,128.20 7 UPPER EAST 10,361,662.65 2,948,180.78 28.45 7,413,481.87 8 UPPER WEST 8,339,131.20 2,705,464.49 32.44 5,633,666.71 9 VOLTA 19,072,799.95 6,507,203.57 34.12 12,565,596.38 10 WESTERN 17,340,541.03 5,651,888.07 32.59 11,688,652.96 GRAND TOTAL 173,584,357.39 58,090,066.18 33.47 115,494,291.21 APPENDIX A ASHANTI NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 ADANSI NORTH 706,721.38 172,357.51 24.39 534,363.87 2 ADANSI SOUTH 706,736.25 243,594.59 34.47 463,141.66 3 AFIGYA KWABRE 800,111.83 251,662.36 31.45 548,449.47 4 AHAFO ANO NORTH 720,782.99 330,466.51 45.85 390,316.48 5 AHAFO ANO SOUTH 803,467.00 424,962.62 52.89 378,504.38 6 AMANSIE CENTRAL 779,781.66 488,855.31 62.69 290,926.35 7 AMANSIE WEST 819,796.32 353,703.35 43.15 466,092.97 8 ASANTE AKIM CENTRAL MUN. 862,653.04 325,360.49 37.72 537,292.55 9 ASANTE AKIM NORTH MUN. 703,316.01 196,250.60 27.90 507,065.41 10 ASANTE AKIM SOUTH 690,850.75 244,484.71 35.39 446,366.04 11 ASOKORE MAMPONG MUN. 1,021,186.89 298,468.58 29.23 722,718.31 12 ATWIMA KWANWOMA 705,007.68 405,296.03 57.49 299,711.65 13 ATWIMA MPONUA 742,179.10 252,334.31 34.00 489,844.79 14 ATWIMA NWABIAGYA 877,671.63 288,508.55 32.87 589,163.08 15 BEKWAI MUNICIPAL 709,350.93 432,300.32 60.94 277,050.61 16 BOSOME FREHO 913,014.47 209,221.65 22.92 703,792.82 17 BOSOMTWI 695,309.43 305,424.99 43.93 389,884.44 18 EJISU JUABEN MUNICIPAL 703,562.20 427,353.55 60.74 276,208.65 19 EJU/SEKYEDUMASE MUN. 806,075.74 234,979.44 29.15 571,096.30 20 KUMASI METRO. 1,798,001.98 818,198.88 45.51 979,803.10 21 KWABRE EAST 689,605.93 321,606.74 46.64 367,999.19 22 MAMPONG MUNICIPAL 690,741.68 414,410.37 59.99 276,331.31 23 OBUASI MUNICIPAL 848,092.00 421,314.61 49.68 426,777.39 24 OFFINSO MUNICIPAL 695,750.90 254,226.41 36.54 441,524.49 25 OFFINSO NORTH 700,648.67 250,012.24 35.68 450,636.43 26 SEKYERE AF./PLAINS 737,281.53 196,359.29 26.63 540,922.24 27 SEKYERE CENTRAL 1,006,323.62 246,720.23 24.52 759,603.39 28 SEKYERE EAST 714,621.86 293,133.45 41.02 421,488.41 29 SEKYERE KUMAWU 848,898.60 282,376.16 33.26 566,522.44 30 SEKYERE SOUTH 806,585.41 245,154.41 30.39 561,431.00 TOTAL 24,304,127.48 9,629,098.26 39.62 14,675,029.22 APPENDIX A BRONG AHAFO NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 ASUNAFO NORTH MUN. 758,219.91 243,600.30 32.13 514,619.61 2 ASUNAFO SOUTH 889,627.58 300,571.81 33.79 589,055.77 3 ASUTIFI NORTH 717,374.63 211,995.60 29.55 505,379.03 4 ASUTIFI SOUTH 713,000.25 196,881.60 27.61 516,118.65 5 ATEBUBU AMANTIN 749,366.63 419,475.83 55.98 329,890.80 6 BANDA 720,148.82 195,704.48 27.18 524,444.34 7 BEREKUM MUNICIPAL 711,176.98 455,852.02 64.10 255,324.96 8 DORMAA CENTRAL MUN. 777,857.28 326,289.15 41.95 451,568.13 9 DORMAA EAST 700,345.04 339,591.10 48.49 360,753.94 10 DORMAA WEST 751,861.16 233,526.02 31.06 518,335.14 11 JAMAN NORTH 716,579.94 201,693.06 28.15 514,886.88 12 JAMAN SOUTH 738,140.15 230,742.05 31.26 507,398.10 13 KINTAMPO MUNICIPAL 795,295.61 383,264.94 48.19 412,030.67 14 KINTAMPO SOUTH 741,788.81 301,086.47 40.59 440,702.34 15 NKORANZA NORTH 842,060.46 287,961.25 34.20 554,099.21 16 NKORANZA SOUTH MUN. 733,965.35 259,748.69 35.39 474,216.66 17 PRU 898,168.86 202,274.14 22.52 695,894.72 18 SENE EAST 845,164.77 219,104.53 25.92 626,060.24 19 SENE WEST 834,894.44 225,071.67 26.96 609,822.77 20 SUNYANI MUNICIPAL 772,841.91 297,866.88 38.54 474,975.03 21 SUNYANI WEST 786,034.50 240,815.32 30.64 545,219.18 22 TAIN 724,154.68 201,717.30 27.86 522,437.38 23 TANO NORTH 858,362.15 202,146.76 23.55 656,215.39 24 TANO SOUTH 987,467.53 231,759.89 23.47 755,707.64 25 TECHIMAN MUNICIPAL 686,744.60 267,698.37 38.98 419,046.23 26 TECHIMAN NORTH 737,693.23 308,781.52 41.86 428,911.71 27 WENCHI MUNICIPAL 707,455.53 280,063.85 39.59 427,391.68 TOTAL 20,895,790.80 7,265,284.60 34.77 13,630,506.20 APPENDIX A CENTRAL NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 ABURA/ ASEBU/KWAN. 702,575.63 201,648.24 DEDUCTIONS 28.70 500,927.39 2 AGONA EAST 834,599.52 290,255.13 34.78 544,344.39 3 AGONA WEST MUN. 711,607.23 286,277.92 40.23 425,329.31 4 AJU/ENY/ESSIAM 736,592.04 202,357.10 27.47 534,234.94 5 ASI/ODO/BRAKWA 854,158.44 267,266.63 31.29 586,891.81 6 ASSIN NORTH MUN. 869,215.26 330,048.15 37.97 539,167.11 7 ASSIN SOUTH 730,878.38 214,790.29 29.39 516,088.09 8 AWUTU SENYA 842,115.79 350,294.76 41.60 491,821.03 9 AWUTU SENYA EAST MUNICIPAL 857,477.17 297,944.70 34.75 559,532.47 10 CAPE COAST METRO. 919,992.08 490,737.76 53.34 429,254.32 11 EFFUTU MUNICIPAL 917,855.66 261,417.14 28.48 656,438.52 12 EKUMFI 754,125.84 196,113.20 26.01 558,012.64 13 GOMOA 802,426.22 250,067.77 31.16 552,358.45 14 GOMOA EAST 976,718.78 201,925.51 20.67 774,793.27 15 KOM/EDI/EGU/ABI MUN. 733,223.80 242,346.31 33.05 490,877.49 16 WEST MUN. 726,375.41 299,554.80 41.24 426,820.61 17 TWIFO ATI-MORKWA 687,325.47 216,699.44 31.53 470,626.03 18 TWIFO HEMANG/LOWER/DEN. 690,201.01 197,408.64 28.60 492,792.37 19 UPP. DENKY. EAST MUN. 693,758.20 295,220.03 42.55 398,538.17 20 UPPER DENKYIRA WEST 887,045.25 197,438.54 22.26 689,606.71 TOTAL 15,928,267.18 5,289,812.06 33.21 10,638,455.12 EASTERN APPENDIX A NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 AKUAPEM SOUTH 689,908.39 317,774.55 DEDUCTIONS 46.06 372,133.84 2 AKUAPIM NORTH MUNICIPAL 696,088.01 339,784.08 48.81 356,303.93 3 AKYEMANSO 877,463.44 222,782.88 25.39 654,680.56 4 ASUOGYAMAN 743,437.38 279,778.99 37.63 463,658.39 5 ATIWA 718,837.81 264,700.29 36.82 454,137.52 6 737,783.31 219,660.91 29.77 518,122.40 7 BIRIM CENTRAL MUNICIPAL 780,383.76 304,298.01 38.99 476,085.75 8 BIRIM NORTH 734,747.50 202,351.19 27.54 532,396.31 9 BIRIM SOUTH 810,905.22 201,994.89 24.91 608,910.33 10 DENKYEMBOUR 832,552.37 242,964.17 29.18 589,588.20 11 EAST AKIM MUNICIPAL 692,199.82 267,668.66 38.67 424,531.16 12 FANTEAKWA 697,645.35 206,906.47 29.66 490,738.88 13 KWAEBIBIRIM 727,165.69 230,286.93 31.67 496,878.76 14 KWAHU AFRAM PLAINS SOUTH 838,939.40 246,984.60 29.44 591,954.80 15 KWAHU EAST 757,313.87 201,823.40 26.65 555,490.47 16 KWAHU NORTH 763,026.38 238,381.68 31.24 524,644.70 17 KWAHU SOUTH 742,852.52 197,577.13 26.60 545,275.39 18 KWAHU WEST MUNICIPAL 734,327.27 290,550.63 39.57 443,776.64 19 LOWER MANYA KROBO 820,939.48 236,727.00 28.84 584,212.48 20 NEW JUABEN MUNICIPAL 828,117.62 396,143.75 47.84 431,973.87 21 / 696,697.04 277,629.43 39.85 419,067.61 22 SUHUM MUNICIPAL 732,248.17 228,143.98 31.16 504,104.19 23 UPPER MANYA KROBO 804,816.82 197,175.41 24.50 607,641.41 24 UPPER WEST AKIM 876,646.81 251,505.27 28.69 625,141.54 25 WEST AKIM MUNICIPAL 869,050.62 363,320.96 41.81 505,729.66 26 YILO KROBO MUNICIPAL 752,195.20 206,907.02 27.51 545,288.18 TOTAL 19,956,289.25 6,633,822.28 33.24 13,322,466.97 APPENDIX A GREATER ACCRA NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 ACCRA METRO. 1,889,683.76 487,840.77 DEDUCTIONS 25.82 1,401,842.99 2 LA DADE-KOTOPON MUNICIPAL 1,029,583.90 275,394.66 26.75 754,189.24 3 LEDZEKUKU-KROWOR MUN. 966,718.10 419,840.88 43.43 546,877.22 4 METRO. 1,047,658.81 344,446.29 32.88 703,212.52 5 KPONE AKATAMANSO 1,091,653.17 197,193.29 18.06 894,459.88 6 MUNICIPAL 1,167,955.40 339,531.23 29.07 828,424.17 7 MUNICIPAL 857,308.46 297,944.16 34.75 559,364.30 8 GA WEST MUNICIPAL 1,054,542.47 475,191.56 45.06 579,350.91 9 GA SOUTH 1,096,120.06 428,599.57 39.10 667,520.49 10 GA CENTRAL MUNICIPAL 1,062,241.71 276,399.17 26.02 785,842.54 11 GA EAST MUNICIPAL 939,638.11 303,607.63 32.31 636,030.48 12 LA NKANTANANG MADINA MUNICIPAL951,678.81 272,239.15 28.61 679,439.66 13 ADA EAST 795,971.65 217,697.10 27.35 578,274.55 14 ADA WEST 826,213.81 196,643.88 23.80 629,569.93 15 SHAI/OSUDOKU 759,913.36 201,831.73 26.56 558,081.63 16 NINGO/PRAMPRAM 742,703.73 205,876.66 27.72 536,827.07 TOTAL 16,279,585.31 4,940,277.73 30.35 11,339,307.58 NORTHERN APPENDIX A % OF NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS NET RELEASE DEDUCTIONS 1 BOLE 782,760.93 252,533.46 32.26 530,227.47 2 BUNKPURUGU/YUNYOO 857,135.39 249,542.83 29.11 607,592.56 3 CENTRAL GONJA 953,371.45 201,850.79 21.17 751,520.66 4 CHERIPONI 708,285.92 275,760.52 38.93 432,525.40 5 EAST GONJA 839,379.13 258,459.75 30.79 580,919.38 6 EAST MAMPRUSI 1,012,257.08 202,639.23 20.02 809,617.85 7 GUSHEGU 860,043.52 296,435.95 34.47 563,607.57 8 KARAGA 838,681.73 284,083.78 33.87 554,597.95 9 KPANDAI 831,196.67 319,557.16 38.45 511,639.51 10 KUMBUNGU 713,153.97 195,682.09 27.44 517,471.88 11 MAMPRUGU-MOAGDURI 781,060.46 195,899.39 25.08 585,161.07 12 MION 816,594.06 267,546.13 32.76 549,047.93 13 NANUMBA NORTH 821,743.46 242,349.58 29.49 579,393.88 14 NANUMBA SOUTH 787,688.32 201,920.61 25.63 585,767.71 15 NORTH GONJA 701,553.61 195,644.98 27.89 505,908.63 16 SABOBA 771,933.54 256,370.19 33.21 515,563.35 17 SAGNERIGU 722,002.83 219,710.41 30.43 502,292.42 18 SAVELUGU/NANTON MUN. 803,186.56 229,791.96 28.61 573,394.60 19 SAWLA-TUNA-KALBA 820,886.14 257,610.82 31.38 563,275.32 20 TAMALE METRO. 879,983.25 464,759.72 52.81 415,223.53 21 TATALE SANGULI 794,950.50 195,943.85 24.65 599,006.65 22 TOLON 860,864.40 230,943.02 26.83 629,921.38 23 WEST GONJA 701,151.88 201,643.69 28.76 499,508.19 24 WEST MAMPRUSI 784,049.56 201,908.95 25.75 582,140.61 25 YENDI MUNICIPAL 869,366.68 274,582.75 31.58 594,783.93 26 ZABZUGU 792,881.50 345,862.73 43.62 447,018.77 TOTAL 21,106,162.54 6,519,034.34 30.89 14,587,128.20 APPENDIX A UPPER EAST NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 BAWKU MUNICIPAL 729,741.20 324,836.11 44.51 404,905.09 2 BAWKU WEST 827,079.96 202,046.66 24.43 625,033.30 3 BINDURI 776,889.07 196,186.04 25.25 580,703.03 4 BOLGA. MUNICIPAL 835,881.10 311,468.60 37.26 524,412.50 5 BONGO 715,575.35 202,889.96 28.35 512,685.39 6 BUILSA NORTH 745,908.02 203,886.91 27.33 542,021.11 7 BUILSA SOUTH 742,137.94 196,074.83 26.42 546,063.11 8 GARU-TEMPANE 899,016.83 202,876.86 22.57 696,139.97 9 KASSENA NANKANA MUN. 792,275.81 180,535.28 22.79 611,740.53 10 KASSENA NANKANA WEST 754,180.80 222,013.38 29.44 532,167.42 11 NABDAM 856,891.38 276,470.68 32.26 580,420.70 12 PUSIGA 769,726.37 225,963.12 29.36 543,763.25 13 TALENSI 916,358.82 202,932.35 22.15 713,426.47 TOTAL 10,361,662.65 2,948,180.78 28.45 7,413,481.87

APPENDIX A UPPER WEST NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 DAFFIAMA-BUSSIE-ISSA 717,855.89 196,297.14 27.34 521,558.75 2 JIRAPA 735,257.17 201,752.82 27.44 533,504.35 3 LAMBUSSIE KANI 716,605.87 276,893.14 38.64 439,712.73 4 LAWRA 743,433.95 287,465.39 38.67 455,968.56 5 NADOWLI KALEO 757,002.05 201,822.40 26.66 555,179.65 6 NANDOM 743,484.49 320,778.24 43.15 422,706.25 7 SISSALA EAST 700,283.92 225,740.91 32.24 474,543.01 8 SISSALA WEST 733,991.27 215,748.78 29.39 518,242.49 9 WA EAST 869,281.88 202,181.70 23.26 667,100.18 10 WA MUNICIPAL 922,471.98 302,945.69 32.84 619,526.29 11 WA WEST 699,462.73 273,838.28 39.15 425,624.45 TOTAL 8,339,131.20 2,705,464.49 32.44 5,633,666.71 APPENDIX A VOLTA NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 ADAKLU- 722,409.40 309,049.08 DEDUCTIONS 42.78 413,360.32 2 AFADZETO 694,490.00 300,221.46 43.23 394,268.54 3 AGORTIME-ZIOPE 801,983.41 195,966.35 24.44 606,017.06 4 AKATSI NORTH 706,396.37 300,259.56 42.51 406,136.81 5 AKATSI SOUTH 773,860.01 237,761.05 30.72 536,098.96 6 BIAKOYE 702,859.87 196,249.15 27.92 506,610.72 7 CENTRAL TONGU 694,967.26 252,989.90 36.40 441,977.36 8 HO MUNICIPAL 698,042.22 352,306.13 50.47 345,736.09 9 661,097.96 195,515.51 29.57 465,582.45 10 MUNICIPAL 952,454.09 304,248.63 31.94 648,205.46 11 JASIKAN 703,694.05 214,951.82 30.55 488,742.23 12 680,525.94 202,177.68 29.71 478,348.26 13 KETA MUNICIPAL 1,037,625.08 401,559.18 38.70 636,065.90 14 791,537.14 201,632.92 25.47 589,904.22 15 KETU NORTH 756,783.27 242,754.74 32.08 514,028.53 16 KETU SOUTH MUNICIPAL 803,174.01 269,630.16 33.57 533,543.85 17 KPANDO MUNICIPAL 693,281.93 203,418.50 29.34 489,863.43 18 KRACHI EAST 821,875.10 480,350.32 58.45 341,524.78 19 KRACHI NTSUMURU 813,361.26 196,002.75 24.10 617,358.51 20 NKWANTA 742,267.18 201,775.25 27.18 540,491.93 21 NKWANTA NORTH 843,731.04 251,739.94 29.84 591,991.10 22 NORTH DAYI 734,306.76 279,415.83 38.05 454,890.93 23 NORTH TONGU 705,112.08 261,455.38 37.08 443,656.70 24 SOUTH DAYI 687,314.53 239,053.40 34.78 448,261.13 25 SOUTH TONGU 849,649.99 216,718.88 25.51 632,931.11 TOTAL 19,072,799.95 6,507,203.57 34.12 12,565,596.38 APPENDIX A WESTERN NO NAME OF ASSEMBLY GROSS AMOUNT DEDUCTIONS % OF NET RELEASE 1 AHANTA WEST 714,558.51 240,270.90 DEDUCTIONS 33.63 474,287.61 2 AMENFI CENTRAL 774,947.12 300,778.92 38.81 474,168.20 3 AMENFI EAST 734,230.42 202,349.54 27.56 531,880.88 4 AMENFI WEST 771,260.60 274,907.98 35.64 496,352.62 5 AOWIN 797,641.66 238,221.78 29.87 559,419.88 6 BIA EAST 880,855.21 256,418.74 29.11 624,436.47 7 BIA WEST 888,039.86 196,541.72 22.13 691,498.14 8 BIB/ANW/BEK 703,484.59 201,651.15 28.66 501,833.44 9 BODI 719,732.46 310,602.24 43.16 409,130.22 10 ELLEMBELLE 863,401.84 197,362.88 22.86 666,038.96 11 JOMORO 832,405.26 269,063.70 32.32 563,341.56 12 JUABOSO 740,997.78 214,771.19 28.98 526,226.59 13 MPOHOR 697,794.12 299,499.01 42.92 398,295.11 14 NZEMA EAST MUNICIPAL 698,850.55 241,037.10 34.49 457,813.45 15 PRESTEA-HUNI VALLEY 853,162.43 197,330.12 23.13 655,832.31 16 SEFWI AKONTOMBRA 738,965.38 196,964.69 26.65 542,000.69 17 SEFWI WIAWSO 762,587.52 201,840.29 26.47 560,747.23 18 SEKONDI TAKORADI METRO. 1,202,334.51 626,441.25 52.10 575,893.26 19 SHAMA 767,957.20 206,703.54 26.92 561,253.66 20 SUAMAN 801,661.34 304,864.40 38.03 496,796.94 21 TARKWA NSUEM MUNICIPAL 696,375.74 260,729.18 37.44 435,646.56 22 WASSA EAST 699,296.93 213,537.75 30.54 485,759.18 TOTAL 17,340,541.03 5,651,888.07 32.59 11,688,652.96 APPENDIX 'B'

DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

CASH IRREGULARITIES

Unreceipted MP's Common Overdue Payment for Unapproved Unsubstantiated PVs not pre- PWD fund Regions D/A deductions by D/A Fund D/A D/A loans/ D/A judgement D/A loan/ D/A D/A payments audited irregularities ADACF irregularities advance debt Overdraft

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 151,240.21 9 61,200.00 1 178,712.93 4

Brong Ahafo 257,399.94 7 871,394.51 4 13,390.00 1 207,123.72 2 100,479.00 2

Central 80,525.00 3 69,362.46 2 50,260.50 1

Eastern 1,094,022.13 16 543,508.98 2 765,646.81 5 97,027.00 2 15,000.00 1

Greater Accra 111,027.50 3 13,200.00 1

Northern 419,086.13 8 1,014,235.80 1 59,405.95 2

Upper East 494,803.00 5 355,563.12 2 409,515.86 4

Upper West 34,893.46 2 76,685.88 2

Volta 187,682.40 10 480,515.79 2 228,746.57 7 131,019.99 2 41,532.64 1

Western 420,097.91 9 16,623.33 1

TOTAL 3,250,777.68 2,381,544.86 242,136.57 2,575,817.27 317,350.72 100,479.00 106,793.14 76,029.28

No. of MMDAs 72 13 8 18 5 2 3 3 APPENDIX 'B' (Cont.)

DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

CASH IRREGULARITIES

Non- Unaccounted Unsubstantiated Payments Payment Unapproved/ HIV/AIDS payment of Unretired Unpresented Misapplication special fund Regions deductions by D/A D/A unaccounted D/A without D/A D/A D/A Unauthorised D/A and Malaria D/A D/A District D/A Total imprest PVs of funds received from ADACF for warrants payments irregularities Educational ADACF Fund

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 430,484.71 2 21,914.00 2 4,880.00 1 91,135.56 1 117,133.02 4 1,056,700.43

Brong Ahafo 1,190,032.09 4 14,541.30 3 26,337.00 1 54,630.50 2 11,000.00 1 2,746,328.06

Central 5,400.00 1 190,422.22 1 180,094.00 1 576,064.18

Eastern 1,666,168.84 9 37,369.00 2 35,430.00 1 132,613.25 5 4,386,786.01

Greater Accra 861,745.25 4 78,982.06 2 17,990.13 1 1,082,944.94

Northern 1,530,487.31 6 49,056.00 1 253,852.66 3 387,472.50 4 3,713,596.35

Upper East 13,728.50 2 19,000.00 1 43,983.60 1 1,336,594.08

Upper West 1,093,200.00 6 186,056.92 6 84,743.08 2 102,877.51 2 58,000.00 1 1,636,456.85

Volta 664,832.41 3 164,841.43 4 120,010.06 1 8,000.00 1 379,952.30 5 15,000.00 1 11,945.32 1 2,434,078.91

Western 101,826.79 1 82,000.00 1 4,055.03 1 624,603.06

TOTAL 7,436,950.61 492,907.15 31,217.00 458,605.80 437,251.92 1,464,197.52 191,094.00 4,055.03 15,000.00 11,945.32 19,594,152.87

No. of MMDAs 34 21 2 6 9 25 2 1 1 1 APPENDIX 'B' (Cont.) DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

CONTRACT IRREGULARITIES

Payment without Overpayment Completed Contract Regions Delayed Abandoned Engineer's of contract projects not register projects projects D/A cert/Works D/A D/A sum D/A in use D/A irregularities D/A Order

GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 93,448.30 6 2,472.19 1 18,645.00 1

Brong Ahafo 76,213.75 3 346,478.66 3 4,459.80 3 370,633.83 1

Central 26,345.30 1 639,391.84 2

Eastern 200,966.94 2 187,892.00 1 40,986.01 4 152,281.21 3

Greater Accra 16,340.92 1 316,241.29 1

Northern 1,391,113.31 3 47,208.00 1

Upper East 187,073.84 1 273,704.41 1 127,505.29 1

Upper West

Volta 35,010.00 1 2,650.75 1 68,781.07 1 96,904.38 1

Western 78,792.00 1 199,433.27 1

TOTAL 1,391,113.31 697,850.13 1,447,466.91 66,909.67 638,848.17 758,785.17

No. of MMDAs 3 15 7 10 3 8 APPENDIX 'B' (Cont.)

DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

CONTRACT IRREGULARITIES

Failure to Contracts Unapproved Unjustified submit Poor contract Indebtedness Retention Regions D/A D/A without D/A D/A projects/ D/A D/A contract D/A TOTAL performance management to Contractors irregularities approval variation payments bond

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 114,565.49

Brong Ahafo 183,460.42 1 168,329.03 2 2,304.84 1 1,151,880.33

Central 665,737.14

Eastern 531,152.91 2 131,577.59 2 1,244,856.66

Greater Accra 25,092.00 1 357,674.21

Northern 499,641.84 1 27,700.91 1 1,965,664.06

Upper East 588,283.54

Upper West 20,000.00 1 20,000.00

Volta 25,075.50 1 7,269.10 1 5,770.82 1 241,461.62

Western 278,225.27

TOTAL 499,641.84 531,152.91 25,075.50 183,460.42 327,607.53 32,361.10 28,075.66 6,628,348.32

No. of MMDAs 1 2 1 1 5 2 3 APPENDIX 'B' (Cont.)

DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

PROCUREMENT AND STORE IRREGULARITIES

Stores Repairs Purchases Asset register Regions Uncompetitive Stores Fuel issued Unauthorised without not /Embossment TOTAL procurement unaccounted for unaccounted for without procurement D/A D/A D/A D/A works order D/A D/A supplied D/A irregularities D/A approval

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 50,324.70 3 104,572.50 6 4,783.00 1 159,680.20

Brong Ahafo 140,207.91 7 40,326.00 3 5,047.89 1 185,581.80

Central 33,806.00 1 10,880.00 1 44,686.00

Eastern 343,917.25 4 85,321.20 5 11,928.00 2 8,045.18 1 17,308.00 2 8,754.50 1 475,274.13

Greater Accra 49,943.29 1 17,075.50 1 67,018.79

Northern 144,985.46 5 134,605.63 5 106,614.04 6 73,365.93 3 99,661.30 1 559,232.36

Upper East 48,306.40 2 48,306.40

Upper West 40,343.50 2 15,759.00 3 48,389.96 3 19,862.15 1 124,354.61

Volta 119,802.67 6 92,675.00 4 46,382.86 2 15,357.33 2 16,381.00 1 111,873.00 2 402,471.86

Western -

TOTAL 937,831.18 524,140.83 234,025.75 8,045.18 125,893.41 16,381.00 8,754.50 211,534.30 2,066,606.15

No. of MMDAs 30 28 16 1 8 1 1 3 APPENDIX 'B' (Cont.) DISTRICT ASSEMBLIES' COMMON FUND

SUMMARY OF CASH, CONTRACT, PROCUREMENT AND STORES AND TAX IRREGULARITIES ACCORDING TO REGIONS - 2013

TAX IRREGULARITIES

Withholding Withholding Charging Purchases from Regions tax not tax not VAT on non- non-VAT TOTAL deducted D/A remitted D/A VAT invoices D/A entities D/A

GH¢ GH¢ GH¢ GH¢ GH¢

Ashanti 4,634.20 4 22,181.59 2 3,503.25 1 8,466.28 3 38,785.32

Brong Ahafo 5,078.60 2 5,347.81 1 16,136.98 7 26,563.39

Central 25,076.53 4 25,076.53

Eastern 4,928.57 4 23,242.37 5 12,362.25 2 40,533.19

Greater Accra -

Northern 5,684.13 4 14,776.29 3 6,339.27 2 2,767.50 1 29,567.19

Upper East 1,611.35 2 12,893.55 1 14,504.90

Upper West 1,247.90 1 2,990.00 1 24,000.53 1 28,238.43

Volta 10,520.63 2 3,056.21 1 1,129.88 1 14,706.72

Western 25,884.65 4 3,909.90 2 29,794.55

TOTAL 32,457.48 130,650.69 19,798.63 64,863.42 247,770.22

No. of MMDAs 18 21 7 15 APPENDIX C ASHANTI REGION TABLE OF IRREGULARITIES-2013

CASH MANGEMENT IRREGULARITIES

Unreceipted Unsupported/ Failure to Pre- Unsubstantiated Deductions By Misapplication Unretired Unaccounted Unpresented No. MMDAs Unsubstantiated audit Deductions by DACF of funds Imprest Payment Vouchers Payments Vouchers the ADACF Administrator GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Adansi South District 61,200.00

2 Afigya Kwabre District 186,000.00

3 Ahafo Ano North District 70,110.31 61,071.82

4 Amansie Central District

5 Asante Akim Central Municipal 13,175.00

6 Asante Akim South District 21,500.70 244,484.71

7 Asokore Mampong Municipal 13,000.00

8 Atwima Kwanwoma District 34,900.00 38,507.62

9 Atwima Mponua District 9,640.00

10 Atwima Nwabiagya District 28,046.00

11 Bosomtwe District

12 Ejisu - Juaben Municipal 26,434.51

13 Ejura Sekyeredumasi Municipal 30,265.00 27,775.00

14 Kumasi Metropolitan 15,015.20 91,135.56

15 Kwabre East District 3,265.00

16 Offinso North District 7,408.00

17 Offinso South Municipal 4,652.00 42,320.00 2,700.00

18 Sekyere East District 4,880.00

19 Sekyere Kumawu District 19,214.00

TOTAL 151,240.21 61,200.00 178,712.93 117,133.02 21,914.00 4,880.00 91,135.56 430,484.71

MMDAs 9 1 4 4 2 1 1 2 APPENDIX C

ASHANTI REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITIES PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Payment Without Failure to make Non Purchases No. MMDAs Overpayment of Stores Not Unaccounted Failure To VAT Payment Failure to Performance entries in the Competitive From Non Contract sums Accounted For Fuel Remit 5%Tax Without Receipts Withhold Tax Certificate contract register Purchases VAT Entities

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Adansi South District 590.00

2 Afigya Kwabre District 11,969.00

3 Ahafo Ano South District 892.77

4 Asante Akim Central Municipal 40,576.30 3,503.25

5 Amansie Central District 1,000.00

6 Asante Akim South District 12,740.50 4,265.94

7 Asokore mampong Municipal 25,534.00 776.80

8 Atwima Kwanwoma District 9,630.00

9 Atwima Mponua District 21,408.00 2,998.65

10 Atwima Nwabiagya District 26,161.30 1,201.69

11 Bosomtwe District 14,450.00 1,372.50

12 Ejisu - Juaben Municipal 4,825.00

13 Ejura Sekyeredumasi Municipal 40,200.00 4,783.00

14 Kumasi Metropolitan 2,472.19 20,809.09

15 Kwabre East District 19,338.40

16 Offinso North District 6,350.00

17 Offinso South Municipal 18,645.00

18 Sekyere 2,374.63

19 Sekyere Kumawu District 5,538.00 8,625.00

TOTAL 93,448.30 2,472.19 18,645.00 104,572.50 4,783.00 50,324.70 8,466.28 22,181.59 3,503.25 4,634.20

MMDAs 6 1 1 6 1 3 3 2 1 4 APPENDIX C

BRONG AHAFO REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

Over- Payment for Unreceipted Unjustified Unrecovered loans/Advances Payment of deduction by Unsupported Monies Misapplication Unretired software No. MMDAs Common Fund Deductions by Judgement ADACF for Payments Unaccounted of funds imprest without deductions the ADACF Unrecovered Outstanding debt computers approval Loans Rent advance supplied

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Asunafo North Municipal 9,879.00 26,337.00

2 Asunafo South Dist. Assembly 1,900.00 3,271.00

3 Berekum Municipal Assembly 455,852.02

4 Dormaa Municipal Assembly 326,289.15 29,842.50 151,123.72 6,200.00

5 Dormaa West District Assembly 100,952.87 300,811.79

6 Jaman North Dist. Assembly 49,800.00 81,667.48

7 Jaman South Dist. Assembly 6,228.00

8 Kintampo South Dist. Assembly 199,109.04

9 Nkoranza South Mun. Assembly 20,613.00

10 Sunyani Municipal 185,644.42

11 Sunyani West Dist. Assembly 17,552.50 240,815.35 24,788.00 5,042.30 11,000.00 13,390.00

12 Tain District Assembly 18,811.52

13 Tano North District Assembly 22,597.42

14 Techiman Municipal Assembly 130,658.33

15 Techiman North Dist. Assembly 222,246.50

16 Wenchi Municipal Assembly 83,905.15

Total 257,399.94 26,337.00 871,394.51 1,190,032.09 54,630.50 14,541.30 200,923.72 6,200.00 11,000.00 100,479.00 13,390.00

MMDAs 7 1 4 4 2 3 2 1 1 2 1 APPENDIX C BRONG AHAFO REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITES PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Payments Fuel Purchases from Completed Unjustified Stores 5% WHT No. MMDAs Indebtedness Abondoned Unapproved Overpayment without Uncompetitive Purchases 5% WHT Non VAT projecst not in contingency Unaccounted not to contractors projects variation to Contractors Engineer's Procurements not not remitted registered use payment for deducted Certificate accounted entities

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Asunafo North Municipal 48,373.97 1,605.00 37,312.00 1,189.30

2 Asunafo South Dist. Assembly 19,911.89 5,347.81

3 Asutifi South Dist. Assembly 21,132.00

4 Berekum Municipal Assembly 5,000.00 5,084.00

5 Dormaa East Dist. Assembly 183,460.42 370,633.83

6 Dormaa Municipal Assembly 59,546.88 7,101.00 539.82

7 Dormaa West District Assembly 13,922.15

8 Jaman South Dist. Assembly 2,304.84

9 Kintampo South Dist. Assembly 119,955.06 1,229.00

10 Nkoranza North Dist. Assembly 28,577.91 333.69

11 Sunyani Municipal 105,900.95 28,897.00 3,889.30 378.02

12 Sunyani West Dist. Assembly 350.55

13 Tain District Assembly 412.71

14 Tano South Dist. Assembly 1,625.80

15 Techiman Municipal Assembly 6,330.00 200.04

16 Techiman North Dist. Assembly 12,875.00 5,047.89 2,280.00

17 Wenchi Municipal Assembly 181,030.83 51,301.86 30,945.00

Total 183,460.42 346,478.66 370,633.83 2,304.84 168,329.03 4,459.80 76,213.75 140,207.91 5,047.89 40,326.00 5,078.60 5,347.81 16,136.98

MMDAs 1 3 1 1 2 3 3 7 1 3 2 1 7 APPENDIX C

CENTRAL REGION

TABLE OF IRREGULARITIES-2013 PROCUREMENT CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES TAX IRREGULARITY IRREGULARITIES

Payment to school Unreceipted Payment of No. MMDAs Unsupported Unretired feeding caterer Unapproved Misapplication of Abandoned Unaccounted Unaccounted Failure to remit deductions by works without Payments Imprest without payment Loan funds projects stores fuels withholding tax ADACF inspection reports certificate

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Abura Asedu Kwamankese District 33,806.00 10,880.00 1,283.10

2 Agona West Municipal 13,221.21

3 Ajumako Enyan Essiam District 26,450.00 62,162.46

4 Assin South District 190,422.22

5 Awutu Senya District 50,260.50 49,999.90

6 Awutu Senya East Municipal 7,200.00

7 Cape Coast Metroplitan 26,650.00 26,345.30

8 Effutu Municipal 5,400.00 180,094.00 589,391.94 9,541.17

9 Ekumfi District 1,031.05

10 Gomoa East District 27,425.00

Total 80,525.00 5,400.00 180,094.00 50,260.50 69,362.46 190,422.22 639,391.84 26,345.30 33,806.00 10,880.00 25,076.53

MMDAs 3 1 1 1 2 1 2 1 1 1 4 APPENDIX C EASTERN REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

Misapplication of Funds Unsupported Payments Unpresented Payments Unreceipted Unapproved Overdue Unsubstantiated Unretired No. MMDAs Payments Vouchers not funds MP's overdraft loan DACF Deductions Imprest DACF PWD SIF DACF Common PWD & GSFP vouchers pre-audited Fund

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Akyemmensa District 8,026.95 4,013.50

2 Asuogyaman District 175,100.80

3 Birim Central Mun. 48,563.53 182,047.20

4 Birim North District 186,600.00

5 Birim South District 31,321.00 7,446.00

6 Denkyembour District 242,964.17 5,230.50 142,000.00

7 East Akim Municipal 27,223.00 15,000.00

8 Fanteakwa District 27,577.00 29,674.00

9 Kwaebibirem District 6,470.00 51,294.56 232,438.52

10 Kwahu Afram Pl. North Dist. 105,320.50

11 Kwahu Afram Plain South Dist. 42,886.00

12 Kwahu East District 4,703.00 6,650.00 8,300.00

13 Kwahu South District 44,037.57

14 Kwahu West Municipal 3,569.25 12,532.60 290,550.60 30,719.00

15 Lower Manya Krobo Mun.

16 New Juben Municipal 16,525.48 283,800.00

17 Suhum Municipal 39,735.00 50,755.00 228,143.98

18 Upper Manya Krobo Dist.

19 Upper West Akim District 300,544.81 20,000.00 6,705.60 72,961.74 35,430.00 75,723.28

20 West Akim Mun. 37,988.00 626,175.34 324,475.53

21 Yilo Krobo Municipal 11,363.40 1,800.00 12,949.60 69,450.00 200,000.00

Total 543,508.98 59,735.00 69,309.00 3,569.25 1,016,518.47 5,813.50 71,690.16 15,000.00 97,027.00 1,666,168.84 35,430.00 37,369.00 765,646.81

MMDAs 2 2 2 1 15 2 2 1 2 9 1 2 5 APPENDIX C EASTERN REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITIES PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Payments Purchases without Stores Payment of Failure to Unplanned Contract Poorly Purchases Unaccounted from non- Withholding No. MMDAs Abandoned Overpayment monitoring Uncompetitive Unaccounted issued repair deduct projects and register not Executed not Fuel and VAT tax not Projects of Contracts reports/ Tendering stores without without withholding Procurement updated Projects supplied Lubricants registered remitted proformance approval works order taxes Entities certificates

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Akyemmensa 16,869.84 6,821.36

2 Asuogyaman District 187,892.00 57,100.00 5,250.00

3 Atiwa 10,075.00 7,112.25 2,134.38

4 Birim Central Mun. 73,027.00

5 Birim North 184,097.10 86,350.00

6 Birim South 2,724.23 74,477.59 84,775.36 2,380.38 1,923.90

7 Denkyembour 1,750.00 455.89

8 East Akim Municipal 13,542.00

9 Fanteakwa 99,764.89 4,727.28

10 Kwaebibirem 8,565.20 414.40

11 Kwahu Afram Plain North 15,809.00

12 Kwahu East 748.15

13 Kwahu South 1,500.00

14 Kwahu West Municipal 116,026.35 7,928.00

15 New Juben Municipal 529,402.91 7,027.00 8,045.18 7,233.00

16 Upper West Akim 4,771.66 22,254.86 5,320.00

17 West Akim Mun. 8,754.50 43,623.20 4,000.00

18 Yilo Krobo 31,990.12 14,000.00

TOTAL 187,892.00 40,986.01 131,577.59 200,966.94 152,281.21 531,152.91 343,917.25 8,754.50 85,321.20 8,045.18 11,928.00 17,308.00 12,362.25 23,242.37 4,928.57

MMDAs 1 4 2 2 3 2 4 1 5 1 2 2 2 5 4 APPENDIX C GREATER ACCRA REGION

TABLE OF IRREGULARITIES-2013

PROCUREMENT CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES IRREGULARITIES

Unjustified Under- Payment not Unpresented Single Sourcing No. MMDAs Deductions by Unsupported Unrecovered Misapplication of Overpayment of deduction of entered in Unrecorded payment method without DACF payments Advances DACF contract sum retention Contract Store Items vouchers approval Administrator money Register

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Ada East District Assembly 144,801.20 9,128.00 12,031.73

2 Ada West District Assembly 73,982.06 83,299.50 5,958.40 17,075.50

3 Ga East Municipal Assembly 49,943.29

4 Ga West Municipal Assembly 16,340.92 316,241.29

5 La Nkwantanang Madina Municipal 170,199.05 5,000.00 18,600.00 13,200.00 25,092.00

Ledzokuku - Krowor District 6 412,545.00 Assembly

7 Ningo Prampram District Assembly 134,200.00

Total 861,745.25 78,982.06 111,027.50 13,200.00 17,990.13 16,340.92 25,092.00 316,241.29 17,075.50 49,943.29

MMDAs 4 2 3 1 2 1 1 1 1 1 APPENDIX C NORTHERN REGION TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

PWD Irregularities Unaccounted Payment Payments Unsupported Unretired Deductions by Misapplication No. MMDAs vouchers not without Borrowing from payments Imprest DACF of DACF Unreceipted pre-auditied Warrant People with Administrator Remittances Disability account

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ 1 Bole District 180,775.39 49,056.00

2 Bunkpurugu/Yunyoo District 108,245.00 309,545.50

3 Central Gonja District 11,154.48

4 Chereponi District 202,574.66

5 East Mamprusi District 129,575.97

6 Gushiegu District 9,640.00 27,600.00

7 Karaga District 8,878.00

8 Kumbungu District 288,653.04

9 Mion District 358,817.52

10 Nanumba North District 1,014,235.80

11 North Gonja District 9,958.00

12 Saboba District 42,400.00

13 Savelugu/Nanton Municipal 1,170.00

14 Sawla/Tuna/Kalba District 10,000.00 31,805.96

15 Tamale Metroplitan 39,934.00 464,759.72 40,913.00

16 Tolon District 57,849.26 226,500.00

17 West Gonja District

18 West Mamprusi District 62,181.06

19 Yendi Municipal 27,374.00

Total 419,086.13 49,056.00 1,530,487.31 387,472.50 1,014,235.80 253,852.66 27,600.00 31,805.96

MMDAs 8 1 6 4 1 3 1 1 APPENDIX C

NORTHERN REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITIES PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Failure to Payment submit Failure to Variation of Payments for Failure to Purchases Asset Unremitted of VAT No. MMDAs performance produce Contract Delayed Unaccounted Unaccounted Uncompetitve repairs deduct from Register not Withholding without bonds and contract without Projects stores Fuel Procurement without Withholding NonVAT updated tax VAT programe of documents Authority works order Taxes Entities Invoice work GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Bole District 31,579.13 3,270.00 17,610.00 7,402.38 387.15 2,767.50

2 Bunkpurugu/Yunyoo District 5,285.00

3 Chereponi District 41,619.37 14,485.55

4 East Gonja District 51,478.00

5 Karaga District 4,992.00

6 Kpandai District 99,661.30

7 Kumbungu District 137,184.89

8 Nanumba North District 17,200.58 261.10 5,442.45 1,339.27

9 Nanumba South District 499,641.84 474,778.23 22,977.17 3,524.67 4,048.84

10 Saboba District 6,636.00

11 Savelugu/Nanton Municipal 27,700.91

12 Sawla/Tuna/Kalba District 65,238.72 5,000.00

13 Tamale Metroplitan 47,208.00 63,214.00

14 Tolon District 779,150.19 6,673.20 7,512.67 1,511.21

15 West Mamprusi District 10,800.00

16 Yendi Municipal 37,423.49

17 Zabzugu District 22,339.30 27,119.50

Total 499,641.84 47,208.00 27,700.91 1,391,113.31 99,661.30 134,605.63 106,614.04 144,985.46 73,365.93 5,684.13 14,776.29 6,339.27 2,767.50

MMDAs 1 1 1 3 1 5 6 5 3 4 3 2 1 APPENDIX C UPPER EAST REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

Payment Un-receipted Unpresented No. MMDAs Unsupported Unretired Misapplication vouchers not source payments payments imprest of funds pre-audited Deduction vouchers

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Bawku Municipal 232,619.21

2 Binduri District 263,380.54 100,268.46 129,600.00

3 Bongo District 14,072.00 10,499.00 11,708.50 19,000.00 43,983.60

4 Builsa South District 125,965.70

5 Kassena Nankana West District 31,837.32

6 Nabdam District 25,450.63

7 Pusiga District 100,226.00 225,963.12 2,020.00

Total 409,515.86 494,803.00 355,563.12 13,728.50 19,000.00 43,983.60

MMDAs 4 5 2 2 1 1 APPENDIX C

UPPER EAST REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITIES PROCUREMENT IRR. TAX IRREGULARITIES

Payments of Failure to Failure to No. MMDAs Abandoned works without Purchases without multiple Non remittance of submit contract withhold projects engineers price quotations withholding tax register taxes certificate

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Binduri District 28,846.40

2 Bongo District 273,704.41 187,073.84 127,505.29 12,893.55

3 Builsa South District 634.80

4 Pusiga District 19,460.00 976.55

Total 273,704.41 187,073.84 127,505.29 48,306.40 1,611.35 12,893.55

MMDAs 1 1 1 2 2 1 APPENDIX C UPPER WEST REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

Unpresented Unsubstantiated Paymnt No. MMDAs Unsupported Unretired Misapplication Unauthorised payments Deductions by vouchers not payments imprest of funds Expenditure vouchers ADACF pre-audited

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Daffiama Bissie Issa District 120,200.00

2 Jirapa District 4,150.00 197,000.00

3 Lambussie Karni District 192,200.00

4 Lawra District 22,943.46 58,000.00

5 Nadowli District 35,328.00 16,512.58 21,815.58

6 Sissala East District 13,668.00

7 Sissala West District 11,950.00

8 Wa East District 2,126.52 5,261.50 197,000.00 68,230.50 54,870.30

9 Wa Municipal 124,063.00 97,616.01 266,600.00

10 Wa West District 6,721.40 120,200.00

Total 34,893.46 186,056.92 58,000.00 102,877.51 1,093,200.00 84,743.08 76,685.88

MMDAs 2 6 1 2 6 2 2 APPENDIX C

UPPER WEST REGION

TABLE OF IRREGULARITIES-2013

CONTRACT PROCUREMENT IRREGULARITIES TAX IRREGULARITIES IRREGULARITY

Withheld Payments for Purchases from No. MMDAs Payment for Duplicate Unaccounted Uncompetitive Unaccounted taxes not VAT not non-VAT repairs without Payments stores Procurement fuel remitted to supported with registered works order GRA VAT invoices Entities

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Lawra District 20,000.00 31,682.43

2 Nadowli District 3,400.00

3 Sissala East District 8,803.50 8,514.53

4 Sissala West District 19,862.15 7,000.00

5 Wa East District 5,359.00 1,247.90 2,990.00

6 Wa Municipal 31,540.00 8,193.00 24,000.53

Total 20,000.00 19,862.15 15,759.00 40,343.50 48,389.96 1,247.90 2,990.00 24,000.53

MMDAs 1 1 3 2 3 1 1 1 VOLTA REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES

Unreceipted Unaccounted Non-payment MP Common Fund Irregularities Payment Unpresented Source Unjustified Payments for Unsupported Misapplication Unretired special funds of District Unapproved No. MMDAs vouchers not payments deduction of Deductions by Expenditure payments of funds Imprest received from Education Fund Overdraft pre-audited vouchers DACF ADACF without Warrant ADACF Levy Failure to Misappropriation Non-Utilisation Allocation obtain receipts of MP funds of MP Fund

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 15,924.00

2 Agotime-Ziope District 1,200.00 248,739.01

3 14,071.00 81,827.10

4 Akatsi South District 11,432.00 237,761.05

5 Biakoye District 94,460.30 8,594.00 113,322.31

6 9,152.20

7 Jasikan District 33,955.04 41,532.64

8 Keta Municipal 28,685.00 24,230.73 15,000.00

9 Ketu North District 26,137.67 242,754.74 1,700.00

10 Ketu South Municipal 11,945.32 30,525.28

11 Kpando District 26,907.04

12 Krachi East District 57,445.90 39,504.40 1,300.00 56,409.98

13 Krachi Ntsumuru District 3,016.50

14 Krachi West District 168,228.74 3,939.00

15 Nkwanta North 6,646.00 177,040.00 120,010.06

16 Nkwanta South District 76,513.30

17 27,047.49 54,506.69 239,053.40 9,939.50

18 27,126.00 38,495.52 8,000.00

Total 187,682.40 379,952.30 131,019.99 164,841.43 8,000.00 480,515.79 664,832.41 15,000.00 11,945.32 120,010.06 41,532.64 28,489.00 30,525.28 169,732.29

MMDAs 10 5 2 4 1 2 3 1 1 1 1 6 1 2 APPENDIX C

VOLTA REGION

TABLE OF IRREGULARITIES-2013

CONTRACT IRREGULARITY

Additional Payments Unauthorised works Failure to Completed Failure to No. MMDAs Overpayment of without payment of without update Projects not withhold contract sum inspection contingency to approval by contract put to use Retention report contractors TRB and register Assembly GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Akatsi South District

2 Jasikan District 96,904.38

3 Keta Municipal 2,650.75

4 Krachi East District

5 Krachi Ntsumuru District

6 Krachi West District 35,010.00 25,075.50

7 Nkwanta South District 7,269.10

8 68,781.07

9 North Tongu District 5,770.82

Total 2,650.75 35,010.00 5,770.82 68,781.07 25,075.50 7,269.10 96,904.38

MMDAs 1 1 1 1 1 1 1 APPENDIX C

VOLTA REGION

TABLE OF IRREGULARITIES-2013

PROCUREMENT IRREGULARITIES TAX IRREGULARITIES

Payments for Purchases Unaccounted Stores Non compliance Failure to Emboss Failure to repairs without from non- Payments of Uncompetitive Unaccounted with PPP Equipments deduct works order VAT VAT without No. MMDAs Procurement fuel Withholding Unaccounted Missing Assets/ registered VAT invoices Tax Stores Stores Entities

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

30 Adaklu District 21,355.00

2 Agotime-Ziope District 22,814.00

3 Akatsi North District 15,348.60

4 Akatsi South District 12,272.45 16,381.00

5 Jasikan District 3,943.87

6 Keta Municipal 57,000.00 3,500.00 31,034.26 66,000.00 6,576.76

7 Krachi East District 39,368.94 45,873.00

8 Krachi Ntsumuru District 5,414.00 6,241.00

9 Krachi West District 9,116.33

10 Nkwanta North 6,875.00 1,129.88 3,056.21

11 Nkwanta South District 2,350.00

12 North Tongu District

13 South Dayi District 18,578.28 22,950.00

Total 119,802.67 89,175.00 3,500.00 46,382.86 16,381.00 15,357.33 111,873.00 10,520.63 1,129.88 3,056.21

MMDAs 6 4 1 2 1 2 2 2 1 1 APPENDIX C WESTERN REGION

TABLE OF IRREGULARITIES-2013

CASH MANAGEMENT IRREGULARITIES CONTRACT IRREGULARITIES TAX IRREGULARITIES

Failure to set aside 1% Payments Payments for Unpresented Completed Withheld taxes Unsupported Borrowing from Misapplication of Statutory to support without VAT not No. MMDAs payments projects not not remitted to payments PWD fund DACF initiative on HIV/AIDs inpection supported with vouchers being used GRA & Malaria certificate VAT invoices

GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Aowin District 42,834.00

2 Bia District 1,206.33

3 Ellembelle District 137,687.40

4 Jomoro District 11,900.00 199,433.27 78,792.00 2,580.90

5 Juaboso District 91,180.71

6 Prestea Huni Valley District 6,350.00 101,826.79 7,064.62

7 Sefwi Akontombra District 25,956.00 15,592.77

8 Sefwi Wiawso Municipal 62,174.80

9 Suaman District 19,020.00

10 Wassa Amenfi Central District 22,995.00

11 Wassa Amenfi East District 82,000.00 1,329.00 2,020.93

12 Wassa Amenfi West District 16,623.33 4,055.03

Total 420,097.91 16,623.33 82,000.00 4,055.03 101,826.79 199,433.27 78,792.00 3,909.90 25,884.65

MMDAs 9 1 1 1 1 1 1 1 4 APPENDIX D SUMMARY Second tranche - No. REGION Investment Grant MMDAs (58.0%) Mar 13

1 ASHANTI 10,218,166.24 27

2 BRONG AHAFO 9,180,778.58 27

3 CENTRAL 4,838,918.95 18

4 EASTERN 7,782,316.58 26

5 GREATER ACCRA 4,727,690.17 16

6 NORTHERN 13,707,767.62 26

7 UPPER EAST 4,846,533.37 13

8 UPPER WEST 4,713,605.10 11

9 VOLTA 6,927,527.01 24

10 WESTERN 6,056,696.40 20

GRAND TOTAL 73,000,000.00 208 ASHANTI REGION APPENDIX D DDF Transfer 2013 FOAT IV No. Region District Capital CAGD Second tranche - Total code Investment Grant (58.0%) Mar 13 1 Ashanti Adansi North Fomena 2619 382,148.55 382,148.55 2 Ashanti Adansi South New Edubiase 2601 409,572.30 409,572.30 3 Ashanti Afigya-Kwabre Kodie 2623 338,788.60 338,788.60 4 Ashanti Ahafo Ano North Tepa 2604 352,178.97 352,178.97 5 Ashanti Ahafo Ano South Tepa 2605 427,693.55 427,693.55 6 Ashanti Amansie Central Tepa 2620 338,452.33 338,452.33 7 Ashanti Bekwai Municipal Tepa 2606 372,375.73 372,375.73 8 Ashanti Amansie West Tepa 2607 460,159.74 460,159.74 9 Ashanti Asante Akim Central Municipal Tepa 2608 - - 10 Ashanti Asante Akim North Tepa - - 11 Ashanti Asante Akim South Tepa 2609 360,460.30 360,460.30 12 Ashanti Atwima Kwanwoma Tepa 2625 332,969.19 332,969.19 13 Ashanti Atwima Mponua Tepa 2621 376,909.35 376,909.35 14 Ashanti Atwima Nwabiagya Tepa 2610 452,335.48 452,335.48 15 Ashanti Bosome Freho Tepa 2624 244,797.89 244,797.89 16 Ashanti Bosomtwe Tepa 2611 330,303.01 330,303.01 17 Ashanti Ejisu-Juaben Municipal Tepa 2612 353,177.02 353,177.02 18 Ashanti Ejura Sekyeredumase MunicipalTepa 2613 372,987.78 372,987.78 19 Ashanti Kumas Metropolitan Tepa 2614 1,549,268.11 1,549,268.11 20 Ashanti Asokore Mampong Municipal Tepa 172,140.90 172,140.90 21 Ashanti Kwabre East Tepa 2615 331,484.18 331,484.18 22 Ashanti Mampong Municipal Tepa 2618 299,711.44 299,711.44 23 Ashanti Obuasi municipal Tepa 2602 316,545.68 316,545.68 24 Ashanti Offinso municipal Tepa 2616 277,062.87 277,062.87 25 Ashanti Offinso North Tepa 2622 264,839.49 264,839.49 26 Ashanti Sekyere Kumawu Tepa 2626 218,629.82 218,629.82 27 Ashanti Sekyere Afram Plains South Tepa 218,629.82 218,629.82 28 Ashanti Sekyere Central Tepa 2627 317,247.30 317,247.30 29 Ashanti Sekyere East Tepa 2617 - - 30 Ashanti Sekyere South Tepa 2603 347,296.85 347,296.85 TOTAL 10,218,166.24 10,218,166.24 BRONG AHAFO REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD No. Region District Capital Investment Grant Total code (58.0%) Mar 13

1 B. Ahafo Asunafo North Municipal Goaso 2701 362,941.56 362,941.56

2 B. Ahafo Asunafo South Kukuom 2718 520,435.63 520,435.63

3 B. Ahafo Asutifi North Kenyasi 2702 188,060.90 188,060.90

4 B. Ahafo Asutifi South Hwidiem 188,060.90 188,060.90

5 B. Ahafo Atebubu-Amantin Atebubu 2703 499,077.46 499,077.46

6 B. Ahafo Berekum Municipal Berekum 2704 346,068.48 346,068.48

7 B. Ahafo Dormaa East Wamfie 2721 250,446.35 250,446.35

8 B. Ahafo Dormaa Central Municipal Dormaa-Ahenkro 2705 205,474.77 205,474.77

9 B. Ahafo Dormaa West Nkran Nkwanta 136,983.18 136,983.18

10 B. Ahafo Jaman North Sampa 2716 330,851.72 330,851.72

11 B. Ahafo Jaman South Drobo 2706 374,634.33 374,634.33

12 B. Ahafo Kintampo North Municipal Kintampo 2707 596,792.53 596,792.53

13 B. Ahafo Kintampo South Jema 2717 413,711.45 413,711.45

14 B. Ahafo Nkoranza North Busunya 2722 319,833.10 319,833.10

15 B. Ahafo Nkoranza South Municipal Nkoranza 2708 390,035.43 390,035.43

16 B. Ahafo Pru Yeji 2714 529,532.53 529,532.53

17 B. Ahafo Sene West Kwame Danso 2709 437,367.45 437,367.45

18 B. Ahafo Sene East Kajaji 437,367.45 437,367.45

19 B. Ahafo Sunyani Municipal Sunyani 2710 345,000.81 345,000.81

20 B. Ahafo Sunyani West Odumase 2720 283,576.71 283,576.71

21 B. Ahafo Tain Nsawkaw 2715 296,809.00 296,809.00

22 B. Ahafo Banda Banda Ahenkro 296,809.00 296,809.00

23 B. Ahafo Tano North Duayaw Nkwanta 2719 295,280.13 295,280.13

24 B. Ahafo Tano South Bechem 2711 282,542.15 282,542.15

25 B. Ahafo Techiman Municipal Techiman 2712 222,229.11 222,229.11

26 B. Ahafo Techiman North Tuobodom 148,152.74 148,152.74

27 B. Ahafo Wenchi Municipal Wenchi 2713 482,703.71 482,703.71

TOTAL 9,180,778.58 9,180,778.58 CENTRAL REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD No. Region District Capital Investment Grant Total code (58.0%) Mar 13

1 Central Abura Asebu Kwamankesse Abura Dunkwa 2401 302,202.84 302,202.84

2 Central Agona East Nsaba 2417 233,981.80 233,981.80

3 Central Agona West Municipal Swedru 2402 251,215.68 251,215.68

4 Central Ajumako-Enyan-Essiam Ajumako 2403 326,821.39 326,821.39

5 Central Asikuma Odoben Brakwa Breman Asikuma 2404 346,332.14 346,332.14

6 Central Assin North Municipal Assin Foso 2405 436,235.21 436,235.21

7 Central Assin South Nsuaem Kyekyewere 2413 359,394.89 359,394.89

8 Central Awutu Senya 2415 168,608.25 168,608.25

9 Central Awutu Senya East Municipal 252,912.38 252,912.38

10 Central Cape Coast Metropolitan Cape Coast 2407 - -

11 Central Efutu Municipal Wineba 2406 210,754.13 210,754.13

12 Central Gomoa East 2414 422,460.52 422,460.52

13 Central Gomoa West 2408 301,183.41 301,183.41

14 Central Komenda Edina Eguafo Abirem MunicipalElmina 2409 286,179.13 286,179.13

15 Central Mfantseman Municipal 2410 213,544.03 213,544.03

16 Central Ekumfi Essarkyir 142,362.69 142,362.69

17 Central Twifo Ati-Morkwa 2411 179,722.31 179,722.31

18 Central Twifi Hemang Lower Denkyira Hemang 179,722.31 179,722.31

19 Central Upper Denkyira East Municipal Dunkwa-on-Offin 2412 - -

20 Central Upper Denkyira West Diaso 2416 225,285.84 225,285.84

TOTAL 4,838,918.95 4,838,918.95 EASTERN REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD Investment No. Region District Capital Total code Grant (58.0%) Mar 13 1 Eastern Akwapim North Municipal Akwapim 2302 329,258.56 329,258.56

2 Eastern Nsawam-Adoagyiri Municipal Nsawam 2303 160,000.78 160,000.78

3 Eastern Akwapim South 106,667.19 106,667.19

4 Eastern Akyemansa 2321 323,175.06 323,175.06

5 Eastern Asuogyaman 2304 388,784.91 388,784.91

6 Eastern Atiwa 2316 397,373.06 397,373.06

7 Eastern Birim Central Municipal 2320 316,521.46 316,521.46

8 Eastern Birim North 2305 275,920.16 275,920.16

9 Eastern Birim South 2306 358,210.38 358,210.38

10 Eastern East Akim Municipal Kibi 2307 333,522.76 333,522.76

11 Eastern Fanteakwa 2308 347,965.60 347,965.60

12 Eastern Kwaebibirem Kade 2309 245,035.53 245,035.53

13 Eastern Denkyembour 245,035.53 245,035.53

14 Eastern Kwahu East 2319 311,924.84 311,924.84

15 Eastern Kwahu Afram Plains North 2301 392,491.22 392,491.22

16 Eastern Kwahu Afram Plains South Tease 392,491.22 392,491.22

17 Eastern Kwahu South 2310 264,056.93 264,056.93

18 Eastern Kwahu West Municipal 2317 496,441.88 496,441.88

19 Eastern Lower Manya Krobo MunicipalOdumase Krobo 2311 310,661.18 310,661.18

20 Eastern New Juaben Municipal 2312 254,894.08 254,894.08

21 Eastern Suhum Municipal Suhum 2313 241,207.27 241,207.27

22 Eastern Ayensuano Coaltar 241,207.27 241,207.27

23 Eastern Upper Manya Krobo 2318 290,506.02 290,506.02

24 Eastern West Akim Municipal 2314 261,849.82 261,849.82

25 Eastern Upper West Akim 174,566.55 174,566.55

26 Eastern Yilo Krobo Municipal 2315 322,547.31 322,547.31

TOTAL 7,782,316.58 7,782,316.58 GREATER ACCRA REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD Investment No. Region District Capital Total code Grant (58.0%) Mar 13

1 G. Accra Accra Metropolitan Accra 2101 1,330,543.04 1,330,543.04

2 G. Accra La Dade-Kotopon Municipal La 332,635.76 332,635.76

3 G. Accra Adentan Municipal Adentan 2109 181,267.33 181,267.33

4 G. Accra Ashaiman Municipal Ashaiman 2108 239,818.14 239,818.14

5 G. Accra Ada East 2102 167,861.92 167,861.92

6 G. Accra Ada West 167,861.92 167,861.92

7 G. Accra Shai-Osudoku 2103 209,536.80 209,536.80

8 G. Accra Ningo-Prampram Prampram 209,536.80 209,536.80

9 G. Accra Ga East Municipal 2106 153,239.85 153,239.85

10 G. Accra La Nkwantanang-Madina MunicipalMadina 153,239.85 153,239.85

11 G. Accra Ga West Municipal 2104 330,951.33 330,951.33

12 G. Accra Ledzokuku-Krowor Municipal Teshie- 2110 342,623.64 342,623.64

13 G. Accra Tema Metropolitan Tema 2105 268,602.16 268,602.16

14 G. Accra Kpone Katamanso Kpone 134,301.08 134,301.08

15 G. Accra Ga South Municipal 2107 252,835.27 252,835.27

16 G. Accra Ga Central Municipal Sowutuom 252,835.27 252,835.27

TOTAL 4,727,690.17 4,727,690.17 NORTHERN REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD No. Region District Capital Investment Grant Total code (58.0%) Mar 13 1 Northern Bole Bole 2801 601,095.36 601,095.36

2 Northern Bunkpurugu-Yunyoo Bunkpurugu 2815 630,830.07 630,830.07

3 Northern Central Gonja Buipe 2816 920,127.29 920,127.29

4 Northern Chereponi Chereponi 2819 398,997.05 398,997.05

5 Northern East Gonja Salaga 2803 753,835.34 753,835.34

6 Northern East Mamprusi Gambaga 2804 696,349.20 696,349.20

7 Northern Gushiegu Gushiegu 2805 860,556.10 860,556.10

8 Northern Karaga Karaga 2817 527,435.69 527,435.69

9 Northern Kpandai Kpandai 2820 721,408.81 721,408.81

10 Northern Nanumba North Bimbila 2806 650,669.87 650,669.87

11 Northern Nanumba South Wulensi 2818 468,364.96 468,364.96

12 Northern Saboba Saboba 2807 426,061.69 426,061.69

13 Northern Savelugu Nanton Municipal Savelugu 2808 655,430.18 655,430.18

14 Northern Sawla-Tuna-Kalba Sawla 2814 698,701.53 698,701.53

15 Northern Tamale Metropolitan Tamale 2810 465,980.20 465,980.20

16 Northern Sagnerigu Sagnerigu 232,990.10 232,990.10

17 Northern Tolon Tolon 2809 287,435.82 287,435.82

18 Northern Kumbungu Kumbungu 287,435.82 287,435.82

19 Northern West Gonja Damango 2811 451,809.35 451,809.35

20 Northern North Gonja Daboya 451,809.35 451,809.35

21 Northern West Mamprusi Walewale 2812 469,937.95 469,937.95

22 Northern Mamprugu-Moagduri Yagaba 469,937.95 469,937.95

23 Northern Yendi Municipal Yendi 2802 556,538.03 556,538.03

24 Northern Mion Sang 371,025.35 371,025.35

25 Northern Zabzugu Zabzugu 2813 326,502.29 326,502.29

26 Northern Tatale Sanguli Tatale 326,502.29 326,502.29

TOTAL 13,707,767.62 13,707,767.62 UPPER EAST REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD No. Region District Capital Investment Grant Total code (58.0%) Mar 13

1 U. East Bawku Municipal Bawku 2901 370,956.75 370,956.75

2 U. East Pusiga Pusiga 185,478.38 185,478.38

3 U. East Binduri Binduri 185,478.38 185,478.38

4 U. East Bawku West Zebilla 2902 499,908.71 499,908.71

5 U. East Bolgatanga Municipal Bolgatanga 2903 532,222.70 532,222.70

6 U. East Bongo Bongo 2904 459,169.78 459,169.78

7 U. East Builsa North Sandema 2905 269,258.18 269,258.18

8 U. East Builsa South Fumbisi 269,258.18 269,258.18

9 U. East Garu-Tempane Garu 2908 678,950.08 678,950.08

10 U. East Kassena Nankana Municipal Navrongo 2906 514,057.16 514,057.16

11 U. East Kassena Nankana West Paga 2909 367,496.12 367,496.12

12 U. East Talensi Tongo 2907 257,149.48 257,149.48

13 U. East Nadbdam Nangodi 257,149.48 257,149.48

TOTAL 4,846,533.37 4,846,533.37 UPPER WEST REGION APPENDIX D DDF Transfer 2013 FOAT IV

Second tranche - CAGD No. Region District Capital Investment Grant Total code (58.0%) Mar 13

1 U. West Jirapa Jiripa 3001 488,392.48 488,392.48

2 U. West Lambussie Karni Lambussie 3009 346,215.29 346,215.29

3 U. West Lawra Lawra 3002 268,511.93 268,511.93

4 U. West Nandom Nandom 268,511.93 268,511.93

5 U. West Nadowli-Kaleo Nadowli 3003 293,922.67 293,922.67

6 U. West Daffiama-Bissie-Issa Issa 293,922.67 293,922.67

7 U. West Sissala East Tumu 3004 615,894.42 615,894.42

8 U. West Sissala West Gwollu 3008 510,610.58 510,610.58

9 U. West Wa East Funsi 3006 435,489.86 435,489.86

10 U. West Wa Municipal Wa 3005 448,762.47 448,762.47

11 U. West Wa West Wechiaw 3007 743,370.81 743,370.81

TOTAL 4,713,605.10 4,713,605.10 VOLTA REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD Investment No. Region District Capital Total code Grant (58.0%) Mar 13 1 Volta Agortime Ziope Agortime-Kpetoe 2213 156,800.79 156,800.79 2 Volta Adaklu 156,800.79 156,800.79 3 Volta Akatsi South Akatsi 2202 198,195.83 198,195.83 4 Volta Akatsi North Ave Dakpa 198,195.83 198,195.83 5 Volta Biakoye 2216 - - 6 Volta Ho Municipal Ho 2203 361,342.21 361,342.21 7 Volta Ho West Dzolopuita 240,894.81 240,894.81 8 Volta Hohoe Municipal Hohoe 2204 257,514.86 257,514.86 9 Volta Afadzato South 171,676.58 171,676.58 10 Volta Jasikan Jasikan 2205 294,991.66 294,991.66 11 Volta Kadjebi Kadjebi 2206 246,780.60 246,780.60 12 Volta Keta Municipal Keta 2207 373,334.67 373,334.67 13 Volta Ketu North 2218 361,037.93 361,037.93 14 Volta Ketu South 2208 487,153.56 487,153.56 15 Volta Krachi East 2214 475,353.94 475,353.94 16 Volta Krachi West Kete-Krachi 2210 279,086.66 279,086.66 17 Volta Krachi Ntsumuru 279,086.66 279,086.66 18 Volta Nkwanta North Kpasa 2217 389,994.86 389,994.86 19 Volta Nkwanta South Nkwanta 2211 549,616.19 549,616.19 20 Volta Kpando Kpando 2209 175,732.03 175,732.03 21 Volta North Dayi Amfoega 175,732.03 175,732.03 22 Volta Central Tongu 2201 242,216.41 242,216.41 23 Volta North Tongu Battor Dugama 242,216.41 242,216.41 24 Volta South Dayi 2215 277,856.60 277,856.60 25 Volta South Tongu 2212 335,915.08 335,915.08 TOTAL 6,927,527.01 6,927,527.01 WESTERN REGION APPENDIX D DDF Transfer 2013 FOAT IV Second tranche - CAGD Investment No. Region District Capital Total code Grant (58.0%) Mar 13 1 Western Ahanta West Agona Nkwanta 2501 291,898.78 291,898.78

2 Western Aowin 2502 269,665.38 269,665.38

3 Western Suaman Dadieso 269,665.38 269,665.38

4 Western Bia West Essam-Dabiso 2512 230,164.97 230,164.97

5 Western Bia East Adabokrom 230,164.97 230,164.97

6 Western Bibiani Anhwiaso Bekwai Bibiani 2503 282,847.04 282,847.04

7 Western Ellembele Nkroful 2517 273,976.63 273,976.63

8 Western Jomoro Jomoro 2504 448,598.31 448,598.31

9 Western Juabeso Juabeso 2505 - -

10 Western Bodie Bodie - -

11 Western Wassa East Daboase 2506 220,227.49 220,227.49

12 Western Mpohor Mpohor 220,227.49 220,227.49

13 Western Nzema East Municipal Axim 2507 269,798.09 269,798.09

14 Western Prestea-Huni Valley Bogoso 2515 419,418.97 419,418.97

15 Western Sefwi Akontombra Sefwi Akontombra 2516 328,630.11 328,630.11

16 Western Sefwi Wiawso Municipal Sefwi-Wiaso 2508 335,291.16 335,291.16

17 Western Sekondi-Takoradi Metropolitan Sekondi 2509 544,875.02 544,875.02

18 Western Shama Shama 2514 318,570.05 318,570.05

19 Western Tarkwa- Nsuaem Municipal Tarkwa 2511 436,791.16 436,791.16

20 Western Wassa Amenfi East Wassa Akropong 2513 284,142.10 284,142.10

21 Western Wassa Amenfi West Asankragua 2510 190,871.65 190,871.65

22 Western Wassa Amenfi Central Manso Amenfi 190,871.65 190,871.65

TOTAL 6,056,696.40 6,056,696.40 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

By auditing

· to recognized international auditing standards the management of public resources

And

· reporting to Parliament