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ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA'S STRENGTHENING ACCOUNTABILITY MECHANISM II This report has been prepared in compliance with Article 187(2) of the 1992 and Section 13 and 16 of the Audit Service Act, 2000 (Act 584) Johnson Akuamoah Asiedu Acting Auditor General Ghana Audit Service 16 November 2020

The audit was conducted under the supervision of Jacob Essilfie, Lawrence Ayagiba (AAGs, Performance Audit) and Benjamin G. Codjoe, Deputy Auditor-General in charge of Performance and Special Audits

This report can be found on the Ghana Audit Service website: www.ghaudit.org For further information about the Ghana Audit Service, please contact: The Director, Communication Unit Ghana Audit Service Headquarters Post Office Box MB 96, . Tel: 0302 664928/29/20 Fax: 0302 662493/675496 E-mail: [email protected] Location: Ministries Block 'O' © Ghana Audit Service 2020 TRANSMITTAL LETTER

Ref. No. AG.01/102/Vol.2/146 Office of the Auditor-General Ministries Block “O” P. O. Box MB 96 Accra

Tel. (021) 662493 Fax (021) 662493 GA-110-8787

16 November 2020

Dear Mr. Speaker,

ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2

I have the honour to submit to you an analysis report on the performance audits of infrastructure development in 50 district assemblies under the USAID/Ghana sponsored project, Ghana’s Strengthening Accountability Mechanism in accordance with my mandate under Article 187(2) of the 1992 Constitution of Ghana, Sections 13(e) and 16 of the Audit Service Act, 2000 (Act 584) which provide that I may carry out performance and special audits.

2. The purpose of the audit was to ascertain the efficiency and effectiveness with which district assemblies execute infrastructure projects in accordance with its mandate as stated in the Local Governance Act 2016 and other laws. The audit covered the period 2013 to 2018.

3. We found that, the assemblies lacked the enthusiasm and attitudes to achieve what they planned to do. The District Planning Officers did not provide the right leadership and experience in leading the preparation of the Medium-Term Development Plan. Annual planning, procurement planning, tendering and implementation of capital projects were poorly performed. The Works Engineers showed very little ability to supervise the construction works to meet the specifications provided in the Contract Documents. They accepted defective work and blamed their poor performances on lack of tools to check the executed works and also lack of transport to visit project sites.

4. We made some recommendations to help the assemblies improve upon its implementation of capital projects.

5. I trust that this report will meet the expectations of Parliament.

Yours faithfully,

JOHNSON AKUAMOAH ASIEDU ACTING AUDITOR GENERAL

THE RT. HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA

Table of Contents LIST OF ACRONYMS ...... iii

CHAPTER ONE ...... 1

Introduction ...... 1

Purpose and Objectives of the audit ...... 2

Audit Scope ...... 2

Audit Methodology ...... 3

CHAPTER TWO...... 4

DELIVERY OF INFRASTRUCTURE PROJECTS IN METROPOLITAN, MUNICIPAL AND

DISTRICT ASSEMBLIES ...... 4

Background ...... 4

Infrastructure development projects ...... 4

Functions of the Assembly ...... 5

Laws and Regulations ...... 6

1992 Constitution ...... 6

Local Government Service Act, Act 656 ...... 6

Local Governance Act 2016, Act 936 ...... 6

National Development Planning Commission Act 1994, Act 480 ...... 7

Public Procurement Act 2003, Act 663, amended to Act 914 ...... 7

Key players and their Responsibilities ...... 8

Funding ...... 9

Steps in the identification to implementation of projects in Assemblies ...... 10

CHAPTER THREE ...... 11

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ...... 11

i | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Introduction ...... 11

IDENTIFICATION AND SELECTION ...... 11

PLANNING AND BUDGETING OF PROJECTS BY DISTRICT ASSEMBLIES ...... 12

Budgeting for Projects ...... 14

Procurement of Contractors for Assembly Projects ...... 16

Project Execution ...... 19

Assessing Benefits and Impacts of Assembly Projects ...... 32

Projects Completed and In Use ...... 34

Uncommon but Significant Audit Findings ...... 36

APPENDICES ...... 39

APPENDIX 1- List of the 50 Districts Audited...... 39

APPENDIX 2 - Assessment areas and sub-components ...... 40

APPENDIX 3 – Methodology for auditing the 50 District Assemblies ...... 41

Audit methodology for the 50 Districts ...... 41

APPENDIX 4 - Audit questions and Assessment Criteria used for the audit of the 50

District Assemblies ...... 44

APPENDIX 5 – Details of amounts each assembly paid to contractor for work not

executed ...... 46

ii | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 LIST OF ACRONYMS ACRONYM MEANING

AAP ANNUAL ACTION PLAN ADA ASSEMBLY BOQ BILLS OF QUANTITIES DA DISTRICT ASSEMBLY DACF DISTRICT ASSEMBLY COMMON FUND DCD DISTRICT COORDINATING DIRECTOR DCE DISTRICT CHIEF EXECUTIVE DDF DISTRICT DEVELOPMENT FACILITY DFO DISTRICT FINANCE OFFICER DMTDP DISTRICT MEDIUM TERM DEVELOPMENT PLAN DPCU DISTRICT PLANNING COORDINATING UNIT DPO DISTRICT PLANNING OFFICER DTC DISTRICT TENDER COMMITTEE DTRB DISTRICT TENDER REVIEW BOARD GAS GHANA AUDIT SERVICE GSAM GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM IGF INTERNALLY GENERATED FUND IPC INTERIM PAYMENT CERTIFICATE LGSS LOCAL GOVERNMENT SERVICE SECRETARIAT MLG MINISTRY OF LOCAL GOVERNMENT MMDA METROPOLITAN, MUNICIPAL AND DISTRICT ASSEMBLIES MOF MINISTRY OF FINANCE NDPC NATIONAL DEVELOPMENT PLANNING COMMISSION OHLS OFFICE OF THE HEAD OF LOCAL SERVICE POA PLAN of ACTION PPA PUBLIC PROCUREMENT ACT PPAu PUBLIC PROCUREMENT AUTHORITY RCC REGIONAL COORDINATING COUNCIL RPCU REGIONAL PLANNING COORDINATING UNIT USAID UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

iii | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 CHAPTER ONE

Introduction United State Agency for International Development (USAID)/Ghana in collaboration with the is implementing a five-year project (from 2015 to 2020) under the name of Ghana’s Strengthening Accountability Mechanism (GSAM). The main aim of the GSAM project is to increase communities’ capacity to demand accountability from those to whom resources have been entrusted on their behalf. This was to be done through strengthening both top-down and bottom-up accountability. GSAM addresses USAID/Ghana’s objectives of improving governance, the quality of district-built capital projects and related service delivery, building the capacity of Ghanaian institutions, and strengthening local democratic procedures and citizens engagement.

2. The Government of Ghana, USAID, and citizens all expressed concern that many district assemblies were building projects inefficiently, ineffectively, and without citizen input. For example, there is evidence that about 33 percent of projects are never completed (Williams, 2015)1. In light of these concerns, the GSAM project was designed to increase accountability for the planning and execution of these crucial district assembly projects. GSAM targeted District Assemblies (DAs) to improve public sector accountability at that level.

3. Key aspects of the GSAM project involved conducting social accountability audits of infrastructure projects on one hand by CARE International and performance audits of infrastructure projects by Ghana Audit Service (GAS) on the other hand. In 2016 GAS completed a first round of audits of infrastructure in 50 district assemblies and a second round in 2018 in another set of 50 district assemblies.

4. We made recommendations in management letters to the respective districts. This report is an analysis of key issues identified in the second round of 50 individual audits of the assemblies for the underlisted stakeholders to address for improvement in the management of infrastructure projects in the district assemblies. They are:

1 Brick-and-mortar; Project delivery and unfinished infrastructure in Ghana’s local governments (Martin Williams, Nov 2015)

1 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 i. Ministry of Local Government and Rural Development ii. Local Government Service iii. Regional Coordinating Councils iv. National Development Planning Commission v. Public Procurement Authority vi. Administrator of District Assemblies Common Fund

Purpose and Objectives of the audit 5. The purpose of the audit was to identify areas that make district assemblies’ management of infrastructure projects inefficient and ineffective and reporting to Parliament on the way forward in order to improve the level of performance in the development of infrastructure in the assemblies.

6. Specifically, we determined the efficiency and effectiveness with which the selected district assemblies identified, planned, procured contractors, supervised and monitored the construction of capital projects in accordance with sound administrative principles, laws and practices in order to meet the required quality of the projects.

Audit Scope 7. Individual performance audits were carried out in 50 district assemblies in nine out of the then ten in 2018. We examined two infrastructure projects in each district procured from 2013 to 2017. The projects were funded with District Assembly Common Fund (DACF) or District Development Facility (DDF). The list of sampled districts covered in the audit is found in Appendix 1.

8. We examined each assembly’s:

 identification, selection and planning of infrastructure Projects (Pre -contract activities)  budgeting and financing of infrastructure projects

2 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2  procurement of contractors  implementation, monitoring and supervision of contractors (Post contract activity), and  impact of the completed projects on beneficiaries

Audit Methodology 9. In 2019, GAS completed the audit of infrastructure projects in 50 district assemblies and sent management letters to the assemblies for the implementation of recommendations we made. The recommendations centered on what the assemblies should do to improve the systems of identification and planning of projects, procurement of contractors, supervision and monitoring of projects and post project evaluation.

10. We analyzed the findings in the 50 management letters under the four themes of the audit (Appendix 2). We compiled the number of assemblies meeting the criteria for each theme. We then compiled the reasons why they were unable to meet the criteria. We offered conclusions and recommendations to the stakeholders listed in Paragraph 4. The methodology we used to audit the 50 district assemblies is described in Appendix 3. The classification, source of funding and status of the projects we examined are shown in Table 1.

Table 1: Classification, source of funding and status of the 100 projects

Status of projects Source of funding No. of No. of Classification of DACF DDF DACF/ IGF TOTAL Completed uncompleted projects DDF projects projects Classroom 31 16 2 0 49 43 6 Health Care 28 6 0 1 35 31 4 Staff Quarters 1 3 0 1 5 5 0 Hostel 0 1 0 1 2 1 1 Market 1 0 1 0 2 2 0 Police Station 0 1 0 0 1 1 0 Office accommodation 2 0 0 0 2 1 1 Toilet 3 0 1 0 4 3 1 Total 66 27 4 3 100 87 13 Source: GAS compilation

3 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 CHAPTER TWO

DELIVERY OF INFRASTRUCTURE PROJECTS IN METROPOLITAN, MUNICIPAL AND DISTRICT ASSEMBLIES

Background 11. Local governance in Ghana has undergone significant reforms following the coming into being of the fourth republic. Article 35 (5d) of the 1992 Constitution requires the state ‘to take appropriate measures to ensure decentralization in administrative and financial machinery of government and to give opportunities to people to participate in decision- making at every level in national life and government’.

12. The Constitution established the District Assemblies’ Common Fund (DACF) and provides that 10% of total government revenues be transferred and distributed to the assemblies annually. The Common Fund has assisted in the implementation of various projects in the districts, focusing on priority areas such as education, health care delivery, portable water supply, market infrastructure, sanitation, roads and drains among others.

13. In addition to the DACF, there are also grants transferred from the central to the local government, such as the District Development Facility (DDF) and Urban Grants. Given the significant amount of money transferred to the Assemblies, the issue of accountability to citizens for service delivery from the use of the funds is paramount to citizens. In this respect, The Administrator of the DACF has entreated Civil Society Organizations and members of the public to view the Fund as their asset and be vigilant to ensure quality in the work of the Assemblies in using the funds they receive so that the nation, as a whole, will reap the utmost benefit from the Common Fund (The Common Fund Newsletter, Issue 2 of December 2014).

Infrastructure development projects 14. Infrastructure facilities are put up to support primary, secondary and tertiary productive activities. They are catalysts of development and at the same time their presence can serve as

4 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 indicators of development and play a crucial role in poverty reduction, economic growth and empowerment for the rural poor.

15. Infrastructural development projects play a key role in development in the sense that, adequate provision of infrastructural facilities enhances the quality of life in both urban and rural economies (Laah, et al., 2014). That is, infrastructure is the backbone of economic capacity, and so the development of infrastructure is a fundamental concern of both governments and citizens.

16. Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana are responsible for the overall development of the communities in their jurisdiction. They formulate, execute plans and programmes for the overall development of their administrative areas. Given that MMDAs are the vehicles through which government delivers its mandate to citizens, the development of infrastructure is a necessity for government to deliver social services like health and education to community members. To this end, MMDAs are to ensure that, in accordance with the Public Financial Management Act that they deliver value for money on funds spent by government in engendering infrastructure projects of good quality, within budget and provided in time to serve the citizenry.

Functions of the Assembly 17. The MMDAs are required to perform all the functions conferred on them by the Local Governance Act 2016, Act 936 and the Legislative Instruments that established them. Among the functions the Assemblies perform are:

 Management of the allocation of District Assemblies Common Fund and other grants for the provision of public amenities, social infrastructure such as schools, water, electricity, health and sanitation facilities amongst others.  Preparation and approval of development plans and budgets to regulate and control physical development.  Ensures the judicious use of resources allocated to them for development purposes

5 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Laws and Regulations

1992 Constitution 18. Chapter 20 of the 1992 Constitution mandates the Ministry of Local Government to formulate policies on decentralization and rural/urban development.

Local Government Service Act, Act 656 19. The Local Government Service Act 2003 (Act 656) requires the Local Government Service (LGS) to design and deliver systems to set targets for and monitor the performance of Assemblies. The Act further mandates the LGS to develop Guidelines on the acquisition and use of human and financial resources by the Assemblies.

Local Governance Act 2016, Act 936 20. Local Governance Act 2016 (Act 936) mandates the District Assemblies to formulate and execute plans, programmes and strategies for the effective mobilisation of the resources necessary for the overall development of the district and also initiate programmes for the development of basic infrastructure and provide municipal works and services in the district. The MMDAs are required under Act 936 to perform any function that may be required under any enactment (for example, the Public Procurement Act in relation to Procurement, the National Development Planning Commission Act in relation to the preparation of development plans, LGS Act in relation to staff capacity building, etc).

21. The Local Governance Act 2016 also regulates the functions of the Regional Coordinating Councils (RCC). The Act requires the RCCs to monitor, and co-ordinate the performance of the implementations of planned programmes and projects of the assemblies. The RCCs are also to monitor the use of moneys mobilized by the district assemblies or allocated by an agency of the central government to ensure that they are effectively managed.

6 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 National Development Planning Commission Act 1994, Act 480 22. The National Development Planning Commission Act 1994 (Act 480) mandates the National Development Planning Commission (NDPC) to develop guidelines for the preparation of development plans by the assemblies taking into consideration the resource potential and comparative advantage of the different . The Act requires the NDPC to coordinate all development policies, plans, programmes and projects between the national and local governments and provide framework for monitoring and evaluating the implementation of government policies, programmes and projects at all levels including the Metropolitan/Municipal and District Assemblies (MMDAs). The Commission also provides support to Ministries, Departments and Agencies (MDAs) and District Assemblies in building their capacity for effective monitoring and evaluation of their respective development plans.

Public Procurement Act 2003, Act 663, amended to Act 914 23. The Public Procurement Act 2003 (Act 663) and its amendment authorises the Public Procurement Authority (PPAu) to develop rules, instructions, other regulatory documentation on public procurement and formats for public procurement documentation. The Authority is also required to monitor and supervise public procurement to ensure compliance with statutory requirements. The Authority is also required to build the capacity of public officials involved in public procurement at various levels and develop, promote and support training and professional development of persons engaged in public procurement, and ensure adherence by trained persons to ethical standards. PPAu also provides Advisory services to government including MMDAs on issues relating to public procurement.

7 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Key players and their Responsibilities Key Player Responsibilities National  Develops guidelines for the preparation of development plans by the assemblies Development  Make proposals for ensuring the even development of the districts of Ghana Planning Commission  Coordinate all development policies, plans, programmes and projects between the national and local governments  Monitor and evaluate the implementation of government policies, programmes and projects at all levels  provides support to MDAs and District Assemblies in building their capacity for effective monitoring and evaluation of their respective development plans.  Provide guidance to MMDAs in the preparation, implementation and monitoring of budgets and revenues Ministry of Finance  Allocate the Budget financial resources efficiently, effectively and rationally to sectors, MDAs and MMDAs  Releases funds to the Administrator of the District Assemblies Common Fund and DDF Secretariat.  Design and deliver systems to set targets for and monitor the performance of Assemblies. Ministry of Local  formulation of policies on decentralization, Rural/Urban Development Government  develop Guidelines on the acquisition and use of human and financial resources by Assemblies Public Procurement  Develop rules, instructions, other regulatory documentation on public procurement and formats for public procurement documentation Authority  Monitor and supervise public procurement and ensure compliance with statutory requirements  Monthly publication of procurement Bulletin containing information on public procurement, including proposed procurement notices of invitation to tender and contract award information  Facilitate the training of public officials involved in public procurement at various levels  Develop, promote and support training and professional development of persons engaged in public procurement, and ensure adherence by trained persons to ethical standards  Advise Government including Metropolitan, Municipal and District Assemblies on issues relating to public procurement Local Government . Provide technical assistance to MMDAs and RCCs to enable them to effectively perform their functions Service . Conduct organizational and job analysis for RCCs and MMDAs . Conduct management audits for RCCs and MMDAs in order to improve the overall management of the Service, and . Assist the RCCs and MMDAs in the performance of their functions under Act 462, Act 480, and any other enactment, etc Administrator of the . Develop and applies the formula for sharing the District Assemblies common fund . Releases the Share of the Assemblies’ common fund District Assemblies . Monitor and report on the utilisation of the DACF by the assemblies Common Fund Regional Co- . Monitor, and co-ordinate the performance of the implementations of planned programs and projects of the assemblies ordinating Council . Monitor the use of moneys mobilized by the district assemblies or allocated by an agency of the central government

8 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Funding 24. For the 50 projects we examined, those solely funded with DACF exceeded the budgeted estimates by 29.5%, whiles projects financed by DDF exceeded their budgeted estimates by 55.6%. The cost of the projects funded with both DACF and DDF exceeded the budgeted estimates by 29.0% whiles projects funded with IGF exceeded the budgeted estimate by 71.7%. Details of the funding are shown in Table 2.

Table 2: Funding for the 50 MMDAs Source of Funding No of Budget Actual % increase projects expenditure DACF 66 9,110,368.62 11,793,510.04 29.5 DDF 27 2,455,386.81 3,820,933.54 55.6 DACF/DDF 4 674,435.14 869,765.51 29.0 IGF 3 300,000.00 515,005.36 71.7 Total 100 12,540,190.57 16,999,214.45

9 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Steps in the identification to implementation of projects in Assemblies 25. The steps assemblies go through to identify and implement an infrastructure project is presented in Figure 1.

Figure 1: Diagram showing infrastructure projects delivery in MMDAs

EXECO MCE/DCE MCD/DCD M/DPCU – (M/DPO, M/DBA, M/DWE) Budget Committee Planning & Procurement Committee Prioritised Budgeting RCC, F&A, Gen Ass, MOFEP List of Projects Assembly Members Unit Council Projects Area Council for Schedule 1 Dept. Execution Project Community Members Identification Engineer Community Leaders Start M/DTR B

M/DCB Tenderers Impacts Procurement of End ETC – (M/DCE, Contractors M/DCD) Evaluation Panel

Contractor Engineer Completed Projects Works Sub-Committee Monitoring Team Selected M/DCD Contractors Project M/DFO Execution M/DBA M/DIA M/DPCU Beneficiaries & Opinion Leaders

10 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 CHAPTER THREE

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Introduction 26. This section presents an analysis of the findings of the audits in the 50 district assemblies. Recommendations were made in the 50-district specific management letters to be implemented by the assemblies. The findings have been grouped under the four thrust areas as detailed in Appendix 2. The recommendations in this report are for the supervisory/regulatory bodies of the assemblies to implement to prevent future violations of rules and guidelines governing the implementation of capital projects.

IDENTIFICATION AND SELECTION Involvement of community members in developing the DMTDP

27. We examined whether the assemblies involved the communities in developing the District Medium Term Development Plan (DMTDP). This was to determine whether the communities were involved in the selection of the two projects sampled for audit.

28. We found that 31 (62%) out of the 50 assemblies involved communities to identify and select projects for execution. That is, departments, individuals and opinion leaders made specific requests to their respective assemblies and the assemblies held public fora with stakeholders who made inputs to the final plan. The quality of the public fora was however, poor as it did not follow the guidelines of National Development Planning Commission (NDPC). The public fora were mainly attended by opinion leaders rather than the general community members. Also, altogether there should be a minimum of three public fora held by each assembly to discuss the development of the DMTDP with the communities. All the assemblies held only one public durbar to disseminate the content of the draft DMTDP. Twelve out of the 31 assemblies documented the process of developing the DMTDP. Officials of the 19 assemblies who did not document the processes claimed they involved the community members even though they had no records to support their assertions. Responses from interviews with community members of the remaining 19 assemblies corroborated the

11 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 assertions of the officials that they consulted a section of the community members in the development of the DMTDP.

29. Our interaction with officials of NDPC indicated that, they provided training to the District Planning Officers and other key staff of the assemblies prior to the development of the DMTDP. Our observation was that the training by NDPC had very little impact on developing a quality planning document that captured the real aspirations of the districts.

Conclusion

30. The assemblies were aware of the importance of involving the community members in determining their needs for the medium-term plan. However, they did not follow the guidelines by the NDPC. They did not use the questionnaires provided in the NDPC guidelines in soliciting information from community members, neither did they do any analysis of the insufficient data they collected during the fieldwork for the preparation of the DMTDP. Proper development of the district hinges on the implementation of development projects that emerges from the people.

Recommendation

31. The Local Government Service Secretariat (LGSS) should support the NDPC to re- evaluate the content and form of the training they provide to the planning officers prior to the development of the DMTDP, identify the inherent weaknesses preventing planning officers from following the guidelines and redesign the training programme and put in controls to enforce compliance by the planning officers.

PLANNING AND BUDGETING OF PROJECTS BY DISTRICT ASSEMBLIES Inclusion of audited projects in the Assembly’s DMTDP, AAP and quarterly reviews of the AAP

32. We examined whether the assemblies included the projects we examined in their DMTDPs and Annual Action Plans (AAPs). Capturing these projects in the planning documents gave an indication that the assembly was ready to commit resources to implement

12 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 the projects in the planning period. We also examined whether the assemblies reviewed their AAPs quarterly. This was to assure us that, if the project was not originally planned for, it would have been included in a quarterly updated plan so that a supplementary budget would be prepared to cover the funding.

33. We found that, all the assemblies prepared the DMTDP, but six of the assemblies did not include seven of the projects in the DMTDP at the time of its preparation. Forty-six (92%) of the 50 assemblies prepared Annual Action Plans with 32 (64%) of them executing one or both projects from their Annual Action Plans. In all, 25 projects were not captured in the AAPs. The 25 projects were across 18 assemblies. Fourteen (28%) out of the 46 assemblies that prepared Annual Action Plans reviewed their Action Plans quarterly.

34. We were informed that the projects that were executed outside the AAPs were unilaterally decided by the DCEs and some from DACF Secretariat. (See Table 3).

Conclusion

35. An assembly not reviewing its AAPs quarterly indicated lack of understanding of the essence of the planning document. The need for an Annual Action Plan to guide the implementation of the assemblies’ programmes seems to be well-understood by the assemblies since majority of the assemblies prepared AAPs each year. However, they did not take the review of the action plans seriously as only 28 percent of the assemblies reviewed their action plans to incorporate changes made in the original plan. They also did not show commitment to carry through their own plans thereby executing projects outside the action plans. This could be that the AAPs were prepared as a formality to meet the requirement of obtaining funding from central government.

Recommendation

36. The Regional Coordinating Councils (RCCs) should strengthen their monitoring role on the assemblies under their jurisdiction by reviewing AAPs of the assemblies and provide them with feedback.

13 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 37. The Office of the Head of Local Government Service (OHLGS) should on yearly basis sample district assemblies’ AAPs for review to collect data on weaknesses in the AAPs and design training accordingly for the districts.

38. The Minister of Local Government should institute controls to prevent DCEs from usurping the power of the people from unilaterally selecting projects outside the AAP to implement.

Budgeting for Projects 39. We examined whether the assemblies captured the projects in the assemblies’ annual budgets and if not, whether the projects were covered by a supplementary budget. This was to assure us that the project would receive funding during its implementation.

40. Thirty-four (68%) out of the 50 assemblies captured either one or both projects in their budgets. Four out of the 16 assemblies which did not include the projects in their budgets prepared supplementary budgets to cover the projects. The remaining 12 assemblies did not capture the projects in their budget neither did they prepare supplementary budgets to cover the projects.

41. Fourteen out of the 16 assemblies with project not captured in the assembly’s budget in the year of implementation were implemented as a result of the MCE/DCE’s decision. The other two assemblies stated the projects were either emergency or priority projects from DACF Secretariat. However, none of those projects were completed within the contract period to support the claim of urgency. In all, 22 projects were not included in the assemblies’ composite budgets. The list of the Assemblies, the projects and actual periods of completion are shown in Table 3.

14 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Table 3: List of Assemblies executing projects not in their budgets

District Completed Remarks S/N Project Assembly in (mths) 3 Unit Classroom Block at uncompleted Decision by Imamiya Islamic Primary DCE 1 East Gonja Hostel Facility at TI Training uncompleted Decision by School DCE 3 Unit Classroom Block at uncompleted Decision by 2 South Alokpatsa DA JSS DCE 1No. 3-unit Teachers Quarters 17 Decision by 3 Bosomtwe at Woarakese DCE 3 Unit Classroom Block at 3 Decision by 4 Midwifery School at Gushegu MCE CHPS Compound at Bulikpali 9 Priority project from RCC & DACF Sec 5 Tatale-Sanguli 3 Unit Classroom Block at 8 Priority project Kparabutabu from RCC & DACF Sec 6 Unit Classroom Block at 18 Decision by Nfante DCE 6 Ahafo-Ano CHPS Compound at Numesu 12 Decision by DCE 3 Unit Classroom Block at 12 Decision by 7 -Amanten Boniafo DCE 1 No. 20-unit water closet with 14 Decision by 8 Suhum mechanised borehole at MCE Akorabo CHPS Compound at 19 Emergency Hiawoanwo project 9 Sekyedumase 1No. 6-Unit Classroom Block 9 Decision by at Anyinasu DCE 1No. CHPS Compound at 6 Emergency 10 Sekyere Central Yereso project CHPS Compound at Old Uncompleted Decision by Abirem DCE 11 Birim North 4 Unit Office and 3 Unit 15 Decision by Travellers’ Shed at Old Abirem DCE 24 Unit Market Stall at Bepong 10 Decision by 12 Kwahu South DCE 2 Unit Kindergarten Block at 1 Decision by Asikuma Odoben Breman Ankaasu DCE 13 Brakwa 2 Unit Kindergarten Block at 1 Decision by Brakwa Eshiem DCE CHPS Compound at Agohome 13 Decision by 14 Agotime-Ziope DCE 1 No 3-Unit Classroom Block 9 Decision by 15 East Mamprusi with ancillary facilities at DCE Nagboo 1 No. CHPS Compound at 26 Decision by 16 Krachi East Kparekpare MCE

15 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Conclusion

42. Executing projects without planned budgets accounts for delays in execution of projects and abandonment of projects. It also leads to low performance on the assembly’s AAP. The implication of executing projects not captured in the budget and also not covered by a supplementary budget is that funds earmarked for projects community members have opted for will be diverted for such projects.

Recommendation

43. Ministry of Finance (MoF) and District Assembly Common Fund Secretariat should check whether the projects assemblies submit for the release of funds are in their development plans and yearly budget before approving their funding.

Procurement of Contractors for Assembly Projects Procurement Plans

44. We examined whether the assemblies prepared Procurement Plans and updated them quarterly as required by the Public Procurement Manual to incorporate revisions in the Action Plans. Our expectation was that each assembly would have planned its procurement activities for the projects under examination and followed the plan;

45. We found that although all the assemblies prepared Procurement Plans for each year of the audit period, 38 (76%) out of the 50 assemblies captured at least one of the two projects in the Procurement Plans. Five out of the remaining 12 assemblies updated their Procurement Plans in the action year to incorporate the projects under audit. Twenty-six out of the 100 projects we examined were not included in Procurement Plans in the year of their execution. Seven assemblies circumvented the approved procurement plans and implemented projects without express approval from the assembly’s Entity Tender Committee. Many of the Procurement Plans were not updated with actual implementation dates for the assemblies to use to analyse their performance in procurement. In some, the time allowed for procurement of contractors, implementation and handover of the project was about three months which

16 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 was unreasonable considering the district assemblies funding context. Assemblies attributed this to the absence of Procurement Officers in the assemblies and used the Planning Officers to double as procurement officers.

Conclusion

46. The quality of Procurement Plans prepared for use by most of the assemblies was poor. Furthermore, some of the assemblies did not follow their Procurement Plans during the procurement activities. This situation is worrying and must be checked.

Recommendation

47. The Public Procurement Authority (PPAu) should increase its monitoring role on the procurement process in the assemblies and also make follow-ups on the assemblies for the implementation of PPAu audit recommendations.

Tendering

48. We examined whether tendering was done in accordance with the Public Procurement Act (PPA); the tender evaluation was in accordance with criteria stated in the instructions to tenderers and whether the assemblies followed the PPAu template for evaluating tenders. Also, whether the assembly encouraged fair competition among tenderers to ensure that selected tenderers had the requisite experiences and capabilities to execute the projects to the required quality.

49. We found that 49 out of the 50 assemblies prepared tender documents. Atebubu- Amanten District Assembly, although advertised for its projects for tendering could not produce any document to show what tenderers submitted for evaluation.

50. In all cases, a maximum of four tenderers submitted tenders after the assemblies placed the advertisement in one daily newspaper. The number of tenderers submitting tenders were mostly three, meeting the minimum number of tenders required to make the tender a success. In 10 assemblies there was no evidence of purchase of the tender documents.

17 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 51. Thirty-six of the assemblies constituted evaluation panels of three with no member of the District Tender Committee (DTC) or the District Tender Review Board (DTRB). In two instances, a member of the DTC/DTRB was also a member of the evaluation panel. Many assemblies could not produce tender opening information and minutes; there were tender evaluation reports with no names of the evaluators or different names from the officers who were commissioned to do the evaluation. Almost all the assemblies could not produce the documents of the losing tenders. The evaluation reports did not conform with the template from the PPAu. There were many inconsistencies and mistakes in the evaluation reports showing the lack of expertise in procurement on the part of the evaluation panels.

52. We found that, although the PPAu periodically conducted procurement audits in the assemblies, the assemblies did not seem to implement the recommendations of the PPAu and still continued to commit the infractions the PPAu reported on.

Conclusion

53. The fairness in the competitions in all the tenders conducted by the assemblies was low. Some of the assemblies violated the requirements of the PPA Manuals by including members of the Entity Tender Committee (ETC) in the evaluation panel. The expertise recommended by the PPA Manuals were normally not available in the assemblies and the assemblies did not make any effort to locate such expertise outside the assembly to assist.

Recommendation

54. The PPAu should together with its stakeholders develop regulations for the PPA (Amendment) Act 2016, Act 914 spelling out sanctions for non-compliance with the Act, Manual and regulations.

55. The LGSS should liaise with the PPAu to train staff of the assemblies involved in procurement on the preparation and evaluation of tenders.

Award of Contracts

56. We examined whether the appropriate review body gave the required approval where the threshold of the Entity Tender Committee was exceeded and whether notification of

18 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 awards was sent to the winning tenderers and the assemblies ensured winning tenderers accepted the award before signing contracts with them and also that the tenderers met the conditions of award.

57. We found that 37 of the 50 assemblies submitted the evaluation report to the DTRB for concurrent approval. Forty-nine out of the 50 district assemblies notified the tenderers who won tenders. Forty-two of the assemblies ensured the selected tenderers submitted the required performance security before contracts were signed. Twelve of the assemblies notified losing tenderers and returned their bid security as stated in the Instruction to Tenderers.

Conclusion

58. On the whole, assemblies did better in award of contracts but eight assemblies took the risk of signing contracts without any form of bond to protect the assembly in the event of the contractor’s non-performance.

Recommendation

59. The Ministry of Finance should ensure that a performance bond is made part of the documents for the application of release funds by an assembly for payment to a contractor for his/her first certificate.

Project Execution Supervision and monitoring of Assembly Projects

Quality of works

60. We examined whether the works engineers visited the project sites to check whether the contractors were executing works in accordance with the specifications. In seven out of 50 districts, there was evidence that the engineers visited the project sites at least once during the execution phase.

19 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 61. We noted some defects in the construction works during our inspections. Some of the defects were because there were no details for the contractors to follow and they ended up using their own discretions to construct the buildings. This happened especially in the construction of roofs. There were also instances of poor workmanship by the contractors who did not follow the drawing or descriptions in the Bills of Quantities. For example, the reduction in the thickness of concrete bed and the replacement of the cement and sand screed with cement slurry. None of the engineers ensured the contractors carried out any of the tests stated in the contract documents to ascertain whether the contractor did what the contract specified. The engineers accepted the defective work and recommended payment to the contractors. In these instances, we made recommendations for disallowance of the expenditure in the district specific reports.

Conclusion

62. The quality of a number of the projects were poor as a result of poor supervision by the Engineers who lacked the will to reject defective work. Another factor was from the pricing of the Bills of Quantities (BOQ) by the Contractors which did not reflect the actual prices for executing those items of work. A third factor was the increases in prices of materials caused by delays by the assemblies in paying for work done and the assemblies’ unwillingness to adjust prices as a result of fluctuations. Thus, contractors mitigated their losses by reducing the quality of work.

Recommendation

63. The LGSS should organise training programmes to improve the capacity of Engineers in supervision and contract management.

Site meetings

64. We examined whether stakeholders participated in the project execution and also if there were opportunities for the stakeholders to make their concerns known on the project. We also checked whether the engineers held regular site meetings, the number of times the site meetings were held and those who attended.

20 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 65. Eighteen (36%) out of the 50 districts held site meetings once during the life of the project. The site meetings were mostly held on the day the site was handed over to the contractors to start work. The people who attended the site handover meetings were mainly assembly members, assembly staff, chiefs, community members, contractors and representatives of the user agencies. All the assemblies complained of lack of funds to conduct site meetings.

66. The assemblies indicated that, the communities could report any of their grievances to the assemblies’ engineers for redress. But in many cases community members confronted contractors directly for work which in their opinion were poorly executed.

Conclusion

67. The assemblies did not consciously conduct monthly site meetings as required by the General Conditions of Contract. The assemblies did not seem to know the importance of site meetings to the progress and quality of works and also that site meetings allow other stakeholders of the projects to make input during the construction of the project.

Recommendation

68. The Regional Planning Coordinating Unit (RPCU) should request for information on site meetings held in addition to the quarterly progress reports of the assemblies. Members of the RPCU should occasionally attend assemblies’ site meetings.

Payment for works not done

69. We found that 44 (88%) of the 50 assemblies paid contractors for works they did not execute. The items of work were captured in the BOQ and were supposed to be executed as part of the contract. In some instances, the quantities stated in the BOQ were reduced or inferior materials were used in place of the specified ones but no adjustment was made for the price differences. For example, 0.5mm thick aluminium roofing sheets were specified in the BOQ but the contractors ended up installing 0.3mm thick Aluzinc roofing sheets. The engineers accepted them and made full payment to the contractors as if they installed the specified material.

21 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 70. The total amount of money we compiled from the audit of the 50 districts as a result of paying for work not executed amounted to GH¢810,105.27. See Appendix 4 for details of each assemblies’ contribution to payment to contractors for work not executed.

Conclusion

71. The non-execution of items specified in the BOQs and the use of inferior materials in lieu of specified ones reduced the desired quality of the works. Secondly, the assemblies did not obtained value for money as they paid more than they should have. Thirdly, it gave the impression that the engineers did not appreciate the need to ensure contractors executed their own requirement of what should go into the project. Lastly, it could be an avenue of collusion between some staff of the assembly and the contractor where the staff could benefit from the excess money paid to the contractor.

Recommendation

72. The RCC should engage consultants to periodically audit samples of projects executed by assemblies to check for payments made for works not done. Those responsible for the payment should be made to refund the amount.

Handling of Variations

73. We found that contractors executed works that were not originally captured on the contract drawings or in the BOQs. Such work items were variations to the contract under Clause 4.2.d of the General Conditions of Contract used for the works. The General Conditions of Contract specified the need for approval from the Employer before the Engineer issues a variation. None of the variations executed was issued by the Engineer through an instruction, neither did the Entity Tender Committee (Employer) approve any of the variations. We found two cases where the contractors wrote to the DCE to request variations in their contracts. This was wrong and showed the lack of understanding of the Engineer of his role under the contract regarding changes in the contract.

74. For example, at District Assembly, the Contractor requested for a variation in the contract because to him, the quantities of work items he had executed differed

22 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 from the bills of quantities. The engineer prepared a payment certificate for the payment of GH¢18,576.42 to the contractor. This was approved by the DTC and the payment was made. The certificate did not show an itemised bill to show where the variations in quantities came from.

Conclusion

75. Variations are common in construction contracts but they must be handled in accordance with the Conditions of Contract and with prudence to prevent it being used as an avenue to enrich unscrupulous staff and contractors. The engineers and members of the DTCs did not demonstrate ability to deal with variations as required by the contract.

Recommendations

 The LGSS should organise training programmes for Engineers and members of the DTC to improve their capacity in the handling of variations in construction contracts,

 The Ministry of Local Government (MLG) should institute a control for assemblies to provide justifications for variations to a contract to the RCC for approval before variations are executed.

Payment of Contingency sum

76. Contingency sum in a contract generally serves to cushion the employer when there are increases in cost arising out of variations to the contract, additional works or fluctuations in the prices of materials. The Engineer who has the authority to certify the contractor’s work is to seek approval form the Employer (in this case the DTC) before certifying additional cost or issuing a variation to an amount stated in the Appendix to the contract. The contingency amount is to be deducted in whole or in part when the final account is prepared to take account of any additional cost.

77. A sample of 10 Assemblies paid the total amount of GH¢128,714.34 being contingencies in their contracts to contractors without justifications on 12 of the selected projects. The assemblies paid the contingencies to contractors:

23 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2  as if it was part of the works executed by the contractor.  to cover variations to the contract which they could not justify or use the right procedure to approve and pay. 78. We found that contractors were the ones who requested for variations rather than the engineers initiating them and the assemblies paid. This circumvented the procedure in the General Conditions of Contract used by the assemblies. Table 4 shows the 10 assemblies and the respective amounts they paid to contractors.

Table 4: Sample of 10 assemblies that paid contingencies without proper procedures.

No. MMDAs No. of Amount of Remark projects Contingency paid GH¢ 1 Adansi North 1 25,792.80 Contractor requested for additional works and was paid all the contingency sum 2 Ahafo Ano North 1 3,906.70 Paid the amount out of the contingency sum of GH¢4,127.33 without justification. 3 Amansie Central 2 4,000.00 Paid the amount out of the contingency sum of GH¢4,152.00 without justification and approval. 4 Agotime Ziope 2 17,100.00 Paid GH¢5,500.00 for furniture and GH¢5,500.00 for contingency works on Nurses quarters without justification. Also paid GH¢6,000 on Police Station project without justification 5 Asunafo South 1 4,694.30 Paid the whole of the contingency sum of GH¢4,694.00 and extra to contractor without justification 6 Bosomtwe 1 15,183.94 Paid the whole contingency sum of GH¢15,183.94 by increasing some quantities in the substructure in the last certificate. 7 Ho West 1 8,736.96 Paid the whole contingency sum of GH¢8,736.96 plus an additional GH¢4,024.24 without justification and approval. 8 Krachi East 1 45,100.00 Paid the amount out of the contingency sum of GH¢45,454.55 for furniture without going through the right procedure. 9 Sekyere Central 1 2,074.84 Paid the amount out of the contingency of GH¢2,537.88 without justification 10 1 2,124.80 Paid the amount out of the contingency sum of GH¢2,168.00 without justification Total 12 128,714.34

Conclusion

79. The Assemblies have the tendency to use the contingency sum without due regard to the principle of economy.

24 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Recommendation

 RCC should monitor the Assemblies to ensure that they don’t pay contingencies to contractors without justification and approval from the required authorities

 MLGRD should ensure that assemblies do not include contingencies in their contracts but constitute a general contingency fund for all projects to be implemented in the year where application can be made to pay for additional cost with prior approval from the respective RCC.

Completion of projects

80. We examined whether the projects were completed on or before the completion period and found that projects in 17 (34%) out of the 50 districts were completed within the expected completion period. Eleven out of the 33 districts that delayed in completing projects had no documentation on file to show the contractors notified the assemblies about the delays. None of the assemblies granted any contractor extension of time and no liquidated damages was deducted from any of the contractors’ contract sums for delaying. The contractors did not claim for interest on delayed payments from the assemblies although the assemblies delayed in paying contractors. Twenty-three out of the 50 assemblies delayed in paying contractors for periods of up to a year. Table 5 shows the list of assemblies and the periods their projects delayed.

Table 5: Delay in completion of the infrastructure projects in selected MMDAs

No. MMDAs Name of projects Start date Expected date Actual date of Delay in of completion completion completion (Months) 1 Abura Aseibu 1 No. 3-Unit classroom 04/08/2016 04/02/2017 12/04/2018 14 Kwamankese block at Abura Dunkwa Islamic School 2 Adansi North 1 No. 3-Unit KG school 24/02/2016 24/08/2016 27/02/2017 6 with Ancillary Facilities, Fence Wall and Provision of Mechanised Borehole at Brofoyedru 1No. 6-unit classroom 25/06/2015 25/04/2016 20/06/2017 14 block, office and store at Fumso 3 Agona East 12/2015 06/2016 12/2016 6

25 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 No. MMDAs Name of projects Start date Expected date Actual date of Delay in of completion completion completion (Months) 1 No. 4-Unit teachers’ quarters at Agona Nsaba 4 Ahanta West 1No. 6-unit classroom 11/04/2016 11/10/2016 Not completed as 20 block with ancillary at 06/2018 facilities at Azani Construction of 2 – 14/01/2015 14/07/2015 Not completed as 35 Storey community clinic at 06/2018 (Ground floor) at New Amanful 5 Amansie 1 No. CHPS compound 10/09/2015 10/06/2016 Not completed as 24 Central at Akatekyieso at June 2018 Construction of a 1 No. 3 25/11/2015 25/05/2016 06/2017 13 unit Nurses Quarters at 6 Amenfi 1 No.6-unit classroom 20/03/2014 30/09/2014 04/03/2016 18 Central block with ancillary facilities at Chira- Nkwanta 7 Asunafo 1No. CHPS compound at 14/01/2015 14/08/2015 Not completed as 34 South Asibrem at June 2018 1no. 6-unit classroom 30/01/2014 30/07/2014 03/2015 8 block at Kukuom SHS 8 Awutu Senya 1 No. 6-Unit classroom 09/2015 03/2016 12/2016 9 East block with ancillary facilities (office, store, teachers’ conference hall and 1 No. 4-seater W/C facility) at Gada CHPS Compound with 09/2015 03/2016 12/2017 21 ancillary facilities at Krispol city 9 Banda 12-Unit Market Stalls 13/07/2015 13/01/2016 27/07/2016 6 and Open Shed at Saase 10 Birim North 4-Unit Offices and a 3- 09/2015 03/2016 Not completed as 27 Unit Travellers’ Shed at at June 2018 New Abirim 11 1No. CHPS compound at 12/2013 04/2014 Not completed as 48 Ahibenso at April 2018 1No. 8-unit single storey 12/2013 07/2014 Not completed as 45 classroom Block at Bodi at April 2018 SHS 12 East Gonja 3-Unit Classroom Block 10/03/2016 10/09/2016 Not completed as 20 and Ancillary Facilities at May 2018 at Imamiya Islamic Primary (Dagomba Line) 10-Unit Hostel Facility 10/03/2016 10/09/2016 Not completed as 20 at T.I. Training School at May 2018

13 East 09/2014 12/2014 Not completed as 38 Mamprusi 1No. 3-Unit Classroom at February 2018 block with ancillary facilities at Health Assistants Training School 14 Ejura- 6-Unit Classroom Block 18/08/2015 18/02/2016 30/03/2017 13 Sekyedumase with an Office, a Store

26 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 No. MMDAs Name of projects Start date Expected date Actual date of Delay in of completion completion completion (Months) and a Staff Common Room at Anyinasu CHPS Compound at 14/01/2016 14/06/2016 29/09/2016 3 Hiawoanwu 15 Garu 08/12/2016 08/06/2017 07/2017 1 Tempane CHPS Compound at Farfar

16 Gushegu 3-Unit Classroom Block 06/10/2016 06/04/2017 03/2018 11 at Midwifery Training School, Gushegu 3-Unit Classroom Block 21/03/2016 21/09/2016 22/12/2016 3 3-Unit Classroom Block with Office, Store, KVIP and Urinal at Yawungu JHS 17 Jaman North 6-Unit Classroom Block 26/03/2015 26/09/2015 09/09/2016 12 at Adadiem CHPS compound at 26/03/2015 26/11/2015 Not completed as 27 Jinini at Feb.2018

18 Kintampo 3-Unit Classroom Block - 08/2016 21/12/2016 4 South with ancillary facilities at Amoma SHS CHPS Compound at - 03/03/2016 19/06/2016 3 Agyina

19 Krachi East 07/01/2016 07/04/2016 14/12/2017 8 6 - Unit Classroom Block at Betenase 20 Lower Manya 1-No CHPS Compound 10/11/2015 10/05/2016 30/12/2016 7 Krobo with 4-Unit Aqua Privy Latrine at Nuaso 16-Seater Aqua Privy 20/08/2016 20/12/2016 Not completed as 18 Latrine at Adjikpo at June 2018 Yokunya 21 Kwahu South 3-Unit Classroom Block 03/2016 08/2016 09/2017 13 with Ancillary facilities at Atibie 4 No.24 Unit Market 06/2015 03/2016 04/2016 1 Stalls at Bepong 22 Kwahu Afram 3-Unit Classroom Block 09/2015 09/03/2016 10/2017 19 Plains North with Ancillary at Faso- Battor 16-Seater W/C toilet 02/2016 06/2016 Not completed as 23 facility at at May 2018 23 Nkwanta Fire and Ambulance 22/07/2016 01/2017 Not completed as 17 South Station at Nkwanta at June 2018 24 Sefwi 1No. 3-unit classroom 24/05/2015 23/11/2015 03/2016 4 Akontombra block, office and Store at Kramokrom CHPS Compound at 24/05/2015 23/11/2015 12/2016 13 Kwadwokrom 25 Sekyere CHPS Compound at 02/02/2016 02/06/2016 13/07/2016 1 Central Yereso

27 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 No. MMDAs Name of projects Start date Expected date Actual date of Delay in of completion completion completion (Months) 1 No. 3-Unit Nurses 24/09/2014 02/2015 19/05/2015 3 Quarters at 26 Sene East 3-unit Classroom Block 09/2014 09/05/2015 10/2015 5 with Offices and Store, 3-seater KVIP Latrine at Lala 27 South Tongu 3-Unit Classroom Block 20/10/2015 20/01/2016 11/2017 22 at Kua D/A JHS CHPS Compound at 20/10/2015 20/01/2016 11/2017 22 Gonu Agbokope 28 West 6-Unit Classroom Block 22/01/2015 22/01/2016 22/06/2016 5 at Amanfoso CHPS Compound at 04/12/2014 04/12/2015 18/08/2016 8 Adoe

29 Tatale 3-Unit Classroom Block 14/12/2015 14/06/2016 05/09/2016 3 Sanguili and ancillary facilities at Kparabutabu JHS CHPS Compound with 14/12/2015 14/06/2016 18/08/2016 2 2-Seater KVIP and Urinal at Bulikpali 30 Wa West 1 No. 40 bed 14/07/2016 14/01/2017 29/05/2018 16 capacity children’s’ ward at 31 West 1No 3-Unit 16/03/2016 16/09/2016 Not completed 18 Mamprusi classroom block as at March with ancillary 2018 facilities and 90 pieces of dual desks at Namiyela 32 Wassa 1No. 3-unit 27/2/2015 27/05/2015 27/05/2017 24 Amenfi classroom block East with furniture and ancillary facilities at Oppon 33 CHPS Compound at 07/04/2016 07/08/2016 27/02/2017 6 Mognegu

3-Unit Classroom 07/04/2016 07/08/2016 16/05/2017 9 Block and ancillary facilities at Kalegu D/A JHS

Conclusion

81. Completion rates for projects in the assemblies were poor. Many of the delays were caused by lackadaisical attitude of contractors as a result of delay in payment by the

28 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 assemblies, although during the tender stage they all produced evidence of a line of credit to fall on in case of liquidity problems by the assemblies. Some of the contractors worked at their own pace without the Engineers prompting the contractors of their obligations under the contracts. The assemblies’ monitoring systems were not effective as the assemblies’ management did not act on delays by contractors possibly because of their delay in paying contractors.

Recommendations

82. The RPCU in reviewing the annual plans of the assemblies should ensure the number of capital projects embarked on by the assemblies are related to their previous year’s performance.

83. The LGSS should liaise with PPAu to train assembly officials to improve the process of selecting contractors for assembly projects.

Payment for works

84. We examined whether the assemblies paid contractors the amount due within time, and observed controls on expenditure to ensure contractors were not overpaid and also that contractors were adequately resourced to execute their contracts.

85. We found that 43 (86%) out of 50 districts settled all payments due contractors for works done (for both completed and uncompleted projects). We also found that 27 (54%) out of the 50 assemblies paid contractors the amount due within 28 days payment period in the contract. The other 23 assemblies delayed in paying contractors for periods of up to a year.

86. Seventeen (34%) out of the 50 assemblies observed controls on expenditure outlined in the Financial Memorandum for District Assemblies. These controls included contractors’ requests for payment (this often came as a letter asking to be paid rather than the contractor’s valuation of work done), preparation of Interim Payment Certificate (IPC) by the Engineer, monitoring reports, warrants and pre-audit of Payment Voucher.

87. We found that, the assemblies that were purported to have paid contractors’ IPC on time did not encourage contractors to present their valuations for work done until the

29 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 assemblies received their share of the DDF or DACF. Thus, generally, assemblies were unable to pay contractors on time for the works to be executed on or before the contract period.

Conclusion

88. Payment to contractors was a serious problem in all the assemblies. In most cases it was the advance mobilization payment that was made on time. All other payments were not regular as envisaged by the Conditions of Contract. Controls for payments were often violated by the District Chief Executives DCE), District Coordinating Directors (DCD) and the District Finance Officers (DFO). The DCE, DCD and DFO implemented payment without the involvement of the Budget Officer and Internal Auditor.

Recommendation

89. MoF, DACF and DDF Secretariats should ensure regular and timely release of funds to the assemblies to enable them to pay contractors on time.

90. The RCCs’ internal Auditors should check and report on assemblies who violates payment controls for disciplinary action to be taken against the DCEs.

Issuing of contractual certificates

91. We examined whether the assemblies issued contractual certificates to contractors at the stipulated times. The certificates were; the Completion Certificate, Taking over Certificate, Defect Liability Certificate, and the Final Certificate (release of the contractor’s moiety and any other outstanding claims). Contractual certificates outline the responsibilities of the contractual parties at each stage of the project. For example, the issuance of the completion certificate empowers the employer to take over the project from the contractor thereby relieving the contractor of the possession of the site given to him at the beginning of the contract. It also marks the beginning of the defect liability period which allows the employer to observe structural defects within a specified period and asks the contractor to correct any such defects.

30 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 92. We found that 18 (36%) of the 50 assemblies issued Completion Certificates, five (10%) assemblies issued Defects Liability Certificates and three (6%) assemblies issued Taking-over Certificate. Many of the engineers did not issue the contractual certificates to the contractors because they did not understand the importance as well as the role the certificates play in contracts.

93. We also noted that the engineers did not adequately pursue provisions in the contract documents and as a result, lost sight of the need to comply with Clauses 54 to 56 of the General Conditions of Contract on the issuance of the various distinct certificates to contractors.

Conclusion

94. Generally, the assemblies did not attach importance to issuing the contractual certificates mentioned above although they were contractually important documents signifying important milestones of the contract and the transfer of risk from one party to the other. For example, the issuance of the Completion Certificate empowers the employer to take over the project from the contractor thereby relieving the contractor of the possession of the site given to him at the beginning of the contract making the employer responsible for the building thereon.

Recommendation

95. The MLGRD should:

 involve the RCC to request for evidence of the issuance of all contractual certificates from the assemblies before they provide approval to them to release retentions to Contractors

 institute a control in the payment of the retention to contractors for the assembly to show proof to the RCC of the issuance of all contractual certificates to contractors for the RCC to approve for the assembly to release the retention to the contractor.

31 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Assessing Benefits and Impacts of Assembly Projects Impact of Projects

96. We examined whether the assemblies evaluated the implementation of the projects to identify good practices and challenges in order to use the lessons learnt to improve future implementation of projects. We also examined whether the impact of the projects envisaged at the preparation of the DMTDP had been achieved.

97. We found that none of the 50 assemblies evaluated the implementation of its projects to ascertain the successes and challenges of implementation in order to apply lessons learnt on future projects. We also found that none of the 50 district assemblies carried out an impact assessment on the projects executed to know if the projects had achieved the objective for which they were constructed. The failure of the Metropolitan Municipal and District Assemblies’ (MMDAs) to conduct post-project evaluation denies the MMDAs valuable information that will assist them in planning and executing future projects.

98. The projects were purported to have been identified, planned and implemented by the District Assemblies to meet the needs of the communities. We inspected the two selected projects in each of the selected District Assemblies and interviewed key stakeholders on the impact of the projects in their communities.

99. Largely, key stakeholders agreed that the projects had been beneficial to the communities. Stakeholders in 29 District Assemblies stated that both projects had been beneficial to their communities. In 15 District Assemblies, the stakeholders were of the view that only one of the projects had impacted the community positively, whiles in six District Assemblies the stakeholders said the projects had no impact. Case examples are presented in Case Examples 1 to 6.

32 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Case Example 1: Kwahu Afram Plains North District Assembly (KAPNDA)

In the Kwahu Afram Plains North District Assembly (KAPNDA) the head teacher of the school with a newly constructed Classroom Block at Faso-Battor, attested that, the project had been very beneficial. He added that prior to the construction of the classroom block the school held classes under sheds and were affected by unfavourable weather conditions. Enrolment data for the Faso-Battor Basic School obtained from the District GES Directorate showed progressive increase in enrolments since the Classroom Block was provided for use from 2015/16 academic year. See Table 1.

Table 1:Increase in enrollment at Faso-Battor Basic School

Academic Year Level 2014/15 2015/16 2016/17 2017/18 Kindergarten 38 74 30 56 Primary 99 112 140 199 Junior High School 17 ---* 18 24 TOTAL 154 186 188 279 *Disruption of school activities due to outbreak of violence between Fulani herdsmen and indigenes resulting in no JHS classes.

Source: District Education Directorate, GES, Kwahu Afram Plains North District on 16 May 2018

Case Example 2: Gushiegu Municipal Assembly

At the Gushiegu Municipal Assembly (GMA) the students said they were happy with the new classroom block at the Midwifery Training school as it had eased their congestion situation. According to the Principal of the school, she was happy with the classroom block, since the school is able to organise events and functions such as examinations and meetings in the large hall (open classroom) and that the students now have a place to study.

100. In some few assemblies, key stakeholders interviewed expressed their displeasure with the projects, claiming that the projects had not been beneficial to the communities, as described in Case Examples 3 and 4.

33 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Case Example 3: Ahafo Ano North District Assembly

In the Ahafo Ano North District Assembly (AANDA) the CHPS compound was not in operation due to the absence of equipment, water and electricity. The facility has also not been handed over to the Ghana Health Service. Community members had to travel to neighbouring towns like Subriso and Tepa for health care which had not been helpful in cases of emergency. A community member recounted her personal story which led to the loss of her baby — ‘When my labour pain started, I got to the health facility at Subriso I was referred to Tepa, then to . At Bechem, I was again referred to where I finally lost my baby’

Case Example 4: Amansie Central District Assembly

In the Amansie Central District Assembly (ACDA), a completed Nurses Quarters was being used for a different purpose. The project had been allocated to junior staff of the Assembly instead of nurses, as advertised. The Assembly explained that they had given their CHPS facility to accommodate the District Health Director and the NHIS District Director. As such it had taken over the Nurses Quarters as a replacement to accommodate its junior staff.

Projects Completed and In Use

101. Of the 50 District Assemblies, 39 had the two selected projects completed, 10 districts had one of the projects completed whiles one districts had none of the projects completed at the time of the audit.

102. Out of the 36 districts that had both projects completed, 26 districts were using the two projects at the time of the audit. Of the 10 district assemblies that had one of the two projects completed, three of the districts were using the completed and uncompleted projects. This means that some of the districts were not putting their completed projects to use, whiles other districts were using projects that were not completed.

34 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Case Example 5: Wa West Municipal Assembly

At the Wa West Municipal Assembly (WWMA), the audit team found that a 40-bed capacity ward project was completed but was yet to be handed over to the Assembly for use by the Wechiau community. Also, a 4-Unit Classroom block which had been handed over to the Assembly by the contractor in 2017, was yet to be put to use. The District Coordinating Director explained that, the classroom block was built to be used as a Community Health Nursing Assistant School which had not yet been instituted. According to the DCD the Assembly is in the process of obtaining accreditation from the National Accreditation Board (NAB) to start operating the nursing training school.

Case Example 6: Assembly

At Kintampo South District Assembly (KSDA), the two completed projects—a CHPS compound and a classroom block— were not in use. According to District Planning Officer and the District Works Engineer (DWE) the CHPS Compound at Agyina was handed over to Ghana Health Service. However, the District Health Director countered that the facility had not been handed over to the Health Directorate because the Assembly had not equipped the facility with the requisite equipment, furniture and electricity supply hence it could not be used in its current status. The 3-Unit Classroom block was not in use due to misunderstanding between management of the school and the Chiefs and opinion leaders of Amoma. The District Coordinating Director indicated that the Assembly was playing a mediating role between the concerned parties to resolve the impasse to ensure the classroom block is put back to use to achieve its intended purpose.

Conclusion

103. Although the assemblies undertake quarterly monitoring and evaluation of their projects, they do not evaluate whole projects for good practices or challenges in order to help them improve upon their performance. It was also not customary for the assemblies to compare actual benefits of their projects with intended benefits at the completion and use of their capital projects.

35 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Recommendation

104. The NDPC should:

 train Planning Officers on conducting project evaluations and impact evaluation on projects executed, and

 encourage Assemblies to include intended and actual benefits of projects in their Annual Progress Reports on completed projects for review by the NDPC.

Uncommon but Significant Audit Findings Insolvent contractor assigns contract to another contractor

105. Clause 7 of the Conditions of Contract permits a contractor to subcontract with the approval of the Project Manager. However, the contractor may not assign the contract without the approval of the employer in writing.

106. We found that at Adaklu District Assembly (ADA), M/S Exquisite Construction Limited wrote to the DCE informing ADA that the firm had assigned its contract with ADA to M/S Delideyi Company Limited and that payments under the contract were to be made in the joint names of M/S Delideyi Company Limited and National Investment Bank (NIB) Ho. ADA went ahead to make payment as instructed by M/s Exquisite Construction Ltd without analyzing the contractual implications, consultations and approvals.

107. We also found that Bismark Gbediame who signed the contract as Managing Directors for M/S Exquisite Construction Limited was also the Managing Director of M/S Delideyi Company Limited.

Conclusion 108. The Adaklu DA did not analyze the implications of the assignment of the contract to a third party to put the necessary precautions in place before accepting the new relationship by virtue of their subsequent action. The Assembly did not analyze the implication of a Managing Director of a distressed company assigning the contract to himself under a new

36 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 company. The execution of the contract delayed unnecessarily as the parties had to go to court to resolve issues relating to the contractual relationship and payments.

Recommendation 109. We recommend that the assembly should inform their respective RCC for advice when faced with situations of this nature.

Overall Conclusion

110. From the foregoing we conclude that the assemblies although, they had the staff with the minimum qualifications to execute their tasks, seems to lack the enthusiasm and attitudes to achieve what they plan to do. They were lackadaisical, lacked knowledge and skills to deliver on their outcomes. The district assemblies are the foundation unit of development of the nation and as such need to be strengthened to be pillars for national development.

111. The DPOs did not provide the right leadership and experience in leading the preparation of the MTDP. Community members were not actively involved in the preparation of the MTDP, making the document lack the authority from which all capital projects of the districts should flow from. The assemblies breached the social contracts with the communities by executing projects outside of the MTDP.

112. Annual planning, procurement planning, tendering and implementation of capital projects were poorly performed thus the outputs the assemblies eventually got of the projects did not meet the building code. These projects are not likely to last long judging from the poor materials used, accepting lesser sizes than what was specified and paying contractors for work not done.

113. The assemblies tried hard to follow the PPAu standard format for preparing tender documents but the documents seemed to have been mechanically produced. The tendering processes were mostly suspicious and smacked of skewing the projects for particular tenderers who were not necessarily competent.

114. The engineers showed very little ability to supervise the construction works to meet the specifications provided in the BOQs. They accepted defective work and blamed their poor

37 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 performances on lack of tools to check the executed works and also lack of transport to visit project sites. The monitoring structures in the assemblies did not work effectively as monitoring teams just signed off valuation documents without understanding the contents.

38 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 APPENDICES

APPENDIX 1- List of the 50 Districts Audited District name District District name District Capital Capital 1 Wa West Wechiau 26 West 2 Kaleo Nadowli 27 East Mamprusi 3 Builsa South Fumbisi 28 West Mamprusi 4 Tolon Tolon 29 Gushiegu Gushiegu 5 Kintampo South Jema 30 Tatale Sanguili Tatale 6 Banda Banda 31 Zabzugu Zabzugu 7 Jaman North Sampa 32 Nkwanta South Nkwanta 8 Sunyani West Odumasi 33 Krachi East 9 Bosomtwe Kuntunase 34 Ho West Dzolopuita 10 Afigya Kwabre Kodie 35 Adaklu Agotime Kpetoe 11 Ahafo-Ano North Tepa 36 Agotime Ziope Kpetoe 12 Asunafo South Kukuom 37 Atebubu Atebubu 13 Bodi Sefwi Bodi 38 Ejura Sekyedumase Ejura 14 Sefwi 39 Sekyere East Akontombra 15 Wassa Amenfi East Wassa Amenfi 40 Sekyere Central 16 Wassa Amenfi Central Manso Amenfi 41 Sene East Kajeji 17 Amansie Central Jacobu 42 Kwahu Afram Plains Donkorkrom North 18 Adansi North 43 Kwahu South 19 Wassa East 44 Birim North New Abirim 20 Ahanta West Agona 45 South Tongu Sagokope Nkwanta 21 Abura Asebu Abura Dunkwa 46 Lower Manya Odumase Krobo Kwamankese 22 Asikuma Odoben Brakwa Bremen 47 Akuapim South Asikuma 23 Agona East Agona Nsaba 48 Suhum Suhum 24 Awutu Senya East 49 Bole Bole 25 Garu Timpani Garu 50 Gonja East

39 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 APPENDIX 2 - Assessment areas and sub-components

Assessment Area Sub component 1. Identification & selection of projects 1 Initiation of Capital projects 2. Planning, Budgeting & Financing of Projects 3. Project Tendering 2 Procurement and contracting 4. Project Contracting

5. Monitoring & Supervision 3 Project Execution 6. Post implementation evaluation End of Project assessment & 4 Benefit 7. Project generated benefit

40 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 APPENDIX 3 – Methodology for auditing the 50 District Assemblies

Audit methodology for the 50 Districts 115. In 2014, USAID/Ghana through their Consultant, Social Impact Inc designed the GSAM project and scientifically made a selection of 150 district assemblies for the GSAM study. The first fifty district assemblies received social accountability audits. The next 50 district assemblies received hierarchical audits and the last 50 districts assemblies formed a control group where no audit was carried out on them. This 50 district assemblies comprised assemblies that CARE International and its partners conducted social accountability audits on in 2016. The reason for selecting this set of 50 district assemblies was to determine whether there had been some improvements in the performance of the assemblies after receiving the social accountability audits.

116. Fourteen audit teams were set up to carry out the performance audits in the 50 district assemblies. The auditors were a made up of Architects, Civil Engineers, Quantity Surveyors, Valuers, Public Administrators, Accountants, Environmental Scientists and Social Scientists. Audit Service recruited two Civil Engineers as external experts to complement the expertise of the auditors.

117. The audit teams in collaboration with the engineers of the assemblies selected two infrastructure projects from the list of all projects executed from 2013 to 2017 in the assemblies. These projects were either funded with DACF or DDF. These were projects that the assemblies had control over as opposed to GETFund projects or other donor-funded projects which the assemblies’ control was minimal. The two capital projects were completed or were in progress. The selection of the projects was based on cost, i.e. expensive projects were selected in favour of less expensive ones. The classification and source of funding of capital projects we examined are shown in Table 1.

118. The two projects selected from each of the district assemblies enabled the auditors to examine the processes the assemblies went through in identifying and selecting the projects, planning and budgeting for the projects, procuring contractors for the construction of the

41 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 projects, supervising and monitoring of the projects and also evaluating work done by the assembly and assessing the benefits to the communities.

119. To answer the questions in our survey tool, the teams employed the following methods to gather information for the audit;  Documentary reviews  Interviews  Inspections

Documentary reviews

120. The audit team reviewed and extracted information from the assembly’s files. The files included project files, tender and contract documents, District Planning Coordinating Unit (DPCU) meeting files, contract registers, payment files, quarterly and annual reports, Tender evaluation reports and Monitoring and Evaluation reports, Executive Committee meeting files, Sub-committee meeting files and payment vouchers.

Interview with responsible persons

121. In the course of the audit, the team extracted testimonial evidence from key people involved in project identification, planning and implementation. The officials provided answers to questions and insights to operations of the assemblies and also explained why things were in the conditions the auditors met. Officials interviewed included the Chief Executives, Coordinating Directors, Works Engineers, Planning Officers, Finance Officers, Budget Analysts, Internal Auditors, past Works Sub Committee members, former Assembly members, user agencies, etc.

122. The audit teams also interviewed a sample of community members and beneficiaries of projects to make an assessment of the impact of the project on the community.

Inspection of projects

123. In each district, the audit team visited the two projects under examination and collected information on the existing condition of the projects. The information from the site inspections included the status of the project, measurements of the building, type of windows, doors and roof. The audit team compared the information with the drawings, specifications

42 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 and Bills of Quantities for the projects to determine whether specifications have been complied with.

Audit questions and assessment criteria 124. The audits were to answer four main questions on the assemblies’ medium-term, annual and procurement planning, competitiveness of tendering, supervision and monitoring of the projects and impacts of the projects. See Appendix 3 for a detailed list of the Audit Questions and the Audit Criteria used for the audit of the 50 districts.

43 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 APPENDIX 4 - Audit questions and Assessment Criteria used for the audit of the 50 District Assemblies 1) To what extent did the assemblies ensure that capital projects that were awarded for construction were selected through participatory approach? (Planning, tendering, implementation and post-project impacts.

Criteria: Selection of capital projects for construction is to be based on the needs assessment conducted by the assembly in consultation with stakeholders of the Assembly as contained in the District Medium-Term Development Plan (DMTDP). The DMTDP seeks to serve as a concrete representation of the development needs and priorities of the people resident within the jurisdiction of the Assembly.

2) Were the selected capital projects captured in the DMTDP and Annual Action Plan of the Assemblies?

Criteria: All capital projects of the Assembly are captured in the District Medium- Term Development Plan (DMTDP) which the Assembly prepared within the context of the National Medium-Term Development Policy Framework.

3) Were the Assemblies’ tender practices competitive?

Criteria: The District Assembly should follow the Public Procurement Act, Act 663, 2003 for the procurement of goods and service.

4) To what extent were the Assemblies able to ensure that contractors executed contracts according to the contract terms (quantity, cost and time)?

Criteria: Capital projects should be executed in accordance with the specifications in the contract.

5) Were the Assemblies able to procure the necessary funds to pay the contractors on time?

44 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Criteria: According Government of Ghana General Conditions of Contract Section 43, Payments shall be adjusted for deductions for advance payments and retention. The Employer shall pay the Contractor the amounts certified by the Project Manager within 28 days of the date of each certificate. If the Employer makes a late payment, the Contractor shall be paid interest on the late payment in the next payment. Interest shall be calculated from the date by which the payment should have been made up to the date when the late payment is made at the prevailing rate of interest for commercial borrowing for each of the currencies in which payments are made.

6) Did the Assemblies carry out post-project impact assessment? Criteria: The District Assembly is expected to carryout post-project impact assessment to ascertain whether project objective were met and identify lessons learnt to inform future decision making

45 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 APPENDIX 5 – Details of amounts each assembly paid to contractor for work not executed REGION DISTRICT AMOUNT (GHC) TOTAL (GHC) Adansi North - Afigya Kwabre 1,000.00 Ahafo Ano North 63,961.70 Amansie Central 13,001.00 Ashanti Bosomtwe 14,959.44 Ejura Sekyedumase 3,092.00 13,642.00 Sekyere Central - SUB-TOTAL 109,656.14 Asunafo South - Atebubu Amanten 45,779.55 Banda 6,200.00 Jaman North 12,858.50 Brong Ahafo Kintampo South 15,024.00 Sene East 16,364.80 Sunyani West 12,065.00 SUB-TOTAL 108,291.85 Abura Asebu Kwamankese 2,904.00 Agona East 1,768.00 Central Asikuma Odoben Brakwa - Awutu Senya 15,404.40 SUB-TOTAL 20,076.40 Akuapim South Municipal 2,240.00 51,210.47 Kwahu Afram Plains 66,370.00 Eastern 5,719.80 Lower Manya Krobo 19,415.00 Suhum Municipal 8,643.60 SUB-TOTAL 153,599.87 Bole 47,864.52 East Gonja Municipal 12,493.00 East Mamprusi 18,320.41 Gushegu Municipal 52,069.00 Northern Tolon 15,133.50 Tatale Sanguili District 36,388.00 West Mamprusi 6,622.00 63,253.00 SUB-TOTAL 252,143.43 Builsa South 13,734.50 24,435.96 Upper East Garu Tempane 8,125.00 SUB-TOTAL 46,295.46 Nadowli- Kaleo District 8,702.18 Upper West Wa West 12,748.00 SUB-TOTAL 21,450.18 Adaklu 15,891.94 Agotime-Ziope 2,210.00 Ho West 4,213.00 Volta Krachi East Municipal 3,200.00 Nkwanta South District South 816.00 SUB-TOTAL 26,330.94

46 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 REGION DISTRICT AMOUNT (GHC) TOTAL (GHC) Amenfi central District 15,340.00 Ahanta West - Sefwi Akontombra District 7,196.00 Western Bodi District 580.00 Wassa Amenfi East Municipal 47,760.00 1,386.00 SUB-TOTAL 72,262.00 GRAND TOTAL 810,105.27

47 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2 Mission Statement

The Ghana Audit Service exists

To promote

· good governance in the areas of transparency, accountability and probity in Ghana’s public financial

management system

y auditing B

· to recognized international standards and reporting our audit results

And

· reporting to Parliame nt