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50 District Assemblies.Cdr Our Vision Our Vision is to become a world-class Supreme Audit I n s t i t u t i o n d e l i v e r i n g professional, excellent and cost-effective services. REPUBLIC OF GHANA 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 Constitution of Ghana 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, Accra. 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 ADAKLU DISTRICT 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
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