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REPORT OF THE AUDITOR-GENERAL THE MANAGEMENT AND UTILISATION OF DISTRICT ASSEMBLIES' COMMON FUND AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015 This report has been prepared under Section 11 of the Audit Service Act, 2000 for presentation to Parliament in accordance with Section 20 of the Act. Richard Quartey Auditor-General Ghana Audit Service 14 September 2016

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 2016 TRANSMITTAL LETTER

My Ref. AG.01/109/Vol.2/95 Office of the Auditor-General Ministries Block ‘O’ P. O. Box M96 Accra.

Tel. (0302) 662493 Fax (0302) 675496

14 September 2016

Dear Hon. Speaker

REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF THE DISTRICT ASSEMBLIES COMMON FUND (DACF) AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015

I have the privilege and honour to submit to be laid before Parliament, my report on the Management and Utilisation of the District Assemblies’ Common Fund and Other Statutory Funds for the financial year ending 31 December 2015. This report supplements my main report on the operations of the Metropolitan, Municipal and District Assemblies (MMDAs) covering the same period.

The report relates to the management and utilization of the District Assemblies’ Common Fund (DACF) and District Development Facility (DDF) which were provided by the Common Fund Administrator and Ministry of Local Government and Rural Development respectively for mostly physical development activities of MMDAs. The report which has been compiled from unresolved and outstanding matters contained in management letters issued by my office during the 2015 financial year, highlights the significant cases and issues which came out of the routine and special audits carried out under my direction and supervision.

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

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 i

The deficiencies noted in the operations of the Assemblies created avenues for some officials to mismanage funds and resources of the Assemblies to a financial value of approximately GH¢52,974,083.01. The lapses and deficiencies were identified in transactions under account areas such as cash management, contract, procurement and store, and tax irregularities which have been summarized and consolidated in this report.

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

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

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

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

RICHARD Q. QUARTEY AUDITOR-GENERAL THE RIGHT HONOURABLE OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 ii REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF DISTRICT ASSEMBLIES COMMON FUND (DACF) AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015

TABLE OF CONTENTS

Paragraph Page

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

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

PART III Details of findings and recommendations Ashanti Region 17-95 8-23 Brong Ahafo Region 96-203 24-45 Central Region 204-254 46-54 Eastern Region 255-330 55-72 Greater Accra Region 331-378 73-81 Northern Region 379-417 82-89 Upper East Region 418-463 90-98 Upper West Region 464-485 99-103 Volta Region 486-589 104-123 Western Region 590-650 124-134

PART IV District Development Facility and the Local 651-781 135-160 Service Delivery and Governance Programme

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 iii

Appendices 2015 District Assemblies’ Common Fund Allocations Appendix ‘A’ Summary of irregularities according to regions Appendix ‘B’ Summary of irregularities according to MMDAs Appendix ‘C’ 2015 DDF transfer Appendix ‘D' DDF irregularities according to MMDAs Appendix ‘E’

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 iv

REPORT OF THE AUDITOR-GENERAL ON THE MANAGEMENT AND UTILISATION OF DISTRICT ASSEMBLIES’ COMMON FUND (DACF) AND OTHER STATUTORY FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015

PART I

MANDATE, SCOPE AND OBJECTIVES Introduction In accordance with Articles 187(2) and 253 of the 1992 Constitution of Ghana and Section 121 of the Local Government Act, 1993 (Act 462), the Auditor-General has audited the Management and Utilisation of the District Assemblies’ Common Fund and Other Statutory Funds of the 216 Metropolitan, Municipal and District Assemblies (MMDAs) for the period 1 January 2015 to 31 December 2015.

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

Scope of audit and objectives 3. I applied the International Standards of Auditing (ISAs), INTOSAI and AFROSAI-E standards of 1992 in the conduct of the audits. My audits were also guided by Section 13 of the Audit Service Act, 2000 (Act 584) which required that I ascertain whether in my opinion:  The accounts have been properly kept;  All public monies collected have been fully accounted for and rules, regulations and procedures are sufficient to provide effective check on the assessment, collection and proper allocation of revenue;

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 1  Monies have been expended for the purposes for which they were appropriated and expenditures made as authorized;

 Essential records were maintained and the rules and procedures applied are sufficient to safeguard and control Assemblies’ assets and

 Programmes and activities of the Assemblies have been undertaken with due regard to economy, efficiency, and effectiveness in relation to the resources utilized and results achieved.

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

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 2 PART II

Summary of findings and recommendations Introduction 5. My report on the management and utilization of Common Fund and other statutory funds for the 2015 financial year has seen no difference compared with previous ones. The Assemblies continue to operate in disregard to existing rules, regulations, policies, procedures, and directives etc. to ensure effective and efficient use of resources made available to MMDAs. Despite our continued reminders with regard to compliance with the financial regulations the infractions witnessed a significant rise as against 2014 figures. Our management letters and annual audit reports which as usual formed the basis for our reports, revealed internal control weaknesses under our thematic account areas of cash management, contract administration, procurement and stores management and tax administration.

6. The state of affairs in the management of resources by MMDAs continued to reveal the lack of interest and dedication to duties and responsibilities exhibited by both the Ministry of Local Government and Rural Development and management of MMDAs towards the implementation and enforcement of my audit recommendations. I also attributed the situation to the non - imposition of sanctions to defaulters to serve as a deterrent to others. Meanwhile, I urge management of the Assemblies to make paramount, effective supervision and monitoring in order to ensure the enforcement of statutes and regulatory frameworks by scheduled officers and also impose sanctions where due to serve as a deterrent to others.

7. I have summarized and provided in the succeeding paragraphs, the key audit findings identified and their related recommendations made. I have also attached as Appendix ‘A’ details of the Common Fund allocations to the Assemblies in the year. I have provided a schedule of the collated source deductions of Assemblies on regional levels by the Administrator of Common Funds said to be based on agreements signed between the MMDAs and service providers. My detailed findings however revealed

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 3 certain infractions and therefore I intend carrying out further investigations into the issue in my subsequent audits. The summary on regional basis of irregularities have been provided as Appendix ‘B’ with Appendix ‘C’ representing the individual MMDAs’ irregularities. Appendix ‘D’ however shows the individual allocations of District Development Facility (DDF) support to the beneficiary Assemblies in 2015 while Appendix ‘E’ provides the table of irregularities for DDF.

Cash irregularities 8. A maximum of 96 Assemblies were found to have engaged in cash irregularities totaling GH¢25,702,114.89 as classified below:

Irregularity Amount No of (GH¢) MMDAs Unsubstantiated payments 6,533,453.37 96 DACF deductions for items/services not supplied 13,076,144.16 39 Financial assistance to staff without policy guidelines 19,660.00 2 Unbudgeted/unjustified budget overruns 1,523,063.64 6 Unaccounted funds 400,714.18 6 Unretired imprests 303,753.05 9 Unrecovered advances/loans 170,025.34 5 Misapplication of funds 619,157.88 7 Misappropriation of funds 17,450.00 3 Expenditure on late District Chief Executive’s funeral 59,550.00 1 Unauthorised withdrawals from PWD 51,000.00 1 Unpresented payment vouchers 870,222.97 12 Failure to allocate funds to substructures 143,652.85 4 Unsubstantiated financial assistance to students 544,280.21 19 Uneconomical payment of rent advance 42,000.00 1 Payment for undisclosed liabilities/payments without 395,295.68 4 justification Overpayment of repair works 1,616.00 1 Excessive cash payments 40,970.80 1 Non prudent expenditure 226,583.26 6 Seemingly unviable project and endemic liability 663,521.50 1 Total 25,702,114.89

9. I noted that cash irregularities showed a significant increase of 165.08% over 2014 figures due to fresh violations which did not feature hitherto. In the absence of any payment vouchers and other supporting documents to authenticate the propriety

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 4 of the expenditure, I recommended that the Coordinating Directors and Finance Officers should account for the respective sums involved. In cases of unretired imprest I recommended that the amount should be treated as advances to the imprest holders and recovered accordingly.

Contract irregularities 10. A total amount of GH¢22,483,500.59 which constituted contract irregularities disclosed by my audits against a maximum number of 20 Assemblies have been provided in the table below.

Irregularity Amount GH¢ No. of MMDAs Abandoned projects 9,173,173.22 20 Overpayment to contractors 118,177.25 3 Payment for works done without 989,052.15 14 performance certificates/inspection /monitoring reports Unjustifiable payment of contingency/ 1,895,645.76 11 Unapproved variations Completed projects not in use 1,225,630.32 3 Indebtedness to contractors 1,552,724.79 2 Payment of judgement debt 18,471.00 3 Use of unapproved material for works 5,000.00 1 Absence of contract documents on projects 187,458.20 2 executed Failure to maintain retention deposit 48,737.66 2 accounts/Retention paid not recorded in contract register Payment of retention before Defects Liability 88,850.06 1 Period Delayed/poorly executed projects 2,559,702.36 4 Payment of advance mobilization without 15,000.00 1 guarantee Payment without evidence of work 107,329.85 1 done/service rendered Award of in house works to the District 101,570.00 1 Works Section Mobilisation advance paid without contract 13,027.85 1 execution Use of DACF to pay contractor engaged on 3,871,404.45 1 national assignment

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 5 Absence of permit for dam construction 2,400.00 1 Failure to prequalify suppliers and service 445,145.67 1 providers Unfulfilled agreement 65,000.00 1 Total 22,483,500.59

11. I urged management of Assemblies to immediately address issues of delayed and abandoned projects which in our opinion do not only deny intended beneficiaries their due but also result in cost overrun. To avert poorly constructed projects and overpayments as well as payments for works not done, I recommended to affected management to ensure that payments are made based only on certificates duly certified by Engineers and supported by monitoring reports. I further recommended that any official found culpable of any contract irregularities which involve losses to the Assemblies should be surcharged.

Procurement and store irregularities 12. During the year, a maximum of 22 Assemblies were found to have violated the Public Procurement law and Ministry of Finance Store regulations resulting in procurement and stores irregularities amounting to GH¢4,721,382.42. The table of irregularities and their corresponding amounts is provided below.

Irregularity Amount No. of GH¢ MMDAs Uncompetitive procurement 783,552.70 22 Items/service paid for but not delivered/rendered 302,377.58 11 Unaccounted for fuel/stores 1,554,436.98 40 Unaccounted distributed items 409,574.50 6 Repairs/maintenance without works orders 326,650.96 14 Unauthorised issue of store items 345,772.65 2 Acquisition of arms without documentation 9,100.00 1 Purchase of plots of land without title deeds 191,762.00 6 Procurement from non-VAT entities 662,632.05 18 Payment of repairs of private vehicle 3,553.50 1

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 6 Procurement of goods outside Procurement Plan 56,726.50 2 Payment for rent without tenancy agreement 25,400.00 1 Assets register not updated 49,843.00 1 Total 4,721,382.42

13. I recommended strict compliance with the relevant regulations on procurement and store irregularities to forestall the recurrence of violations with regard to purchases not delivered, routed through stores, non-competitive procurements and purchases from non VAT accredited agents. Meanwhile, title to acquired lands by Assemblies should be sought to avert any future litigations.

Tax irregularities 14. My audit revealed tax irregularities totaling GH¢311,365.24 on 29 Assemblies. Irregularities Amount No. of GH¢ MMDAs Failure to deduct withholding taxes 131,546.52 29 Loss of VAT revenue 47,543.71 5 Failure to remit withholding taxes 117,890.67 19 VAT payment without VAT invoices 14,384.34 8 Total 311,365.24

15. As has been the case, I urged management of the culpable Assemblies to ensure strict adherence to the Financial Administration Act, 2003 (Act 654), Financial Administration Regulations, 2004 (LI 1802), Internal Revenue Act, 2000 (Act 592) and the Value Added Tax, 1998 (Act 546) respectively to avoid penalties which might impact negatively on the limited financial resources of the Assemblies. I recommended that any official whose inaction caused the penalties should be surcharged.

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

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 7 PART III

MANAGEMENT ISSUES

ASHANTI REGION

17. Parliament approved an amount of GH¢61,264,954.33 for the 30 Assemblies in the Ashanti Region for the year. However, the Assemblies received a total amount of GH¢57,382,178.31 from the Common Fund Administrator. The amount related to the third quarter of year 2014 and first three quarters of the year under review due to the delayed remittances.

Cash irregularities

Source deductions: GH¢16,876,796.10 18. Under Section 7(b) of Act 455, the Common Fund Administrator allocates funds to all Assemblies to meet specified commitments contained in the Annual Guidelines issued by the Ministry for Local Government and Rural Development and programmes budgeted by the Assemblies in the course of the year. The Administrator however makes source deductions from the allocations before releases are made to the Assemblies for their developmental programmes. These source deductions are so significant that in some cases the Assemblies are unable to complete earmarked programmes.

19. We noted that out of the total receipt of District Assemblies Common Fund (DACF) funds of GH¢57,382,178.31 by the 30 Assemblies in the Ashanti Region during the year, the ADACF deducted at source an amount of GH¢16,876,796.10 representing 29.41% of the total receipt resulting in a net difference of GH¢40,505,382.21.

20. Our preliminary enquiry at the Administrator’s end revealed that the Assemblies individually committed their DACF allocations to outsourced services

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 8 and this was accordingly deducted from their share on quarterly basis. We opined that theses significant deductions would result in the inability of the Assemblies to undertake earmarked programmes.

21. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to prevent the delay in the completion of projects frequently encountered in the districts.

Unsupported payments: GH¢812,589.56 22. In accordance with Part IX, Sections 7, 13 and 14 of the Financial Memoranda, Assemblies are required to substantiate payments by attaching requisite expenditure documents such as invoices, receipts of payees, and statements etc. to payment vouchers for authentication.

23. Our audits however, disclosed that 14 Assemblies in the Ashanti Region failed to attach the requisite expenditure documents to payment vouchers totalling GH¢812,589.56. The breakdown is provided below:

No. Assembly No. of Amount (GH¢) PVs 1. Obuasi Municipal 27 238,193.45 2. Offinso Municipal 4 5,400.00 3. Adansi North District 6 15,270.00 4. Adansi South District 22 10,218.00 5. Atwima Mponua District 2 6,000.00 6. Atwima Nwabiagya District 2 24,000.00 7. Kwabre East District 5 22,320.00 8. Offinso North District 13 225,740.06 9. Sekyere Central District 1 23,600.00 10 Sekyere Kumawu District 3 3,142.00 11 Sekyere South District 5 104,600.01

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 9 12 Kumasi Metropolitan 4 91,324.00 13 Asante Akim Central Municipal 17 25,564.04 14 Bekwai Municipal 25 17,218.00 Total 136 812,589.56

24. The irregularity arose because the Finance Officers and Co-ordinating Directors failed to demand the requisite expenditure documents before authorising and approving of the payments. The propriety of the transactions is in doubt and as a result portrays a potential risk of loss of funds to the Assemblies.

25. In the absence of relevant documents to justify the payments which had remained unaccounted for periods ranging over one to three months, we recommended recovery of the total amount from the respective Co-ordinating Directors and Finance Officers.

DACF deductions for items/services not supplied: GH¢2,871,534.70 26. The DACF Administrator deducted a total amount of GH¢2,871,534.70 from the allocations of six Assemblies for the provision of certain items, equipment and services such as fumigation, training among others. The items and equipment were not delivered and evidence could not be produced to show that the services had also been rendered attesting to claims made by some of the Assemblies that fumigation had not been done at their places. The affected Assemblies are listed below:

No. Assemblies Amount (GH¢) 1. Asante Akim Central Municipal 668,981.04 2 Asokore Mampong Municipal 320,451.66 3. Ejura Sekyedumasi Municipal 517,500.00 4. Offinso South Municipal 651,001.00 5. Kwabre East District 165,600.00 6. Offinso North District 548,001.00 Total 2,871,534.70

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 10 27. We recommended that management of the Assemblies should draw the Administrator’s attention to the matter to ensure delivery of the items and equipment as well as the provision of services without any further delay. The accountability should be evident with the necessary documentation, failure of which the amount involved should be recovered from the Administrator.

Unretired imprest: GH¢47,020.00 28. Management of Ahafo Ano South District Assembly failed to ensure that imprests amounting to GH¢47,020.00 granted within three to ten months of the year to six officers for various activities of the Assemblies were retired at the year end.

29. This contravened Part IX, Section 39 of the Financial Memoranda for MMDAs which provides that all imprest shall be retired at the end of the financial year in the case of standing imprest while special imprest will be retired within the period allowed or on completion of the activities for which the imprests were granted.

30. We noted that management’s inability to strictly enforce the laws enabled the officers to unduly delay with accountability and as a result we were unable to authenticate whether the funds were used in furtherance of the Assemblies activities.

31. We recommended that in the absence of accountability, the amount should be treated as personal advances to the six officers and recovered accordingly.

Unrecovered rent advances: GH¢12,330.00 32. Part IV, Regulations 112(a, c&d) of LI 1802 enjoins a head of department to recover advances from deductions from payments due from government to borrower, from the borrower’s estate or from any other means which may appear feasible.

33. We however, noted at Sekyere Central District Assembly that a total amount of GH¢12,330.00 was paid vide seven payment vouchers as rent advances on behalf of seven members of staff. Although the Assembly’s gesture was to alleviate the

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 11 accommodation problem that confronted the staff at the time, management failed to ensure recovery of the amount and could therefore not extend the facility to other needy staff.

34. We recommended that management should recover the amount without delay from the seven staff concerned.

Use of photocopy receipts to support payments: GH¢39,980.00 35. Our audit disclosed that the Kumasi Metropolitan Assembly used uncertified photocopies of suppliers’ invoices to effect two payments with a total value of GH¢39,980.00. This contravened Part IX, Section 7 of the Financial Memoranda for MMDAs which stipulate that, where original documents are lost, the duplicate copies shall be certified by the appropriate officer that adequate steps have been taken to ensure that no payment has been made on the original documents.

36. In the absence of such certification by the Coordinating Director, we could not vouch the authenticity of the payment and recommended that the amount be recovered from the Finance Officer.

Unaccounted funds: GH¢142,108.08 37. Part II, Regulation 39(1) of the Financial Administration Regulations, 2004 (L.I. 1802) enjoins a head of department to ensure that moneys are utilised in a manner that secures both the optimum value for money and the intention of Parliament.

38. On the contrary, the Mampong Municipal (GH¢129,164.06) and Asante Akim Central Municipal (GH¢12,944.02) Assemblies failed to account for a total amount of GH¢142,108.06 being the balance on funds released to meet expenses for various goods and services. From a total amount of GH¢187,440.06 released per 68 payment vouchers, only GH¢45,331.98 or 24.2% was accounted for. The details are given below:

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 12 No. Assembly No. of Amount Amount Unaccounted PVs Released Accounted Difference (GH¢) for (GH¢) (GH¢) 1 Asante Akim 22 40,977.00 28,032.98 12,944.02 Central Municipal 2 Mampong 46 146, 463.06 17,299.00 129,164.06 Municipal Total 68 187,440.00 45,331.98 142,108.08

39. The above situation poses the risk of funds ending up in individuals’ pockets at the expense of the Assemblies.

40. We recommended that in the absence of accountability for the amount, the Coordinating Directors and Finance Officers be held responsible for the refund.

Misapplication of funds: GH¢5,400.00 41. We noted at Ejura Sekyedumasi Municipal Assembly that an amount of GH¢5,400.00 from the HIV/AIDS account was misapplied for the payment of sitting and other allowances of Assembly members. The anomaly occurred because management failed to strictly adhere to the Guidelines for the utilisation of the Common Fund.

42. Besides acting contrary to the guidelines, management also violated Section 87 (2) of the Local Government Act, 1993 (Act 462) which states that “for the avoidance of doubt all monies received by a District Assembly from District Assemblies Common Fund shall be expended only on projects which form part of the approved Development Plan for the district.

43. Consequently, the objective of the earmarking funds for the HIV/AIDS programme might not be achieved.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 13 44. We recommended that the amount should be recovered from the Assembly’s Internally Generated Fund (IGF) account into the HIV/AIDS account so as to be used for the intended purposes.

Outstanding balance due from DACF Administrator: GH¢7,245.06 45. Based on our recommendation in the 2014 audit, management of the Ejisu- Juaben Municipal Assembly opened a bank account to enable the Common Fund Administrator transfer an outstanding balance of GH¢18,867.25 due the Honourable Member of Parliament from his share of the District Assemblies’ Common Fund as at 31 December 2014.

46. However, as of 31 December 2015 the Administrator had only transferred GH¢11,622.19 into the account leaving an outstanding balance of GH¢7,245.06. The shortfall of the amount due would not enable the Member of Parliament achieve his workplan.

47. We recommended to the Ejisu-Juaben Municipal Assembly to pursue the DACF Administrator to transfer the outstanding balance into the Hon. MP’s account to enable him undertake his planned programmes and activities.

Seemingly unviable project and endemic liability: GH¢663,521.50 48. The Ejisu-Juaben Municipal Assembly in 2012 entered into an agreement with Messrs. J. A. Plant Pool for the supply of one Zoomlion Dozer (ZD 220.3) and one Wheel Loader (ZL 50 G) at a total cost of GH¢1,048,521.50 to be paid in three years through direct deductions from the Assembly’s share of the District Assemblies’ Common Fund. Exactly three years into the end of the scheduled arrangement; 31 December 2015 only GH¢385,000.00 had been paid, leaving a balance of GH¢663,521.50.

49. The Assembly intended to hire out the machinery as a way of improving on its IGF. However, the high cost of maintenance is rendering the venture seemingly

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 14 unviable. From an income of GH¢145,895.00 generated during the year the Assembly expended GH¢155,178.40 on maintenance costs incurred from frequent breakdowns.

50. The outstanding balance coupled with the huge maintenance costs therefore meant management burdening the Assembly with a seemingly endemic liability. This situation arose because in our opinion, the Assembly did not carry out cost benefit analysis before taking the decision to purchase the machinery.

51. We recommended that in future due diligent work should be done before committing the Assembly’s funds into any project and advised management to reconsider its position on this venture with the attendant debt.

Contract irregularities

Abandoned project: GH¢37,144.70 52. The District Assemblies’ Common Fund programme is physical development oriented, as such, it is appropriate for Assemblies to give priority to the funding of abandoned and ongoing projects before embarking on new ones. This would ensure that targeted communities reap the benefit of projects undertaken for them.

53. We however noted that the Mampong Municipal Assembly had abandoned a 3Unit Classroom block project with a contract value of GH¢66,583.27 after paying GH¢37,144.70 and thereafter gone ahead with the award of other projects in the succeeding years. The project which was awarded in October 2008 and scheduled for completion in May 2009 is 65% completed.

54. When projects are abandoned, the likelihood of incurring cost overruns arising from inflationary effects on building materials cannot be overemphasized.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 15 55. We recommended to management to endeavor to complete the project before awarding any new ones, for the communities to derive the intended benefits and to prevent the investment of GH¢37,144.70 from going down the drain.

Payment for works done without work orders and performance certificates: GH¢192,454.50 56. Six Assemblies paid a total amount of GH¢192,454.50 for supposed works done but failed to attach to the payment vouchers, work orders and performance certificates signed by any authorised officers to confirm that works had been satisfactorily done contrary to Regulations 1520 and 1524 of the Ministry of Finance Store Regulations 1984. The details are provided below:

No. Assembly No. of PVs Amount (GH¢) 1 Ejisu-Juaben Municipal 4 36,830.00 2 Offinso Municipal 1 2,800.00 3 Ahafo Ano North District 7 49,892.50 4 Ahafo Ano South District 15 64,379.50 5 Asante Akim South District 35,275.00 6 Sekyere East District 2 3,277.50 Total 192,454.50

57. The anomaly which arose from non-compliance with the regulations puts the Assemblies at the risk of paying for shoddy or no works done.

58. We recommended that in future works done should be supported with work orders, inspection and performance certificates before payments are made.

Unjustifiable payment of contingency amount: GH¢3,970.00 59. Part II, Regulation 39 (2c) of L.I. 1802 provides that, the head of accounts section of a department shall control disbursement of funds and ensure that transactions are properly authenticated to show that amounts are due and payable. Additionally, in

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 16 contract management, contingency funds provided in contract estimates or certificates of payment do not form part of the contract sum but reserved to meet unforeseen circumstances. For such payments, reasons are provided to justify the payment and approval given by the Tender Committee.

60. On the contrary, Sekyere Kumawu District Assembly paid contingency funds of GH¢3,970.00 to a contractor, Messrs Al-iddrisafoho who constructed a quarters at Kumawu without justification.

61. In the absence of any justification and approval of the payment by the District Tender Committee, we recommended that the amount should be recovered from the contractor otherwise the DCD, DFO and District Engineer should refund the amount into the Assembly’s account.

Completed project not in use: GH¢156,402.02 62. The mandate of an Assembly is to harness and develop the resources in its locality, provide the communities with social amenities to enhance the well-being of its people amongst others.

63. Our audit of Asante Akim South District Assembly revealed that a Bamboo Manufacturing Produce Centre at Obogu which was constructed and had manufacturing machines installed at a total cost of GH¢156,402.02 was formerly handed over to the Assembly in November 2015.

64. However, the absence of a Transformer for power generation had rendered the project idle, four months after the handing over.

65. We recommended that management should as a matter of urgency take the necessary steps to acquire the Transformer for the project to take off for the community to derive the intended benefits.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 17 Procurement and store irregularities

Uncompetitive procurement: GH¢243,152.02 66. Section 43(1) of the Public Procurement Act (PPA), 2003 (Act 663) requires that procurement entities should request quotations from as many contractors or suppliers as practicable but from at least three different sources.

67. On the contrary, we noted that seven Assemblies procured goods and services to the tune of GH¢243,152.02 without obtaining alternative quotations from other sources. The Assemblies and their corresponding amounts are indicated below:

No. Assemblies Amount (GH¢) 1 Ahafo Ano North District 47,632.40 2 Asante Akim North District 48,227.32 3 Atwima Nkwawoma District 16,102.00 4 Atwima Nwabiagya District 22,000.00 5 Kwabre East District 16,325.00 6 Offinso North District 6,434.00 7 Sekyere South District 86,431.30 Total 243,152.02

68. The essence of the regulation is to ensure that procurement entities obtain competitive pricing for goods and services procured. This practice by management blurs transparency and in the circumstances we were unable to ascertain whether the Assemblies obtained value for money in the procurement processes.

69. We recommended that management and the procurement committees should in future make all procurements competitive for transparency and fair pricing, otherwise the necessary sanctions be imposed on officials for breach of regulations.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 18 Items purchased but not delivered: GH¢27,582.00 70. The Atwima Nwabiagya District Assembly made four payments valued at GH¢21,062.00 for car tyres and assorted building materials but these were not delivered to the Assembly. Similarly, Amansie Central District Assembly made a payment of GH¢6,520.00 for the installation of intercommunication system in the office which was not installed.

71. The two Assemblies violated Part II, Section 16 (1a) of the Financial Administration Act, 2003 (Act 654) which requires among others that payment should not be made for any work done, goods supplied or services rendered unless an authorised officer certifies that work has been performed or goods supplied and prices found reasonable.

72. There is the tendency of the Assemblies losing funds through the payment for undelivered goods and services.

73. We recommended that the management of these Assemblies should pursue the suppliers to deliver the goods, failing which the Coordinating Directors and Finance Officers should be surcharged with the amount for negligence.

Stores unaccounted for: GH¢260,252.11 74. Part XII, Sections 16 and 24 of the Financial Memoranda for MMDAs respectively require that all store items received by an Assembly should be supported by either a purchase order or store receipt voucher duly endorsed with the relevant store ledger folios when recording the items in the store ledger.

75. Furthermore, Part IV, Section 35 of Act 654 describes accountability to have been discharged when government stores are consumed in the course of public business and records are there to show their (stores) consumption.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 19 76. Our audits however, revealed that eight Assemblies in the Ashanti Region procured items to the tune of GH¢260,252.11 but failed to record the receipt and issue of the items in any store ledgers. Below are the details:

No. Assembly Account (GH¢) 1. Kumasi Metropolitan 19,000.00 2. Asante Akim Central Municipal 9,745.75 3. Ejisu-Juaben Municipal 34,998.00 4. Obuasi Municipal 147,863.36 5. Ahafo Ano South District 23,622.00 6. Asante Akim South District 8,351.00 7. Offinso North District 12,092.00 8. Sekyere Kumawu District 4,580.00 Total 260,252.11

77. In the absence of relevant documents for accountability, we were unable to certify whether the items were actually procured and used for the benefits of the Assemblies.

78. We recommended that the Co-ordinating Directors and Finance Officers should account for the items or be made to refund the amount involved.

Fuel procured but not accounted for: GH¢16,362.00 79. The Sekyere East (GH¢8,600.00) and Asante Akim North (GH¢7,762.00) District Assemblies, did not record fuel purchased worth GH¢16,362.00 in any log book contrary to Part XII, Section 60 of the Financial Memoranda which provides for such procedural measure in transport management. As a result, we could not certify the use of the fuel in furtherance of the Assemblies’ objectives.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 20 80. We recommended that management should provide evidence of receipt and use of the fuel or the amount refunded by the Co-ordinating Directors, Finance Officers and Transport Officers who handled the transactions.

Acquisition of arms without documentation: GH¢9,100.00 81. Part VI, Section 11 of the Financial Memoranda enjoins an officer responsible for a head of expenditure to vouch for payment by ensuring that expenditures in respect of services are included in the approved, supplementary or reallocated estimates. Additionally, Part XII, Section 64 requires an Assembly to maintain a Register of Assets that it owns or leases.

82. The Asokore Mampong Municipal Assembly procured two pump action guns valued at GH¢9,100.00 from the Main DACF and MP’s DACF accounts for the personal use and protection of the Municipal Chief Executive (MCE) and Hon. Member of Parliament for Asawase Constituency. These were licensed in their names.

83. The guns which were not budgeted for in the 2015 estimates were neither taken on ledger charge and issued out nor recorded in the Assembly’s Assets Register.

84. In the absence of effective documentation, the guns might go missing without detection.

85. We recommended that the weapons should be properly documented to establish ownership to the Assembly in compliance with the laws and also management should operate within budgets in order not to throw its budget into disarray.

Title deeds on lands acquired not obtained: GH¢17,762.00 86. In land administration, best practice requires that title deeds are acquired to transfer bona fide right of ownership of lands to persons or institutions acquiring them. Contrarily, the Asante Akim Central Municipal Assembly and Asante Akim

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 21 North District Assembly acquired lands at Jantriso and Agogo from private persons at the cost of GH¢10,000.00 and GH¢7,762.00 respectively but had failed to obtain any title deeds on it. The absence of any title deed would expose the lands to possible encroachments and litigations with its attendant loss of funds to the Assembly.

87. We recommended to management to obtain title deeds from the appropriate authorities in order to encumber the land from any foreseeable encroachments and loss of funds in future.

Purchases from non-VAT registered entities: GH¢230,276.67 88. Section 30(2) of the Financial Administration Act, 2003 (Act 654) and Section 183(4) of the Financial Administration Regulations 2004 (L.I. 1802) require that government stores should be procured from only VAT registered entities.

89. We noted that five Assemblies procured goods and services valued at GH¢230,276.67 from non-VAT registered entities in contravention of the above regulations. The details are provided beneath:

No. Assemblies Total Amount VAT Element Paid (GH¢) (GH¢) 1 Ahafo Ano North District 33,620.00 8,697.30 2 Ahafo Ano South District 31,689.60 5,545.69 3 Asante Akim South District 79,220.07 13,863.51 4 Atwima Mponua District 62,147.00 10,875.70 5 Atwima Nwabiagya District 23,600.00 4,130.00 Total 230,276.67 43,112.20

90. We recommended that the management of the affected Assemblies should comply with the VAT laws for the avoidance of penalties, failure of which the necessary sanctions should be imposed on the responsible officials who breached the law.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 22 Tax irregularities

Failure to deduct/remit withheld taxes: GH¢27,208.33 91. Section 84(2) of the Internal Revenue Service Act, 2000 (Act 592), provides that 5% tax should be withheld from payments made to resident persons for goods and services supplied.

92. Section 87(1) of the Act also directs a withholding agent to remit any tax withheld to the Ghana Revenue Authority (GRA) within 15 days after the end of the month the payment subject to the withholding tax is made.

93. Our audit however disclosed that, six Assemblies failed to withhold the required 5% tax of GH¢19,272.90 while two other Assemblies did not remit the withheld tax of GH¢7,935.43 to GRA. The details are provided below:

No. Assemblies Un-withheld Unremitted Tax Tax (GH¢) (GH¢) 1 Mampong Municipal 3,989.45 2 Obuasi Municipal 2,723.64 3 Offinso Municipal 1,540.00 4 Ahafo Ano North District 1,518.30 5 Asante Akim South District 872.90 6 Atwima Kwawoma District 1,624.00 7 Sekyere Central District 5,211.79 8 Sekyere South District 9,728.25 Total 19,272.90 7,935.43

94. The failure to deduct and also remit the taxes withheld promptly to GRA arose from the Co-ordinating Directors and Finance Officers non-compliance with the tax laws and therefore denied the State of tax revenue.

95. We recommended that the management of the Assemblies should comply with the above stated regulations without further delay for the avoidance of penalties.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 23 BRONG A0HAFO REGION

Introduction 96. A total amount of GH¢49,134,408.67 was released by the Administrator of the District Assemblies’ Common Fund for distribution among the 27 Assemblies in the Brong Ahafo Region although the approved amount for the year was GH¢52,389,725.59. The release related to the third quarter of year 2014 and first, second and third quarters of year 2015.

Cash Irregularities

Source deductions: GH¢12,531,154.16 97. We noted from the receipt of DACF funds of GH¢49,134,408.67 made to the 27 Assemblies in the Brong Ahafo Region during the year that, deductions at source by the ADACF amounted to GH¢12,531,154.16 representing 25.50% of the total receipt resulting in a balance of GH¢36,603,254.51 to be used to meet the Assemblies’ planned activities for the year.

98. Our preliminary enquiry at the Administrator’s end revealed that the Assemblies individually committed their DACF allocations to outsourced services and were accordingly deducted from their share on quarterly basis. This has the effect of the Assemblies’ inability to meet their planned programmes for the year.

99. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to prevent the delayed projects saga frequently encountered in the districts.

Unsupported and un-receipted payments: GH¢408741.27 100. Contrary to Part II, Regulation 39 2(c) & (d) of the Financial Administration Regulations, 2004 (LI 1802) a total of 92 payments valued at GH¢395,379.00 made by eight (8) Assemblies in the Region lacked the requisite supporting documents. These

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 24 transactions bore no correspondences detailing the purposes of the transactions and in some cases list of beneficiaries and acknowledgments.

101. The lapse which was generally occasioned by laxity on the part of the respective Finance Officers in adhering to the regulation could lead to losses through payment for goods/services not rendered to the Assemblies. The details are as shown in the table below:

Assembly No. of PVs Amount-GH¢ Asunafo North (Main & PWD) 37 146,225.50 Asunafo South (Main & PWD) 14 46,593.00 Banda 23 97,677.00 Kintampo South 3 6,000.00 Nkoranza South 1 20,000.00 Brekum Municipal 1 3,205.00 Dormaa West 1 10,550.00 Tain 12 65,128.50 Total 92 395,379.00

102. In a related development, the Nkoranza North District Assembly made two payments for workers’ entitlements and meeting allowances amounting to GH¢3,154.00 but were not acknowledged by the payees in violation of Part IX, Section 13(a) of the Financial Memoranda for Assemblies.

103. The Banda District Assembly also failed to obtain official receipts for four payments valued at GH¢10,208.27 made to two caterers of the Ghana School Feeding Programme in violation of Part II, Regulation 28(1) of LI 1802.

104. We recommended that in the absence of relevant documents justifying the payments recovery should be made from the Co-ordinating Directors, Finance Officers, Internal Auditors and Programme Coordinators for negligence.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 25 Source deductions by the Common Fund Administrator without the Assemblies benefiting from the supposed services: GH¢5,835,631.00

105. Our audit revealed that a total amount of GH¢5,835,631.00 was deducted at source from the allocation of 16 Assemblies for the provision of services such as fumigation, sanitation, NALAG dues, training and waste management among others but these services were not rendered. Details are shown below:

Assembly Amount deducted GH¢ Atebubu Amantin Municipal 347,618.78 Sene East District 395,522.86 Asunafo North Municipal 178,668.00 Asunafo South District 74,494.06 Jaman North District 248,400.00 Jaman South District 248,400.00 Kintampo South District 478,296.70 Techiman North District 165,600.00 Nkoranza North 295,001.00 Tano North District 649,873.44 Dormaa Central Municipal 654,487.96 Berekum Central Municipal 752,655.25 Dormaa West District 96,246.53 Dormaa East District 21,927.00 Sene West District 393,409.65 Pru District 835,029.74 Total 5,835,631.00

106. We urged management to take up the matter with the ADACF for accountability of the deductions, evidenced by relevant documents, failure of which the amount involved should be recovered from the Administrator.

Misapplication of funds: GH¢600,200.77 107. Part V, Regulation 179 of the Financial Administration Regulations, 2004 (L.I. 1802), precludes a head of department from authorizing payments from funds earmarked for specific activities for purposes other than those activities.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 26 108. We noted on the contrary that, four Assemblies disregarded the regulation and expended a total amount of GH¢600,200.77 from the People With Disability (PWD), MPs’ Common Fund and DACF on various expenditure not related to these special funds as detailed below:

Assembly No. of Fund Purpose Amount PVs Source GH¢ Banda District 32 MP’s CF Various goods and services 539,661.47 Kintampo 2 DACF Rice and sugar for Muslim 29,800.00 South communities Kintampo 2 MP’s CF Construction of Apesika 8,439.30 South Mosque Tano North DACF Cooking utensils and 9,500.00 sponsoring of 6 candidates vying for Assembly membership Dormaa 1 MP’s CF Expenditure on Mr. Haruna 2,100.00 Central Abdulai former Municipal Planning Officer Dormaa 1 PWD Payment for works on the 10,700.00 Central Municipal Education Office Total 600,200.77

109. These refundable payments which were carried out without the consent of the account owners had remained un-refunded as at the close of the year.

110. Consequently, such practice may negatively impact on the programmes for which the funds were earmarked.

111. We urged management of the Assemblies to refund the amount accordingly and also desist from the practice of stifling programmes to be funded by the affected accounts in order to achieve the desired objectives.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 27 Misappropriation and payment of PWD Funds to unregistered beneficiaries: GH¢15,750.00 112. Section 39(1) of LI. 1802 provides that, a head of department shall ensure that moneys are utilized in a manner that secures both optimum value for money and the intention of Parliament.

113. Our audit of the People With Disability Fund revealed that the Asunafo North Municipal Assembly disbursed GH¢13,350.00 to some alleged thirty beneficiaries who were not registered members of the Fund under the Municipal Social Welfare Officer.

114. A follow up through interaction with eight alleged beneficiaries of GH¢3,400.00 revealed that, they rather received a total of GH¢1,000.00. Two out of the eight were paid GH¢300.00 each, one received GH¢ 400.00 whilst the remaining five did not benefit at all. Details are shown in the table below:

Date Beneficiary Zone Amt. Amt. Difference Released Received 30/3/15 Addai John Goaso 400.00 300.00 100.00 -do- Michael Asante Goaso 600.00 - 600.00 7/7/15 Hawa Ahmed Kasapii 500.00 400.00 100.00 -do- Hayford Asare Ayomso 400.00 - 400.00 -do- Leticia Frimpong Goaso 400.00 300.00 100.00 9/9/15 Vivian Asantewaa Mim 200.00 - 200.00 -do- Owusuaa Mercy Goaso 300.00 - 300.00 4/11/15 Kwajo Asare Mim 600.00 - 600.00 Total 3,400.00 1,000.00 2,400.00

115. In the presence of the eight, Mr. George Fofie who handled both transactions could not deny the allegation. We therefore attributed his action to fraudulent intent that denied appropriate beneficiaries access to the facility.

116. We recommended that the total amount of GH¢15,750.00 be recovered from Mr. George Fofie and sanctioned thereafter for breach of financial discipline.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 28 Unpresented payment vouchers: GH¢564,001.02 117. Due to ineffective supervision by management of four Assemblies over their Finance Officers (FOs) and failure of these (FOs) to exercise due diligence in their work, 48 payment vouchers valued at GH¢564,001.02 and detailed below could not be presented for audit in violation of Part I, Regulation 1(1) of LI 1802.

Assembly No. PVs Amount GH¢ Wenchi Municipal 2 25,076.00 Dormaa Central 3 4,453.18 Municipal Dormaa West District 8 159,519.85 Tain District 35 374,951.99 Total 48 564,001.02

118. We were unable to authenticate these expenditures which have a potential of resulting in financial malfeasance and therefore urged the Coordinating Directors to ensure the submission of the vouchers for audit or the (Finance officers) be held liable to refund the amount involved.

Payment of sub-committees sitting allowances and other expenses without corresponding minutes on deliberations: GH¢7,675.00 119. Part 1, Section 25(1&2) of the Local Government Act, 1993 (Act 462) enjoins sub- committees to collate deliberations on issues as the Assembly may direct and report its recommendations to the Executive Committee for the purposes of assisting the Assembly.

120. We noted that the Banda District Assembly made four payments totaling GHC7,675.00 in respect of four Sub-Committee meetings but could not produce the related minutes on our request to justify the payments.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 29 121. The Coordinating Director’s failure to provide the minutes of the deliberations could mean the non-occurrence of the supposed sittings of the sub-committees and points to the poor coordination of activities of sub committees by management.

122. We recommended that the Coordinating Director be made to provide the related evidence or the amount of GH¢7,675.00 should be recovered from him for ineffective supervision.

Failure to allocate funds to sub-structures: GH¢143,652.75 123. Part 1(3) of the 2014 Guidelines for the utilization of the DACF stipulates that two percent of DACF quarterly releases should be used for the establishment and strengthening of the sub-structures.

124. Our audit disclosed that, four Assemblies failed to allocate the required two percent amounting to GH¢143,652.85 from its 2015 allocations for the strengthening of their sub-structures to enhance district level administration. Details are shown below:

Assembly Amount GH¢ Tano North District 21,975.85 Berekum Municipal 48,719.94 Dormaa West Municipal 60,186.63 Pru District 12,770.43 Total 143,652.85

125. The failure to strengthen the sub-structures could hinder effective dissemination of information, identification and prioritization of development projects within communities.

126. We urged the Coordinating Directors to ensure compliance with the guidelines.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 30 Unbudgeted expenditure: GH¢713,878.00 127. Part I, a(v) of the Financial Memoranda for District Assemblies 2004, requires the Finance and Administration Sub-Committee; to inspect the Assembly’s Balance Sheet, Statement of Revenue and Expenditure and the Trial Balance to ensure that expenditure is not proceeding faster than provided in the approved estimates amongst others.

128. We however, noted that the Dormaa Central and Wenchi Municipal Assemblies exceeded their budgets expenditure by a total amount of GH¢713,878.00 during the year. While Dormaa Central Municipal Assembly(DMA) disbursed a total amount of GH¢676,798.00 from a Supplementary budget which was not approved by the General House of the Assembly, Wenchi Municipal Assembly(WMA) also paid for goods worth GH¢37,080.00 which was not captured in its Annual and Supplementary budgets for the year.

129. Management of WMA explained that certain unbudgeted procurements were made by the Ministry on its behalf and requested to make payments while management of DMA stated that its Supplementary budget was approved by the General House. In both situations no documentary evidence was provided to collaborate the assertions.

130. To prevent the misapplication or misappropriation of funds management should provide the evidence to support its assertions or be held liable to refund any losses that might emerge in future with excesses in expenditure over budgets.

Offer of scholarship without appropriate documentation: GH¢220,724.95 131. Under Part I (2) of the Guidelines for the utilization of the District Assemblies Common Fund (DACF) for 2014, up to 2% of the DACF will be used to support and sustain a District Education Fund. The fund shall be used to finance scholarships, bursaries or repayment of loans to finance needy students with a proven record of good academic performance.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 31 132. It is therefore the duty of the Assembly’s Social Services Committee to provide the criteria for identifying and recommending prospective students for such assistance.

133. However, five Assemblies disbursed GH¢220,724.95 to 265 students as school fees without evidence of the criteria of selection, proven academic performance and receipts from their respective schools to authenticate the payments. Details are shown below:

Assembly No. of beneficiaries Amount GH¢ Banda District 48 126,365.80 Kintampo South District 43 27,150.00 Tano North District 15 11,363.00 Berekum Municipal 100 33,596.15 Dormaa West District 59 22,250.00 Total 265 220,724,95

134. We opined from our audit that the various management did not involve the Social Services Committees in these transactions. This could result in assistance based on favoritism and political influence rather than the need factor. It could also result in loss of State funds through assistance to non-existent students.

135. We recommended that, in order to show transparency in the selection and monitoring of beneficiaries, the Social Services Committee should in future be involved in the processes or management would be held liable to refund any accrued losses incurred. Meanwhile management should justify the authentication of the expenditure.

Outstanding Loans/Advances:GH¢21,614.24 136. In accordance with Part IV, 135 and 113 of LI 1802, a head of department is enjoined to ensure that an agreement for a loan should contain the modalities for

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 32 repayment and that such repayments should be done in the month immediately after the month in which advances and loans are made.

137. Our audit disclosed that as at the end of the year, the Kintampo South (GH¢2,390.00) and Berekum Municipal (GH¢19,224.24) Assemblies had a total unrecovered debt of GH¢21,614.24 from loans granted to farmers under the 2012 Poverty Alleviation Programme and a service provider even after the expiry periods of refund.

138. We noted that lax and failure of the technical officers to pursue the recovery of the amount caused the anomaly and as a revolving fund, had deprived prospective farmers the opportunity to access the assistance.

139. We recommended that management should pursue the recovery of the amount owed by the farmers and the Jema Water Board. We further recommended to management to consider sanctioning farmers who have unreasonably exceeded the repayment schedule without any justifiable reasons.

Payments without Expenditure Warrants: GH¢657,066.64 140. Five Assemblies, as listed below paid a total amount of GH¢651,066.64 without supporting the payments with expenditure warrants to confirm budgetary provisions and managements’ approval of the transactions.

Assembly Amount GH¢ Sene East District 38,563.40 Asunafo North District 377,731.89 Asunafo South District 3,665.00 Tano North District 220,978.79 Sunyani Municipal 16,127.56 Total 657,066.64

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 33 141. This contravened the directive given by the Minister of Finance contained in paragraph 1199 of the 2012 Budget Statement and Economic Policy of the Government and could result in budget overruns as well as misappropriation of funds.

142. We therefore recommended that management of the Assemblies should ensure that all future payments are approved and supported with Expenditure Warrants.

Contract Irregularities

Repairs without works orders: GH¢24,110.00 143. In contravention of Part II, Section 16 (1a) of the Financial Administration Act, 2003 (Act 654) management of Kintampo North (GH¢5,020.00) and Kintampo South (GH¢19,090.00) District Assemblies spent GH¢24,110.00 on repairs of vehicles without reference to any works orders detailing the nature and type of works or certificates of completion of work. This has the likelihood of payment for works not done.

144. We urged management of the Assemblies to ensure that all future repair works are supported by approved works orders and certificates of completion of work to avert paying for services not rendered otherwise the responsible officials should be sanctioned for financial indiscipline.

Indebtedness to contractors: GH¢1,552,724.79 145. Our audit revealed that, the Jaman North (8) (GH¢487,219.80) and Techiman North (9) (GH¢1,065,504.99) Assemblies owed 17 contractors a total amount GH¢1,552,724.79 after the completion of 19 projects.

146. In our opinion, the award of new contracts without recourse to ongoing and completed ones as well as nature of the releases of the District Assemblies’ Common Fund led to the situation.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 34 147. In order to avoid the payment of any judgement debt, we recommended that, in future payment for contracts, priority should be given to ongoing/completed projects than new ones. Meanwhile, management should ensure that the debt is settled without any further delay.

Payment of judgement debt: GH¢6,131.00 148. Part IX, Regulation 226 of LI 1802 states that, a loss shall be considered to have occurred when government is deprived of the use of any public or trust moneys, public property, stores or any other financial or physical assets otherwise than in the normal course of public business.

149. The Wenchi Municipal (GH¢3,131.00) and Jaman North (GH¢3,000.00) Assemblies paid judgement debts amounting to GH¢6,131.00 for breaching the payment of contracts entered into with a private individual and contractor way back in 2005.

150. Laxity in the observance of contractual obligations and rate of turnovers of management over the periods resulted in these losses to the Assemblies.

151. We therefore recommended that all officers whose negligence led to the avoidable judgement settlement of GH¢6,131.00 should be surcharged.

Payments without evidence of work done or services rendered: GH¢107,329.85 152. Contrary to Part II, Regulation 39 (2C) of the Financial Administration Regulation, 2004, the Banda District (GH¢73,795.85), Tano North District (GH¢19,800.00) and Dormaa Central (GH¢13,734.00) Assemblies paid for works and services contracts valued at GH¢107,329.85 which could not be substantiated. We noted that items paid for in the Bills of Quantities were not undertaken by the contractors neither did School Feeding Caterers nor teachers acknowledge receipts and issued letters of physical performance by the caterers respectively.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 35 153. Payments for unexecuted contracts would drain the Assemblies’ coffers and likely to stall the developmental agenda of the Assemblies.

154. We recommended that the DCDs and DFOs should account for the total amount involved and also be sanctioned in accordance with the law for breach of financial discipline.

Unapproved variation of contract: GH¢228,139.82 155. Part IX, Section 68 of the Financial Memoranda for District Assemblies states that, “no alterations shall be made to any contract or schedule or specification thereof except on the recommendation of the District Tender Board. Such alterations shall be signed by the presiding member of the Assembly or such other person who may be authorised”.

156. However, management of three Assemblies varied contract sums by GH¢228,139.82 without recourse to the District Tender Board for approval. Details are provided below:

Assembly Contract price Actual payment Variation Asunafo South District 164,996.30 186,673.97 21,677.67 Banda District 973,228.69 1,157,666.66 184,437.97 Tano North District 81,783.25 103,807.43 22,024.18 Total 1,220,008.24 1,448,148.06 228,139.82

157. There were no letters or minutes on the District Tender Board’s file and as such confirms that the variations of the contracts were deliberately not referred to the Board for approval.

158. The practice has the effect of draining the limited funds of the Assemblies’ resulting in its inability to pursue other development programmes.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 36 159. We recommended that, in the absence of any documentation to show conformity of due processes undertaken in varying the contract prices, the Co- ordinating Directors, Works Engineers, Planning officers and Finance Officers should be held liable for the excess payment of GH¢228,139.82.

Use of unapproved material for works: GH¢5,000.00 160. Part A of page 7/25 of the Bill of Quantities of Dormaa Central Municipal Assembly for the construction of a 40 bed single storey –Children’s Ward at Dormaa Presby Hospital by Messrs Abeiku Construction Works specified the erection of silver coloured metal balustrades (imported type) along the porch and staircase of the building at a cost of GH¢5,000.00.

161. The contractor however, breached this portion of the contract and used locally made metal frame as balustrades instead of the specified material in the bill of quantities.

162. Poor and laxity in supervision by the Municipal Engineer and the Monitoring team compromised the situation thereby denying the Assembly value for money on materials for which the durability cannot be guaranteed.

163. We urged management to ensure that the Engineer and Monitoring and Evaluation team live up to their responsibilities. Meanwhile, the contractor should be compelled to fully comply with the terms of the contract by providing the specified material or be made to refund the amount of GH¢5,000.00 into the Assembly’s account otherwise the Engineer and Monitoring and Evaluation team should be surcharged.

Abandoned projects: GH¢3,170,665.08 164. Paragraph 2 of the DACF guidelines (Ref. DACF/06-1001-2/72) of 1 April 2011 stipulates that, Assemblies should give priority to uncompleted/on-going projects before embarking on new ones.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 37 165. On the contrary, we noted that ten Assemblies abandoned a number of projects scheduled for completion between 2006 and May 2015 and on which a total amount of GH¢3,170,665.08 had been spent. The projects which were at various levels of completion had been ignored while the Assemblies went ahead to award new ones.

Assembly Project Completion Date Amount paid GH¢ Asunafo North 8 unit kitchen facility for Goaso police May 2015 25,047.45 Jaman North Administration block 2008 105,000.00 Jaman South Administration block, clinic, schools, 2004 to 2006 231,040.05 warehouse and slaughter house Wenchi Schools and administration block 2006 856,806.01 Municipal Techiman North School blocks 2011 351,930.18 Tano North Nine contracts 2012 406,650.04 Dormaa Central Guest house and new Dormaa road 2012 46,154.05 Dormaa West Six projects 2013 718,309.47 Sunyani Staff quarters and latrines 2010 207,693.95 Municipal Sene West 20 seater WC toilet and 6 unit classroom 2012 222,033.88 block Total 3,170,665.08

166. The neglect of ongoing projects of Assemblies has usually been due to leadership priorities and could lead to cost overruns to the detriment of other developmental projects of the Assemblies.

167. We urged management to ensure that priority is given to on-going projects before new ones are awarded in future in line with the requirement of the guidelines.

Absence of contract documents on projects executed: GH¢187,458.20 168. Best contract management mandates District Assemblies to keep copies of all correspondences relating to projects and programmes it undertakes for effective monitoring and to prevent losses which may arise from any disputes. Such documents

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 38 among others include individual contract files in which Contract Documents and all correspondences on each project, between the Assembly and contractors, would be kept for record purposes.

169. With the exception of entries in their contract registers, management of two District Assemblies could not produce any other document on six projects valued at ¢193,628.20 and on which a total amount of GH¢187,458.20 had been paid leaving an outstanding balance of GH¢6,170.00. The summary is provided below.

Assembly No. of Contract sum Payments to Balance GH¢ Contracts date GH¢ Banda District 4 48,870.00 42,700.00 6,170.00 Tain District 2 144,758.20 144,758.20 - Total 6 193,628.20 187,458.20 6,170.00

170. We attributed the lapse to inaction on the part of the District Tender Committee and the Engineer to ensure the collation of these documents prior to awarding the contracts.

171. The non-availability of such vital contract documents could result in dummy contracts, prevent effective project monitoring and a resultant loss of funds to the Assemblies.

172. Although these contracts had been completed, we recommended that management provides the contract documents for accuracy and propriety of all payments and to avert any disputes that might arise in the future.

Failure to maintain retention deposit account: GH¢39,879.33 173. The Tano South Assembly retained a total amount of GH¢39,879.33 as retention monies from contract payments but failed to maintain a Retention Account to accommodate the amount contrary to Part VII, Section 47(e) of the Financial

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 39 Memoranda leading to its disbursement on other expenditures funded from the DACF account.

174. Such practice could result in the Assembly’s inability to pay the retention funds to the contractors on due dates which might result in litigation and subsequent loss of funds to the Assembly.

175. In order to ensure that funds are readily available to meet retentions that fall due and to avoid any unforeseeable litigation, we recommended the maintenance of a Retention Deposit Account.

Payment of retention before Defects Liability Period: GH¢88,850.06 176. Part IX, Section 72 of the Financial Memoranda (FM) for Metropolitan, Municipal and District Assemblies (MMDAs) requires every contract to provide for at least ten percent (10%) of the contract sum payable to the contractor to be retained and shall specify the period after the completion of the contract for which such sums shall be retained.

177. However, management of the Techiman Municipal Assembly, paid two contractors for two projects an amount of GH¢88,850.06 representing 3.5% of the 10% retention before the Defects Liability Period.

178. In our view, management’s failure to adhere to the rule could result in the contractors’ inability to correct any defects that might occur without cost.

179. We recommended to management to adhere to the rules on contract management for the avoidance of losses to the Assembly in future or be surcharged with any avoidable cost that might arise.

Payment of unjustified Contingency: GH¢20,755.00 180. Prudent contract management practices require that in the award of contracts, a percentage of contract sums (usually between 5% to 10%) should be set aside to meet

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 40 contingencies such as minor variations or possible unforeseen events not anticipated. The contingency amount is then added to the Bill of Quantities to swell up the contract sum and can only be disbursed upon the approval by consultant/Engineer after a formal application by a contractor stating the reasons and need to utilize a contingency. Contingency monies are therefore not considered as part of the contract sums.

181. On the contrary, Techiman Municipal Assembly paid a contingency of GH¢20,755.00 to M/S R-Kostab Ltd., a contractor without an application from him and approval from the Tender Committee. Payment certificates and Bills of Quantities were rather prepared by the Municipal Engineer in aid of the contractor to merit the amount.

182. The engineer intimated that, it was as a result of additional works carried out by the contractor, but could not justify this assertion with any evidence. The payment for unapplied/unauthorized contingencies could affect the cash flow situation of the Assembly with a reciprocal effect on other projects.

183. We recommended that, in the absence of any justifications for the payment, the Engineer, Coordinating Director and Finance Officer should account for the amount.

Procurement and store irregularities

Uncompetitive Procurements: GH¢205,398.00 184. Section 43(1) of the Public Procurement Act, 2003 (Act 663) requires that procurement entities shall request quotations from as many suppliers or contractors as practicable but from at least three different sources. We however noted that four Assemblies purchased goods and services totalling GH¢205,398.00 without alternative quotations from other prospective suppliers or service providers to ensure competitive pricing. Details are shown below:

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 41 Assembly Amount GH¢ Asunafo North District 85,800.00 Banda District 63,820.00 Berekum Municipal 7,878.00 Tain District 47,900.00 Total 205,398.00

185. In the circumstances, we could not ascertain whether the Assemblies obtained value for money in their transactions and can open the procurement process to abuse.

186. To promote transparency in the management of public resources and for fair pricing in order to save cost, we recommended strict compliance with the provisions in the Public Procurement Act.

Fuel purchases not accounted for: GH¢99,294.00 187. The Coordinating Directors and Finance Officers of Wenchi Municipal, Banda and Tano North Assemblies were unable to show proof of utilization of a total amount of GH¢99,294.00 allegedly expended on fuel for their official vehicles. There were no vehicle log book entries or other evidence available to show how the fuel was utilized.

188. The inaction violated Part IV, Section 35(2) of Act 654 which states that, accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed. Details are provided below:

Assembly Amount GH¢ Wenchi Municipal 23,390.00 Banda District 63,044.00 Tano North 12,860.00 Total 99,294.00

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 42 189. We urged management to provide appropriate documentation to authenticate the payments as well as justifying the use in the interest of the Assemblies, failing which the amount should be recovered from the Coordinating Directors and Finance Officers.

Unaccounted distributed items to communities: GH¢204,637.00 190. Our examination of DACF payment vouchers disclosed that the Wenchi Municipal (GH¢87,032.00), Tano North (GH¢83,082.00) and Dormaa Central Municipal (GH¢34,523.00) Assemblies allegedly distributed store items worth GH¢204,637.00 to some communities and individuals within their jurisdiction.

191. These items were not acknowledged by the supposed beneficiaries and did not indicate their location; quantities delivered, and intended purposes to facilitate an effective audit trail for authentication, in violation of Part IV, Section 35(2a) of the Financial Administration Act, 2003 (Act 654).

192. Our review disclosed that the alleged distributions were mostly carried out by the Chief Executives and Coordinating Directors who failed to ensure accountability, a situation that can lead to diversion and loss of funds to the Assemblies.

193. In the absence of accountability of the items with relevant documentary evidence to facilitate an effective audit trail, District Chief Executives and Coordinating Directors should be made to refund the total amount into the Assemblies’ account.

Items paid for but not supplied/ unaccounted stores: GH¢141,430.82 194. Notwithstanding Part IX, Section 4 of the Financial Memoranda for MMDAs and Part IV Section 35 (2a) of the Financial Administration Act 2003, (Act 654), we noted that 3 to 11 months after the Tano North District (GH¢3,380.00) and Sunyani Municipal (GH¢18,000.00) Assemblies had pre-financed the supply of goods with a total value of GH¢21,380.00, the items had not been delivered.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 43 195. We attributed the lapse to disregard to existing regulations on the part of management and the procurement committees leading to pre-financing projects which could result in the loss of funds to the Assemblies through non-delivery.

196. In a related development the Nkoranza North (GH¢5,485.00), Tano North (GH¢18,640.00) and Tain District (GH¢95,925.82) Assemblies allegedly procured store items worth GH¢120,050.82 but failed to account for them in any of their store records. We were therefore unable to verify the receipt and use of the items. This could lead to non-supply and diversion of store items.

197. The Co-ordinating Directors and Finance and Procurement Officers should ensure that the items are supplied and accounted for or the amount be retrieved from them. The unaccounted stores should be accounted for by the affected Assemblies.

Tax irregularities

Unremitted / failure to withhold 5% taxes: GH¢31,775.16 198. The management of Asunafo South (GH¢4,231.87), Tano South (GH¢512.28) and Kintampo South (GH¢5,264.03) District Assemblies failed to remit withheld taxes totalling GH¢10,008.18 to the Domestic Tax Division of the Ghana Revenue Authority in violation of Section 87(2) of the Internal Revenue Act, 2000 (Act 592).

199. In a related issue, contrary to Part X, Section 84 of Act 592, four Assemblies failed to withhold 5% taxes amounting to GH¢21,766.98 on procurement of goods and services with a gross value of GH¢435,339.60 as detailed below. Assembly Gross Amount GH¢ 5% Withholding tax Jaman North District 222,385.60 11,119.28 Kintampo South District 70,615.00 3,530.75 Berekum Municipal 75,684.00 3,784.20 Techiman Municipal 66,655.00 3,332.75 Total 435,339.60 21,766.98

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 44 200. Ineffective supervision by Coordinating Directors over the work of the District Finance Officers could result in potential loss by imposition of sanctions due to non- adherence to the relevant tax laws.

201. We recommended the immediate remittance of the unremitted amount and payment of the un-withheld tax by the Assemblies for the avoidance of penalties.

Purchases from non VAT registered entities: GH¢47,543.71 202. The Asunafo South (GH¢2,581.25) and Wenchi Municipal (GH¢44,962.46) Assemblies disregarded Regulation 183(4) of LI 1802 which requires government stores to be procured from VAT registered agents and purchased goods valued at GH¢271,678.34 from non-VAT registered entities. This could have earned the government a VAT income of GH¢47,543.71 and improved the national revenue generation.

203. We urged the DCDs and the Finance Officers to always comply with the procurement procedures or be sanctioned for breach of existing laws.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 45 CENTRAL REGION

Introduction

204. In spite of the Parliamentary approval of GH¢41,924,068.24 for the year, the 20 Assemblies in the Central Region received a total amount of GH¢38,537,171.08 from the Common Fund Administrator. The amount related to the third quarter of year 2014 and first three quarters of the year under review.

Source deductions: GH¢10,835,389.43 205. Notwithstanding Section 7(b) of Act 455, we noted that the ADACF made source deductions of GH¢10,835,389.43 representing 28.12% from the total receipt of GH¢38,537,171.08 by the 20 Assemblies in the Central Region during the period reviewed resulting in a net difference of GH¢27,701,781.65.

206. Our preliminary enquiry at the Administrator’s end revealed that quarterly source deductions were made based on individual Assemblies commitment of their DACF allocations to outsourced services.

207. We hold the view that the remaining funds representing 71.88% of the amount allocated would be unable to meet planned programmes of the Assemblies.

208. We urged management of the Assemblies to be circumspect in the administration of their allocations to prevent the delayed projects phenomenon frequently encountered in the districts.

Cash irregularities

Unreceipted payments: GH¢281,231.08 209. We noted that contrary to Part IX, Section 7 of the Financial Memoranda for MMDAs, the Awutu Senya (GH¢3,800.00) and Twifo Heman Lower Denkyira (GH¢277,431.08) District Assemblies disbursed a total of GH¢281.231.08 without

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 46 supporting the payment vouchers with the relevant documents. Consequently, we were unable to authenticate the payments.

210. In the absence of relevant documents to justify the payments, we recommended recovery of the amount from the District Coordinating Directors and the District Finance Officers.

Unaccounted funds: GH¢25,164.26 211. Management of Effutu Municipal Assembly paid vide eight vouchers a total amount of GH¢93,907.75 to the Municipal Planning Officer and one other for various services but accounted for only GH¢68,743.49 with receipts and statements of claims leaving an unaccounted balance of GH¢25,164.26 in violation of Part II, Section 39(2c&d) of the Financial Administration Regulations.

212. There is the possibility that the Assembly might not have derived any benefit from the unaccounted amount and could have ended up benefiting the two persons for no work done.

213. We recommended that the unaccounted outstanding balance should be treated as advances to the two officials and recovered accordingly.

Unsupported payments: GH¢134,319.00 214. Our audit disclosed that in violation of Part IX, Section 7 of the Financial Memoranda for District Assemblies, the Effutu Municipal (GH¢1,740.00) (5), Awutu Senya District (1) (GH¢5,000.00) and Twifu Heman Lower Denkyira (20) (GH¢127,579.00) Assemblies neither supported 36 payments totalling GH¢134,319.00 paid from the main DACF, MPs and Persons’ with Disability Fund (PWD) with original relevant supporting documents nor the certified true copies.

215. In the absence of the original relevant documents or its certified true copies we were unable to authenticate the propriety of the payments.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 47 216. We recommended that the Coordinating Directors and Finance Officers should be held liable to account for the payments.

Unpaid loans and advances: GH¢129,281.10 217. Part IV, Regulation 110 of LI 1802 requires a head of department or an officer to whom the duties of the head of department have been delegated in accordance with Regulation 109 to ensure that advances granted are duly recovered in accordance with the appropriate agreement.

218. Our review of the Rural Community Poverty Alleviation Pilot Project (RUCPAPP) account of the Asikuma/Odoben/Brakwa District Assembly revealed that since 2013 a principal amount of GH¢301,700.00 with an expected interest of GH¢56,328.00 had been loaned to 739 farmers in the Fosuano, Amafopong and Kokoso communities of the Asikuma, Odoben, Brakwa district.

219. We noted that as at 31 December 2015, these farmers owed GH¢102,190.00 having paid GH¢255,838.00 out of the total amount of GH¢358,028.00. The Project Accountant attributed the situation to crop failure due to poor rainfall and the fact that some of the farmers failed to use the funds for the approved purposes.

220. In another development, the former District Chief Executive for Asikuma/Odoben/Brakwa District Assembly, Hon. Georgina Nkrumah Aboah unilaterally appointed Messrs. Aki Microfinance to disburse an amount of GH¢45,000.00 out of a refundable release of GH¢50,000.00 by the ADACF as loans to women groups under the Women Empowerment Project. The loan attracts an interest of 3% to be shared in a ratio of 1:2 between the Assembly and Aki Micro Finance Company.

221. The inability of the Assembly to compel the Micro finance company to recover the amount from the beneficiaries for refund to the Administrator on maturity despite reminders, led to the Administrator recovering it from the Third Quarter 2015 release

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 48 of the Assembly. As at 31 December 2015 the Aki Microfinance Ltd had only refunded GH¢18,358.90 of the expected amount of GH¢45,450.00 (inclusive of the Assembly’s one percent interest) leaving a balance of GH¢27,091.10.

222. This practice has the tendency of depriving others the benefit of such facility and also if action is not taken to compel the defaulters to settle their indebtedness the Assemblies might lose its funds.

223. We therefore recommended to management of the Assembly to without further delay recover the outstanding loans from the beneficiaries of the (RUCPAPP) and Messrs. Aki Microfinance Ltd, otherwise Hon. Georgina Aboah should be held liable.

Expenditure on late District Chief Executive’s funeral: GH¢ 59,550.00 224. We noted that the Gomoa East District Assembly used part of its share of the Common Fund amounting to GH¢59,550.00 on the funeral of the late District Chief Executive, Isaac Kingsley Ahunu-Armah in the year under review. It was also in excess of the budget which we noted to have been approved by the Regional Minister who was then acting as the supervising DCE by GH¢1,120.00 as the budget was GH¢58,430.00. The expenditure includes expenses on foods, drinks, transportation, hire of canopies etc.

225. We further noted that an amount of GH¢ 21,709.00 was spent from the Assembly’s IGF on the same funeral. This brings the total expenditure on the funeral to GH¢81,259.00.

226. We opined that the Common Fund moneys are not meant for such expenditure since the guidelines for the administration of Common Funds does not make for such specific provision. Consequently, earmarked projects from the Fund might not be undertaken.

227. We recommended that the Common Fund account should be reimbursed with the amount of GH¢59,550.00 from the Assembly’s IGF failing which DCD (spending officer) should be held liable for the reimbursement.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 49 Contract irregularities

Abandoned projects: GH¢104,112.23 228. We noted from our inspection of the Effutu Municipal Assembly’s DACF projects that two bungalows contracted at GH¢282,389.90 and meant to house the MCD and MFO had been abandoned since December 2013. The projects which had the Assembly committing a total of GH¢104,112.23 into it were at the roofing level with the wood works gradually crumbling away as a result of the long exposure to the vagaries of the weather.

229. We further noted that the suspension was due to management’s award of numerous projects without cognizance to the Assembly’s limited resources. The abandoned projects can easily deteriorate as a result of their exposure to the harsh weather conditions.

230. We advised management to ensure that the Assembly completes these projects before embarking on any new ones for the avoidance of lost investments in order to achieve the intended benefits.

Completed projects not in use: GH¢146,499.55 231. Our project inspection work revealed that two years after three market projects at Odoben (GH¢38,000.50), Brema Baako (GH¢48,920.20) and Benin (GH¢59,578.85) had been completed at a total cost of GH¢146,499.55 and handed over to the Asikuma/ Odoben/ Brakwa District Assembly, the markets had not been put to use.

232. Wrong siting of the projects and the inability of the Assembly to provide some items to the community heads to perform some customary rituals prior to their use were raised by the communities as causes to the stalemate. As a result, neither the Assembly nor the communities are benefiting from the investments.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 50 233. We recommended that management should ensure that the necessary steps are taken to put the markets to use. Also, in future, extensive consultations should be made with community elders before siting any project.

Failure to prepare certificates of satisfactory completion of work done: GH¢83,160.13 234. Contrary to Section 16(1) of FAA 2003 (Act 654), we noted that six payments from the DACF account of the Gomoa East District Assembly amounting to GH¢86,160.13 for the execution of contract works were not supported by Certificates of satisfactory completion of works done from the head of department or his representative to confirm the satisfactory performance of the service or works done.

235. We could therefore not determine the validity of the transactions nor guarantee that the Assembly did not pay for shoddy or works not done. The anomaly occurred because of failure by the Internal Auditor and Finance Officer to ensure that certificates were attached to the payment vouchers before the payments were effected.

236. We advised management of the Assembly to adhere fully with the provision of the Act. We further urged the Spending Officer, Internal Auditor and Finance Officer to ensure that the related certificates of execution of service/works made available to support the payment vouchers for proper acquittal or the three officers should be surcharged if any extra expenses is incurred for shoddy works done on the projects.

Award of in house works to the District Works section: GH¢101,570.00 237. Our review of payment vouchers revealed that between August and September 2015, management of the Gomoa East District Assembly made five payments totaling GH¢101,570.00 to the Works Engineer for in-house project executions.

238. We noted that had the amounts which ranged from GH¢10,260.00 to GH¢42,200.00 been given out on contracts, the Spending Officer would have violated Schedule 2 of the Public Procurement Act, 2003 (Act 663) which allows the head of a procurement entity an authority to award contracts at a threshold of GH¢10,000.00.

239. We were therefore of the opinion that the Coordinating Director might have deliberately done this to circumvent the above regulation; a situation which when not well supervised could compromise value for money principles

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 51

240. We urged management to be circumspect with the handling of in-house project execution especially when it is likely to violate the Procurement Act.

Procurement and stores irregularities

Procurement of goods outside the procurement plan: GH¢21,166.50 241. We noted that though management of the Effutu Municipal Assembly had an approved procurement plan for 2015, yet it went ahead to procure goods totaling GH¢21,166.50 outside the plan without any justification contrary to Part II, Section 21 Subsection 1(a-b) of the Public Procurement Act, 2003 (Act 663). The action is likely to adversely affect the Assembly’s budget as a procurement plan is one of the performance measuring tools of an entity.

242. We recommended to management to adhere strictly to its approved procurement plan to ensure sanity and prudence in the financial and procurement management of the Assembly.

Failure to secure Land Title Deed 243. We observed that Gomoa East District Assembly which was established in 2008 under Legislative Instrument 1883 had no document of title to prove the ownership of the piece of land on which the official building is sited. In the absence of any title to the land, the Assembly could risk losing its property in the event of any litigation.

244. We therefore advised management of the Assembly to secure the land and property by obtaining the title deed.

Failure to subject works above entity Heads threshold to the tendering process 245. Schedule 2 of the Public Procurement Act, 2003, Act 663 gives the head of Entity (DCD) the authority to give contracts in respect of works of up to GH¢10,000.00. Anything above this amount should be referred to the Entity Tender Committee.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 52 246. Our review of payment vouchers of the Gomoa East District Assembly revealed that five (5) payments in respect of works were each above the entity heads threshold of GH¢10,000.00 and should have been referred to the Entity Tender Committee for a formal contract award. It ranged from GH¢10,260.00 to GH¢42,000.00, was executed by the District Works Engineer. Details are as follows:

PV. No. DATE AMOUNT PAYEE 5 14/5/15 24,750.00 Dist. Engineer 20/8/15 20/8/15 13,180.00 Dist. Engineer 24/8/15 20/8/15 11,180.00 Dist. Engineer 29/9/15 23/9/15 10,260.00 Dist. Engineer 1/8/15 13/8/15 42,200.00 Dist. Engineer

247. The anomaly occurred because of the failure of the DCD to exercise due care in the application of the provision of the Procurement Act.

248. The action of the District Co-ordinating Director in awarding contracts without recourse to tender procedures resulted in uncompetitive contract awards and other contract management deficiencies and could result in loss of funds to the Assembly.

249. We recommended that the management of the Assembly desist from awarding contract without complying with the provisions of the procurement Act or face the penalty under the Act.

Management Response 250. Management explained that all the processes of works were Direct Labour executed by Public Works Department of the Assembly.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 53 Tax irregularities

VAT payment without VAT invoice: GH¢7,350.00 251. Management of Agona West Municipal Assembly failed to obtain a VAT invoice to support a payment of GH¢42,000.00 (inclusive of a VAT component of GH¢7,350.00 to Bonsan Investment Limited for the supply of 200 pieces of dust bins in contravention of Section 19(1) of the Value Added Tax Act, 1998 (Act 546). The possible loss of the amount of the VAT income of GH¢7,350.00 to the State cannot be ruled out as in the absence of the VAT receipts the service provider is not bound to make any VAT payments to the revenue authorities.

252. We recommended that the Assembly should demand the VAT invoice from Bonsan Investment Limited otherwise the VAT amount should be recovered and same paid into the Assembly’s account. Failing this, the paying officer should be surcharged with the amount for negligence.

Failure to withhold 5% tax: GH¢8,429.01 253. Twifo Hemang Lower Denkyira District Assembly neither deducted the required 5 % taxes of GH¢8,429.01 on goods and services procured totaling GH¢168,580.30 in violation of Part X, Section 84, Internal Revenue Act, 2000 (Act 592) nor adhered to Part IX, Section 88(1) of the same Act which directs entities that fail to deduct withholding taxes to make such payments to the tax authorities on behalf the suppliers and recover same later.

254. As this could attract penalties, we recommended that the DCD and the DFO should ensure adherence to the tax laws and act accordingly, otherwise they should be surcharged with any penalties imposed.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 54 EASTERN REGION

Introduction 255. During the year, the 26 Assemblies received a total amount of GH¢46,223,334.63 from the Common Fund Administrator as against a budget of GH¢49,210,497.18 for the year. The amount related to the third quarter of year 2014 and first three quarters of the year under review.

Source deductions: GH¢15,330,730.65 256. We noted contrary to Section 7(b) of Act 455 that, the ADACF made source deductions of GH¢15,330,730.65 or 33.17% from the total amount of GH¢46,223,334.63 received by the 26 Assemblies in the Eastern Region during the year. This resulted in a net difference of GH¢30,892,603.98 to be used by the Assemblies to meet their operations.

257. Our preliminary enquiry at the Administrator’s end revealed that the Assemblies individually committed their DACF allocations to outsourced services which were accordingly deducted from their share on quarterly basis.

258. This practice puts the communities at a disadvantage as it has the tendency of throwing the Assemblies budget into disarray hence their inability to complete the year’s action plan.

259. We therefore impressed on management of the Assemblies to be circumspect in the administration of their allocations to prevent the incidence of delayed projects in the districts.

Cash irregularities

Unsupported Payments: GH¢1,989,058.29 260. Management of 22 Assemblies made payments totalling GH¢1,755,249.03 without supporting with the relevant expenditure documents to ensure that the

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 55 transactions had been properly authenticated and that the amounts were due and payable contrary to Part II, Regulation 39(2c) of the Financial Administration Regulations, 2004. The details are provided below:

No Assembly Amount GH¢ No. of PVs 1 Atiwa District 5,850.00 4 2 Fanteakwa District 5,000 1 3 New Juaben Municipal 15,324.00 14 4 Ayensuano District 66,402.65 17 5 Denkyembour District 160,278.85 12 6 Kwaebibirem District 8,700.00 6 7 Upper West Akim District 58,065.90 20 8 Birim Central Municipal 71,430.90 12 9 Birim South District 2,107,04 1 10 Lower Manya Krobo Municipal 3,500.00 13 11 Kwahu Afram Plains North Dist. 92,723.95 23 12 West Akim Municipal 466,593.97 17 13 Birim North District 111,102.30 14 14 Akyemmansa District 452,968.74 42 15 Kwahu West Municipal 26,264.00 15 16 Kwahu South District 6,017.00 6 17 Kwahu East District 13,014.00 23 18 Kwahu Afram Plain South District 11,094.73 8 19 Upper Manya Krobo District 63,078.50 39 20 Asuogyaman District 91,592.00 19 21 Yilo Krobo Municipal 6,928.00 8 22 Nsawam-Adoagyiri Municipal 17,212.50 16 Total 1,755,249.03 330

261. In addition, 10 Assemblies with details below also made from the Members’ of Parliament DACF accounts payments totalling GH¢230,463.26 in respect of

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 56 scholarship support for brilliant but needy students and others without supporting the vouchers with the relevant expenditure documents.

No Assembly Amount No. of PVs GH¢ 1 Atiwa District 3,000.00 1 2 Ayensuano District 80,151.90 4 3 Suhum District 106,286.36 18 4 Birim Central Municipal 10,048.00 11 5 Kwahu South District 2,200.00 5 6 Kwahu East District 7,100.00 10 7 Kwahu Afram Plains North District 1,900.00 1 8 Kwahu Afram Plains South District 3,552.00 1 9 Akuapim South District 2,962.00 7 10 Yilo Krobo Municipal 13,263.00 19 Total 230,463.26 77

262. In a similar situation, the Kwahu South District Assembly also violated the above regulation when an amount of GH¢3,346.00 spent from the Persons With Disability Fund (PWD) as financial assistance for school fees was also not accounted for with any documentary evidence.

263. We could not vouch the validity of the payments in all the situations and therefore recommended that in the absence of the relevant documents, the respective Coordinating Directors and Finance Officers should be held liable to account for the amount.

Unsubstantiated DACF deductions: GH¢1,504,145.48 264. A total deduction of GH¢1,504,145.48 was made by the ADACF from the Common Fund allocations of eight Assemblies during the year under review for which no benefit was derived. The table below shows the breakdown:

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 57 Assembly Amount Purpose Remarks No GH¢ 1 East Akim 408,820.00 Sanitation improvement 3rd Quarter Municipal 2 Birim Central 399,834.00 Fumigation, street lights 2nd Qtr in Municipal project and insurance 2014 and 1st Qtr in 2015 3 Birim North 43,027.15 Fumigation 2nd Qtr in District 2014 deducted at source 4 Akyemmansa 89,334.00 Street lights 1st Qtr District 5 Akuapim South 88,419.99 Fumigation, Sanitation 1st Qtr in District Improvement Package 2015 NALAG Dues and others 6 Birim South District 89,334.00 Street lights 1st Qtr. 2015 7 Kwahu South 253,704.76 Fumigation, street lights, 1st and 2nd District SIF NALAG Dues & Qtrs. others 8 Kwahu Afram 131,671.58 SIF NALAG & Dues & 1st Qtr 2015 Plains North others District Total 1,504,145.48

265. The practice negatively affected the Assemblies’ cash flow position and hampered the fulfilment of their development agenda.

266. We recommended to the managements of the Assemblies to demand from the Administrator of the DACF documentary evidence for an effective audit trail of utilisation of the deductions on their behalf and the benefit thereof, failing which the Administrator of the DACF should be made to refund the deductions to the Assemblies.

Misapplication of PWD: GH¢1,077.11 267. Contrary to the requirements of Part V, Regulation 179(1) of L.I.1802, we noted that the Kwahu Afram Plain South District Assembly spent an amount of GH¢1,077.11 meant to meet expenses on Persons with Disabilities (PWD) for payments in respect

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 58 of training on LEAP and administrative allowances to Fund Managers which had no bearing on disability issues.

268. The diversion and misapplication of such earmarked funds could deny the intended beneficiaries the opportunity of its use to mitigate any challenges encountered.

269. We therefore advised management to refund the amount into the Disability Fund Account to meet the need of the right beneficiaries.

Excessive cash payments: GH¢40,970.80 270. Notwithstanding Part II, Regulation 48 of LI 1802 which requires a head of department to ensure that cash holdings are kept to the minimum, consistent with the efficient discharge of public financial business by using bank accounts for holding cash balances and making payments by cheques wherever possible, the District Finance Officer (DFO) of Atiwa District Assembly made cash payments totalling GH¢40,970.80 in the name of the District Coordinating Director to four suppliers for the supply of various goods to the Assembly.

271. We drew management’s attention to the risk of theft and other financial improprieties such as the under-declaration of turnover by suppliers leading to tax evasion which are associated with fiscal cash payments.

272. We advised management to refrain from the practice and comply with the above stated regulation by issuing crossed cheques in the names of suppliers when making payments.

Non-prudent expenditures: GH¢226,583.26 273. Part VI, Section II(c) of the Financial Memoranda for MMDAs, 2004 states that “It is the duty of an officer responsible for a Head of expenditure to vouch vouchers for payment. In doing so he shall be held responsible that the prices charged are either

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 59 according to contracts or approved sales or are fair and reasonable according to contract local prices”

274. The management of Akuapem North Municipal Assembly spent GH¢168,599.26 on developing two lorry parks on private property without any signed lease agreement to avert the risk of loss in investments made in the event of dispute. Similarly, the Kwahu Afram Plains South District Assembly also spent a total amount of GH¢57,984.00 to renovate a residential property offered on a year free tenancy by the Presbyterian Church contrary to the terms of the Tenancy Agreement.

275. We advised management of the Assemblies to immediately acquire the relevant documents needed to safeguard any investments made from losses. Failing this the responsible officials should be surcharged with any future losses.

Payment of judgement debt: GH¢12,340.00 276. The West Akim Municipal Assembly paid a judgement debt of GH¢12,340.00 as a result of its failure to honour a contractual obligation of GH¢5,610.00 to M/S Geomage and Sons in 2008 after the supplier had filed a suit at the Koforidua High Court.

277. This situation deprived the Assembly of funds that could have been channeled to meet its development agenda.

278. We advised management to investigate and recover the amount from any official whose negligence led to the loss of funds through the payment of the judgement debt to serve as a deterrent to others to perform their duties with utmost care.

Unrecovered rent advances: GH¢6,800.00 279. Contrary to Regulation 111 and 110 of LI 1802, we noted that the Ayensuano District Assembly rented residential accommodation on behalf of two of its officials

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 60 for GH¢6,800.00 but had failed to effect recovery of the amount from the staff concerned. With its limited funds, such practice may disrupt the Assembly’s planned activities.

280. We urged management to recover the amount from the officials without any further delay.

Failure to sign Bond of service with Medical Superintendent for sponsored course: GH¢7,500.00 281. Management of the Yilo Krobo Municipal Assembly sponsored Dr. Attipoe- Djangmah, a Medical Superintendent of the Klo-Agogo Polyclinic on a course at the College of Physicians and Surgeons in Accra at a cost of GH¢7,500.00. We however noted that management failed to ensure the Medical Officer was bonded to serve the community for a given period before any possible exit. 282. We urged management to ensure the signing of a bond by the medical officer to protect the Assembly and the communities’ interests.

Contract irregularities

Contract variation without approval of General Assembly: GH¢30,500.00 283. Management of Akyemmansa District Assembly paid a variation fee of GH¢30,500.00 to Zoom Lion Ghana Ltd through two quarters of 2015 DACF source deductions without any supplementary agreement and in disregard of Sections 5 and 7 of the standing agreement which stipulated that changes in rates are to be by mutual agreement of the two parties.

284. The standing agreement had earlier pegged the quarterly deduction at GH¢25,000.00. Meanwhile, the fumigation exercise is currently being carried out by the service provider. Details are provided below.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 61 Year of Quarter Contract Amount Paid Variation activities Agreement GH¢ GH¢ Amount GH¢ 2015 1st 25,000.00 40,250.00 15,250.00 2nd 25,000.00 40,250.00 15,250.00 Total 50,000.00 80,500.00 30,500.00

285. We recommended to management to seek approval from the General Assembly to acquit the expenditure otherwise the amount should be recovered from the DCD and DFO. Management should ensure that expenditures are properly budgeted for and kept within approved limits.

Overpayment of contract: GH¢111,572.41 286. In contravention of Regulation 39(c) of the Financial Administration Regulations, 2004 (LI 1802), management of Atiwa District Assembly made full payment of the contract sum of GH¢446,289.64 to a contractor, Messrs. Rabeck Ghana Ltd engaged in the construction of the District Assembly Office Block when the project was 75% complete and valued at GH¢334,717.23 resulting in an overpayment of GH¢111,572.41.

287. We identified weak contract management practices under the situation and could lead to loss of funds to the Assembly in the event that the contractor reneges on his contractual responsibilities.

288. We recommended to the Coordinating Director, Engineer and Finance Officer to ensure the completion of the project by the contractor or be surcharged with any additional cost that might emanate in the completion of the project.

Execution of projects outside the Annual Action Plan: GH¢234,363.30 289. We noted that Birim South District Assembly executed a project and undertook other procurement activities valued at GH¢234,363.30 which were not captured in its

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 62 2015 Annual Action Plan (AAP) neither were they ratified by the General Assembly contrary to Part III, Section 21(1) of the Public Procurement Act, 2003 (Act 663).

290. We advised that management should only undertake procurement activities and execute projects in its Annual Action Plan and seek ratification for those not included for purposes of sanity in the Assembly’s procurement and contract dealings.

Abandoned projects: GH¢2,210,532.31 291. Our audits disclosed that the East Akyem Municipal (7) (GH¢263,894.67), Akuapem North Municipal (1) (GH¢122,156.23) and Kwaebibirem District (4) (GH¢1,824,481.41) Assemblies made a total payment of GH¢2,210,532.31 towards the execution of 12 projects for selected communities. However, these uncompleted projects some of which were started in 2010 had been abandoned. Details are provided below:

No Assemblies No. of Total Remarks Projects Payment GH¢ 1 East Akim 7 263,894.67 Slaughter House, staff quarters Municipal and Office Block some of which were to be completed between 2005 and 2012 2 Akuapim North 1 122,156.23 Office Project abandoned since Municipal 2005 3 Kwaebibirem 4 1,824,481.41 Conference Hall, 6 Unit contract District Classroom Block and Lorry Park at Kade Total 12 2,210,532.31

292. Management of the Assemblies attributed insufficient and irregular release of funds as its major setback.

293. The delay in contract executions might cause cost overrun and would impact negatively on other programmes of the Assembly. Partially completed projects also

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 63 result in locked up funds of the Assembly as the project cannot be put to use, hence value for money is not achieved.

294. We advised management to properly plan and exercise due diligence in its project before undertaking projects in order to curtail avoidable cost and for the Assemblies to obtain value for money expended.

Delayed/unexecuted/poorly executed projects: GH¢230,501.58 295. Our audits disclosed that in 2005 then East Akim (GH¢175,599.44) and Akuapim North (GH¢4,902.14) Municipal Assemblies made payments totalling GH¢230,501.58 to two contractors for the construction of the Kibi Municipal Court Building and a concrete pipe culvert on the Okorase-Pantoase Road to address the perennial flooding. Though started ten years ago, the Court Building project has not been completed while the concrete pipe though completed, had been found ineffective due to poor engineering design.

296. We recommended that management of East Akim Municipal Assembly should place priority on the completion of this project and not initiate new ones in the light of the irregular DACF funding while efforts should be made by Akuapim North Municipal Assembly to rectify the design challenges of the culvert to prevent the perennial flooding of the area.

Acquisition of lands without title documents: GH¢124,000.00 297. The management of Yilo Krobo Municipal (GH¢12,300.00), Suhum Municipal (GH¢105,700.00) and Denkyembuor District (GH¢6,000.00) Assemblies had failed to obtain title deeds for landed properties acquired from three landowners for three projects after making a total payment of GH¢124,000.00. As a result, the Assemblies stood the risk of loss of properties and funds in the event of any disputes.

298. We advised management of the Assemblies to pursue the vendors for the title deeds to the lands to avoid any litigation and its attendant losses.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 64 Procurement and stores irregularities

Non-competitive tendering: GH¢81,317.00 299. Management of Fanteakwa District (GH¢16,600.00), Akyemansa District (GH¢60,564.00) and Lower Manya Krobo Municipal (GH¢4,153.00) Assemblies contravened the regulation when contracts for the supply of goods valued at GH¢81,317.00 was awarded without obtaining any comparative bids to ensure value for money in the procurement process in violation of Part IV, Section of the Public Procurement Act, 2003 (Act 663).

300. The disregard to the above stated regulation blurred transparency as such, we were unable to authenticate whether the Assemblies obtained fair pricing in its procurement dealings.

301. We recommended that management of the Assemblies should ensure strict compliance with the procurement law in future to safeguard its limited funds from abuse.

Purchases not supplied: GH¢190,615.58 302. Part VI Section 11(b) of the Financial Memoranda states that “It is the duty of an officer responsible for a Head of Expenditure to vouch vouchers for payment. In doing so he shall be held responsible for ensuring that the services specified have been performed.”

303. Contrarily, we noted that the Administrator of District Assemblies’ Common Fund made deductions totaling GH¢190,615.58 at source from the allocation of three Assemblies namely Birim Central Municipal (GH¢11,947.58), Birim South (GH¢89,334.00) and Akyemansa District (GH¢89,334.00). Though the deductions were paid to three suppliers for the supply of sports equipment, mist blowers, spraying machines, hair dryers and street lights, these items have not been supplied. The

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 65 Assemblies risk losing these funds which would have been used for its development programmes.

304. We recommended that management of the three Assemblies should bring this matter to the attention of the ADACF to ensure that the items are delivered or the amount involved is recovered from the supplier(s). Failing this, the ADACF should be held liable for the recovery of the amount.

Stores unaccounted for: GH¢609,812.87 305. Part XII, Section 18 of the Financial Memoranda for Assemblies states that, store receipt vouchers shall be used to support the receipt of stores which are not accompanied by a local Purchase Order.

306. Contrary to the above regulation, management of 15 Assemblies made purchases of bags of cement, iron rods, board, roofing sheets and wood products worth GH¢580,812.87 without accountability in any store records. The breakdown is shown below:

No Assembly Value of Purchases GH¢ 1 Fanteakwa District 6,325.00

2 Denkyembuor District 132,104.00 3 Lower Manya Municipal 5,250.00 4 West Akim Municipal 146,580.00 5 Nsawam Adoagyiri Municipal 41,890.10 6 Suhum Municipal 21,336.00 7 Ayensuano District 9,225.00 8 Kwaebibirem District 34,804.75 9 Upper West Akim District 34,316.00 10 Kwahu West Municipal 24,925.69

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 66 11 Kwahu East District 13,018.00 12 Kwahu Afram Plains North District 5,032.50 13 Kwahu Afram Plains South District 21,610.83 14 Upper Manya Krobo District 5,432.00 15 Asuogyaman District 78,963.00 Total 580,812.87

307. In the circumstances, we could not readily confirm the authenticity and distribution of the purchases to the extent that they were used in the interest of the Assemblies. In a related development, the storekeeper of the West Akim Municipal Assembly could not account for 35 sets of jerseys, 40 pieces of footballs and three packets of roofing sheets valued at GH¢29,000.00 during our stock-taking.

308. We recommended that management of the affected Assemblies should account for the items or the amounts involved be recovered from them. The cost of the jerseys etc. of GH¢29,000.00 should also be recovered from the storekeeper of West Akim Municipal Assembly and appropriate sanctions be applied.

Maintenance and repair without works orders: GH¢240,529.47 309. We observed that management of 9 Assemblies spent a total amount of GH¢240,529.47 on repairs of their vehicles without reference to Job Orders and/or Certificates of completion of work in contravention of Part II, Section 16(1a) of the Financial Administration Act, 2003 (Act 654) . Details are shown below:

No Assembly Value of Purchases GH¢ 1 Akuapim South District 119,665.00 2 Ayensuano District 8,885.00 3 Kwaebibirem District 29,252.92 4 Lower Manya Krobo Municipal 23,945.00 5 Akyemmansa District 11,378.00

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 67 6 Birim Central Municipal 2,707.00 7 Birim South District 4,588.84 8 Kwahu West Municipal 18,607.71 9 Asuogyaman District 21,500.00 Total 240,529.47

310. This anomaly which was attributed to the inefficiency of the Works Sections of the Assemblies could result in arbitrary service charges, shoddy works or payment for works not undertaken.

311. We urged management of the affected Assemblies to ensure that all future repair works are supported by approved Works/Job Orders and Certificates of completion of work in compliance with existing laws otherwise the responsible officials should be sanctioned in accordance with existing laws.

Purchases of fuel and lubricants not accounted for: GH¢81,800.65 312. Regulations 299 and 300 of the Ministry of Finance Stores Regulations, 1984 enjoin MDAs to maintain vehicle logbooks on all official vehicles in which daily entries of fuel and lubricants requisitioned are to be entered as well as the monthly computation of fuel consumption. On the contrary, fuel and lubricants valued at GH¢81,800.65 purchased by six Assemblies were not recorded in their vehicle logbooks for control and accountability purposes. Details are provided below:

No Assembly Value of Purchases GH¢ 1 Suhum Municipal 18,300.00 2 Kwahu West Municipal 8,819.65 3 Kwahu South District 3,440.00 4 Kwahu Afram Plains North District 35,505.00 5 Kwahu Afram Plains South District 12,280.00 6 Yilo Krobo Municipal 3,456.00 Total 81,800.65

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 68 313. This lapse was attributed to inadequate supervision of the drivers by Finance and Transport officers and can make the system prone to fraud and other malpractices.

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

Purchases from Non-VAT registered persons: GH¢114,129.83 315. We noted that seven Municipal and District Assemblies undertook procurement activities valued at GH¢114,129.83 with non-VAT registered persons contrary to the requirements of Part IV, Section 30(2) of the Financial Administration Act, 2003 (Act 654) and Part VI, Regulation 183(4) of LI 1802 respectively. Details are provided below:

No Assembly Value of Purchases GH¢ 1 Fanteakwa District 601.71 2 West Akim Municipal 23,600.41 3 Kwahu Afram Plains North District 22,243.97 4 Kwahu Afram Plains South District 36,544.73 5 Lower Manya Krobo Municipal 2,287.65 6 Nsawam- Adoagyiri Municipal 28,210.17 7 New Juaben Municipal 641.19 Total 114,129.83

316. We recommended that management of the Assemblies should only deal with VAT registered persons in future so as to avoid penalties which would impact negatively on the smooth running of the Assemblies.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 69 Un-authorized issue of store items: GH¢345,772.26 317. Due to weak and inefficient stores management controls, the West Akim Municipal (GH¢227,172.26) and Kwahu Afram Plains South District (GH¢118,600.00) Assemblies issued store items valued at GH¢345,772.26 without authorisation by any scheduled management personnel contrary to Chapter 6, Regulation 0601 of the Ministry of Finance Stores Regulations, 1984 which demands that, stores shall only be issued and released to properly authorised persons against properly signed documents”.

318. The practice has the risk of exposing public stores to diversions, theft amongst other store malpractices.

319. We therefore urged management of the Assemblies to ensure that all issues of store items are duly authorized. The storekeepers should be held liable for accountability of the stores and the supervisors should be sanctioned for their negligence.

Procured items issued without corresponding signed distribution lists of beneficiaries: GH¢155,123.00 320. The Hon. Member of Parliaments for Akropong (GH¢119,316.00) and Okere (GH¢35,807.00) Constituencies in their bid to empower constituents bought hardware and electrical appliances, cement, sewing machines, footballs, laptop computers etc.) valued at GH¢155,123.00 for their use. These items were issued in bulk to the representatives of the MPs for onward distribution to the beneficiary constituents.

321. We noted that there were no signed distribution lists attesting to receipt of the items by the intended beneficiaries and to aid an effective audit trail. The situation in our opinion could be abused by the representatives and thereby defeat the objectives of the Hon. MPs.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 70 322. We urged management of the Akwapim North Municipal Assembly to cease the bulk issue of stores to representatives of the Hon. MPs and ensure that issues of store items are only made to identifiable beneficiaries on distribution lists duly approved by the Municipal Coordinating Director.

Assets Register not updated: GH¢49,843.00 323. Part XII Section 64 of the Financial Memoranda states that “Each Assembly shall maintain a Register of Assets that it owns or leases (e.g. land, buildings, infrastructure, plants and equipment, vehicles)”.

324. However, we noted that Suhum Municipal Assembly paid a total of GH¢49,843.00 for gas cylinders, burners, water kettles, microwave ovens, swivel chairs and tables but failed to record them in the Assets Register. The anomaly resulted from inadequate coordination between the Accounts Office, Stores and the Assets Record Holders.

325. As a result, the objective of the Assets Register providing detailed information on all inventory items was not achieved. This lapse could `result in theft, misappropriation, and misuse of these items going undetected.

326. We recommended that management of the Assemblies should ensure the update of the Assets Register with the items procured.

Tax irregularities

Un-withheld and Unremitted taxes: GH¢51,008.07 327. Section 87(1) of the Internal Revenue Service Act, 2000 (Act 592) requires a withholding agent to pay to the Commissioner a tax that has been withheld within 15 days after the end of the month in which the payment subject to withholding tax was made. Section 88(1) of the Act also requires a withholding agent who fails to withhold tax to be personally held liable to pay the un-withheld tax to the Commissioner and recover later from the payees.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 71 328. On the contrary, we noted that 14 Assemblies were involved in tax irregularities amounting to GH¢51,008.07. This was made up of un-withheld and unremitted taxes of GH¢23,463.28 and GH¢27,544.79 respectively. The breakdown is shown below: No Assembly Tax not Tax not Total Deducted Remitted GH¢ GH¢ 1 Kwahu Afram Plains North District 483.50 5,687.23 6,170.73 2 Upper West Akim Municipal - 949.60 949.60 3 Nsawam Adoagyiri District 3,032.61 1,975.56 5,008.17 4 Ayensuano District 2,123.52 - 2,123.52 5 West Akim Municipal 3,225.00 2,817.28 6,042.28 6 Kwaebibirem District 844.14 - 844.14 7 Birim South District 5,395.85 - 5,395.85 8 Kwahu South District 897.30 3,311.99 4,209.29 9 Kwahu Afram Plains South District 3,690.50 - 3,690.50 10 Asuogyaman District 2,878.66 - 2,878.66 11 Suhum Municipal - 8,228.66 8,228.66 12 Kwahu West Municipal - 3,732.42 3,732.42 13 Kwahu East District - 842.05 842.05 14 New Juaben Municipal 892.20 - 892.20 Total 23,463.28 27,544.79 51,008.07

329. The breach of the tax regulation would not enhance the cash flow position of the State and might also result in penalties imposed on the Assemblies.

330. We recommended to management of the Assemblies to comply with the relevant tax regulations and act accordingly. We also recommended that any responsible officer through whose inaction penalties are imposed should be surcharged.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 72 GREATER ACCRA REGION Introduction 331. A total amount of GH¢38,775,421.59 was released by the Administrator of the District Assemblies’ Common Fund for distribution among the 16 Assemblies in the Greater Accra Region although a projection of GH¢41,493,476.76 was made for the year. The release related to the third quarter of year 2014 and first, second and third quarters of year 2015.

Source deductions: GH¢10,630,907.99 332. We noted that out of the total receipt of DACF funds of GH¢38,775,421.59 made to the 16 Assemblies in the Greater Accra Region during the year, an amount of GH¢10,630,907.99 or 27.42% was deducted at source by the ADACF resulting in a net difference of GH¢28,144,513.60.

333. Our preliminary enquiry at the Administrator’s end revealed that the Assemblies individually committed their DACF allocations to outsourced services which were accordingly deducted from their share on quarterly basis.

334. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to prevent the incidence of delayed projects frequently encountered in the districts.

Failure to allocate funds to execute projects due to poor physical development planning 335. The guidelines for the Utilization of the DACF for 2014 directs all MMDAs under the Government Priority Programmes, to allocate resources from their share of the Common Fund for Education and Health facilities with the construction of at least two basic schools towards the elimination of schools under trees and at least two CHPS compounds. On the contrary, we noted that management of the Ga South Municipal Assembly failed to allocate resources from its share of the DACF towards the construction of these projects.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 73 336. Our review of the records disclosed that poor physical development planning by the Accra Metropolitan and Ga South Municipal Assemblies by not making provision of lands for social service facilities accounted for this situation.

337. We urged management to comply with the guidelines on the acquisition of lands and construction of the projects to the benefit of earmarked communities.

Payment to Messrs. Waste Landfill Company Limited without justification: GH¢150,000.00 338. Our examination of the payment vouchers of the Ga Central Municipal Assembly revealed that management paid an amount of GH¢150,000.00 to Messrs Waste Landfill Company Limited from an alleged debt of GH¢469,000.00 per a schedule of indebtedness submitted by the Regional Coordinating Council on the Company’s behalf. The Council had impressed on the Assembly per a memorandum attached to the payment voucher to pay the amount to avert any health hazard in the Greater Accra Region.

339. Contrary to Regulations 39(2) (c) of the Financial Administration Regulations, 2004 (L.I.1802) we noted that the Company and RCC failed to provide any basis for the payment neither was there any accounts maintained in the records of the Assembly for such purposes.

340. We therefore recommended to management to provide the justification for the expenditure otherwise the amount should be recovered from the Company. Failure of which the requesting, authorising and approving officers should be held liable to account for the payment.

Unsupported/Unpresented payments: GH¢649,621.23 341. In contravention to Part IX, Memorandum 14 of the Financial Memoranda of the MMDAs, our audit, disclosed that due to weak management supervision over Finance Officers, nine Assemblies made 17 payments totaling GH¢491,906.83 without

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 74 supporting the vouchers with relevant expenditure documents to validate the transactions. We also noted that two Assemblies out of the nine failed to present 2 payment vouchers with a total value of GH¢157,714.40 for our scrutiny. The breakdown is shown below:

Assembly Unsupported Payment vouchers Unpresented PVs DACF MPCF PWD GAMA WASH MPCF Ningo 49,382.23 Prampram Dist. Shai Osudoku 84,301.16 146,214.40 District Ga Central 17,726.55 18,649.00 10,280.00 Municipal La Dade 42,000.00 28,400.00 Kotopon Municipal Ga South 24,565.00 64,756.00 6,435.00 3,356.00 11,500.00 Municipal Ada West 8,200.00 Distr. La 10,996.00 Nkwantanan Madina Muni. Ada East (SIF) 100,887.39 5,000.00 5,832.50 District Adentan 11,140.00 Municipal Total 298,998.33 138,605.00 16,715.00 28,400.00 9,188.50 157,714.40

342. In the absence of payment vouchers and relevant supporting documents we view the payments to be unjustified.

343. We recommended that the Coordinating Directors and Finance Officers should be held liable to account for the payments.

Financial assistance to needy students not accounted for by the beneficiary institutions: GH¢8,200.00. 344. Our review of the MP’s Common Fund of Ada West District Assembly revealed that, the Member of Parliament for Sege paid vide 17 payment vouchers an amount of

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 75 GH¢ 8,200.00 as school fees to support 16 needy students but these vouchers were not acknowledged by the educational institutions contrary to Section 39 (2) of the Financial Administration Regulations, thereby hindering any audit trail for validation.

345. We further noted that the Member of Parliament personally selected the beneficiaries without the involvement of the Social Services Sub-committee and any set criteria for guidance.

346. The irregularities stated above could lead to a situation where certain individuals would rather benefit from the facility at the expense of needy students.

347. We urged management to ensure that the Social Services Sub-Committee is always involved in the selection process of such benevolence and also official acknowledgments are obtained from the beneficiaries to authenticate such payments.

Payments to proxies without Authority Notes from payees: GH¢12,200.00 348. Under Part IX, Section 16 of the Financial Memoranda for MMDAs, payment should only be made to the person named in the voucher and where in exceptional circumstances it is essential for payment to be made to a nominee the authority under which it is made should be attached in original.

349. We noted on the contrary from the audit of the MP’s Common Fund for the Ga Central Municipal Assembly that payments valued at GH¢12,200.00 and meant for the school fees of 27 needy students were collected on their behalf by proxies without any authority notes to confirm their (students’) consent.

350. The lapse which was occasioned by negligence on the part of the Finance Officer can result in loss of funds to the Assembly as payments may be made to unintended payees.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 76 351. We recommended strict compliance with the regulation to avert any loss of funds to the Assembly and denial of assistance to targeted beneficiaries.

Contract irregularities

Use of Assembly’s Common Fund allocation to pay contractor engaged on a national assignment: GH¢3,871,404.45 352. Under the annual Guidelines for the Utilisation of the District Assemblies’ Common Fund, Assemblies are enjoined to use their allocations for projects/programmes earmarked under their Medium Term and Annual Action Plans.

353. Our contract management review revealed that, on 10 June 2013 a contract for the construction of the Accra Sanitary Sewer and Storm Drainage Alleviation Project was signed between the Republic of Ghana and Messrs. Conti International, LLC, a limited liability company of United States of America. A financing Agreement between the Ministry of Finance of Ghana and Import Bank of United States of America at the total contract cost of GH¢663,299,496.00 was thereafter entered into.

354. We noted on the contrary that, the District Assemblies’ Common Fund Administrator used three quarters allocation of GH¢3,871,404.45 of the Accra Metropolitan Assembly to pay Messrs. Conti International, LLC denying the Assembly funds to execute six of its earmarked development programmes valued GH¢55,586,000.00 during the year (It should be noted that as of May 2016 the final payment of GH¢3,088,582.27 had been made through two of the Assembly’s allocation for the year 2016).

355. We recommended to management to pursue the reimbursement of GH¢3,871,404.45 and the subsequent ones from the Ministry of Finance to prevent the Assembly from suspending its development agenda for the year.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 77 Delayed construction of Assembly Complex and upward review of contract sum without approval by the Tender Review Committee: GH¢1,334,148.28 356. Part IX, Memorandum 68 of Financial Memoranda for MMDAs provides that “No alterations shall be made to any contract of schedule or specification thereof except on the recommendation of District Tender Board and provided that Assembly provision is available. Such alterations shall be signed by the Presiding Member of the Assembly or such other person as may be authorized by the Assembly to act on that behalf and by the contractor”.

357. In June 2007, the Eastern Regional Coordinating Council awarded to Messrs Bawahuud Limited the construction of the Ada East District Assembly Office Complex at an initial sum of GH¢793,610.88 for completion within a year.

358. We noted that the contract sum had been varied on three occasions at percentage rates of 16, 32 and 75 respectively bringing the total variation to GH¢1,334,148.28 without being referred to the Regional Tender Committee for approval or possible retendering of the project. The project is currently ongoing at 85% completion. Below provides the rate of variation.

Date Contract Sum GH¢ Variation GH¢ Percentage (%) 18/06/2008 793,610.88 128,953.33 16.25

01/04/2011 922,564.21 292,759.37 31.73

30/06/2015 1,215,323.58 912,435.58 75.08 Total 2,127,759.16 1,334,148.28 123.06

359. We recommended to management to ensure that variations fall within the accepted rate of 10% or in future contract variations should not exceed the accepted rate of 10% which should require retendering. Meanwhile such variations should be referred to the Tender Review Committee for consideration and approval as required by the regulation.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 78 Overpayment of Contract: GH¢5,087.90 360. Part II, Regulation 45 of the Financial Administration Regulations, 2004 (L.I.1802) states that, “If any expenditure is made in excess of the amounts actually due, the overpayment shall be recovered immediately and paid into the accounts from which it was originally paid and the officer concerned shall report the circumstances immediately to the head of department or the appropriate authority”.

361. For not exercising an internal check on a paid voucher, management of the Ga East Municipal Assembly overpaid a contractor Messrs. Rockwill Enterprise an amount of GH¢5,087.90 over an expected total payment of GH¢240,324.06.

362. Such practice is a drain on the limited funds of the Assembly and might stall its essential activities.

363. We urged Management to recover the GH¢5,087.90 from the contractor and reprimand the Finance Officer, Engineer and Internal Auditor for not exercising due diligence in their work.

Contract variation without authority: GH¢63,157.00 364. Part IX, Memorandum 68 of Financial Memoranda for MMDAs provides that “No alterations shall be made to any contract of schedule or specification thereof except on the recommendation of District Tender Board and provided that Assembly provision is available. Such alterations shall be signed by the Presiding Member of the Assembly or such other person as may be authorized by the Assembly to act on that behalf and by the contractor”.

365. On the contrary, we noted that in August 2015 a contract for the construction of one (1) 6 Unit Classroom Block at Weija at an initial sum of GH¢299,800.00 awarded by the Ga South Municipal Assembly was varied by 21.1% to GH¢362,957.00, without the consent of the Entity Tender Review Committee. As a result, though the contract variation exceeded the accepted 10% rate, this was not retendered neither did we sight any justification for the variation.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 79 366. Such practice blurs transparency with the possibility of arbitrary increase in the contract price without any reasonable justification.

367. We demanded justification for the variation and for sanity and transparency in contract management, we recommended that all variations above the standard of 10% should be referred to the Tender Review Board for approval or retendering before funds are committed.

Procurement and Stores Irregularities

Payment for rent without any tenancy agreement: GH¢25,400.00 368. We noted that the Ga East Municipal Assembly made a payment of GH¢25,400.00 in September 2015 to one Mr. Frederick Agyei as part payment of rent advance on office accommodation at a monthly rate of GH¢2,100.00 for two years. There was no Tenancy Agreement to spell out any terms and conditions for the rental in contradiction to Regulation 39 (2) of the Financial Administration Regulations, 2004.

369. In the absence of this key document the Assembly stands to lose in times of disputes.

370. To forestall any losses, we advised Management to expedite action on having the tenancy agreement signed to complete the transaction.

Fuel purchased not recorded in vehicle logbook: GH¢12,288.00 371. Due to inefficiency in its transport management, the Ga South Municipal Assembly made various fuel purchases valued at GH¢12,288.00 for the supposed use of their official vehicles but failed to account for it in any of the vehicle log books contrary to Part XII Memorandum 60 of the FM for MMDAs, 2004 so as to provide evidence of use in the interest of the Assembly. Under such circumstance the diversion of fuel cannot be ruled out.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 80 372. We recommended that management should account for the fuel procured failure of which the Finance Officer and the scheduled Transport Officer should be held liable to refund the cost involved.

Payment of repairs of private vehicle: GH¢3,553.50 373. Part IX, Regulation 226 of FAR provides that, a loss shall be considered to have occurred when the government is deprived of the use of any public or trust moneys…”

374. Management of Ga South Municipal Assembly bore the cost of repairs amounting to GH¢3,553.50 on the personal vehicle (GW 3649-15) of the Municipal Planning Officer involved in an accident. We noted that in spite of the fact that the vehicle was insured and the officer entitled to vehicle maintenance allowance, management went ahead with its decision.

375. The use of Assembly’s funds earmarked for activities to meet personal expenses inhibits the achievement of its objectives and deprives the community of project developments.

376. We recommended the immediate recovery of the amount from the Planning Officer.

Tax Irregularities

Failure to deduct withholding taxes: GH¢1,520.00 377. Contrary to Section 84(2) of the Internal Revenue Act, 2000 (Act 592), management of the Ga South Municipal Assembly failed to deduct the required 5% withholding taxes totaling GH¢1,520.00 from payments made for goods and services valued at GH¢30,400.00 for remittance to the Ghana Revenue Authority.

378. We recommended adherence to the above stated regulation by the Assembly for the avoidance of any losses through the payment of penalties.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 81 NORTHERN REGION

Introduction

379. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. The Administrator provided for four quarters totalling GH¢50,581,787.89 for distribution among the 26 Assemblies in the Northern Region against the Parliamentary approval of GH¢54,814,456.96 for the year. The amount covered the third quarter of 2014 and first three of 2015.

Source deductions: GH¢13,103,721.21 380. Our audit revealed that out of the total receipt of DACF funds of GH¢50,581,787.89 made to the 26 Assemblies in the Northern Region during the year, source deductions made amounted to GH¢13,103,721.21 representing 25.91% of the total receipt resulting in a net difference of GH¢37,478,066.68.

381. Our preliminary enquiry at the Administrator’s end revealed that the Assemblies individually committed their DACF allocations to outsourced services and this was accordingly deducted from their share on quarterly basis. The deductions stood the risk of stifling the programmes of the Assemblies.

382. We urged management of the Assemblies to be circumspect in the administration of their allocations to forestall the incidence of delayed projects saga frequently encountered in the districts.

Unsupported payments: GH¢462,514.86 383. We noted that six District Assemblies failed to support paid vouchers amounting to GH¢331,425.32 with relevant documents such as receipts, invoices, and other expenditure statements to substantiate the transactions contrary to Part IX, Section 14 of the Financial Memoranda for Assemblies. Such infractions could lead to

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 82 payments not due or duplications resulting in loss of funds to the Assemblies. The details are provided below.

Assembly Amount GH¢ West Mamprusi District 10,260.00 Saboba District 21,169.37 Gushegu District 98,913.95 West Gonja District 11,157.00 Central Gonja District 63,716.00 Mion District 126,209.00 Total 331,425.32

384. In a related development, the under-listed three Assemblies accounted for only GH¢71,747.80 out of a total payment of GH¢202,837.34 made, with the relevant receipts leaving an unaccounted difference of GH¢131,089.78

Assembly No. of PVs Amount Amt. Difference released accounted for GH¢ GH¢ GH¢ Gushegu District 25 137,849.34 58,347.80 79,501.54 Mion District 2 33,000.00 13,400.00 19,600.00 Bole District 8 31,988.00 - 31,988.00 Total 202,837.34 71,747.80 131,089.54

385. In the absence of relevant documents to account for the payments we could not authenticate the payment and recommended recovery of the amount from the respective Coordinating Directors and Finance officers.

Unpresented paid vouchers: GH¢84,167.00 386. Contrary to Part I, Regulation 1 of the Financial Administration Regulation (LI 1802), the Gushegu District Assembly failed to submit for audit five paid vouchers amounting to GH¢84,167.00. Consequently, we could not validate whether the payment was made in furtherance of the Assembly’s programmes.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 83 387. In the absence of any justification as to the use of the funds in the Assembly’s interest we recommended that the Finance Officer should be held liable to refund the amount to chest.

Unretired Imprest: GH¢38,798.00 388. Part IX, Sections 38 and 39 of the Financial Memoranda direct among others that imprests shall be used for the purpose so stated on the voucher covering the issue of the imprest while special imprests should be retired within the period allowed.

389. We noted that two to eight months after officials of Bunkpurugu – Yunyoo (GH¢12,150.00) and Gushegu (GH¢26,648.00) District Assemblies had been granted imprests totaling GH¢38,798.00 to undertake various activities for the Assemblies, management of the Assemblies had failed to ensure that these imprests are retired.

390. Under this circumstances funds of the Assemblies could end up in individual’s pockets rather than being used for the Assemblies’ programmes.

391. We advised management to ensure the immediate retirement by the imprest holders without any further delay or have the amount treated as personal advances and recovered from any entitlements due them.

Misapplication through transfer of funds from DACF into Internally Generated Funds: GH¢12,480.00 392. Part V, Section 179 (1&2) of L.I. 1802 stipulates that, except as provided for in the Financial Administration Act, 2003 (Act 654) and this regulation, a head of department may not authorize payment to be made out of funds earmarked for specific activity and a person who makes payment contrary to sub-regulation 1 is in breach of financial discipline.

393. We however noted that, management of Bole Assembly transferred an amount of GH¢12,480.00 from the District Assemblies’ Common Fund into its Internally

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 84 Generated Fund without providing the purpose of the transfer. The transaction is likely to affect earmarked development projects.

394. We recommended to management to transfer the amount back into the DACF account.

Tax irregularities

Tax not withheld /Un-remitted taxes to Ghana Revenue Authority: GH¢22,162.80 395. Contrary to Section 87(1) of Act 592 taxes withheld from the Sustainable Rural Water project (GH¢16,366.90) and the MPs (GH¢1,940.00) accounts of the East Mamprusi District Assembly amounting to GH¢18,306.90 had not been remitted to the Commissioner, three months after the transactions had taken place.

396. In a related development, the Mion District Assembly failed to withhold tax of GH¢3,855.90 on payments for goods and services amounting to GH¢77,118.05 contrary to Section 84(1b) of Act 592.

397. The breach of the tax laws could attract penalties and this might result in unbudgeted expenditure; throwing the budget of the Assembly into disarray.

398. We recommended to management of Bole District Assembly and Mion Assembly to adhere to the relevant tax laws and act accordingly otherwise responsible officials whose inaction result in the payments of penalties should be surcharged.

Loss of VAT income from purchases from non VAT entities: GH¢11,823.74 399. Notwithstanding Part VI, Regulation 183 of LI 1802 which requires that a department shall procure government stores from only VAT registered persons or entities and any department that requires an exemption shall apply to the Minister with the necessary justification, the Hon Member of Parliament for Mion Constituency

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 85 (GH¢21,630.00) and the Mion Assembly (GH¢45,934.25) purchased goods from non VAT registered entities valued at GH¢67,564.25. This infraction amounts to financial indiscipline and resulted in a loss of VAT income of GH¢11,823.74.

400. We recommended to management to ensure strict compliance with the law in its future procurement dealings or have any responsible official whose acts amounts to financial indiscipline sanctioned in accordance with the existing regulations.

VAT paid without receipts/invoices: GH¢1,911.61 401. The Finance officers of Karaga District (GH¢1,331.31) and Chereponi District (GH¢580.30) Assemblies failed to obtain VAT invoices to cover a total amount of GH¢1,911.30 paid as VAT components for procurements made in contravention of Section 19(1) of Act 546.

402. By not issuing VAT receipts the suppliers are not bound to remit to the tax authorities the VAT amount inclusive in their payments.

403. We urged management of the Assemblies to demand a VAT receipt from the suppliers otherwise the VAT amount should be recovered from the suppliers. Failing this, the amount should be recovered from the finance officers of the respective Assemblies.

Procurement/Store irregularities

Alleged purchases not accounted for: GH¢218,877.13 404. Section 35(2a) of the Financial Administration Act, 2003 (Act 654) states that, accountability is discharged when government stores have been consumed in the course of public business and records are available to show that government stores have been consumed.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 86 405. We noted that five Assemblies purchased goods amounting to GH¢218,877.13 but these were not routed through stores for an effective audit trail to provide evidence of use. As a result, we were unable to validate whether these items procured were of the right specifications and quantities, besides whether the Assemblies actually made the purchases and used them in their interest. Details are shown below:

Assembly Amount GH¢ East Mamprusi District 53,078.00 West Mamprusi District 44,933.13 Gushegu District 87,988.00 West Gonja District 13,450.00 Central Gonja District 19,428.00 Total 218,877.13

406. We recommended that the Coordinating Directors and Finance Officers should be held accountable for the alleged procurements and their use.

DACF deductions for items/services not supplied: GH¢1,017,845.33 407. Part VI, Section 11 of the Financial Memoranda for Assemblies provides that a head of entity shall vouch expenditure to ensure that the services specified have been performed to substantiate payment.

408. On the contrary, the Administrator of the District Assemblies’ Common Fund made some source deductions totaling GH¢1,017,845.33 from Tamale Metropolitan (GH¢155,250.00), West Mamprusi District (GH¢480,194.33) and Bunkpurugu-Yunyoo District (GH¢382,401.00) for sanitation and fumigations services etc. We however noted that the affected Assemblies were yet to benefit from the deductions. We further noted that these activities have not been captured in the Budgets, Medium Term Development and Action Plans of the Assemblies.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 87 409. The deduction impacted negatively on the Assemblies’ cash flow position which possibly hampered the fulfilment of their development agenda.

410. We recommended to management of the Assemblies to demand from the Administrator accountability of the deductions evidenced with relevant documents in order to facilitate an effective audit trail, otherwise the ADACF should refund the deductions to the Assemblies.

Purchases not supplied: GH¢11,000.00 411. Part VI, Section 11 of the Financial Memoranda for Assemblies states among others that, it is the duty of an officer responsible for a head of expenditure to vouch payment vouchers, and in doing so, he must ensure that the services specified have been performed.

412. On the contrary, Tamale Metropolitan (GH¢1,500.00) and Saboba District (GH¢9,500.00) Assemblies prepaid for a tricycle and Corn Mill respectively valued at GH¢11,000.00 but failed to ensure the delivery of the items.

413. We opined that the procurement teams had been inefficient in their responsibilities and can result in the loss of funds to the Assemblies. The authorising and approving officers also failed to demand evidence of supply of the items before authorising and approving for the payment.

414. We urged management of the Assemblies to ensure delivery of the items by the suppliers or the procurement teams as well as the authorising and approving officer for the payment should be held liable to refund the cost involved.

Non-competitive purchases: GH¢84,112.68 415. Contrary to Section 43(1) of the Public Procurement Act 2003 (Act 663) which provides that procurement entities shall request for quotations from as many suppliers or contractors as possible or at least from three sources, two Assemblies

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 88 Sawla-Tuna-Kalba District (GH¢15,178.68) and Mion District (GH¢68,934.00) purchased goods totaling GH¢84,112.68 without alternative quotations from other suppliers.

416. By this action there was no transparency and the resultant fair pricing in the Assemblies’ procurement dealings.

417. We recommended that management of the Assemblies should adhere to the above cited regulation in order to obtain value for money in its procurement dealings. Any future violations should result in the sanctioning of defaulting personnel.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 89 UPPER EAST REGION

Introduction 418. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. The Administrator provided for four quarters a total amount of GH¢24,172,778.52 for distribution among the 13 Assemblies in the Region against the approved budget of GH¢26,334,499.56. The amount covered the third quarter of 2014 and first three of 2015.

Cash irregularities

Source deductions: GH¢7,820,416.15 419. We noted that out of the total receipt of DACF funds of GH¢24,172,778.52 made to the 13 Assemblies in the Upper East Region during the year, an amount of GH¢7,820,416.15 or 32.35% of the total receipt was deducted at source resulting in a net difference of GH¢16,352,362.37.

420. Our preliminary enquiry at the Administrator’s office revealed that the Assemblies individually committed their DACF allocations to outsourced services as a result of which the deductions were accordingly made from their share on quarterly basis. The practice has a high negative influence on earmarked activities of the Assemblies.

421. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to forestall the incidence of delayed projects frequently encountered in the districts.

Unsupported payment vouchers: GH¢590,168.24 422. Part IX, Sections 7, 13 and 14 of the Financial Memoranda for Assemblies require the authentication of payments with the provision of original invoices, statements, payees’ official receipts/written acknowledgments.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 90 423. We noted on the contrary, that 106 payment vouchers totaling GH¢590,168.14 of a Municipal and four District Assemblies were not supported with the relevant receipts and other statements of account to properly acquit the payments. Below are the details.

Assembly Account No. of PV’S Amount GH¢ Bolga Municipal DACF/PWD/SIF 25 20,726.00 Bongo District DACF 5 67,194.04 Talensi District GSFP/PWD/SRW&SP 3 47,547.60 Garu- Tempane District DACF/GSOP 54 342,442.97 Binduri District DACF/MP/PWD 19 112,257.63 Total 106 590,168.24

424. We attributed the circumstances to failure on the part of the Coordinating Directors, District Finance Officers and Internal Auditors to adequately discharge their responsibilities in accounting for government funds.

425. In the absence of the relevant supporting documents, we could not authenticate the validity of the payments; a situation which holds a potential risk of loss of funds to the Assemblies.

426. We recommended that in the absence of the supporting documents or relevant receipts to justify the payments, the Coordinating Directors, Finance Officers and Internal Auditors should be surcharged for negligence.

Unpresented payment vouchers: GH¢12,207.55 427. The District Finance Officers of Builsa North (2) (GH¢8,617.50) and Builsa South (1)(GH¢3,590.05) District Assemblies failed to produce for our review, three payment vouchers valued at GH¢12,207.55 during our audit.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 91 428. Their inaction which could result in the loss of funds to the Assemblies contravened Part 1 Section 1(1) of L.I. 1802. In the absence of this essential document we were unable to validate the propriety of the payments in relation to its benefit to the Assembly.

429. We recommended that failing to produce the payment vouchers, the DCDs and DFOs should account for the amount of GH¢12,207.55.

Unauthorized withdrawals from Persons with Disability Account (PWD): GH¢51,000.00 430. Section 8 (D) of the 2014 Guidelines for the disbursement and management of the District Assemblies’ Common Fund for Persons with Disability provides that, there shall be no borrowing from the account.

431. We however noted that management of the Nabdam District Assembly borrowed an amount of GH¢51,000.00 from the PWD funds and used it to meet expenses on unrelated activities.

432. The lapse which we opined was management’s failure to adhere to the guidelines emanated from the Assembly’s poor liquidity position at the time and can lead to PWDs not achieving their activities for the year.

433. We recommended that management should refund the amount into the PWD account without any further delay and also desist from the violation of the guidelines.

Un-retired imprest: GH¢41,455.00 434. Notwithstanding Part IX, Section 39 of the Financial Memoranda for District Assemblies stipulating the retirement of special imprest within the period allowed, we noted from ten payment vouchers that four members of staff of the Binduri Assembly granted imprests totaling GH¢41,455.00 during the year for official assignments had failed to retire the amount as at the end of the year. The individual

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 92 imprests had remained unretired between two and nine months after the activities had been completed.

435. We found that laxity on the part of both the Coordinating Director and Finance Officer to ensure staff compliance with the regulation accounted for the irregularity.

436. In the absence of the receipts, invoices and statements of claim, we could not authenticate the validity of the payments in furtherance of the Assembly’s programmes and therefore recommended that the amount be treated as advances to the imprest holders and recovered accordingly. The Coordinating Director and Finance Officer should introduce measures which would compel imprest holders to promptly retire advanced amounts or be surcharged for negligence.

Unaccounted payments: GH¢7,215.42 437. Part IX, Section 13 of Financial Memoranda for Assemblies requires all payment vouchers to be receipted by either a written acknowledgment in ink or the provision of official receipts by payees.

438. We noted however that out of a total amount of GH¢19,817.92 released vide seven (7) payment vouchers by the Talensi District Assembly to four officials for various assignments, only GH¢12,602.50 was accounted for with receipts, invoices and statements of claim leaving a difference of GH¢7,215.42 unaccounted for. The Coordinating Director and Finance Officer’s failure to insist on accountability of the funds by the recipients after the assignments, led to this anomaly.

439. We recommended that in the absence of accountability of the funds the amount should be treated as advances to the imprest holders and recovered accordingly otherwise the Coordinating Director and Finance Officer should be held liable for refund for negligence.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 93 Procurement and store irregularities

Failure to maintain accounting records for fuel purchased: GH¢79,300.40 440. Store regulations 0522, 0502(a) and 1601 respectively require all items purchased to be recorded in store receipt vouchers, ledgers and issued out against properly signed documents.

441. On the contrary, we noted during our audit that though Builsa North (GH¢48,410.68) and Builsa South (GH¢30,889.72) Assemblies paid a total amount of GH¢79,300.40 for fuel, no control books/ledgers were maintained at the Assemblies to facilitate an audit trail for accountability purposes.

442. We further noted that the Assemblies failed to maintain copies of the chits issued to drivers to draw fuel to enhance comparison with those used by the fuel company to bill the Assemblies.

443. The situation which can lead to use of fuel by unauthorized vehicles and payment for fuel not used by the Assemblies was as a result of negligence on the part of Finance officers and Transport Officers to ensure proper accountability of fuel consumed by the two Assemblies.

444. We recommended maintenance of copies of chits and ledgers by the two Assemblies to take account of all transactions with the fuel company to enhance reconciliation and audit trail.

Purchases from Non-VAT Registered entities: GH¢187,329.30 445. We noted that contrary to Part VI, Regulation 183(4) of the Financial Administration Regulations, 2004 the Binduri (29) (GH¢139,102.39) and Talensi (11) (GH¢48,226.91) Assemblies made 40 procurements amounting to GH¢187,329.30 from Non-VAT registered suppliers, resulting in the evasion of a supposed VAT component of GH¢12,292.73.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 94 446. We were of the opinion that management and the procurement teams deliberately disregarded the above stated regulation resulting in the reported anomaly.

447. We urged management of the Assemblies to ensure strict compliance with the VAT provision of the Financial Administration Regulations, 2004 otherwise any responsible official should be sanctioned for breach of financial discipline and surcharged with the payment of penalties.

Purchases without alternative quotations: GH¢8,329.00 448. Contrary to Section 43 (1) of the Public Procurement Act, 2003 (Act 663), we noted that management of Nabdam (9) (GH¢2,934.00) and Garu-Tempane (3) (GH¢5,395.00) Assemblies made 12 payments for the procurement of goods and services without obtaining alternative quotations.

449. We noted that the anomaly was as a result of the procurement teams’ disregard to the above cited regulation. The practice blurs competiveness and hinders fair pricing in procurements. We recommended to management of the Assemblies to ensure strict adherence to the procurement regulation, failing which the responsible officials should be sanctioned.

Repairs of official vehicles without works orders and certificates of completion of work: GH¢ 39,128.90 450. Contrary to Part II, Section 16(1a) of the Financial Administration Act, 2003 (Act 654), we noted from three payment vouchers that, repair works carried out on three of the Bongo District Assembly’s vehicles totaling GH¢39,128.90 had neither job nor works orders to detail the specific works done nor certification of completion of works done.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 95 451. We attributed the situation to the Transport Officer, Coordinating Director and Finance Officer’s failure to ensure that these procedural issues with maintenance were carried out before the payments.

452. To prevent any loss of funds to the Assembly, we recommended to management to ensure that certificates of satisfactory execution of works are obtained from the Transport Officer before payments are made.

Contracts irregularities

Failure to complete contracts within scheduled period: GH¢1,942,947.21 453. The Garu-Tempane District Assembly awarded from its DACF and other earmarked resources in February 2013, five contracts valued at GH¢1,942,947.21 to five contractors to be completed between three to six months.

454. These five contracts which were awarded in February 2013 were still on-going and had delayed for periods ranging from 5 to 24 months.

Account No. of contracts Amount GH¢ DACF 2 300,610.50 SRWSP 3 1,642,336.71 Total 5 1,942,947.21

455. Management attributed the situation to inadequate funding from the DACF during the years. The situation could lead to an upward review of the contract sums in times of inflation. We recommended to management of the Assembly to ensure that these contracts were completed without further delay.

Unapproved variation: GH¢34,963.00 456. Contrary to Part IX, Section 68 of the Financial Memoranda of MMDAs, a contract for construction of a semi-detached classroom block at Kugrago which was

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 96 awarded on 06 January 2014 at an initial amount of GH¢90,000.00 was varied by an amount of GH¢34,963.00 (38.9%) by management of the Garu Tempane District Assembly based on the contractor’s application without the approval of the Entity Tender Committee. The contract had however been completed and in use since 03 November 2015.

457. The DCD attributed the situation to the then exigency of the project which prevented management from seeking approval from the Tender Committee.

458. We recommended to management of the Assembly to ensure that for purposes of sanity in contract management, variations in contract sums should always be approved by the Tender Committee before payments are made.

Tax Irregularities

Payment of VAT not supported with VAT invoices/receipts: GH¢570.15 459. Contrary to Section 19(1) of the VAT Act, 1998 (Act 546) the District Finance Officer of Nabdam District Assembly failed to obtain VAT invoices/receipts for two payments totaling GH¢3,258.00 and inclusive of a VAT component of GH¢570.15. We however noted that the two suppliers rather provided their personal invoices and receipts in support of the payments.

460. Failure by the Finance Officer to comply with the VAT laws would not compel the suppliers to remit the VAT amount to the tax authorities and could lead to the loss of tax revenue of GH¢570.15 to the State.

461. We recommended that the VAT invoices should be obtained from the suppliers and service providers for the VAT inclusive payments or the amount recovered from the suppliers. Failure of which the Finance Officer should refund the amount into the Assembly’s account.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 97 Failure to withhold tax: GH¢1,579.20 462. We noted from the audit of the Binduri District Assembly that the Finance Officer failed to withhold taxes of GH¢1,579.20 on 11 contract for services valued at GH¢31,583.99 made to ten service providers in contravention to Part X, Section 84(1b) of the Internal Revenue Act, 2000 (Act 592). This therefore denied the government of earmarked revenue during the year.

463. We recommended to management of the Assembly to ensure compliance with the above quoted regulation and act accordingly otherwise the responsible officials should be sanctioned.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 98 UPPER WEST REGION

Introduction 464. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. The Administrator provided for four quarters a total amount of GH¢19,358,627.44 for distribution among the 11 Assemblies in the Region against the approved budget for the year of GH¢20,896,500.20. The amount covered the third quarter of 2014 and first three of 2015.

Cash irregularities

Source deductions: GH¢5,452,941.33 465. Out of a total receipt of DACF funds of GH¢19,358,627.44 by the 11 Assemblies in the Upper West Region during the year, we noted that an amount of GH¢5,452,941.33 or 28.17% was deducted at source by the ADACF resulting in a net difference of GH¢13,905,686.11.

466. Our preliminary enquiry at the Administrator’s office revealed that the Assemblies individually committed their DACF allocations to outsourced services, hence the deductions from their share on quarterly basis. The significant deduction could impact negatively on the action plan of the Assemblies as most of their development programmes would not be met.

467. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to prevent the phenomenon of delayed projects frequently encountered in the districts.

Unsupported payments: GH¢22,964.70 468. We noted that the Lambussie/Karnie (GH¢11,170) and Nadowli/Kaleo (GH¢11,794.70) Assemblies failed to support payments amounting to GH¢22,964.70

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 99 with the requisite receipts, invoices and statements of expenditure to authenticate the payments in violation of Part IX, Sections 7, 13 and 14 of the Financial Memoranda for Assemblies. Under such situation we were unable to confirm whether the amount was used in the interest of the Assemblies.

469. We attributed this to negligence on the part of the District Finance Officers and District Coordinating Directors.

470. In the absence of any justification for use of the funds in the Assemblies’ interest, we recommended the recovery of the amount from the District Finance Officers and District Co-ordinating Directors.

Contract irregularities

Abandoned projects: GH¢390,519.17 471. Prior to awarding new contracts, best management practice provides that a client organisation would have to consider the completion of projects that had earlier been awarded to enable intended beneficiary communities reap the benefits of those projects.

472. On the contrary, we noted that the Wa Municipal and Daffiama Bussie District Assemblies failed to ensure the completion or continuation of the construction of seven (7) uncompleted or on-going projects awarded between 2011 and 2013. The two Assemblies however, awarded twelve (12) new projects thereafter at a total contract sum of GH¢1,173,514.50 having committed a total amount of GH¢401,416.07 to date. Below are the details.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 100 Name of No. of Total Amount No. of Contract Amount Assembly on- Contract paid GH¢ new Sum GH¢ paid GH¢ going Sum GH¢ Projects projects Wa 1 580,842.90 162,602.76 8 576,703.39 193,247.57 Municipal Daffiama 6 659,957.84 227,916.41 4 596,811.11 208,168.50 Bussie Issa 7 1,240,800.74 390,519.17 12 1,173,514.50 401,416.07

473. The uncompleted projects which ranged from an Office complex to Semi- detached Quarters and at various stages of completion were awarded at a total contract sum of GH¢1,240,008.74. As at the close of 2015, payments to contractors working on the projects amounted to GH¢390,519.17 representing 31.47% of the contract sum whereas payments made on the new projects amounted to GH¢401,416.07.

474. Management of the Assemblies admitted that the projects had been affected because contractors had been found not to be resourceful enough to carry the projects through. Delays in the execution of projects could result in additional cost due to inflationary trends.

475. We therefore recommended that the Assemblies should give priority to the completion of the on-going projects and where possible consider terminating and re- awarding the contracts where contractors have proven not to be resourceful.

Overpayment to a Contractor: GH¢1,516.94 476. We noted contrary to Part II, Section 39(c) of L.I.1802 that, in the payment of a contract for the supply of furniture to two CHPS Compounds (Vamboi & Dagbasu) and a Midwifery Training School (Tumu) at a total cost of GH¢104,905.50, the Sissala East District Assembly paid the contractor M/S Marnagen Co. Ltd. a total amount of GH¢106,422.44, leading to an overpayment of GH¢1,516.94.

477. We opined that poor vigilance on the part of the Internal Auditor and Finance Officer in the payment process led to the anomaly which is a drain on the limited

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 101 funds of the Assembly. We recommended the immediate recovery of the overpaid amount from the Contractor. Failing which the Internal Auditor and Finance Officer should be held liable for a refund.

Payment for projects without Monitoring Reports: GH¢293,000.00 478. Section 70 (a) of Part IX of the Financial Memoranda for Assemblies provides that the Works Engineer, or such other person as the Assembly may appoint shall inspect work done before payments are made.

479. On the contrary, Nadowli/Kaleo District Assembly made payments totaling GH¢293,000.00 to two contractors without supporting the payments with Monitoring Reports on the progress of work done. The details are provided below.

Name of Project Name of Contractor Amount Paid GH¢ Rehabilitation of Radio station Maarong Pognaa Ent. 50,000.00 Drilling and Installation of 15 M/S Issahaku Lafif Ent. 243,000.00 No. Boreholes Total GH¢ 293,000.00

480. In the absence of this relevant document we were unable to authenticate whether the payment made was commensurate with the work done and has not resulted in any overpayments.

481. Management of the Assembly should justify the authenticity of the payment and always ensure that monitoring reports are obtained to attest to satisfactory work done before payments are made to avoid paying for shoddy or works not done.

Procurement and stores irregularities

Failure to obtain alternative quotations: GH¢87,730.00 482. The Wa Municipal Assembly did not obtain any alternative quotations in the purchase of goods worth GH¢87,730.00 in contravention of Section 43(1) of the Public Procurement Act, 2003 (Act 663).

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 102 483. The situation can result in the payment of higher and uncompetitive prices, and therefore we recommended strict adherence to the provisions of the Act by management of the Assembly.

Payments not supported with VAT Invoices: GH¢11,905.00 484. In violation of Section 19(10) of the Value Added Tax (VAT) Act, 1998 (Act 546), Daffiama Bussie Issa District Assembly procured goods totalling GH¢11,905.00 from four non VAT agents leading to the Assembly’s non-payment of a VAT component of GH¢2,083.37 to the State.

485. We recommended the adherence to the above cited regulation; otherwise in future the responsible officials should be sanctioned in line with existing regulation for the breach.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 103 VOLTA REGION

Introduction 486. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. The Administrator provided for four quarters a total amount of GH¢47,601,486.13 for distribution among the 25 Assemblies in the Volta Region against the expected approval of GH¢51,404,293.37 for the year. The amount covered the third quarter of 2014 and first three of 2015.

Cash irregularities

Source deductions: GH¢14, 144,846.75 487. We noted that out of the Region’s receipt of DACF funds totaling GH¢47,601,486.13 for its 25 Assemblies during the year, deductions at source made by the ADACF amounted to GH¢14,144,846.75 representing 29.72% of the total receipt resulting in a net difference of GH¢33,456,639.38.

488. Our preliminary enquiry at the Administrator’s office revealed that the Assemblies individually committed their DACF allocations to outsourced services as a result of which the deductions were accordingly effected from their share on quarterly basis. The deductions would have a heavy toll on the cash flow position of the Assemblies, hence their inability to meet the expected requirement of the communities.

489. We urged management of the Assemblies to be circumspect in the administration of their allocations to prevent the delayed projects saga frequently encountered in the districts.

Unsubstantiated payment: GH¢249,742.54 490. Contrary to Part IX, Sections 7, 13 and 14 of the Financial Memoranda for Assemblies, 11 Assemblies failed to substantiate payments totaling GH¢249,742.54

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 104 with the related receipts, statements etc. rendering it difficult for us to ascertain the validity of the transactions. The details are as below:

No. Name of Institution Unreceipted PVs Unsupported PVs GH¢ GH¢ 1. Afadzato-South District 5,654.79 (13 PVs) 16,729.44 (3 PVs) 2. Agotime-Ziope District 41,679.31 3. Biakoye District 15,965.00 4. Central Tongu District 19,188.00 5. Ho West District 11,450.00 6. Hohoe Municipal 9,030.00 7. Ketu North District 3,753.00 8. Krachi Nchumuru District 23,500.00 9. North Dayi District 29,056.50 10. North Tongu District 14,889.50 11. Nkwanta South District 58,847.00 Total 74,587.10 175,155.44

491. In the absence of relevant supporting invoices, receipts and other documentary evidences to validate whether the payments were made in the interest of the Assemblies, we recommended recovery of the amounts involved from the Coordinating Directors and Finance Officers of the Assemblies for their ineptitude in handling these transactions.

Un benefited DACF deductions: GH¢ 1,807,406.62 492. We noted during our audit that the ADACF deducted a total amount of GH¢1,807,406.62 from five Assemblies’ share of the Common Fund releases for the supply of goods and services. However, there were no records to show delivery of the items to the Assemblies neither did activities like fumigation, sanitation improvement packages etc., take place in the districts. As such the Assemblies have not received value for money for the expenditure.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 105 No. Assembly Amount GH¢ 1. Ho Municipal 564,081.25 2. Ho West District 347,437.57 3. Ketu North District 254,291.00 4. Ketu South District 259,195.80 5. Nkwanta North District 382,401.00 Total 1,807,406.62

493. We recommended that the CEs, CDs and FOs should draw the attention of the ADACF to this situation to ensure the justification of the payments with relevant documents for an effective audit trail otherwise the ADACF should be held liable to refund the sums to the Assemblies.

Unretired imprest: GH¢59,553.05 494. Management of four Assemblies advanced a total amount of GH¢59,553.05 to their officials to undertake official assignments but the amount remained unretired even though the assignments were said to have been completed, in violation of Part XIII, Regulation 283(b) of the FAR, 2004 (L.I. 1802). Details are provided below:

No. Assembly Amount GH¢ 1. Krachi Nchumuru District 25,874.00 2. South Tongu District 19,769.05 3. Nkwanta South District 4,419.00 4. Biakoye District 9,491.00 Total 59,553.05

495. We identified weak supervisory control and inertia on the part of the management of the Assemblies as the cause of the delayed action by the staff. There might be the possibility that the amounts were not used in furtherance of the Assemblies programmes.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 106 496. We recommended that the officials should be made to retire the amounts involved or the amounts should be adjusted to their personal accounts as advances and recovered from any entitlements due them. We also advised management to be responsive to their roles.

Unreceipted counterpart funding of Integrated Rural Development Programme (IRDP): GH¢64,000.00 497. Part IX, Section 14 of the Financial Memoranda for MMDAs states that; “official receipts shall be obtained in support of payments to Government Departments, State Enterprises and Other Assemblies”.

498. We noted that one year after the Ho West District Assembly had made a payment of GH¢64,000.00 to the ‘Social Investment Fund’ managed by a Unit under the Regional Coordinating Council, Koforidua as part of a counterpart funding of GH¢128,000.00 for an Integrated Rural Development Project (IRDP), the amount had not been receipted neither had the project taken off.

499. Our follow up revealed that management had not been coordinating with the handlers of the Fund for regular updates on the project hence the delayed action by both sides which can result in the loss of funds to the Assembly.

500. We recommended to management of the Assembly to follow up on the issues to prevent a possible loss of funds and delayed or non-implementation of the project.

Unpresented payment vouchers: GH¢28,869.00. 501. We noted that contrary to Part I, Section 1(a) of the FAR 2004 the Biakoye (GH¢27,565.00) (6) and Ho West (GH¢1,304.00) (1) District Assemblies failed to present seven paid vouchers with a total face value of GH¢28,869.00 for audit.

502. We attributed the lapse to poor records keeping on the part of the Finance Officers and their staff as it prevented us from authenticating the veracity of the expenditure.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 107 503. We urged management to produce the paid vouchers for our examination, failure of which the Coordinating Directors and Finance Officers should be jointly held accountable for the irregularity and be surcharged with the total amount of GH¢28,869.00.

Unjustified budget overruns: GH¢172,166.77 504. Part I, Regulation 2(c)FAR ,2004 (LI 1802) enjoins heads of department to secure the efficient and effective use of appropriations under departmental control within the ambit of government policy and in compliance with any enactment, regulations or instructions issued under the authority of any enactment.

505. In addition, budgetary control procedures also require heads of department to take prudent measures to ensure that they spend within allotted funds for programmes and activities.

506. Our comparative analysis of the 2015 budgeted and actual expenditures on programmes and activities disclosed that the Krachi Nchumuru (GH¢107,276.48) and Agotime-Ziope (GH¢64,890.29) District Assemblies, incurred a cost overrun over their 2015 construction budgets activities by a total amount of GH¢172,166.77 which led to their inability to execute earmarked programmes like the procurement of pickup vehicle (GH¢125,000.00) and the cladding of 2No. 6 Unit classroom blocks (GH¢120,000.00) at a total cost of GH¢245,000.00.

507. We urged management of the Assemblies to always operate on realistic budgets so as to prevent sacrificing other earmarked projects due to insufficient funds and to the detriment of beneficiary communities.

Procurement outside approved budget: GH¢ 402,655.57 508. Part VI, Section (2) of the Financial Memoranda for MMDAs 2004 provides that the basic authority for expenditure is the approved Assembly`s annual estimates. Additionally, Part VII, Section 87 of the Local Government Act, 1993 (Act 462) requires Assemblies to discharge all expenditure provided such expenditure is included in the approved budget for the relevant year.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 108 509. However, the Agotime-Ziope (GH¢349,035.82) and Afadjato-South (GH¢53,619.75) District Assemblies carried out procurements and construction works valued at GH¢402,655.57 outside the Assemblies’ approved budget for 2015. The two Assemblies failed to prepare supplementary budgets to cater for these programmes and this affected the commencement of earmarked projects such as the cladding of 2, 6Unit classroom blocks (GH¢120,000.00) and construction of DCE’s residence (GH¢103,170.00) all valued at GH¢223,170.00.

510. We recommended that management of the Assemblies should always endeavour to operate within approved budgets and where appropriate consider the submission of supplementary budgets for the approval of the General Assembly.

Payments without payment vouchers: GH¢9,546.00 511. Part IX, Section 1 of the Financial Memoranda (FM) for MMDAs requires among others that every payment shall be supported by the original of a voucher which shall contain full particulars of the services for which payment is being made.

512. We noted that Biakoye District Assembly made two cheque payments totaling GH¢9,546.00 from the main District Assemblies’ Common Fund account without any supporting payment vouchers. We opined that intentional neglect of procedures by the Finance Officer and Coordinating Director led to the anomaly and denied us the opportunity to validate the propriety of the transactions.

513. We recommended that the Finance Officer be reprimanded for his negligence in the financial management system of the Assembly.

Payment for abortive trip: GH¢30,000.00 514. Under an Economic Partnership Agreement, management of Nkwanta North District Assembly paid a total amount of GH¢30,000.00 to Messrs. Africa Global Sister City Foundation (AGSCF), USA to facilitate VISA acquisition and other travelling arrangements to enable the District Chief Executive undertake a trip to Arkansas, U.S.A for an event from 21 to 29 June 2015.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 109 515. Although the Chief Executive was unable to make the trip due to the failure of AGSCF to organize the event, the amount was yet to be refunded to the Assembly. In our view management failed to do due diligence work before committing the funds and this could adversely affect the Assembly’s beneficial activities to the community.

516. We recommended that management should follow up without any delay to retrieve the amount from AGSCF. We also advised that utmost care should be taken before commitment of funds in future otherwise the responsible officer should be sanctioned.

Purchase of plots of land without title deeds: ¢20,000.00 517. The Kpando Municipal Assembly had acquired two plots of land from two private persons (one on which the Kpando market was sited and 13.5 acres at Kpando Dzoanti for future projects) with the Assembly paying GH¢20,000.00 on the latter valued at GH¢37,800.00.

518. We noted that the Assembly had not secured title to the two lands despite the paying of a judgement debt of GH¢88,560.00 on the market site when the owners filed a suit at the Hohoe High Court in year 2013. It should be noted that the Assembly has not secured title to any of its acquired lands.

519. We recommended that management should initiate the processes of acquiring titles to the lands in order to avert any future litigation and encroachments with a resultant loss of funds to the Assembly.

Unreceipted payment to J.A. Plant Pool: GH¢1,136.88 520. Notwithstanding Part IX, Section 14 of the Financial Memoranda for Assemblies we noted that after making a payment of GH¢3,436.88 to Messrs. Plant Pool for the servicing of a Grader based on an invoice, the company issued the Krachi Nchumuru District Assembly with a receipt of GH¢2,300.00 leaving a difference of GH¢1,136.88. We found unacceptable the Finance Officer’s explanation that the company had attributed the amount to VAT.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 110 521. We recommended that the Finance Officer should account for the short fall in receipt of GH¢1,136.88.

Unsubstantiated payments from MPs Common Fund account: GH¢249,398.55 522. Our audit of the MP’s Common Fund revealed that, while four Assemblies failed to have payments totaling GH¢27,215.25 receipted by the beneficiaries, three other Assemblies did not support payments valued at GH¢222,183.30 with the related documents such as invoices etc. contrary to Part IX, sections 7, 13 and 14 of the Financial Memoranda for District Assemblies. The breakdown is provided below.

No. Name of Institution Unreceipted Unsupported GH¢ GH¢ 1. Biakoye District 177,199.80 2. Ho Municipal 800.00 3. Ho West District 8,816.25 4. Krachi Nchumuru District 15,599.00 5. Nkwanta North District 2,000.00 10,000.00 6. North Dayi District 34,983.50 Total 27,215.25 222,183.30

523. Failure to substantiate the payments, the Coordinating Directors and Finance Officers should be held liable to refund the amounts involved.

Unpresented payment vouchers: GH¢23,264.00 524. We noted contrary to Part VII, Section 18, of the 2004 Financial Memoranda for MMDAs and Part I, Regulation 1(a) of the Financial Administration Regulations, 2004 that Ketu South Municipal Assembly failed to present for our audit review, two paid vouchers with a total face value of GH¢23,264.00 resulting in our inability to authenticate the validity of transactions.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 111 525. We recommended that failure to justify the expenditure with the relevant documents, the Coordinating Director and Finance officer should be jointly held liable to refund the amount to the Assembly’s account.

Payments without memoranda from MPs: GH¢159,302.89 526. Section 3, Part IX of the 2004 Financial Memoranda (FM) for Metropolitan, Municipal and District Assemblies (MMDAs) states that “Payment Vouchers shall be certified by the officer authorized by the Assembly to incur the expenditure.

527. We noted during our review that the Ho West District (GH¢149,302.89) and Ketu South Municipal (GH¢10,000.00) Assemblies paid a total amount of GH¢159,302.89 from their respective Members of Parliament (MPs) DACF accounts without any memoranda from the two MPs expressing their consent.

528. The situation did not enhance transparency and accountability and can prevent the MPs from effectively monitoring activities undertaken by use of their Common Fund.

529. To prevent any dispute between management and any Member of Parliament and for transparency and accountability, we recommended that the MP’s consent should be sought in writing when administering their DACF allocations.

Financial support to non-existing students: GH¢1,700.00 530. Part IX, Regulation 226 of LI 1802 states that, a loss shall be deemed to have occurred when the government is deprived of the use of any public or trust moneys, public property, stores or any other financial or physical asset otherwise than in the normal course of public business.

531. We noted that management of Nkwanta North District Assembly paid GH¢1,700.00 as the MP’s financial support to six purported students of Kpassa Senior High Technical School, who were later found not to be students. Management did no diligent work in this instance, hence this outcome.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 112 532. We recommended to management to retrieve the amount from the beneficiaries or their representatives otherwise the responsible official should be surcharged.

Source deductions from MP’s allocation for unspecified purchases: GH¢32,136.00 533. Contrary to Part II, Regulation 12 of the Financial Administration Regulations, 2004 (LI I802), which enjoins persons entrusted with public trust funds to protect such funds from diversion from their proper purposes etc, we noted at the Nkwanta North District Assembly that, deductions totalling GH¢32,136.00 were made from the MP’s share of the Common Fund in favour of Messrs. Vision Sports for alleged purchases not specified. We did not sight the details of the said purchases or evidence of receipt and its use.

534. We opined that the situation could result in diversion of public funds and recommended that management should seek the authority of the deductions from the DACF Administrator and the justification for the basis of the payments. In the absence of the detailed purchases and the justification of its receipt and use, we recommended that the ADACF should be held liable for a refund of the amount.

Unsubstantiated payment to People Living With Disability: GH¢25,219.00 535. In contravention of Regulation 39(2c) of the Financial Administration Regulations, 2004 (L.I. 1802) management of Hohoe Municipal Assembly failed to produce any relevant supporting documents such as receipts, beneficiaries signed list to acknowledge payments totaling GH¢25,219.00 making it difficult for the audit team to assess the authenticity of the payments.

536. We recommended that failing to produce the relevant documents for accountability of the payment, the Cordinating Director and Finance Officer should be held liable for a refund of the amount into the Assembly’s account.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 113 Highly Indebted Poor Country (HIPC) Projects

Abandoned uncompleted projects: GH¢466,363.35 537. Management of Akatsi South District Assembly awarded three HIPC projects valued at GH¢466,363.35 in 2005 and scheduled for completion in six months but these projects remained uncompleted and abandoned. The progress of the projects which were between 75% and 80% complete had been stifled by inadequate resource under the HIPC assistance and financial incapacitation of the contractors.

538. We urged management to consider seeking alternative funding or re-awarding the contracts if the impasse had to do with non performing contractors to serve the interest of the targeted communities.

Contract irregularities

Abandoned projects: GH¢2,793,836.38 539. Our audit disclosed that three (3) Assemblies had abandoned projects valued at GH¢2,793,836.38 at various stages of execution. Details are provided below:

No. Name of Institution Amount GH¢ 1. Akatsi South District 2,639,302.96 2. Biakoye District 106,221.59 3. Nkwanta North District 48,311.83 Total 2,793,836.38

540. Inadequate funding, relocation of projects and unceremonious exits/abrogation of contracts by contractors led to the projects being abandoned. We also opined that the annual award of contracts without recourse to realized funding also contributed to the stalemate. When projects are abandoned, the possibility of cost overrun cannot be ruled out. Also, contract variations and the attendant abuse may set in.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 114 541. We recommended to management of the Assemblies to put in place measures to address the challenges to enable the contractors complete the projects and hand them over to the Assembly for use.

Delayed execution of projects: GH¢386,253.57 542. Part II, Regulation 39 of LI 1802 stipulates that, a head of department shall ensure that moneys are utilised in a manner that secures both optimum value for money and the intention of Parliament.

543. We noted that 13 projects awarded in 2014 at a total contract cost of GH¢1,758,900.26 and for which the Adaklu District Assembly paid GH¢386,253.57 have been unduly delayed for periods ranging from five (5) to twenty-one (21) months from their expected completion dates.

544. We found that the Assembly had failed to prioritise the completion of ongoing projects in relation to the erratic and limited DACF resources, hence the delay and denial of targeted beneficiaries in the use of the facilities. This can result in variations in contract sums from price increases in materials.

545. We advised management to avoid any further award of contracts so as to concentrate on the completion of these projects for the comfort of the beneficiaries and avoidance of cost overrun.

Payment of advance mobilization without guarantee: GH¢15,000.00 546. Part IX, Regulation 70(b) of the Financial Memoranda for Assemblies stipulates that, “in the case of initial advance payment prior to the commencement of work, the contractor enters into a bond with sureties for the repayment of the advance.”

547. We noted that the Krachi Nchumuru District Assembly approved the payment of advance mobilization of GH¢22,695.00 for the construction of 1 No. CHPS Compound at Borae Nkwanta and made a part payment of GH¢15,000.00 to the contractor without any guarantee from any bank or insurer.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 115 548. Payment of advance mobilization to contractors without obtaining guarantees stood the risk of the amount paid being lost should the contractors renege on their responsibilities.

549. We recommended that, management should contact the contractor, for the guarantee before the difference of GH¢7,695.00 is paid to avoid the loss of funds through non-delivery.

Upward revision of contract sums without the endorsement of the District Tender Committee: GH¢75,198.51 550. Section 87 sub section (1) of the Public Procurement Act, 2003 (Act 663) categorically requires that “Except in cases of extreme urgency, where there will be an aggregate increase in the original amount of the contract by more than 10 percent of the original price, a procurement entity shall inform the appropriate Tender Review Board in the case of a contract subject to review by the Tender Review Board of any proposed extension, modification or variation order with reasons.”

551. The District Engineer of the Krachi Nchumuru District Assembly made an upward review of the contract sums of two construction projects by GH¢75,198.51 representing an average of 25.93% without the approval of the District Tender Committee or the General Assembly. No justification was provided to the audit team. This constituted a weakness in the procurement process of the Assembly and likely to inhibit transparency and audit review.

552. We recommended that, the revision of any contract sums including the two should be referred to the District Tender Board or the General Assembly for approval.

Payment of contracts without monitoring reports/certificates: GH¢64,506.89 553. Section 16 (a) of the Financial Administration Act, 2003 (Act 654) categorically requires among others that payments for work done, goods supplied or services rendered should be certified by either the head of department or any authorised officer as having been satisfactorily done and price charged found reasonable.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 116 554. The Krachi Nchumuru District Assembly engaged a contractor on road rehabilitation works at a value of GH¢42,686.80 and paid an initial certificate of GH¢11,000.00 for executed works without any inspection reports from the District Monitoring and Evaluation Team.

555. In a related development the Biakoye (GH¢17,400.00) and North Dayi (GH¢36,106.89) District Assemblies made two contract payments totalling GH¢53,506.89 without certificates of work done by the District Works Engineers.

556. Failure to prepare certificates and the sole reliance on works engineers’ certificates without monitoring reports can result in Assemblies not having value for money should shoddy works be done by the contractors.

557. We recommended to management to always obtain certificates and monitoring reports prior to the payment of any certificates.

Mobilization advance paid without contract execution: GH¢13,027.85 558. Part II, Regulation 39(1) of Financial Administration Regulation (LI 1802) States that a head of department shall ensure that monies are utilized in a manner that secure both optimum value for money and the intention of parliament. Furthermore, Regulation 39 (2c) also makes it mandatory for a head of department to ensure that transactions are properly authenticated to show that amount are due and payable.

559. In the year 2012, management of the Biakoye District Assembly paid mobilization advance of GH¢13,027.85 to Messrs Alidzi Ventures towards the construction of 1No.CHPS compound at Nkonya Bumbula. Although the contractor had moved some equipment and materials to site, as of 31 December 2015 project execution had still not commenced revealing weakness in the role of the Monitoring and Evaluation Team in the Assembly’s contract management.

560. We recommended to management to recover the total amount of GH¢13,027.85 from the contractor and consider a re-award of the contract.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 117 Payment of retention which could not be traced to any Contract in the Contract Register: GH¢8,858.33. 561. We noted contrary to Part II, Regulation 39(2c) of the Financial Administration Regulation, 2004 L.I. 1802 that management of Ho Municipal Assembly paid a total amount of GH¢8,858.33 as retention monies to two contractors but the amount could not be traced to any contracts in the Contract Register to enable us ascertain whether they were due.

562. We recommended evidence of the veracity of the payment failure of which the amount should be recovered from the contractors otherwise the MCD and MFO should be surcharged and sanctioned.

Ghana Social Opportunities Project (GSOP)

Contract variations not approved: GH¢104,814.15 563. The Nkwanta South District Assembly through its consultant varied the price of a contract for the construction of a dam by GH¢104,814.15 representing 25% of the initial contract sum of GH¢423,202.83 without the approval of the Regional Tender Review Board or a consideration for re-award in violation of Part IX, Section 87(1) of the Public Procurement Act, 2003 (Act 663). The practice could result in payments not commensurate to work done, hence the possible loss of funds to the Assembly.

564. We recommended the justification and regularization for the upward revision, failure of which the amount should be recovered from the contractors and any official who was responsible for the payment.

Absence of permit for dam construction despite payment made: GH¢2,400.00 565. Management of Nkwanta South District Assembly was found to have engaged in the construction of a Dam at Abrewankor-Nyambong but was yet to secure a permit from Regional Environmental Protection Agency, Ho despite the payment of an amount of GH¢2,400.00 to the Agency.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 118 566. We urged management to obtain the permit to avert any environmental degradation in the communities.

Procurement and stores irregularities:

Purchases not accounted for: GH¢13,885.00 567. Contrary to Sections 0522 and 0316 of MoFEP Stores Regulations 1984, management of Nkwanta North District Assembly procured various items costing GH¢13,885.00 for GSOP activities but failed to account for the receipt and use in any store records to enable an effective audit trail.

568. Management should provide store documentation to support receipt and evidence of use of the items, failing which the Coordinating Director and the Finance Officer should be held liable to refund the amount to the Assembly’s account.

Repairs, services and maintenance without works orders and certification: GH¢22,882.79 569. Contrary to Chapter, 15 Section 1522 of the Stores Regulation, 1984 management of Agotime-Ziope (GH¢15,360.38) and South Dayi (GH¢7,522.41) District Assemblies procured maintenance and repairs services for their official vehicles and office equipment amounting to GH¢22,882.79 but failed to issue works orders and also obtain certification for satisfactory work done contrary to the above stated law.

570. We found from our interaction with the management staff that the violations happened as a result of administrative lapses on the part of the DCEs, DCDs and DFOs which can be exploited by some service providers.

571. We recommended to management of the Assemblies to ensure that works orders and independent certifications are provided for services contracted before payments are made.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 119 Purchases without alternative quotations: GH¢73,514.00 572. Part IV Section 43(1) of the Public Procurement Act, 2003 (Act 663) enjoins a procurement entity to obtain quotations from as many suppliers or contractors as practicable but at least from three different sources.

573. We however noted that, Hohoe Municipal (GH¢6,675.00), Ho Municipal (GH¢6,389.00) and Ketu South District (GH¢60,450.00) Assemblies procured goods and services worth GH¢73,514.00 without obtaining alternative quotations from other suppliers or service providers to ensure competitive pricing. Since the transactions lacked transparency and fairness it was likely the Assemblies did not obtain value for money.

574. We recommended that management of the affected Assemblies should comply with the provisions in the Public Procurement Act, 2003 to promote transparency and accountability in management of public resources.

Purchases from non-VAT registered suppliers: GH¢51,427.00. 575. The Adaklu-Waya (GH¢16,523.00) and Afadzato-South (GH¢34,904.00) District Assemblies procured goods and services worth GH¢51,427.00 from non-VAT registered entities without any justification and approval in violation of Financial Administration Regulation 183(4) of L. I. 1802 and as such avoided the payment of VAT revenue of GH¢9,002.54 to the State. No. Name of Amount VAT Institution GH¢ Component 1. Adaklu- Waya 16,523.00 2,894.52 2. Afadzato-South 34,904.00 6,108.02 Total 51,427.00 9,002.54

576. We considered the anomaly a deliberate act by management as similar procurements had been done in accordance with the law.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 120 577. For the avoidance of penalties, we urged management to strictly procure from only VAT registered persons or entities or sanctions be imposed on any official responsible for such impropriety.

Payment for repairs on vehicle No. GT 5498X: GH¢6,800.00. 578. Notwithstanding Part II, Regulation 39(1) of LI 1802, we noted from our audit that five months after the Krachi Nchumuru District Assembly paid GH¢6,800.00 to a private mechanic for repairs of an official vehicle, the mechanic had not carried out the works neither had he brought the vehicle back to the Assembly.

579. To avoid any additional costs and loss of funds to the Assembly, we recommended that management should pursue the mechanic to execute his portion of the contract, otherwise the amount should be recovered from him. Failing this the approving and authorising officers for the payment should refund the amount into the Assembly’s account.

Purchases of Tractor: GH¢45,000.00 580. Under Part VI, Section 11 of the Financial Memoranda which provides among other things, it is the duty of an officer responsible for a head of expenditure to vouch payment vouchers and must ensure that the services have been performed.

581. Our audit of the MPs Common Fund revealed that in May 2015 management of Ketu South Municipal Assembly paid GH¢45,000.00 to an organisation by name Under Privileged Farmers 2 KR.2013 for the supply of a Same Tractor and its accessories. We noted that eight months after the payment the tractor had not been supplied. Strangely enough, management and the Works Department seemed to have no knowledge of about the purchase of the tractor and its accessories.

582. This practice which constitutes pre-financing could lead to loss of the Assembly’s funds and as such may not achieve value for money on the expenditure.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 121 583. We recommended that management should use all means including legal means to retrieve the tractor or recover the amount from the contractor and surcharge the authorising and approving officers of the payment with any cost incurred.

Failure to produce distribution list for items: GH¢49,814.50 584. Our review of the MPs Common Fund store records revealed that contrary to Chapter 6, Regulation 0603 and 0601 of Store Regulations, 1984, North Dayi District (GH¢22,272.50) and Krachi Nchumuru District (GH¢27,542.00) Assemblies procured office items valued at GH¢49,814.50 and handed them in bulk to MPs and others for distribution but failed to prepare distribution lists to enhance any audit trail. We could therefore not confirm whether the items were received by the intended beneficiaries.

585. We recommended that management of the Assemblies should provide us with the distribution lists of the items for a follow up action otherwise the amount should be recovered from the MP’s and the responsible officers who failed to document the items before handing it over.

Tax irregularities

Failure to withhold/remit/ and undue delay in remittance of tax: GH¢61,526.39 586. Contrary to Part X, Section 84(1b) of the Internal Revenue Act, 2000 (Act 592), Management of four District Assemblies failed to withhold the required 5% tax on supplies of goods and services amounting to GH¢ 30,500.40 for remittance to Ghana Revenue Authority (GRA). In another development, four (4) Assemblies were found to have failed to remit a total amount of GH¢28,974.48 being tax withheld to GRA in contravention of Section 87(1) of Act 592. The details are shown below:

No. Assembly Un-withheld taxes Tax not remitted GH¢ GH¢ 1. Afadzato South District 5,802.05 2. Akatsi South District 20,732.10 3. Ketu South District 2,409.00

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 122 4. South Tongu District 1,557.00 5. Adaklu-Waya District 1,450.00 6. Ho Municipal 3,192.67 7. Krachi Nchumuru District 5,172.70 8. Nkwanta South District 19,159.11 Total 30,500.15 28,974.48

587. At the Agotime-Ziope District Assembly, our review disclosed that the withheld 5% withholding taxes totalling GH¢18,946.36, were unduly delayed for periods between two and seven months before being remitted to the Commissioner- General, GRA.

588. We further noted that withheld taxes on payments totalling GH¢2,051.76 were not remitted to the Ghana Revenue Authority by the Nkwanta South District Assembly and expended in its operations. The anomalies cited could attract avoidable cost in the form of penalties and impact negatively on the Assemblies already cash strapped position.

589. We recommended that management should adhere to the relevant tax laws and act accordingly for the avoidance of penalties, otherwise any officer whose act results in cost to the Assemblies should be surcharged.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 123 WESTERN REGION

Introduction 590. The flow of funds from the Administrator of Common Fund continued to be intermittent resulting in delayed release of funds during the year. The Administrator provided for four quarters a total amount of GH¢44,443,937.39 for distribution among the 22 Assemblies in the Western Region. The amount covered the third quarter of 2014 and first three of 2015.

Cash irregularities

Source deductions: GH¢8,255,486.74 591. Our audit revealed that out of a total receipt of DACF funds of GH¢44,443,937.39 made to 13 out of the 22 Assemblies in the Western Region during the year, an amount of GH¢8,255,486.74 or 18.58% was deducted at source by the ADACF resulting in a net difference of GH¢36,188,450.65.

592. Our preliminary enquiry at the Administrator’s office revealed that the Assemblies individually committed their DACF allocations to outsourced services and this led to the deduction from their share on quarterly basis. The deduction would negatively impact on the limited funds of the Assemblies and as such inhibits their ability to achieve the work plans.

593. We therefore advised management of the Assemblies to be circumspect in the administration of their allocations to prevent delayed projects phenomenon frequently encountered in the districts.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 124 Financial assistance to staff without policy guidelines: GH¢12,160.00 594. Under Part I, Paragraph 5a of the Guidelines for the utilization of the District Assemblies’ Common Fund for the 2014 fiscal year, Assemblies are enjoined to set aside 10% of their releases to meet human resource management among others.

595. Management of Tarkwa Nsuaem Municipal Assembly granted an amount of GH¢12,160.00 as financial support to the Coordinating Director (GH¢6,000) and his Deputy (GH¢6,160) to pursue individual courses. We however noted that the Assembly had no written policy to determine the criteria for staff accessing the facility.

596. The absence of any policy guidelines to determine the calibre of personnel qualified for such financial support could lead to abuse with its attendant loss of public funds in future.

597. To enhance transparency and accountability in the management of public funds, we urged management to come out with policy guidelines for granting such financial assistance to staff.

Uneconomical payment of rent advance: GH¢42,000.00 598. Under Part II, Regulation 39 of LI 1802 a head of department is enjoined to ensure that moneys are utilized in a manner that secures both optimum value for money and the intention of Parliament.

599. Our audit of the Tarkwa Nsuaem Municipal Assembly revealed that management paid an amount of GH¢42,000.00 as a five-year rent advance to a Landlord, one Mr. S.K. Sackey for a five-bedroom flat to accommodate the Municipal Urban Roads Engineer Mr. Derrick Obeng without the Assembly collecting any subsistence rent payment from the officer.

600. We were of the view that renting a five-bedroom flat and the subsequent payment of a five-year rent for an official did not depict economical use of the DACF

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 125 limited resources more so when the official was paying nothing to the Assembly to recoup the expenditure.

601. Whilst we urged management to be circumspect with the use of the Assembly’s funds, we also recommended that the official should be made to pay a commensurable rate as rent to the Assembly.

Unaccounted imprests: GH¢116,927.00 602. Part XIII, Regulation 283(b) of FAR, 2004 directs that, special imprests issued for making a particular payment or group of payments which must be fully retired by the date specified in the approval to operate the imprest. Regulation 288 also demands the opening of a personal advance account in the name of an imprest holder where the holder had failed to retire an imprest.

603. Our review however disclosed that management of the Nzema East Assembly advanced a total of GH¢116,927.00 to eight officers of the Assembly to undertake various activities but had since failed to account for the amount.

604. We noted that management’s failure to put in place any internal mechanism to ensure the prompt accountability of funds advanced to officers for official assignments as the cause which can facilitate suppression and misappropriation of funds.

605. We recommended to management to pursue the officers involved to account for the amount otherwise the amount should be treated as personal advances and recovered from any of their entitlements. Management should introduce measures that would compel imprest holders to retire their imprest promptly.

Payment for undisclosed liabilities: GH¢245,295.68 606. Chapter 15, Paragraph 95 (1a) on the reporting requirements of MMDAs in their Accounting Manual states that, in the case of the accounts prepared by the

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 126 Assembly, the financial statements shall include a balance sheet showing the Assets and Liabilities of the Assembly as at the end of the period (year/month).

607. We noted from our review that the Tarkwa-Nsuaem Municipal Assembly made a total payment of (GH¢186,844.00), Nzema East Municipal (GH¢49,659.99) and Shama District (GH¢ 8,791.69) to service providers but the expenditure was not related to the year under review. We observed that the expenditure, some of which dates as far back as 2012 were not disclosed in their respective financial statements. Under such circumstance we could not authenticate the veracity of the payments.

608. We recommended to management to make full disclosure in the Assemblies financial statement for fair reporting and to enhance stakeholders’ decision making. Management should justify the veracity of the payments or the amount should be recovered from the authorising and approving officers into the Assemblies account.

Unsupported payments: GH¢559,929.02 609. Our audits disclosed that nine Assemblies made payments totalling GH¢559,929.02 for goods and services without supporting the payment vouchers with the relevant expenditure documents in violation of Part IX, Sections 7, 13 and 14 of the Financial Memoranda.

610. Payments for procurements not properly substantiated could lead to undelivered services, duplication and overpayments to suppliers.

611. We recommended that in the absence of appropriate supporting documents to account for the payments, the amount should be recovered from the Co-ordinating Directors and Finance Officers of the nine Assemblies.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 127 No. Assembly Amount GH¢ 1. Suaman District 8,000.00 2. Sefwi Akontombra District 126,596.76 3. Wassa Amenfi West District 69,041.14 4. Jomoro District 104,661.25 5. Nzema East Municipal 161,791.87 6. Bibiani/Anhwiaso/Bekwai District 56,990.00 7. Wassa East District 5,154.00 8. Shama District 15,764.00 9. Bia East District 11,930.00 Total 559,929.02

612. Unsupported financial assistance to students: GH¢69,346.00 613. Part IX, Section 13 of the Financial Memoranda for MMDAs enjoins spending officers to obtain written acknowledgement in ink on the payment voucher by the payee while Section 14 enjoins spending officers to obtain official receipts in support of payments to government departments.

614. On the contrary, our examination of the MPs Common Fund payment vouchers disclosed that 89 students who reportedly received financial assistance totalling GH¢69,346.00 from the Suaman District (GH¢61,046.00) (82) and Bibiani/Anhwiaso/Bekwai District (GH¢8,300.00)(7) Assemblies did not provide receipts and bills from their various educational institutions to authenticate the payments.

615. Consequently, we could not authenticate whether the payments were made to intended beneficiaries and educational institutions.

616. We recommended to management to ensure the provision of this and future supporting documents for all financial assistance to students or be held liable to refund any amounts involved into the Assemblies’ accounts.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 128 Overpayment of repair works: GH¢1,616.00 617. Under Part IX, Section 4 of the Financial Memoranda for MMDAs, an officer certifying a voucher thereby certifies to the accuracy of every detail therein.

618. The Finance Officer of the Wassa Amenfi West District Assembly failed to exercise this responsibility as he paid GH¢14,350.67 to Messrs Anighart Motors, Asankragwa for vehicle repairs instead of GH¢12,734.67 resulting in an overpayment of GH¢1,616.00.

619. We recommended to management the recovery of the amount from the Garage or the Finance Officer should be held liable to refund for negligence.

Contract Irregularities

Payment for works without inspection report: GH¢355,930.63 620. Part IX, Section 70(a) of the Financial Memoranda for Assemblies requires the Works Engineer or such other person as the Assembly may appoint for the purpose, to inspect work done and give a certificate (Contract Payment Certificate on DA Form 22A or retention money payment certificate on DA Form 22B) which shall be attached to the payment voucher.

621. The Wassa Amenfi West (GH¢72,290.00), Nzema East Municipal (GH¢203,704.63) and Bibiani/Anhwiaso/Bekwai (GH¢79,936.00) Assemblies made payments to the tune of GH¢355,930.63 for various works undertaken but failed to demand either Inspection reports or Engineer’s certificates to justify that works were satisfactorily executed.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 129 622. The practice could lead to payment for shoddy works and unexecuted works and also create an avenue for misappropriation of funds leading to loss of funds to the Assemblies.

623. Management should produce evidence of third party certification of the works executed to warrant the payment, failing which the amount involved should be surcharged against the Coordinating Directors, Engineers and Finance officers.

Failure to pre-qualify suppliers and service providers: GH¢445,145.67 624. Although Part III, Section 22 of Act 663 calls for prequalification exercise on contractors before selection, we noted at the Nzema East Municipal Assembly that management did not pre-qualify 11 contractors before awarding and paying them contract sums of GH¢445,145.67. The Assembly therefore risks dealing with entities that have no legal capacity to enter into contract, or have not fulfilled their tax obligations in future.

625. We advised management to be circumspect in its procurement activities by ensuring that all service providers the Assembly deal with satisfy the requirements of the Public Procurement Act, 2003.

Unfulfilled Agreement: GH¢65,000.00 626. The Wassa Amenfi West District Assembly entered into a mutual agreement with Integrated Rural Development Project (IRDP) for the drilling of a Borehole and construction of a community market. The Assembly thereafter honoured its part of the agreement by paying a total of GH¢65,000.00 in three tranches into the Social Investment Fund (SIF).

627. Five months into the payment, Integrated Rural Development Project (IRDP) had not commenced the construction of any of the two projects.

628. We recommended that the Assembly should vigorously ensure that IRDP deliver its part of the agreement or the amount should be recovered from SIF into the Assembly’s account.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 130 Unutilised completed projects: GH¢922,728.75 629. Seven completed projects valued GH¢922,728.75 funded from the DACF of the Jomoro District Assembly had not been put to use by the beneficiary communities.

630. We noted that failure by management to consult the beneficiary communities over the siting of the projects prior to the construction and non-furnishing contributed to the stalemate.

631. We urged management to furnish those needed to be furnished and ensure that in future beneficiary communities are consulted about the siting of projects. Meanwhile management should persuade the communities to use the projects to avoid waste of state resources.

Procurement and store irregularities

Failure to obtain Title deeds/receipts: GH¢30,000.00 632. Our audit review showed that the Sefwi Akontonbra District Assembly acquired two plots of land from two private individuals at a total cost of GH¢30,000.00 for the construction of additional staff bungalows and other development projects but had failed to obtain title deeds and any official receipt in acknowledgement from the landlords.

633. In the event of any disputes the Assembly stood the risk of losing the property and the money as well.

634. We recommended that management should initiate the required processes to acquire title deeds to the lands in addition to the official receipts to avert any future litigation which could result in losses.

Construction of project outside approved budget/plan: GH¢35,560.60 635. The Nzema East Municipal Assembly awarded a contract for the rehabilitation of the Bungalow of the Municipal Director of the Ministry of Agriculture

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 131 at a contract sum of GH¢48,582.58 but was neither included in the Procurement Plan (PP) of the Assembly nor approved Annual Action Plan (AAP) for 2015. The Assembly had paid a total of GH¢35,560.60 out of the contract sum.

636. We are of the view that since the project was not included in the 2015 AAP it could unduly delay the execution of other approved projects resulting from inadequate funding.

637. We recommended to management of the Assembly to be prudent in the management of its expenditure by ensuring that only approved programmes and activities in AAP and PP are undertaken to avoid any delayed activities and subsequently cost overruns.

Unaccounted Stores: GH¢42,514.00 638. Contrary to Chapter 6, Store Regulation 0601 of the Ministry of Finance Store Regulations 1984 management of Bia East District Assembly purchased building materials and football equipment from the MPs Common Fund Account and reportedly distributed them to various communities in the District but did not provide any distribution list to authenticate the distribution.

639. We recommended to management to liaise with the MP to provide the distribution list to substantiate the payment otherwise the MP should refund the amount involved and advised future compliance with the store regulations.

Tax irregularities Failure to remit withholding tax: GH¢23,069.13 640. Contrary to Part X, Section 87(1) of the Internal Revenue Act, 2000 (Act 592) which requires withholding agents to pay to the Commissioner-General a tax that has been withheld or that should have been withheld within 15 days after the end of the month in which the payment subject to withholding tax was made, we noted that Sefwi Akontombra District (GH¢20,806.13) and Wassa East District (GH¢2,263.00)

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 132 Assemblies failed to remit a total of GH¢23,069.13 withheld taxes to the Commissioner General of Ghana Revenue Authority. The taxes had been retained for periods ranging from 7 to 10 months.

641. We recommended to management to remit the amount to the Commissioner- General immediately and the Finance Officers surcharged with any accrued penalties.

Failure to deduct 10% statutory tax from allowances paid: GH¢1,159.10 642. Part III, Section 8 (1 & 2) of the Internal Revenue Act, 2000 (Act 592) Section 8 (1 & 2) states that, a person’s income from an employment is that person’s gains or profit from that employment. The gains or profits from an employment of a person include any allowances or benefits paid in cash or given in kind.” During the year under review the tax on allowance rate was 10% with the threshold for deduction as GH¢50.00 and above.

643. The Municipal Finance Officer of Nzema East Municipal Assembly made a total payment of GH¢11,591.00 as allowances to officials of the Assembly but failed to deduct the required 10% statutory tax of GH¢1,159.10 in violation of the above stated law.

644. We recommended to management to put in place the necessary arrangement to recover the amount of GH¢1,159.10 from the officials involved and same remitted to the Ghana Revenue Authority. The Finance Officer should be surcharged with any losses incurred from subsequent violations.

Payment of VAT without VAT Invoice: GH¢4,602.58 645. Section 19(1) of the Value Added Tax Act, 1998 (Act 546) states that, a taxable person shall on making taxable supply of goods or services issue to the customers or the person supplied, tax invoices in such form as shall be prescribed by regulations. 646. We observed that management of three Assemblies paid GH¢26,827.50 to service providers per invoices submitted which included a total VAT component of

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 133 GH¢4,602.58 but these were not acknowledged with the related VAT invoices. The details are provided below. Assembly Amount paid GH¢ VAT component GH¢ Nzema East Municipal 16,472.00 2,882.60 Wassa East District 6,868.50 1,201.98 Shama District 3,487.00 518.00 Total 26,827.50 4,602.58

647. The State risks losing the tax revenue of GH¢4,602.58 to the suppliers since they were likely not to file returns on the revenue collected at the Ghana Revenue Authority.

648. We recommended to management to obtain the VAT Invoices from the suppliers, failing which the paying officers should be surcharged with the tax payment of GH¢4,602.58 for negligence.

Procurement from non VAT registered suppliers: GH¢21,282.96 649. Our audit revealed that contrary to Part VII, Regulation 183 (4) of the Financial Administration Regulations 2004 (LI 1802) the three Assemblies as provided below procured goods and services worth GH¢121,761.90 from non VAT registered entities thereby avoiding the payment of GH¢21,282.96 tax revenue to the State. Assembly Amount paid GH¢ VAT GH¢ Sefwi Akontombra 12,537.00 2,168.61 District Nzema East Municipal 74,789.90 13,088.23 Wassa Amenfi West 34,435.00 6,026.12 District Total 121,761.90 21,282.96

650. We recommended to the management of the Assemblies to procure from only VAT registered entities in future to avoid sanctions with its attendant losses to the Assemblies.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 134 PART IV

DISTRICT DEVELOPMENT FACILITY

ASHANTI REGION

Introduction 651. The 30 Assemblies in the Ashanti Region were resourced with a total amount of GH¢12,023,009.00 by the District Development Facility Secretariat under the Ministry of Local Government and Rural Development to assist in development activities during the year.

Cash irregularity

Unsupported payments: GH¢349,023.64 652. Our audit revealed that the Asokore Mampong Municipal GH¢145,288.36 (5), Atwima Nwabiagya District GH¢11,000.00 (3) and Sekyere South District GH¢192, 735.28 (6) Assemblies failed to account for 14 payments valued at GH¢349,023.64 with the requisite supporting documents contrary to Part IX, Sections 13 and 14 of the Financial Memoranda for Assemblies.

653. The transactions which cast doubts on its authenticity and stood the risk of loss of funds to the Assemblies were attributed to the Coordinating Directors and Finance Officers’ negligence in obtaining these source documents before approving and authorising payments to be effected.

654. We demanded accountability of the amount otherwise the Coordinating Directors and Finance Officers should refund the amount into the Assemblies’ accounts.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 135 Contract irregularities

Abandoned projects: GH¢131,112.70 655. The essence of the introduction of the District Development Facility programme is to enhance and hasten physical development in communities under the various district administrations. It is therefore prudent for Assemblies to give priority to the funding of abandoned and ongoing projects before embarking on new ones. This would avert discrimination and ensure that targeted communities reap the benefit of projects undertaken for them.

656. We however noted that the Mampong Municipal Assembly had abandoned two projects with a total contract value of GH¢178,412.00 after paying GH¢131,112.70 and thereafter gone ahead with the award of other projects in the succeeding years. The projects which were awarded in February 2010 and March 2013 and scheduled for completion in June 2011 and June 2013 respectively were 50% and 55% completed. The details are provided below:

No. Project Contract Sum Amount Paid (GH¢) (GH¢) 1. Construction of 1 No. 3 Unit 80,327.00 72,207.75 Classroom block and ancillary facilities at Atonsuagya 2. Construction of 1 No. KG block at 98,085.00 58,904.95 Kyeremfaso Total 178,412.00 131,112.70

657. The death of a contractor and a dispute over the construction of one of the projects had led to the suspension of these projects.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 136 658. Where projects are abandoned only for new contracts to be awarded, the likelihood of incurring cost overruns arising from inflationary effects on building materials cannot be overemphasized.

659. We recommended to management to endeavour to complete the projects before awarding any news ones, for the earmarked communities to derive the intended benefits so as to prevent the investment of GH¢131,112.70 from going down the drain.

Delayed projects: GH¢530,541.41 660. As a sequel to previous paragraph under ‘Abandoned projects’, we noted from the audit of the Ejura Sekyeredumase Municipal Assembly that seven 3Unit classroom block projects with a contract value of GH¢735,994.10 and on which the Assembly had spent GH¢530,541.41 was as of 31 December 2015 unduly delayed in completion for periods ranging from 19 months to 44 months. The projects are at various stages of completion ranging from 60% to 80%.

661. Inadequate funding from DDF sources had been a major contributory factor to the delay in completion of the projects. We also opined that the sidelining of old projects for new ones annually also promote delayed works. This could result in cost overruns due to increase in prices of building materials.

662. We urged management to be circumspect with the operations of the Facility by ensuring the completion of ongoing projects before new ones are considered.

BRONG AHAFO REGION

Introduction 663. During the year the District Development Facility Secretariat under the Ministry of Local Government and Rural Development supported the 27 Assemblies in the Brong Ahafo Region with a total amount of GH¢9,274,658 to assist in development activities.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 137 Cash irregularities

Failure to obtain official receipts from payees: GH¢114,006.33 664. Contrary to Part IX, Section 14 of the Financial Memoranda for MMDAs, we observed that one to eleven months after the Wenchi Municipal Assembly made three payments of GH¢114,006.33 to Messrs Sunkwa Ventures for the construction of a fence wall around the Wenchi Sports field contracted at GH¢184,867.78, the contractor had not officially receipted the payment despite management and the inspection team’s persistent efforts to have them do so. Meanwhile, the project is ongoing.

665. The Finance Officer was found to have been negligent to strictly adhere to the payment process of demanding an immediate receipt upon making payment. The action can lead to future disputes over the Assembly’s indebtedness to the contractor(s) which can have a reciprocal loss of funds to the Assembly.

666. We recommended the collection of the official receipt from the contractor by the Finance Officer and be reprimanded for being negligent in his official responsibilities.

Payments without Expenditure Warrants: GH¢215,181.00

667. We however noted that 28 payment vouchers valued at GH¢215,181.00 paid by the Tano North District Assembly were not supported with expenditure warrants to confirm whether they were budgeted for or fall within the limits of the provisions made in the approved budget of the Assembly in contravention to Part VI, Section 11(a) of the Financial Memoranda for MMDAs. We attributed the lapse to lack of co- ordination between the Assembly’s Budget Unit and the Finance Office in the payment process.

668. We recommended to management of the Assembly to ensure that all future payments are supported with warrants before approval and subsequent payment.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 138 Contract irregularities

Completed projects not in use: GH¢724,450.85 669. The Asunafo North (2) (GH¢381,295.25), Jaman North (1)(GH¢185,422.00) and Tano North (4) (GH¢157,733.60) District Assemblies expended a total amount of GH¢724,450.85 on seven projects but had failed to commission and put them into use after their completion. These projects had remained unused for periods between two months to five years.

670. Our inspection revealed that the markets had no places of convenience while the Administration and residential accommodations were awaiting furnishing. Our enquiries from the communities revealed that, the inactivity of the facilities was inflicting hardships on the communities thereby defeating the purposes for which they were constructed.

671. Management was urged to ensure that, the facilities are provided with the needed enhancements to be put to immediate use and prevent deterioration which can attract high remedial costs.

Payment of preliminaries without evidence: GH¢10,885.00 672. Our review of contract payments of Asunafo South District Assembly revealed that, M/S Lethnass Construction Ltd was paid GH¢10,885.00 as preliminaries for three contracts undertaken in the district. However, management could not produce any invoice, receipt, certificate or any related document from the contractor to substantiate the payment.

673. This deliberate act of omission could result in payments for non-provision of any preliminary works which can adversely affect the quality of the contracts. In the absence of the required documentations in our opinion, the works were not carried out by the contractor.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 139 674. We therefore recommended the total recovery of the amount of GH¢10,885.00 from the contractor failing which all personnel responsible for the payment should be surcharged with same for dereliction of duty.

Abandoned/Delayed Projects: GH¢1,196,390.73 675. We noted during our review and inspection of projects that the Asunafo North (3) (GH¢779,844.19), Jaman South (1) (GH¢301,754.54), Berekum Municipal (1)(GH¢114,792.00) Assemblies had abandoned five projects on which a total amount of GH¢1,196,390.73 had been spent. The projects which commenced in 2011 and 2013 and were slated for completion between six and twelve months were between 80% and 90% completed.

676. Delay in executing projects leads to cost overruns. Besides denying intended beneficiaries the use of the projects, value for money would not be achieved. Inadequate funding and contracting new contracts at the expense of uncompleted ones accounted for the lapse.

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

Indebtedness to contractor: GH¢102,688.84 678. Our audit revealed that, the Techiman North District Assembly owed five contractors a total amount of GH¢102,688.84 for six projects which were unduly delayed for 12 months and completed in 2014.

679. In our opinion, the award of new contracts without recourse to ongoing and completed ones as well as the inadequacy of DDF funding led to the situation.

680. To prevent any avoidable cost such as the payment of judgement debts, we recommended that, in the payment for contracts, priority should be given to

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 140 ongoing/completed projects over new ones. Meanwhile, management should ensure that the debt is settled without any further delay.

Civil works without plans, drawings and work specifications: GH¢463,178.90 681. To achieve economy, efficiency and proper monitoring of DDF contracts, the District Works Engineer is required to prepare realistic estimates for all projects to serve as reserved prices before inviting prospective bidders. The estimates or bill of quantities are expected to serve as a standard guide in estimating the contract price and also provide a reasonable base in the evaluation of tenderers’ responsiveness.

682. However, the District Works Engineer of Asunafo South District Assembly failed to prepare any estimates prior to the award of four construction contracts by the District Tender Committee to M/S Lethnass Ltd and Napsolinks Ghana Ltd at a total contract sum of GH¢463,178.90.

683. In this regard, since the reserved prices for determining the reasonableness of the contract prices were not provided, value for money would have been compromised by the Tender Committee.

684. We recommended to management to ensure that the District Engineer always prepares estimates on contracts for the Tender Committee before being awarded. Meanwhile both the Engineer and Tender Committee should be reprimanded for neglecting this essential part of the procurement process.

Unapproved variation in contract price: GH¢30,917.06 685. According to Part IX, Section 68 of the Financial Memoranda for District Assemblies, no alterations should be made to any contract or schedule or specification thereof except on the recommendation of the District Tender Board. Such alterations should be signed by the Presiding Member of the Assembly or other person authorised by the Assembly to act on its behalf.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 141 686. We however, noted that Tano North District Assembly varied four construction contracts with an initial value of GH¢215,459.46 by an amount of GH¢30,917.06 without the endorsement of the Presiding Member and approval of the General Assembly. 687. We recommended that, in the absence of any documentation to show that due process in varying the contract prices were pursued, the Co-ordinating Director, Works Engineer, Planning officer and Finance Officer should justify the expenditure and be reprimanded for their inaction.

688. Contract works paid for but not executed: GH¢4,344.00 689. The management of Asunafo South Municipal Assembly made full payment of a contract sum of GH¢149,347.07 without recourse to outstanding works of 1000 litre capacity Poly tank and two project sign boards costing GH¢4,344.00.

690. The action contravened Part IX, Section 5 of the Financial Memoranda for MMDAs which enjoins all officers certifying vouchers to exercise the greatest care to ensure that the certificates they sign are in accordance with the facts.

691. We recommended that, the contractor should be called upon to provide the outstanding items, failing which the Coordinating Director, Engineer, Finance Officer and Internal Auditor should be held liable to refund the cost for not being vigilant in their work.

Procurement and stores irregularities

Unaccounted Fuel: GH¢8,012.20 692. The Coordinating Director and Finance Officer of Tano North District Assembly could not show proof of the utilisation of a total amount of GH¢8,012.20 allegedly expended on fuel for their official vehicles.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 142 693. With the exception of the Fuel station receipts, there were no vehicle log book entries or other documentary evidences to show how the fuel was utilized by the personnel.

694. We requested management of the Assembly to provide appropriate documentation to authenticate the payments, failing which the amounts should be recovered from the Coordinating Director and Finance Officer to the Assembly’s account.

Tax irregularities

Unremitted/un-withheld 5% tax: GH¢15,440.72 695. Management of Wenchi Municipal Assembly failed to remit withholding taxes totalling GH¢1,677.89 to the Commissioner of Domestic Tax Revenue Division contrary to Part X Section 87(2) of the Internal Revenue ,2000 (Act 592). In a related issue, the Jaman North (GH¢5,434.25) and Wenchi Municipal (GH¢8,328.58) Assemblies failed to deduct the required 5% withholding taxes totaling GH¢13,762.83 on payments of GH¢275,256.60 made to suppliers in violation of Part X, Section 84(1) of Act 592.

696. Lack of due diligence in the internal audit role and ineffective supervision over the work of the Finance Officers by the Coordinating Directors resulted in the two situations.

697. We urged the Co-ordinating Directors to ensure adherence to the tax laws and act accordingly for the avoidance of penalties.

CENTRAL REGION

Introduction 698. The 20 Assemblies in Central Region were resourced with a total amount of GH¢6,348,722.00 by the District Development Facility Secretariat under the Ministry

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 143 of Local Government and Rural Development to assist in development activities during the year.

Cash irregularity Unsubstantiated payment: GH¢43,606.91 699. We found that whereas Part IX, Sections 13 and 14 of the Financial Memoranda for Assemblies enjoin Assemblies to substantiate payments with the relevant expenditure details such as invoices, receipts and statements of claims, the Upper Denkyira West (GH¢24,606.91) and Assin South (GH¢19,000.00) District Assemblies failed to substantiate payments totaling GH¢43,606.91.

700. We could therefore not trail to ascertain the veracity of the payments and attributed the lapse to the failure of the Finance Officers to exercise due diligence in the payment process.

701. We recommended accountability to validate the amounts, failure of which the Coordinating Directors and Finance officers should be made to refund same to chest. Contract irregularities

Contract payments without inspection reports: GH¢68,616.99 702. Contrary to the requirement of Part IX, Section 70(a) of the Financial Memoranda for Assemblies, management of Assin South (GH¢62,211.68) (3) and Abura- Asebu- Kwamankese (GH¢6,405.31) (1) District Assemblies made four payments totaling GH¢68,616.99 to contractors without supporting the payment vouchers with inspection reports to authenticate the payments.

703. In the absence of inspection reports, we could not ascertain whether works done were according to specifications and attributed it to negligence on the part of the engineers and monitoring team.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 144 704. We demanded that management of the Assemblies should ensure strict compliance with the law for the avoidance of losses otherwise all responsible officials whose inaction resulted in such losses should be surcharged.

Failure to officially hand over completed projects to the Assembly: GH¢230,608.92 705. According to Section 35.1 of the contract document on three contracts, the project Manager shall give notice to the contractor of any defect before the end of the Defects Liability Period (DLP) which begins on the day of taking over and is defined in the contract data as 180 days.

706. On the contrary, we noted that three projects completed at a cost of GH¢230,608.92 by three contractors had not been officially handed over to the Assin North Municipal Assembly eight to twelve months after completion. Details are shown below:

Project Contractor Remarks Construction of 20 seater W.C Mag-Sags Enterprise Completed but not at Assin Akropong Ltd handed over to the (GH¢87,467.49) beneficiary community to use (22/12/2014) Construction of 1 No. 3 bed Qr Tek Engineering -do- (30/3/2015) room teachers quarters at Ltd Assin Akonfudi (GH¢98,857.68) Construction of 10 Seater Mag-Sags Enterprise Completed but not W.C. at Wurakese Ltd handed over to the (GH¢44,283.75) beneficiary community to use (22/12/2014)

707. We urged management to ensure that projects are officially handed over to the Assembly so that intended beneficiaries could make use of it for value to be achieved from the investment.

Project not in use: GH¢146,857.68 708. Public expenditure is geared towards the ultimate of achieving value for money. We found from our project inspection that, management of Assin North

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 145 Municipal Assembly had fully paid for the construction of 1 No. 3 bedroom Teachers quarters at a cost of GH¢98,857.68 Although the project is said to have been completed in March 2015 the contractor had failed to provide and install a 350 litre water poly tank at a cost of GH¢3,000.00. As a result, the project is lying idle and not in use eight months after the supposed completion date.

709. In a related development, the 14 seater Amalooloo toilet at Dompim constructed at a cost of GH¢48,000.00, which was completed and officially handed over to the Assin Municipal Assembly in January 2015 had started deteriorating although the Assembly had not handed it over to the community for use.

710. Our enquiry revealed that the projects had not been commissioned for use; a situation we found out of place since projects could still be put to use pending later commissioning. 711. We recommended to management to ensure the contractor provides the poly tank or recover at replacement cost should he fail and remedy the defects on the toilet so as to put the projects to use to serve the intended purposes.

Variation of contract without approval of Tender Review Board: GH¢17,619.00 712. Management of Abura Kwamankese District Assembly varied the total contract sum of GH¢86,778.89 on two projects by 16.60% and 29% respectively resulting in a difference of GH¢17,619.00 and bringing the new contract sum to GH¢104,397.89. We noted that although the variation went above the stipulated 10%, management did not seek the approval of the Tender Review Board thereby violating Part IX, Section 87(1) of Act 663.

713. We recommended that the excess amount of GH¢17,619.00 paid should be justified by management; failing which the amount should be recovered from the Coordinating Director, Finance Officer, District Engineer and Planning Officer of the Assembly for non-compliance with the regulation.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 146 EASTERN REGION Introduction 714. During the year the District Development Facility Secretariat under the Ministry of Local Government and Rural Development supported the 26 Assemblies in the Eastern Region with a total amount of GH¢8,650,003.00 to assist in development activities. Cash irregularities

Unsupported payments: GH¢63,494.14 715. Our audits disclosed that four (4) Assemblies made six payments totalling GH¢63,494.14 from the District Development Facility funds without supporting the vouchers with the relevant expenditure documents in contravention to Section 39(2c) of the Financial Administration Regulations, 2004 (LI 1802). The breakdown is shown below: Assembly Amount No. of Remarks No (GH¢) PVs 1 Kwahu East District 19,489.00 2 Office equipment and medical expenses 2 Upper Manya Krobo 7,400.80 2 Furniture purchases District 3 Birim Central 1,604.34 1 Consultancy fees Municipal 4 Akyemmansa District 35,000.00 1 Construction of 1 No 6- Unit Classroom block Total 63,494.14 6

716. We noted weak supervision over finance officers by management of the Assemblies as the cause of the lapse which in general poses financial risks to the Assemblies.

717. We recommended that failing to justify the payment with the relevant expenditure documents, the authorising and approving officials (Coordinating Directors and Finance Officers) should be held liable to refund the amounts involved into the Assemblies accounts.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 147 Contract irregularities

Overpayment of contract: GH¢39,584.00 718. Management of Suhum and East Akim Municipal Assemblies made overpayments to two contractors totalling GH¢39,584.00 in respect of two projects arising from wrong computations. Whilst Suhum Municipal Assembly under- deducted retention of GH¢9,537.87, the East Akim Assembly made full payment of the contract sum when the project was 75% completed resulting in an overpayment of GH¢30,046.13.

719. This situation contravened Part IX, Section 70(a) of the Financial Memoranda and could result in the Assemblies incurring losses or not obtaining commensurate value for money.

720. Management committed the error because it did not make reference to monitoring and evaluation reports when the payments were effected.

721. We advised management of the two Assemblies to ensure that correct amounts are retained from contracts and also payments should be made based on certificates and monitoring and evaluation reports obtained. We also urged management to compel the contractor to complete the project otherwise any losses or excess payment should be recovered from them. Failure of which the authorising and approving officers of the payment should be surcharged with any losses.

Unapproved contract: GH¢49,080.60 722. Our review showed that management of Birim Central Municipal Assembly per the approved budget for 2014 awarded the rehabilitation of 3 public toilets at Gyadem and two other communities at the cost of GH¢48,583.40 to Messrs Destext Enterprise. Management thereafter went ahead and awarded the rehabilitation of four more at the cost of GH¢49,080.60 to the same contractor. Although the cost of the

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 148 second contract had not been catered for in the budget for the year, management did not seek approval from the General Assembly prior to the award.

723. The action would affect other earmarked projects under DDF and deny targeted communities of their benefits.

724. We advised management to seek approval for the additional contract whilst it ensures that, in future, such arrangements should be referred to the General Assembly for approval.

Procurement and stores irregularities

Procurement of services not performed: GH¢11,700.00 725. Contrary to Part VI, Section 11(b) of the Financial Memoranda for Assemblies which requires an officer responsible for a head of expenditure to vouch payment and in doing so he shall be held responsible that the services specified have been performed, we noted that management of Suhum Municipal Assembly made up front payments totalling GH¢11,700.00 to M/S Bergash Investments Ltd. for the provision and installation of various electrical accessories in the execution of a CHPS compound at Aponoapono but the contractor had not carried out the works. Management had however taken over the project in spite of the setback.

726. We attributed the anomaly to the inaction on the part of management and the Works Engineer to insist on the provision and installation of these items before the formal taking over of the project by the Assembly.

727. We urged management to ensure the full completion of the project with the supply and installation of the items before paying the contractor of any retention due.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 149 Purchases from non-VAT registered entities: GH¢9,213.00 728. Management of Atiwa District Assembly made procurements worth GH¢9,213.00 from a non-VAT registered entity contrary to Section 30(2) of the Financial Administration Act, 2003 (Act 654) and Part VI, Regulation 183(4) of the FAR, 2004. The non-compliance of the irregularity could attract penalties and result in avoidable cost to the Assembly.

729. We recommended that management should only deal with VAT- registered entities at all times to avert a drain on its limited funds.

GREATER ACCRA REGION

Introduction 730. The 16 Assemblies in the Greater Accra Region were resourced with a total amount of GH¢6,751,733.00 by the District Development Facility Secretariat under the Ministry of Local Government and Rural Development to assist in development activities during the year.

Procurement and stores irregularity

Inability to implement Developmental Project: GH¢241,851.00 731. The Ga Central Municipal Assembly approved a Work Plan and Budget for the utilization grant of FOAT VI2012 (DDF) of its 2015 Allocation to construct a market at Abease and a Municipal Library at GH¢141,851.00 and GH¢100,000.00 respectively. 732. Our review of available records indicated that though funds were made available, management of the Ga Central Municipal Assembly could not construct the buildings because it had no access to any plot of land.

733. We attributed this poor spatial development planning to the failure of the Ga South and Accra Metropolitan Assemblies to make the provision of land which is

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 150 under their jurisdiction to the Ga Central Municipal Assembly for these utility services.

734. We urged management to put in every effort to secure land for these development projects so as not to be disqualified for such laudable grants in future.

NORTHERN REGION

Introduction 735. During the year the 26 Assemblies in the Northern Region were resourced with a total amount of GH¢10,547,251.00 by the District Development Facility Secretariat under the Ministry of Local Government and Rural Development to assist in development activities

UPPER EAST REGION

Introduction 736. During the year the District Development Facility Secretariat under the Ministry of Local Government and Rural Development supported the 13 Assemblies in the Upper East Region with a total amount of GH¢6,362,063.00 to assist in development activities.

Cash irregularities Unsupported payment vouchers: GH¢45,338.30 737. We noted that contrary to Part IX, Sections 7 and 13 of the Financial Memoranda for Assemblies, the Garu-Tempane District Assembly failed to acquit a payment of GH¢45,338.30 with the relevant receipts and other statements of account. We attributed the circumstance to failure on the part of the District Finance Officer and Internal Auditor to adequately discharge their responsibilities in accounting for government funds.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 151 738. In the absence of the relevant supporting documents, we could not authenticate the validity of the payment; a situation which holds a potential risk of loss of funds to the Assembly.

739. We recommended that the Coordinating Director, Finance Officer and the Internal Auditor should justify the expenditure. Contract irregularities

Failure to complete contracts within stipulated period: GH¢139,317.90 740. The Garu-Tempane District Assembly awarded from its District Development Facility two contracts in September 2013 and May 2014 totalling GH¢139,317.90 to two contractors to be completed between three to six months.

741. We however noted that the two projects were still on-going having delayed for periods ranging between 18 to 26 months due to inadequate inflow of funds as explained by management. The situation could lead to avoidable cost overruns.

742. We recommended to management of the Assembly to ensure that these contracts were completed without further delay.

UPPER WEST REGION

Introduction 743. The 11 Assemblies in the Upper West Region were resourced with a total amount of GH¢4,471,082.00 by the District Development Facility Secretariat under the Ministry of Local Government and Rural Development to assist in development activities during the year.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 152 Cash irregularities

Un-acquitted payment vouchers: GH¢74,567.87 744. The Jirapa District Assembly failed to obtain official disbursement receipts to acquit five payments with a total value of GH¢74,567.87 thereby violating Part II, Section 39(2c) of LI. 1802 which enjoins heads of accounts section to ensure that transactions paid for are due and payable.

745. This financial indiscipline can lead to payment to wrong persons hence resulting in the loss of funds. We recommended that failure by the beneficiaries to authenticate the payments, the amount should be recovered from the District Cordinating Director and Finance Officer for negligence.

Contract irregularities

Under deduction of Retention: GH¢5,701.58 746. Section 72 of Part IX of the Financial Memoranda for Assemblies provide that every contract shall provide for at least 10% of the sum payable to a contractor to be retained and shall specify the period after the completion of the contract for which such sum shall be retained.

747. The Sissala East District Assembly however retained GH¢13,435.37 representing 7% on two completed contracts with a total value of GH¢191,369.58 instead of GH¢19,136.95 leading to an under retention of GH¢5,701.58. Details are provided below:

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 153 Contract Contract Supposed Applied Difference sum GH¢ Retention Retention GH¢ GH¢ GH¢ Const of GNFS Office, 130,201.64 13,020.16 7,874.64 5,145.52 Tumu Rehab of Boreholes, 61,167.94 6,116.79 5,560.73 556.06 District wide Total ¢ 191,369.58 19,136.95 13,435.37 5,701.58

748. The lapse was caused by the District Engineer and District Finance Officer and could lead to additional cost to the Assembly should any defects identified during the Defects Liability Period cost more than the retained amount.

749. We advised management of the Assembly to always comply with the retention value of 10% on any contract sum as specified in the regulation.

Abandoned project: GH¢181,082.30 750. Our audit of the accounts of Sissala West District Assembly disclosed that four (4) projects involving Teachers Quarters and an Office block which were awarded in 2013 at a total cost of GH¢305,137.44 have been abandoned by both contractors and Assembly. The projects which are 60% to 70% completed had the Assembly spending GH¢181,082.30 representing 59.3% of the total contract sum on them. We noted however, that seven (7) contracts which were awarded in year 2014 by the Assembly had been completed, in use, and fully paid for.

751. We advised management that in order to prevent cost overruns arising from increases in building materials over time, ongoing projects should be completed before new ones are undertaken.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 154 VOLTA REGION Introduction 752. During the year the District Development Facility Secretariat under the Ministry of Local Government and Rural Development supported the 25 Assemblies in the Volta Region with a total amount of GH¢8,196,313.00 to assist in development activities.

Cash irregularity

Unsubstantiated payment: GH¢190,976.21 753. Our audits disclosed that contrary to Part IX, Sections 7, 13 and 14 of the Financial Memoranda for District Assemblies, three (3) Assemblies failed to substantiate total payments of GH¢190,976.21 detailed below with the relevant documents, thus making it difficult to validate the propriety of the transactions.

No. Name of Institution Unreceipted PVs Unsupported PVs 1. Nkwanta North District 39,137.72 2. Hohoe Municipal 1,000.00 3. South Tongu District 150,838.49 Total 39,137.72 151,838.49

754. We recommended that in the absence of the relevant documents to authenticate the payments, the amounts should be recovered from the Coordinating Directors and Finance Officers for negligence in the administration of finances.

Completed projects not commissioned for use: GH¢396,000.00 755. Financial Administration Regulation 39(1) stipulates, “A head of department shall ensure that moneys are utilised in a manner that secures both optimum value for money and the intention of Parliament”

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 155 756. We noted that nine months after the completion of a District Magistrate Court and Police Headquarters in March 2015 at a total cost of GH¢396,000.00, the two projects had still not been handed over to the Agotime-Ziope Assembly for commissioning and use by beneficiaries.

757. We attributed managements’ inaction to insist on the handing overs as the cause of the anomaly which could lead to the projects deteriorating with a reciprocal high cost of remedy.

758. We urged management to ensure that the official handing over and commissioning of the projects are done without further delay to serve the intended purposes and avert any damages due to non-utilisation.

Payment for contract works without bills of quantities: GH¢63,170.07 759. Contrary to Section 16(1a) of Financial Administration Act 2003, (Act 654) and Regulation (6) of FAR 2004 , management of Agotime-Ziope District Assembly paid GH¢63,170.07 from the DDF to Winnermerf (GH) Ltd via P.V. No. 0336644 of 22/12/15 for the construction of 2No. 900mm pipe culverts and a car park at the District Police Headquarters and Magistrate Court without attaching Bills of Quantities to the payment voucher to correspond with the amount on the interim payment certificates and to indicate which stage of the projects had been completed at the time of payment.

760. The non-attachment of bills of quantities to the payment voucher was a deliberate practice which compromises transparency and is a recipe for overpayment, payment for unexecuted contracts and misappropriation of public funds.

761. In the absence of the bills of quantity we were unable to authenticate whether the amount paid was commensurate to the work done and recommended that the District Engineer, Cordinating Director and Finance Officers are held liable to account for the payment.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 156 Failure to produce distribution list for items procured and distributed: GH¢50,400.00 762. Store Regulation 0603 requires among others that departmental instructions should provide for an adequate system of record-keeping by the officers using supplies so that comparison may be made between issues made and the work done.

763. We noted from the Biakoye District Assembly that management purchased from three suppliers 360 dual desks valued at GH¢50,400.00 but failed to take them on ledger charge nor provided a distribution list to beneficiary schools.

764. Under the circumstance, we could not trail the transactions to authenticate the procurement and distribution of the desks.

765. We recommended that the necessary store documentations and distribution lists for the dual desks be made available for our verification, failure of which the amount should be recovered from the Coordinating Director, Finance Officer and the Procurement team.

Contract not fully/properly executed: GH¢10,170.00 766. Part II, Section 45 of LI 1802 states that, if any expenditure is made in excess of the amounts actually due, the overpayment shall be recovered immediately and paid back into the account from which it was originally paid and the officer concerned shall report the circumstances immediately to the head of department or the appropriate authority.

767. Our project inspection at the Krachi Nchumuru District Assembly revealed that management had fully paid the project cost and retention amount on a contract for the construction of a 3 Unit Classroom block valued GH¢124,902.00 but the project fell short of some of the demands on the bill of quantities.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 157 768. We noted that the contractor, Messrs. Hikmalah Ventures failed to provide items including electrical installations etc. worth GH¢10,170.00. Generally, in our opinion the contractor performed poorly in the execution of the project. Painting works costing GH¢4,806.00 had been abandoned after the first coat. Additionally, doors were found warped with some falling apart from the frames and windows poorly fitted.

769. We therefore attributed the situation which could result in additional cost to the Assembly to poor supervision by the Engineer and Monitoring team.

770. We recommended that, the unfinished works valued GH¢10,170.00 should be recovered from the contractor. Meanwhile the District Engineer and the entire members of the Monitoring team should be held liable to bear the cost of any remedial works for their negligence.

WESTERN REGION

Introduction 771. The 22 Assemblies in the Western Region were resourced with a total amount of GH¢7,631,167.00 by the District Development Facility Secretariat under the Ministry of Local Government and Rural Development to assist in development activities during the year.

Procurement from non VAT registered companies: GH¢16,200.00 772. Management of the Nzema East Municipal Assembly procured goods valued at GH¢16,200.00 from Non VAT registered agents without any justification in violation of Part VI, Section 183(4) of LI 1802 and Part IV, Section 30(2) of Act 654.

773. We recommended strict compliance with the existing public financial management laws and any future violations should result in appropriate sanctioning

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 158 of the Coordinating Director, Finance and Procurement Officers for financial indiscipline.

Unretired imprest: GH¢69,565.00 774. Three to ten months after management of the Nzema East Municipal Assembly had made three payments totaling GH¢69,565.00 as imprests to the Municipal Town & Country Planning Officer of the Assembly to undertake street naming & property address activities, he had failed to account for the amount.

775. The practice, in our opinion could result in the diversion of funds, as such we recommended to management that failure by the officer to retire the amount, it should be treated as an advance to him and recovered accordingly.

Overpayment of contract: GH¢2,875.79 776. Due to the Engineer’s failure to keep track of interim payment certificates, the Shama District Assembly overpaid the contractor engaged in the construction of 3- Unit classroom block with offices and water closet at Asemasa by an amount of GH¢2,875.79 contrary to Part II, Section 45 of the Financial Administration Regulations, 2004.

777. We noted that whilst the contract sum was GH¢126,164.94 the Assembly paid GH¢129,040.73 resulting in the overpayment.

778. We urged management to immediately recover the overpayment from the contractor and advised the Engineer to be cautious in subsequent contract payments.

Unapproved expenditure from DDF Account: GH¢8,566.40 779. We noted that the Shama District Assembly misapplied an amount of GH¢8,566.40 from the DDF to procure stationery and a processor for satellite imaging instead of the designated consultancy services.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 159 780. Management therefore disregarded the directive of the Local Government Service Secretariat Circular referenced dated LGSS/DA/10/01 of 28th February, 2014, headed Utilization of Capacity Support Fund (CSF) on Street Naming and Property Addressing (SNPA) Projects which directs that, under no circumstance should CSF be used in procuring goods and works but rather the fund should only be used to pay for consultancy services.

781. We urged management to seek retrospective approval and authorization from the Director of the Local Government Service Secretariat or the amount refunded into the DDF Account.

Report of Auditor-General on the mgt. and utilization of DACF & other statutory Funds – 31 Dec. 2015 160 APPENDIX A

DISTRICT ASSEMBLIES COMMON FUND

GROSS REGION DEDUCTIONS NET RELEASES DED. AS % ALLOCATION

ASHANTI REGION 57,382,178.31 16,876,796.10 40,505,382.21 29.41

BRONG AHAFO REGION 49,134,408.67 12,531,154.16 36,603,254.51 25.50

CENTRAL REGION 38,537,171.08 10,835,389.43 27,701,781.65 28.12

EASTERN REGION 46,223,334.63 15,330,730.65 30,892,603.98 33.17

GREATER ACCRA REGION 38,775,421.59 10,630,907.99 28,144,513.60 27.42

NOTHERN REGION 50,581,787.89 13,103,721.21 37,478,066.68 25.91

UPPER EAST REGION 24,172,778.52 7,820,416.15 16,352,362.37 32.35

UPPER WEST REGION 19,358,627.44 5,452,941.33 13,905,686.11 28.17

VOLTA REGION 47,601,486.13 14,144,846.75 33,456,639.38 29.72

WESTERN REGION 44,443,937.39 8,255,486.74 36,188,450.65 18.58

TOTAL 416,211,131.65 114,982,390.51 301,228,741.14 27.63 APPENDIX A

DISTRICT ASSEMBLIES COMMON FUND

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL SEKONDI TAKORADI METRO. 590,735.74 688,122.25 709,634.84 685,645.33 2,674,138.16 SHAMA 373,038.83 458,292.51 472,619.99 456,642.87 1,760,594.20 NZEMA EAST MUNICIPAL 352,228.28 463,004.80 477,479.59 461,338.19 1,754,050.86 ELLEMBELLE 400,003.52 422,061.80 435,256.61 420,542.57 1,677,864.50 TARKWA NSUEM MUNICIPAL 609,730.06 613,698.85 632,884.75 611,489.81 2,467,803.47 PRESTEA-HUNI VALLEY 388,718.90 604,070.03 622,954.92 601,895.66 2,217,639.51 AHANTA WEST 348,206.10 456,218.64 470,481.29 454,576.46 1,729,482.49 AMENFI WEST 348,206.10 457,568.59 471,873.44 455,921.55 1,733,569.68 AMENFI CENTRAL 346,564.39 491,454.67 506,818.89 489,685.66 1,834,523.61 AMENFI EAST 432,051.43 443,602.42 457,470.64 442,005.65 1,775,130.14 SEFWI WIAWSO MUNICIPAL 575,966.25 564,479.34 582,126.51 562,447.47 2,285,019.57 SEFWI AKONTOMBRA 381,060.13 450,076.17 464,146.78 448,456.10 1,743,739.18 WASSA EAST 639,198.70 602,000.94 620,821.14 599,834.01 2,461,854.79 MPOHOR 618,102.77 630,362.85 650,069.72 628,093.83 2,526,629.17 BIB/ ANW /BEK 375,294.27 429,622.30 443,053.47 428,075.86 1,676,045.90 JUABOSO 459,903.87 499,257.97 514,866.14 497,460.87 1,971,488.85 BODI 364,951.51 524,408.93 540,803.39 522,521.30 1,952,685.13 BIA WEST 365,510.18 436,320.25 449,960.82 434,749.70 1,686,540.95 BIA EAST 369,770.96 778,131.73 802,458.26 775,330.82 2,725,691.77 AOWIN 364,376.92 426,468.01 439,800.57 424,932.92 1,655,578.42 SUAMAN 364,787.34 604,365.61 623,259.74 602,190.17 2,194,602.86 JOMORO 423,806.72 500,537.00 516,185.16 498,735.30 1,939,264.18 TOTAL 9,492,212.97 11,544,125.66 11,905,026.66 11,502,572.10 44,443,937.39

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL CAPE COAST METRO. 344,825.55 581,032.98 599,197.67 578,941.53 2,103,997.73 MFANTSEMAN WEST MUN. 421,672.50 479,979.69 494,985.17 478,251.98 1,874,889.34 EKUMFI 338,109.60 553,675.84 570,985.27 551,682.87 2,014,453.58 KOM/EDI/EGU/ABI MUN. 337,452.92 492,914.76 508,324.63 491,140.50 1,829,832.81 UPP. DENKY. EAST MUN. 341,310.93 421,345.48 434,517.89 419,828.83 1,617,003.13 UPPER DENKYIRA WEST 416,772.75 437,703.69 451,387.51 436,128.16 1,741,992.11 EFFUTU MUNICIPAL 371,519.08 569,676.41 587,486.06 567,625.84 2,096,307.39 AWUTU SENYA 356,461.87 563,114.25 580,718.75 561,087.30 2,061,382.17 AWUTU SENYA EAST MUNI< 337,938.96 904,270.52 932,540.49 901,015.56 3,075,765.53 AGONA WEST MUN. 336,878.32 487,965.57 503,220.71 486,209.12 1,814,273.72 AGONA EAST 344,922.69 559,193.56 576,675.49 557,180.72 2,037,972.46 ASSIN NORTH MUN. 384,285.69 488,678.60 503,956.03 486,919.58 1,863,839.90 ASSIN SOUTH 342,049.70 467,085.23 481,687.60 465,403.94 1,756,226.47 TWIFO ATI-MORKWA 336,566.40 420,572.97 433,721.24 419,059.10 1,609,919.71 TWIFO HEMANG/LOWER/DEN 339,796.46 438,842.84 452,562.27 437,263.21 1,668,464.78 AJU/ENY /ESSIAM 337,001.45 460,414.52 474,808.34 458,757.24 1,730,981.55 GOMOA 361,309.14 547,116.72 564,221.09 545,147.35 2,017,794.30 GOMOA EAST 422,821.69 594,055.19 612,626.98 591,916.86 2,221,420.72 ASI/ODO/BRAKWA 350,750.75 445,032.53 458,945.47 443,430.62 1,698,159.37 ABURA/ ASEBU/KWAN. 337,255.91 450,921.49 465,018.53 449,298.38 1,702,494.31 TOTAL 7,159,702.36 10,363,592.84 10,687,587.19 10,326,288.69 38,537,171.08 METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL ACCRA METRO. 1,000,906.89 1,415,667.83 1,459,925.49 1,410,572.07 5,287,072.28 LA DADE-KOTOPON MUN. 590,275.83 741,934.43 765,129.33 739,263.80 2,836,603.39 LEDZEKUKU-KROWOR MUN. 498,799.36 606,286.92 625,241.11 604,104.57 2,334,431.96 TEMA METRO. 508,870.07 633,563.22 653,370.14 631,282.68 2,427,086.11 KPONE AKATAMANSO 496,288.09 666,893.89 687,742.82 664,493.38 2,515,418.18 ASHAIMAN MUNICIPAL 504,907.05 675,445.19 696,561.45 673,013.89 2,549,927.58 ADENTA MUNICIPAL 378,106.94 535,234.56 551,967.46 533,307.96 1,998,616.92 GA WEST MUNICIPAL 531,156.86 554,614.54 571,953.31 552,618.18 2,210,342.89 GA SOUTH MUN. 515,660.24 564,184.63 581,822.59 562,153.82 2,223,821.28 GA CENTRAL MUNICIPAL 516,316.92 973,641.18 1,004,079.87 970,136.52 3,464,174.49 GA EAST MUNICIPAL 410,998.58 554,864.60 572,211.19 552,867.34 2,090,941.71 LA NKANTANANG MADINA 411,607.91 482,342.21 497,421.55 480,606.00 1,871,977.67 ADA EAST 338,520.03 443,637.72 457,507.05 442,040.83 1,681,705.63 ADAWEST 338,602.11 457,796.37 472,108.34 456,148.51 1,724,655.33 SHAI/OSUDOKU 339,290.57 425,870.14 439,184.01 424,337.20 1,628,681.92 NINGO/PRAMPRAM 339,915.48 525,173.60 541,591.96 523,283.21 1,929,964.25 TOTAL 7,720,222.93 10,257,151.03 10,577,817.67 10,220,229.96 38,775,421.59

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL NEW JUABEN MUNICIPAL 379,655.34 599,131.64 617,862.13 596,975.04 2,193,624.15 NSAWAM/ADOAGYIRI 338,602.11 427,525.50 440,891.12 425,986.61 1,633,005.34 AKUAPEM SOUTH 338,766.28 427,194.43 440,549.70 425,656.73 1,632,167.14 WEST AKIM MUNICIPAL 385,201.23 453,895.78 468,085.80 452,261.96 1,759,444.77 UPPER WEST AKIM 385,710.86 450,424.07 464,505.56 448,802.75 1,749,443.24 EAST AKIM MUNICIPAL 339,915.48 426,111.11 439,432.51 424,577.30 1,630,036.40 ATIWA 338,273.77 424,345.39 437,611.59 422,817.94 1,623,048.69 BIRIM CENTRAL MUNICIPAL 336,851.75 434,047.61 447,617.13 432,485.24 1,651,001.73 BIRIM SOUTH 355,414.54 470,909.16 485,631.07 469,214.10 1,781,168.87 BIRIM NORTH 331,577.25 425,097.64 438,387.35 423,567.48 1,618,629.72 AKYEMANSA 492,922.59 512,942.32 528,978.30 511,095.96 2,045,939.17 KWAHU WEST MUNICIPAL 426,884.92 534,241.34 550,943.19 532,318.32 2,044,387.77 KWAHU EAST 447,036.87 503,451.56 519,190.84 501,639.37 1,971,318.64 KWAHU SOUTH 331,541.13 453,520.95 467,699.26 451,888.48 1,704,649.82 KWAHU AFRAM PLAINS NORTH 364,803.19 512,697.70 528,726.04 510,852.22 1,917,079.15 KWAHU AFRAM PLAINS SOl 364,983.08 542,243.84 559,195.87 540,292.01 2,006,714.80 AKUAPIM NORTH MUNICIPAL 335,236.61 559,475.26 576,965.99 557,461.40 2,029,139.26 YILO KROBO MUNICIPAL 331,495.98 431,939.81 445,443.43 430,385.02 1,639,264.24 MANYA KROBO MUNICIPAL 331,497.63 427,635.86 441,004.93 426,096.57 1,626,234.99 UPPER MANYA KROBO 433,164.45 444,851.65 458,758.94 443,250.39 1,780,025.43 SUHUM MUNICIPAL 335,630.62 450,622.95 464,710.66 449,000.92 1,699,965.15 AYENSUANO 335,630.62 464,186.87 478,698.63 462,516.01 1,741,032.13 KWAEBIBIRIM 331,542.77 442,902.80 456,749.16 441,308.56 1,672,503.29 DENKYEMBOUR 330,393.58 484,717.20 499,870.79 482,972.44 1,797,954.01 ASUOGYAMAN 333,923.25 419,910.83 433,038.39 418,399.34 1,605,271.81 FANTEAKWA 335,786.59 440,768.42 454,548.05 439,181.86 1,670,284.92 TOTAL 9,392,442.49 12,164,791.69 12,545,096.43 12,121,004.02 46,223,334.63

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL HO MUNICIPAL 390,511.72 586,550.87 604,888.05 584,439.55 2,166,390.19 HO WEST 335,318.70 422,338.69 435,542.16 420,818.47 1,614,018.02 AGORTIME-ZIOPE 337,781.26 423,111.20 436,338.81 421,588.19 1,618,819.46 ADAKLU 335,564.95 446,440.04 460,396.98 444,833.06 1,687,235.03 KETA MUNICIPAL 505,071.23 725,932.57 748,627.21 723,319.54 2,702,950.55 HOHOE MUNICIPAL 500,228.19 715,779.66 738,156.90 713,203.19 2,667,367.94 AFADZETO 330,601.57 487,330.27 502,565.55 485,576.10 1,806,073.49 KETE KRACHI 368,991.09 486,808.18 502,027.15 485,055.90 1,842,882.32 KRACHI NTSUMURU 345,646.85 552,845.70 570,129.17 550,855.71 2,019,477.43 KRACHI EAST 412,807.28 544,933.07 561,969.17 542,971.56 2,062,681.08 KETU SOUTH MUNICIPAL 407,840.44 522,269.33 538,596.91 520,389.41 1,989,096.09 KETU NORTH 336,549.98 489,764.20 505,075.57 488,001.27 1,819,391.02 JASIKAN 334,161.30 426,973.72 440,322.08 425,436.81 1,626,893.91 BIAKOYE 399,755.71 519,228.26 535,460.76 517,359.27 1,971,804.00 SOUTH TONGU 344,101.83 443,702.90 457,574.27 442,105.78 1,687,484.78 CENTRAL TONGU 341,885.53 505,911.44 521,727.61 504,090.39 1,873,614.97 NORTH TONGU 341,885.53 496,697.67 512,225.81 494,909.79 1,845,718.80 KPANDO MUNICIPAL 340,490.08 424,656.21 437,932.12 423,127.64 1,626,206.05 NORTH DAYI 339,729.72 485,326.41 500,499.04 483,579.46 1,809,134.63 SOUTH DAYI 339,831.75 443,417.00 457,279.44 441,820.91 1,682,349.10 AKATSI S0UTH 337,617.09 498,264.75 513,841.87 496,471.23 1,846,194.94 AKATSI NORTH 339,094.63 633,783.94 653,597.76 631,502.61 2,257,978.94 NKWANTA 363,352.42 480,553.08 495,576.49 478,823.31 1,818,305.30 NKWANTA NORTH 364,376.92 509,447.19 525,373.91 507,613.41 1,906,811.43 KADJEBI 335,482.87 435,029.82 448,630.05 433,463.92 1,652,606.66 TOTAL 9,128,678.64 12,707,096.17 13,104,354.84 12,661,356.48 47,601,486.13

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL KUMASI METRO. 992,494.10 1,229,825.56 1,268,273.28 1,225,398.75 4,715,991.69 ASOKORE MAMPONG MUN. 443,589.29 761,467.73 785,273.30 758,726.79 2,749,057.11 BEKWAI MUNICIPAL 336,303.72 456,099.53 470,358.45 454,457.78 1,717,219.48 SOSOME FREHO 389,987.55 452,797.40 466,953.09 451,167.54 1,760,905.58 AMANSIE CENTRAL 346,097.15 446,948.45 460,921.28 445,339.64 1,699,306.52 OBUASI MUNICIPAL 465,090.46 509,631.59 525,564.07 507,797.15 2,008,083.27 EJISU JUABEN MUNICIPAL 334,087.42 453,900.98 468,091.17 452,267.15 1,708,346.72 MAMPONG MUNICIPAL 350,586.58 454,521.89 468,731.49 452,885.82 1,726,725.78 SEKYERE CENTRAL 459,801.15 494,181.52 509,630.99 492,402.69 1,956,016.35 OFFINSO MUNICIPAL 337,863.35 438,547.74 452,257.95 436,969.17 1,665,638.21 OFFINSO NORTH 360,849.80 463,678.80 478,174.67 462,009.77 1,764,713.04 ASANTE AKIM CENTRAL MUN. 398,606.51 444,630.94 458,531.32 443,030.47 1,744,799.24 ASANTE AKIM NORTH MUN 453,311.99 559,917.75 577,422.31 557,902.30 2,148,554.35 ASANTE AKIM SOUTH 332,035.28 465,490.95 480,043.47 463,815.39 1,741,385.09 AMANSIE WEST 329,457.89 448,272.74 462,286.98 446,659.16 1,686,676.77 ADANSISOUTH 347,298.42 465,747.44 480,307.99 464,070.97 1,757,424.82 ADANSI NORTH 334,662.02 451,583.47 465,701.21 449,957.98 1,701,904.68 SEKYERE EAST 340,325.91 421,345.48 434,517.89 419,828.83 1,616,018.11 SEKYERE KUMAWU 341,474.20 427,525.50 440,891.12 425,986.61 1,635,877.43 SEKYERE AFRAM PLAINS 415,187.75 536,271.34 553,036.65 534,341.01 2,038,836.75 ATWIMA NWABIAGYA 350,686.09 528,548.88 545,072.77 526,646.35 1,950,954.09 ATWIMA MPONUA 332,199.46 491,037.43 506,388.61 489,269.92 1,818,895.42 AHAFO ANO NORTH 341,674.85 511,434.40 527,423.24 509,593.47 1,890,125.96 AHAFO ANO SOUTH 347,020.39 448,261.43 462,275.31 446,647.89 1,704,205.02 BOSOMTWI 339,751.31 451,362.75 465,473.59 449,738.06 1,706,325.71 ATWIMA KWANWOMA 339,647.88 451,362.75 465,473.59 449,738.06 1,706,222.28 EJU/SEKYEDUMASE MUN. 339,678.25 449,707.39 463,766.48 448,088.65 1,701,240.77 KWABRE EAST 337116.37 451,844.76 465,970.67 450,218.33 1,705,150.13 SEKYERE SOUTH 337,050.70 481,566.96 496,622.07 479,833.54 1,795,073.27 AFIGYA KWABRE 355,364.45 497,129.34 512,670.97 495,339.91 1,860,504.67 TOTAL 11,529,300.29 15,144,642.89 15,618,105.98 15,090,129.15 57,382,178.31 METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL SUNYANI MUNICIPAL 361,093.50 518,349.84 534,554.88 516,484.02 1,930,482.24 SUNYANI WEST 339,751.31 420,241.90 433,379.81 418,729.22 1,612,102.24 DORMAA CENTRAL MUN. 396,075.15 443,968.79 457,848.47 442,370.71 1,740,263.12 DORMAA WEST 417,404.06 585,082.99 603,374.28 582,976.96 2,188,838.29 DORMAA EAST 337,108.16 415,055.09 428,030.85 413,561.08 1,593,755.18 BEREKUM MUNICIPAL 341,475.10 437,838.95 451,526.99 436,262.93 1,667,103.97 ASUNAFO NORTH MUN. 360,598.22 491,212.42 506,569.07 489,444.28 1,847,823.99 ASUNAFO SOUTH 366,994.28 497,230.26 512,775.04 495,440.46 1,872,440.04 TECHIMAN NORTH 329,127.83 449,376.32 463,425.05 447,758.77 1,689,687.97 TECHIMAN NORTH 340,243.82 530,566.84 547,153.81 528,657.04 1,946,621.51 KINTAMPO NORTH MUNICIPAL 342,952.64 444,707.41 458,610.19 443,106.67 1,689,376.91 KINTAMPO SOUTH 357,733.86 439,166.80 452,896.36 437,586.00 1,687,383.02 WENCHI MUNICIPAL 336,796.24 457,550.63 471,854.92 455,903.66 1,722,105.45 TAIN 416,583.21 450,921.32 465,018.36 449,298.21 1,781,821.10 BANDA 336,870.11 519,686.57 535,933.40 517,815.94 1,910,306.02 ATEBUBU AMANTIN 351,135.70 497,923.20 513,489.64 496,130.90 1,858,679.44 PRU 458,643.45 596,903.77 615,564.62 594,755.19 2,265,867.03 NKORANZA SOUTH MUN. 338,677.74 445,734.51 459,669.40 444,130.08 1,688,211.73 NKORANZA NORTH 415,023.58 449,817.75 463,880.28 448,198.61 1,776,920.22 SENE WEST 427,426.68 450,563.42 464,649.26 448,941.59 1,791,580.95 SENE EAST 377,122.17 602,139.88 620,964.43 599,972.46 2,200,198.94 SOUTH 342,435.50 427,525.50 440,891.12 425,986.61 1,636,838.73 JAMAN NORTH 342,599.67 437,016.26 450,678.59 435,443.20 1,665,737.72 TANO SOUTH 459,267.59 598,359.13 617,065.48 596,205.32 2,270,897.52 TANO NORTH 337,001.45 452,506.29 466,652.87 450,877.47 1,707,038.08 ASUTIFI NORTH 357,049.22 449,486.67 463,538.86 447,868.73 1,717,943.48 ASUTIFI SOUTH 336,878.32 441,761.64 455,572.32 440,171.50 1,674,383.78 TOTAL 9,924,068.56 12,950,694.15 13,355,568.35 12,904,077.61 49,134,408.67

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL TAMALE METRO. 443,014.69 665,015.15 685,805.35 662,621.40 2,456,456.59 SAGNERIGU 333,841.16 447,500.24 461,490.32 445,889.44 1,688,721.16 YENDI MUNICIPAL 398,031.91 485,825.19 501,013.41 484,076.44 1,868,946.95 MION 391,547.17 606,606.84 625,571.03 604,423.33 2,228,148.37 WEST GONJA 331,542.77 482,917.82 498,015.16 481,179.54 1,793,655.29 NORTH GONJA 335,482.87 526,950.27 543,424.18 525,053.49 1,930,910.81 CENTRAL GONJA 364,884.70 517,190.79 533,359.59 515,329.14 1,930,764.22 EAST GONJA 395,241.01 566,686.49 584,402.66 564,646.68 2,110,976.84 KPANDAI 406,979.22 497,271.53 512,817.61 495,481.58 1,912,549.94 BOLE 370,615.40 420,021.18 433,152.20 418,509.30 1,642,298.08 SAWLA-TUNA-KALBA 359,780.14 524,243.91 540,633.21 522,356.87 1,947,014.13 NANUMBA NORTH 346,892.73 540,531.73 557,430.23 538,586.06 1,983,440.75 NANUMBA SOUTH 333,923.25 562,603.26 580,191.78 560,578.14 2,037,296.43 WEST MAMPRIJSl 378,413.51 533,031.58 549,695.61 531,112.91 1,992,253.61 MAMPRUGU-MOAGDURI 381,060.48 514,818.40 530,913.03 512,965.29 1,939,757.20 EAST MAMPRUSI 432,918.19 658,504.05 679,090.69 656,133.74 2,426,646.67 BUNKPURUGU/YUNYOO 387,524.99 553,774.65 571,087.16 551,781.31 2,064,168.11 SAVELUGU/NANTON MUN. 340,490.08 501,435.89 517,112.15 499,630.95 1,858,669.07 GUSHEGU 337,124.58 551,592.26 568,836.56 549,606.80 2,007,160.20 KARAGA 333,184.48 515,134.86 531,239.39 513,280.61 1,892,839.34 ZABZUGU 393,763.48 522,248.78 538,575.70 520,368.92 1,974,956.88 TATALE SANGUlI 394,945.50 524,450.97 540,846.74 522,563.18 1,982,806.39 SABOBA 341,146.76 464,512.86 479,034.81 462,840.83 1,747,535.26 CHERIPONI 338,848.37 464,062.70 478,570.58 462,392.29 1,743,873.94 TOLON 340,407.99 444,677.82 458,579.67 443,077.19 1,686,742.67 KUMBUNGU 345,086.86 458,476.40 472,809.63 456,826.10 1,733,198.99 TOTAL 9,556,692.29 13,550,085.62 13,973,698.45 13,501,311.53 50,581,787.89

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL WA MUNICIPAL 368,152.84 608,953.47 627,991.02 606,761.51 2,211,858.84 WA WEST 332,200.23 475,078.16 489,930.41 473,368.10 1,770,576.90 WA EAST 339,042.83 487,251.00 502,483.80 485,497.12 1,814,274.75 LAWRA 331,528.82 420,402.33 433,545.26 418,889.08 1,604,365.49 NANDOM 331,526.19 457,340.85 471,638.58 455,694.64 1,716,200.26 SISSALA EAST 331,523.89 421,235.12 434,404.08 419,718.87 1,606,881.96 SISSALA WEST 339,422.97 419,549.79 432,666.07 418,039.61 1,609,678.44 JIRAPA 336,796.24 446,322.86 460,276.14 444,716.31 1,688,111.55 LAMBUSSIE KARNI 336,632.06 429,733.03 443,167.67 428,186.19 1,637,718.95 NADOWLI KALEO 336,057.47 447,279.52 461,262.71 445,669.52 1,690,269.22 DAFFIAMA-BUSSIE-ISSA 336,057.47 552,450.35 569,721.47 550,461.79 2,008,691.08 TOTAL 3,718,941.01 5,165,596.48 5,327,087.21 5,147,002.74 19,358,627.44

METRO./MUNI./DISTRICT 3RD QTRS 2014 1ST QTR 2015 2ND QTR 2015 3RD QTR 2015 TOTAL BOLGA. MUNICIPAL 371,846.68 636,542.88 656,422.95 634,251.62 2,299,064.13 TALENSI 331,473.00 443,527.36 457,393.24 441,930.87 1,674,324.47 NABDAM 331,496.80 521,071.27 537,361.38 519,195.65 1,909,125.10 BAWKU MUNICIPAL 348,291.48 565,142.66 582,810.56 563,108.40 2,059,353.10 BINDURI 350,979.33 547,215.68 564,323.14 545,245.95 2,007,764.10 PUSIGA 345,889.07 504,555.14 520,328.92 502,738.97 1,873,512.10 GARU-TEMPANE 366,839.48 551,898.57 569,152.43 549,911.99 2,037,802.47 BAWKU WEST 328,321.64 451,425.23 465,538.02 449,800.30 1,695,085.19 KASSENA NANKANA MUN. 335,482.87 448,824.53 462,856.01 447,208.97 1,694,372.38 KASSENA NANKANA WEST 335,400.78 447,610.59 461,604.13 445,999.40 1,690,614.90 BUILSA NORTH 334,990.36 424,656.21 437,932.12 423,127.64 1,620,706.33 BUILSA SOUTH 343,174.27 456,642.55 470,918.45 454,998.85 1,725,734.12 BONGO 338,913.50 510,752.51 526,740.07 508,914.05 1,885,320.13 TOTAL 4,463,099.26 6,509,865.18 6,713,381.42 6,486,432.66 24,172,778.52

G/TOTAL 82,085,360.80 110,357,641.71 113,807,724.20 109,960,404.94 416,211,131.65 APPENDIX B DISTRICT ASSEMBLIES' COMMON FUND

NATIONAL SUMMARY OF IRREGULARITIES

Ashanti Brong Ahafo Central Eastern Greater Accra Northern Upper East Upper West IRREGULARITIES Volta region Western region Total Region Region region region region region Region region No. of MMDAs Cash irregularities GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Unsubstantiated payments 852,569.56 1,073,482.91 415,550.08 1,755,249.03 491,906.83 331,425.32 590,168.24 22,964.70 440,207.68 559,929.02 6,533,453.37 96

DACF deductions for items/services not supplied/ 2,878,979.76 5,835,630.97 1,504,145.48 1,017,845.33 1,839,542.62 13,076,144.16 39 deductions for unspecified purchases Unretired imprest 47,020.00 38,798.00 41,455.00 59,553.05 116,927.00 303,753.05 9

Expenditure on the late DCE's funeral 59,550.00 59,550.00 1

Unrecovered Advances/Loans 12,330.00 21,614.24 129,281.10 6,800.00 170,025.34 5

Unaccounted funds 142,108.08 25,164.26 131,089.54 7,215.42 95,136.88 400,714.18 10

Misapplication of funds 5,400.00 600,200.77 1,077.11 12,480.00 619,157.88 7

Misappropriation of funds 15,750.00 1,700.00 17,450.00 3

Unauthorised withdrawal from PWD 51,000.00 51,000.00 1

Seemingly unviable projects and endemic liability 663,521.50 663,521.50 1

Unpresented payment vouchers 564,001.02 157,714.40 84,167.00 12,207.55 52,133.00 870,222.97 12

Failure to allocate funds to substructure 143,652.85 143,652.85 4

Unbudgeted expenditure/unjustified budget 713,878.00 234,363.30 574,822.34 1,523,063.64 6 overrun Unsubstantiated scholarship or financial assistance 220,724.95 233,809.26 20,400.00 69,346.00 544,280.21 19 to students Financial assistance to staff without policy 7,500.00 12,160.00 19,660.00 2 guidelines

Uneconomical payment of rent advance 42,000.00 42,000.00 1

Payment for undisclosed liabilities/ payment 150,000.00 245,295.68 395,295.68 4 without justification

Overpayment of repair works 1,616.00 1,616.00 1

Excessive cash payment 40,970.80 40,970.80 1

Non-prudent expenditure 226,583.26 226,583.26 2

Sub-total 4,601,928.90 9,188,935.71 629,545.44 4,010,498.24 820,021.23 1,615,805.19 702,046.21 22,964.70 3,063,095.57 1,047,273.70 25,702,114.89 Ashanti Brong Ahafo Central Eastern Greater Accra Northern Upper East Upper West IRREGULARITIES Volta region Western region Total Region Region region region region region Region region No. of MMDAs Contract irregularities GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Abandoned projects 37,144.70 3,170,665.08 104,112.23 2,210,532.31 390,519.17 3,260,199.73 9,173,173.22 20

Overpayment to contractors 111,572.41 5,087.90 1,516.94 118,177.25 3

Payment for works done without performance 192,454.50 83,160.13 293,000.00 64,506.89 355,930.63 989,052.15 14 certificates/ monitoring report/inspection report Unjustifiable payment of contingency 3,970.00 248,894.82 30,500.00 1,397,305.28 34,963.00 180,012.66 1,895,645.76 11 amount/Unapproved variations

Completed projects not in use 156,402.02 146,499.55 922,728.75 1,225,630.32 3

Indebtedness to Contractors 1,552,724.79 1,552,724.79 2

Payment of judgement debt 6,131.00 12,340.00 18,471.00 3

Award of in house works to the DWD 101,570.00 101,570.00 1

Use of unapproved material for works 5,000.00 5,000.00 1

Absence of contract documents on projects executed 187,458.20 187,458.20 2

Failure to maintain retention deposit account/ 39,879.33 8,858.33 48,737.66 2 Retention paid not recorded in contract register

Payment of retention before Defect Liability Period 88,850.06 88,850.06 1

Payments without evidence of work done or service 107,329.85 107,329.85 1 rendered

Delayed projects/poorly executed projects 230,501.58 1,942,947.21 386,253.57 2,559,702.36 4

Payment of advance mobilisation without guarantee 15,000.00 15,000.00 1

Mobilisation advance paid without contract 13,027.85 13,027.85 1 execution Use of DACF to pay contractor engaged on a 3,871,404.45 3,871,404.45 1 national assignments

Absence of permit for dam construction 2,400.00 2,400.00 1

Failure to pre-qualify suppliers and service 445,145.67 445,145.67 1 providers Unfulfilled agreement 65,000.00 65,000.00 1

Sub-total 389,971.22 5,406,933.13 435,341.91 2,595,446.30 5,273,797.63 - 1,977,910.21 685,036.11 3,930,259.03 1,788,805.05 22,483,500.59 Ashanti Brong Ahafo Central Eastern Greater Accra Northern Upper East Upper West IRREGULARITIES Volta region Western region Total Region Region region region region region Region region No. of MMDAs Procurement & store iregularities GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Uncompetitive procurement 243,152.02 205,398.00 81,317.00 84,112.68 8,329.00 87,730.00 73,514.00 783,552.70 22

Items/ service paid for but not delivered/rendered 27,582.00 21,380.00 190,615.58 11,000.00 51,800.00 302,377.58 11

Stores/fuel unaccounted 276,614.11 219,344.82 691,613.52 12,288.00 218,877.13 79,300.40 13,885.00 42,514.00 1,554,436.98 40

Repairs and maintenance without work order and 24,110.00 240,529.47 39,128.90 22,882.59 326,650.96 14 certification

Unauthorised issue of store items 345,772.65 345,772.65 2

Acquisition of arms without documentation 9,100.00 9,100.00 1

Purchase of plots of land without tittle deeds 17,762.00 124,000.00 20,000.00 30,000.00 191,762.00 6

Procurement form non-VAT entities 230,276.67 114,129.83 67,564.25 187,329.30 11,905.00 51,427.00 662,632.05 18

Unaccounted distributed items to communities 204,637.00 155,123.00 49,814.50 409,574.50 6

Procurement of goods outside the procurement plan 21,166.50 35,560.00 56,726.50 2

Payment for rent without any tenancy agreement 25,400.00 25,400.00 1

Payment of repair of private vehicles 3,553.50 3,553.50 1

Assets register not updated 49,843.00 49,843.00 1

Sub-total 804,486.80 674,869.82 21,166.50 1,992,944.05 41,241.50 381,554.06 314,087.60 99,635.00 283,323.09 108,074.00 4,721,382.42

Tax irregularities

Loss of VAT revenue 47,543.71 47,543.71 5

Failure to deduct WHT 19,272.90 21,766.98 8,429.01 23,463.28 1,520.00 3,855.90 1,579.20 50,500.15 1,159.10 131,546.52 29

Failure to remit WHT 7,935.43 10,008.18 27,544.79 18,306.90 31,026.24 23,069.13 117,890.67 19

VAT payment without VAT invoices 7,350.00 1,911.61 520.15 4,602.58 14,384.34 7

Sub-total 27,208.33 79,318.87 15,779.01 51,008.07 1,520.00 24,074.41 2,099.35 - 81,526.39 28,830.81 311,365.24

Grand total 5,823,595.25 15,350,057.53 1,101,832.86 8,649,896.66 6,136,580.36 2,021,433.66 2,996,143.37 807,635.81 7,358,204.08 2,972,983.56 53,218,363.14 APPENDIX C

ASHANTI REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CASH IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES TAX IRREGULARITIES

DACF deductions for items Unsubstantiated payments Unaccounted stores/fuels Tittle /services not supplied Seemingly Payment for Purchases Unjustifiable Items deeds on No. MMDAs Use of unviable works done Completed Acquisition of from non- Failure DACF Unretired Unrecovered Unaccounted Misapplication Abandoned payment of Uncompetitive purchased land Failure to photocopy Outstanding and without projects not in Stores Fuel procured arms without VAT to remit Unsupported deductions for imprest rent advances funds of funds projects contingency procurement but not acquired deduct WHT receipts to balance due endemic performance use unaccounted but not documentation registered WHT payments items /services amount delivered not support from ADACF liability certificate for accounted for entities not supplied obtained payment GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Adansi North 15,270.00

2 Adansi South 10,218.00

3 Ahafo Ano North 49,892.50 47,632.40 33,620.00 1,518.30

4 Ahafo Ano South 47,020.00 64,379.50 23,622.00 31,689.60

5 Amansie Central 6,520.00

6 Asante Akim Central 25,564.04 668,981.04 12,944.02 9,745.75 10,000.00

7 Asante Akim North 48,227.32 7,762.00 7,762.00

8 Asante Akim South 35,275.00 156,402.02 8,351.00 79,220.07 872.90

9 Asokore Mampong 320,451.66 9,100.00

10 Atwima Mponua 6,000.00 62,147.00

11 Atwima Nkwanwoma 16,102.00 1,624.00

12 Atwima Nwabiagya 24,000.00 22,000.00 21,062.00 23,600.00

13 Bekwai 17,218.00

14 Ejisu Juaben 7,445.06 663,521.50 36,830.00 34,998.00

15 Ejura Sekyedumasi 517,500.00 5,400.00

16 Kumasi 91,324.00 39,980.00 19,000.00

17 Kwabre East 22,320.00 165,600.00 16,325.00

18 Mampong 129,164.06 37,144.70 3,989.45

19 Obuasi 238,193.45 147,863.36 2,723.64

20 Offinso North 225,740.06 548,001.00 6,434.00 12,092.00

21 Offinso South 5,400.00 651,001.00 2,800.00 1,540.00

22 Sekyere Central 23,600.00 12,330.00 5,211.79

23 Sekyere East 3,277.50 8,600.00

24 Sekyere Kumawu 3,142.00 3,970.00 4,580.00

25 Sekyere South 104,600.01 86,431.30 9,728.25

Total 812,589.56 39,980.00 2,871,534.70 7,245.06 47,020.00 12,330.00 142,108.08 5,400.00 663,521.50 37,144.70 192,454.50 3,970.00 156,402.02 243,152.02 27,582.00 260,252.11 16,362.00 9,100.00 17,762.00 230,276.67 19,272.90 7,935.43

MMDAs 14 1 6 1 1 1 2 1 1 1 6 1 1 7 2 8 2 1 2 5 6 2 APPENDIX C BRONG AHAFO REGION SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CASH IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES TAX IRREGULARITIES

Source Payment of Payments Unapproved variation Unaccounted stores Unsubstantiated payments Miapprorition Offer of Absence of Payment of deductions sitting Failure to without Use of Failure to Unaccounted No. MMDAs and payment of Unpresented scholarship Payment of contract etention before Fuel Items paid Failure to Failure to Lost of Payment by ADACF Misapplication allowances allocate funds Unbudgeted Outstanding Indebtedness evidence of unapproved Abandoned maintain Repairs Uncompetitive distributed PWD funds to payment without judgement Payment of documents Defects purchases for but not remit withold VAT Unsupported Unreceipted without for services of funds without to expenditure loans/advances to contractors work done or Unapproved material for projects retention without procurement items to unregistered vouchers appropriate debt unjustified on projects Liability not Unaccounte supplied WHT tax revenue payments payment expenditure not minutes on substructures service variation works deposit account works communities beneficiaries documentation contingency executed Period accounted d stores warrants rendered deliberations rendered orders for GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Asunafo North 146,225.50 377,731.89 178,668.00 15,750.00 25,047.45 85,800.00

2 Asunafo South 46,593.00 3,665.00 74,494.06 21,677.67 4,231.87 2,581.25

3 Atebubu Amantin 347,618.78

4 Banda 97,677.00 10,208.27 539,661.47 7,675.00 126,365.80 73,795.85 184,437.97 42,700.00 63,820.00 63,044.00

5 Berekum 3,205.00 752,655.25 48,719.94 33,596.15 19,224.24 7,878.00 3,784.20

6 Dormaa Central 654,487.96 12,800.00 4,453.18 676,798.00 13,734.00 5,000.00 46,154.05 34,523.00

7 Dormaa East 21,927.00

8 Dormaa West 10,550.00 96,246.53 159,519.85 60,186.63 22,250.00 718,309.47

9 Jaman North 248,400.00 487,219.80 3,000.00 105,000.00 11,119.28

10 Jaman South 248,400.00 231,040.05

11 Kintampo North 5,020.00

12 Kintampo South 6,000.00 478,296.70 38,239.30 27,150.00 2,390.00 19,090.00 5,264.03 3,530.75

13 Nkoranza North 3,154.00 295,001.00 5,485.00

14 Nkoranza South 20,000.00

15 Pru 835,029.74 12,770.43

16 Sene East 38,563.40 395,522.86

17 Sene West 393,409.65 222,033.88

18 Sunyani 16,127.56 207,693.95 18,000.00

19 Tain 65,128.50 374,951.99 144,758.20 47,900.00 95,925.82

20 Tano North 220,978.79 649,873.44 9,500.00 21,975.85 11,363.00 19,800.00 22,024.18 406,650.04 12,860.00 18,640.00 83,082.00 3,380.00

21 Tano South 39,879.33 512.28

22 Techiman North 165,600.00 1,065,504.99 20,755.00 351,930.18 88,850.06 3,332.75

23 Wenchi 25,076.00 37,080.00 3,131.00 856,806.01 23,390.00 87,032.00 44,962.46

Total 395,379.00 13,362.27 657,066.64 ######## 600,200.77 15,750.00 564,001.02 7,675.00 143,652.85 713,878.00 220,724.95 21,614.24 1,552,724.79 6,131.00 107,329.85 228,139.82 20,755.00 5,000.00 3,170,665.08 187,458.20 39,879.33 88,850.06 24,110.00 205,398.00 99,294.00 120,050.82 204,637.00 21,380.00 10,008.18 21,766.98 47,543.71

MMDAs 8 1 5 16 4 1 4 1 1 2 5 2 2 2 3 3 1 1 10 2 1 1 2 4 3 3 3 2 2 4 2 APPENDIX C

CENTRAL REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

PROCUREMENT CASH IRREGULARITIES CONTRACT IRREGULARITIES TAX IRREGULARITIES IRREGULARITY

Unsubstantiated payments Failure to prepare Expenditure Completed Award of in VAT paid Failure to No. MMDAs Unaccounted Unpaid loans Abandoned certificates of Procurement outside on the late projects not house works without VAT withhold funds and advances projects satisfactory the procurement plan Unreceipted Unsupported DCE's funeral in use to the DWD invoice WHT payments payments completion of workdone GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Agona West 7,350.00

2 Asikuma Odoben Brakwa 129,281.10 146,499.55

3 Awutu Senya 3,800.00 5,000.00

4 Effutu 1,740.00 25,164.26 104,112.23 21,166.50

5 Gomoa East 59,550.00 83,160.13 101,570.00

6 Twifo Heman Lower Denkyira 277,431.08 127,579.00 8,429.01

Total 281,231.08 134,319.00 25,164.26 129,281.10 59,550.00 104,112.23 146,499.55 83,160.13 101,570.00 21,166.50 7,350.00 8,429.01

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

EASTERN REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

TAX CASH IRREGULARITIES CONTRACT IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES IRREGULARITIES

Financial Failure to sign Scholarship Execution of Delayed/ Unaccounted stores/fuel Purchases Items No. MMDAs assistance for bond with Contract Acquisition Maintenance support for Excessive Payment of projects unexpected/ from non- Unauthorised issued Assets Failure to Unsupported school fees Unsubstantiated Misaplication Non-prudent Unrecovered Medical variation Overpayment Abandoned of lands Uncompetitive Purchases and repairs Failure to brilliant needy cash judgement outside the poorly Fuel and VAT issue of store without register not deduct payments from PWD fund DACF deductions of PWD expenditure rent advances Superintendent without of contract projects without title procurement not supplies Stores without remit WHT students not payment debt Annual Action executed lubricants registered items distribution updated WHT not accounted for sponsored approval documents unaccounted works orders substantiated Plan projecst purchased not person list for course for accounted for 1 Akuapim North 168,599.26 122,156.23 54,902.14 155,123.00

2 Akuapim South 2,962.00 88,419.99 119,665.00

3 Akyemmansa 452,968.74 89,334.00 6,800.00 30,500.00 60,564.00 89,334.00 11,378.00

4 Asuogyeman 91,592.00 78,963.00 21,500.00 2,878.66

5 Atiwa 5,850.00 3,000.00 40,970.00 111,572.41

6 Ayensuano 66,402.65 80,151.90 9,225.00 8,885.00 2,123.52

7 Birim Central 71,430.90 10,048.00 399,834.00 11,947.58 2,707.00

8 Birim North 111,102.30 43,027.15

9 Birim South 2,107.04 89,334.00 234,363.30 89,334.00 4,588.84 5,395.85

10 Denkyembour 160,278.85 6,000.00 132,104.00

11 East Akim 408,820.00 263,894.67 175,599.44

12 Fanteakwa 5,000.00 16,600.00 6,325.00 601.71

13 Kwabibirem 8,700.00 1,824,481.41 34,804.75 29,252.92 844.14 Kwahu Afram 14 92,723.95 1,900.00 131,671.58 5,032.50 35,505.00 22,243.97 483.50 5,687.23 Plains North Kwahu Afram 15 11,094.73 3,552.00 1,077.11 57,984.00 21,610.83 12,280.00 36,544.73 118,600.00 3,690.50 Plains South 16 Kwahu East 13,014.00 7,100.00 13,018.00 842.05

17 Kwahu South 6,017.00 2,200.00 3,346.00 253,704.76 3,440.00 897.30 3,311.99

18 Kwahu West 26,264.00 24,925.69 8,819.65 18,607.71 3,732.42

19 Lower Manyo Krobo 3,500.00 4,153.00 5,250.00 23,945.00 2,287.65

20 New Juaben 15,324.00 641.19 892.20

21 Nsawam-Adoagyiri 17,212.50 41,890.10 28,210.17 3,032.61 1,975.56

22 Suhum 106,286.36 105,700.00 21,336.00 18,300.00 49,843.00 8,228.66

23 Upper Manyo Krobo 63,078.50 5,432.00

24 Upper West Akim 58,065.90 34,316.00 949.60

25 West Akim 466,593.97 12,340.00 175,580.00 23,600.41 227,172.26 3,225.00 2,817.28

26 Yilo Krobo 6,928.00 13,263.00 7,500.00 12,300.00 3,456.00

Total 1,755,249.03 230,463.26 3,346.00 1,504,145.48 1,077.11 40,970.00 226,583.26 12,340.00 6,800.00 7,500.00 30,500.00 111,572.41 234,363.30 2,210,532.31 230,501.58 124,000.00 81,317.00 190,615.58 609,812.87 81,800.65 240,529.47 114,129.83 345,772.26 155,123.00 49,843.00 23,463.28 27,544.79

MMDAs 22 10 1 8 1 1 2 1 1 1 1 1 1 3 2 3 3 3 15 6 9 7 2 1 1 10 8 APPENDIX C

GREATER ACCRA REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

PROCUREMENT & STORE CASH IRREGULARITIES CONTRACT IRREGULARITIES TAX IRR. IRREGULARITIES

Unsubstantiated Schorlarship Use DACF to Payment Payment Payment Unpresented pay contractor Contract for rent Failure to No. MMDAs Unsupported Financial Overpayment of repairs without payment Payment to engaged on a variation without Unaccounte deduct payments assistance to to contractors of private justification vouchers proxies without national without approval tenancy d fuel WHT needy student not vehicles authority note assignment agreement accounted for

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

1 Ada East 111,719.89 1,334,148.28

2 Ada West 8,200.00 8,200.00

3 AMA 3,871,404.45

4 Adantan 11,140.00

5 Ga Central 150,000.00 46,655.55 12,200.00

6 Ga East 5,087.90 25,400.00

7 Ga South 99,112.00 11,500.00 63,157.00 12,288.00 3,553.50 1,520.00

8 La Dade Kotopon 70,400.00

9 La Nkwantanan-Madina 10,996.00

10 Ningo Prampram 49,382.23

11 Shai Osudoku 84,301.16 146,214.40

Total 150,000.00 491,906.83 157,714.40 8,200.00 12,200.00 3,871,404.45 1,397,305.28 5,087.90 25,400.00 12,288.00 3,553.50 1,520.00

MMDAs 1 9 2 1 1 1 2 1 1 1 1 1 APPENDIX C

NORTHERN REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CASH IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES TAX IRREGULARITIES

No. MMDAs VAT paid Unpresented DACF dedcution Purchases Alleged Non Failure to Unsupported Unaccounted Unretired Misapplication Purchases not Failure to without payment for items/services from non- purchased not competitive deduct payments payments imprest of funds supplied remit WHT VAT vouchers not supplied VAT entities accounted for procurement WHT invoices

1 Bole 31,988.00 12,480.00

2 Bunkpurugu-Yunyoo 12,150.00 382,401.00

3 Central Gonja 63,716.00 19,428.00

4 Chereponi 580.30

5 East Mamprusi 53,078.00 18,306.90 3,855.90

6 Gushegu 98,913.95 79,501.54 84,167.00 26,648.00 87,988.00

7 Karaga 1,331.31

8 Mion 126,209.00 19,600.00 67,564.25 68,934.00

9 Saboba 21,169.37 9,500.00

10 Sawla-Tuna-Kalba 15,178.68

11 Tamale 155,250.00 1,500.00

12 West Gonja 11,157.00 13,450.00

13 West Mamprusi 10,260.00 480,194.33 44,933.13

Total 331,425.32 131,089.54 84,167.00 38,798.00 12,480.00 1,017,845.33 67,564.25 218,877.13 11,000.00 84,112.68 18,306.90 3,855.90 1,911.61

MMDAs 6 3 1 2 1 3 1 5 2 2 1 1 2 APPENDIX C

UPPER EAST REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CONTRACT CASH IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES TAX IRREGULARITIES IRREGULARITIES

Failure to Failure to Purchases Payment of No. MMDAs Unauthorised maintain complete Purchases without Repairs VAT Failure to Unpresente withdrawals accounting contracts Unsupporte Unacounte Unaccounte from non-VAT alternativ without Unapproved without deduct d payment from PWD records for within d payments d imprest d payments entities e works orders variation VAT WHT vouchers account fuel schedule quotation invoices purchased period s 1 Binduri 112,257.63 41,455.00 139,102.39 1,579.20

2 Bolgatanga 20,726.00

3 Bongo 67,194.04

4 Bongo 47,547.60 39,128.90

5 Builsa North 8,617.50 48,410.68

6 Builsa South 3,590.05 30,889.72

7 Garu Tempane 342,442.97 5,395.00 1,942,947.21 34,963.00

8 Nabdam 51,000.00 2,934.00 520.15

9 Talensi 7,215.42 48,226.91

Total 590,168.24 12,207.55 51,000.00 41,455.00 7,215.42 79,300.40 187,329.30 8,329.00 39,128.90 1,942,947.21 34,963.00 520.15 1,579.20

MMDAs 5 2 1 1 1 2 2 2 1 1 1 1 1 APPENDIX C

UPPER WEST REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

PROCUREMENT CASH IRR CONTRACT IRREGULARITIES IRREGULARITY Payment for Purchases projects Purchases No. MMDAs Unsupported Abandoned Overpayment without without from non payments projects to contractors alternative monitoring VAT entities quotations reports GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

1 Daffiama Bussie Issa 227,916.41 11,905.00

2 Lambussie-Karni 11,170.00

3 Nadowli-Kaleo 11,794.70 293,000.00

4 Sissala East 1,516.94

5 Wa Municipal 162,602.76 87,730.00

Total 22,964.70 390,519.17 1,516.94 293,000.00 87,730.00 11,905.00

MMDAs 2 2 1 1 1 1 APPENDIX C

VOLTA REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CASH IRREGULARITIES

DACF deductions not benefited Unsubstantiated payments Unaccounted funds from

No Unreceipted Financial MMDAs Source Procurement . Payment Unretired Unreceipted Unpresented Unjustified payment to support to Unsubstantiated Unreceipte Payments DACF deductions from Payment outside without imprest counterpart payment budget J.A. Plant non-existing payment to PWD d payment Unsupporte without memo deductions not MP's allocaion for abortive approved payment funding of vouchers overruns pool student vouchers d payments from MPs benefited from for unspecified trip budget vouchers IRDP purchases

1 Afadzato-South 5,654.79 16,729.44 53,619.75

2 Agotime-Ziope 41,679.31 64,890.29 349,035.82

3 Adalku

4 Akatsi South

5 Biakoye 15,965.00 9,546.00 9,491.00 27,565.00

6 Central Tongu 19,188.00

7 Ho 800.00 564,081.25

8 Ho West 8,816.25 11,450.00 149,302.89 347,437.57 64,000.00 1,304.00

9 Hohoe 9,030.00 25,219.00

10 Ketu North 3,753.00 254,291.00

11 Ketu South 10,000.00 259,195.80 23,264.00

12 Krachi Nchumuru 23,500.00 25,874.00 107,276.48 1,136.88

13 Kpandu

14 Nkwanta North 2,000.00 10,000.00 382,401.00 32,136.00 30,000.00 1,700.00

15 Nkwanta South 58,847.00 4,419.00

16 North Dayi 29,056.50

17 North Tongu 14,889.50

18 South Tongu 19,769.05

19 South Dayi

Total 86,203.35 185,155.44 9,546.00 159,302.89 1,807,406.62 32,136.00 59,553.05 64,000.00 30,000.00 52,133.00 172,166.77 402,655.57 1,136.88 1,700.00 25,219.00

MMDAs 7 9 1 2 5 1 4 1 1 2 2 2 1 1 1 APPENDIX C

VOLTA REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

CONTRACT IRREGULARITIES PROCUREMENT & STORE IRREGULARITIES TAX IRR.

Absence of Repairs Payment of Upward Payment of Mobilisation Payment of permit for Purchase Purchases No. MMDAs and Purchases Payment Failure to Delayed advance revision of contracts without advance paid retention not Contract dam of plots of Purchases from non- Payment for Abandoned maintenanc without for produce Unwithheld Tax not execution of mobilisation contract sums monitoring without traceable to any variations not construction land not VAT tractor not projects e without alternative repairs distribution tax remitted projects without without reports/ contract contract in the approved despite without accounted for registered supplied works quotation not done list for items guarantee approval certificate execution contract register payment tittle deeds suppliers orders made

1 Afadzato-South 34,904.00 5,802.05

2 Agotime-Ziope 15,360.18

3 Adalku 386,253.57 16,523.00 1,450.00

4 Akatsi South 3,105,666.31 20,732.10

5 Biakoye 106,221.59 17,400.00 13,027.85

6 Central Tongu

7 Ho 8,858.33 6,389.00 3,192.67

8 Ho West

9 Hohoe 6,675.00

10 Ketu North

11 Ketu South 60,450.00 45,000.00 2,409.00

12 Krachi Nchumuru 15,000.00 75,198.51 11,000.00 6,800.00 27,542.00 5,172.70

13 Kpandu 20,000.00

14 Nkwanta North 48,311.83 13,885.00

15 Nkwanta South 104,814.15 2,400.00 21,210.87

16 North Dayi 36,106.89 22,272.50

17 North Tongu

18 South Tongu 1,557.00

19 South Dayi 7,522.41

Total 3,260,199.73 386,253.57 15,000.00 75,198.51 64,506.89 13,027.85 8,858.33 104,814.15 2,400.00 20,000.00 13,885.00 22,882.59 73,514.00 51,427.00 6,800.00 45,000.00 49,814.50 30,500.15 31,026.24

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

WESTERN REGION

SUMMARY OF IRREGULARITIES ACCORDING TO REGION

PROCUREMENT & STORE CASH IRREGULARITIES CONTRACT IRREGULARITIES TAX IRREGULARITIES IRREGULARITIES

Financial Payments for Failure to Payment No. MMDAs Failure to Construction assistance to Uneconomical Payment for Unsupported Overpayment works pre-qualify Unutilised Failure to of VAT Loss of Unaccounted Unsupported Unfulfilled obtain tittle outside Unaccounted Failure to staff without payment of rent undisclosed financial for repair without suppliers completed deduct without VAT imprest payments agreement deeds/ approved stores remit WHT policy advance liability assistance works inspection and service projects WHT VAT revenue receipts budget/plan guidelines report providers invoices

1 Bia East 11,930.00 42,514.00 Bibiani/Anhwiaso/Bek 2 56,990.00 8,300.00 79,936.00 wai 3 Jomoro 104,661.25 922,728.75

4 Nzema East 116,927.00 49,659.99 161,791.87 203,704.63 445,145.67 35,560.00 1,159.10 2,882.60 13,088.23

5 Sefwi Akontombra 126,596.76 30,000.00 20,806.13 2,168.61

6 Shama 8,791.69 15,764.00 518.00

7 Suaman 8,000.00 61,046.00

8 Tarkwa Nsuaem 12,160.00 42,000.00 186,844.00

9 Wassa Amenfi West 69,041.14 1,616.00 72,290.00 65,000.00 6,026.12

10 Wassa East 5,154.00 2,263.00 1,201.98

Total 12,160.00 42,000.00 116,927.00 245,295.68 559,929.02 69,346.00 1,616.00 355,930.63 445,145.67 65,000.00 922,728.75 30,000.00 35,560.00 42,514.00 23,069.13 1,159.10 4,602.58 21,282.96

MMDAs 1 1 1 2 9 2 1 3 1 1 1 1 1 1 2 1 3 3 SUMMARY APPENDIX D

DDF TRANSFERS - 2015

50% INV'T GRANT- NO. OF NO REGION (Transfereed in Dec. 2015) MMDAs

1 ASHANTI 12,023,009 30

2 BRONG AHAFO 9,274,658 27

3 CENTRAL 6,348,722 20

4 EASTERN 8,650,003 26

5 GREATER ACCRA 6,751,733 16

6 NORTHERN 10,547,251 26

7 UPPER EAST 6,362,063 13

8 UPPER WEST 4,471,082 11

9 VOLTA 8,196,313 25

10 WESTERN 7,631,167 22

GRAND TOTAL 80,256,000 216 DDF TRANSFERS-2015 APPENDIX D

50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 Ashanti Adansi North Fomena District 702,474 351,237

2 Ashanti Adansi South New Edubiase District 759,741 379,871

3 Ashanti Afigya-Kwabre Kodie District 819,994 409,997

4 Ashanti Ahafo Ano North Tepa District 787,446 393,723

5 Ashanti Ahafo Ano South Mankranso District 887,798 443,899

6 Ashanti Amansie Central Jacobu District 762,266 381,133

7 Ashanti Bekwai Municipal Bekwai Municipality 704,798 352,399

8 Ashanti Amansie West Manso Nkwanta District 889,291 444,645

9 Ashanti Asante Akim Central MunicipalKonongo Municipality 501,575 250,788

10 Ashanti Asante Akim North Agogo District 630,522 315,261

11 Ashanti Asante Akim South Juaso District 883,366 441,683

12 Ashanti Atwima Kwanwoma Foase District 684,492 342,246

13 Ashanti Atwima Mponua Nyinahin District 962,104 481,052

14 Ashanti Atwima Nwabiagya Nkawie District - -

15 Ashanti Bosome Freho Asiwa District 504,059 252,029

16 Ashanti Bosomtwe Kuntenase District 613,290 306,645

17 Ashanti Ejisu-Juaben Municipal Ejisu Municipality 803,563 401,781

18 Ashanti Ejura Sekyeredumase MunicipalEjura Municipality 668,320 334,160

19 Ashanti Kumas Metropolitan Kumasi Metropolitan 3,951,450 1,975,725

20 Ashanti Asokore Mampong Municipal Asokore Mampong Municipality 1,462,345 731,172

21 Ashanti Kwabre East Mamponteng District 746,122 373,061

22 Ashanti Mampong Municipal Mampong Municipality 553,740 276,870

23 Ashanti Obuasi municipal Obuasi Municipality 696,314 348,157

24 Ashanti Offinso Municipal Offinso Municipality 554,793 277,397

25 Ashanti Offinso North Akomadan District 512,869 256,435

26 Ashanti Sekyere Kumawu Kumawu District 620,673 310,337

27 Ashanti Sekyere Afram Plains South Drobonso District 463,602 231,801

28 Ashanti Sekyere Central Nsuta District 582,525 291,262

29 Ashanti Sekyere East Effiduase District 569,946 284,973

30 Ashanti Sekyere South Agona Ashanti District 766,539 383,270 TOTAL 24,046,017 12,023,009 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 B. Ahafo Asunafo North Municipal Goaso Municipality 792,729 396,365

2 B. Ahafo Asunafo South Kukuom District 727,579 363,790

3 B. Ahafo Asutifi North Kenyasi District 548,462 274,231

4 B. Ahafo Asutifi South Hwidiem District 586,899 293,450

5 B. Ahafo Atebubu-Amantin Atebubu District 891,438 445,719

6 B. Ahafo Berekum Municipal Berekum Municipality 655,760 327,880

7 B. Ahafo Dormaa East Wamfie District 442,335 221,167

8 B. Ahafo Dormaa Central Municipal Dormaa-Ahenkro Municipality 650,039 325,020

9 B. Ahafo Dormaa West Nkran Nkwanta District 512,124 256,062

10 B. Ahafo Jaman North Sampa District 660,450 330,225

11 B. Ahafo Jaman South Drobo District 813,475 406,738

12 B. Ahafo Kintampo North Municipal Kintampo Municipality 771,922 385,961

13 B. Ahafo Kintampo South Jema District 808,734 404,367

14 B. Ahafo Nkoranza North Busunya District 667,157 333,579

15 B. Ahafo Nkoranza South Municipal Nkoranza Municipality 808,372 404,186

16 B. Ahafo Pru Yeji District 1,121,999 561,000

17 B. Ahafo Sene West Kwame Danso District 732,354 366,177

18 B. Ahafo Sene East Kajaji District 713,080 356,540

19 B. Ahafo Sunyani Municipal Sunyani Municipality 625,548 312,774

20 B. Ahafo Sunyani West Odumase District 653,578 326,789

21 B. Ahafo Tain Nsawkaw District 742,114 371,057

22 B. Ahafo Banda Banda Ahenkro District 451,835 225,918

23 B. Ahafo Tano North Duayaw Nkwanta District 611,078 305,539

24 B. Ahafo Tano South Bechem District 621,085 310,543

25 B. Ahafo Techiman Municipal Techiman Municipality 681,889 340,944

26 B. Ahafo Techiman North Tuobodom District 578,007 289,003

27 B. Ahafo Wenchi Municipal Wenchi Municipality 679,273 339,636

TOTAL 18,549,315 9,274,658 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 Central Abura Asebu Kwamankesse Abura Dunkwa District 685,818 342,909

2 Central Agona East Nsaba District 543,520 271,760

3 Central Agona West Municipal Swedru Municipality 537,788 268,894

4 Central Ajumako-Enyan-Essiam Ajumako District 769,720 384,860

5 Central Asikuma Odoben Brakwa Breman Asikuma District 633,962 316,981

6 Central Assin North Municipal Assin Foso Municipality 883,970 441,985

7 Central Assin South Nsuaem KyekyewereDistrict 734,948 367,474

8 Central Awutu Senya Awutu Breku District 543,151 271,576

9 Central Awutu Senya East Municipal Kasoa Municipality 661,633 330,817

10 Central Cape Coast Metropolitan Cape Coast Metropolitan 593,701 296,850

11 Central Efutu Municipal Winneba Municipality 452,581 226,291

12 Central Gomoa East Afransi District 1,037,918 518,959

13 Central Gomoa West Apam District 757,329 378,665

14 Central Komenda Edina Eguafo AbiremElmina Municipal Municipality 613,256 306,628

15 Central Mfantseman Municipal Saltpond Municipality 660,379 330,189

16 Central Ekumfi Essarkyir District 455,873 227,936

17 Central Twifo Ati-Morkwa Twifo Praso District 528,029 264,014

18 Central Twifi Hemang Lower DenkyiraHemang District 620,760 310,380

19 Central Upper Denkyira East MunicipalDunkwa-on-Offin Municipality 481,696 240,848

20 Central Upper Denkyira West Diaso District 501,411 250,706

TOTAL 12,697,443 6,348,722 Investment 50% Investment No Region District District Capital Classification Grant Grant-Transfereed 1 Eastern Akwapim North Municipal Akropong AkwapimMunicipality 784,667 392,333

2 Eastern Nsawam-Adoagyiri Municipal Nsawam Municipality 493,625 246,812

3 Eastern Akwapim South Aburi District 487,297 243,649

4 Eastern Akyemansa Ofoase District 696,254 348,127

5 Eastern Asuogyaman Atimpoku District 660,405 330,202

6 Eastern Atiwa Kwabeng District 869,462 434,731

7 Eastern Birim Central Municipal Akim Oda Municipality 714,273 357,136

8 Eastern Birim North New Abirem District 633,567 316,784

9 Eastern Birim South Akim Swedru District 673,912 336,956

10 Eastern East Akim Municipal Kibi Municipality 819,874 409,937

11 Eastern Fanteakwa Begoro District 764,034 382,017

12 Eastern Kwaebibirem Kade District - -

13 Eastern Denkyembour Akwatia District 717,061 358,530

14 Eastern Kwahu East Abetifi District 653,750 326,875

15 Eastern Kwahu Afram Plains North Donkorkrom District 863,540 431,770

16 Eastern Kwahu Afram Plains South Tease District 1,029,784 514,892

17 Eastern Kwahu South Mpraeso District 563,222 281,611

18 Eastern Kwahu West Municipal Nkawkaw Municipality 602,369 301,185

19 Eastern Lower Manya Krobo MunicipalOdumase Krobo Municipality 693,353 346,676

20 Eastern New Juaben Municipal Koforidua Municipality 645,915 322,957

21 Eastern Suhum Municipal Suhum Municipality 686,164 343,082

22 Eastern Ayensuano Coaltar District 635,323 317,662

23 Eastern Upper Manya Krobo Asesewa District 500,966 250,483

24 Eastern West Akim Municipal Asamankese Municipality 663,513 331,756

25 Eastern Upper West Akim Adeiso District 769,552 384,776

26 Eastern Yilo Krobo Municipal Somanya Municipality 678,125 339,063

TOTAL 17,300,006 8,650,003 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 G. Accra Accra Metropolitan Accra Metropolitan 4,376,492 2,188,246

2 G. Accra La Dade-Kotopon Municipal La Municipality 1,011,279 505,639

3 G. Accra Adentan Municipal Adentan Municipality 414,219 207,110

4 G. Accra Ashaiman Municipal Ashaiman Municipality 633,326 316,663

5 G. Accra Ada East Ada Foah District 580,027 290,014

6 G. Accra Ada West Sege District 587,294 293,647

7 G. Accra Shai-Osudoku Dodowa District 517,081 258,540

8 G. Accra Ningo-Prampram Prampram District - -

9 G. Accra Ga East Municipal Abokobi Municipality 595,144 297,572

10 G. Accra La Nkwantanang-Madina MunicipalMadina Municipality - -

11 G. Accra Ga West Municipal Amasaman Municipality 759,023 379,511

12 G. Accra Ledzokuku-Krowor Municipal Teshie-Nungua Municipality 811,920 405,960

13 G. Accra Tema Metropolitan Tema Metropolitan 807,111 403,556

14 G. Accra Kpone Katamanso Kpone District 689,004 344,502

15 G. Accra Ga South Municipal Weija Municipality 1,237,845 618,922

16 G. Accra Ga Central Municipal Sowutuom Municipality 483,702 241,851

TOTAL 13,503,466 6,751,733 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 Northern Bole Bole District 716,794 358,397

2 Northern Bunkpurugu-Yunyoo Bunkpurugu District - -

3 Northern Central Gonja Buipe District 970,776 485,388

4 Northern Chereponi Chereponi District 630,713 315,356

5 Northern East Gonja Salaga District 1,169,449 584,725

6 Northern East Mamprusi Gambaga District 1,248,525 624,263

7 Northern Gushiegu Gushiegu District 1,159,571 579,785

8 Northern Karaga Karaga District - -

9 Northern Kpandai Kpandai District 1,022,095 511,047

10 Northern Nanumba North Bimbila District 1,238,868 619,434

11 Northern Nanumba South Wulensi District 901,704 450,852

12 Northern Saboba Saboba District - -

13 Northern Savelugu Nanton Municipal Savelugu Municipality 1,329,332 664,666

14 Northern Sawla-Tuna-Kalba Sawla District 1,036,878 518,439

15 Northern Tamale Metropolitan Tamale Metropolitan 1,104,564 552,282

16 Northern Sagnerigu Sagnerigu District 742,598 371,299

17 Northern Tolon Tolon District 722,441 361,221

18 Northern Kumbungu Kumbungu District 546,610 273,305

19 Northern West Gonja Damango District 556,039 278,019

20 Northern North Gonja Daboya District 643,424 321,712

21 Northern West Mamprusi Walewale District 1,199,005 599,502

22 Northern Mamprugu-Moagduri Yagaba District 705,039 352,519

23 Northern Yendi Municipal Yendi Municipality 999,777 499,889

24 Northern Mion Sang District 845,767 422,883

25 Northern Zabzugu Zabzugu District 768,888 384,444

26 Northern Tatale Sanguli Tatale District 835,647 417,823

TOTAL 21,094,503 10,547,251 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 U. East Bawku Municipal Bawku Municipality 1,055,233 527,617

2 U. East Pusiga Pusiga District 884,131 442,065

3 U. East Binduri Binduri District 926,148 463,074

4 U. East Bawku West Zebilla District 1,124,603 562,302

5 U. East Bolgatanga Municipal Bolgatanga Municipality 1,147,823 573,912

6 U. East Bongo Bongo District 1,088,635 544,317

7 U. East Builsa North Sandema District 791,159 395,579

8 U. East Builsa South Fumbisi District 659,791 329,896

9 U. East Garu-Tempane Garu District 1,493,971 746,985

10 U. East Kassena Nankana Municipal Navrongo Municipality 1,226,943 613,471

11 U. East Kassena Nankana West Paga District 911,430 455,715

12 U. East Talensi Tongo District 827,643 413,822

13 U. East Nadbdam Nangodi District 586,618 293,309

TOTAL 12,724,126 6,362,063

50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015 1 U. West Jirapa Jiripa District 1,093,948 546,974

2 U. West Lambussie Karni Lambussie District 680,868 340,434

3 U. West Lawra Lawra District 733,770 366,885

4 U. West Nandom Nandom District 802,167 401,083

5 U. West Nadowli-Kaleo Nadowli District 694,124 347,062

6 U. West Daffiama-Bissie-Issa Issa District 530,121 265,060

7 U. West Sissala East Tumu District 770,346 385,173

8 U. West Sissala West Gwollu District 682,157 341,079

9 U. West Wa East Funsi District 856,779 428,390

10 U. West Wa Municipal Wa Municipality 1,136,938 568,469

11 U. West Wa West Wechiaw District 960,946 480,473

TOTAL 8,942,164 4,471,082 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 Volta Agortime Ziope Agortime-Kpetoe District 511,037 255,519

2 Volta Adaklu Adaklu Waya District 442,350 221,175

3 Volta Akatsi South Akatsi District 838,538 419,269

4 Volta Akatsi North Ave Dakpa District 458,105 229,053

5 Volta Biakoye Nkonya Ahenkro District 602,751 301,376

6 Volta Ho Municipal Ho Municipality 934,011 467,006

7 Volta Ho West Dzolopuita District 726,168 363,084

8 Volta Hohoe Municipal Hohoe Municipality 814,306 407,153

9 Volta Afadzato South Ve Golokwati District 791,398 395,699

10 Volta Jasikan Jasikan District 636,170 318,085

11 Volta Kadjebi Kadjebi District 504,899 252,449

12 Volta Keta Municipal Keta Municipality 806,208 403,104

13 Volta Ketu North Dzodze District 814,397 407,199

14 Volta Ketu South Denu District 1,124,804 562,402

15 Volta Krachi East Dambai District 940,595 470,297

16 Volta Krachi West Kete-Krachi District 438,370 219,185

17 Volta Krachi Ntsumuru Chinderi District 802,355 401,178

18 Volta Nkwanta North Kpasa District 566,667 283,333

19 Volta Nkwanta South Nkwanta District 981,722 490,861

20 Volta Kpando Municipal Kpando Municipality - -

21 Volta North Dayi Anfoega District 525,347 262,674

22 Volta Central Tongu Adidome District - -

23 Volta North Tongu Battor Dugama District 887,706 443,853

24 Volta South Dayi Kpeve District 459,019 229,509

25 Volta South Tongu Sogakope District 785,702 392,851

TOTAL 16,392,626 8,196,313 50% Investment Investment No Region District District Capital Classification Grant-Transfereed Grant in Dec. 2015

1 Western Ahanta West Agona Nkwanta District 751,227 375,613

2 Western Aowin Enchi District 810,947 405,474

3 Western Suaman Dadieso District 434,570 217,285

4 Western Bia West Essam-Dabiso District 704,628 352,314

5 Western Bia East Adabokrom District 417,918 208,959

6 Western Bibiani Anhwiaso Bekwai Bibiani District 797,685 398,842

7 Western Ellembele Nkroful District 678,164 339,082

8 Western Jomoro Jomoro District 912,125 456,062

9 Western Juabeso Juabeso District 541,358 270,679

10 Western Bodie Bodie District 607,201 303,601

11 Western Wassa East Daboase District 715,582 357,791

12 Western Mpohor Mpohor District 493,124 246,562

13 Western Nzema East Municipal Axim Municipality 433,412 216,706

14 Western Prestea-Huni Valley Bogoso District 948,592 474,296

15 Western Sefwi Akontombra Sefwi Akontombra District 627,952 313,976

16 Western Sefwi Wiawso Municipal Sefwi-Wiaso Municipality 951,240 475,620

17 Western Sekondi-Takoradi MetropolitanSekondi Metropolitan 1,348,804 674,402

18 Western Shama Shama District 560,623 280,311

19 Western Tarkwa- Nsuaem Municipal Tarkwa Municipality 553,345 276,673

20 Western Wassa Amenfi East Wassa Akropong District 711,536 355,768

21 Western Wassa Amenfi West Asankragua District 666,571 333,286

22 Western Wassa Amenfi Central Manso Amenfi District 595,730 297,865

TOTAL 15,262,333 7,631,167 APPENDIX E

DISTRICT DEVELOPMENT FACILITY- TABLE OF IRREGULARITIES

Contract Failure to Payment Payment of Contract Completed Civil works payments hand over Unsuported Abandoned Delayed without preliminaries Indebtednes Unapproved works paid Unaccounted Unremitted MMDAs projects not without Unwithheld tax without completed Total payments projects projects expenditure without s to variation for but not fuel tax in use plans inspection projects to the warrant evidence contractors executed reports Assembly

Ashanti region GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Asokore Mampong 145,288.36 145,288.36

Atwima Nwabiagya 11,000.00 11,000.00

Sekyere South 192,735.28 192,735.28

Mampong 131,112.70 131,112.70

Ejura Sekyeredumase 530,541.41 530,541.41

Sub-total 349,023.64 131,112.70 530,541.41 ------1,010,677.75

Brong Ahafo region

Wenchi 114,006.33 8,328.58 1,677.89 124,012.80

Tano North 215,181.00 157,733.60 30,917.06 8,012.20 411,843.86

Asunafo North 779,844.19 381,295.25 1,161,139.44

Jaman North 185,422.00 5,434.25 190,856.25

Asunafo South 10,885.00 463,178.90 4,344.00 478,407.90

Jaman South 301,754.54 301,754.54

Berekum 114,792.00 114,792.00

Techiman North 102,688.84 102,688.84

Sub-total 114,006.33 1,196,390.73 - 215,181.00 724,450.85 10,885.00 102,688.84 463,178.90 30,917.06 4,344.00 8,012.20 13,762.83 1,677.89 - - 2,885,495.63

Central region

Upper Denkyira West 24,606.91 24,606.91

Assin South 19,000.00 62,211.68 81,211.68

Abura-Asebu-Kwamankese 17,619.00 6,405.31 24,024.31

Assin North 146,957.68 230,608.92 377,566.60

Sub-total 43,606.91 - - - 146,957.68 - - - 17,619.00 - - - - 68,616.99 230,608.92 507,409.50 Failure to Inability to Payment for Unapproved Procurement Procurement Under Completed produce Contract not Unsupported Overpayment implement Delayed Abandoned works without Unretired MMDAs contract/ of service not from non- deduction of projects not distribution list fully/properl Total payments of contract Development projects projects bills of imprest expenditure performed VAT entities retention in use for item y executed projects quantities procured and Eastern region GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Kwahu East 19,489.00 19,489.00

Upper Manya Krobo 7,400.80 7,400.80

Birim Central 1,604.34 49,080.60 50,684.94

Akyemmansa 35,000.00 35,000.00

Suhum 9,537.87 11,700.00 21,237.87

East Akim 30,046.13 30,046.13

Atiwa 9,213.00 9,213.00

Sub-total 63,494.14 39,584.00 49,080.60 11,700.00 9,213.00 ------173,071.74

Greater Accra Region

Ga Central 241,851.00 241,851.00

Upper East region

Garu Tempane 45,338.30 139,317.90 184,656.20

Upper West region

Jirapa 74,567.87 74,567.87

Sissala East 5,701.58 5,701.58

Sissala West 181,082.30 181,082.30

Sub-total 74,567.87 ------5,701.58 181,082.30 - - - - - 261,351.75

Volta region

Nkwanta North 39,137.72 39,137.72

Hohoe 1,000.00 1,000.00

South Tongu 150,838.49 150,838.49

Agotime Ziope 396,000.00 63,170.07 459,170.07

Biakoye 50,400.00 50,400.00

Krachi Nchumuru 10,170.00 10,170.00

Sub-total 190,976.21 ------396,000.00 63,170.07 50,400.00 10,170.00 - 710,716.28

Western region

Nzema East 16,200.00 69,565.00 85,765.00

Shama 2,875.79 8,566.40 11,442.19

Sub-total - 2,875.79 8,566.40 - 16,200.00 ------69,565.00 97,207.19

Grand total 881,013.40 1,369,963.22 588,188.41 226,881.00 896,821.53 252,736.00 242,006.74 468,880.48 229,618.36 400,344.00 71,182.27 64,162.83 11,847.89 138,181.99 230,608.92 6,072,437.04 Mission Statement

The Ghana Audit Service exists

To promote

· good governance in the areas of transparency,

accountability and probity in the public financial management sy stem of Ghana

By auditing

· to recognized international auditing standards, the

mana gement of public resources

And

· reporting to Pa rliament · r eporting to Parliament