Financial Irregularities In Assemblies: part Five

Financial Irregularities In Assemblies: part Five

Assin Fosu Municipal Assembly Over Utilized DACF To GH¢179,083.57

The Assin North (Fosu) Municipal is one of the 260 Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana and is among the 22 MMDAs in the Central Region with its administrative capital as Assin Fosu.

The Municipality shares common boundaries with TwifoHemang Lower Denkyira District on the west, Assin South District on the south, Asikuma Odoben-Brakwa District and Ajumako Enyan-Esiam District on the east, Upper Denkyira East Municipal on the north-west and Assin North District on the north.

According to the auditor general's 2018 report, it has been revealed that, the Assembly Has Over-Utilized DACF To GH¢179,083.5

Part 1 of the 2017 guideline for the utilization of the District Assemblies Common Fund (DACF) requires that up to 10 percent of the DACF should be allocated for recurrent expenditure.

We noted that management of Assin Fosu Municipal Assembly received a total of GH¢8,656,573.00 as their share of the Common Fund with the permissible 10%
to be spent on recurrent expenditure as GH¢ 86,565.73 but spent a total of GH¢ 179,083.57 representing more than the 10% of the DACF inflows on recurrent expenditures, the excess amount spent was GH¢ 25,269.76.

We attributed this infraction to the inability of the management of the Assin Fosu Municipal Assembly to improve on it Internally Generated Fund (IGF) generation to facilitate funding of such recurrent expenditures.

The anomaly could contribute to delay in completion of DACF projects which could lead to cost overruns of the DACF projects.

The auditor general therefore recommended to managements of the Assembly to refund the excess expenditure of GH¢25,569.76 from the IGF account to the DACF account and desist from violating guidelines on the utilization of DACF.

Stay tuned and watch out for your Assembly

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