Financial Irregularities In Assemblies

Financial Irregularities In Assemblies

Cape Coast Metropolitan Assembly Over Utilized DACF To GH¢152,628.80.

The Cape Coast Metropolitan is one of the 260 Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana and forms part of the 22MMDAs in Central Region.The Metropolis covers an area of 122 square kilometers and is the smallest metropolis in the country. With its administrative capital As Cape Coast, The Cape Coast Metropolitan Area is one of the oldest districts in Ghana.

Metropolitan is bounded on the south by the Gulf of Guinea, west by Komenda Edina Eguafo/Abrem Municipal, east by the Abura Asebu Kwamankese District and north by the Twifo Hemang Lower Denkyira District.

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It has been revealed in the 2018 Auditor general's report that the metropolitan has over utilized it's share of the District Assembly Common fund to GH¢15,268.80.

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 Cape Coast Metropolitan Assembly received a total of GH¢1,273,590.40 as their share of the Common Fund with the permissible 10%
to be spent on recurrent expenditure as GH¢127,359.40 but spent a total of GH¢15,268.80 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 Cape Coast Metropolitan Assembly to improve on it's 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¢25,269.76 from the IGF account to the DACF account and desist from violating guidelines on the utilization of DACF.

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