Disbursement of District Assemblies’ Common Fund
The District Assemblies Common Fund (DACF) was established by a Parliamentary Act 455. Whilst Act 462 is mandating the Assembly to generate funds internally, (IGF) for its recurrent and capital expenditure, the Common Fund receipts of the Assembly has been disbursed on projects in the under listed areas;
- Economic which has sub-heads such as energy, markets, roads and private sector.
- Social: Education, Health, Water, Housing and Sports and Recreation
- Administration: Human Resource Development, Accommodation, Office Equipment and Project Management.
- Environment: Sanitation, tree planting, as development of Local Government structures.
As a Planning Authority, the Assembly is mandated to generate funds internally to discharge her planned programs. Funds such as the District Assemblies Common Fund (DACF), HIPIC funds, royalties, etc are also received from the Central Government to complement funds internally generated.
Expenditures on which these funds applied are fundamentally guided by the District’s Medium Term Development Plan and are subjected to rules and regulations as contained in the Financial Administration Act (FAA) and its accompanying Financial Memorandum (FM). Disbursement of DACF is strictly in accordance with approved guidelines of the Administrator of the District Assemblies Common Fund and the Minister of Local Government Rural Development and the Environment.
In order to ensure that funds received by the Assembly are properly accounted for there is periodic audit of the financial accounts and books of the Assembly by personnel of the Audit Services and the Internal Audit Section of the Controller and Accountant General’s Department. These and other internal controls guarantee financial accountability and diligence. Expenditure Control
In order to ensure that the District Development Goals are realized, it is imperative that the expenditure pattern of the District is directed by the District Medium Term Development Plan.
Some practices may inhibit the District Medium Term Development Plan implementation are:
- Non-adherence to programs in the Development Plan.
- Imposition of expenditure form Regional Co-coordinating Council and Ministry of Local Government.
- Deductions from the District allocation by the Administrator of the Fund in Accra.
- Non adherence to Expenditure Budget going with the plan
- Over-spending on approved projects due to low budgets and or material price hikes which leads to cuts on other programs in the Plan.
- Arbitrary spending
From the above, it is important that all expenditures are strictly controlled to avoid excessive unplanned spending.
For tables refer to pdf file attached