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30 District Assemblies in Ashanti region witness rise in revenue

By: Fred Yaw Sarpong

Total revenue of the 30 district assemblies in the Ashanti Region witnessed appreciable rise over four year period, increasing from GH¢94,996,260.54 in 2012 to GH¢124,267,878.09 in 2013 and to GH¢159,292,965.70 in 2014.
                                        Hon. Collins Dauda, Local Government Minister

This comprised of Internally Generated Funds (IGFs), Common Fund allocations, Government Grants and Donor funds and it represented nearly 70% revenue growth over the three year period.

This was contained in the Auditor-General’s report on the accounts of District Assemblies for financial year ended 31 December 2014.

All the 30 assemblies in the region prepared and submitted their financial statements for audit validation in compliance with Part VII Sections 77 and 78 of the Financial Memoranda for Metropolitan, Municipal and District Assemblies (MMDAs).

According to the report, the Kumasi Metropolitan Assembly (KMA) alone accounted for 34% of the revenue collected in the region while Asante Akim North recorded the least revenue of GH¢1,901,770.74.

“Three assemblies recorded a drop in their total revenue over their 2013 figures. The Assemblies were Adansi North, Asante Akim South and Offinso South with their revenues decreasing by GH¢415,779.58, GH¢159,710.56 and GH¢123,274.77 respectively,” the report stated.

Meanwhile, total IGF for the 30 assemblies also increased from GH¢23,062,118.80 in 2012 to GH¢25,004,155.74 in 2013 and to GH¢35,456,733.18 in 2014. The highest IGF recipient was the Kumasi Metro in the sum of GH¢20,124,918.25 accounting for 57% of the regional total.

Other assemblies with comparatively high IGF figures for 2014 were Obuasi (GH¢2,431,771.15) followed by Ejisu Juaben (GH¢1,350,249.16). “The three Assemblies with the lowest IGF collection for the 2013-2014 periods were Sekyere Affram Plains, Bosome Freho and Asante Akim South,” Daily Express learnt.

The report said Ahafo Ano North, Asante Akim South and Bekwai Assemblies recorded decreases in their IGF collection dropping by GH¢5,776.96, GH¢17,484.52 and GH¢510,094.77 respectively over their 2013 collections.

On operational results, Auditor General said the 30 assemblies incurred a total expenditure of GH¢145,079,232.46 out of their total revenue of GH¢159,292,965.70, resulting in a surplus of GH¢14,213,733.24.

“In all, eight assemblies overspent their revenue for the year, with Offinso Municipal (GH¢179,958.81) recording the highest deficit, followed by Asante Akim North (GH¢165,660.54), Mampong (GH¢145,961.69) and Bekwai (GH¢123,597.47) Assemblies.

The 30 assemblies reported cash and bank balances totaling GH¢24,171,814.11. Kumasi Metro and Obuasi had the highest cash resources of GH¢14,017,801.03 and GH¢1,950,855.02 respectively, while Asante Akim North (GH¢11,539.72) and Sekyere South (GH¢16,881.21) reported overdrawn balances.

However, 16 assemblies reported GH¢1,800,268.04 as their total value of investment, with GH¢1,220,373.90 of the amount representing fixed deposit and GH¢501,636.29 as unrecovered Poverty Alleviation Fund loan balances.

The report indicated that 22 assemblies were owed a total of GH¢191,669.42 in unpaid loans and advances as at the end of the year. “Seven Assemblies had unchanged receivables as at 31 December 2013 and 2014 suggesting nil recoveries from their debtors.”

The Auditor-General urged the managements to recover the amounts from the defaulters or the officials whose inaction occasioned non-recovery.

The seven assemblies were Adansi North (GH¢2,485.00), Adansi South (GH¢1,450.00), Ahafo Ano South (GH¢2,110.00), Atwima Kwanwoma (GH¢1,785.00), Bekwai (GH¢909.01), Offinso South (GH¢2,700.00) and Sekyere East (GH¢6,150.98).

The Auditor-General discovered that a total creditors in the books of 23 assemblies totaled GH¢2,630,622.17 with three assemblies carrying unchanged creditors as at the end of 2012, 2013 and 2014.

These were Asante Akim Central with GH¢4,433.88, Bekwai with GH¢12,285.38 and Offinso South with GH¢19,317.29.


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