Upload
others
View
11
Download
0
Embed Size (px)
Citation preview
REPUBLIC OF GHANA
ANALYSIS REPORT OF THE
AUDITOR GENERAL
ON PERFORMANCE AUDITS ON
50 DISTRICT ASSEMBLIES
UNDER GHANA'S STRENGTHENING
ACCOUNTABILITY MECHANISM II
Our VisionOur Vision is to become a world-class Supreme Audit I n s t i t u t i o n d e l i v e r i n g professional, excellent and cost-effective services.
This report has been prepared in compliancewith Article 187(2) of the 1992 Constitutionof Ghana and Section 13 and 16 of the Audit Service Act, 2000 (Act 584)
Johnson Akuamoah Asiedu Acting Auditor GeneralGhana Audit Service16 November 2020
The audit was conducted under the supervision of Jacob Essilfie, Lawrence Ayagiba (AAGs, Performance Audit) and Benjamin G. Codjoe, Deputy Auditor-General in charge of Performance and Special Audits
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]: Ministries Block 'O'
© Ghana Audit Service 2020
TRANSMITTAL LETTER Ref. No. AG.01/102/Vol.2/146
Office of the Auditor-General Ministries Block “O”
P. O. Box MB 96 Accra
Tel. (021) 662493 Fax (021) 662493
GA-110-8787
16 November 2020
Dear Mr. Speaker,
ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER
GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
I have the honour to submit to you an analysis report on the performance
audits of infrastructure development in 50 district assemblies under the
USAID/Ghana sponsored project, Ghana’s Strengthening Accountability
Mechanism in accordance with my mandate under Article 187(2) of the 1992
Constitution of Ghana, Sections 13(e) and 16 of the Audit Service Act, 2000
(Act 584) which provide that I may carry out performance and special audits.
2. The purpose of the audit was to ascertain the efficiency and
effectiveness with which district assemblies execute infrastructure projects in
accordance with its mandate as stated in the Local Governance Act 2016 and
other laws. The audit covered the period 2013 to 2018.
3. We found that, the assemblies lacked the enthusiasm and attitudes to achieve
what they planned to do. The District Planning Officers did not provide the right
leadership and experience in leading the preparation of the Medium-Term
Development Plan. Annual planning, procurement planning, tendering and
implementation of capital projects were poorly performed. The Works Engineers
showed very little ability to supervise the construction works to meet the
specifications provided in the Contract Documents. They accepted defective work and
blamed their poor performances on lack of tools to check the executed works and also
lack of transport to visit project sites.
4. We made some recommendations to help the assemblies improve upon
its implementation of capital projects.
5. I trust that this report will meet the expectations of Parliament.
Yours faithfully,
JOHNSON AKUAMOAH ASIEDU
ACTING AUDITOR GENERAL
THE RT. HON. SPEAKER
OFFICE OF PARLIAMENT
PARLIAMENT HOUSE
ACCRA
i | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Table of Contents LIST OF ACRONYMS ................................................................................................................. iii
CHAPTER ONE ......................................................................................................................... 1
Introduction ........................................................................................................................ 1
Purpose and Objectives of the audit .................................................................................. 2
Audit Scope ......................................................................................................................... 2
Audit Methodology ............................................................................................................. 3
CHAPTER TWO......................................................................................................................... 4
DELIVERY OF INFRASTRUCTURE PROJECTS IN METROPOLITAN, MUNICIPAL AND
DISTRICT ASSEMBLIES ......................................................................................................... 4
Background ......................................................................................................................... 4
Infrastructure development projects ................................................................................. 4
Functions of the Assembly .................................................................................................. 5
Laws and Regulations .......................................................................................................... 6
1992 Constitution ................................................................................................................ 6
Local Government Service Act, Act 656 .............................................................................. 6
Local Governance Act 2016, Act 936 .................................................................................. 6
National Development Planning Commission Act 1994, Act 480 ....................................... 7
Public Procurement Act 2003, Act 663, amended to Act 914 ............................................ 7
Key players and their Responsibilities ................................................................................ 8
Funding ................................................................................................................................ 9
Steps in the identification to implementation of projects in Assemblies ........................ 10
CHAPTER THREE .................................................................................................................... 11
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ......................................................... 11
ii | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Introduction ...................................................................................................................... 11
IDENTIFICATION AND SELECTION ..................................................................................... 11
PLANNING AND BUDGETING OF PROJECTS BY DISTRICT ASSEMBLIES ............................ 12
Budgeting for Projects ...................................................................................................... 14
Procurement of Contractors for Assembly Projects ......................................................... 16
Project Execution .............................................................................................................. 19
Assessing Benefits and Impacts of Assembly Projects ..................................................... 32
Projects Completed and In Use ......................................................................................... 34
Uncommon but Significant Audit Findings ....................................................................... 36
APPENDICES .......................................................................................................................... 39
APPENDIX 1- List of the 50 Districts Audited..................................................................... 39
APPENDIX 2 - Assessment areas and sub-components .................................................... 40
APPENDIX 3 – Methodology for auditing the 50 District Assemblies ............................... 41
Audit methodology for the 50 Districts ............................................................................ 41
APPENDIX 4 - Audit questions and Assessment Criteria used for the audit of the 50
District Assemblies ............................................................................................................ 44
APPENDIX 5 – Details of amounts each assembly paid to contractor for work not
executed ............................................................................................................................ 46
iii | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
LIST OF ACRONYMS
ACRONYM MEANING
AAP ANNUAL ACTION PLAN
ADA ADAKLU DISTRICT ASSEMBLY
BOQ BILLS OF QUANTITIES
DA DISTRICT ASSEMBLY
DACF DISTRICT ASSEMBLY COMMON FUND
DCD DISTRICT COORDINATING DIRECTOR
DCE DISTRICT CHIEF EXECUTIVE
DDF DISTRICT DEVELOPMENT FACILITY
DFO DISTRICT FINANCE OFFICER
DMTDP DISTRICT MEDIUM TERM DEVELOPMENT PLAN
DPCU DISTRICT PLANNING COORDINATING UNIT
DPO DISTRICT PLANNING OFFICER
DTC DISTRICT TENDER COMMITTEE
DTRB DISTRICT TENDER REVIEW BOARD
GAS GHANA AUDIT SERVICE
GSAM GHANA’S STRENGTHENING ACCOUNTABILITY
MECHANISM
IGF INTERNALLY GENERATED FUND
IPC INTERIM PAYMENT CERTIFICATE
LGSS LOCAL GOVERNMENT SERVICE SECRETARIAT
MLG MINISTRY OF LOCAL GOVERNMENT
MMDA METROPOLITAN, MUNICIPAL AND DISTRICT ASSEMBLIES
MOF MINISTRY OF FINANCE
NDPC NATIONAL DEVELOPMENT PLANNING COMMISSION
OHLS OFFICE OF THE HEAD OF LOCAL SERVICE
POA PLAN of ACTION
PPA PUBLIC PROCUREMENT ACT
PPAu PUBLIC PROCUREMENT AUTHORITY
RCC REGIONAL COORDINATING COUNCIL
RPCU REGIONAL PLANNING COORDINATING UNIT
USAID UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT
1 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
CHAPTER ONE
Introduction
United State Agency for International Development (USAID)/Ghana in collaboration with
the Government of Ghana is implementing a five-year project (from 2015 to 2020) under the
name of Ghana’s Strengthening Accountability Mechanism (GSAM). The main aim of the
GSAM project is to increase communities’ capacity to demand accountability from those to
whom resources have been entrusted on their behalf. This was to be done through
strengthening both top-down and bottom-up accountability. GSAM addresses
USAID/Ghana’s objectives of improving governance, the quality of district-built capital
projects and related service delivery, building the capacity of Ghanaian institutions, and
strengthening local democratic procedures and citizens engagement.
2. The Government of Ghana, USAID, and citizens all expressed concern that many
district assemblies were building projects inefficiently, ineffectively, and without citizen
input. For example, there is evidence that about 33 percent of projects are never completed
(Williams, 2015)1. In light of these concerns, the GSAM project was designed to increase
accountability for the planning and execution of these crucial district assembly projects.
GSAM targeted District Assemblies (DAs) to improve public sector accountability at that
level.
3. Key aspects of the GSAM project involved conducting social accountability audits of
infrastructure projects on one hand by CARE International and performance audits of
infrastructure projects by Ghana Audit Service (GAS) on the other hand. In 2016 GAS
completed a first round of audits of infrastructure in 50 district assemblies and a second round
in 2018 in another set of 50 district assemblies.
4. We made recommendations in management letters to the respective districts. This report
is an analysis of key issues identified in the second round of 50 individual audits of the
assemblies for the underlisted stakeholders to address for improvement in the management
of infrastructure projects in the district assemblies. They are:
1 Brick-and-mortar; Project delivery and unfinished infrastructure in Ghana’s local governments (Martin Williams, Nov 2015)
2 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
i. Ministry of Local Government and Rural Development
ii. Local Government Service
iii. Regional Coordinating Councils
iv. National Development Planning Commission
v. Public Procurement Authority
vi. Administrator of District Assemblies Common Fund
Purpose and Objectives of the audit
5. The purpose of the audit was to identify areas that make district assemblies’
management of infrastructure projects inefficient and ineffective and reporting to Parliament
on the way forward in order to improve the level of performance in the development of
infrastructure in the assemblies.
6. Specifically, we determined the efficiency and effectiveness with which the selected
district assemblies identified, planned, procured contractors, supervised and monitored the
construction of capital projects in accordance with sound administrative principles, laws and
practices in order to meet the required quality of the projects.
Audit Scope
7. Individual performance audits were carried out in 50 district assemblies in nine out of
the then ten regions of Ghana in 2018. We examined two infrastructure projects in each
district procured from 2013 to 2017. The projects were funded with District Assembly
Common Fund (DACF) or District Development Facility (DDF). The list of sampled districts
covered in the audit is found in Appendix 1.
8. We examined each assembly’s:
identification, selection and planning of infrastructure Projects (Pre -contract
activities)
budgeting and financing of infrastructure projects
3 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
procurement of contractors
implementation, monitoring and supervision of contractors (Post contract
activity), and
impact of the completed projects on beneficiaries
Audit Methodology
9. In 2019, GAS completed the audit of infrastructure projects in 50 district assemblies
and sent management letters to the assemblies for the implementation of recommendations
we made. The recommendations centered on what the assemblies should do to improve the
systems of identification and planning of projects, procurement of contractors, supervision
and monitoring of projects and post project evaluation.
10. We analyzed the findings in the 50 management letters under the four themes of the
audit (Appendix 2). We compiled the number of assemblies meeting the criteria for each
theme. We then compiled the reasons why they were unable to meet the criteria. We offered
conclusions and recommendations to the stakeholders listed in Paragraph 4. The methodology
we used to audit the 50 district assemblies is described in Appendix 3. The classification,
source of funding and status of the projects we examined are shown in Table 1.
Table 1: Classification, source of funding and status of the 100 projects
Classification of
projects
Source of funding
TOTAL
Status of projects
No. of
Completed
projects
No. of
uncompleted
projects DACF DDF DACF/
DDF
IGF
Classroom 31 16 2 0 49 43 6
Health Care 28 6 0 1 35 31 4
Staff Quarters 1 3 0 1 5 5 0
Hostel 0 1 0 1 2 1 1
Market 1 0 1 0 2 2 0
Police Station 0 1 0 0 1 1 0
Office accommodation 2 0 0 0 2 1 1
Toilet 3 0 1 0 4 3 1
Total 66 27 4 3 100 87 13 Source: GAS compilation
4 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
CHAPTER TWO
DELIVERY OF INFRASTRUCTURE PROJECTS IN METROPOLITAN,
MUNICIPAL AND DISTRICT ASSEMBLIES
Background
11. Local governance in Ghana has undergone significant reforms following the coming
into being of the fourth republic. Article 35 (5d) of the 1992 Constitution requires the state
‘to take appropriate measures to ensure decentralization in administrative and financial
machinery of government and to give opportunities to people to participate in decision-
making at every level in national life and government’.
12. The Constitution established the District Assemblies’ Common Fund (DACF) and
provides that 10% of total government revenues be transferred and distributed to the
assemblies annually. The Common Fund has assisted in the implementation of various
projects in the districts, focusing on priority areas such as education, health care delivery,
portable water supply, market infrastructure, sanitation, roads and drains among others.
13. In addition to the DACF, there are also grants transferred from the central to the local
government, such as the District Development Facility (DDF) and Urban Grants. Given the
significant amount of money transferred to the Assemblies, the issue of accountability to
citizens for service delivery from the use of the funds is paramount to citizens. In this respect,
The Administrator of the DACF has entreated Civil Society Organizations and members of
the public to view the Fund as their asset and be vigilant to ensure quality in the work of the
Assemblies in using the funds they receive so that the nation, as a whole, will reap the utmost
benefit from the Common Fund (The Common Fund Newsletter, Issue 2 of December 2014).
Infrastructure development projects
14. Infrastructure facilities are put up to support primary, secondary and tertiary productive
activities. They are catalysts of development and at the same time their presence can serve as
5 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
indicators of development and play a crucial role in poverty reduction, economic growth and
empowerment for the rural poor.
15. Infrastructural development projects play a key role in development in the sense that,
adequate provision of infrastructural facilities enhances the quality of life in both urban and
rural economies (Laah, et al., 2014). That is, infrastructure is the backbone of economic
capacity, and so the development of infrastructure is a fundamental concern of both
governments and citizens.
16. Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana are responsible
for the overall development of the communities in their jurisdiction. They formulate, execute
plans and programmes for the overall development of their administrative areas. Given that
MMDAs are the vehicles through which government delivers its mandate to citizens, the
development of infrastructure is a necessity for government to deliver social services like
health and education to community members. To this end, MMDAs are to ensure that, in
accordance with the Public Financial Management Act that they deliver value for money on
funds spent by government in engendering infrastructure projects of good quality, within
budget and provided in time to serve the citizenry.
Functions of the Assembly
17. The MMDAs are required to perform all the functions conferred on them by the Local
Governance Act 2016, Act 936 and the Legislative Instruments that established them. Among
the functions the Assemblies perform are:
Management of the allocation of District Assemblies Common Fund and other grants
for the provision of public amenities, social infrastructure such as schools, water,
electricity, health and sanitation facilities amongst others.
Preparation and approval of development plans and budgets to regulate and control
physical development.
Ensures the judicious use of resources allocated to them for development purposes
6 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Laws and Regulations
1992 Constitution
18. Chapter 20 of the 1992 Constitution mandates the Ministry of Local Government to
formulate policies on decentralization and rural/urban development.
Local Government Service Act, Act 656
19. The Local Government Service Act 2003 (Act 656) requires the Local Government
Service (LGS) to design and deliver systems to set targets for and monitor the performance
of Assemblies. The Act further mandates the LGS to develop Guidelines on the acquisition
and use of human and financial resources by the Assemblies.
Local Governance Act 2016, Act 936
20. Local Governance Act 2016 (Act 936) mandates the District Assemblies to formulate
and execute plans, programmes and strategies for the effective mobilisation of the resources
necessary for the overall development of the district and also initiate programmes for the
development of basic infrastructure and provide municipal works and services in the district.
The MMDAs are required under Act 936 to perform any function that may be required under
any enactment (for example, the Public Procurement Act in relation to Procurement, the
National Development Planning Commission Act in relation to the preparation of
development plans, LGS Act in relation to staff capacity building, etc).
21. The Local Governance Act 2016 also regulates the functions of the Regional
Coordinating Councils (RCC). The Act requires the RCCs to monitor, and co-ordinate the
performance of the implementations of planned programmes and projects of the assemblies.
The RCCs are also to monitor the use of moneys mobilized by the district assemblies or
allocated by an agency of the central government to ensure that they are effectively managed.
7 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
National Development Planning Commission Act 1994, Act 480
22. The National Development Planning Commission Act 1994 (Act 480) mandates the
National Development Planning Commission (NDPC) to develop guidelines for the
preparation of development plans by the assemblies taking into consideration the resource
potential and comparative advantage of the different districts of Ghana. The Act requires the
NDPC to coordinate all development policies, plans, programmes and projects between the
national and local governments and provide framework for monitoring and evaluating the
implementation of government policies, programmes and projects at all levels including the
Metropolitan/Municipal and District Assemblies (MMDAs). The Commission also provides
support to Ministries, Departments and Agencies (MDAs) and District Assemblies in
building their capacity for effective monitoring and evaluation of their respective
development plans.
Public Procurement Act 2003, Act 663, amended to Act 914
23. The Public Procurement Act 2003 (Act 663) and its amendment authorises the Public
Procurement Authority (PPAu) to develop rules, instructions, other regulatory documentation
on public procurement and formats for public procurement documentation. The Authority is
also required to monitor and supervise public procurement to ensure compliance with
statutory requirements. The Authority is also required to build the capacity of public officials
involved in public procurement at various levels and develop, promote and support training
and professional development of persons engaged in public procurement, and ensure
adherence by trained persons to ethical standards. PPAu also provides Advisory services to
government including MMDAs on issues relating to public procurement.
8 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Key players and their Responsibilities
Key Player Responsibilities
National
Development
Planning Commission
Develops guidelines for the preparation of development plans by the assemblies
Make proposals for ensuring the even development of the districts of Ghana
Coordinate all development policies, plans, programmes and projects between the
national and local governments
Monitor and evaluate the implementation of government policies, programmes and
projects at all levels
provides support to MDAs and District Assemblies in building their capacity for
effective monitoring and evaluation of their respective development plans.
Ministry of Finance
Provide guidance to MMDAs in the preparation, implementation and monitoring of
budgets and revenues
Allocate the Budget financial resources efficiently, effectively and rationally to
sectors, MDAs and MMDAs
Releases funds to the Administrator of the District Assemblies Common Fund and
DDF Secretariat.
Ministry of Local
Government
Design and deliver systems to set targets for and monitor the performance of
Assemblies.
formulation of policies on decentralization, Rural/Urban Development
develop Guidelines on the acquisition and use of human and financial resources by
Assemblies
Public Procurement
Authority
Develop rules, instructions, other regulatory documentation on public procurement
and formats for public procurement documentation
Monitor and supervise public procurement and ensure compliance with statutory
requirements
Monthly publication of procurement Bulletin containing information on public
procurement, including proposed procurement notices of invitation to tender and
contract award information
Facilitate the training of public officials involved in public procurement at various
levels
Develop, promote and support training and professional development of persons
engaged in public procurement, and ensure adherence by trained persons to ethical
standards
Advise Government including Metropolitan, Municipal and District Assemblies on
issues relating to public procurement
Local Government
Service
Provide technical assistance to MMDAs and RCCs to enable them to effectively
perform their functions
Conduct organizational and job analysis for RCCs and MMDAs
Conduct management audits for RCCs and MMDAs in order to improve the overall
management of the Service, and
Assist the RCCs and MMDAs in the performance of their functions under Act 462,
Act 480, and any other enactment, etc
Administrator of the
District Assemblies
Common Fund
Develop and applies the formula for sharing the District Assemblies common fund
Releases the Share of the Assemblies’ common fund
Monitor and report on the utilisation of the DACF by the assemblies
Regional Co-
ordinating Council
Monitor, and co-ordinate the performance of the implementations of planned
programs and projects of the assemblies
Monitor the use of moneys mobilized by the district assemblies or allocated by an
agency of the central government
9 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Funding
24. For the 50 projects we examined, those solely funded with DACF exceeded the
budgeted estimates by 29.5%, whiles projects financed by DDF exceeded their budgeted
estimates by 55.6%. The cost of the projects funded with both DACF and DDF exceeded the
budgeted estimates by 29.0% whiles projects funded with IGF exceeded the budgeted
estimate by 71.7%. Details of the funding are shown in Table 2.
Table 2: Funding for the 50 MMDAs
Source of Funding No of
projects
Budget Actual
expenditure
% increase
DACF 66 9,110,368.62 11,793,510.04 29.5
DDF 27 2,455,386.81 3,820,933.54 55.6
DACF/DDF 4 674,435.14 869,765.51 29.0
IGF 3 300,000.00 515,005.36 71.7
Total 100 12,540,190.57 16,999,214.45
10 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Steps in the identification to implementation of projects in Assemblies
25. The steps assemblies go through to identify and implement an infrastructure project is
presented in Figure 1.
Figure 1: Diagram showing infrastructure projects delivery in MMDAs
Assembly Members
Unit Council
Area Council
Schedule 1 Dept.
Community Members
Community Leaders
EXECO
MCE/DCE
MCD/DCD
M/DPCU – (M/DPO, M/DBA,
M/DWE)
Budget Committee
Procurement Committee
RCC, F&A, Gen Ass, MOFEP
Engineer
M/DTR B
M/DCB
Tenderers
ETC – (M/DCE,
M/DCD)
Evaluation Panel
Contractor
Engineer
Works Sub-Committee
Monitoring Team
M/DCD
M/DFO
M/DBA
M/DIA
M/DPCU
Beneficiaries & Opinion Leaders
Project
Identification
Prioritised
List of
Projects
Planning &
Budgeting
Projects
for
Execution
Selected
Contractors Project
Execution
Completed
Projects
Impacts
Start
Procurement of
Contractors
End
11 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
CHAPTER THREE
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
26. This section presents an analysis of the findings of the audits in the 50 district
assemblies. Recommendations were made in the 50-district specific management letters to
be implemented by the assemblies. The findings have been grouped under the four thrust
areas as detailed in Appendix 2. The recommendations in this report are for the
supervisory/regulatory bodies of the assemblies to implement to prevent future violations of
rules and guidelines governing the implementation of capital projects.
IDENTIFICATION AND SELECTION
Involvement of community members in developing the DMTDP
27. We examined whether the assemblies involved the communities in developing the
District Medium Term Development Plan (DMTDP). This was to determine whether the
communities were involved in the selection of the two projects sampled for audit.
28. We found that 31 (62%) out of the 50 assemblies involved communities to identify
and select projects for execution. That is, departments, individuals and opinion leaders made
specific requests to their respective assemblies and the assemblies held public fora with
stakeholders who made inputs to the final plan. The quality of the public fora was however,
poor as it did not follow the guidelines of National Development Planning Commission
(NDPC). The public fora were mainly attended by opinion leaders rather than the general
community members. Also, altogether there should be a minimum of three public fora held
by each assembly to discuss the development of the DMTDP with the communities. All the
assemblies held only one public durbar to disseminate the content of the draft DMTDP.
Twelve out of the 31 assemblies documented the process of developing the DMTDP.
Officials of the 19 assemblies who did not document the processes claimed they involved the
community members even though they had no records to support their assertions. Responses
from interviews with community members of the remaining 19 assemblies corroborated the
12 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
assertions of the officials that they consulted a section of the community members in the
development of the DMTDP.
29. Our interaction with officials of NDPC indicated that, they provided training to the
District Planning Officers and other key staff of the assemblies prior to the development of
the DMTDP. Our observation was that the training by NDPC had very little impact on
developing a quality planning document that captured the real aspirations of the districts.
Conclusion
30. The assemblies were aware of the importance of involving the community members
in determining their needs for the medium-term plan. However, they did not follow the
guidelines by the NDPC. They did not use the questionnaires provided in the NDPC
guidelines in soliciting information from community members, neither did they do any
analysis of the insufficient data they collected during the fieldwork for the preparation of the
DMTDP. Proper development of the district hinges on the implementation of development
projects that emerges from the people.
Recommendation
31. The Local Government Service Secretariat (LGSS) should support the NDPC to re-
evaluate the content and form of the training they provide to the planning officers prior to the
development of the DMTDP, identify the inherent weaknesses preventing planning officers
from following the guidelines and redesign the training programme and put in controls to
enforce compliance by the planning officers.
PLANNING AND BUDGETING OF PROJECTS BY DISTRICT ASSEMBLIES
Inclusion of audited projects in the Assembly’s DMTDP, AAP and quarterly reviews of the
AAP
32. We examined whether the assemblies included the projects we examined in their
DMTDPs and Annual Action Plans (AAPs). Capturing these projects in the planning
documents gave an indication that the assembly was ready to commit resources to implement
13 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
the projects in the planning period. We also examined whether the assemblies reviewed their
AAPs quarterly. This was to assure us that, if the project was not originally planned for, it
would have been included in a quarterly updated plan so that a supplementary budget would
be prepared to cover the funding.
33. We found that, all the assemblies prepared the DMTDP, but six of the assemblies did
not include seven of the projects in the DMTDP at the time of its preparation. Forty-six (92%)
of the 50 assemblies prepared Annual Action Plans with 32 (64%) of them executing one or
both projects from their Annual Action Plans. In all, 25 projects were not captured in the
AAPs. The 25 projects were across 18 assemblies. Fourteen (28%) out of the 46 assemblies
that prepared Annual Action Plans reviewed their Action Plans quarterly.
34. We were informed that the projects that were executed outside the AAPs were
unilaterally decided by the DCEs and some from DACF Secretariat. (See Table 3).
Conclusion
35. An assembly not reviewing its AAPs quarterly indicated lack of understanding of the
essence of the planning document. The need for an Annual Action Plan to guide the
implementation of the assemblies’ programmes seems to be well-understood by the
assemblies since majority of the assemblies prepared AAPs each year. However, they did not
take the review of the action plans seriously as only 28 percent of the assemblies reviewed
their action plans to incorporate changes made in the original plan. They also did not show
commitment to carry through their own plans thereby executing projects outside the action
plans. This could be that the AAPs were prepared as a formality to meet the requirement of
obtaining funding from central government.
Recommendation
36. The Regional Coordinating Councils (RCCs) should strengthen their monitoring role
on the assemblies under their jurisdiction by reviewing AAPs of the assemblies and provide
them with feedback.
14 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
37. The Office of the Head of Local Government Service (OHLGS) should on yearly basis
sample district assemblies’ AAPs for review to collect data on weaknesses in the AAPs and
design training accordingly for the districts.
38. The Minister of Local Government should institute controls to prevent DCEs from
usurping the power of the people from unilaterally selecting projects outside the AAP to
implement.
Budgeting for Projects
39. We examined whether the assemblies captured the projects in the assemblies’ annual
budgets and if not, whether the projects were covered by a supplementary budget. This was
to assure us that the project would receive funding during its implementation.
40. Thirty-four (68%) out of the 50 assemblies captured either one or both projects in their
budgets. Four out of the 16 assemblies which did not include the projects in their budgets
prepared supplementary budgets to cover the projects. The remaining 12 assemblies did not
capture the projects in their budget neither did they prepare supplementary budgets to cover
the projects.
41. Fourteen out of the 16 assemblies with project not captured in the assembly’s budget
in the year of implementation were implemented as a result of the MCE/DCE’s decision. The
other two assemblies stated the projects were either emergency or priority projects from
DACF Secretariat. However, none of those projects were completed within the contract
period to support the claim of urgency. In all, 22 projects were not included in the assemblies’
composite budgets. The list of the Assemblies, the projects and actual periods of completion
are shown in Table 3.
15 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Table 3: List of Assemblies executing projects not in their budgets
S/N District
Assembly Project
Completed
in (mths)
Remarks
1 East Gonja
3 Unit Classroom Block at
Imamiya Islamic Primary
uncompleted Decision by
DCE
Hostel Facility at TI Training
School
uncompleted Decision by
DCE
2 Nkwanta South 3 Unit Classroom Block at
Alokpatsa DA JSS
uncompleted Decision by
DCE
3 Bosomtwe 1No. 3-unit Teachers Quarters
at Woarakese
17 Decision by
DCE
4 Gushegu 3 Unit Classroom Block at
Midwifery School at Gushegu
3 Decision by
MCE
5 Tatale-Sanguli
CHPS Compound at Bulikpali 9 Priority project
from RCC &
DACF Sec
3 Unit Classroom Block at
Kparabutabu
8 Priority project
from RCC &
DACF Sec
6 Ahafo-Ano
6 Unit Classroom Block at
Nfante
18 Decision by
DCE
CHPS Compound at Numesu 12 Decision by
DCE
7 Atebubu-Amanten 3 Unit Classroom Block at
Boniafo
12 Decision by
DCE
8 Suhum
1 No. 20-unit water closet with
mechanised borehole at
Akorabo
14 Decision by
MCE
9 Ejura Sekyedumase
CHPS Compound at
Hiawoanwo
19 Emergency
project
1No. 6-Unit Classroom Block
at Anyinasu
9 Decision by
DCE
10 Sekyere Central 1No. CHPS Compound at
Yereso
6 Emergency
project
11 Birim North
CHPS Compound at Old
Abirem
Uncompleted Decision by
DCE
4 Unit Office and 3 Unit
Travellers’ Shed at Old Abirem
15 Decision by
DCE
12 Kwahu South 24 Unit Market Stall at Bepong 10 Decision by
DCE
13 Asikuma Odoben
Brakwa
2 Unit Kindergarten Block at
Breman Ankaasu
1 Decision by
DCE
2 Unit Kindergarten Block at
Brakwa Eshiem
1 Decision by
DCE
14 Agotime-Ziope CHPS Compound at Agohome 13 Decision by
DCE
15 East Mamprusi
1 No 3-Unit Classroom Block
with ancillary facilities at
Nagboo
9 Decision by
DCE
16 Krachi East 1 No. CHPS Compound at
Kparekpare
26 Decision by
MCE
16 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Conclusion
42. Executing projects without planned budgets accounts for delays in execution of
projects and abandonment of projects. It also leads to low performance on the assembly’s
AAP. The implication of executing projects not captured in the budget and also not covered
by a supplementary budget is that funds earmarked for projects community members have
opted for will be diverted for such projects.
Recommendation
43. Ministry of Finance (MoF) and District Assembly Common Fund Secretariat should
check whether the projects assemblies submit for the release of funds are in their development
plans and yearly budget before approving their funding.
Procurement of Contractors for Assembly Projects
Procurement Plans
44. We examined whether the assemblies prepared Procurement Plans and updated them
quarterly as required by the Public Procurement Manual to incorporate revisions in the Action
Plans. Our expectation was that each assembly would have planned its procurement activities
for the projects under examination and followed the plan;
45. We found that although all the assemblies prepared Procurement Plans for each year
of the audit period, 38 (76%) out of the 50 assemblies captured at least one of the two projects
in the Procurement Plans. Five out of the remaining 12 assemblies updated their Procurement
Plans in the action year to incorporate the projects under audit. Twenty-six out of the 100
projects we examined were not included in Procurement Plans in the year of their execution.
Seven assemblies circumvented the approved procurement plans and implemented projects
without express approval from the assembly’s Entity Tender Committee. Many of the
Procurement Plans were not updated with actual implementation dates for the assemblies to
use to analyse their performance in procurement. In some, the time allowed for procurement
of contractors, implementation and handover of the project was about three months which
17 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
was unreasonable considering the district assemblies funding context. Assemblies attributed
this to the absence of Procurement Officers in the assemblies and used the Planning Officers
to double as procurement officers.
Conclusion
46. The quality of Procurement Plans prepared for use by most of the assemblies was poor.
Furthermore, some of the assemblies did not follow their Procurement Plans during the
procurement activities. This situation is worrying and must be checked.
Recommendation
47. The Public Procurement Authority (PPAu) should increase its monitoring role on the
procurement process in the assemblies and also make follow-ups on the assemblies for the
implementation of PPAu audit recommendations.
Tendering
48. We examined whether tendering was done in accordance with the Public Procurement
Act (PPA); the tender evaluation was in accordance with criteria stated in the instructions to
tenderers and whether the assemblies followed the PPAu template for evaluating tenders.
Also, whether the assembly encouraged fair competition among tenderers to ensure that
selected tenderers had the requisite experiences and capabilities to execute the projects to the
required quality.
49. We found that 49 out of the 50 assemblies prepared tender documents. Atebubu-
Amanten District Assembly, although advertised for its projects for tendering could not
produce any document to show what tenderers submitted for evaluation.
50. In all cases, a maximum of four tenderers submitted tenders after the assemblies placed
the advertisement in one daily newspaper. The number of tenderers submitting tenders were
mostly three, meeting the minimum number of tenders required to make the tender a success.
In 10 assemblies there was no evidence of purchase of the tender documents.
18 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
51. Thirty-six of the assemblies constituted evaluation panels of three with no member of
the District Tender Committee (DTC) or the District Tender Review Board (DTRB). In two
instances, a member of the DTC/DTRB was also a member of the evaluation panel. Many
assemblies could not produce tender opening information and minutes; there were tender
evaluation reports with no names of the evaluators or different names from the officers who
were commissioned to do the evaluation. Almost all the assemblies could not produce the
documents of the losing tenders. The evaluation reports did not conform with the template
from the PPAu. There were many inconsistencies and mistakes in the evaluation reports
showing the lack of expertise in procurement on the part of the evaluation panels.
52. We found that, although the PPAu periodically conducted procurement audits in the
assemblies, the assemblies did not seem to implement the recommendations of the PPAu and
still continued to commit the infractions the PPAu reported on.
Conclusion
53. The fairness in the competitions in all the tenders conducted by the assemblies was
low. Some of the assemblies violated the requirements of the PPA Manuals by including
members of the Entity Tender Committee (ETC) in the evaluation panel. The expertise
recommended by the PPA Manuals were normally not available in the assemblies and the
assemblies did not make any effort to locate such expertise outside the assembly to assist.
Recommendation
54. The PPAu should together with its stakeholders develop regulations for the PPA
(Amendment) Act 2016, Act 914 spelling out sanctions for non-compliance with the Act,
Manual and regulations.
55. The LGSS should liaise with the PPAu to train staff of the assemblies involved in
procurement on the preparation and evaluation of tenders.
Award of Contracts
56. We examined whether the appropriate review body gave the required approval where
the threshold of the Entity Tender Committee was exceeded and whether notification of
19 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
awards was sent to the winning tenderers and the assemblies ensured winning tenderers
accepted the award before signing contracts with them and also that the tenderers met the
conditions of award.
57. We found that 37 of the 50 assemblies submitted the evaluation report to the DTRB
for concurrent approval. Forty-nine out of the 50 district assemblies notified the tenderers
who won tenders. Forty-two of the assemblies ensured the selected tenderers submitted the
required performance security before contracts were signed. Twelve of the assemblies
notified losing tenderers and returned their bid security as stated in the Instruction to
Tenderers.
Conclusion
58. On the whole, assemblies did better in award of contracts but eight assemblies took
the risk of signing contracts without any form of bond to protect the assembly in the event of
the contractor’s non-performance.
Recommendation
59. The Ministry of Finance should ensure that a performance bond is made part of the
documents for the application of release funds by an assembly for payment to a contractor
for his/her first certificate.
Project Execution
Supervision and monitoring of Assembly Projects
Quality of works
60. We examined whether the works engineers visited the project sites to check whether
the contractors were executing works in accordance with the specifications. In seven out of
50 districts, there was evidence that the engineers visited the project sites at least once during
the execution phase.
20 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
61. We noted some defects in the construction works during our inspections. Some of the
defects were because there were no details for the contractors to follow and they ended up
using their own discretions to construct the buildings. This happened especially in the
construction of roofs. There were also instances of poor workmanship by the contractors who
did not follow the drawing or descriptions in the Bills of Quantities. For example, the
reduction in the thickness of concrete bed and the replacement of the cement and sand screed
with cement slurry. None of the engineers ensured the contractors carried out any of the tests
stated in the contract documents to ascertain whether the contractor did what the contract
specified. The engineers accepted the defective work and recommended payment to the
contractors. In these instances, we made recommendations for disallowance of the
expenditure in the district specific reports.
Conclusion
62. The quality of a number of the projects were poor as a result of poor supervision by
the Engineers who lacked the will to reject defective work. Another factor was from the
pricing of the Bills of Quantities (BOQ) by the Contractors which did not reflect the actual
prices for executing those items of work. A third factor was the increases in prices of materials
caused by delays by the assemblies in paying for work done and the assemblies’
unwillingness to adjust prices as a result of fluctuations. Thus, contractors mitigated their
losses by reducing the quality of work.
Recommendation
63. The LGSS should organise training programmes to improve the capacity of Engineers
in supervision and contract management.
Site meetings
64. We examined whether stakeholders participated in the project execution and also if
there were opportunities for the stakeholders to make their concerns known on the project.
We also checked whether the engineers held regular site meetings, the number of times the
site meetings were held and those who attended.
21 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
65. Eighteen (36%) out of the 50 districts held site meetings once during the life of the
project. The site meetings were mostly held on the day the site was handed over to the
contractors to start work. The people who attended the site handover meetings were mainly
assembly members, assembly staff, chiefs, community members, contractors and
representatives of the user agencies. All the assemblies complained of lack of funds to
conduct site meetings.
66. The assemblies indicated that, the communities could report any of their grievances to
the assemblies’ engineers for redress. But in many cases community members confronted
contractors directly for work which in their opinion were poorly executed.
Conclusion
67. The assemblies did not consciously conduct monthly site meetings as required by the
General Conditions of Contract. The assemblies did not seem to know the importance of site
meetings to the progress and quality of works and also that site meetings allow other
stakeholders of the projects to make input during the construction of the project.
Recommendation
68. The Regional Planning Coordinating Unit (RPCU) should request for information on
site meetings held in addition to the quarterly progress reports of the assemblies. Members of
the RPCU should occasionally attend assemblies’ site meetings.
Payment for works not done
69. We found that 44 (88%) of the 50 assemblies paid contractors for works they did not
execute. The items of work were captured in the BOQ and were supposed to be executed as
part of the contract. In some instances, the quantities stated in the BOQ were reduced or
inferior materials were used in place of the specified ones but no adjustment was made for
the price differences. For example, 0.5mm thick aluminium roofing sheets were specified in
the BOQ but the contractors ended up installing 0.3mm thick Aluzinc roofing sheets. The
engineers accepted them and made full payment to the contractors as if they installed the
specified material.
22 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
70. The total amount of money we compiled from the audit of the 50 districts as a result
of paying for work not executed amounted to GH¢810,105.27. See Appendix 4 for details of
each assemblies’ contribution to payment to contractors for work not executed.
Conclusion
71. The non-execution of items specified in the BOQs and the use of inferior materials in
lieu of specified ones reduced the desired quality of the works. Secondly, the assemblies did
not obtained value for money as they paid more than they should have. Thirdly, it gave the
impression that the engineers did not appreciate the need to ensure contractors executed their
own requirement of what should go into the project. Lastly, it could be an avenue of collusion
between some staff of the assembly and the contractor where the staff could benefit from the
excess money paid to the contractor.
Recommendation
72. The RCC should engage consultants to periodically audit samples of projects executed
by assemblies to check for payments made for works not done. Those responsible for the
payment should be made to refund the amount.
Handling of Variations
73. We found that contractors executed works that were not originally captured on the
contract drawings or in the BOQs. Such work items were variations to the contract under
Clause 4.2.d of the General Conditions of Contract used for the works. The General
Conditions of Contract specified the need for approval from the Employer before the
Engineer issues a variation. None of the variations executed was issued by the Engineer
through an instruction, neither did the Entity Tender Committee (Employer) approve any of
the variations. We found two cases where the contractors wrote to the DCE to request
variations in their contracts. This was wrong and showed the lack of understanding of the
Engineer of his role under the contract regarding changes in the contract.
74. For example, at Builsa South District Assembly, the Contractor requested for a
variation in the contract because to him, the quantities of work items he had executed differed
23 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
from the bills of quantities. The engineer prepared a payment certificate for the payment of
GH¢18,576.42 to the contractor. This was approved by the DTC and the payment was made.
The certificate did not show an itemised bill to show where the variations in quantities came
from.
Conclusion
75. Variations are common in construction contracts but they must be handled in
accordance with the Conditions of Contract and with prudence to prevent it being used as an
avenue to enrich unscrupulous staff and contractors. The engineers and members of the DTCs
did not demonstrate ability to deal with variations as required by the contract.
Recommendations
The LGSS should organise training programmes for Engineers and members of
the DTC to improve their capacity in the handling of variations in construction
contracts,
The Ministry of Local Government (MLG) should institute a control for
assemblies to provide justifications for variations to a contract to the RCC for
approval before variations are executed.
Payment of Contingency sum
76. Contingency sum in a contract generally serves to cushion the employer when there
are increases in cost arising out of variations to the contract, additional works or fluctuations
in the prices of materials. The Engineer who has the authority to certify the contractor’s work
is to seek approval form the Employer (in this case the DTC) before certifying additional cost
or issuing a variation to an amount stated in the Appendix to the contract. The contingency
amount is to be deducted in whole or in part when the final account is prepared to take account
of any additional cost.
77. A sample of 10 Assemblies paid the total amount of GH¢128,714.34 being
contingencies in their contracts to contractors without justifications on 12 of the selected
projects. The assemblies paid the contingencies to contractors:
24 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
as if it was part of the works executed by the contractor.
to cover variations to the contract which they could not justify or use the right procedure
to approve and pay.
78. We found that contractors were the ones who requested for variations rather than the
engineers initiating them and the assemblies paid. This circumvented the procedure in the
General Conditions of Contract used by the assemblies. Table 4 shows the 10 assemblies and
the respective amounts they paid to contractors.
Table 4: Sample of 10 assemblies that paid contingencies without proper procedures.
No.
MMDAs No. of
projects
Amount of
Contingency paid
GH¢
Remark
1 Adansi North 1 25,792.80 Contractor requested for additional works and was paid
all the contingency sum
2 Ahafo Ano North 1 3,906.70 Paid the amount out of the contingency sum of
GH¢4,127.33 without justification.
3 Amansie Central
2 4,000.00 Paid the amount out of the contingency sum of
GH¢4,152.00 without justification and approval.
4 Agotime Ziope 2 17,100.00 Paid GH¢5,500.00 for furniture and GH¢5,500.00 for
contingency works on Nurses quarters without
justification. Also paid GH¢6,000 on Police Station
project without justification
5 Asunafo South
1 4,694.30 Paid the whole of the contingency sum of GH¢4,694.00
and extra to contractor without justification
6 Bosomtwe 1 15,183.94
Paid the whole contingency sum of GH¢15,183.94 by
increasing some quantities in the substructure in the last
certificate.
7 Ho West
1 8,736.96 Paid the whole contingency sum of GH¢8,736.96 plus an
additional GH¢4,024.24 without justification and
approval.
8 Krachi East
1 45,100.00 Paid the amount out of the contingency sum of
GH¢45,454.55 for furniture without going through the
right procedure.
9 Sekyere Central
1 2,074.84 Paid the amount out of the contingency of GH¢2,537.88
without justification
10 Sene East
1 2,124.80 Paid the amount out of the contingency sum of
GH¢2,168.00 without justification
Total 12 128,714.34
Conclusion
79. The Assemblies have the tendency to use the contingency sum without due regard to
the principle of economy.
25 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Recommendation
RCC should monitor the Assemblies to ensure that they don’t pay contingencies to
contractors without justification and approval from the required authorities
MLGRD should ensure that assemblies do not include contingencies in their contracts
but constitute a general contingency fund for all projects to be implemented in the year
where application can be made to pay for additional cost with prior approval from the
respective RCC.
Completion of projects
80. We examined whether the projects were completed on or before the completion period
and found that projects in 17 (34%) out of the 50 districts were completed within the expected
completion period. Eleven out of the 33 districts that delayed in completing projects had no
documentation on file to show the contractors notified the assemblies about the delays. None
of the assemblies granted any contractor extension of time and no liquidated damages was
deducted from any of the contractors’ contract sums for delaying. The contractors did not
claim for interest on delayed payments from the assemblies although the assemblies delayed
in paying contractors. Twenty-three out of the 50 assemblies delayed in paying contractors
for periods of up to a year. Table 5 shows the list of assemblies and the periods their projects
delayed.
Table 5: Delay in completion of the infrastructure projects in selected MMDAs
No. MMDAs Name of projects Start date Expected date
of completion
Actual date of
completion
Delay in
completion
(Months)
1 Abura Aseibu
Kwamankese
1 No. 3-Unit classroom
block at Abura Dunkwa
Islamic School
04/08/2016 04/02/2017 12/04/2018 14
2 Adansi North 1 No. 3-Unit KG school
with Ancillary Facilities,
Fence Wall and
Provision of Mechanised
Borehole at Brofoyedru
24/02/2016 24/08/2016 27/02/2017 6
1No. 6-unit classroom
block, office and store at
Fumso
25/06/2015 25/04/2016 20/06/2017 14
3 Agona East 12/2015 06/2016 12/2016 6
26 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
No. MMDAs Name of projects Start date Expected date
of completion
Actual date of
completion
Delay in
completion
(Months)
1 No. 4-Unit teachers’
quarters at Agona Nsaba
4 Ahanta West 1No. 6-unit classroom
block with ancillary
facilities at Azani
11/04/2016 11/10/2016 Not completed as
at 06/2018
20
Construction of 2 –
Storey community clinic
(Ground floor) at New
Amanful
14/01/2015 14/07/2015 Not completed as
at 06/2018
35
5 Amansie
Central
1 No. CHPS compound
at Akatekyieso
10/09/2015 10/06/2016 Not completed as
at June 2018
24
Construction of a 1 No. 3
unit Nurses Quarters at
Jacobu
25/11/2015 25/05/2016 06/2017 13
6 Amenfi
Central
1 No.6-unit classroom
block with ancillary
facilities at Chira-
Nkwanta
20/03/2014 30/09/2014 04/03/2016 18
7 Asunafo
South
1No. CHPS compound at
Asibrem
14/01/2015 14/08/2015 Not completed as
at June 2018
34
1no. 6-unit classroom
block at Kukuom SHS
30/01/2014 30/07/2014 03/2015 8
8 Awutu Senya
East
1 No. 6-Unit classroom
block with ancillary
facilities (office, store,
teachers’ conference hall
and 1 No. 4-seater W/C
facility) at Gada
09/2015
03/2016 12/2016 9
CHPS Compound with
ancillary facilities at
Krispol city
09/2015 03/2016 12/2017 21
9 Banda 12-Unit Market Stalls
and Open Shed at Saase
13/07/2015 13/01/2016 27/07/2016 6
10 Birim North 4-Unit Offices and a 3-
Unit Travellers’ Shed at
New Abirim
09/2015 03/2016 Not completed as
at June 2018
27
11 Bodi 1No. CHPS compound at
Ahibenso
12/2013 04/2014 Not completed as
at April 2018
48
1No. 8-unit single storey
classroom Block at Bodi
SHS
12/2013 07/2014 Not completed as
at April 2018
45
12 East Gonja 3-Unit Classroom Block
and Ancillary Facilities
at Imamiya Islamic
Primary (Dagomba Line)
10/03/2016 10/09/2016 Not completed as
at May 2018
20
10-Unit Hostel Facility
at T.I. Training School
10/03/2016 10/09/2016 Not completed as
at May 2018
20
13 East
Mamprusi
09/2014 12/2014 Not completed as
at February 2018
38
1No. 3-Unit Classroom
block with ancillary
facilities at Nalerigu
Health Assistants
Training School
14 Ejura-
Sekyedumase
6-Unit Classroom Block
with an Office, a Store
18/08/2015 18/02/2016 30/03/2017 13
27 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
No. MMDAs Name of projects Start date Expected date
of completion
Actual date of
completion
Delay in
completion
(Months)
and a Staff Common
Room at Anyinasu
CHPS Compound at
Hiawoanwu
14/01/2016 14/06/2016 29/09/2016 3
15 Garu
Tempane
08/12/2016 08/06/2017 07/2017 1
CHPS Compound at
Farfar
16 Gushegu 3-Unit Classroom Block
at Midwifery Training
School, Gushegu
06/10/2016 06/04/2017 03/2018 11
3-Unit Classroom Block
3-Unit Classroom Block
with Office, Store, KVIP
and Urinal at Yawungu
JHS
21/03/2016 21/09/2016 22/12/2016 3
17 Jaman North 6-Unit Classroom Block
at Adadiem
26/03/2015 26/09/2015 09/09/2016 12
CHPS compound at
Jinini
26/03/2015 26/11/2015 Not completed as
at Feb.2018
27
18 Kintampo
South
3-Unit Classroom Block
with ancillary facilities
at Amoma SHS
- 08/2016 21/12/2016 4
CHPS Compound at
Agyina
- 03/03/2016 19/06/2016 3
19 Krachi East 07/01/2016 07/04/2016 14/12/2017 8
6 - Unit Classroom
Block at Betenase
20 Lower Manya
Krobo
1-No CHPS Compound
with 4-Unit Aqua Privy
Latrine at Nuaso
10/11/2015 10/05/2016 30/12/2016 7
16-Seater Aqua Privy
Latrine at Adjikpo
Yokunya
20/08/2016 20/12/2016 Not completed as
at June 2018
18
21 Kwahu South 3-Unit Classroom Block
with Ancillary facilities
at Atibie
03/2016 08/2016 09/2017 13
4 No.24 Unit Market
Stalls at Bepong
06/2015 03/2016 04/2016 1
22 Kwahu Afram
Plains North
3-Unit Classroom Block
with Ancillary at Faso-
Battor
09/2015 09/03/2016 10/2017 19
16-Seater W/C toilet
facility at Donkorkrom
02/2016 06/2016 Not completed as
at May 2018
23
23 Nkwanta
South
Fire and Ambulance
Station at Nkwanta
22/07/2016 01/2017 Not completed as
at June 2018
17
24 Sefwi
Akontombra
1No. 3-unit classroom
block, office and Store at
Kramokrom
24/05/2015 23/11/2015 03/2016 4
CHPS Compound at
Kwadwokrom
24/05/2015 23/11/2015 12/2016 13
25 Sekyere
Central
CHPS Compound at
Yereso
02/02/2016 02/06/2016 13/07/2016 1
28 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
No. MMDAs Name of projects Start date Expected date
of completion
Actual date of
completion
Delay in
completion
(Months)
1 No. 3-Unit Nurses
Quarters at Nsuta
24/09/2014 02/2015 19/05/2015 3
26 Sene East 3-unit Classroom Block
with Offices and Store,
3-seater KVIP Latrine at
Lala
09/2014 09/05/2015 10/2015 5
27 South Tongu 3-Unit Classroom Block
at Kua D/A JHS
20/10/2015 20/01/2016 11/2017 22
CHPS Compound at
Gonu Agbokope
20/10/2015 20/01/2016 11/2017 22
28 Sunyani West 6-Unit Classroom Block
at Amanfoso
22/01/2015 22/01/2016 22/06/2016 5
CHPS Compound at
Adoe
04/12/2014 04/12/2015 18/08/2016 8
29 Tatale
Sanguili
3-Unit Classroom Block
and ancillary facilities at
Kparabutabu JHS
14/12/2015 14/06/2016 05/09/2016 3
CHPS Compound with
2-Seater KVIP and
Urinal at Bulikpali
14/12/2015 14/06/2016 18/08/2016 2
30 Wa West 1 No. 40 bed
capacity children’s’
ward at Wechiau
14/07/2016 14/01/2017 29/05/2018 16
31 West
Mamprusi
1No 3-Unit
classroom block
with ancillary
facilities and 90
pieces of dual desks
at Namiyela
16/03/2016 16/09/2016 Not completed
as at March
2018
18
32 Wassa
Amenfi
East
1No. 3-unit
classroom block
with furniture and
ancillary facilities at
Oppon
27/2/2015 27/05/2015 27/05/2017 24
33 Zabzugu CHPS Compound at
Mognegu
07/04/2016 07/08/2016 27/02/2017 6
3-Unit Classroom
Block and ancillary
facilities at Kalegu
D/A JHS
07/04/2016 07/08/2016 16/05/2017 9
Conclusion
81. Completion rates for projects in the assemblies were poor. Many of the delays were
caused by lackadaisical attitude of contractors as a result of delay in payment by the
29 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
assemblies, although during the tender stage they all produced evidence of a line of credit to
fall on in case of liquidity problems by the assemblies. Some of the contractors worked at
their own pace without the Engineers prompting the contractors of their obligations under the
contracts. The assemblies’ monitoring systems were not effective as the assemblies’
management did not act on delays by contractors possibly because of their delay in paying
contractors.
Recommendations
82. The RPCU in reviewing the annual plans of the assemblies should ensure the number
of capital projects embarked on by the assemblies are related to their previous year’s
performance.
83. The LGSS should liaise with PPAu to train assembly officials to improve the process
of selecting contractors for assembly projects.
Payment for works
84. We examined whether the assemblies paid contractors the amount due within time,
and observed controls on expenditure to ensure contractors were not overpaid and also that
contractors were adequately resourced to execute their contracts.
85. We found that 43 (86%) out of 50 districts settled all payments due contractors for
works done (for both completed and uncompleted projects). We also found that 27 (54%) out
of the 50 assemblies paid contractors the amount due within 28 days payment period in the
contract. The other 23 assemblies delayed in paying contractors for periods of up to a year.
86. Seventeen (34%) out of the 50 assemblies observed controls on expenditure outlined
in the Financial Memorandum for District Assemblies. These controls included contractors’
requests for payment (this often came as a letter asking to be paid rather than the contractor’s
valuation of work done), preparation of Interim Payment Certificate (IPC) by the Engineer,
monitoring reports, warrants and pre-audit of Payment Voucher.
87. We found that, the assemblies that were purported to have paid contractors’ IPC on
time did not encourage contractors to present their valuations for work done until the
30 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
assemblies received their share of the DDF or DACF. Thus, generally, assemblies were
unable to pay contractors on time for the works to be executed on or before the contract
period.
Conclusion
88. Payment to contractors was a serious problem in all the assemblies. In most cases it
was the advance mobilization payment that was made on time. All other payments were not
regular as envisaged by the Conditions of Contract. Controls for payments were often violated
by the District Chief Executives DCE), District Coordinating Directors (DCD) and the
District Finance Officers (DFO). The DCE, DCD and DFO implemented payment without
the involvement of the Budget Officer and Internal Auditor.
Recommendation
89. MoF, DACF and DDF Secretariats should ensure regular and timely release of funds
to the assemblies to enable them to pay contractors on time.
90. The RCCs’ internal Auditors should check and report on assemblies who violates
payment controls for disciplinary action to be taken against the DCEs.
Issuing of contractual certificates
91. We examined whether the assemblies issued contractual certificates to contractors at
the stipulated times. The certificates were; the Completion Certificate, Taking over
Certificate, Defect Liability Certificate, and the Final Certificate (release of the contractor’s
moiety and any other outstanding claims). Contractual certificates outline the responsibilities
of the contractual parties at each stage of the project. For example, the issuance of the
completion certificate empowers the employer to take over the project from the contractor
thereby relieving the contractor of the possession of the site given to him at the beginning of
the contract. It also marks the beginning of the defect liability period which allows the
employer to observe structural defects within a specified period and asks the contractor to
correct any such defects.
31 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
92. We found that 18 (36%) of the 50 assemblies issued Completion Certificates, five
(10%) assemblies issued Defects Liability Certificates and three (6%) assemblies issued
Taking-over Certificate. Many of the engineers did not issue the contractual certificates to
the contractors because they did not understand the importance as well as the role the
certificates play in contracts.
93. We also noted that the engineers did not adequately pursue provisions in the contract
documents and as a result, lost sight of the need to comply with Clauses 54 to 56 of the
General Conditions of Contract on the issuance of the various distinct certificates to
contractors.
Conclusion
94. Generally, the assemblies did not attach importance to issuing the contractual
certificates mentioned above although they were contractually important documents
signifying important milestones of the contract and the transfer of risk from one party to the
other. For example, the issuance of the Completion Certificate empowers the employer to
take over the project from the contractor thereby relieving the contractor of the possession of
the site given to him at the beginning of the contract making the employer responsible for the
building thereon.
Recommendation
95. The MLGRD should:
involve the RCC to request for evidence of the issuance of all contractual certificates
from the assemblies before they provide approval to them to release retentions to
Contractors
institute a control in the payment of the retention to contractors for the assembly to
show proof to the RCC of the issuance of all contractual certificates to contractors for
the RCC to approve for the assembly to release the retention to the contractor.
32 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Assessing Benefits and Impacts of Assembly Projects
Impact of Projects
96. We examined whether the assemblies evaluated the implementation of the projects to
identify good practices and challenges in order to use the lessons learnt to improve future
implementation of projects. We also examined whether the impact of the projects envisaged
at the preparation of the DMTDP had been achieved.
97. We found that none of the 50 assemblies evaluated the implementation of its projects
to ascertain the successes and challenges of implementation in order to apply lessons learnt
on future projects. We also found that none of the 50 district assemblies carried out an impact
assessment on the projects executed to know if the projects had achieved the objective for
which they were constructed. The failure of the Metropolitan Municipal and District
Assemblies’ (MMDAs) to conduct post-project evaluation denies the MMDAs valuable
information that will assist them in planning and executing future projects.
98. The projects were purported to have been identified, planned and implemented by the
District Assemblies to meet the needs of the communities. We inspected the two selected
projects in each of the selected District Assemblies and interviewed key stakeholders on the
impact of the projects in their communities.
99. Largely, key stakeholders agreed that the projects had been beneficial to the
communities. Stakeholders in 29 District Assemblies stated that both projects had been
beneficial to their communities. In 15 District Assemblies, the stakeholders were of the view
that only one of the projects had impacted the community positively, whiles in six District
Assemblies the stakeholders said the projects had no impact. Case examples are presented in
Case Examples 1 to 6.
33 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Case Example 1: Kwahu Afram Plains North District Assembly (KAPNDA)
Case Example 2: Gushiegu Municipal Assembly
100. In some few assemblies, key stakeholders interviewed expressed their displeasure with
the projects, claiming that the projects had not been beneficial to the communities, as
described in Case Examples 3 and 4.
In the Kwahu Afram Plains North District Assembly (KAPNDA) the head teacher of the school with a newly
constructed Classroom Block at Faso-Battor, attested that, the project had been very beneficial. He added that
prior to the construction of the classroom block the school held classes under sheds and were affected by
unfavourable weather conditions. Enrolment data for the Faso-Battor Basic School obtained from the District
GES Directorate showed progressive increase in enrolments since the Classroom Block was provided for use
from 2015/16 academic year. See Table 1.
Table 1:Increase in enrollment at Faso-Battor Basic School
Academic
Year
Level
2014/15 2015/16 2016/17 2017/18
Kindergarten 38 74 30 56
Primary 99 112 140 199
Junior High School 17 ---* 18 24
TOTAL 154 186 188 279
*Disruption of school activities due to outbreak of violence between Fulani herdsmen and indigenes resulting
in no JHS classes.
Source: District Education Directorate, GES, Kwahu Afram Plains North District on 16 May 2018
At the Gushiegu Municipal Assembly (GMA) the students said they were happy with the new classroom
block at the Midwifery Training school as it had eased their congestion situation. According to the
Principal of the school, she was happy with the classroom block, since the school is able to organise
events and functions such as examinations and meetings in the large hall (open classroom) and that the
students now have a place to study.
34 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Case Example 3: Ahafo Ano North District Assembly
Case Example 4: Amansie Central District Assembly
Projects Completed and In Use
101. Of the 50 District Assemblies, 39 had the two selected projects completed, 10 districts
had one of the projects completed whiles one districts had none of the projects completed at
the time of the audit.
102. Out of the 36 districts that had both projects completed, 26 districts were using the two
projects at the time of the audit. Of the 10 district assemblies that had one of the two projects
completed, three of the districts were using the completed and uncompleted projects. This
means that some of the districts were not putting their completed projects to use, whiles other
districts were using projects that were not completed.
In the Ahafo Ano North District Assembly (AANDA) the CHPS compound was not in operation due to
the absence of equipment, water and electricity. The facility has also not been handed over to the Ghana
Health Service. Community members had to travel to neighbouring towns like Subriso and Tepa for
health care which had not been helpful in cases of emergency. A community member recounted her
personal story which led to the loss of her baby — ‘When my labour pain started, I got to the health
facility at Subriso I was referred to Tepa, then to Bechem. At Bechem, I was again referred to Duayaw
Nkwanta where I finally lost my baby’
In the Amansie Central District Assembly (ACDA), a completed Nurses Quarters was being used for a
different purpose. The project had been allocated to junior staff of the Assembly instead of nurses, as
advertised. The Assembly explained that they had given their CHPS facility to accommodate the District
Health Director and the NHIS District Director. As such it had taken over the Nurses Quarters as a
replacement to accommodate its junior staff.
35 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Case Example 5: Wa West Municipal Assembly
Case Example 6: Kintampo South District Assembly
Conclusion
103. Although the assemblies undertake quarterly monitoring and evaluation of their
projects, they do not evaluate whole projects for good practices or challenges in order to help
them improve upon their performance. It was also not customary for the assemblies to
compare actual benefits of their projects with intended benefits at the completion and use of
their capital projects.
At the Wa West Municipal Assembly (WWMA), the audit team found that a 40-bed capacity ward project
was completed but was yet to be handed over to the Assembly for use by the Wechiau community. Also,
a 4-Unit Classroom block which had been handed over to the Assembly by the contractor in 2017, was
yet to be put to use. The District Coordinating Director explained that, the classroom block was built to
be used as a Community Health Nursing Assistant School which had not yet been instituted. According
to the DCD the Assembly is in the process of obtaining accreditation from the National Accreditation
Board (NAB) to start operating the nursing training school.
At Kintampo South District Assembly (KSDA), the two completed projects—a CHPS compound and a
classroom block— were not in use. According to District Planning Officer and the District Works
Engineer (DWE) the CHPS Compound at Agyina was handed over to Ghana Health Service. However,
the District Health Director countered that the facility had not been handed over to the Health Directorate
because the Assembly had not equipped the facility with the requisite equipment, furniture and electricity
supply hence it could not be used in its current status. The 3-Unit Classroom block was not in use due
to misunderstanding between management of the school and the Chiefs and opinion leaders of Amoma.
The District Coordinating Director indicated that the Assembly was playing a mediating role between the
concerned parties to resolve the impasse to ensure the classroom block is put back to use to achieve its
intended purpose.
36 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Recommendation
104. The NDPC should:
train Planning Officers on conducting project evaluations and impact
evaluation on projects executed, and
encourage Assemblies to include intended and actual benefits of projects in
their Annual Progress Reports on completed projects for review by the NDPC.
Uncommon but Significant Audit Findings
Insolvent contractor assigns contract to another contractor
105. Clause 7 of the Conditions of Contract permits a contractor to subcontract with the
approval of the Project Manager. However, the contractor may not assign the contract without
the approval of the employer in writing.
106. We found that at Adaklu District Assembly (ADA), M/S Exquisite Construction
Limited wrote to the DCE informing ADA that the firm had assigned its contract with ADA
to M/S Delideyi Company Limited and that payments under the contract were to be made in
the joint names of M/S Delideyi Company Limited and National Investment Bank (NIB) Ho.
ADA went ahead to make payment as instructed by M/s Exquisite Construction Ltd without
analyzing the contractual implications, consultations and approvals.
107. We also found that Bismark Gbediame who signed the contract as Managing Directors
for M/S Exquisite Construction Limited was also the Managing Director of M/S Delideyi
Company Limited.
Conclusion
108. The Adaklu DA did not analyze the implications of the assignment of the contract to
a third party to put the necessary precautions in place before accepting the new relationship
by virtue of their subsequent action. The Assembly did not analyze the implication of a
Managing Director of a distressed company assigning the contract to himself under a new
37 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
company. The execution of the contract delayed unnecessarily as the parties had to go to court
to resolve issues relating to the contractual relationship and payments.
Recommendation
109. We recommend that the assembly should inform their respective RCC for advice when
faced with situations of this nature.
Overall Conclusion
110. From the foregoing we conclude that the assemblies although, they had the staff with
the minimum qualifications to execute their tasks, seems to lack the enthusiasm and attitudes
to achieve what they plan to do. They were lackadaisical, lacked knowledge and skills to
deliver on their outcomes. The district assemblies are the foundation unit of development of
the nation and as such need to be strengthened to be pillars for national development.
111. The DPOs did not provide the right leadership and experience in leading the
preparation of the MTDP. Community members were not actively involved in the preparation
of the MTDP, making the document lack the authority from which all capital projects of the
districts should flow from. The assemblies breached the social contracts with the
communities by executing projects outside of the MTDP.
112. Annual planning, procurement planning, tendering and implementation of capital
projects were poorly performed thus the outputs the assemblies eventually got of the projects
did not meet the building code. These projects are not likely to last long judging from the
poor materials used, accepting lesser sizes than what was specified and paying contractors
for work not done.
113. The assemblies tried hard to follow the PPAu standard format for preparing tender
documents but the documents seemed to have been mechanically produced. The tendering
processes were mostly suspicious and smacked of skewing the projects for particular
tenderers who were not necessarily competent.
114. The engineers showed very little ability to supervise the construction works to meet
the specifications provided in the BOQs. They accepted defective work and blamed their poor
38 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
performances on lack of tools to check the executed works and also lack of transport to visit
project sites. The monitoring structures in the assemblies did not work effectively as
monitoring teams just signed off valuation documents without understanding the contents.
39 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
APPENDICES
APPENDIX 1- List of the 50 Districts Audited
District name District
Capital
District name District Capital
1 Wa West Wechiau 26 Bawku West Zebilla
2 Nadowli Kaleo Nadowli 27 East Mamprusi Gambaga
3 Builsa South Fumbisi 28 West Mamprusi Walewale
4 Tolon Tolon 29 Gushiegu Gushiegu
5 Kintampo South Jema 30 Tatale Sanguili Tatale
6 Banda Banda 31 Zabzugu Zabzugu
7 Jaman North Sampa 32 Nkwanta South Nkwanta
8 Sunyani West Odumasi 33 Krachi East Dambai
9 Bosomtwe Kuntunase 34 Ho West Dzolopuita
10 Afigya Kwabre Kodie 35 Adaklu Agotime Kpetoe
11 Ahafo-Ano North Tepa 36 Agotime Ziope Kpetoe
12 Asunafo South Kukuom 37 Atebubu Atebubu
13 Bodi Sefwi Bodi 38 Ejura Sekyedumase Ejura
14 Sefwi Akontombra Sefwi
Akontombra
39 Sekyere East Effiduase
15 Wassa Amenfi East Wassa Amenfi 40 Sekyere Central Mampong
16 Wassa Amenfi Central Manso Amenfi 41 Sene East Kajeji
17 Amansie Central Jacobu 42 Kwahu Afram Plains
North
Donkorkrom
18 Adansi North Fomena 43 Kwahu South Mpraeso
19 Wassa East Daboase 44 Birim North New Abirim
20 Ahanta West Agona
Nkwanta
45 South Tongu Sagokope
21 Abura Asebu
Kwamankese
Abura Dunkwa 46 Lower Manya Odumase Krobo
22 Asikuma Odoben Brakwa Bremen
Asikuma
47 Akuapim South Aburi
23 Agona East Agona Nsaba 48 Suhum Suhum
24 Awutu Senya East Kasoa 49 Bole Bole
25 Garu Timpani Garu 50 Gonja East Salaga
40 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
APPENDIX 2 - Assessment areas and sub-components
Assessment Area Sub component
1 Initiation of Capital projects
1. Identification & selection of projects
2. Planning, Budgeting & Financing of
Projects
2 Procurement and contracting
3. Project Tendering
4. Project Contracting
3 Project Execution 5. Monitoring & Supervision
4 End of Project assessment &
Benefit
6. Post implementation evaluation
7. Project generated benefit
41 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
APPENDIX 3 – Methodology for auditing the 50 District Assemblies
Audit methodology for the 50 Districts
115. In 2014, USAID/Ghana through their Consultant, Social Impact Inc designed the
GSAM project and scientifically made a selection of 150 district assemblies for the GSAM
study. The first fifty district assemblies received social accountability audits. The next 50
district assemblies received hierarchical audits and the last 50 districts assemblies formed a
control group where no audit was carried out on them. This 50 district assemblies comprised
assemblies that CARE International and its partners conducted social accountability audits
on in 2016. The reason for selecting this set of 50 district assemblies was to determine
whether there had been some improvements in the performance of the assemblies after
receiving the social accountability audits.
116. Fourteen audit teams were set up to carry out the performance audits in the 50 district
assemblies. The auditors were a made up of Architects, Civil Engineers, Quantity Surveyors,
Valuers, Public Administrators, Accountants, Environmental Scientists and Social Scientists.
Audit Service recruited two Civil Engineers as external experts to complement the expertise
of the auditors.
117. The audit teams in collaboration with the engineers of the assemblies selected two
infrastructure projects from the list of all projects executed from 2013 to 2017 in the
assemblies. These projects were either funded with DACF or DDF. These were projects that
the assemblies had control over as opposed to GETFund projects or other donor-funded
projects which the assemblies’ control was minimal. The two capital projects were completed
or were in progress. The selection of the projects was based on cost, i.e. expensive projects
were selected in favour of less expensive ones. The classification and source of funding of
capital projects we examined are shown in Table 1.
118. The two projects selected from each of the district assemblies enabled the auditors to
examine the processes the assemblies went through in identifying and selecting the projects,
planning and budgeting for the projects, procuring contractors for the construction of the
42 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
projects, supervising and monitoring of the projects and also evaluating work done by the
assembly and assessing the benefits to the communities.
119. To answer the questions in our survey tool, the teams employed the following methods
to gather information for the audit;
Documentary reviews
Interviews
Inspections
Documentary reviews
120. The audit team reviewed and extracted information from the assembly’s files. The files
included project files, tender and contract documents, District Planning Coordinating Unit
(DPCU) meeting files, contract registers, payment files, quarterly and annual reports, Tender
evaluation reports and Monitoring and Evaluation reports, Executive Committee meeting
files, Sub-committee meeting files and payment vouchers.
Interview with responsible persons
121. In the course of the audit, the team extracted testimonial evidence from key people
involved in project identification, planning and implementation. The officials provided
answers to questions and insights to operations of the assemblies and also explained why
things were in the conditions the auditors met. Officials interviewed included the Chief
Executives, Coordinating Directors, Works Engineers, Planning Officers, Finance Officers,
Budget Analysts, Internal Auditors, past Works Sub Committee members, former Assembly
members, user agencies, etc.
122. The audit teams also interviewed a sample of community members and beneficiaries of
projects to make an assessment of the impact of the project on the community.
Inspection of projects
123. In each district, the audit team visited the two projects under examination and collected
information on the existing condition of the projects. The information from the site
inspections included the status of the project, measurements of the building, type of windows,
doors and roof. The audit team compared the information with the drawings, specifications
43 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
and Bills of Quantities for the projects to determine whether specifications have been
complied with.
Audit questions and assessment criteria
124. The audits were to answer four main questions on the assemblies’ medium-term, annual
and procurement planning, competitiveness of tendering, supervision and monitoring of the
projects and impacts of the projects. See Appendix 3 for a detailed list of the Audit Questions
and the Audit Criteria used for the audit of the 50 districts.
44 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
APPENDIX 4 - Audit questions and Assessment Criteria used for the audit of
the 50 District Assemblies
1) To what extent did the assemblies ensure that capital projects that were awarded for
construction were selected through participatory approach? (Planning, tendering,
implementation and post-project impacts.
Criteria: Selection of capital projects for construction is to be based on the needs
assessment conducted by the assembly in consultation with stakeholders of the
Assembly as contained in the District Medium-Term Development Plan (DMTDP).
The DMTDP seeks to serve as a concrete representation of the development needs and
priorities of the people resident within the jurisdiction of the Assembly.
2) Were the selected capital projects captured in the DMTDP and Annual Action Plan of
the Assemblies?
Criteria: All capital projects of the Assembly are captured in the District Medium-
Term Development Plan (DMTDP) which the Assembly prepared within the context
of the National Medium-Term Development Policy Framework.
3) Were the Assemblies’ tender practices competitive?
Criteria: The District Assembly should follow the Public Procurement Act, Act 663,
2003 for the procurement of goods and service.
4) To what extent were the Assemblies able to ensure that contractors executed contracts
according to the contract terms (quantity, cost and time)?
Criteria: Capital projects should be executed in accordance with the specifications in
the contract.
5) Were the Assemblies able to procure the necessary funds to pay the contractors on
time?
45 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
Criteria: According Government of Ghana General Conditions of Contract Section
43, Payments shall be adjusted for deductions for advance payments and retention.
The Employer shall pay the Contractor the amounts certified by the Project Manager
within 28 days of the date of each certificate. If the Employer makes a late payment,
the Contractor shall be paid interest on the late payment in the next payment. Interest
shall be calculated from the date by which the payment should have been made up to
the date when the late payment is made at the prevailing rate of interest for
commercial borrowing for each of the currencies in which payments are made.
6) Did the Assemblies carry out post-project impact assessment?
Criteria: The District Assembly is expected to carryout post-project impact assessment
to ascertain whether project objective were met and identify lessons learnt to inform
future decision making
46 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
APPENDIX 5 – Details of amounts each assembly paid to contractor for work
not executed
REGION DISTRICT AMOUNT (GHC) TOTAL (GHC)
Ashanti
Adansi North -
Afigya Kwabre 1,000.00
Ahafo Ano North 63,961.70
Amansie Central 13,001.00
Bosomtwe 14,959.44
Ejura Sekyedumase 3,092.00
Sekyere East District 13,642.00
Sekyere Central -
SUB-TOTAL 109,656.14
Brong Ahafo
Asunafo South -
Atebubu Amanten 45,779.55
Banda 6,200.00
Jaman North 12,858.50
Kintampo South 15,024.00
Sene East 16,364.80
Sunyani West 12,065.00
SUB-TOTAL 108,291.85
Central
Abura Asebu Kwamankese 2,904.00
Agona East 1,768.00
Asikuma Odoben Brakwa -
Awutu Senya 15,404.40
SUB-TOTAL 20,076.40
Eastern
Akuapim South Municipal 2,240.00
Birim North District 51,210.47
Kwahu Afram Plains 66,370.00
Kwahu South District 5,719.80
Lower Manya Krobo 19,415.00
Suhum Municipal 8,643.60
SUB-TOTAL 153,599.87
Northern
Bole 47,864.52
East Gonja Municipal 12,493.00
East Mamprusi 18,320.41
Gushegu Municipal 52,069.00
Tolon 15,133.50
Tatale Sanguili District 36,388.00
West Mamprusi 6,622.00
Zabzugu District 63,253.00
SUB-TOTAL 252,143.43
Upper East
Builsa South 13,734.50
Bawku West District 24,435.96
Garu Tempane 8,125.00
SUB-TOTAL 46,295.46
Upper West
Nadowli- Kaleo District 8,702.18
Wa West 12,748.00
SUB-TOTAL 21,450.18
Volta
Adaklu 15,891.94
Agotime-Ziope 2,210.00
Ho West 4,213.00
Krachi East Municipal 3,200.00
Nkwanta South District
South Tongu District 816.00
SUB-TOTAL 26,330.94
47 | ANALYSIS REPORT OF THE AUDITOR GENERAL ON PERFORMANCE AUDITS ON 50 DISTRICT ASSEMBLIES UNDER GHANA’S STRENGTHENING ACCOUNTABILITY MECHANISM 2
REGION DISTRICT AMOUNT (GHC) TOTAL (GHC)
Western
Amenfi central District 15,340.00
Ahanta West -
Sefwi Akontombra District 7,196.00
Bodi District 580.00
Wassa Amenfi East Municipal 47,760.00
Wassa East District 1,386.00
SUB-TOTAL 72,262.00
GRAND TOTAL 810,105.27
Mission
Statement
The Ghana Audit Service exists
To promote
·
good governance in the areas of transparency,
accountability and probity in Ghana’s public financial
management system
By auditing
·
to recognized international standards and reporting
our audit results
And
· reporting to Parliament