Ghanaian Metropolitan, Municipal, and District Assemblies (MMDAs) that have fulfilled reporting requirements will receive their second-quarter District Assemblies Common Fund (DACF) transfers this week. This disbursement, affecting most assemblies, is a critical step in local development funding.
The DACF Administrator, Mr. Michael Harry Yamson, confirmed that funds are ready for compliant assemblies. He stated that those who have met the conditions will receive their money between Friday and the following Friday. Four assemblies, however, are yet to meet the necessary requirements and will have to wait until they submit their returns. This process ensures that public funds are released only to assemblies that adhere to established reporting standards.
This development is part of a broader effort to strengthen financial accountability and decentralisation in Ghana. The DACF has implemented stricter compliance mechanisms, requiring assemblies to submit financial returns through the Integrated Financial Management Information System (GIFMIS). This system helps monitor how funds are used and ensures transparency in local governance. The first-quarter transfer process highlighted delays from some assemblies, but the DACF maintained its stance that compliance is mandatory before funds are released.
Mr. Michael Harry Yamson, Administrator of the DACF, emphasised the importance of these reforms. He stated, “Everybody else will get their money between Friday and the following Friday, and those who don’t comply, just wait. Your money is at the Central Bank and whenever you comply, you’ll get it.” He also urged assemblies to strengthen their internally generated funds (IGF) to reduce over-reliance on central government transfers. This includes increasing revenue through property rates, market levies, and other charges linked to local economic activities.
The implications of these transfers are significant for local development. Timely access to DACF funds allows MMDAs to implement projects and provide essential services to their communities. The push for stronger IGF also signals a shift towards greater fiscal autonomy for local governments. This strategy aims to create more sustainable local economies and reduce dependence on the central government. The DACF is also exploring incentives for assemblies that increase their own revenue generation.
Further reforms are underway to improve transparency through digital systems, such as the Intellects platform. This platform consolidates financial and operational information, allowing the DACF to track returns, bank reconciliations, and development projects down to the electoral area level. Mr. Yamson noted, “We’ve built a system that is live, that is transparent and that is accurate. Accurate to electoral area.” This enhanced monitoring ensures that public resources are effectively translated into sustainable development. The DACF has also launched the Community Partners Fund to mobilise additional resources from various stakeholders, including citizens and the diaspora, to support local development projects.