Auditor-General Flags GH¢3.2 Million DACF Overspending by Eight Upper West Assemblies

The Auditor-General has uncovered widespread non-compliance with the District Assemblies Common Fund (DACF) expenditure guidelines in the Upper West Region, with eight Metropolitan, Municipal and District Assemblies (MMDAs) overspending on administrative expenses by more than GH¢3.19 million during the 2025 financial year.

The findings are contained in the Report of the Auditor-General on the Management and Utilisation of the District Assemblies Common Fund and Other Statutory Funds for the Year Ended 31 December 2025.

According to the report, the Upper West Region received total DACF allocations of GH¢92,977,199.60 in 2025. After deductions at source amounting to GH¢3,247,313.74 for service providers, the HIV/AIDS programme and National Association of Local Authorities of Ghana (NALAG) dues, the Assemblies received net cash transfers of GH¢89,729,885.87, representing 96.51 per cent of the total allocation.

Eight Assemblies Breached Spending Ceiling

The Auditor-General noted that under the 2025 DACF Utilisation Guidelines, issued pursuant to Section 126(3) of the Local Governance Act, 2016 (Act 936), Assemblies are required to spend no more than five per cent of their total DACF allocation on administrative expenses. However, eight Assemblies failed to comply with the directive.

The Assemblies collectively received GH¢66,529,497.78 in DACF allocations, allowing them to spend a maximum of GH¢3,326,474.89 on administration. Instead, they spent GH¢6,523,204.15, exceeding the approved limit by GH¢3,196,729.26.

The worst offender was the Jirapa Municipal Assembly, which overspent by GH¢1.54 million, representing 381.5 per cent above the allowable administrative expenditure.

Find below the eight assemblies cited in the report

Name of Assembly	Total DACF Allocation	Allowable 5% For Admin. Expenses	Actual Disbursement on Admin. Expenditure	Excess Disbursement on Admin. Expenses	Percentage Overspent on Admin. Expenses
Daffiama Bussie Issa District	7,408,452.87	370,422.64	784,340.58	413,917.94	111.74%
Jirapa Municipal	8,077,976.01	403,898.80	1,944,763.66	1,540,864.86	381.50%
Lambussie District	7,756,637.97	387,831.90	508,371.60	120,539.70	31.08%
Lawra Municipal	7,652,385.02	382,619.25	779,690.48	397,071.23	103.78%
Nandom Municipal	7,682,397.56	384,119.88	814,933.42	430,813.54	112.16%
Sissala East Municipal	8,173,434.00	408,671.70	464,446.30	55,774.60	13.65%
Wa East District	8,912,651.55	445,632.58	480,988.13	35,355.55	7.93%
Wa Municipal	10,865,562.80	543,278.14	745,669.98	202,391.84	37.25%
Total	66,529,497.78	3,326,474.89	6,523,204.15	3,196,729.26	96.10%

Assemblies Explain Overspending

In its response to the audit findings, the Wa Municipal Assembly said discussions were ongoing with the Ministry of Local Government, Chieftaincy and Religious Affairs to reclassify some of the expenditure as "legacy expenses."

The Sissala East Municipal Assembly explained that the additional expenditure was incurred to address emergency healthcare needs and repair roads that had been cut off, stressing that internally generated funds (IGF) were insufficient to finance the emergency interventions.

The remaining six Assemblies acknowledged the findings and assured the Auditor-General that they would refund the excess expenditure into their DACF accounts once sufficient funds were mobilised through their IGF accounts.

Auditor-General Recommends Refunds and Sanctions

The Auditor-General described the practice as a breach of financial discipline, noting that the DACF is governed by strict disbursement guidelines.

The report warned that diverting excessive amounts to administrative expenditure reduces funds available for priority development projects, thereby affecting the Assemblies' ability to execute planned infrastructure and community development programmes.

To address the irregularity, the Auditor-General recommended that the District Coordinating Directors and Finance Officers of the affected Assemblies refund the excess expenditure of approximately GH¢3.2 million from their IGF accounts into their respective DACF accounts.

The report further recommended that the officers responsible be sanctioned in accordance with Section 98 of the Public Financial Management Act, 2016 (Act 921) for breaching financial management regulations.

The findings add to ongoing concerns over financial discipline and compliance with statutory guidelines in the management of public funds at the local government level.