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GOVERNMENT OF GHANA
MINISTRY OF FINANCE
COMPOSITE BUDGET
MANUAL
FOR
METROPOLITAN/MUNICIPAL/
DISTRICT ASSEMBLIES
November 2012
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
PREFACE
Comprehensive and credible local government is essential for the smooth
implementation of programmes and projects at the local level to improve the living
conditions of the people of Ghana. It is in the light of this that Ministry of Finance and
Economic Planning (MOFEP), Local Government Service Secretariat (LGSS),
Ministry of Local Government and Rural Development (MLGRD) and other
stakeholders are pooling together all efforts to improve the budgeting process of
Metropolitan, Municipal and District Assemblies (MMDAs).
In 2011, Ministry of Finance and Economic Planning set up National and Regional
Technical Working groups to coordinate, monitor and provide backstopping support
to the District Composite Budget Committees to formulate and implement for the first
time their District Composite Budgets. This Composite Budget Manual has been
developed to facilitate and guide preparation, approval, execution, monitoring and
evaluation of composite budget at the local level. The composite budget seeks to
harmonize the budget of all decentralized departments and bring them under the
ambit of the Assemblies’ budgeting process.
This manual serves as the main source document for Budget Committees of MMDAs
and stakeholders in the local government budgeting process. It should guide MMDAs
and other stakeholders in the formulation and implementation of the District
Composite Budget.
I urge all the relevant stakeholders involved in
the preparation and implementation of the
MMDAs composite budget to be guided by the
principles and steps outlined in this manual.
HON. SETH TERKPER
MINISTER
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
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ACKNOWLEDGEMENT
We wish to acknowledge the immense efforts of the National and Regional
Composite Budget Technical Working Groups and all stakeholders for their time,
inputs and tireless efforts in the preparation of this Manual.
The preparation of this manual was also made possible with the support, contribution
and useful comments from all stakeholders including Ministry of Local Government
and Rural Development (MLGRD), Controller and Accountant General’s Department
(CAGD), Auditor General’s Department (AGD), National Development Planning
Commission (NDPC), Local Government Service (LGS) and Institute of Local
Government Studies (ILGS). Special appreciation also goes to the Regional Budget
Officers for their immense technical support.
Finally, MoFEP wishes to express its profound gratitude to its Development Partners,
especially, GIZ and EU, for their support to the development of this Manual.
SIMEON PATRICK KYEI
DIRECTOR OF BUDGET
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
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LIST OF ACRONYMS
Acronyms
Meaning
AAP
AGD
CAGD
DACF
DBA
DBC
DBO
DFO
DPCU
DPO
GoG
GPRS
GSGDA
IAA
ILGS
LGSS
MDA
MLGRD
MMDAs
MMDCEs
MOFEP
MTDP
MTEF
NDPC
NGO
PM
POCC
RBC
RCC
RPCU
SMART
Annual Action Plan
Auditor Generals Department
Controller and Accountant Generals Department
District Assemblies Common Fund
District Budget Analyst
District Budget Committee
District Budget Officer
District Finance Officer
District Planning and Coordinating Unit
District Planning Officer
Government of Ghana
Ghana Poverty Reduction Strategy
Ghana Shared Growth Development Agenda
Internal Audit Agency
Institute of Local Government Studies
Local Government Service Secretariat
Ministries, Departments and Agencies
Ministry of Local Government and Rural Development
Metropolitan Municipal and District Assemblies
Metropolitan, Municipal District Chief Executives
Ministry of Finance and Economic Planning
Medium Term Development Plan
Medium Term Expenditure Framework
National Development Planning Commission
Non-Governmental Organizations
Presiding Member
Potentials, Opportunity Constraints & Challenges
Regional Budget Committee
Regional Coordinating Councils
Regional Planning and Coordinating Unit
Specific, Measurable, Achievable, Realistic & Time
Bound
Urban Development Grant
UDG
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
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TABLE OF CONTENT
LIST OF ACCRONYMS .................................................................................................... 3
DEFINITIONS ..................................................................................................................... 5
CHAPTER 1
INTRODUCTION ............................................................................................................... 9
OBJECTIVES OF THE MANUAL………………………………………………………….10
CHAPTER 2
DEVELOPING A DISTRICT MTEF BUDGETING PROCESS .............................. 11
The District MTEF Budget………………………………………………………................13
CHAPTER 3
OVERVIEW OF COMPOSITE BUDGETING .............................................................. 18
Coordination of budget process …………………………………………………………… .23
Budget Calendar…………………………………………………………………..………….24
CHAPTER 4
COMPOSITE BUDGET PLANNING AND PREPARATION ....................................... 25
Planning Stage………………………………………………………………………………. 25
Preparation Stage…………………………………………………………………………… 28
Costing of activities………………………………………………………………….……… 29
CHAPTER 5
APPROVAL PROCESS ................................................................................................... 33
Review by Sub Committee………………………………………………………………….. 33
CHAPTER 6
BUDGET IMPLEMENTATION...................................................................................... 35
Procurement Plan………………………………………………………………………….. 35
Cash /Wok Plan……………………………………………………………………………. 35
Cash Ceiling……………………………………………………………………………… 35
Release of funds…………………………………………………………………………… 37
Accounting recording and reporting………………………… ……………………….. 40
CHAPTER 7
MONITORING AND EVALUATION ............................................................................. 44
Legal Framework…………………………………………………………………………….44
Annexe1
Financial Reporting Formats…………………………………………………………..39
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DEFINITIONS
Below are some of the definitions, terminologies and concepts applied in the budget
process;
Budget
The term budget is derived from the French word "Budgette" which means a "leather
bag" or a "wallet". In simple terms, budget shows the income and expenditure of
government or an organization for a specified period. Budgeting on the other hand is
the process of preparing a budget.
Approaches to budgeting include;
Line-item budget
Line Item Budgeting is arguably the simplest form of budgeting. The approach links
the inputs of the budget to the system. It appears in the form of accounting
documents that express minimal information regarding purpose or an explicit object
within the organization.
Strategic Budgeting
This involves identifying new, emerging opportunities, and then building plans to take
full advantage of them. This is closely related to zero based budgeting and helps
organisations to concentrate on gaining competitive advantage
Zero-base budgeting
With zero-base budgeting, you begin with no preconceptions. In principle, zerobased budgeting begins with the assumption that the function for which the budget
is being prepared does not exist. In practice, however, it is generally based on the
‘survival’ level of expenditure as identified by (say) the department manager.
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Incremental budgeting
Incremental budgeting involves taking last year’s figure and adding a percentage on
for inflation or whatever, or even taking a percentage off, due to perhaps,
downsizing.
Activity based budgeting
This examines individual activities and assesses the strength of their contribution to
organisations success. They can then be ranked and prioritised, and be assigned
appropriate budgets. Activities are tied to strategic goals, objectives and outputs after
which the costs of the activities needed are used to create the budget.
Programme Based Budgeting
Unlike the line-item budget, which lists total departmental appropriations by items for
which the organisation will spend funds, a program budget displays a series of
programme which delineates all the costs associated with the programme
Performance Budgeting
Performance budgeting is the same as program budgeting, except that one
additional component—performance—is included to tie expenditures for each
program to specific goals established for that program.
Multi-year year budgeting
It is just what it sounds like. Organizations and its departments develop two-or more
year budget projections of revenues and expenses.
Budget classification
Budgets can be classified into two types .They are:
a. Functional Classification – expenditures are classified according to the main
purposes or functions. Examples, Economic, Infrastructure, Social, Public Safety
etc
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b. Economic Classification – expenditures are classified according to the kinds
of transactions (for goods and services and financial markets) and income
distribution, e.g. compensation of employees, goods and services and Assets
etc.
For the composite budgeting process, the above classifications would be used which
is in line with the Government Financial Statistics adopted by Ghana
Balanced Budget
A Budget is said to be balance when total expenditures are equal to the total
revenues.
Public Accounts
The public accounts are the government's financial statements. They are records of
a state's revenues and its outgoings. These accounts are where one would look to
analyze a state's fiscal position. The subnational, central and the quasi-government
enterprises together constitute the general government public accounts reporting.
Budget Deficit/Surplus
The term budget deficit is used in a situation when expenditures are planned to
exceed revenues, while the term budget surplus is when revenues exceed
expenditures.
Fiscal Year
The Fiscal Year is the Government’s accounting period, and runs from 1st January
up to 31st December each year. The budgets are closed on 31st December.
Unutilized/unexpended balances of appropriations at the end of a fiscal year shall
automatically lapse.
Virement
The agreed transfer of money from one budget heading, to which it has been
allocated, to another budget heading
MTEF
Medium Term Expenditure Framework (MTEF) is a transparent planning and budget
formulation process that attempts to improve the decision making process so as to
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
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link Government policies, priorities and requirements within limited resource
constraint. The key features of the MTEF approach are

A medium term perspective to budget planning usually three years

An explicit linkage between policy priorities and resource allocation

An emphasis on the efficient use of limited public resources
Composite Budget
A Composite Budget is an aggregation of projected revenues and expenditures of
the Departments and institutions of the MMDAs
Public Financial Management
Public Finance Management (PFM) basically deals with all aspects of resource
mobilization and expenditure management in government. Just as managing
finances is a critical function of management in any organization, similarly public
finance management is an essential part of the governance process. Public finance
management includes resource mobilization, prioritization of programmes, the
budgetary process, efficient management of resources and exercising controls.
Decentralization
Decentralization is the process of dispersing decision-making governance closer to
the people and/or citizens. It involves the transfer of power and resources from
national
governments
to
subnational
governments
or
to
the
subnational
administrative units of national governments.
Fiscal Decentralization
Fiscal decentralization generally refers to the transfer of taxing and spending powers
from the control of central governments authorities to local government authorities
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CHAPTER 1
INTRODUCTION
1.0 Background
The current decentralization system in Ghana started in 1988, with PNDC Law 207
that established the District Assemblies as the highest political and administrative
authority in the district. Before then, there had been some political, administrative,
planning and fiscal decentralization arrangements which were implemented through
various legal frameworks that had been enacted. In 2009 Government decided to
deepen the decentralization process by establishing the Departments of the District
Assembly (administrative decentralization) and passed the Legislative Instrument
(LI) 1961 (2009).
To give meaning to the administrative decentralization reforms that took place
following the enactment of LI 1961, in 2011, government also decided to accelerate
fiscal decentralization reforms, to make funds available for MMDAs to deliver on their
mandates. The Composite Budget implementation is a major step in ensuring that a
comprehensive picture of the revenue and expenditure requirements of assemblies
is obtained, so that they can be adequately funded. It will also help to improve
transparency and accountability in the management of public funds at the District
level.
Ghana’s Public Financial Management (PFM) system is based on appropriate legal
and regulatory framework which clearly sets out budget and accountability
structures. Chapter 20 of the 1992 Constitution, the Local Government Act 462 and
other laws and regulations, mandate the Assemblies to formulate and execute plans,
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
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programmes and strategies for the overall development of their districts. Section 92
of the Local Government Act requires that MMDAs would prepare and approve their
budgets. These laws also give the Assemblies the authority to levy and collect rates,
fines and fees.
Previously the Assembly’s Central Administration budget conformed to the District’s
Annual Action Plan (AAP) which is derived from the District Medium Term
Development Plan (MTDP). However the decentralised departments’ budgets were
aligned to their parent Ministries’ Sector plans with very weak link to the Assemblies’
MTDPs and AAPs. The effect of this uncoordinated planning and budgeting process
at the district level undermined the decentralization policy. The coming into effect of
L. I. 1961, 2009 sought to address the inherent difficulty associated with the
assignment of functions and responsibilities and the budgeting process at central
and local government levels.
The composite budget process allows for the
integration of the Assemblies’ Central Administration Budgets and the departmental
budgets to ensure better coordination, ownership, control and accountability of the
budgeting process at the MMDA level.
1.1 Objective of the Manual
The main objective of this manual is to serve as a user guide for the preparation of a
composite budget. It also serves as a material for training. Specifically, the manual
is to assist Regional and District Budget Committees in the systematic analysis of
budget data, forecasting, and costing of projects and programmes in the MTDPs and
AAPs of the Assemblies.
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CHAPTER 2
DEVELOPING A DISTRICT COMPOSITE BUDGETING (MTEF)
PROCESS
2.0 Introduction
The District Medium Term Development Planning process and the MTEF Strategic
Planning Process which is the basis for formulating the Budgets of central
government line Ministries and Department go through similar processes. Medium
Term Development Plans of assemblies should therefore be used as a basis for
formulating the district composite budgets in line with the MTEF framework.
A summary of the Strategic planning process and the DMTDP planning process are
presented in Figures 2.1 and 2.2. Figure 2.3 and the section below illustrate the
similarities between the two processes, and demonstrate how the DMTDP can be
linked to government policy objectives, and the MTEF process in the formulation of
the district composite budget.
Fig 2.1: Summarized DMTD Planning Process
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Performance Review
Compilation of District Profile (Current situation)
Linking Identified Key Development Issues/Problems to the Thematic Areas of the
Medium-Term Development Policy Framework (MTDPF)
Prioritization of Key Development issues
Application of Potentials Opportunities Challenges Constraints (POCC)
Development Focus
Setting District Development Goal compatible with National Goal of the MTDPF
Development Projections (i.e. for 2010-2013)
Formulation/Adoption of District Objectives in relation to the MTDPF
Formulation/Adoption of Strategies to achieve objectives
Formulation of Development Programmes
Formulation of Joint Development Programmes
Application of Sustainability tools
Formulation of Composite Programme of Action
Preparation of Indicative Financial Plan
Preparation of Composite Annual Action Plans
Linking the Plan with Annual Budget
Implementation of Annual Action Plans
Monitoring and Evaluation
Development of District Communication Strategy
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Fig 2.2: MTEF Strategic Planning Process
Why we exist, for whom, our
core business and values
Mission
Environmental Scan
Stakeholder Analysis
1
4.1
2
4.2
3
4.3
4
4.4
Policy Strategy Review
Objectives
(What should we
achieve to get to our
mission?
5
4.5
Where are we now?
SWOT-Strengths, Weaknesses,
Opportunities and Threats
4.6
SMART OUPTPUTS
(What should we produce in
order to achieve the objective?)
4.1.1
4.1.2
Activities
(What do we have to do
to produce?)
4.1.3
4.1.4
4.1.5
4.1.5.1
4.1.5.2
4.1.5.3
INPUTS (resources needed for carrying out activities) good
practice use costing forms
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Fig 2.3: Linking DMTD Planning process to the MTEF Process
NMTDPF
DMTDPs AND AAPs
DISTRICT MTEF
COMPOSITE BUDGET
2.1 The District MTEF Budget:

The District MTEF Budget should be based on the Assembly’s Medium-Term
Development Plan and Annual Action Plans. There is a relationship between
the medium-term development planning process and the Strategic Planning
Process. In principle, both processes draw their inspiration from the existing
national development policy framework. The current National Medium Term
Development Policy Framework (NMTDPF) is the Ghana Shared Growth and
Development Agenda (GSGDA).

Planning guidelines are issued for the preparation of the Medium term
Development Plans. The Planning Guidelines and the MTEF Strategic
Planning Manual (1998) emphasize the need to analyze the national
objectives and priorities as defined by the national development policy
framework. The National Framework therefore provides the basis for deriving
the respective missions and strategic objectives of the Assembly.

In both the medium term development planning process and the strategic
planning process there are steps to conduct an internal and external
environmental scan for the diagnosis and identification of the key issues. In
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the strategic planning process
the SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis is applied to unearth the issues facing the
ministries. In the medium term development planning process in accordance
with the planning guidelines the POCC analysis (Potentials, Opportunities,
Constraints and Challenges) is used by the MMDAs. The bottom line is that
both approaches help in scanning the environment.

Other steps included in both processes which are quite similar are setting the
Goals, identifying the required outputs needed to be produced to achieve the
objectives, identifying activities to be carried out to produce the outputs and
identifying lower priority activities that can be eliminated, scaled down or
postponed.
It is important to note that Stakeholder analyses, objective setting and review of the
programmes should be consistent with national policies in both processes
The detailed processes involved in the development of the District MTEF Budget
which are covered in the Medium Term Development Planning process are outlined
below:
2.2 Mission Statement
The starting point of the budgeting and MTEF process is the statement of the
Assembly’s Mission. . The Mission Statement may be derived from the Legislative
Instrument that established the MMDA. It broadly, spells out why the MMDA exists or
its overall mandate, what business it is involved in and who are its stakeholders
(customers, target beneficiaries etc.). Sometimes changes in the status of the
Assembly may occur. For instance, a District Assembly may be elevated to a
Municipal Assembly. If such a change should occur, the Mission Statement of the
Assembly must be reviewed and re-defined to reflect the new status and mandates.
The Mission statement of the Assembly plays an important role in considering the
lead implementing and collaborating agencies for both NMTDPF and DMTDP.
2.3 Goals
The next stage in relation to the Mission Statement is the Assembly’s Development
Goal. A goal is an anticipated desired state, which reflects a general improvement
from a weak or poor state to a better one in the medium to long-term. The DMTDP
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identifies the goal of the Assembly which should be compatible with the National
Development goals and this should be adopted for the District MTEF budget.
2.4 Key Focus Areas
The NMTDPF identifies Key Focus Areas together with appropriate themes to guide
in national development planning. The DMTDP should be aligned with these key
focus areas/thematic areas and they should reflect in the District MTEF Budgets.
2.5 Objectives
The objectives of the Budget should be driven by the goals of the District. An
objective is a specific aim intended to be achieved within a specified time frame. The
DMTDPs should have specific, measurable, achievable, realistic, and time-bound
(SMART)
objectives and they should be aligned with the National Development
Policy Objectives. The objectives should be the basis of deriving activities for the
District MTEF Budget. Aligning the district level objectives to national level objectives
help to facilitate the integration of district budgets with national Budgets using a
harmonized revenue and expenditure coding system referred to as the chart of
accounts.
2.6 Outcomes
The Outcomes relate closely to the objectives of the MTDP. It is the overall results
achieved through the combined efforts of the Assembly and its stakeholders.
2.7 Outputs
The outputs are the actual goods and services produced by the activities. In
developing the District MTEF Budget, outputs should be identified based on the kind
of activities that are going to be carried out.
2.8 Activities
Activities are the means or steps for the production of goods and services. The
activities must deliver outputs. They are undertaken with the inputs to attain the
expected outputs. Activities must be SMART. In the Assembly’s DMTDP, activities
are identified under the Programme of Action (PoA) for the plan period. The activities
should be grouped under Annual Action Plans on a year by year basis. The activities
for the current year under consideration and two outer years should be adopted for
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the formulation of the District Budget, covering a three year period, in line with the
MTEF Framework.
2.9 Inputs
Inputs are the resources required to carry out an activity. They may be the financial,
human and technical resource, which is needed to be applied in different
combinations and proportions to enable the activities to deliver the expected results.
The inputs for the activities over the 3 year period should be costed to derive the
District MTEF Budget.
2.10 Costing
To cost for an activity, the quantity of the input must be multiplied by the unit cost of
that input and the frequency of use of the input.
The entire costing process involves the following steps:
Step 1
Agree on the expected Outputs that will lead to the achievement of the
Objectives
Step 2
Identify the Activities that will produce the Outputs
Step 3
Identify Inputs for the Costing of the Activities
Step 4
Estimate the Cost of the Activities
Step 5
Compare total costs of activities to projected available Resources
Step 6
Reprioritize and reduce outputs and activities to fit within project
available Resources (if the need arises)
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The entire costing process is illustrated as follows:
COSTING Process
Mission
Objectives
Step 1
Step 2
Step 3
Year One
Outputs
Year Two
Outputs
Year One
Activities
Year Two
Activities
Inputs
Inputs
Step 4
Estimate the
cost and
prepare budget
Step 5
Resources:
IGF GOG
Donor
Resources:
IGF, GOG,
Donor
Reprioritization
Reprioritization
Step 6
Estimate the
cost and
prepare budget
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Year Three
Outputs
Year Three
Activities
Inputs
Estimate the
cost and
prepare budget
Resources:
IGF, GOG,
Donor
Reprioritization
Page 17
CHAPTER 3
OVERVIEW OF COMPOSITE BUDGETING
3.1 Context
The term budget is derived from the French word "Budgette" which means a "leather
bag" or a "wallet". In simple terms, budget shows the income and expenditure of
government for a specified period. Budgeting on the other hand is the process of
preparing a budget.
In summary, the purpose of budgeting is to:

Provide a forecast of revenues and expenditures,

Enable the actual financial operation of the organisation to be measured
against the forecast.

Establish the cost constraint for a project, program, or operation.
Legal Framework for MMDAs’ Budgeting in Ghana
Ghana’s Public Financial Management (PFM) system is based on a good legal and
regulatory framework which sets out appropriate budget and accountability
structures and is backed by the 1992 Constitution and other Acts of Parliament.
The budget cycle in the assemblies is guided by Local Government Act 1993 (Act
462) National Development Planning Systems Act 1994 (Act 455) and DACF Act
1993 (Act 455). Audit Service Act 2000. In addition, the Financial Administration Act
(FAA) Act 2003 (Act 654) and Financial Administration Regulations (FAR), 2004,
Public Procurement Act, 2003 (Act 663) Local Government Service Act, 2003 (Act
656) Internal Audit Agency Act, 2003 (Act 658), Financial memorandum, 2008,
Regulations, 2004 (LI 1802) Decentralization Policy & Framework reviewed in 2010
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and lastly L.I 1961, 2009. These laws mandate the assemblies as Planning,
budgeting and rating authority.

Section 92 (3) of the local Government Act (Act 462) envisages the
implementation of the composite budget system under which the budgets of
the departments of the District Assemblies would be integrated into the
budgets of the District Assemblies
In Ghana, the term ‘Composite Budget’ means an aggregation of projected revenues
and expenditures of the Departments and institutions of the MMDAs. It is defined
under Section 92 (3) of the Local Government Act of 1993 as:
‘The budget for a district shall include the aggregate revenue and
expenditure of all departments and organisations under the District
Assembly and the District Co-ordinating Directorate, including the annual
development plans and programmes of the departments and organisations
under the Assembly.’
Composite budgeting is a tool to effectively facilitate, the coordination, harmonisation
of planning and budgeting at the district level.
In 2003, a pilot was implemented in 3 districts namely Dangme West, Dangme East
and Akuapim North, and was extended to 25 districts in 2005. In 2006/07 all districts
in the country prepared their Composite Budgets but never implemented them.
A policy decision was therefore taken in 2011 to enable Composite Budgets to be
prepared and implemented by all MMDAs.
3.2 Objectives:
The composite budgeting process aims at ensuring:
o cost effectiveness in the planning and implementation of district programmes;
o holistic development of the MMDAs
o transparency in the use of resources;
o effective planning and utilization of resources;
o a unified approach for district and national budgeting system;
o uniform system of monitoring, evaluation and reporting system; and
determination of the total inflow and outflow of resources
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3.3 The Composite Budget process
The goal of the Composite Budget is to ensure that the policies and programmes of
the Assembly are implemented in an integrated manner using the budget as the tool.
Each stage therefore in the budget process has a role in helping to develop and
implement the policies of the MMDA and integrating local priorities aligned to the
national policies.
As Figure 3.1 illustrates, Composite Budget moves through five stages in the budget
cycle. They are:

Planning

Preparation

Approval

Implementation

Monitoring and Evaluation.
Figure 3.1 Composite Budget Cycle
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The structure of each stage of the composite budget process is summarized in Table
3.1.
Table 3.1: Structure of the Annual Composite Budget Cycle
Budget Stage
Relevance
Key Activities
Planning
Helps to
-determine how
much money is
available to
spend,
-Review outer
year revenue
and
expenditure
projections in
the District
MTEF Budget
(Feb-May, with
additional work
into September)
-establish the
priorities for the
year
-plan ceilings for
each department
based on the
priorities
-Review
current and
past year
revenue and
expenditure
performance
Who Leads the
Work
District Planning
Coordinating Unit
Development
Planning subcommittee and
other relevant subcommittees
Budget Committee
Key Outputs
-Revised
annual action
plans
-Fee fixing
resolution
-Revised
Revenue
Projections
-Ceilings for
each MMDA
department
-Review fees in
consultations
with ratepayers
and secures
approval
-Estimate IGF
revenues to
determine how
much will be
available to be
spent
Review
medium term
Plan and
revise annual
action plans
-establish
funding gaps
-Organize
departmental
hearings to
determine
ceilings
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Preparation
(June–
September
Approval
Implementation
Monitoring and
Evaluation
(year round)
-Develop the
budget for
achieving the
policy objectives
of the MMDA,
matching
resources to
results
Legislative
review, and
approval of the
annual budget
-Prepare
departmental
budgets
-Consolidate
the budgets to
form the
Composite
Budget
Discuss and
approve the
estimates at
various levels
 F&A
 Executive
Committee
 Regional
Budget
hearings
 Executive
Committee
 General
Assembly
Budget Committee
Draft
Composite
Budget




F &A
Executive
Committee
RCC
General
Assembly
Execute the work
described in the
annual budget
and achieve the
policy objectives
Submission &
implementation
of
departmental
work plans in
accordance
with approved
budget
DCE/DCD/DFO/DB
O/DPO/DIA
Monitor and
confirm that the
budget was
executed
appropriately,
evaluating
progress towards
achieving policy
objectives,
identifying
lessons learned
Vouching and
verification
Internal Auditors
Ensure
compliance with
internal control
systems in the
Assembly
Physical
inspection of
projects
Heads of
departments/cost
centres
External Auditors
Preparation
and review of
financial
reports
Inspection of
books and
accounts
Draft budget
estimates of
each
department
DPCUs
F&A subcommittee/Works
sub-committee and
key relevant subcommittees
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Approved
Composite
Budget
Various
documentation
approving and
recording
financial
transactions
such as
payment
vouchers,
contracts etc.
Performance
reports,
progress
reports on
projects and
programmes,
financial and
audit reports
Page 22
3.5 COORDINATION OF BUDGET PROCESS
The entire budget process shall be coordinated by the MMDA Budget Committee. In
accordance with the FAR, each assembly shall set up a Budget Committee which
shall be made up of
(a) The Coordinating Director, as chairperson; and
(b) Heads of Budget Management Centres or Cost Centres (A Budget
Management Centre is a unit responsible for budget formulation,
implementation, monitoring and evaluation).
(3) Budget Officer, who shall be the member secretary
The Budget Committee shall
(a) review and formulate the strategic plans based on the policies of
government;
(b) review department’s revenue collecting activities;
(c) allocate resources based on objectives, outputs and activities;
(d) coordinate, and consolidate the budget;
(e) monitor and evaluate budget performance; and
(f) report in accordance with the Financial Administration Regulations.
3.7 Budget Calendar
The Budget and Rating Department which is the technical wing of the Assembly for
budget issues, shall issue a calendar at the beginning of each year to guide the
budget process. Table 3.2 outlines the budget calendar which should guide each
MMDA.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 23
Table 3.2 Budget Calendar
Activity
Time
Frame
Responsible
Agency
Deliverables /Outputs
Review outer year projections in the
District MTEF Budget
Review of AAP and MTDP
Review current and past year revenue
and expenditure performance
Update database for revenue
Feb-April
DPCU
Revised projections
May-June
June
DPCU
Budget unit
Revised AAP
gaps established
Feb-June
Budget unit
organize ratepayers consultations
May-July
Budget unit
secure approval for revised fees
Estimate IGF revenues to determine
how much will be available to be spent
Issue budget guidelines
May
June
Budget unit
Budget unit
Nominal Rolls established
for all ratepayers
Consultations with
ratepayers conducted
fees revised
Revenues Projected
July
MOFEP
Organize departmental hearings to
determine ceilings for all departments
Budget Committee training
Submission of departmental draft
budgets
F&A meeting to discuss budget
July
Budget
committee
FDU/RBC
Budget Unit
June
August
August
Executive Committee meeting to
discuss budget
Chairman of
F&A
September Chairman of
Exe C’tt
Regional budget hearing
September RBC
Executive Committee meeting to
review RCC inputs
General Assembly Approval
Preparation of Procurement plans
Submission of inputs to MoFEP
through LGSS/MLGRD
Gazetting of the fee fixing resolution
September Chairman of
Exe C’tt
October
PM
November
November
Composite Budget
Guidelines issued
Ceilings determined
Budget committee trained
Draft Dept Budgets
submitted
Comments from F &A
received
Comments from
Executive Committee
received
recommendations and
comments received from
RCC
comments from Execo
MMDA budget approved
Approved National Budget
Oct- Nov
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 24
CHAPTER 4
COMPOSITE BUDGET PLANNING AND PREPARATION
4.1 Planning Stage
The activities include:

Formulate/Review Annual Action Plans from the MTDP

Formulate 2 outer year annual action plans/Review outer year projections in
previous District MTEF Budget

Review current and past year revenue performance

Review fees charged in consultations with ratepayers

Estimate revenues to determine how much will be available to be spent

Organize departmental hearings to determine ceilings for all departments
4.1.1 Review of outer year projections in the District Composite Budget
The DPCU shall review the two year projected activities and programs, and assess
price changes and other possible factors that might affect implementation. The
DPCU shall also identify if there is any major policy shift either at the national level or
by the MMDA that might affect outer year planned projects and programmes. In the
case of new districts the process starts with the formulation of a Medium Term
Development Plan and Annual Action Plans
4.1.2 Review of AAP of the MTDP
The District Planning and Coordinating Unit (DPCU) shall assess the progress of all
on-going projects and programmes being implemented, the status of implementation,
challenges and identify projects which cannot be completed at the end of the fiscal
year and need to be rolled over
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 25
The DPCU shall submit a report on the findings and recommendations to the budget
committee
4.1.3 Review current and past year revenue performance
The three main sources of revenue to local governments are:
1. Intergovernmental transfers
Intergovernmental transfers constitute the dominant revenue for financing local
government budget. In Ghana, the main intergovernmental transfers are; block
grants-DACF and categorical grants for sectors such as MOFA, Feeder and Urban
roads, Social Welfare/Community Development etc.
2. Internally generated revenue
Internally generated revenues constitute funds that are generated from within the
jurisdiction of the local government as opposed to funds that generated from outside.
As indicated in the Act 462, in Ghana, the main sources are: - Rates, Fees, licenses,
Fines and penalties, permits, profits from public sector enterprises, Gifts, etc
3. Borrowing
Aside intergovernmental transfers and internally generated funds, borrowing is also
another instrument for financing the gap between expenditure responsibilities and
revenue assignment. The exception is that borrowing is appropriate for certain types
of local spending, such as long-term capital development projects. It is generally not
for recurrent spending as has been the practice in certain local governments.
One of the main instruments among others, used extensively by local governments
is municipal bonds. Municipal bonds are debt obligations issued by states, cities and
other governmental entities, which use the money to build schools, highways,
hospitals, sewer systems, and many other projects for the public good.
In Ghana, the local government Act 1993, Act 462 states “a District Assembly may
raise loans or obtain overdrafts within Ghana of such amounts, from such sources, in
such manner, for such purposes and upon such conditions as the Minister in
consultation with the Minister responsible for Finance, may approve; except that no
approval is required where the loan or overdraft to be raised does not exceed
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 26
¢2,000.00 and the loan or overdraft does not require a guarantee by the Central
Government”.
The municipal financing bill which was prepared in 2008 is being revised for
implementation. Until the revision is done and the provision in the law is repealed or
amended, all assemblies are to comply with the provision in the Act.
The Budget and Rating Department shall:

Analyse the previous year and current half year IGF revenue performance to
establish the trend

Review and update the database of all revenue sources to ensure the
adequacy and reliability of the data

Review all other revenue sources including central government transfers such
as those from the MDAs, retained IGF, District Assemblies Common Fund
(DACF), District Development Facility (DDF) and Urban Development Grant
(UDG), NGO transfers and other development partner special transfers.

Review the expenditure performance and establish the funding gap if any
4.1.4 Review of fees in consultations with ratepayers
 The budget and rating department of the assembly shall conduct a desk
review of the existing fees. The list of fees charged should also be updated to
include new sources of revenue identified. This shall be discussed at the
Budget Committee.
 The Budget Committee, in collaboration with representatives of the F&A subcommittee, shall conduct rate payer’s consultations on the proposed charges
to build consensus for easy payment.

After the consultations the charges shall be revised to reflect the consensus
reached during the consultations and presented to the Finance &
Administration Sub-Committee of the Assembly.

The Finance and Administration Sub-Committee, after studying and being
satisfied, shall present the draft charges to the Executive Committee of the
Assembly for further discussions with reports/notes on all the consultations.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 27

After reviewing the draft, the Executive Committee shall present same to the
General Assembly for approval.

The General Assembly shall study the document and approve the new
charges for the year by resolution which should be gazetted before the end of
the year.
4.1.5 Revenue projections

Based on the new approved fees, and on available data on all rateable
populations and items, the budget unit shall estimate new IGF revenues for
inclusion in the budget.

The Budget Unit shall estimate for other revenue sources such as transfers
from national offices, NGOs, donors etc. based on a trend analysis.
4.2.0 Preparation stage
4.2.1. Budget Guidelines
MoFEP shall issue Budget Guidelines, which shall include highlights of financial
policies and relevant economic information such as the inflation rate, exchange rate,
and budget ceilings, etc. The purpose of the Budget Guidelines is to provide
information on:
o national Policy Priorities;
o indication of revenue the MMDA should expect from national ministries
and other GOG transfers
o information to be submitted in support of budgetary proposals by
MMDAs;
o Procedures to be followed by budget committees in preparing,
submitting and implementing the budget.
Each MMDA may prepare and issue additional guidelines within the framework of
the national guidelines for budget preparation to their departments to address
specific local issues.
4.2.2 Departmental hearings
The Budget Committee shall organise an internal hearing for all the departments. In
doing so, the Committee shall discuss and review the departments’ policies and
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 28
programmes to ensure that they are consistent with the overall goal of the Assembly
as contained in the MTDP.
The Budget Committee shall propose budget ceilings for all departments. The
ceilings should be based on the total ceilings communicated through the budget
guidelines issued by MOFEP and other revenue sources including the IGF, Retained
IGF, DACF, DDF and other development partner funds.
4.2.3 Preparation and Submission of Budget Proposals
Heads of departments of MMDAs shall prepare and submit to the Budget
Committees their draft budgets based on the ceilings given to them as inputs into the
Composite Budget.
4.2.4 Costing of activities
Expenditure
These are cost of activities which are met from the revenue. They are classified into
two types
a. Functional Classification – the classification is according to the main purposes or
functions. Examples, Economic, Infrastructure, Social, Public Safety etc
b. Economic Classification – expenditures are classified according to the kinds of
transactions (for goods and services and financial markets) and income distribution,
e.g. recurrent (compensation of employees, goods and services) and Capital
(Assets or Non-financial ).
Any projected expenditure which is incurred for creating asset with a long life is
capital expenditure. Recurrent expenditure on the other hand is an expenditure,
which does not result in the creation or acquisition of fixed assets. It consists mainly
of expenditure on wages, salaries and supplements, purchases of goods and
services and consumption of fixed capital.
4.2.4.1: Compensation of Employees
Costing of compensation of employees is estimated by grades (covering established
and non-established positions). It also includes all allowances which accrue to
certain officers by virtue of the positions and job functions. As Table 4.1 illustrates,
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 29
the total compensation for a particular grade is estimated by adding up the total
salaries of personnel on that grade. In the case of allowances, it is the number of
officers to benefit from the allowances multiplied by the annual allowance.
Table 4.1 Costing Compensation of Employees
Grade
Staff
Annual Basic
Strength
Salary/allowance Salary/Allowance
Director
1
24,000.00
24,000.00
GoG
Snr Budget
Analyst
Casual Labourer
2
16,000.00
32,000.00
GoG
10
2,000.00
20,000.00
IGF
Bicycle Allowance
5
20.00
100.00
GoG
Travel Allowance
50
120.00
6,000.00
GoG
Total
Total
Funding
82,100.00
4.2.4.2. Goods and Services
Costing of goods and services involves the costing of inputs needed to undertake the
respective activities. Inputs are aligned to the accounts classification of the Chart of
Accounts. To arrive at the total cost of the input, multiply the input quantity, input
frequency and the unit cost (QTY x FRQ x Unit cost). As illustrated in Table 4.2, to
arrive at the total cost of the activity, the total input cost is multiplied by the activity
frequency.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 30
Table 4.2 Costing of Goods and Services
Activity : Organise Costing training for the staff of LGS
annually
Year
1
Activity
frequency
Year
2
1
Inputs for
Year 1
2
QTY
Training
materials
Hire of
venue
30
2
1
(no. of
people)
(no. of
rooms)
3
(each
wkshop)
(no. of
days)
3
(no. of
days)
1
Year
2
8,700
TOT COST
(QTYxFRQ
xUNIT COST)
UNIT
COST
FRQ
Refreshmen
(no. of
t
30
people)
TOTAL
Annual Expenditure on
Activity*
Year
1
4,350
Year 3
30
500
5
(per
material)
(per
room)
(per
day)
FUNDING
900
GoG
3,000
GoG
450
4,350
GoG
Year 3
4,350
Notes:
*
total activity cost for the year = activity frequency X total actvity cost. These
totals will be calculated by the software
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 31
4.2.4.3 Non-Financial Assets
Costing non-financial assets follows the pattern illustrated in section 4.2.4.2. Table
4.3 illustrates an example of costing the construction and furnishing of an office
building.
Table 4.3 Cost of Non-Financial Asset
Activity: Construct and furnish 2NO 6-unit Classroom Block in Akyem Tafo by Dec 2012
Activity Frequency
Year 1
Year 2
1
Inputs
Qty
School Building
Frq
2
Purchase of Furniture & Fittings
Year 3
0
12
0
Unit Cost
ToT Cost
Funding
1 270,000.00
540,000.00
DACF
1 3,000.00
36,000.00
DACF
576,000.00
Annual Exp on Activity
Year 1
Year 2
Year 3
576,000.00
-
-
4.2.5 Preparation of Draft Estimates
The projected revenue and expenditure estimates of the various departments of the
Assembly shall be consolidated by the Budget Unit to prepare the draft Composite
Budget of the Assembly.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 32
CHAPTER 5
APPROVAL PROCESS
Figure 5.1 illustrates the stages in the approval process for the Composite Budget of
Assemblies.
Figure 5.1 Composite Budget Approval Process
5.1Review by Sub-committees
5.1.1 Finance and Administration Sub-Committee
Based on Regulation 13a of the Local Government Financial Memorandum (2004),
the draft budget prepared by the Budget Committee through the Management shall
be submitted to the Finance and Administration Sub-Committee (F&A) for their
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 33
consideration, discussion, review and recommendation. The final report, including
the recommendations, shall be forwarded to the Executive Committee
5.1.2 Executive Committee/ Authority
The Executive Committee shall discuss and review the draft budget on the basis of
inputs from the F&A Sub-Committee. The revised draft document shall be forwarded
through the Management of the Assembly to the RCC for their consideration and
comments.
5.2 Role of RCCs
As prescribed in Section 142 of the Local Government Act, Act 462 (1993), RCCs
are to perform monitoring, coordination and harmonisation functions. Within this
context, Regional Budget Committees (RBCs) acting on behalf of the RCCs shall
consider and comment on the draft budget submitted by the Management through
budget hearings or engagement with the District Budget Committees (DBCs). This is
to ensure compliance with standards, scope, guidelines, consistency with AAPs,
national policies and programmes as well as budget ceilings. The draft budget shall
be returned to the Management of the Assembly for onward submission to the
Executive Committee.
5.3 Executive Committee
The Executive Committee shall discuss the comments from RCC, revise the budget
where necessary and submit the final draft to the General Assembly.
5.4 General Assembly
The General Assembly, upon receipt of the draft budget from the Executive
Committee, shall deliberate, discuss and approve the Composite Budget in line with
Regulation 40 of the Local Government Financial Memorandum (2004) by 31st
October each year.
5.5 Submission of Budget
Copies of the approved Composite Budget of the Assemblies shall be submitted to
MoFEP, MLGRD, LGSS, NDPC, Office of the Administrator, DACF and RCCs.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 34
CHAPTER: 6
BUDGET IMPLEMENTATION
6.1 Procurement Plan
Upon approval of the budget the Budget Committee shall prepare a Procurement
Plan detailing all new and on-going projects and programmes for all departments.
This shall be done in collaboration with the Procurement Officer and the Planning
Officer. The Procurement Plan, approved by the Entity Tender Committee, shall be
submitted to the Public Procurement Authority.
6.2 Cash Management
6.2.1 Cash /Work Plan
All departments shall prepare and submit to the Budget Unit of the Assembly
detailed work and cash plans to facilitate the implementation of their budget. It
should indicate specific activities to be undertaken in each quarter of the year, with
accompanied cash requirements. The consolidated work and cash plans shall be
reviewed periodically by the Budget Committee.
6.2.2 Cash Ceiling
Based on the projected cash inflows and outflows of the Assembly, the Budget Unit
of the Assembly shall determine quarterly cash ceilings for the various departments
in line with the consolidated work and cash plans. The quarterly cash ceiling sets the
limits to which each department can spend in that particular period.
Figure 6.1 shows the process for determining cash ceilings and informing beneficiary
departments.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 35
Figure 6.1 District Assembly Cash Ceiling Flow
6.3 Releases and Utilisation of Funds
With respect to sector specific transfers, funds shall be released to the Assemblies
for the implementation of their programmes to be recorded under the following
accounts classification:

Compensation of Employees

Goods and services

Assets

Liabilities
Under expenditure,
 General Warrants shall be issued by MOFEP to CAGD monthly to cover
compensation of employees.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 36
 For goods and services and assets, specific warrants shall be issued by
MOFEP to CAGD upon request from the MLGRD. These funds will then be
transferred to the District Treasuries of the Assemblies by CAGD.
With respect to DACF, MoFEP shall authorise CAGD to transfer the quarterly
allocation to the Administrator of the Fund for onward disbursement to the
Assemblies.
In the case of DDF and UDG , the DDF Secretariat shall instruct CAGD to transfer
the amount due Assemblies as per the distribution list approved by the DDF Steering
Committee after the Assemblies having satisfied the requirements under the FOAT,.
In the case of other donor support, releases will be in accordance with the agreed
terms of disbursement.
6.4 Request for Release of Funds from MoFEP
6.4.1 Request for Goods and Services
On behalf of the MMDAs, the MLGRD shall initiate the process for the release of
funds to undertake programmed activities under goods and services from MoFEP on
a quarterly basis.
6.4.2 Request for Non-Financial Assets
For non-financial assets, Assemblies shall initially request for commencement
warrants from MoFEP before going through the public procurement process as
required by the Public Procurement Act (Act 663, 2003).
The Assemblies shall apply to MOFEP through LGSS and MLGRD for the release of
funds upon receipt of invoices, interim payment certificates and other relevant
documents.
(It should be noted that this process for requesting for funds from MoFEP in respect
of GOG funds or sector transfers to departments is currently under review.
6.5 Request for the Release of Funds from the Assembly
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 37
6.5.1 Request for Goods and Services
Heads of Departments shall request for funds to undertake their programmed
activities as spelt out in the budget estimates. The request shall be sent to the
Central Administration for their consideration and further action for the release of
funds.
The following steps shall be taken to request funds for goods and services:
1. Departments shall initiate the process for request for funds by applying to the
DCD.
2. DCE/DCD shall refer the request to the DBO to commence the process.
3. After checking the relevant budget provision, cash ceiling and relevant
documentation, the DBO shall prepare a specific warrant and forward it to the
DCE/DCD for approval.
4. The approved specific warrant shall be forwarded to the Finance Office for the
preparation of payment vouchers and supporting documents. The payment
voucher together with the warrant and other supporting documents shall be
forwarded to the Internal Auditor.
5. The Internal Auditor shall vet and cross all disbursement documents including
the warrant.
6. The vetted documents shall be returned to the Finance Office for final
payment to the beneficiary department.
6.5.2 Request for Non-Financial Assets
Release of funds for activities under non-financial assets shall be based on the
submission of interim payment certificates, invoices and stores receipts advice
(SRA) by the Head of the Department to the Central Administration of the Assembly.
In both cases, the Budget Unit shall issue specific warrants with an accompanying
memo in respect of the request for approval by the DCE and DCD. The approved
warrant shall be forwarded to the Finance Office. Before final payments are made to
the beneficiary department, the disbursement documents shall be forwarded to the
Internal Audit Unit for verification.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 38
The following steps shall be taken to request a warrant for non-financial assets:
1. The Head of Department shall apply for a commencement warrant to procure
goods, works and services through the Management of the Assembly. This
activity must be in the Procurement Plan and be in line with the appropriate
procurement process as stated in the Public Procurement Act (Act 663, 2003).
2. DCE/DCD shall refer the request to the DBO.
3. After checking the relevant budget provision, cash ceiling and relevant
documentation including the Entity Tender Committee Minutes, award of
contract letter, pro forma invoices, bills of quantities etc., the DBO through the
DCE/DCD shall commit the Assembly to the tune of the value of the assets to
be procured by issuing a commencement warrant to the Department.
4. The Department upon receipt of the invoices or interim payment certificates
shall apply for the release of funds from the Assembly with copies of the
relevant documents and commencement certificates.
5. The DBO shall prepare the specific warrant for approval by the DCE and
DCD.
6. The approved specific warrant shall be forwarded to the Finance Office for the
preparation of payment vouchers and supporting documents. The payment
voucher together with the warrant and other supporting documents shall be
forwarded to the Internal Auditor.
7. The Internal Auditor shall vet and cross all disbursement documents including
the warrant.
8. The vetted documents shall be returned to the Finance Office for final
payment to the beneficiary department.
NOTE: No payment shall be made without the PV and appropriate supporting
documents including the specific warrant duly approved.
6.6 Other Payment Requirements for Non-Financial Assets
The District Planning and Coordinating Unit (DPCU) and the Regional Planning and
Coordinating Unit (RPCU) shall undertake monthly and quarterly project monitoring,
respectively, to inspect and assess project execution status. The DPCU shall
prepare and submit progress reports which will be the basis for payment for the
assessed value of work done. The inspection team shall include the Chairmen of
Development Planning, Finance and Administration and Works Sub- Committee as
well as service providers, community leaders and Assembly members.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
6.7 Contract Management
The Assemblies shall keep and regularly update a Contract Register. This is to
ensure efficient and effective project management. It will also provide the necessary
information on projects status and outstanding commitments for management
decision.
6.8 Budget Implementation Rules
The budget implementation process will be governed by the relevant sections of the
FAA, FAR, FM, the Procurement Act, the IAA, and any other regulations that may be
issued.
6.9 Accounting, Recording and Reporting
This section deals with responsibilities such as accounting, recording and reporting
requirements of MMDAs as laid down in the Financial Administration Act 2003,
(FAA), Financial Administration Regulation 2004 (FAR), the Local Government
Financial Memorandum and the MMDAs Accounting Manual developed by the
CAGD. It therefore provides a regulatory framework of the overall financial
management system of the MMDAs.
The main highlights of the Accounting Manual are
•
Legal and Regulatory Framework guiding public accounting system in ghana,
•
Accounting Principles and Administration
•
Overview of a District Assembly’s Financial Management System
•
Accounting Policies
•
District Assembly’s Chart of Accounts and update Procedures
•
Revenue Accounting
•
Purchasing and Commitment Control
•
Cheque and Cash Payments
•
Petty Cash and Imprest
•
Payroll Accounting (Salaries)
•
Inventory Management Procedures
•
Capital Expenditure Control
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 40
•
Fixed Assets Accounting
•
Reporting Requirements
•
Preparation of Periodic Accounts
•
Management Information System
•
Cash Management
•
Accounting Duties and Administration
The objective of the manual is to ensure compliance with the relevant financial laws
in the financial management system of all the MMDAs.
6.9.1 Legal framework for Public Accounting
Section 91 of the Local Government Act, 1993, Act 462, empowers the Minister
responsible for Local Government, after consultation with the Minister responsible for
Finance, to issue written financial instructions for the control and efficient
management of the finances of the Assemblies. The instruction may be issued either
generally or with respect to a particular District Assembly.
Regulation 4 of FAR, 2004 stipulates the following:

Regulation 4(1) ‘A head of department shall with the approval of the Controller
and Accountant–General given in consultation with the Auditor–General issue
Departmental Accounting Instructions to regulate the financial business of the
department, indicating the duties to be performed by specified officers, the
accounts to be kept and returns to be submitted, and such other instructions
as may be required for the proper conduct of the financial business of the
department.

Persons authorised to collect or receive public moneys and moneys in trust
for Government shall pay the monies promptly into the Public Fund Account
within twenty- four hours of receipt except in exceptional circumstances to be
identified by the CAG.
6.9.2 Accounting and Recording
All MMDAs shall use the basic accounting books in recording accounting
transactions. MMDAs shall keep proper books of accounts which will reflect the
accuracy and completeness of accounting transactions at any given period.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 41
6.9.3 Financial Reporting
Sections 38 -44 of the FAA deal with accounts and audit of MMDAs.
6.9.4 Basis of Accounts
Accounts prepared and submitted by MMDAs shall state the basis used in the
preparation of the accounts and shall identify any significant departures and the
reasons for the departures.
Financial statements shall be prepared in accordance with Generally Accepted
Accounting Principles (GAAP). The FAR recommends the adoption of either the
accrual or cash basis of accounting. Since the CAGD is mandated to determine the
basis of accounts for government, the modified cash basis is being adopted by
CAGD for use by MDAs and MMDAs.
It is therefore expected that all MMDAs adopt the modified cash basis of accounting
as a transitional measure to the accrual basis.
6.9.5 Classification of Accounts (CoA)
The Controller and Accountant-General shall, with reference to the approved
Government Chart of Accounts, determine the classification of accounts. The CoA
has four main classifications. These are revenue, expense, assets and liabilities.
MMDAs shall strictly use the CoA in the Composite Budget preparation and
implementation and in all their financial transactions.
The Controller and Accountant-General has the sole responsibility for the
management of the CoA, including the custody and update of the COA (Additions
and Terminations, etc.).
6.9.6 Monthly Statement of Accounts
Within a period of fifteen days after the end of the month, MMDAs are required to
prepare and submit their monthly financial statements to the CAGD and the AuditorGeneral.
The composition of the MMDA financial statements is as follows:
(a) a balance sheet showing the assets and liabilities for the month
(b) a statement of receipts and payments for the month
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 42
(c) a statement of revenue and expenditure for the month
(d) a cash flow statement for the month
(e) notes that form part of the accounts.
6.9.7 Other Supplementary statements to be attached to the financial
statements are:

Classification of Expenditure by Cost Centre and Nature

Classification of Expenditure by Cost Centre

Functional Classification of Expenditure by Cost Centre and Nature

Staff Advances Schedules

Deposit schedules

Bank Schedules

Bank Reconciliation Statements

Fixed Assets Schedule

Accounts Payables

Accounts Receivables

Revenue and Expenditure Trend

Revenue and Expenditure Chart

Fixed Assets Register

Trial Balance ( This should be part of the supplementary statements and not
part of the basic financial statements)
6.9.8 Annual Statement of Accounts
The composition of the Annual Statement of Accounts is same as the monthly
statements of account. However, the Annual Statement is to be prepared within a
period of three months after the end of the financial year.
Formats for preparation of the financial statements are attached to this document as
Annex 1
6.9.9 Role of Internal Auditors
In addition to the traditional functions y the Internal Auditor, shall, as per Section 120
(4) of the Local Government Act (Act 462, 1993), incorporate a status report and
issues relating to Composite Budget implementation in his/her quarterly report to the
Assembly.
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 43
CHAPTER 7
MONITORING AND EVALUATION
Monitoring and Evaluation (M&E) are two separate activities, but inter-related
strategies to collect data and report the findings on how well or not the MMDA
services, projects and programmes are performing. Monitoring shall take place
during the implementation stage while evaluation takes place after the budget
implementation period. Lessons learnt can inform management when formulating the
budget for the ensuing year.
7.1 Legal framework
The Local Government Act, 1993 Act 462, Section 142 and the National
Development Planning System Act, 1994 Act 480, Section 9 gives the legal basis for
monitoring funds allocated to assemblies. MMDAs are therefore required to develop
a monitoring system to ensure the proper use of funds. Under Section 120 and
Section 121 the Local Government Act, the Internal Audit and External Auditors
Operations are also respectively stated to ensure that public funds are used
judiciously.
The Monitoring and Evaluation system and procedures follow the following steps:

Develop and manage the Assembly’s M&E Plan to ensure a proper flow of
information;

Provide potential decision-makers with management information for effective
implementation of programmes and projects;

Prepare quarterly/ Mid-year/ End of year reviews of the budget and plan of the
Assembly. The Assemblies shall meet all stakeholders to review the progress
of plans and programmes;
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 44

The RPCU, DPCU, FDU, MLGRD and other relevant government institutions
shall be responsible for monitoring the use of funds, plans and programmes of
the MMDAs;

The aforementioned agencies shall after monitoring prepare and submit
reports to all relevant stakeholders;

Utilization of funds shall follow laid down financial rules and regulations; and

Ensure greater transparency, efficiency and accountability in the management
of funds.
7.2 Principles Governing Monitoring and Evaluation at the MMDA Level

The MMDAs shall assess the availability of funds before each project and
programme is implementation;

Monitoring should be continuous throughout the implementation of projects
and programmes;

The monitoring process should be simple and transparent;

The monitoring and evaluation indicators should concentrate on key specific
issues for example, budget variance, budget timeliness, compliance and other
such indicators; and

The monitoring and evaluation exercise shall cover both factual evidence and
with the participation of stakeholders.
The DPCUs shall monitor all MMDAs financial activities. In executing the monitoring
tasks, there shall be an assessment of the extent to which targets set for the
programmes, projects and activities have been achieved.
The following tables should be used for monitoring and evaluation:
Table 1: Performance Measures
PMs
Indicators
Credibility
Information source, Assessment basis
Budget Variance
Timeliness
Budget approval date (30th Nov)
Budgeting
Compliance Use of Budget Guidelines
COMPOSITE BUDGET MANUAL FOR METROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 45
MTDP Goal:
The new policy framework Objective to Link:
Objective:
Indicators
Indicator Type
Baseline 2009
Targets
Monitoring
Frequency
Responsibility
MoFA
Semi- annually
MoFA, DPCU
2014
2014
2013
2012
Data
Sources
% increase in Output
yield of selected
crops, livestock
and fish
Other
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
Table 3: M & E Calendar
Activities
TIME FRAME
2012
2013
2014
DMTDP Evaluations
2015
PPMED
Mid-term Evaluation
Terminal Evaluation
Specific Evaluation and studies
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Responsibility
Page 39
Budget
Table 4: IMPLEMENTATION, MONITORING AND AUDITING FRAMEWORK
ACTIVITY
IMPLEMENTATION OF
BUDGET RELEASES
INDICATOR
DEFINITION OF
INDICATOR
TARGET
RESPONSIBLE
AGENCY
QTR 1
30%
OF Sector
Specific NTWG DIRECTOR
BUDGET
Transfer releases of OF BUDGET
15/2/12
RELEASED
GHC
TO MMDAs
DACF RELEASES NTWG DOB/DACF
TO MMDAs
ADM/MLGRD
15/4/12
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
QTR 2
QTR 3
QTR 4
15/5/12
15/8/12
15/11/12
15/5/12
15/8/12
30/1/13
7.3 Coverage of the Monitoring and Evaluation Exercise
The Audit Report Implementation Committee (ARIC) shall ensure compliance with
both internal and external audit recommendations.
The DPCU shall monitor the status and achievement of set targets (indicators both
MMDAs specific and national) in the following:

Revenue mobilization and expenditure;

GOG funds;

DACF-funded programmes and projects;

DDF and UDG-funded projects; and

Donor-funded programmes and projects.
7.4 Internal and External Audit Inspection of Transactions
This requires the continuous monitoring of Assembly’s budget and transaction details
to ensure proper and effective use of public funds, and compliance with sound
financial management practices. Internal Auditing should be carried out as and when
an expenditure transaction takes place. The Internal Audit shall include comments on
implementation of the Composite Budget in their quarterly reports.
MMDAs shall submit their financial statements to the Auditor General by 31st March
each year. External audit can serve various objectives. Basic financial audit attests to
the accuracy and fairness of the MMDAs end of year financial statements. Compliance
audit verifies, for example, that expenditures were properly authorized and that rules
and procedures were followed in carrying out expenditure.
Performance audit or evaluation will meanwhile assess whether spending or
programme implementation is delivering “value for money”.
7.5 Frequency of Monitoring
Full scale monitoring shall be carried out every quarter by RCC and Sector Agencies.
However, in case of suspected irregularities, the MMDAs, RCC, MLGRD and Sector
Agencies could request for specific monitoring assignments at any point in time.
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
7.6 Briefing of MMDCEs after Monitoring Exercises
Following each monitoring assignment, the monitoring team shall hold a meeting to
brief the MMDCE’s and other heads of department on progress, observations and
gaps identified.
At the end of the meeting, the DPCU should agree in writing by assigning task and
agreeing on deadlines. (for details refer to the separate Internal Audit, External Audit
and Accounting Manuals).
.
7.7 Reporting on Monitoring Events
The DPCU shall complete a quarterly report for circulation not later that one month
after the monitoring exercise. This will allow the Assembly and the nation to take
necessary action on issues that require redress before the next assignment is
undertaken.
7.8 Circulation of the Monitoring Report
Finalized monitoring reports shall be submitted to MMDCE who shall distribute them
as follows:








MDAs
PM
RCC
MoFEP
MLGRD
LGSS
NDPC
DACF
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
FINANCIAL STATEMENTS
ANNEX 1
NAME OF MMDA:
BALANCE SHEET AS AT …………………
NOTES
CURRENT
GH¢
PREVIOUS
GH¢
NON FINANCIAL ASSETS
Building and Structures
Machinery and Equipment
Work In Progress
Other Non-Current Assets
Inventory
17
18
19
20
21
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
FINANCIAL ASSETS-Foreign
Deposit
Securities other than shares
Loans
Shares and other equity
Other Account Receivables (Advances)
22
23
24
25
26
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
FINANCIAL ASSETS-Domestic
Currency and Deposit
Securities other than shares
Loans
Shares and other equity
27
28
29
30
ASSETS
TOTAL ASSET
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
XXX
Page 39
XXX
LIABILITIES
DOMESTIC
Currency and deposits
Securities other than shares
Loans
Other Public Funds
Other accounts payable
31
32
33
34
35
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
FOREIGN
Currency and deposits
Securities other than shares
Loans
36
37
38
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
ACCUMULATED RESERVE
39
XXX
XXX
SURLUS/DEFICIT
40
XXX
XXX
XXX
XXX
TOTAL LIABILITY
NET WORTH
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
NAME OF MMDA:
STATEMENT OF RECEIPTS AND PAYMENTS
FOR THE MONTH ENDED ………………………
ANNUAL
BUDGET
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
REVISED
BUDGET
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
MONTHLY
BUDGET
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
ACTUAL
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
CUM ACTUAL
TO DATE
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
100
100
100
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
xxx
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
TOTAL PAYMENTS
XXX
XXX
XXX
XXX
100
100
100
Net Receipts/ (Payments)
XXX
XXX
RECEIPTS
Rates
Land and Concessions
Fees and Fines
Licenses
Rent
Grants
Investment Income
Miscellaneous
NOTE
2
3
4
5
6
7
8
9
TOTAL RECEIPTS
PAYMENTS
Compensation of Employees
Goods and Services
Consumption of Fixed Capital
Interest
Grants
Social Benefits
Other Expenses
10
11
12
13
14
15
16
XXX
Cash and Bank Balance as at
….(Opening)
XXX
Cash and Bank Balance at
….(Closing)
XXX
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
% OF
ACTUAL
VARIANCE
NAME OF MMDA:
STATEMENT OF REVENUE AND EXPENDITURE
FOR THE MONTH ENDED …………………………
REVISED
BUDGET
GH¢
XXX
MONTHLY
BUDGET
GH¢
XXX
MONTHLY
ACTUAL
GH¢
XXX
% OF
ACTUAL
NOTE
2
ANNUAL
BUDGET
GH¢
XXX
XXX
GH¢
XXX
3
4
5
6
7
8
9
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
100
XXX
10
11
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
12
13
14
15
16
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
TOTAL
EXPENDITURE
XXX
XXX
XXX
XXX
XXX
XXX
SURPLUS/(DEFICIT)
XXX
XXX
XXX
XXX
XXX
XXX
REVENUE
Rates
Land and
Concessions
Fees and Fines
Licenses
Rent
Grants
Investment Income
Miscellaneous
TOTAL REVENUE
EXPENDITURE
Compensation of
Employees
Goods and Services
Consumption of
Fixed Capital
Interest
Grants
Social Benefits
Other Expenses
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
VARIANCE
NAME OF MMDA:
STATEMENT OF CASH FLOW FOR THE MONTH
ENDED……………………….
CASH FLOW FROM OPERATING
ACTIVITIES
NOTES
CURRENT
PREVIOUS
GH¢
GH¢
Cash Receipts From Operating Activities
Grants
Other Revenue
7
41
XXX
XXX
XXX
XXX
Cash Payments From Operating Activities
Compensation of Employees
Goods and Services
Consumption of Fixed Capital
10
11
12
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
Interest
Grant
Social Benefits
Other Expenses
13
14
15
16
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
XXX
XXX
Net cash flow from operating activities
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
CASH FLOW FROM INVESTING
ACTIVITIES
Purchase/Granting of non-financial assets
Fixed Assets
Inventory
WIP
41
42
43
Cash outflow from investing in nonfinancial assets
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
(XXX)
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Sale/Recovery of non-financial assets
Fixed Assets
Inventory
WIP
Cash inflow from sale of non-financial
assets
Net cash flow from investment in
Financial assets
44
45
46
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
CASH FLOW FROM FINANCING ACTIVITY
DOMESTIC
INFLOWS
OUTFLOWS
XX
(XX)
XX
(XX)
XX
XX
XX
(XX)
XX
(XX)
XXX
XXX
NET CHANGE IN STOCK OF CASH
XXX
XXX
Cash and cash equivalent @ beginning
XXX
XXX
Cash and cash equivalent @ close
XXX
XXX
47
48
Net incurrence of domestic liability
FOREIGN
INFLOW
OUTFLOW
Net incurrence of foreign liability
49
50
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
NAME OF MMDA:
PRINCIPAL NOTES TO THE FINANCIAL STATEMENTS
NOTES
CURRENT
GH¢
PREVIOUS
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
2 Rates
3 Land and Concessions
4 Fees and Fines
5 Licenses
6 Rent
7 Grants
8 Investment Income
9 Miscellaneous
10 Compensation of Employees
11 Goods and Services
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
12 Consumption of Fixed Capital
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
13 Interest
14 Grants
15 Social Benefits
16 Other Expenses
17 Building and Structures
Dwelling
Non residential
Other structures
18 Machinery and Equipment
Transport Equipment
Other Machinery and
Equipment
19 Work In Progress
Dwelling
Non Residential
Other Structures
Transport Equipment
Other Machinery and
Equipment
20 Other Non-Current Asset
Land
Soft wares and Licenses
21 Inventories
Strategic stocks
Materials and supplies
Finished Goods
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
22 Deposit
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
xxx
xxx
xxx
xxx
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
23 Securities other than shares
24 Loans
25 Shares and other equity
Other Account Receivables
26 (Advances)
Other Account Receivables
Staff and Departmental
Advances
Foreign Missions
Remittances & Advances
27 Currency and Deposit
28 Securities other than shares
29 Loans
30 Shares and other equity
31 Currency and deposits
32 Securities other than shares
33 Loans
34 Other Public Funds
35 Other accounts payable
36 Currency and deposits
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
37 Securities other than shares
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
38 Loans
39 Accumulated Reserve
40 SURLUS/DEFICIT
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
NAME OF MMDA:
CLASSIFICATION OF EXPENDITURE BY COST CENTRE AND NATURE
Compensation
of Employees
GH¢
Goods &
Services
GH¢
Consumption
of Fixed Capital
GH¢
Interest
GH¢
Grants
GH¢
Social
Benefits
GH¢
Other
Expense
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Central Administration Department
Finance Department
Education, Youth and Sports Department
Health Department
Waste Management Department
Agriculture Department
Physical Planning Department
Social Welfare & Community Development Department
Natural Resources Conservation Department Forestry,
Game and Wildlife Division
Works Department
Trade, Industry Department
Budget and Rating
Legal Department
Transport Department
Disaster Prevention Department
Urban Roads Department
Births and Deaths
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
TOTAL
XXX
XXX
XXX
XXX
XXX
XXX
XXX
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
NAME OF MMDA:
CLASSIFICATION OF EXPENDITURE BY COST
CENTRE
Central Administration Department
Finance Department
Education, Youth and Sports
Departments
Health Department
Waste Management Department
Agriculture Department
Physical Planning Department
Social Welfare and Community
Development Department
Natural Resources Conservation
Department Forestry, Game and
Wildlife Division
Works Department
Industry and Trade Department
Budget and Rating Department
Legal Department
Transport Department
Disaster Prevention and
Management Department
Urban Roads Department
Births and Deaths
BUDGET
GH¢
ACTUAL
GH¢
VARIANCE
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
TOTAL
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
NAME OF MMDA:
FUNCTIONAL CLASSSIFICATION OF EXPENDITURE BY COST CENTRES AND NATURE
Compensation
GH¢
Goods &
Services
GH¢
Consumption of Fixed
Capital
GH¢
Interest
GH¢
Grants
GH¢
Social
Benefits
GH¢
Other
Expenses
GH¢
TOTAL
GH¢
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
General Public Services
Sub Total
Defence
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Public Order & Safety
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
Economic Affairs
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Environmental Protection
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
Housing and Community Amenities
XXX
XXX
XXX
XXX
Sub Total
XXX
Health
Sub Total
XXX
XXX
XXX
XXX
Recreation, Culture and Religion
XXX
XXX
XXX
XXX
Sub Total
XXX
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39
Education
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
GRAND TOTAL
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Sub Total
XXX
XXX
XXX
XXX
XXX
XXX
Social Protection
COMPOSITE BUDGET MANUAL FOR MTROPOLITAN/MUNICIPAL/DISTRICT ASSEMBLIES
Page 39