DACF explains why fixed timetable for fund disbursement remains impractical
The District Assemblies Common Fund (DACF) has clarified that it cannot publish a fixed quarterly timetable for the release of funds to Metropolitan, Municipal and District Assemblies (MMDAs) unless structural reforms are put in place to guarantee timely transfers.
This comes in response to recent calls by the Ghana Developing Communities Association (GDCA), reported by Graphic Online, which urged government to ensure predictable quarterly disbursements of the Fund.
In a statement signed by Administrator Michael Harry Yamson, the DACF explained that its resources are not internally generated but come from statutory transfers made by the Government of Ghana. These transfers, it said, are tied to actual revenue mobilization and releases from the Treasury, which have historically not always been timely.
“For the Fund to publish and adhere to a fixed timetable, there must first be an Automatic Transfer Mechanism that pays funds directly into a DACF account as revenues are collected. Only then can the Fund consistently guarantee the quarterly disbursements,” the statement noted.
The Fund also emphasized the importance of accountability at the local government level. MMDAs are constitutionally required to submit monthly expenditure returns, which are critical for compliance monitoring and annual reporting to Parliament. However, the DACF revealed that Assemblies often delay the submission of these returns and the Fund has no authority to compel compliance beyond its mandate. It therefore urged Assemblies to streamline their internal processes and submit reports within three to five working days after the close of each month.
According to the statement, the credibility and sustainability of a quarterly disbursement timetable will depend both on the establishment of an Automatic Transfer Mechanism to ensure funds are promptly deposited into the DACF account and on improved reporting discipline by the Assemblies in line with the Public Financial Management Act.
While reiterating its commitment to transparency and accountability, the Fund stressed that publishing a rigid timetable under current conditions “would be misleading and impractical.” It urged stakeholders to ground public debate in the legal and institutional realities of its operations in order to ensure sustainable reforms.