GUIDELINES FOR T HE UTILISATION OF THE DISTRICT ASSEMBLIES COMMON FUND
FOR 2025 FISCAL YEAR
The following Guidelines are issued to all Metropolitan/Municipal/District Assemblies
(MMDAs) in accordance with section 126(3) of the Local Governance Act, 2016 (Act 936)
which stipulates that “the Minister shall, in consultation with the Minister responsible for
Finance, determine the category of expenditure of the approved development budget of
District Assemblies that must in each year be met out of amounts received by the District
Assemblies from the District Assemblies Common Fund’’ for judicious utilisation of the
disbursed funds
It is a requirement for all MMDAs to include a detailed profile of their District, which includes
details on the following facilities:
a. Education (Facilities, Enrolment and trained teacher population)
b. Health (Facilities and Professionals)
c. Water (Coverage)
d. Road (Coverage)
e. Environmental Sanitation (Solid and Liquid Waste Management)
PART I
NATIONAL DEVELOPMENT PRIORITIES
In line with the Government Priority Programmes, all MMDAs are required to allocate
resources for all the under listed items from their share of the Common Fund as follows;
S/N GOVERNMENT'S PRIORITY PERCENTAGE OF
DACF ALLOCATIONS
1. Government Flagship Programmes — Design and 25%
Construction of 24-Hour Economy Model Markets
2. Health Facilities (at least 2 CHPS Compounds) 10%
3. Educational Facilities (1 KG Block, 1 Primary School 10%
Block, 1 JHS School Block)
4. Water (Minimum 10 Boreholes) 10%
5. Environmental Sanitation (Solid and Liquid Waste 10%
Management)
6. Administration including M&E Activities 5%
7. School Furniture 10%
8. Completion of Legacy Projects 20%
Note on Administrative Expenditure (5%)
This should be used in areas such as Monitoring and Evaluation (M & E), Human Resource
development, logistics support DPCUs/MPCUs activities, office equipment, furniture and fittings,
service and maintenance and Project management etc. (This excludes transfer grants and any
expenditure disallowed in the usage of the fund)
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PART II
BUDGETARY CONTROL AND ACCOUNTING
Annual Development Budget Extract
Each District shall each year prepare an Annual Development Budget Extract from the
Composite Budget covering the DACF. This is because the DACF allocations are not made
before the commencement of the MMDAs Budgetary process for the period.
The Annual Development Budget Extract covering the District Assemblies Common Fund
shall be part of the approved composite budget of the District Assembly in accordance with
Section 82 of the Local Governance Act, 2016 (Act 936) and transmitted along with a copy of
the Resolution to each Regional Co-ordinating Council (RCC).
Each RCC will collate and harmonise annual Development Budget Extract approved by
District Assemblies in their areas of jurisdiction into a Regional District Assemblies Common
Fund Budget.
In collating and harmonising the Regional District Assemblies Common Fund Budget, the
Regional Co-ordinating Councils shall ensure that projects/programmes and other activities are
in conformity with the Agenda for Jobs.
The 16 Regional Co-ordinating Councils shall distribute the collated Regional District
Assemblies Common Fund Budget to the:
a. Office of the Administrator of the District Assemblies Common Fund;
b. Ministry of Local Government, Chieftaincy and Religious Affairs ;
c. Ministry of Finance; and
d. National Development Planning Commission.
Accounting for Utilisation of the Fund
Financial Reports indicating:
a. Monthly Cash Book (Financial Returns);
b. Amount utilised;
c. Balance in the District Assemblies Common Fund Account; and
d. The outstanding contractual financial commitment for the succeeding period of three
months should be submitted by the District Assembly at the end of each quarter (i.e.
end of March, June, September and December) in a Prescribed Form and distributed to
the following:
i. Ministry of Local Government, Chieftaincy and Religious Affairs
ii. The Administrator, District Assemblies Common Fund
iii. Member (s) of Parliament from the Districts
iv. The Controller and Accountant General's Department
v. Office of Regional Co-ordinating Councils
vi. Office of the Head of Local Government Service
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Monthly Trial Balance, Receipt and Payments Statement and Bank Reconciliation
Statement
The periodic receipts from the District Assemblies Common Fund and expenditures, therefore,
should be incorporated in the Monthly Trial Balances in two forms:
a. Project by Project recording expenditure
b. All payments and deductions (as requested by the MMDAs) by the Administrator of
the DACF on behalf of Districts should be recorded in the relevant books of Accounts
of the Districts and reflected in the Trial Balances, Receipts and Payments,
Reconciliation Statements and other Financial Reports.
c. Additionally, any unspent balance of an MMDA share of the DACF should under no
circumstances be credited to an Accumulated Surplus Fund of the District. This balance
should be treated as part of the Finances of net Assets in the Balance Sheet.
Projects Implementation and Reporting
Each District Assembly shall report the physical progress of implementation of each project
quarterly in the Prescribed Form.
Award of Contracts (Refer to Public Procurement Act, 2003 (Act 663) as amended
MMDAs are to be guided by the appropriate provision in the Public Procurement Act (663) for
their Projects and programmes.
Payments from the DACF
All transactions, including requested payments and deductions by the Administrator of the
DACF and unredeemed contractual retentions, should be recorded in the Books of Accounts
of the Assembly. The quarterly Financial Returns and Monthly Trial Balances of District
Assemblies should reflect their transactions.
The Finance Officers should make all payments of the District Assemblies in accordance with
existing financial regulations and administrative instructions in force.
The unredeemed contractual retention should be treated as deposits; and payment of matured
retention monies should be paid out of the Deposit Account.
Standard Design of Projects
Standard Designs and their variations approved by the relevant sectors should be used in
implementing all projects involving the construction of infrastructure. In this connection, the
Ministry of Local Government, Chieftaincy and Religious Affairs have compiled some
Standard Designs. Copies of the design document, including drawings and tender bid
documents, may be purchased from the Regional Co-ordinating Councils.
Supervision and Monitoring of Projects
In accordance with the Local Governance Act of 2016 (Act 936) and Section 188 (1) (b),
Regional Co-ordinating Councils are to monitor the use of moneys allocated to the District
Assemblies by any agency of the Central Government.
The Regional Co-ordinating Councils are also to monitor the performance of Committees of,
Statutory Sub-Committees and the Sub-District Structures (Sub-Metropolitan District, Urban,
Town, Zonal and Area Councils) and Unit Committees of the District Assemblies.
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Disbursements on Sub-Metropolitan District, Urban, Town, Zonal and Area Councils
Basis
MMDAs are to note that Sub-Metropolitan District, Zonal, Urban, Town and Area Councils
are demarcated development areas for purposes of direct allocation of funds and other
development resources. This includes the identification and prioritisation of development
projects by the communities in the Sub-Metropolitan District, Urban, Town, Zonal and Area
Councils for consideration, approval and inclusion in the development budget of the District
Assemblies. (L.I.1589, Schedule 2, Section 9 (iii) (vii)).
PART III
UTILISATION OF THE RESERVE FUND ALLOCATED TO PARLIAMENTARY
CONSTITUENCIES LABOUR PROJECTS
In approving the formula for sharing the District Assemblies Common Fund, Parliament, by
consensus decision in 1997, resolved that a percentage of DACF allocation to the Reserve Fund
shall be shared on a Parliamentary Constituency basis and that the utilisation of this amount
should be for projects selected and approved by the Member (s) of Parliament of each District
Assembly
The following revised instructions are provided in accordance with Section 126 of the Local
Governance Act, 2016 (Act 936). The amount shall be shared equally to the 275 Parliamentary
Constituencies;
1. The amount shall be released quarterly to the District Assemblies by the Administrator of
the District Assemblies Common Fund, and the Member (s) of Parliament shall be notified;
2. A separate account shall be kept in respect of each Constituency;
3. Under no circumstances shall moneys be withdrawn from this account without a
memorandum from the sitting Member (s) of Parliament from the Constituency;
4. Where a memorandum has been raised to the District Chief Executive for a project to be
financed under this Fund, the Member (s) of Parliament shall be given a reply within
fourteen (14) working days as to whether the request has been passed or whether a query
has been raised;
5. The Finance Officer shall make payments from the account of the District Assembly;
6. Accounting for this Fund shall form part of the accounts of the District Assembly and shall
be incorporated in the financial returns of the District Assembly; and
7. The District Chief Executive shall submit half-yearly progress reports on the operation of
the Constituency Account to the Member (s) of Parliament with copies to the:
i. Presiding Member, for the information of the District Assembly; and
ii. Regional Minister, who shall compile the District half-yearly returns into
Regional returns and transmit them to the Minister for Local Government,
Decentralisation and Rural Development.
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Guide for Selection of Projects
8. The selection of projects for support by the Member of Parliament under the Constituency
Fund should conform to National Policy Frameworks and Government Priorities and
District Medium Term Development Plans (MTDPs) and objectives and should:
i. Fall within the scope of functions of District Assemblies
ii. contribute to the poverty reduction strategy of District Assemblies
iii. Provide infrastructure in the areas of education, health, agriculture, water, sanitation,
roads, street lights, markets, drains and ICT
iv. Promote Local Economic Development (LED) culminating in youth employment
v. Aim at income generation and wealth creation
vi. contribute to security, disaster prevention and management
vii. revenue mobilisation
9. Projects, which fall within the functions of sector Ministries (such as clinics under Health
and school buildings under Education) that may require additional inputs to become
operational or future repairs and maintenance, should have the approval of the relevant
sector Ministry before its commencement.
Projects with funding from the Private Sector should be considered in line with the Public
Private Partnership Act, 2020 (Act 1039) and Legislative Instrument 2411 (L.I. 2411).
10. Where credit is granted to groups or individual entrepreneurs from this Fund, it shall be
done in conformity with credit recovery procedures.
__________________________________
AHMED IBRAHIM (MP)
MINISTER FOR LOCAL GOVERNMENT,
CHIEFTAINCY AND RELIGIOUS AFFAIRS
DISTRIBUTION LIST ATTACHED
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THE ADMINISTRATOR
DISTRICT ASSEMBLIES COMMON FUND
HON. REGIONAL MINISTERS
ALL METROPOLITAN, MUNICIPAL AND DISTRICT CHIEF EXECUTIVES
ALL PRESIDING MEMBERS OF MMDAs
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