The last several decades have seen countries around the world decentralizing key services to the local level. Decentralisation has been seen as a way to improve efficiency of state structures, and bring decision-making closer to the people affected by policymakers' decisions. In Ghana, the process of decentralisation began in 1988.

In 1993, the Districts Assemblies' Common Fund was established to give Metropolitan, Municipal and District Assemblies more financial autonomy to actually make decisions at the local level. It has since become an important tool for the achievement of fiscal decentralisation in particular and overall decentralisation in general. To ensure prudent use of the DACF, the Ministry of Local Government and Rural Development, Ministry of Finance and Economic Planning, and the Administrator of the DACF set out clear guidelines for the utilisation of the fund by MMDAs to ensure value for money. Some of these guidelines relate to procurement, while others relate to special allocations, such as a 2 percent earmarked to reduce poverty among Persons With Disability and a 7 percent earmark for Members of Parliament to use for development purposes in their constituencies.

While decentralisation has been tried in many countries, the results have not always been satisfactory. Decentralisation has sometimes fallen short of expectations because local governments are given new responsibilities, but insufficient resources to carry them out. Though decentralisation has sometimes been touted as a way to reduce inefficiency and corruption, in some cases, it seems rather to only decentralise corruption and inefficiency to the local level.

The study focused on some of the key elements of the DACF. These include: the extent of community participation in DACF sponsored projects; the level of citizens awareness and access to information on the DACF by communities; the degree to which DACF sponsored projects are awarded in line with National Procurement Law; and finally, the utilisation of 7 percent MPs and PWDs 2 percent share of DACF.

The study was conducted in the second and third quarter of 2010 covering 50 districts across four administrative regions in Ghana. Information for the study was gathered by grassroots civil society actors.

Generally, the findings reveal that there has been non adherence to the guidelines for the utilisation of the DACF funds by MMDAs, particularly the 2 percent share of the fund for PWDs. The use of DACF money is not transparent, and frequently is decided without meaningful community participation. Access to information on and community participation in DACF projects have become very problematic to the extent that responsiveness of MMDAs to the local needs of citizenry has been affected. The main findings of the study are as follows:

1.1 Main Findings

Management and utilization of DACF for PWDs and by MPs

• More than two-thirds of PWDs were aware of their 2 percent share in the DACF.
• Access to the 2 percent-share of the DACF for PWDs from 2003 to 2008 was less than one- third of sampled PWD Associations. Access in the Northern Region was more than 50 percent. However, in the Upper East, Upper West and Greater Accra regions less than one-third of PWDs successfully accessed the funds in 2009. The establishment of the National Council for Persons with Disability could have contributed to the relative high access in 2009.
• About 44 percent of PWDs who successfully accessed the 2 percent share of the DACF between 2003-2009 expended the fund on the celebration of the International Day for the Disabled and attendance of meetings/conferences.
• Contrary to guidelines, about 55 percent of MMDAs sampled do not have the mandated Disability Fund Management Committees in place. Per the new guidelines the existence of these committees is a pre-requisite to accessing the PWD-share of the DACF.
• Nearly two-thirds of MMDAs do not have separate bank accounts for the management of the PWD-share of the DACF. The absence of these bank accounts prevents disbursement of the PWDs' share of the DACF with reference to the new guidelines for the management and disbursement of the DACF.
• Nearly 36 percent of MPs have had conflict(s) with their respective DCEs over the appropriation of MPs Fund since 2005. According to the MPs, this has adversely affected the implementation of projects in the constituencies.

Awareness and Access to information

• More than two-thirds of community leaders have heard of the DACF.
• The study observed that the major source of information on DACF for communities was through the Assembly Members.
  • Radio which in recent times has become an effective channel for communication, particularly with rural populations was the least used by MMDAs.
  • MMDAs are required by Law to prepare Medium Term Development Plans and Budgets to guide the overall development of their areas. MTDPs are means by which citizens needs and aspirations are translated into implementable programmes and projects. Out of the 29 district assemblies that responded to the study more than two-thirds did not provide their MTDPs and supplementary budgets for the period 2005-2009. None of the district assemblies could provide information on DACF expenditure returns.

Community Participation

• The study revealed that about half of community members were involved in the planning, implementation, and monitoring and evaluation of the DACF projects as reported by community leaders. For those community members who did not participate in the planning, implementation and monitoring of DACF projects, the key reasons reported by community leaders was lack of access to information on DACF projects; and ineffective communication system employed by the MMDAs.

Disbursement and Utilization of DACF

• The study observed that about 50 percent of community leaders sampled do not believe that, MMDAs have effectively used the DACF to address their development needs. According to these community leaders, their limited involvement in DACF projects has made it difficult for theMMDAs to be responsive to their needs.
• Though 62 percent of MMDAs recognised the importance of cash flows, 45 percent of them actually prepare it.
• More than two-thirds of all procurements by MMDAs are through Competitive Bidding. According to the MMDAs, this method of procurement is used because contracts are within the threshold of the District Tender Committee. Also, it provides opportunity to ensure that there is value for money.

Recommendation

Based on the findings of our study, we make the following recommendation for policy consideration with a view to improving the access and utilisation of the DACF by the poor and the marginalised.

1. As a matter of priority, the Ministry of Local Government and Rural Development should ensure that all MMDAs comply with the guidelines for the disbursement and utilisation of the DACF for PWDs by establishing District Disability Fund Management Committees and opening separate bank accounts for the fund to enable PWDs access their 2 percent share of the DACF.
2. District Assemblies should pursue innovative measures that ensure access to information on DACF by citizens to elicit their support and participation in the implementation of DACF projects. Currently, communities rely on their Assembly Members for information which is not very effective. MMDAs should therefore explore the option of relying on community radio station for the dissemination of information on the DACF.
3. To ensure sustainability and community ownership of DACF projects, District Assemblies should increase community participation at all stages of the project since communities are currently dissatisfied with their level of participation in DACF projects.
4. In view of the inconsistencies between projected allocations and actual disbursement of DACF, it is strongly suggested that MMDAs prepare cash budgets to ameliorate the effect of the inconsistencies in implementation of projects.

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