CITY PRESENTATION Overview of Finances and Revenue Management - - PowerPoint PPT Presentation

CITY PRESENTATION Overview of Finances and Revenue Management

TAMALE METROPOLITAN ASSEMBLY

Prepared By:

Tamale Metropolitan Assembly Team Members

Presented By :

Hope Dziekpor

Designation: Metropolitan Budget Officer

Purpose of presentation

To give all other participants an understanding of city context, legal framework, challenges and

• pportunities that TaMA is faced with.

TAMALE City Context:

Size of Tamale Metropolis is 750 sq. km

• 2. Total population:

During the 1984 population census the Metropolis had a population of 167,778 inhabitants. This figure rose up to 293,881 in 2000 (2000 Population and Housing Census (PHC)). The Provisional figure from the 2010 PHC is 414,548. GDP figures: Gh ¢6,690.069.76 $3,935,334.70 Size of metropolitan staff : 309 permanent staff 40 casual labrourers 349 Rank if available in the country: Fourth largest City in Ghana and the fastest growing city in West Africa ( Ghana Living Standard Survey Report)

• 2. Legal & Institutional Context &

Assessment:

• Main laws that govern the management of finances and the extent to which is

working and the enabling environment .

• 1.Act 462 of 1993 (Section 8.6 describes sources of revenue)
• 2.Financial Memoranda
• 3.Financial Administration Act
• 4.Financial Administration Regulation (LI 1802) breaks down act for

implementation

• 5.Procurement Act 633
• 6. Assembly’s Bye-Laws
• 7.Internal audit Act
• 8. National Development Planning Commission Act 480
• 9. Local Government Service Act 1961
• All these laws work and are complied with except with a few challenges eg

difficulty in implementing the Procurement Act

• 2. Legal & Institutional Context &

Assessment Cont.

TaMA mandate in terms of public services. 2.1Provision of basic socio-economic infrastructure and services i] Educational ii] Health iii] Water and Sanitation iv] Rural Electrification 2.2 Waste management services i] Solid waste management Ii] Liquid waste management

– Maintenance of Law and Order – Planning Authority – Roads

• 2. Legal & Institutional Context &

Assessment Cont.

Rating the level of decentralization in Ghana Highly decentralised RCC

Metropolitan Assembly Municipal Assembly District Assembly

Sub-Metros Zonal/Town Area Council Council

Town Councils

Unit Committees Unit Committees Unit Committees

• 3. Key Financial Challenges
• 1. Low revenue generation /Poor responsiveness
• f the populace
• 2. Poor Data Base / Revenue Leakages
• 3. Non computerization of revenue Collection and

its management

• 4. Irregular releases of Central government grant

(District Assemblies’ Common Fund)

• 5. Inadequate number of revenue collectors

• 4. City Revenue Context:

Size of total capital and operating budget (please indicate the exchange rate Gh ¢1.63 vs 1 USD)

Capital Budget-Gh¢6,021,064.54 ( $3,693,904.63)

Operating Budget-Gh¢669,005.22 ($410,432.65)

Amount of subsidies received from the government and other local government entities Gh¢3,916,726.72 $ 2,303,956.89 District Assemblies' Commom Fund (5% Central Government Revenue) Gh¢806 ,252.00 $474,265.88 District Development Facility (Tied to performance and minimum conditions) Gh¢1,952,772 $1,148,689.41 Other Donor Supports

Sources of income TAX , PERFORMANCE AND ANALYSIS

Head

DESCRIPTION 2006 JAN.-DEC. 2007 JAN.-DEC. 2008 JAN.-DEC. 2009 JAN.-DEC. 2010 JAN.-DEC. 2011 JAN -JUNE Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ 1 RATES Budgeted 87,007.00 542,701.50 550,470.00 55,504.02 455,402.00 551,102.00 Actual 20,751.54 36,340.91 61,866.58 121,554.01 183,664.46 317,201.85 24% 7% 11% 219% 40% 58% 2 LANDS Budgeted 7,500.00 12,000.00 30,000.00 35,000.00 45,000.00 95,000.00 Actual 8,348.31 26,454.71 29,800.74 39,739.96 104,490.77 110,181.00 111% 220% 99% 114% 232% 116%

Sources of income TAX , PERFORMANCE AND ANALYSIS

Head

DESCRIPTION 2006 JAN.-DEC. 2007 JAN.-DEC. 2008 JAN.-DEC. 2009 JAN.-DEC. 2010 JAN.-DEC. 2011 JAN -JUNE Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ 3 FEES AND FINES Budgeted 43,122.00 88,160.00 77,260.00 70,050.00 67,890.00 92,500.00 Actual 62,055.05 68,479.76 49,775.14 52,258.99 124,485.54 103,624.35 144% 78% 64% 75% 183% 112% 4 LICENCES Budgeted 36,376.05 91,716.40 86,556.00 162,816.00 190,676.00 414,956.00 Actual 58,819.49 63,579.44 102,733.37 348,028.36 268,361.60 375,397.99 162% 69% 119% 214% 141% 90%

Sources of income TAX , PERFORMANCE AND ANALYSIS

Head

DESCRIPTION 2006 JAN.-DEC. 2007 JAN.-DEC. 2008 JAN.-DEC. 2009 JAN.-DEC. 2010 JAN.-DEC. 2011 JAN -JUNE Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ Gh¢ 7 INVESTMENT INCOME Budgeted 1,517.00 2,102.00 1,323.00 1,354.00 3,080.00 11,350.00 Actual 282.96 745.99

• 2,259.57

9,007.30

• 19%

35% 0% 167% 292% 0% 8 MISCELLANEO US INCOME Budgeted 1,022.00 3,102.00 2,400.00 1,600.00 13,100.00 55,100.00 Actual 2,403.52 3,455.20 260.00 10,794.00 91,403.00 50,597.21 235% 111% 11% 675% 698% 92% TOTAL-IGF BUDGETED 197,364.05 778,831.90 791,459.00 369,874.02 814,148.00 1,264,008.00 TOTAL-IGF ACTUAL 179,979.07 243,817.62 265,073.18 600,946.39 805,534.47 987,325.00 % Collection 91% 31% 33% 162% 99% 78%

How city revenue management works

1.Revenue forecasting starting from expenditure to revenue ( based

• n expenditure ,revenue requirement is determined)
• talking about revenue sources and application of fees fixed

annually making specific estimate based on growth in revenue from each existing sources

• New sources and additional revenues as may be determined by the

assembly

• Stakeholder consultation and revenue education campaign

xxx cooparant factors include: a)appraisal of political environment-decentralisation process and regulations b)economic environment c)cost of collection

• 2. Revenues collected are lodged into designated bank account daily
• 3. Monitoring and evaluation of revenue collection
• 4. Expenditure is classified into capital and recurrent

How city revenue management works

• 5. Payments out of this fund pass through internal

controls (authorisation processes including Disbursement form and warrants issuing) 5.1 Recording of accounting events 5.2 Filling 5.3 Reporting-Final account

• 6. Internal auditing
• 7. External auditing-Ghana Audit service and

selected Auditing firms

• 5. Key initiatives underway to increase revenue stream:

Kindly indicate what your municipality is doing to broaden income base… what opportunities exist that you are exploiting….) 1.Revaluation and Valuation of landed properties in the metropolis( 1991,2003, selective valuation due to lack of funding) 2.Computerisation of revenue and expenditure 3.Engagement of more Commission revenue collectors 4.Updating of Data base of the Assembly 5.House Numbering And Street Naming 6.Revenue Education Campaigns 7.Capacity building for staff who are into revenue and its related activities

• 5. Key initiatives underway to increase revenue stream:
• 8. Identification of new sources of revenue

Night collection Motor tricycle (motor king)

• 9. Public Private Partnership initiative:

– animal market systems – privatisation of some revenue items – market infrastructure development such as Aboabu Super market – Local economic development (LED)