The Auditor General’s recent report on the financial accounts of District Assemblies for the year ended 31 December 2024 has uncovered a substantial shortfall in revenue collection by revenue collectors in eight Assemblies within the Ashanati Region.
According to the Audit Service, 34 revenue collectors employed across these Assemblies, who collectively received salaries totaling GH¢1,499,523.10, managed to collect only GH¢630,387.50 in revenue.
This figure represents a mere 42.04% of the total salaries paid, resulting in a revenue shortfall of GH¢869,135.65 for the Assemblies.
The affected Assemblies identified include Ahafo Ano North, Afigya Kwabre South, Ahafo Ano South East, Amansie Central, Bosomtwe District, Old Tafo Municipal, Suame Municipal, and Sekyere Central.
According to an excerpt from the Auditor General’s report, specifically on page 24 under the headline “Inefficient revenue collection – GH¢869,135.65,” the issue underscores a failure to meet expected revenue targets relative to the compensation paid to revenue collectors.
The report cites Section 52 of the Public Financial Management (PFM) Act, 2016 (Act 921), which mandates that the Principal Spending Officer of a covered entity must institute effective control systems to prevent financial losses and wastage.
The following data summarizes the performance of the revenue collectors by Assembly:
1. Afigya Kwabre South
No. of collectors- 5
Salary paid- 238,032.97
Revenue collected- 64,853.00
Shortfall- 173,179.97
Shortfall (%) – 72.75
2. Ahafo Ano North
No. of collectors- 4
Salary paid- 137,401.60
Revenue collected- 88,057.00
Shortfall- 49,344.60
Shortfall (%)- 35.91
3. Ahafo Ano South East
No. of collectors- 2
Salary paid- 100,318.50
Revenue collected- 23,540.00
Shortfall- 76,778.55
Shortfall (%)- 76.53
4. Amansie Central
No. of collectors- 4
Salary paid- 181,955.52
Revenue collected- 68,408.00
Shortfall- 113,547.52
Shortfall (%)- 62.40
5. Bosomtwe District
No. of collectors- 2
Salary paid- 209,056.32
Revenue collected- 57,101.00
Shortfall- 151,955.32
Shortfall (%)- 72.69
6. Old Tafo Municipal
No. Of collectors- 2
Salary paid- 100,541.62
Revenue collected – 75,779.50
Shortfall- 24,762.12
Shortfall (%)- 24.63
7. Suame Municipal
No. Of collectors- 7
Salary paid-254,677.24
Revenue collected- 122,351.00
Shortfall- 132,326.24
Shortfall (%)- 51.96
8. Sekyere Central
No. Of collectors- 5
Salary paid- 277,539.33
Revenue collected- 130,298.00
Shortfall- 147,241.33
Shortfall (%)- 53.05
Management Responses and Recommendations
Management of Suame Municipal attributes the shortfall primarily to the “relocation of traders linked to the construction of an interchange”, which disrupted usual revenue streams.
However, management of the remaining seven Assemblies attributed the deficit to a “lack of adequate collection skills among revenue collectors.”
The Auditor General’s report recommends that the Assemblies’ management set clear and realistic revenue targets aligned with the remuneration of revenue collectors.
It stresses the importance of enforcing these targets diligently to ensure the Assemblies receive fair value for the salaries paid.
Also, the report advises these Assemblies to adopt a more proactive role by equipping revenue collectors with the necessary training and skill development to enhance their efficiency and boost revenue generation efforts.
Source: www.Kumasimail/Kwadwo Owusu
