The Rural Initiatives for Self-Empowerment Ghana (RISE-Ghana) has called for an increase in the administrative expenditure cap for Metropolitan, Municipal and District Assemblies (MMDAs) from 5% to 10% of their District Assemblies Common Fund (DACF) allocation.

According to the organisation, the current cap is undermining effective local governance and contributing to recurring financial irregularities highlighted in successive reports by the Auditor-General.

In a statement signed by its Executive Director, Awal Ahmed Kariama, RISE-Ghana argued that administrative functions critical to accountability and service delivery are being constrained by inadequate funding.

“The continuous capping of oversight administrative expenditure for MMDAs at 5% of their District Assemblies Common Fund allocation is weakening local governance systems and contributing to the recurring financial irregularities repeatedly identified by the Auditor-General,” the statement said.

The organisation noted that annual audit reports continue to reveal widespread irregularities involving cash management, procurement, contracts, payroll administration and tax compliance across local assemblies.

It cited Auditor-General reports indicating that irregularities linked to the management and utilisation of the DACF exceeded GH¢452 million between 2020 and 2024, with the figure rising sharply to GH¢205.9 million in 2024 alone.

RISE-Ghana acknowledged the importance of allocating substantial portions of the DACF to infrastructure, sanitation, health, education and other government programmes. However, it argued that the assemblies' ability to effectively supervise projects and ensure accountability is being hampered by the limited resources available for administrative functions.

The organisation explained that activities such as project monitoring, record management, procurement compliance, financial oversight, inspections and implementation of audit recommendations all depend on adequate administrative support.

“In practice, many assemblies struggle to adequately supervise projects, maintain reliable records, conduct regular inspections and enforce accountability mechanisms,” the statement noted.

RISE-Ghana further pointed to findings in the Auditor-General's 2024 report, which showed that all 261 MMDAs audited recorded irregularities arising largely from non-compliance with laws, regulations and established internal controls.

To address the situation, the organisation is calling on Parliament, the Ministry of Local Government, Chieftaincy and Religious Affairs, the Administrator of the District Assemblies Common Fund, development partners and civil society organisations to initiate a national discussion on reviewing the current arrangement.

It specifically proposes increasing the administrative cap from 5% to at least 10% and excluding human resource development expenditure from the cap.

According to RISE-Ghana, the proposed reforms would strengthen oversight mechanisms, improve accountability, enhance responsiveness and ensure greater value for money in the delivery of public services at the local level.

The organisation believes that strengthening the administrative capacity of assemblies is essential to improving governance outcomes and reducing the financial irregularities that continue to affect local government institutions across the country.