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Given below are the revenues of government for the second half of year 2010. Month Dividend GHS000 Gift tax GHS000 Import duties GHS000 P.A.Y.E GHS000

Given below are the revenues of government for the second half of year 2010.

Month

Dividend GHS000

Gift tax GHS000

Import duties

GHS000

P.A.Y.E GHS000

Company tax GHS000

Loans GHS000

Fees& charges

GHS000

Total Revenue

GHS000

July

2,000

450

8,550

12,000

16,000

100,000

3,000

142,000

August

1,200

0

7,000

10,400

17,000

0

7,000

42,600

September

1,800

0

6,000

11,000

12,500

20,000

6,000

57,300

October

2,200

850

4,000

8,000

18,000

320,000

5,000

358,050

November

3,200

600

9,500

7,800

10,000

0

6,800

37,900

December

2,000

500

10,000

26,000

14,500

0

4,600

57,600

TOTAL

12,400

2,400

45,050

75,200

88,000

440,000

32,400

695,450

The Controller and Accountant General (CAG) is mandated to transfer at least 5% of the total revenue to the District Assembly Common Fund on quarterly basis for onward distribution to all the Metropolitan, Municipal and District Assemblies (MMDAs). The District Assembly Common Fund Administrator upon the receipt of the transfers from the CAG, disburses 80% of the fund to the MMDAs based on a formula approved as follows:

Factor

Weight (%)

Needs

40

Responsiveness

10

Service presure

20

equalization

30

100

Assuming that there are only three assemblies in Ghana; Joy Metropolitan Assembly (JMA), Peace Municipal Assembly (PMA) and Love District Assembly (LDA). Below is the factor analysis result of the three assemblies.

Factor

JMA

PMA

LDA

Total

Need

2

3

5

10

Responsiveness

3

4

3

10

Service presure

5

3

2

10

Equalisation

1

1

1

3

Required:

  1. Compute the amount to be transferred to the District Assembly Common Fund for the third quarter and fourth quarter respectively in accordance with the provisions of the Local Governance Act 2016, Act 936), using the current rate of 5%.
  2. Prepare a statement of distribution of the District Assembly Common Fund to the three assemblies (JMA, PMA and LDA) for the third quarter and the fourth quarter respectively based on the approved sharing

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