Question
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 |
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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:
- 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%.
- 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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