Question

The concept of Value for Money (VFM) in the public sector has been associated with the
5Es. The relevant elements of the VFM can be applied as an assessment tool for almost all
government programmes/projects. Using relevant public sector examples, you are required
to:
i) Demonstrate how the concept of VFM is applied in the distribution of the District
Assembly Common Fund (DACF)
ii) Demonstrate how the concept of VFM can be used to attain the objective(s) of
public procurement

Answer 1

The District Assemblies’ Common Fund (DACF) is a pool of resources created under Article 252 of the 1992 constitution of Ghana. It is a minimum of 5.0% of the national revenue set aside to be shared among all District Assemblies in Ghana with a formula approved by Parliament. The fund is a Development Fund which enables the use of the nation’s wealth throughout Ghana to the benefit of all citizens.

Purpose and Benefits of the Common Fund

The District Assemblies Common Fund, DACF is basically a Development Fund designed to ensure a more equitable distribution of national resources for development in every part of the country. The Fund is used to support a wide range of projects and programmes geared towards improving the lives of the people at the local level. Some of the areas that it supports are: housing, educational infrastructure, quality education primarily at the basic and secondary levels, primary health care, sanitation management; water, sustainable self-help development communities, maintenance of security and also community policing.

Every District in the country has benefited from the Fund. Through the Fund, health facilities are being expanded and improved and many school buildings and structures constructed. The Fund has also been used by the various Assemblies to reshape roads, build modern markets, provide scholarships to needy students and build capacity of human resources in many Districts. Millions of Ghanaians have benefited projects undertaken with the Common Fund and the Assemblies have improved governance at the local level from the resources made available to them.

Benefits of DACF

1. The fund aims at creating jobs for all through programmes such as cottage industries.

2. It seeks to get more people gain access to improve shelter through housing.

3. Through the fund, health facilities are expanded and improved to make health delivery accessible to many people.

4. Through the fund numerous school buildings and structures have been constructed for the increasing needs of the population.

5. The fund encourages and supports communities that make effort to initiate their own development projects (Community Initiated Programme).

Purpose of the Fund

1. The Fund is to ensure equitable distribution of the national resources for the development in every part of Ghana.

2. To Improve housing Schemes

3. To support sanitation management

4. It is to strengthen decentralization, and to promote Sustainable self-help development communities.

5. To improve upon primary health care delivery in all part of Ghana

6. It is to improve the country’s educational facilities, and to ensure quality education

7. The Fund support Community policing.