Answer:
i) Budget Performance Report of Nkong District Assembly

ii) Report on Budget Outturn Analysis
From: Budget Officer
To: District Chief Executive, Nkong District Assembly
Date: [Insert Date]
Subject: Analysis of Nkong District Assembly Budget Performance for the Year Ended 31 December 2020

Introduction:
This report provides an analysis of the budget performance of Nkong District Assembly for the year ended 31 December 2020. The analysis is based on the variance between the revised budget and actual performance for key revenue and expenditure items.

Revenue Performance:

• Decentralised Transfer: The actual revenue from decentralised transfers exceeded the revised budget by GH¢7,000,000, representing a positive variance of 20%. This positive outturn could be attributed to higher-than-expected transfers from central government, possibly as a result of additional allocations or improved compliance with transfer schedules.
• Internally Generated Fund (IGF): The IGF fell short of the revised budget by GH¢12,000,000, resulting in a negative variance of 26.67%. This significant underperformance could be due to factors such as the economic impact of COVID-19 on local businesses, poor enforcement of revenue collection, or inefficiencies in the IGF mobilization process.

Expenditure Performance:

• Compensation: Expenditure on compensation exceeded the revised budget by GH¢5,700,000, translating to a negative variance of 28.50%. This over-expenditure may be linked to unanticipated wage adjustments, higher staff recruitment, or payment of arrears.
• Goods and Services: There was an overspend of GH¢6,000,000 on goods and services, leading to a negative variance of 33.33%. The overspend might be a result of increased operational demands or inflationary pressures that were not anticipated during the budget preparation.
• Non-Financial Assets: The actual expenditure on non-financial assets was GH¢3,000,000 less than the revised budget, showing a positive variance of 20%. This underspend could indicate delays in the implementation of capital projects or procurement issues.

Conclusion:
Overall, the budget performance of Nkong District Assembly shows mixed results, with significant variances in both revenue and expenditure. While the revenue from decentralised transfers exceeded expectations, the shortfall in IGF and the overspend on compensation and goods and services are areas of concern that need addressing in future budget cycles. It is recommended that the assembly strengthens its IGF mobilization strategies and enforces stricter controls on expenditure to avoid budget overruns.

Recommendations:

• Enhance IGF Mobilization: Implement more effective strategies for revenue collection to improve the performance of IGF.
• Expenditure Control: Strengthen internal controls to manage expenditures, particularly in compensation and goods and services.
• Capital Project Management: Improve planning and execution of capital projects to ensure timely utilization of allocated funds.