i) Computation of Ratios:

ii) Discussion of Performance:

Introduction:
This analysis focuses on evaluating the financial performance of Agogo Municipal Assembly for the years 2021 and 2022 based on key financial ratios.

Performance Analysis:

1. Common Fund per Capita: The Common Fund per capita decreased from GH¢113/person in 2021 to GH¢106.65/person in 2022. This indicates a slight reduction in the funds received from the central government per citizen, reflecting potential challenges in central government transfers or population growth outpacing fund increments.
2. IGF per Capita: The IGF per capita also decreased from GH¢158.57/person in 2021 to GH¢150.83/person in 2022, indicating a decline in internally generated revenue relative to the population. This suggests a need for the Municipal Assembly to improve its revenue mobilization strategies.
3. Compensation of Employees to Total Revenue: The proportion of total revenue used for employee compensation decreased significantly from 55.75% in 2021 to 38.87% in 2022. This reduction is a positive indicator of improved efficiency in managing personnel costs or possibly a change in revenue structure.
4. Interest to IGF Ratio: The interest to IGF ratio showed a marked improvement, decreasing from 106.27% in 2021 to 57.79% in 2022. This indicates better management of debt and interest obligations relative to the internally generated revenue.

Conclusion:
Overall, while there is an improvement in cost efficiency, as evidenced by the reduction in employee compensation and interest costs relative to revenue, the Municipal Assembly needs to address the declining per capita revenue generation. Enhancing revenue mobilization efforts and ensuring stable or increasing central government transfers will be crucial for sustainable financial performance.