GHANA STANDARDS

AUTHORITY

DRAFT

2017 PERFORMANCE CONTRACT

 TABLE OF CONTENTS
1.0 PREAMBLE............................................................................................................................... 4
2.0 BASIC INFORMATION AND RECENT PERFORMANCE .................................................... 5
3.0 MISSION and VISION STATEMENTS ................................................................................... 8
4.0 OBJECTIVES.................................................................................................................................. 8
5.0 MAIN CONSTRAINTS ................................................................................................................. 8
6.0 MAIN STRATEGIES ..................................................................................................................... 8
7.0 PERFORMANCE INDICATORS AND TARGETS ................................................................... 9
8.0 MAJOR ASSUMPTIONS ............................................................................................................. 9
9.0 UNDERTAKINGS OF GHANA STANDARDS AUTHORITYTO GOVERNMENT ........... 10
10.0 UNDERTAKINGS OF GOVERNMENT TO GHANA STANDARDS AUTHORITY ......... 10
11.0 PERFORMANCE INCENTIVES AND SANCTIONS ............................................................ 11
12.0 MONITORING OF PERFORMANCE CONTRACT ............................................................... 12
13.0 DURATION OF CONTRACT ..................................................................................................... 13
14.0 REVIEW OF CONTRACT .......................................................................................................... 13
15.0 ARBITRATION AND SETTLEMENT OF DISPUTES .......................................................... 13
Appendix 1 .............................................................................................................................................. 15
1.0 PREAMBLE

Agreement dated JANUARY in the year Two Thousand and Seventeen (2017) to operate
from 1st October, 2017 for a period of three months between Ghana Standards Authority
acting by its Board of Governors and Director General on the one part and the Republic
of Ghana acting by the Minister for Finance and the Minister for Trade and Industry on
the other part to regulate the performance of Ghana Standards Authority and the
obligations of Government in respect of the operations of Ghana Standards Authority over
the contract period.
2.0 BASIC INFORMATION AND RECENT PERFORMANCE

2.1 NAME : Ghana Standards Authority

Website : www.gsa.gov.gh
2.2 SECTOR MINISTRY : Ministry of Trade and Industry

2.3 MAIN INPUTS : Human Resource, Infrastructure, equipment and

Vehicles, Chemicals, Stationary

2.4 MAIN OUTPUTS : Standard Documents, Analytical test and calibration

reports, Product and Export Certificates,
Inspection Services

2.5 PRICING : Marginal Cost equals Marginal Revenue

2.6 MARKET : General Public in Ghana

1.0 PREAMBLE

Agreement dated JANUARY in the year Two Thousand and Seventeen (2017) to operate
from 1st October, 2017 for a period of three months between Ghana Standards Authority
acting by its Board of Governors and Director General on the one part and the Republic
of Ghana acting by the Minister for Finance and the Minister for Trade and Industry on
the other part to regulate the performance of Ghana Standards Authority and the
obligations of Government in respect of the operations of Ghana Standards Authority over
the contract period.
 2.2 BASIC INFORMATION AND RECENT PERFORMANCE

2.3 NAME : Ghana Standards Authority

Website : www.gsa.gov.gh
2.2 SECTOR MINISTRY : Ministry of Trade and Industry

2.3 MAIN INPUTS : Human Resource, Infrastructure, equipment and

Vehicles, Chemicals, Stationary

2.4 MAIN OUTPUTS : Standard Documents, Analytical test and calibration

reports, Product and Export Certificates,
Inspection Services

2.5 PRICING : Marginal Cost equals Marginal Revenue

2.6 MARKET : General Public in Ghana

2.7 RECENT PERFORMANCE:

Table 1, demonstrates the operational performance from 2013 to 2016. Increases in

performance over the years were due to dedication and team work of the staff coupled
with motivation and support from management.

Table 1: Achievements and Prospective

Achievement
Activity
2013 2014 2015 2016
Issuance of Export and Health
2935 2,388
Certificates to Exporters
Inspection of Fish establishments and
345 366
frozen vessels

Factory Inspection 650 389

Inspection of HRGs 123,509 103,959

697 683
Market Surveillance conducted

3 0
Harmonization of ECOWAS Standards
 Table 1: Achievements and Prospective (cont.)

Achievement
Activity
2013 2014 2015 2016
679 695
Inspection of Export Consignments
Certification of Locally Manufactured
546 349
Products

1 2
Management Systems certified

26 31
Training organized for Industry
Verification of Weights, Measures,
61,371 71,275
Weighing and Measuring instruments
Calibration of Weights, Measures,
9,994 9,438
Weighing and Measuring instruments
Random Inspection of Weights,
Measures, Weighing and Measuring 2,197 5,268
devices use for trading purposes
Standards developed, reviewed and
366 156
adopted
997 -
WTO Notifications disseminated
1,180 1,047
Sale of Standards
21,511 25,774
Samples tested and Analysed
Table 2 demonstrates improvements in total income GH₵16.3 million in 2013 to GH₵19.8
million in 2014, GH₵20.6 million in 2015 and a projected increase to GH₵38.2 million in 2016.
IGF alone accounted for ………%, ……. % and …….% respectively in 2013, 2014 and 2015.

- Financial Performance

The Authority prepares a budget annually for the approval of the sector ministry and
incorporation into the national annual budget. Its financial performance is guided by the
budget and below is a summary of the Authority’s financial Performance:

2013 2014 (GH¢) 2015 (GH¢) 2016 (GH¢)

Expenditures
(GH¢)
Salaries 4,134,420.22 5,707,592.00
Functioning expenditures 12,095,810.00 9,528,882.69
Capital expenditures 131,836.94 4,587,598.23
Other (Donor-TRAQUE) -
Total 16,362,067.16 19,824,072.92

In amount Y-1 In amount N 2015 (GH¢) (As 2016

Revenues 2013 (GH¢) 2014 (GH¢) at September
2015)
GOG
+ Compensation to
4,134,420.22 5,707,592.00 4,390,566.20 5,923,836.65
employees
IGF 19,047,239.47 27,362,112.27 21,504,018.70 32,368,525.98
Other 195,149.06 - -
Total 23,181,659.69 33,264,853.33 25,894,584.90 38,292,362.63

- Funding of the Authorities Operations

The Authority is a sub vented Agency but funds its operations mainly from its Internally
Generated Funds (IGF). Subvention received is for the payment of Employees Compensation
(Salaries). Expenditure on Goods and Services as well as Capital items are financed from the
Internally Generated Fund.
Donor supports in the form of grants are received periodically in the area of equipment provision
and staff training. The Authority pays for the counterpart funding from its generated revenue.

During the same period, total expenditure increased by ……%, …….% and
……..% leaving the surplus to grow by ……..% from GH₵……. million in 2013
to GH₵……. million in 2014 …………% to GH₵…….. million in 2015 and ….. million in 2016 to
GH₵… million in 2016
3.0 MISSION and VISION STATEMENTS
3.1 Mission Statement
To promote standardization for the improvement of the quality of goods, services
and sound management practices in industries and public institutions in Ghana.

3.2 Vision Statement

To become a model of excellence in standardization in Africa.
3.3 Core Values

a) Team work
b) Innovation
c) Excellence
d) Integrity
e) People Development
f) Confidentiality
g) Customer focus

4.0 OBJECTIVES

The objectives for the contract period includes:

a) To improve revenue generation for self-sustained growth by 10%.
b) To improve the level of public education in standardization by December 2017.
c) To reduce delays in service delivery by December, 2017
d) To enhance the skills and competencies of all staff by December 2017.
e) To increase coverage of laboratory services to new areas by 35%.

5.0 MAIN CONSTRAINTS

a) Unavailability of adequate staff.
b) Unanticipated and unbudgeted tasks from the Ministry
c) Delayed releases of funds
d) Delay in passing the Standards Bill

6.0 MAIN STRATEGIES

- To improve revenue generation for financial self-sufficiency by December 2017

 charge competitive prices for the Authority’s services

 resource the Credit Control Unit
 promote services of the Authority
 Improve revenue collection by 2017
 - To improve the level of public education in standardization by December 2017

 Develop a multi-faceted Public educational programme to raise awareness from

70% to 90% by December 2017.
 Implement educational programme by December 2017
 Conduct a survey to ascertain the level of awareness and the impact of the
educational programme in December 2017.

- To reduce delays in service delivery by December 2017

 Review delivery period for each service
 Educate staff on the new delivery dates and its importance
 Implement the new service periods
 Assess service delivery period annually

- To enhance the skills and competencies of staff by December 2017

 Conduct training needs assessment based on new area(s) and available
competencies
 Prepare Annual Training Plan and means of training evaluation
 Implement Annual training plan
 Evaluate training effectiveness 3 months after training

- To increase coverage of laboratory services to new areas by December 2017

 Identify/review viable new areas of diversification identify/review
 Procure and install relevant logistics/equipment
 Promote new services by September 2017
 Train staff in relevant fields, annually

7.0 PERFORMANCE INDICATORS AND TARGETS

The Board shall work towards the attainment of the Performance Targets detailed in
Appendices 1 & 2 to this Contract. It is agreed between both parties that the achievement
of the agreed targets shall depend upon the fulfillment of the undertakings accepted by
the parties to the Contract.

8.0 MAJOR ASSUMPTIONS

a) That there will be stable economic environment.
b) There won't be any government directives that will hinder the achievements of
the objectives.
c) That there will be prompt release of funds
d) Provided funds are released for the implementation of the National
9.0 UNDERTAKINGS OF GHANA STANDARDS AUTHORITY TO GOVERNMENT
9.1 Sound Management
The Board of Directors and Management of Ghana Standards Authority accept full
responsibility for the Performance of the GSA as a whole and undertake to adopt and
apply the most up-to-date and appropriate management techniques in managing the
affairs of the GSA. It shall be incumbent upon the Board of Directors and Management
to ensure that the GSA achieves the level of performance indicated in Appendices 1 & 2
to this Contract. Management accepts responsibility also for the overall financial and
operational efficiency of the GSA.

9.2 Use and Safeguarding of Assets

The Board of Governors and Management will ensure that all tangible and intangible
assets of GSA are maintained and protected in the most efficient manner and as far as
possible are used for the business of the GSA. The Board of Governors and Management
shall not allow staff or any other party to use any such assets for personal gain.
It shall be the responsibility of the Board of Governors to ensure at all times that the
assets and staffs of GSA are adequately safeguarded including insurance to cover loss of
what-ever-form.
The Board of Governors and Management undertake that the operation of GSA would be
kept within reasonable limits of the objectives of the company

9.3 Notification of Exceptional Events

The GSA Board shall promptly notify the Government of any conditions that interfere with
or threaten the performance of GSA’s obligations here above.

10.0 UNDERTAKINGS OF GOVERNMENT TO GHANA STANDARDS AUTHORITY

10.1 Recognition of Management Autonomy
Government accepts that its control over the operations of GSA is to be effected through
the Performance Contract Agreement based on the company’s Corporate Plan and Annual
Budget.

As far as possible, Government shall not issue any directives to GSA which may prevent
the company from achieving the agreed performance levels. Government representatives
in the regions and districts should be made aware of this.
Furthermore, Government agrees to grant the management of GSA operational autonomy
consistent with the laws of Ghana, including personnel management of the company.
That Government undertakes that appointment to the Board shall be based on merit, and
experiences beneficial to the interest of GSA.
Government undertakes to allow a reasonable tenure of office for top management of
GSA to enable them to see to the successful implementation of their programmes and
plans.

11.0 PERFORMANCE INCENTIVES AND SANCTIONS

11.1 Incentives
Management and workers of GSA shall be paid incentives for the achievement of targets
set for the year. Payment of the incentive will depend upon an assessment of the annual
operational results for which the audited accounts and operational data shall form the
basis. Management of GSA shall prepare the initial assessment of achievement to be
reviewed by SEC. The Management of GSA shall recommend to the Board of Directors
the level of incentives to be paid to staff of the company from its own resources after
GSA had paid all assessed social security and met other statutory financial obligation
Incentive payments are determined only after SEC has analyzed the performance of GSA
to ensure that payment will not impair the financial stability of the company. Provision
must be made for a monetary reward (dividend) to the owner (government). This must
be at a level at least equal to the incentive payment of the company. The incentive
payment will be authorized after audited accounts have been reviewed and confirmed by
SEC to be consistent with reported results.

e) Sanctions
No bonus shall be paid where GSA fails to achieve its targets EXCEPT where failure to
achieve set targets is the result of factors beyond the control of the Board of Directors as
for example an Act of God, including but not limited to fire, earthquake, war or any other
occurrence of a like nature or the result of a Government policy or default by Government
in its obligations. GSA shall not be held responsible for such failure and shall be at liberty
to pay bonus to the staff if funds are available for such payments subject to Government
laid down regulations.
Where non-achievement of agreed targets is directly traceable to the acts of omissions
of particular individual employees or divisions, sanctions in the form of appropriate
disciplinary action shall be applied. The Management of GSA will determine the degree
of individual or divisional non-performance so that appropriate sanctions may be applied.
Sanctions may include dismissals, termination of appointment, suspension, withholding
of salaries and suspension of annual increments.

f) Government
Failure of Government to meet its commitments to GSA will result in the non-achievement
of agreed performance levels. Agreed performance levels will have to be revised in line
with the level to which Government meets its commitments. Sanctions for Government
will accrue indirectly through the shortfall in its expected revenue. If, however, the
negligence of an individual is the cause of Government’s inability to meet its
commitments, the office of the Vice President shall decide on appropriate sanctions.
g) External Factors
Government agrees to inform GSA and the State Enterprises Commission of any event
that has occurred or likely to occur which may prevent Government from fulfilling its
obligations.

12.0 MONITORING OF PERFORMANCE CONTRACT

It shall be the duty of the State Enterprises Commission (SEC) to monitor and evaluate
the compliance of all parties to the contract and report quarterly thereon to the office of
the Vice President.

EC shall submit to SEC within four (4) weeks after the end of each quarter, a financial
and operational report.
This report shall include:-
a) A report by the Director General on progress achieved and explaining
deviation and indicating measures management intends to take to rectify
deviations;
b) An Operating Statement, showing actual performance against budget for the
quarter and year to date;
c) A Balance Sheet as at end of the quarter;
d) Cash flow for the quarter showing actual against forecast;
e) A report on capital projects compared to budget;
f) A report on the achievement of agreed Performance Targets explaining
deviations and indicating the most important trends for the quarter;
GSA shall submit to SEC by 31st March 2017, GSA’s 2016 Audited Accounts and also
submit to SEC, GSA Draft Budget two (2) months before the beginning of the financial
year to which the Budget relates.
SEC will report on the performance of GSA to the office of the Vice-President four (4)
weeks after receiving the quarterly report. Copies of the Commission’s report will be
forwarded to the Ministers for Finance and for Power.
On the receipt of GSA 2015 Audited Accounts, SEC will report to the Office of the Vice
President on the performance over the year highlighting:-
a. Actual performance against agreed performance targets;
b. Causes of any major deviations from the approved plan/budget;
c. The effect of external factors on GSA performance and in particular the
effect of Government policies on performance;
d. The performance of management and workers and the recommended
incentives to be paid or sanctions to be applied.
Copies of the report will be sent to:-
a. Minister for Power
b. Minister for Finance
 c. The Office of the Speaker of Parliament.
d. Director General, GSA

13.0 DURATION OF CONTRACT

This Agreement shall remain in force for a period of one year commencing 1 st January
2017 to 31st December 2017 inclusive subject to mid-year review as set out in Section 14
hereof.

14.0 REVIEW OF CONTRACT

This performance Agreement shall be subject to mid-year review, provided always that
in the occurrence of any of the under-listed events either party may by written request
to the other call for an earlier review:-
I. National Wage increase instituted as Government Policy at a rate beyond
budgeted levels.
II. Failure arising out of an Act of God.

15.0 ARBITRATION AND SETTLEMENT OF DISPUTES

In the event of disagreement between the parties to this Contract concerning the
meaning of any part of the contract, the Attorney General and Minister for Justice shall
arbitrate in consultation with the Executive Chairman of the State Enterprises
Commission. The Attorney-General and Minister of Justice shall also consult with both
parties and shall make ruling within one month of application and the ruling shall be
binding on both sides.

Disagreement between the parties to this Contract relating to matters other than those
specified in the foregoing paragraph shall be resolved by an independent arbitrator to be
appointed by the office of the Vice President. The decision of the arbitrator that will be
final and binding on both parties will be delivered within 30 days of his/her appointment.

Parties to the Agreement shall equally be responsible for reimbursing the expenses of the
arbitrator.
Signed for and on behalf of

GHANA STANDARDS AUTHORITY

.……………………………………….
DIRECTOR GENERAL
GHANA STANDARDS AUTHORITY

WITNESS: ……………………………………….

NAME: ………………………………………….

DESIGNATION: ………………………………..

ADDRESS: ……………………………………..

Signed for and on behalf of

The Government of Ghana by

……….………………………………………..
1. MINISTER FOR FINANCE

……………………………………………………..
2. MINISTER FOR TRADE & INDUSTRY

WITNESS: ……………………………………………
EXECUTIVE CHAIRMAN
STATE ENTERPRISES COMMISSION

ADDRESS: P. O. Box M393

ACCRA
 Appendix 1
Ghana Standards Authority
2017 Performance Monitoring Indicators and Targets

INDICATORS FOR GSA

Action Associated Indicators Target

Development and promotion of 85
Agriculture/Food standards
Development and promotion of 11
Health standards
Development and promotion of 84
Energy/Petroleum standards
Conformity Assessment Number of inspections 1,500
Inspections
Conformity Assessment number of products tested 10,500
Testing
Conformity Assessment Number of companies certification 450
Certification
Build the capacity of staff to
perform efficiently and
effectively