According to the Auditor General’s 2018 special audit report, the has led to poor management of the university’s bank accounts.
Auditor General Report: University of Ghana has multiple bank accounts; some have less than Ghc100
The Auditor General has revealed that Ghana’s premier university, the University of Ghana (UG) is operating multiple bank accounts with some either being inactive or having less than GHc100 as the credit balance.
“UG operates multiple bank accounts with a number of them remaining dormant and with less than GH¢100.00 as the bank balance.”
The report indicated that the university will make sound financial management decisions if strategies are put in place to roll out a more centralized bank account system.
“We urged Management to reduce the number of multiple bank accounts and adopt a centralization approach to improve efficiency in the management of bank accounts as well as ensure that disbursement process are met in a timely manner.”
The institution has said that they are ready to correct the impropriety through the Controller and Accountant General’s Department in order to obtain a ‘Treasury Single Account’
“Management stated that the University is working closely with the Accountant-General to roll-out the Treasury Single Account”, portions of the report said.
Overdraft on credit without the Council’s approval
The report also said that the University exposed itself to higher credit risk by overdrawing its maximum bank limit of Ghc16 million with Ecobank to over Ghc28 million.
“Contrary to Statute 4(11) of the Statutes of the University of Ghana, the University had overdrawn its maximum limit of overdraft of GH¢16 million with Ecobank to GH¢28,074,186.77 as the end of December 2017 without approval from the Council. This has exposed the University to higher credit risk which, culminates into high-interest payments. We recommended that Management should develop a cash forecasting mechanism to determine the required cash requirements to meet expenditures of the University and improve its cash management controls.”
In both instances, the University’s management stated that it operates a monthly cash planning mechanism and all borrowing is done with the approval of the University Council with the recommendation of FGPC and Management.
Also, contrary to Regulation 1(1) of the FAR 2014, the DoF (Mr. Richard O. Boapea) authorized to transfer and cheques payment of US$906,579.30 and GH¢1,377,000.00 from three bank accounts without supporting documents.
While management explained that all transfers from the University’s bank accounts are done with written authorization and were transfers to other University bank accounts the Auditor General’s Department has urged management “to make available all the supporting documents on the transfers and disbursement for its further review and properly main same for easy accessibility” going forward.
Eyewitness? Submit your stories now via social or: