The University of Ghana( UG) is said to be operating multiple banks accounts with some either been inactive or having less than Ghc 100 as the credit balance, the Auditor General has revealed.
This has led to poor management of the university’s bank accounts.
In the Auditor General’s 2018 special audit report, points 84 and 85 highlighted the ineffective management of UG bank accounts.
“Ineffective management of UG bank accounts 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 suggested that the institution will make sound financial management decisions if it strategies and 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.”
Meanwhile, the University has expressed readiness to correct the impropriety through the Controller and Accountant General’s Department in other 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 added.
Overdraft on credit facility without the Council’s approval
The report also indicted the University for exposing itself to higher credit risk by overdrawing its maximum bank limit of Ghc 16 million with Ecobank to over Ghc 28, 000, 000.
“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.
Disbursement without supporting documents
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.