UNIVERSITY OF GHANA · Annual report for the year ended 31December 2016 REPORT OFTHE COUNCIL The...

UNIVERSITY OFGHANA

FINANCIAL STATEMENTSFOR THE YEAR ENDED

31DECEMBER 2016

University of GhanaAnnual report for theyear ended 31 December 2016

Table of Contents

Corporate Information

Report of the Council

Report of the Independent Auditor

Financial Statements

Statement of Financial Performance

Balance Sheet

Cash Flow Statement

Notes

Pages

1

2

3-5

6

7

8

9 - 26


CORPORATE INFORMATION

Council members Appointed effective 18 July 2017 Resigned effective 7 January 2017

Professor Yaw Twumasi - Chairman

Professor Ebenezer Oduro Owusu -Vice ChancellorDr. Ama EsselProfessor Akua KuenyehiaAmbassador Fati Habib-JawulaProfessor Baffour Agyeman-Duah

Professor Yaa Ntiamoah- BaiduMrs. Cynthia Adu

Mr. Kwesi YankeyMr. Reindorf Baah PerbiMrs. Vesta Akosua AdutwumwaaNunooProfessor Kodzo GavuaMrs. Anastasia Thomford OkyereMr. Daniel Otting AwuahDr. Harry AgbanuMr. Eric Oyemam Ato BrownProfessor Mohammed SalifuMr. Kenneth BitchwayDr. Max Price

Professor Kwamena Ahwoi - Chairman

Professor Ebenezer Oduro Owusu -Vice ChancellorProfessor Mahama DawiejuaArchbishop Duncan WilliamsAmbassador Fati Habib-JawulaDr. William Abayaawien Atuilik

Mr. Alfred QuarteyMr. Samuel Ofori-AdjeiMr. Kwesi YankeyMr. John KlinogoMr. Richard Kwame Asante

Professor Kodzo GavuaMs. Esinam Afi SeadeMr. NanaAsafo-AdjeiAyeDr. Harry AgbanuMr. Kenneth BotchwayProfessor Mohammed SalifuMrs. Eileen Odartei-LaryeaDr. Max Price

Dr. Esther Ofei-Aboagye

Independentauditor

PricewaterhouseCoopers

Chartered AccountantsNo. 12Airport CityUna Home 3rd FloorPMBCT42CantonmentsAccra

Registered office University of GhanaP. O. Box LG 25Legon, Accra

Secretary Mercy Haizel-Ashia

1


REPORT OF THE COUNCIL

The Council of University of Ghana submits its report together with the audited financial statements ofthe University for the year ended 31December 2016, prepared under the modified cash basis of accounting.

Statement of the Council's responsibilities

The Council is responsible for the preparation of financial statements for each financial year whichpresents in all material respects the state of affairs of the University and of the statement of financialperformance and cash flow for that period. In preparing these financial statements, the Council hasselected suitable accounting policies and applied them consistently, made judgements and estimates thatare reasonable and prudent and followed the modified cash basis of accounting.

The Council is responsible for ensuring that the University keeps proper accounting records that disclosewith reasonable accuracy at any time the financial position of the University. The Council is alsoresponsible for safeguarding the assets of the University and taking reasonable steps for the preventionand detection of fraud and other irregularities.

Principal activities

The principal activities of the University continued to be the business of providing higher education,undertaking research, disseminating knowledge and fostering relationship with outside persons andbodies.

Results for the year

The Statement of Financial Performance on page 6 shows a deficit for the year of GH~537 ,499 (201S: Surplusof GHcts88,30S) whilst the Balance Sheet on page 7 shows accumulated fund at the end of the period ofGH~44,732,903 (201S: GHct42,873,219).

Auditor

PricewaterhouseCoopers was appointed by the Auditor-General of the Republic of Ghana under article187(2) of the 1992 Constitution to conduct the audit of the University for the year ended 31 December2016. Their re-appointment is by the mandate of the Auditor -General.

By order of the Councilf\

.n.J.p~" OF THE COUNCIL

2

INDEPENDENT AUDITOR'S REPORT TO THE AUDITOR - GENERAL

REPORT ON THE FINANCIAL STATEMENTSOur opinion

In our opinion, the accompanying financial statements of University of Ghana for the year ended 31December 2016 are prepared, in all material respects, in accordance with the accounting policies described innote 1to the financial statements.

What we have audited

We have audited the financial statements of University of Ghana (the "Institution") for the year ended 31December 2016.

The financial statements on pages 6 to 26 comprise:

• the balance sheet as at 31 December 2016;• the statement of financial performance for the year then ended;• the cash flows statement for the year then ended; and• the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilitiesunder those standards are further described in the Auditor's responsibilities for the audit of the financialstatements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Independence

We are independent of University of Ghana in accordance with the International Ethics Standards Board forAccountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethicalresponsibilities in accordance with the IESBACode.

Other information

The Council is responsible for the other information. The other information comprises report of the Councilbut does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other informationidentified above and in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appear to be materially misstated.

If, based on the work we have performed on the other information, we conclude that there is a materiallymisstatement of this other information, we are required to report that fact. We have nothing to report in thisregard.

Emphasis of matter - Basis of accounting and restriction on distribution and use

We draw attention to note 1 to the financial statements which describes the basis of accounting. The financialstatements are prepared to assist University of Ghana comply with University of Ghana Act, 2010 (Act 806).As a result, the financial statements may not be suitable for another purpose. Our report is intended solely forUniversity of Ghana and the Auditor-General and should not be distributed to or used by parties other thanUniversity of Ghana and the Auditor - General. Our opinion is not modified in respect of this matter.

3

INDEPENDENT AUDITOR'S REPORTTOTHE AUDITOR - GENERAL (Continued)

REPORT ON THE FINANCIAL STATEMENTS (Continued)

Responsibilities of the Council for the financial statements

The Council is responsible for the preparation and presentation of the financial statements in accordance withthe accounting policies disclosed in note 1 to the financial statements and with the requirements of theUniversity of Ghana Act, 2010 (Act 806) and and for such internal control as the Council determine isnecessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing the financial statements, the Council of the University is responsible for assessing the University'sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Council either cease operations, or have no realistic alternativebut to do so.

The Council is responsible for overseeing the financial reporting process.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professionalscepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the internal control;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the Council;

• Conclude on the appropriateness of the Councils' use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmay cast significant doubt on the ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor's report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor's report. However, future events orconditions may cause the University to cease to continue as a going concern; and

• Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements 4represent the underlying transactions and events in amanner that achieves fair presentation.

We communicate with the Council regarding, among other matters, the planned scope and timing of the auditand significant audit findings, including any significant deficiencies in internal control that we identify duringour audit.

4

INDEPENDENT AUDITOR'S REPORTTOTHEAUDITOR - GENERAL (Continued)

REPORT ON THE FINANCIAL STATEMENTS (Continued)

Auditor's responsibilities for the audit of the financial statements (continued)

We also provide the Council with a statement that we have complied with relevant ethical requirementsregarding independence, and have communicated with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Michael Asiedu-Antwi(ICAG/P/1138).

R~PricewaterhouseCoopers (ICAG/F/2017/028)Chartered AccountantsAccra, Ghana6 September 2017

P",C

5

University of GhanaFinancial Statements for theyear ended 31 December 2016

STATEMENT OF FINANCIAL PERFORMANCE

2016 2015Notes GH~ GHq:

INCOMEGovernment subvention and grants 2 253,511,234 232,141,520Academic fees and other student charges 3 155,290,057 128,459,039Research grants and contracts 27 118,819,295 104,445,152Bursaries and financial aid 4 1,132,456 675,288Interest income 5 12,146,196 10,221,004Other income 6 52,194,990 48,057,533

Total income 593,094,228 523,999,536

EXPENDITUREPersonnel costs 7 252,922,668 236,181,292Other operating expenses 8 163,900,413 140,411,787Research grants and contracts expenses 9 118,819,295 104,445,152Bursaries and financial aid 4 1,132,456 675,288Fixed assets written off 10 41,542,261 28,673,880Finance costs 11 15,436,382 13,289,447

Total expenditure 593,753,475 523,676,846

(Deficitj/Surplus for the year (659,247) 322,690Gain on disposal of fixed assets 121,748 265,615

(Deficitj/Surplus for the year transferred toaccumulated fund (537.499) 588.305

The notes on pages 9 to 26 are an integral part of these financial statements.

6

Universityof Ghana /

FinancialStatementsfor theyearended 31December2016

BALANCESHEETAs at 31 December

2016 2015Notes GH«r GH<t

ASSETSNon-Current AssetsUnquoted securities 12 19,095,064 19,094,564Quoted securities 13 4,426,979 5,920,294Non current deposits 14 17,943,821

41,465,864 25,014,858Current AssetsStocks of consumables 15 9,176,412 7,452,784Accounts receivable 16 137,888,288 72,131,479Employees personal accounts 17 2,315,087 3,039,823Students fees receivable 18 16,706,029 9,974,888Short term investments 19 92,350,645 90,596,797Cash and bank balances 20 87,988,470 105,095,976

346,424,931 288,291,747Current LiabilitiesBank overdrafts 21 21,795,552 20,840,283Accounts payable and accrued liabilities 23 163,667,389 101,821,127Provisions for liabilities and charges 573,000 513,000Borrowings 25 7,298,404 10,016,600

193,334,345 133,191,010

Net Current Assets 153,090,586 155,100,737

Non current liabilitiesBorrowings 25 27,558,387 25,228,397Restricted funds 26 111,623,678 99,532,821

139,182,065 124,761,218

Net Assets 55.374.385 55,354,377

FINANCEDBY:Accumulated fund 28 44,732,903 42,873,219General reserve fund 29 6,228,181 6,575,016UG Endowment fund 30 4,413,301 5,906,142

Total Funds 55.374.385 55,354,377

The financial statements on pages 6 to 26 were approved by the Council on.~.~Ww.- 2017and signed on their b alfby:

Director of Finance:Vice Chancellor: -7""=-+------7"-'--+--

The notes on pages 9 to 2 are an integral part of these financial statements.

7

-----------------University of GhanaFinancial Statements for theyear ended 31 December 2016

CASH FLOW STATEMENT

Year ended 31December2016 2015

Notes GH~ GHct

Cash generated from operating activities 33 33,445,743 65,068,996

Cash used in investing activities

Shares in University of Ghana Medical Centre (500)

Purchase of fixed assets (41,521,981) (28,673,880)

Non current deposits 14 (17,943,821)Gain on disposal of fixed assets 121,748 265,615

Net cash used in investing activities (59,344,554) (28,408,265)

Cash flows from financing activities

Interest received 11,373,568 8,850,945

Finance cost paid (12,464,185) (13,758,509)

Borrowings drawn downs 25 6,402,407 26,977,977

Borrowings repaid 25 (8,900,620) (18,679,462)Receipts from West African Centre for CropImprovement (WACCI) 28 1,434,692

General and special research funds received 31 132,272,943 130,750,337

General and special research funds used 32 (120,528,921) (105,476,569)

Net cash generated from financing activities 9,589,884 28,664,719

Net (decreasej/ increase in cash and cashequivalents (16,308,927) 65,325,450

Cash and cash equivalents at beginning of year 174,852,490 109,527,040

Cash and cash equivalents at end of year 22 158.543.563 174,852,490

The notes on pages 9 to 26 are an integral part of these financial statements,

8


NOTES

1 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set outbelow.

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance withthe modified cash basis of accounting as described in the notes below.

(b) Foreign currency translation

i. Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which the University operates ('the functional currency'). The financial statements arepresented in Ghana Cedis which is the University's functional and presentation currency.

ii. Transactions and balances

Foreign currency transactions are translated into Ghana Cedis using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlements of suchtransactions and from the translation at year-end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognized in the statement of financial performance.

(c) Fixed assets

Fixed assets are expensed in the year the assets are brought into use at their historical costs. Historicalcosts include expenditure that is directly attributable to bringing an asset to the location and conditionnecessary for it to be capable of operating in the manner intended by management.

(d) Stocks

Stocks are stated at the lower of cost and net realizable value. Cost is determined on a weighted averagebasis. Cost of general stores includes all direct expenditure incurred in bringing the goods to their currentstate under normal operating conditions. Provision is made for obsolescence and damaged items.

(e) Accounts receivable

Accounts receivable are amounts due from students, staff and third parties for school fees and other goodssold or services performed in the ordinary course of business. Accounts receivable are recognised at fairvalue. Accounts receivable are written off when proved uncollectible.

9


NOTES(continued)

1 Summary of significant accounting policies (continued)

(f) Unquoted securities

Unquoted securities are made up of investment in University of Ghana Enterprise Limited and Universityof Ghana Medical Centre Limited. The investment is measured at cost and not consolidated for thepurposes of these financial statements because of the differences in the core activities of the entities.

(g) Accounts payable and accrued liabilities

Accounts-payable are obligations to pay for goods or services that have been acquired in the ordinarycourse of business from suppliers. Accounts payable are classified as current liabilities if payment is duewithin one year or less. If not, they are presented as non-current liabilities. Accounts payable arerecognised at fair value.

(h) Restricted funds

This is made up of Project Research, Award and Memorial funds and Bursaries and Financial Aid Fundsand relate to amounts received from individuals and organizations purposely to support the University'sresearch, scholarship schemes and awards and for specific purposes mandated by the University.

Contributions to the funds are recognised separately in reserves when received. Costs of research,bursaries and awards incurred are charged to the statement of financial performance in the year that thecost is paid. In each reporting period, an amount equal to the total costs incurred in respect of each itemsupported by restricted funds is transferred from the relevant reserve to match the costs in the statementof financial performance. Income earned from investing restricted funds are credited to the relevantreserve account.

(i) Provisions

Provisions are recognized when the University has a present obligation (legal or constructive) as a resultof a past event and it is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation and a reliable estimate can be made of the amount of the obligation. Theamount recognized as provision is the best estimate of the expenditure required to settle the obligationat the balance sheet date.

10


NOTES (continued)

Summary of significant accounting policies (continued)

G) Quoted securities

Investments in quoted securities are initially recognised at trade date and subsequently measured atmarket value. Dividends earned on quoted securities are recognised directly in the statement offinancial performance except for investments made with restricted funds in which case the dividendearned are credited to reserves.

(k) Borrowings

Borrowings are recognised initially at nominal price (that is, the face value of cash received from thelender) and subsequently measured at net of repayments of capital elements. Borrowings are classifiedas current liabilities unless the University has an unconditional right to defer settlement of the liabilitiyat least 12 months after the end of the reporting period. Borrowings are removed from the balance sheetwhen the obligation specified in the contract is discharged, cancelled or expired.

Interest expense incurred on borrowings is recognised when incurred and included in finance costs inthe statement of financial performance.

0) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, balances with banks and other short-term highlyliquid investments.

(m) Endowment fund

The endowment fund is a restricted fund purposely set up to provide regular income through incomeearned on the principal amounts for the purpose of providing support to the University's operations.Changes in the value of the underlying assets are reflected in the fund.

(n) Pensions

The University has both a defined benefit and defined contribution plans. A defined contribution plan isa pension plan under which the University pays fixed contributions to a separate entity (SSNIT). TheUniversity has no legal or constructive obligation to pay further contributions if the fund does not holdsufficient assets to pay all employees the benefits relating to employee service in the current and priorperiods. The defined contribution schemes is operated for all staff except for senior members.

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefitplans define an amount of pension benefit that an employee will receive on retirement, usuallydependent on one or more factors such as age, years of service and compensation.

The University's defined benefit plan, the Ghana Universities Staff Superannuation Scheme (GUSSS),is operated for senior members. The assets and liabilities of the plan are not included in the University'sfinancial statements.

11

University of GhanaFinancial Statements for theyear ended 31December 2016

NOTES(continued)

Summary of significant accounting policies (continued)

(0) Income recognition

Income comprises of Government subvention, academic fees, other student charges, research grants,bursaries and financial aid and interest income.

(i) Government subvention and grants

Government subvention is made up of emolument, service and administration subventions.

Emolument subvention refers to funds received from the Government of Ghana to pay for staff salaries,social security contributions and Ghana Universities Staff Superannuation Scheme (GUSSS) operatedby the University. Emolument subvention is recognised on accrual basis.

Administrative subvention refers to funds received to pay for budgeted operational expenditureincluding water and electricity bills. Administrative subvention is recognised on accrual basis.

Service subvention refers to funds received to pay for costs in relation to the core activities of theUniversity and is recognised on cash basis.

(ii) Academic fees and other student charges

Academic fees are recognised when students register. Other student charges relate to other servicesprovided by the University to students and are recognised on cash basis.

(Hi) Interest income

Interest income is recognised on a time proportion basis using the effective interest method.

12


NOTES (continued)

2 Government subvention and grants

Emoluments subventionAdministrative subventionInvestment subventionBook and research allowanceGETFUND

3 Academic fees and other student charges

Regular academic feesSpecial feesOther student fees

4 Bursaries and financial aid

Year ended 31December 2016

Student Financial Aid Office

Year ended 31 December 2015

Student Financial Aid Office

5 Interest income

Interest on investmentsCall interest incomeInterest on staff loansOther interest income

Balance At 1January 2016

Year ended 31December

2016GH4

201,129,08643,119,902

9,124,345137.901

253.511.234

119,006,62522,418,33013.865.102

155.290.057

2015GHq:

193,262,01020,006,34210,445,9758,244,317

182,876

232.141.520

94,323,88123,311,01910,824,139

Balance At 31December

Outflows 2016Inflows

Balance At 1

January 2015

157,177

13

Inflows Outflows

1.013.105 (675.288)

Balance At 31

December 2015

494,994

Year ended 31December2016 2015GH4 GHq:

11,494,781112,967141,045397.403

12.146.196

9,353,154102,485130,085635,280

10,221.004


NOTES (continued)Year ended 31December

2016 2015GH4 GHq:

6 Other income

Sale of other goods and servicesSundry incomeProject overhead incomeTechnical service chargeSale of farm produceDonation incomeAffiliate fees incomeProceeds from liquidation of endowment assetPrint and other service income

24,682,94212,408,2907,497,2643,322,3532,133,5371,457,101570,384

123,119

7 Personnel costs

EmolumentsPension paymentsBook and research allowance

231,579,42411,931,8709,411,374

252.922.668

The personnel costs have been analysed into academic and non academic costs in note 36.

8 Other operating expenses

Repairs and maintenanceAdministrative and general expensesBulk utilityStaff welfareExamination expensesAdmission expensesLocal travel costsSelection and trainingForeign travel costsAnimal and crop production costsStudent welfare expensesAudit fees

32,894,22444,232,71444,965,4489,581,06010,627,1896,568,9304,878,4733,900,2412,900,7471,044,7791,733,608573,000

19,367,27713,668.4346,374,8432,711.4571,817,7231,692,7951,773,920521,700129,384

221,877,6816.438.4707,865,141

236.181.292

33,136,85140,509.41226,957.4628,727,05011,704,7136,614.4334,125,2463,781,5402,391,661896,537

1,053,882513,000

The other operating expenses have been analysed into academic and non academic costs in note 36.

140.411.787

9 Research grants and contracts expenses

Personnel costsExaminationAsset written offAdmin and general expensesForeign travel costsSelection and trainingLocal travel costsBulk Utility servicesRepairs and maintenanceFinancial servicesStaff welfareAnimal/ crop production costs

34,599,39639,598,82011,296,68211,779,3575,669,1458,324,3103,739,789

552,6871,087,982

745,999407,892

1,017,236118,819,295

14

32,632,62535,184,049

9,119,63610,777.4565,135,3685,334,1632,882,910

598,903692,231615.497312.471

1,159,843


NOTES (continued)

10 Fixed assets write off


Purchases in the yearWrite offsNet book value

Land and Plant and Other assets Totalbuilding equipment

GHct GHct GHct GHct12,699,343 27,044,040 1,798,878 41,542,261

(12,699,343) (27,044,040) (1,798,878) (41,542,261)


Purchases in the yearWrite offsNet book value

GHq:10,065,048

(10,065,048)

GHq:28,673,880

(28,673,880)

GHq:15,752,828

(15,752,828)

GHq:2,856,004

(2,856,004)

Year ended 31December2016 2015one GHq:

11 Finance costInterest and bank chargesUnrealised translation losses

13,326,3752,110,007

11,594,6721,694,775

12 Unquoted securities

UGELUG Medical Center Limited

19,095,064 19,094,564

Unquoted securities represents the University's investment in the shares of University of Ghana EnterpriseLimited (UGEL) and expenses incurred on UG Medical Center.

UGEL was incorporated on 24 September 2007 and is wholly owned by University of Ghana. It wasincorporated to undertake the following activities:

• to provide hospitality facilities for staff and students of the University;• to provide hospitality and health services for the University community;• to carry on all or any of the business of publishing, printing and distribution of books and stationary;• to carry on all or any of the business of commercial farming, developing and maintaining agricultural

outstations and botanical gardens of the University of Ghana and• to carry out any other activities deemed necessary for the realization of the above objects.

At the reporting date, an amount of GHq:15,909,561 (2015: GHq:12,110,143) was owed to UGEL by theUniversity, representing hostel fees collected by the University on behalf ofUGEL.

University of Ghana Medical Centre (UGMC) was registered as a limited liability company on 10 September2015. It is wholly owned by the University. Its principal activity is to oversee the management ofthe MedicalCenter of University of Ghana.

15


NOTES (continued)

13 Quoted securities

Year ended 31December 2016Outstanding

shares

Standard Chartered BankEnterprise GroupGuiness Ghana Brewery LtdSociete Generale Ghana

362,3405,000

1072,424

Year ended 31 December 2015Outstanding

shares

Standard Chartered BankEnterprise GroupGuiness Ghana Brewery LimitedSociete Generale Ghana

362,3405,000

1072,424

Movement in quoted securities

Balance at 1 January

Valuation loss

14 Non current deposits

Price pershare

12.182·401.630.62

Price pershare

16·302-401.990.80

Total2016 2015

4,413,302 5,906,14212,000 12,000

174 2131,503 1,939

4426,979 5.920.294

Total2015 2014

5,906,142 7,373,61912,000 8,750

213 3431,939 2,424

5,920,294 7,385,136

As at 31December2016 2015

5,920,294(t,493,315)

7,385,136(1,464,842)

4,426,979 5.920.294

Non current deposits relate to a cash deposit by University of Ghana into a Rent Reserve Account established bythe University. The Rent Reserve Account has been set up to meet the conditions of the BOT agreement betweenUniversity of Ghana and Africa Intergras. Under the agreement, African Intergras will construct facilities forspecified Colleges at the University.

The construction is expected to be completed by September 2017. At 31 December 2016, University of Ghanahad paid GHct17,943,821 (US$4,272,135) into the rent reserve account.

15 Stocks of consumables

Stationary and general storesComputer hardwareFood stockAnimal stock

16

2016GH~

8,074,211136,97533,343

931,883

2015GHct

6,480,72469,56246,962

855.536

9.176,412 7.452.784


NOTES (continued)

Year ended 31December16 Accounts receivable

2016GH~

2015GHq:

Subvention receivableSundry debtorsInterest receivable on investmentsAdvance to University of Ghana Medical Centre

124,678,4906,812,4424,045,0852,352,271

62,585,6656,273,3573,272,457

137,888,288 72.131.479

17 Employees personal accounts

The employee personal accounts is made up of staff loans and advances.

18 Students fees receivable

Gross students fees receivable 19,807,593 14,273,568Provision for impairment (3,101,564) (4,298,680)

Net students fees receivable 16.706.029 9.974.888

19 Short term investments

UG fixed deposit investment account 44,357,094 31,247,818Projects fixed deposit investment account 41,148,828 30,560,572Call investments account 1,100,989 2,808,533SRC T-Bill investment account 3,637,826 3,032,395Other securities 2,105,908 22.947,479

92.350.645 90.596.797

20 Cash and bank balances

Cash in hand 52,954 56,453Cash at bank 87,935,516 105,039.523

87.988.470 105·095·976

Cash and bank balances at the end of the year included an amount of GHct60,302,282 (2015: GHct65,572,628)which relates to projects bank balances available for funding project activities based on grant agreementsbetween external donors and University of Ghana.

17


NOTES(continued)

21. Bank overdraft

Facility

Ghana CommercialBank overdraft facility(Main University)

Ecobank GhanaLimited overdraftfacility (MainUniversity)

Ecobank GhanaLimited overdraftfacility (College ofEducation)

Amount Details Date issuedGH<t

14 million This facility was taken for the 24 July 2016purpose of paying salaries. Theapplicable interest rate on theoverdraft from GCBBank is 27%(2015: 28%) per annum or at anyother rate determined by the bank.The overdrafts are secured by acharge over Governmentsubventions (note 2). At the end ofthe reporting period, the Universityhad an outstanding overdraft of GH<t14,918,161 (2015: GH<t1O,012,631).

Maturity

24 July 2017

11million This facility was taken for the 1January 2016 31December 2017purpose of paying salaries. Theoverdraft facility contracted fromEcobank Ghana Limited attractsinterest at a rate of 28.95% (2015:25.95%). The overdrafts are securedby a charge over Governmentsubventions (note 2). At the end ofthe reporting date, the Universityhad an outstanding overdraft ofGH<t6,877,391 (2015:GH<t10A90,67° ).

900,000 College of Education had an 21 July 2015overdraft facility with Ecobank as at31 December 2015. The outstandingamount was GH<t336,982. Therewas no outstanding balance as at 31December 2016.

22 Cash and cash equivalents

Cash and cash equivalents include the following, for the purposes of the cash flow statement.

Cash and bank balances (Note 20)Bank overdraft (Note 21)Short term investments (Note 19)

2016GHct

87,988,470(21,795,552)92,350,645

18

Twenty five (25)months from the

date ofcommencement

2015GH<t

105,095,976(20,840,283)

9°,596,797

174.852.490


NOTES (continued)

23 Accounts payable and accrued liabilities

Electricity bill payableWater bill payableContractors and suppliers payableRelated party (UGEL)Salary related payableSundry payablesStudent association payableInterest payable

24 Related party transactions and balancesTransactions with UGEL

Balance due UGEL at 1January

Residential user fees

Expenditure paid on behalf of UGEL

Amounts due to UGEL

Expenditure paid on behalf of UG Medical Center

Transactions with University of Ghana Medical Center

25 Borrowings


Balance at 1January

HFC- ISL UG BondsPrudential Bank loanBorrowing fromrestricted fundGCB interest free loanGCBTerm Loan Account

16,155,3503,043,038

1,264,9952,232,29610,831,529

SCB-UG Vehicle LoanFacility 1,717,789

Total

Current portionNon current portion

10,016,60025,228,397

Drawdowns

5,608,073

794,334

Repayments

(2,242,304)(435,148)

(947,951)(576,829)

(4,115,174)

6,402,407 (8.900.620)

19

Year ended 31December2016 2015GHct GH<t

70,616,38832,398,65420,158,07415,909,5619,635,8697,880,5575,827,3191,240,967

163.667.389

12,110,143

(10,244,340)

2,352,271

Exchangedifferences

1,659,650347,381

40,652,40819,270,68913,605,81012,110,1435,609,8825,910,418

4,283,000378,777

101.821.127

7,101,726

(8,701,455)

12,110,143

Balanceat gr

December21,180,7692,955,271

420,0202,449,8016,716,355

2,110,007 34,856.791

7,298,40427,558.387


NOTES (continued)

25 Borrowings (continued)


Balance at Drawdowns Repayments Exchange Balance1January differences at 31

December

HFC-ISL UG Bonds 6,600,000 13,831,959 (4,600,000) 323,391 16,155,350HFC-ISL UG Road Toll Bond 8,000,000 (8,000,000)Prudential Bank loan 3,457,509 (992,157) 577,686 3,043,038Borrowing from restricted fund 3,197,000 (2,725,703) 793,698 1,264,995GCB interest free loan 2,449,595 367,504 (584,803) 2,232,296GCBTerm Loan Account 12,000,000 (1,168,471) 10,831,529

SCB-UG Vehicle Loan Facility 1,547,603 778,514 (608,328) 1,717,789

Total 25,251,707 26,977,977 (18,679,462) 1.694,775 35.244.997

Current portion 9,555,446 10,016,600Non current portion 15,696.261 25,228,397

HFC-ISL Science Equipment Bond (US$)

This is a 5 year facility of US$5, 000,000 arranged by HFC Investment Services Limited on 30 January 2015to finance the procurement of modern laboratory equipment for the Science Colleges (College of Basic andApplied Science and College of Health Science). It attracts interest at the rate of 7% payable on semi-annualbasis.

Prudential Bank loan

This is US Dollar facility of US$1,500,000 contracted from Prudential Bank (Ghana) Limited and attractsinterest at 12% per annum and repayable on monthly basis from the disbursement date. The loan wascontracted by the Institute of African Studies in March 2009 for the completion ofYiri Lodge. The facilityis secured over Yiri lodge, all rental proceeds from the lodge and guarantee from the University of Ghana.The loan was rescheduled for 54 months on 17December 2015.

Borrowing from restricted fund

A loan facility US$1,000,000 was granted by Noguchi Memorial Institute for Medical Research toUniversity of Ghana on 5 September 2014 to support its working capital needs. The borrowing attractsinterest at 6% per annum and shall be repaid in three (3) equal instalments over 18 months, ending 5 March2016. The total amount outstanding at the reporting date was US$100,000 (GH<l:420,020).

20


NOTES (continued)

25 Borrowings (continued)

GCBinterest free loan

This is a 5 year facility contracted on 28 January 2014 with an approved limit of GHq:3,6u,433 whichattracts no interest. The facility was taken for the construction and completion of lecture theatres andexamination halls. The loan is disbursed by the bank directly to the contractors based on certified workdone.

GCBTerm loan

The University contracted an overdraft facility from GCB Bank Limited for the purpose of paying salaries.The University converted part of the overdraft facility amounting to GHq:12,000,000 to a term loan on 24July 2015. The term loan attracts interest at the rate of 28% per annum. The term loan will be paid over 2years, payable on quarterly basis.

SCB-UGVehicle Facility

The SCB - UG vehicle facility is a 5 year loan facility contracted by the University of Ghana on 8 May 2012 topurchase vehicles for the University's own use. The facility attracts a variable interest rate at 17.5%per annumpayable monthly in arrears. The facility is secured over the vehicles purchased which are comprehensivelyinsured in the joint names of the lender, Standard Chartered Bank and the University.

26 Restricted funds

Year ended 31December 2016Balance At Additions Used in the Balance At1January during the year 31December

Fund type 2016 year 2016Project funds (Note 27) 96,133,200 130,040,792 (118,819,295) 1°7,354,697Bursaries and financial aid (Note 4) 494,994 1,422,831 (1,132,456) 785,369Awards and memorial 2,904,627 8°9,320 (230,335) 3,483,612

99,532,821 132,272,943 (120,182,086) 111.623.678

Year ended 31 December 2015Balance At 1 Additions Used in the year Balance At 31

January 2015 during the December 2015Fund type yearProject funds (Note 27) 73,477,481 127,100,871 (104,445,152) 96,133,200Bursaries and financial aid (Note 4) 157,177 1,013,105 (675,288) 494,994Awards and memorial 2,815,518 445,238 (356,129) 2,904,627

76.450.176 128,559.214 (105.476,569) 99,532.821

21


NOTES (continued)

26 Restricted funds (continued)

Awards and memorial

Year ended 31 December 2016Balance At 1 Inflows Outflows Balance At 31

January 2016 December2016

Office of Research,Innovation and Development(ORID) 2.904.627 809.320 (230.335) 3.483.612


Balance At 1 Balance At 31

January 2015 Inflows Outflows December 2015

Office of Research, Innovation andDevelopment (ORID) 2.815.518 445.238 <356.129) 2.904.627

27 Project research funds

Year ended 31 December 2016Balance At Received in Transfer to Balance At 311January the year income for the December 2016

2016 year

Office of Research, Innovation andDevelopment (ORID) 31,320,075 43,354,606 (40,390,434) 34,284,247Regional Institute of PopulationStudies (RIPS) 2,457,429 2,717,753 (3,484,384) 1,690,798Institute of statistical, Social andEconomic Research (ISSER) 13,478,694 17,297,152 (16,999,307) 13,776,539School of Public Health (SPH) 14,868,760 11,488,296. (11,723,531) 14,633,525College of Health Sciences (CHS) 2,111,829 906,236 (912,666) 2,105,399Noguchi Memorial Institute ofMedical Research (NMIMR) 16,145,950 35,466,934 (26,175,655) 25,437,229University of Ghana Medical School 355,629 4,399,823 (4,399,823) 355,629College of Basic and AppliedSciences (CBAS) 11,647,470 12,620,459 (13,352,749) 10,915,180University of Ghana BusinessSchool/Others 3.747.364 1,789,533 (1,380,746) 4,156,151

96.133,200 130.040.792 (118.819.295) 107.354.697

22


NOTES (continued)

27 Project research funds (continued)


Office of Research, Innovation andDevelopment (aRID)Regional Institute of PopulationStudies (RIPS)Institute of statistical, Social andEconomic Research (ISSER)School of Public Health (SPH)College of Health Sciences (CHS)Noguchi Memorial Institute ofMedical Research (NMIMR)University of Ghana MedicalSchoolCollege of Basic and AppliedSciences (CBAS)University of Ghana BusinessSchool/ Others

28 Accumulated fund

Balance At 1

January 2015

21,866,233

840,939

9,385,50810,692,0541,236,654

73,477,481

Balance as at 1JanuaryUniversity of Ghana BookshopWest African Centre for Crop Improvement (WACCI)Deficit/ (Surplus) for the Year

Balance as at 31 December

Transfer toReceived in income for the Balance At 31

the year year December 2015

37,711,467 (28,257,625) 31,320,075

4,136,408 (2,519,918) 2,457,429

20,329,689 (16,236,503) 13,478,69416,304,666 (12,127,960 ) 14,868,760

1,164,672 (289,497) 2,111,829

25,304,391 (30,230,050) 16,145,950

3,402,539 (5,814,236) 355,629

14,623,061 (8,592,749) 11,647,470

4,123,978 (376,614) 3,747,364

127,100,871 (104,445,152) 96,133,200

Year ended 31December2016 2015GH~ GH(j:

42,873,219 42,284,914962,491

1,434,692(537,499) 588,305

44.732.903 42,873,219

During the year, the operations of University of Ghana Bookshop and West African Centre for CropImprovement (WACCI) which in previous years were treated as autonomous entities, were consolidated withthe results of the University. The accumulated fund of the Units at 1 January 2016 have been included in theaccumulated fund of the University at 31 December 2016.

29 General reserve fund

Balance at 1JanuaryFunds (withdraw) or received in the yearBalance at 31 December

6,575,016(346,835)

4,383,8932,191,123

6.228.181

23


NOTES (continued)

30 UG Endowment fund

Balance at 1January 5,906,142 7,894,955Changes in the value of assets (1,492,841) (1,467,113)Treasury bill investment liquidated (521,700)Balance at 31 December

5.906.1424,413,301

31 General and special research funds received

2016 2015

Project Funds (Note 27) 130,040,792 127,100,871Bursaries and financial Aid (Note 4) 1,422,831 1,013,105Awards and Memorial (Note 26) 809,320 445,238General reserve (Note 29) 2,191,123

132,272,943 130.750.337

32 General and special research funds used

Project Funds (Note 27) 118,819,295 104,445,152General Reserve (Note 29) 346,835Bursaries and financial Aid (Note 4) 1,132,456 675,288Awards and Memorial (Note 26) 230,335 356,129

120,528,921 105.476.569

33 Cash generated from operations

(Deficitj/ Surplus for the year (537,499) 588,305

Adjustments for:Fixed assets written off (Note 10) 41,542,261 28,673,880Gain on disposal of fixed assets (121,748) (265,615)Interest income (Note 5) (12,146,196) (10,221,004)Finance costs (Note 11) 15,436,382 13,289,447

Increase in accounts receivable (64,206,489) (4,806,616)

Increase in stock of consumables (1,454,593) (883,077)

Decrease in employees personal accounts 724,736 1,060,968

Increase in students receivable (6,731,141) (1,169,241)

Increase in accounts payable 60,880,030 39,495,065Decrease/Iincrease) in provisions for liabilities 60,000 (693,116)

Cash generated from operating activities 33,445,743 65.068.996

24


NOTES (continued)

34 Contingent liabilities

UGELHostel Projects Loan

University of Ghana Enterprises Limited which is 100% owned by University of Ghana contracted a loanfacility amounting to GH<t43 million from a consortium of six banks. The University acted as the guarantor ofthe loan. The loans were approved in two tranches, the first tranche amounting to GH<t26million was approvedon 28 February 2008 whilst the second trache was approved on 14 October 2010 to finance the constructionof hostels on University of Ghana campus. The lead arranger was Cal Bank Limited. The facility commitmentof each bank is as follows:

Financial Institution Amount (GH~)

Cal Bank LimitedAgricultural Development Bank LimitedEcobank Ghana LimitedSG-SSB LimitedFidelity Bank LimitedInternational Commercial Bank LimitedTotal

17,000,00010,000,0008,000,0005,000,0002,000,0001,000,000

43,QQQ,QQQ

Outstanding balance as at 31 December 2016 was GH<t235A05A40 (2015: GH<t211,718,663).

The Ministry of Finance started negotiations with the lenders for a takeover of the indebtedness of UGEL.However, the negotiations have not been concluded at the year end.

35 Pending Legal Suits

There are certain pending legal suits against the University as at the reporting date. The Council is of theopinion that the cases when finally determined will not result in any material financial impact on theUniversity.

25

Year ended 31 December 2016 Year ended 31 December 2015

Academic Non academic Academic Non academicrelated related Total related related TotalGH4 GH4 GH4 GH4 GH4 GH4

(i) Personnel costs

Emoluments 118,670,372 116,168,006 234,838,378 124,772,002 97,105,679 221,877,681Pension payments 8,672,916 8,672,916 6,438,470 6,438,470Book and research allowance 8,115,970 1,295,404 9,411,374 6,671,741 1,193.400 7,865,141

126.786.342 126.136.326 252.922.668 131.443,743 104,737,549 236,181.292(ii) Other Operating expenses

Repairs and maintenance 14,013,617 18,880,607 32,894,224 5,041,363 28,095,488 33,136,851Administrative and general expenses 31,396,207 12,836,507 44,232,714 29,864,891 10,644,521 40,509,412Bulk utility 14,470,914 30,494,534 44,965,448 11,052,559 15,904,903 26,957,462Staff welfare 4,704,303 4,876,757 9,581,060 3,831,300 4,895,750 8,727,050Examination expenses 10,627,189 10,627,189 11,704,713 11,704,713Admission expenses 6,568,930 6,568,930 6,614,433 6,614,433Local travel costs 2,927,084 1,951,389 4,878,473 2,436,614 1,688,632 4,125,246Selection and training 3,°5°,460 849,781 3,900,241 2,957,621 823,919 3,781,540Foreign travel costs 1,958,085 942,662 2,900,747 1,614,438 777,223 2,391,661Animal and crop production costs 1,044,779 1,044,779 896,537 896,537Students welfare expenses 1,733,608 1,733,608 1,053,882 1,053,882Audit fees 573,000 573,000 513,000 513,000

92.495,176 71.405.237 163.900.413 77.06835;1, 63,343.436 140.411,787


NOTES (continued)

36 Analysis of personnel costs and other operating expenses by function

UNIVERSITY OF GHANA · Annual report for the year ended 31December 2016 REPORT OFTHE COUNCIL The...

Documents

Transcript of UNIVERSITY OF GHANA · Annual report for the year ended 31December 2016 REPORT OFTHE COUNCIL The...