Policies and Regulations

1. Policies and Regulations • Situation at the University of Ghana • Confusion • Contradiction

2. Confusions • Legislature • Different Acts specifically require that the University ascribe to different policies and regulations • Interpretation • There are different interpretations made as to which Acts apply to the University

3. Contradictions • Legislature • Different Acts determine regulations to apply to the University that are not consistent with others. • Interpretation • A regulation states a policy that is different from how matters are conducted or are done.

4. External Legislature • Laws and Acts affecting the University • Principal • 1992 Constitution of the Republic of Ghana • University of Ghana Act, 2010 (Act 806) replacing the University of Ghana Act, 1961 (Act 79) • National Pensions Act, 2008 (Act 766) • Public Procurement Act, 2003 (Act 663) • Financial Administration Act, 2003 (Act 654) • Others • Ministries, Departments and Agencies (Retention of Funds ) Act, 2007 (Act 735) • Fees and Charges (Miscellaneous Provisions) Act, 2009 (Act 793)

5. ExternalLegislature • Laws and Acts affecting the University • Others continued • Fair Wages and Salaries Commission Act, 2007 ( Act 737) • Internal Audit Agency Act, 2003 (Act 658) • Audit Services Act, 2000 (Act 584) • Legislative Instruments and Policies • Financial Administration Regulations 2004 (LI1802) • The Single Spine Pay Policy, 2010

6. Internal Legislature • Statutes of the University of Ghana • Financial and Stores Regulations

7. Examples • Constitution Gives an independence to the University, but constrains the University ability to generate fees income from Students for Tuition • Financial Administration Act Sets the financial year end of the University as being the same as Government , but this is 1st January to 31 December, when the University operates from 1st August to 31 July the following year

8. Examples • Finance Administration Act 38 (2) Accounts shall be prepared in accordance with generally accepted accounting practice, as defined by the Institute of Chartered Accountants of Ghana ; all reports are required to be submitted are on a “Cash Book basis” • Financial Administration Act 51 (2) defines internally generated funds very broadly and although the University is elsewhere able to retain funds paid to it, this Act precludes the investment of money in Government Securities; Research funds received are obliged to be invested in Treasury Bills

9. Examples • Public Procurement Act There are very defined and prescriptive obligations contained in this legislation that hamper the University in the conduct of its normal business and ultimately cost the University money; many payments and disbursements can be made whilst retaining the objectives of “value for money “

10. Examples • Fair Wages and Salaries Commission and single spine policies the Act suggests that only the Commission can determine the emoluments and conditions of service of Public Servants; For their purposes staff of the University are Public Servants. • University of Ghana Act 33 (1) empowers Council through enacted Statutes to: regulate the • Appointment, • conditions of service • termination of appointment • and retirement benefit of employees of the University

11. Examples • National Pension Act 213 (1) has determined a transitional period for the continuation of amongst others the “Ghana Universities Staff Superannuation Scheme” which thereafter “cease to be in force after that period” • University of Ghana Act 33 (1) empowers Council through enacted Statutes to: regulate the • Appointment, • conditions of service • termination of appointment • and retirement benefit of employees of the University

12. Examples • Further A recent audit report on IGF conducted in terms of regulations in both FAA and the Audit Service Act acknowledges inter alia: “ In contrast, Section 187(2) of the 1992 Constitution of the Republic of Ghana and section 14(2) of the Public Procurement Act recognise the public universities as entities distinct from MDAs” Further in the report states” section 5(b) of the Act 735, 2007 (Ministries Departments and Agencies (Retention of Funds) Act) states that MDAs….. Further, these expenditures were funded from Government subventions and the University’s IGFs. However, the University failed to report to MOFEP on its monthly expenditures funded from the IGFs contrary to the above-mentioned law”

13. Examples • Internal Statutes • Allows for the existence of Self Accounting Units • Colleges, Schools and Institutes • receives its own Government subvention • Runs its own payroll and General Ledgers • determines its own approval mechanism through its Council • “Financially Autonomous” • Developed their own models for financial regulations • Opened their own bank accounts • prepared its own annual financial statements • Reports to its own Council

14. Challenges • Be a world class University • Operate as an independent University • Comply with universally accepted controls and policies • Prepare financial regulations and develop policies that did not contravene either laws or conventions • propose regulations that would receive acceptance from both external stakeholders an the University community • Define reporting mechanisms that would be universal and consistent

15. Challenges • Be a world class University • Conform to Governance Structures that are recognised • have systems that would allow appropriate collection of data • reporting methods and content relevant accurate and timely

16. Challenges • Operate as an independent University • makes rules and regulations that conferred and confirmed the control exercisable over the operations and financial values of the University • entrenched the security of money received for the purpose of teaching learning and essentially research • left no room for unauthorised misuse of University funds, • ensured money was used only for the needs of the University in achieving its goals

17. Challenges • Comply with universally accepted controls and policies • document regulations and develop policies that are used in tertiary institutions around the world • compare the nature of the operations and ensure that risks are addressed relating to the specific conditions in Ghana • have proper transparency

18. Challenges • Prepare financial regulations and develop policies that did not contravene either laws or conventions • reviewed regularly the proposals against the relevant legislature and statute • conferred with colleagues and submitted proposals to peer and others’ review • ensure that the relevant oversight is available for all stakeholders

19. Challenges • propose regulations that would receive acceptance from both external stakeholders an the University community • follow up reviews with authorities, supporters and funding partners

20. Challenges • Define reporting mechanisms that would be universal and consistent • researched the reporting media of Universities in many parts of the world • looked at best practice and studied the results available elsewhere • complied with recommended reporting and governance issues found on the internet • used models available from the UK and USA, as well as from Accounting Institutions

21. Way forward • Financial Governance, Policies and Regulations • Determine the regime of Governance applicable for the University • Draw up documents formulating policies and regulations • Communicate with relevant authorities • Reach consensus on what is required and how it is to be achieved • Adopt the finally agreed documentation of the policies and regulations with commitment • Approve the University of Ghana Governance and Regulations for the operation of the University’s Financial matters

22. Actions • Appointed a Consultant to draw up draft University of Ghana Financial Regulations • Research and obtain examples of policies and procedures, governance and other relevant information from Universities in other countries • acknowledged the situation as pertains in Ghana with regard to all aspects of the laws and practices • set up various reviews of the process and of the resulting documents and ensured appropriateness and detail • Draft final documents for approval of the University Community, Government, Stakeholders and other interested persons

23. Detail draft University of Ghana governance and financial regulations to include Financial Governance requirements Transaction rules General accounting policies and procedures Levels of authority Policies as to how income and expenditure to be treated Distinctions between Income and Expenditure and Balance Sheet Accounts Policies for disclosures in Annual Financial Statements Whistleblowing policies Fraud policies 23

24. Risk Without a framework of good and acceptable Financial Governance , Policies Regulations and procedures Government will try to take control of University funds Government will be suspicious of a Public Entity able to spend public money apparently without recourse to its own regulations Government will look at the University as a source of funds Funders and Research grant donors will be alert to the risks to their money being abused by the University, and even Government. Without Research where does the University go? 24