CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE

Transcription

1 CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE BUDGET FOR FINANCIAL YEAR THEME: TENTH ANNIVERSARY BUDGET APPROVED (1 ST MARCH, 2013)

2 CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE BUDGET FOR FINANCIAL YEAR. THEME: TENTH ANNIVERSARY BUDGET

3 Table of Contents Page Contents... I List of Table II-III List of Figures. IV Appendices... V Executive Summary Introduction Performance Objectives of the Assumptions and Resource Allocations Assumptions Resource Allocation by Faculties & Departments Summary of Financial Projections The Financial Performance projections for Financial Position Projections Cash Flow Projection for Summary of estimates Student Numbers Staffing Teaching and Admin Staff Numbers by Grades as at June Revenue Projections Capital Expenditure Development Projects Staff Cost General Educational Expenses Library Expenses General Administrative Expenses Municipal Services Financial Charges Hostels Faculty of Economics and Business Administration (EBA) Faculty of Information & Communication Sciences & Tech. (ICST) Faculty of Religious Studies (RS) Faculty of Education (EDU) Faculty of Public Health & Allied Sciences (PHAS) Part-time School School of Research and Graduate Studies The Centre of Enrichement Studies (CES) Library Central Administration Meetings Vice Chancellor s Office Registrar s Office Finance Office Fundraising and Development Office System Administration s Office Internal Audit Staff/Students Facilities i

4 List of Tables Page Table 1 SWOT Analysis.. 2 Table 2 Proposed Performance Indicators... 3 Table 3 Revenue Analysis for Table 4 Expenditure Analysis for... 4 Table 5 Analysis of Financial Position... 4 Table 6 Analysis of Faculty/Dept./Units Performance for... 5 Table 7 Performance Indicators Table 8 Resource Allocation by Faculties/Department/Units... 7 Table 9 Summary Financial Performance Projection for Table 10 Summary of Financial Position Projection for... 8 Table 11 Student Enrolment from 2006/2007 to by Faculties Table 12 STRs by faculties.. 10 Table 13 Staff Numbers by Grade 11 Table 14 Teaching and Admin. Staff by faculties/centres Table 15 Revenue By Sources Table 16 Capital Expenditure by Faculties/Department Table 17 Summary of on-going Development works Table 18 Staff Cost Table 19 General Educational Expenses Table 20 Library Expenses Table 21 General Administrative Expenses Table 22 Municipal Services expenses Table 23 Financial Charges Table 24 Hostel Revenue Table 25 Hostel Emoluments and Related Expenses Table 26 Hostel Capital Expenditures Table 27 EBA Revenue Table 28 EBA Staff Emoluments & Administrative Expenditure Table 29 EBA Capital Expenditure Table 30 ICST Revenue Table 31 ICST Staff Emoluments & Administrative Expenditure Table 32 ICST Capital Expenditure Table 33 RS Revenue Table 34 RS Staff Emoluments & Administrative Expenditure Table 35 RS Capital Expenditure Table 36 Education Revenue Table 37 Education Staff Emoluments & Expenditure Table 38 Education Capital Expenditure Table 39 PHAS Revenue. 23 Table 40 PHAS Staff Emoluments & Administrative Expenditure Table 41 PHAS Capital Expenditure Table 42 Part Time School Revenue Table 43 Part Time School Staff Emoluments & Admin. Expenditure Table 44 Part Time School Capital Expenditure Table 45 SR & GS Revenue Table 46 SR & GS Staff Emoluments & Admin. Expenditure Table 47 SR & GS Capital Expenditure Table 48 CES Staff Emoluments & Administrative Expenditure Table 49 CES Capital Expenditure Table 50 Library Revenue Table 51 Library Staff Emoluments and Administrative Expenditure ii

5 Table 52 Library Capital Expenditure Table 53 Central Administration Summary Table 54 Council and Senate Meetings Sitting Allowance.. 30 Table 55 VC s Office Staff Cost and Administrative Expenses Table 56 VC s Office Capital Expenditure Table 57 Registrar s Office Staff Cost and Administrative Expenditure Table 58 Registrar s Office Capital Expenditure Table 59 Finance Office Staff Cost and Administrative Expenditure Table 60 Finance Office Capital Expenditure Table 61 PR & Development Office Staff Cost & Admin. Expenditure Table 62 PR and Development Office Capital Expenditure Table 63 Systems Admnistration Office Staff Cost & Adm. Expenditure Table 64 Systems Admnistration Office Capital Expenditure Table 65 Internal Audit Staff Cost & Admininistrative Expenditure Table 66 Internal Audit Capital expenditure Table 67 Staff/Student Amenities/facilities iii

6 List of Figures Page Figure 1 Staff Numbers by Grades Figure 2 Revenue analysis by Faculties iv

7 Appendices Page Appendix 1 Projected Financial Performance for Appendix 2 Financial Position Projection for Appendix 3 Cash Flow Projections for Appendix 4 Standard Cost per Student for Financial Year Appendix 5 Staff Requirements for Appendix 6 General Educational Expenses for Appendix 7 General Administrative Expenses for Appendix 8 Tuition Fee Projections for Appendix 9 Registration and Admission fees projection for Appendix 10 Miscellaneous Revenue Projection for Appendix 11 Capital Expenditure Projections for Appendix 12 Indicative procurement plan for financial year. 50 Appendix 13 Summary of On-going Development Appendix 14 Methodology for Computing Full-Time Equivalent (FTE) v

8 Executive Summary This year s sets out the plans and priorities for the University s operations for the financial year. The process was initiated by the Finance Office of the University and overseen by the University Senate. The process begins with a review of the previous year s budget performance and builds on the successes achieved so as to ensure sound financial management support for the university s mission. The budget aim is to strengthen our physical and ICT systems and infrastructure which underpin the University s core business of teaching and learning, research and community engagement. As we celebrate our Tenth Anniversary, we will seek to optimise our systems and processes through ICT and physical infrastructure development. We will seek to ensure strict compliance with academic standards and regulations as we begin the processes leading to the attainment of our charter. The University Senate after having reviewed the budget makes the following recommendations for the Board/Council s consideration and approval. 1. An increase in students enrolment from 4,140 to 5,200 (i.e. about 26 increase over financial year, 2. An operating Income and Expenditure of Gh 10,436,484 and Gh 8,949,234 respectively which will result in an income surplus of Gh 1,487,250, 3. Consolidation of Staff Emoluments and Allowances which will result in about 18 upwards adjustments in staff cost. 4. A Capital and Development Expenditure of GH 630,488 for the financial year comprising; i. GH 187,368 to finance the enhancement of the IT infrastructure to enhance intrauniversity communication among staff and management, Students and Lecturers using staff and students portals and MS exchange. ii. iii. GH 200,000 to finance the construction and completion of the following; a. Pavement and parking lots within the campus, and a large garage for parking of university vehicles. b. A gated Security post and the enhancement of security structures within the University campus, and An amount of Gh 243,120 to purchase Equipment and Furniture. 5. An amount of GH 2.13 million and GH 1.19 million towards the payment of the GCB loan interest and to settle outstanding certificates due contractors and other liabilities respectively. Overall, the structure and direction of this was greatly enhanced by the leadership and vision provided by the Vice Chancellor, the Senate, and the Deans, Directors and Department Heads who provided their inputs. The broad participation and significant collaboration will extensively ensure the effective and efficient monitoring of the approved to create the financial capacity needed to sustain the growth. BUDGET Page 1

9 1. INTRODUCTION: The for financial year seeks to strengthen our physical and ICT infrastructure which underpin University academic work in line with our vision, mission and the overall objectives of the University. The aim is to develop and adopt operational strategies that will systematically build on our core strengths whiles taking advantage of the opportunities available to the University. We will also adopt strategies that address our weaknesses and the potential threats that may likely confront the University SWOT Analysis The SWOT analysis and the potential strategies to be deployed are as presented below; Table 1: SWOT Analysis 1 Strengths Strategies i. Staff moral and loyalty Staff retention and development and HR policy The Catholic University brand ii. Intensive promotion and brand awareness campaign iii. High Students' output quality Employers and other stakeholder engagements iv. Availability of Land Infrastructural development v. General Students' growth potentials Provision of students' support services Expansion potentials vi Intensive promotion and brand awareness campaign 2 Weaknesses Strategies Lack of or inadequate University Endowment i. Funds Intensify Fundraising campaigns ii. Inadequate Cashflow Steamline and enhance financial controls Inadequate deployment of available educational iii. technology Provision of ICT facilities and services iv. Inadequate staffing HR policy and remuneration package v. Infrastructural deficiency Infrastructural development vi Minimal academic staff research activities Provision of research and related facilities 3 Opportunities Strategies i. High demand for the Catholic Education brand Intensive promotion and brand awareness campaign Demand for continuous professional Development and introduction of CPD (i.e Certificate ii. development courses (CPD) courses) Availability of technological infrastucture in the iii. Country Provision of ICT facilities and services and E-learning Strategic alliance with Catholic Universities iv. globally (i.e IFCU) Employers and other stakeholder engagements v. Fundraising Prospects Intensify Fundraising campaigns High demand for Higher Education in the vi Country Infrastructural development High potential demand for Higher Education vii. from the West African sub region Website and online promotion strategies 4 Threats Strategies Lack of Government support for private i. University Education (i.e GETFund support) Employers and other stakeholder engagements ii. Strong competition Intensive promotion and brand awareness campaign Lack of job opportunities for University iii. graduates Employers and other stakeholder engagements Information technology (i.e. Internet and iv. distance learning) Provision of ICT facilities and services and E-learning v. High unemployment in the Country Employers and other stakeholder engagements vi Stiffer Government regulatory regime Employers and other stakeholder engagements Unavailability of funding and high Cost of vii. borrowing Intensify Fundraising campaigns viii. Location challenges Brand promotion & HR policy BUDGET Page 2

10 The key strategies to ensure we achieve academic excellence and sound financial health based on our SWOT analysis will include: Staff retention and development, remuneration package, HR policy, Intensive promotion and brand awareness campaign, Employers and other stakeholders engagements, Infrastructural development, Provision of students support services, Intensive Fundraising campaign, Streamline and enhance financial controls, Provision of ICT facilities and services and E-learning, Provision of research and related facilities, Development and introduction of Certificate courses, Website and online promotions 1.2 Key Operational and Financial Performance Indicators The following performance indicators will assist to consistently benchmark and appraise the key operational strategies we have deployed in the budget period; Table 2: Performance Indicators: PERFORMANCE INDICATOR TARGET/MEASUREMENT 1 Student Growth Marketing effectiveness of recruitment process At least 40 annual growth of Ghanaian students At least 10 annual growth of international Students 2 improved student satisfaction Student satisfaction survey overall average satisfaction rate of of annual Income investment in student support services 3 Increased employer partnership Graduate employment prospects and Graduate placement programme 60 graduate employment or 70 in graduate employement or futher studies 5 annual expansion in graduate placement/attachment 4 Staff Retention and Development Staff Retention and Training needs 98 staff retention Provision of staff development programme in line with departmental needs 5 ICT Facilities and Services Service availability and quality Service availability of 95 every semester ICT infrastructure deployment 90 Staff/student satisfaction with ICT infrastructure and provision 6 Research Activities Research activities quality 5 pa increase in research publications proposals 90 success in research proposals 7 Library Services Quality and accesibility of Library Resources 15 investment in libray infrastructure at least 70 libray usage 8 Income surplus Surplus At least 25 of annual operating income 9 Liquidity Liquidity days sufficient cash surplus to meet at least 30 days of average operating expenditure 10 Debt servicing Net Operating cash surplus cover of at least 2 times the debt servicing cost 11 Staff Cost to Income Staff cost to income At most 45 of fee income BUDGET Page 3

11 2. BUDGET PERFORMANCE FOR : monitoring and control improved considerably in the financial year due to the effective budget monitoring mechanism incorporated into university s financial management system. 2.1 Revenue: In the financial year, CUG generated Revenue totalling GH 8.12 million, 6 lower than the budgeted amount. This was mainly due to a shortfall in the student enrolment by about 12 over the projected numbers. Despite the shortfall, the university still realised a positive growth in revenue of about 24 over the previous year. The revenue stream of the University is as shown in table 3 below. Table 3: Revenue Analysis for : 2011 / / 2012 Gh Gh Tuition Fee Income 6,739,915 7,377,100 (9) Reg / Admission Fees 855, , Hostel Related Income 98, ,060 (62) Miscellances Income 426, , ,120,933 8,583,147 (6) 2.2 Operational Expenditure: Operational Expenditure was within budget during the period. operating expenses were 6 below budget mainly due to the university not recruiting the intended staff requirement budgeted. However, cost of operations increased by about 16 over the previous year due the general increases the prices of within the financial year. The detail expenditure classification is as shown in the table below. Table 4: Expenditure Analysis for : Expenditure 2011 / / 2012 Staff Emoluments & Allowances 5,344,283 5,540,096 4 General Educational Expenses 697, ,440 (18) Library Expenses 40, , General Administration Expenses 571, , Municipal Services 106,493 85,033 (20) Financial Charges 196,780 81,526 (59) Hostel Related Expenses 69, , ,027,264 7,468, Financial Position: Assets and liabilities were closely monitored within the financial year. Assets and liabilities were below budget by about 14 and 19 respectively owing to our inability to secure funding for the construction and completion of the development projects and the continuous accumulation of the interest on the NIB loan facility. Net assets increased by 79 over the previous year. Table 5 below summarises the financial position. Table 5: Analysis of Financial Position: Detail 2011 / / 2012 Non - Current Assets 12,469,244 10,569, Current Assest 2,784,095 2,565,058 8 Asset 15,253,338 13,135, Non - Current Liabilities 10,727,053 5,000, Current Liabilities 1,668,154 4,985,895 (199) Liabilities 12,395,207 9,985, Net Asset 2,858,131 3,149,108 (10) Deferred Capital Grants 927, , Endowment Funds 890, ,812 7 General Reserves 1,040,679 1,547,652 (49) Funds 2,858,131 3,149,008 (10) BUDGET Page 4

12 2.4 Faculty/Dept/Unit Operational Performance Faculties, Departments and Units operational expenses were within the budget for the financial year under review. The Faculty of Education, Finance, internal Audit and Systems Administration exceeded their budget allocations mainly due to some capital acquisitions which were under budgeted and increases in the prices of some expenses. The detail breakdown is found table 6 below. Table 6: Analysis of Faculty/Dept/Unit Performance for : DESCRIPTION ACTUAL BUDGET VARIANCE EBA 1,060,356 1,189, ICST 762, , Education 408, ,817-6 PHAS 582, , RS 293, , Part-Time School 310, ,425 7 Sch. Of Research & Graduate Studies 127, , Hostels 91, , CES 368, , Library 208, , Vice chancellor Office 316, , Registry 782, , Finance office 386, , Internal Audit 120, ,109-9 Fundraising & Development 63, , Chaplaincy 3,165 14, Dean of students Office 1,453 12, Systems Administration 113, , ,000,801 6,555, Performance Indicators for The actual performance indicators computed for the financial year compares well with the University s standard benchmarks. All the indicators showed an improved performance than anticipated with the exception of the student growth which was 11 below the budget. The performance also showed a positive trend against the industry benchmarks. The Staff Cost to Income and Current Ratios, and the percentage of long term liabilities to Funds and Reserves are significantly higher than the industry benchmarks. CUG s financial performance continues to show an increasing positive trend year on year. The table below provides the comparative analysis. Table 7: Performance Indicators: Benchmark 2011 / / 2012 Student Growth Rate Income Growth Income Surplus Staff Cost/Income General Educational Exp Administrative Exp/Income Library Exp./Income Staff/Students Facilities Ratio of Current Asstes to Current Liabilities 2:1 1.78:1 1.73:1 of Long Liabilities to Funds & Reseves BUDGET Page 5

13 3. BUDGET OBJECTIVES: The primary objective of this year s budget seeks to strengthen our physical and ICT systems and infrastructure to enhance academic work. The specific objectives of the budget are as follows: 1. An increase in students enrolment from 4,140 to 5,200 (i.e. about 26 increase over financial year, 2. An operating Income and Expenditure of Gh 10,436,484 and Gh 8,949,234 respectively which will result in an income surplus of Gh 1,487,250, 3. Consolidation of Staff Emoluments and Allowances which will result in about 18 upwards adjustments in staff cost. 4. A Capital and Development Expenditure of GH 630,488 for the financial year comprising; i. GH 187,368 to finance the enhancement of the IT infrastructure to enhance intrauniversity communication among staff and management, Students and Lecturers using staff and students portals and MS exchange. ii. iii. GH 200,000 to finance the construction and completion of the following; c. Pavement and parking lots within the campus, and a large garage for parking of university vehicles. d. A gated Security post and the enhancement of security structures within the University campus, and An amount of Gh 243,120 to purchase Equipment and Furniture. 5. An amount of GH 2.13 million and GH 1.19 million towards the payment of the GCB loan interest and to settle outstanding certificates due contractors and other liabilities respectively. Overall, the structure and direction of this was greatly enhanced by the leadership and vision provided by the Vice Chancellor, the Senate, and the Deans, Directors and Department Heads who provided their inputs. The broad participation and significant collaboration will extensively ensure the effective and efficient monitoring of the approved to create the financial capacity needed to sustain the growth. BUDGET Page 6

14 1. ASSUMPTIONS AND RESOURCE ALLOCATION: 4.1 Assumptions: i. It is expected that the period will experience a fairly stable Inflation rate of about 12 ii. The inter bank exchange rates to the Ghanaian cedi in respect of the major trading currencies is projected as follows: US Dollar = 1.00 / GH 2.25 The British Pound = 1.00 / GH 3.25 The Euro = 1.00 / GH 2.5 iii. The average Bank lending rate is expected to be around 24 per annum. iv. A much stable economic and political environment, v. We anticipate much stiffer competition from other universities and colleges. 4.2 Resource Allocation by Faculties & Departments: The allocation of resources to faculties and departments is as shown in Table 8 below. These allocations will be monitored closely to ensure that spending is within the approved resource allocation within the budget period. Table 8: Resource Allocation by Faculties & Departments/Units: DESCRIPTION Alloaction on EBA 1,206, ICST 978, Education 559, PHAS 887, RS 445, Part-Time School 491, Sch. Of Research & Graduate Studies 187, Hostels 123, CES 562, Library 404, Vice chancellor Office 365, Registry 898, Finance office 448, Internal Audit 153, Fundraising & Development Office 58, Chaplaincy 89, Dean of students Office 6, Systems Administration 161, ,030, BUDGET Page 7

15 5.0 SUMMARY OF FINANCIAL PROJECTIONS: In our quest for growth, financial sustainability and self reliance, it is utmost important that the year-onyear budget summary seeks to strengthen income surplus, net worth and liquidity. This will continue to be the bases and mechanism for amending and/or accepting final budget. 5.1 The Financial Performance Projections for : Tuition fees and other related income for fiscal year is projected at GH 10.4 million (i.e. close to 32 increase over the previous year). The projected increase is largely due to the anticipated increase in the student enrolment by about 26 over the academic year and the upwards adjustment in tuition fees from GH 1,600 to GH 1,700 within the budget period. Operational expenditure is projected to increase to GH 8.9 compared with the GH 6.9 incurred in financial year. The increase is mainly due to the staff recruitment by the Faculties, Departments and unit, and General Educational related services and overhead cost due to increases in the prices of goods and services within the period. The expected Surplus in financial year is projected at GH 1.5 million, representing about 14 of the projected operating revenue. The summary position is as follows; Table 9: Summary Financial Performance Projection for : Incre/Decr Tuition Fee Income 6,739,915 7,377,100 (9) 8,948, Other Income 1,195,047 1,206,047 (1) 1,488, Income 7,934,962 8,583,147 (8) 10,436, Staff Cost 5,332,946 5,540, ,699, General Educational Expense 681, ,440 (16) 899, Hostel Related Expenses 65, , , General Administrative Expense 567, , , Library Expenses 40, , , Municipal Services 99,005 85,033 (14) 103,158 4 Financial Charges 82,585 81,526 (1) 117, Expenses 6,869,189 7,468, ,949, (Deficit)/Surplus 1,065,773 1,114, ,487, Accumulated Fund Account 1,083,360 2,022, ,570, See Appendix 1 (page 36) for the projected Income and Expenditure Statement. 5.2 Financial Position projections: The Financial Position is expected to expand by about 50 in the financial year. assets is expected to increase to GH 20.0 million. Cash and Cash equivalent is expected to increase by GH 160,761. Two out of the three hostel clusters is expected to be completed within the budget period with a Medium Term Loan facility of Gh 5.00 million sourced from GCB Ltd. The University has also refinanced the NIB Loan amount of Gh 8.62 million (i.e principal plus interest) with an additional Medium Loan facility of Gh 8.5 million from GCB Ltd. This has resulted in interest savings of Gh 118, to the University which should have been paid to NIB. The summary of the anticipated Balance Sheet performance is as shown below; Table 10: Summary of Financial Position Projections for : BUDGET Page 8

16 Incre/Decr Fixed Asset 12,325,294 10,569,845 (14) 17,453, Current Asset 2,904,986 2,565,058 (12) 2,568,638 (12) Net Asset 2,957,245 3,149, ,444, Non - Current Liabilities 10,727,053 5,000,000 (53) 14,627, Current Liabilities 1,545,981 4,985, ,680 (39) Funds & Reserves 2,957,246 3,149, ,444, See Appendix 2 (page 37) for the detail Balance Sheet projections for 5.3 Cash Flow projections for The total cash inflow mainly from tuition fees and related income, including fundraising is projected at GH 15.81million. outflows made up of mainly operating and capital expenditure, developments works and payment of liabilities is estimated at GH 15.77million. This will result in cash surplus of close to GH 279,512 compared with the surplus GH 243,011 million in financial year. The settlement of liabilities will include GH 2.13 million towards the payment of the GCB loan interest accrued within the financial year, GH 1.19million to settle other short term liabilities and campus development works. Appendix 3 on page 38 provides the detail cash flow statement. The Finance Office will periodically review the day to day working capital requirement so as to maintain sufficient cash to meet at least 30 days of average operating expenses. Any surplus funds therein will be invested appropriately in accordance with the university s investment policy as set out in the financial regulation. 1.4 Summary of estimates Student Enrolment 4,140 5,200 GH GH Av. Fee Income per Student 1,961 1,974 Av.Standard Cost per Student 1,697 1,236 / Expected Revenue 8,118,313 10,436,484 / Expected Cost 7,027,304 8,949,234 Tuition Fee Income 6,739,915 8,948,250 Registratin / Admission Fee Income 855, ,660 Hostel Related Fee Income 95, ,700 Miscellaneous Income 426, ,874 Staff Cost ( Personnel Emolument ) 5,344,283 6,699,410 General Educational Expenses 697, ,929 Library Expenses 40,634 65,773 General Administrative Expenses 571, ,597 Hostel Related Expenses 69,685 87,182 Municipal services 106, ,158 Financial Charges 82, ,186 Income Surplus 1,065,773 1,487,250 Capital Expenditure 168, ,488 BUDGET Page 9

17 6.0 STUDENT NUMBERS: The University s current student population stands at 4,140, about 15 growth over the 2010/2011 financial year. Despite the growth recorded, actual enrolment targets were about 11 below the budget target (i.e. 391 students enrolment shortfall). The budgeted student enrolment as provided by the various faculties for this year s budget is 5,200, which will result in an intended student enrolment growth of close to 26 over the previous year. Table 11 below shows the detail breakdown; Table 11: Student Enrolment from 2007/2008 to by Faculties STUDENT NUMBERS FACULTIES 2007/ / / /2011 EBA Under-Graduate Students ,173 1,149 1,469 1,498 ICST Under-Graduate Students RELIGIOUS STUDIES Under-Graduate Students Post-Graduate Students 7 EDUCATION Under-Graduate Students Post-Graduate - PGD & MA Basic Diploma PHAS Under-Graduate Students ,104 1,187 PART-TIME SCHOOL Under-Graduate - Night Under-Graduate - Weekend , , ,484 2,527 3,580 4,140 4,531 5,200 Growth Rate NB: See appendix 8 (page 44) for details of the student enrolment 6.1 Student / Teacher Ratios (STR) The estimated Student / Teacher Ratios for the financial year show an improvement over the previous year. The STRs are projected to be within acceptable benchmarks as the university attains its optimum students enrolment with the existing infrastructure in the next two academic years. Table 12: STRs by Faculties: Faculties Standard STR FTE Students Operating STR ed FTE Students Proposed STR Economics & Business Admin 12:1 1,760 55:1 1,943 63:1 Information & Comm. Sc. & Tech. 10: : :1 Religious Studies 12:1 27 3:1 35 4:1 Public Health & Allied Sciences 8:1 1,785 58:1 2,104 62:1 Education 12: : :1 / Av. STRs 4,100 54:1 4,803 52:1 BUDGET Page 10

18 7.0 STAFFING: The University currently has full-time staff strength of 151 and a total of 36 part time staff to compliment the faculties staffing needs. The University intends to recruit 8 full-time staff comprising of; 4 Snr/Lecturers, 1 Senior Administrator, 3 senior staff, and 4 National Service Persons. Recruitment will be undertaking after a critical assessment of the faculty s or departmental staffing needs to determine the level of criticality that merits additional staff requirement. The budget objectives will be to; Ensure that qualified staffs (teaching, professionals and technicians) are recruited into critical areas with justifiable staffing needs. Pursue a coordinated staff training and development programme that will be fair and relevant to career advancement of all categories of staff within the University. Attract and deploy part-time professional staff to teach in the University s part-time programmes. The summary of full-time staffs is as shown the table below. Table 13: Staff Numbers by Grades Category of Staff At Post as at 30/06/2011 At Post as at 01/07/2012 at Post as at 01/07/2012 Required Vacancy Shortage Professor Snr Lecturer Lecturers Research Fellow Tutors Research Assistants Librarian Snr Administrators Senior Staff Junior Staff National Service Personnel See Appendix 5 (page provides the detail Staff requirement. Figure 1: Staff Numbers by Grades 7.1 Teaching Staff Numbers by Grades as at JUNE 2012 BUDGET Page 11

19 Table 14: ed Teaching Staff by Faculties/Centres Faculties Professor/ Ass. Professor Snr Lecturers Lecturers Research Fellow Tutors Research Assistant Administrators National Service EBA ICST RS Education PHAS CES SR & GS PT Teaching Staff Mix: Comparing the current Teaching Staff ratios with the industry benchmarks gives the following results. The table below reveals a worsening situation compared with the previous year. Grade NCTE Norm Staff Professor/Ass. Prof Snr Lecturer Lecturer The staffing mix is expected to improve marginally due to some pending promotions of staff that may occur within the budgeted period. This year s faculty appointments would also assist in enhancing the mix. The staffing mix is generally projected to improve greatly in the coming years. BUDGET Page 12

20 8.0 REVENUE PROJECTIONS: Operating Revenue budgeted for the financial year ending amounts to GH 10.4 million, about 29 increase over the operational revenue generated in financial year. The increase in revenue is significantly the result of projected increases in students enrolment for the budget period. This will result in a surplus of funds required of GH 4.0 million. The revenue projections are as shown in the table below. Table 15: Revenue by sources on Tuition Fees 6,739,915 7,377,100 (9) 8,948, Registration & Adm Fees 855, , ,660 9 Hostel Related Fees 95, ,060 (66) 171,700 2 Miscellaneous Revenue 426, , ,874 4 Revenue 8,118,303 8,583,147 (6) 10,436, Revenue Surplus/ (Shortfall) 1,090,999 1,114,332 (2) 4,009,284 Revenue Requirement 7,027,304 7,468,815 (6) 6,427,200 See Appendices 8, 9 and 10 for details on page 44, 45 and Strategies to enhance Revenue Surplus: The following measures are recommended to enhance the revenue surplus so as to accumulate the needed revenue for research, innovation and investment. 1) Increase in intake of foreign Students which currently stands at 1 of the total enrolment of the University. 2) Increase in intake of the part time enrolment programmes. 3) Increase in intake in ICST, RS and Education. 4) Running short courses during the long vacations. 5) Introduction of an MBA programme. 6) Aggressive promotional campaigns to attract more prospective students. 7) The introduction of Sandwich and Distance Learning Programmes. 8) Introduction of new attractive courses, and 9) Efficient utilisation of lecture halls to maximise the use of classroom capacity Figure 2: Revenue analysis by Faculties BUDGET Page 13

21 9.0 CAPITAL EXPENDITURE: Funds required for the University s capital and development expenditure expected to be financed from Fees revenue sums up to GH 630,488. These consist of Equipment, Computers and Software, Furniture, and Books requested by Departments and Faculties, and the campus development works outlined for the financial year. An indicative procurement plan has been prepared to serve as a guide in the purchasing arrangement. The details can be found in appendix 13 on page 49. The table below provides the detail breakdown: Table 16: Capital Expenditure by Faculty/Dept: SOFTWARE VEHICLE COMP F & F EQUIPMENT BOOK TOTAL NO. FACULTY/DEPT GH 1 EBA 3, , ,550 2 ICST - - 1,750 2, ,750 3 Religious Studies ,800 4 Education - - 2,050 1, ,600 5 PHAS - - 2,250 3,000 31,350-36,600 6 Part-Time School - - 2,250 1,250 1,150-4,650 7 School of Research ,050 8 Library ,720 14,150 90, ,820 9 CES , VC Office - - 3,150 1, , Registry 11,718-14,450-20,700-46, Finance Office - - 2, ,500-24, Fundraising & Development Office - - 2, ,500-11, Internal Audit 8,000-3, , Systems Administration - - 8,900 4,350 12,300-25, Chaplaincy - - 2,250 2,300 2,850-7, Computer Lab ,000-2,800-30, Guest House ,000 5,000-10, Development Works , General Education 37,500-50, ,500 60, ,850 30, ,600 90, ,488 NB: See appendix 11 (page 47-49) for the detail capital Expenditure requirement BUDGET Page 14

22 10.0 DEVELOPMENT PROJECTS: Construction of some of the phase 1 of the University s development works has begun. Projects under construction include the Administration Block and two clusters of the students hostels. The University secured a Medium Term Facility of GH 13.5 million from the Ghana Commercial Bank Ltd. GH 8.5 million of the Loan facility has been used to refinance the NIB Loan facility, whiles the remaining GH 5.00 million is to be used to complete the two Hostel clusters. The University is expected to contribute about GH 350,000 to complete the administration block. The University has also secured a Grant award of EUR 200,000 from the Jakob-Chistian Adam Foundation of Germany to continue construction works on two units of the Hostel cluster three (i.e. Cluster C 1 ) The University has spent a total of close to GH 7.15 million financed mainly from the medium term loan facilities we contracted from NIB and GCB respectively. The University will contribute about GH 4.0 million from its operating revenue towards campus development works and to pay off outstanding certificates due contractors and the payment of the annual interest on the GCB Medium Term loan. Construction is expected to continue in the fiscal year. Table 17: Summary of Ongoing Development Works: CONTRACT SUM (INC. PRICE ADJ) AMOUNT REQUIRED TO COMPLETE PROJECT No. PROJECT AMOUNT PAID 1 Classroom Block A & B 1,098, , ,000 2 Resource Centre 1,675,000 1,567, ,000 3 Administration Block 775, , ,780 4 Students Hostel 8,566,000 3,162,000 5,404,000 5 Staff Housing Units 1,359, , ,000 6 Professional Fees 668, , ,000 7 Other Capital Exp 908, , ,000 15,049,000 7,150,220 7,898,780 Note: See appendix 13 (page 38) for details. BUDGET Page 15

23 11.0 STAFF COST: The Staff Cost of the University is mainly Staff Salaries and allowances paid to teaching and administrative Staff of the University. staff cost for amounted to about GH 5.33 million compared with the budgeted amount of GH 5.72million, resulting in a positive variance of close to 4. This was mainly as a result of a shortfall in the additional staffing recruitment drive envisage in the fiscal year. Staff Cost is projected to be about GH 6.70 million in, representing an increase of about over the financial year. The upwards adjustment in staffing cost is mainly due to the additional staff requirement of the various faculties, departments and units and the consolidation of staff Emoluments and allowance earmarked for this financial year. staff cost estimate is about of the budgeted revenue and 75 of the budgeted operational expenditure for. The details can be found in table 18 below; Table 18: Staff Cost: Faculties/Department/Centres EBA 997,441 1,073, ,104,593 ICST 715, , ,571 RS 268, , ,849 Education 347, , ,077 PHAS 526, , ,462 Part-Time School 302, , ,536 CES 350, , ,446 SR & GS 122, , ,503 Library 167, , ,289 Hostel 25,807 28, ,727 Central Administration 1,507,776 1,303,722 (16) 1,660,358 Sub- 5,332,946 5,555, ,699,410 Other Staff Related Expenses 161,286 5,716,956 See Appendix 5 (page 40-41) for details of Staff Cost GENERAL EDUCATIONAL EXPENSES: A total of GH 681,847 was incurred in as compared with the GH 575,447 budgeted for the period, resulting in a negative variance of 16. This was mainly due to increases in staff official travels than anticipated in the budget. An amount of GH 899,929 has been budgeted for the financial year. The increase is as a result of anticipated payments relating to affiliation, reaccreditation and faculties staff training and development and IT related expenses. This amount constitutes 9.2 of the total revenue expected in which compares well with the University s benchmark of 10. The details can be found in table 19 below; Table 19: General Educational expenses on Educational Expenses 632, ,697 (18) 769, Travelling & Transport Expenses 36,938 20,800 (44) 40,720 5 Repairs & Maintenance Expenses 6,145 24, ,180 3 Utilities 6,247 12, ,560 1 Other General Expenses , , ,447 (16) 899, Note: See Appendix 6 (page 42) for details. BUDGET Page 16

24 13.0 LIBRARY EXPENSES: The University Library expenses (excluding Library Staff cost) consist of other recurrent expenditure directly related to Library activities. funds budgeted for these recurrent expenses for the fiscal year amounts to GH 65,773. This constitutes 0.68 of the total budgeted revenue. Library recurrent expenditure including staff cost budgeted for the period amounts to GH 292,062, representing about 2 of operating revenue compared with the benchmark of 5. The details are provided in table 20 below; Table 20: Library Expenses on Educational Expenses 1,544 24,736 1,502 51, Travelling & Transport Expenses 898 4, ,850 7 Repairs & Maintenance Expenses - 4, ,200 6 Utilities ,200 2 Other General Expenses 37,889 44, , ,331 78, , GENERAL ADMINISTRATIVE EXPENSES: The general administrative overheads (excluding admin Staff cost) is projected to be GH 976,597 for the financial year. This will represent about 10 of the budgeted revenue for the year. These expenses are projected to increase due to the anticipated increases in the prices of goods and services, vehicle running and maintenance cost during the fiscal year. The details can be found in table 21 below; Table 21: General Administrative Expenses: on Travelling & Transport Expenses 81,624 38,800 (52) 95, Vehicle Running Expenses 132,295 89,560 (32) 131, Repairs & Maintenance Expenses 22,304 22, ,521 3 Utilities 107, , , General Administrative Expenses 223, , , , , , Note: See Appendix 7 (page 43) for details MUNICIPAL SERVICES EXPENSES: municipal services expenses were 13 above the budgeted amount for fiscal year mainly due to increases in security related services. It is envisaged that sanitation and security activities will increase marginally as student numbers increases. A total of GH 103,158 is estimated to cover municipal related expenses for financial year. This represents about 1.05 of operating income and expenses respectively for the fiscal year. The table below gives an overview. Table 22: Municipal Services Expenses: on Basic Rates Grounds & Gardens Expenses - General , Security Services Expenses 86,197 70,394 (18) 87, Sanitation Expenses 11,460 11,313 (1) 13, Waste Management Expenses 885 1, , ,005 85,032 (14) 103, BUDGET Page 17

25 16.0 FINANCIAL CHARGES: Financial charges were marginally higher than the budget for financial year by about 1. The projections for financial is estimated at GH 117,186 (i.e. about 1.2 of operating income) as shown in table 23 below. Table 23: Financial Charges: on Interest on Bank Overdraft 10,062 11, , Interest on Other Loan 52,355 51,796 (1) 77, Bank Charges 20,167 17,900 (11) 24, ,585 81,525 (1) 117, HOSTELS: The University runs a number of supervised Hostel Facilities for resident students. Currently, there are 3 Hostels namely; Sacred Heart, SSNIT, St Mary with about 88 resident students. The University plans to maintain the existing number of Hostels in. These hostels are expected to accommodate a total of 202 students this academic year. Expected Hostel revenue is projected at GH 171,700 representing an increase of about 74 over financial year. Hostel related expenses (excluding Hostel furniture and equipment) is projected at GH 123,909. The Hostels have been allocated GH 123,909 for. The details are as shown in tables 24 and 25. Table 24: Hostels Revenue: on Accommodation 72, ,500 (40) 121, Water & Electricity 24,075 36,150 (33) 40, Deposit 1,630 2,410 (32) 10, , ,060 (38) 171, Table 25: Hostels Emoluments & Related Expenses: on Staff Emoluments & Allowances 25,807 28, Travelling & Transport Expenses , Repairs & Maintenance Expenses 5,040 11, , Utilities 39,576 53, , Municipal Expenses 20,645 7,773 (62) 17, General Administrative Expenses ,441 31,303 6, , , , GH i) ed Hostel Revenue/Student 850 ii) ed Hostel Cost/Student 613 iii) Surplus/Student 237 of Surplus on Hostel Revenue/Student 28 Strategies to enhance Hostel Revenue Surplus The following recommendations have been proposed to enhance the surplus i) Completion of the University Hostel clusters to relief the University of the exorbitant Hostel rent. ii) An upward review of the Hostel Charges. BUDGET Page 18

26 18.0 FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION (EBA): The Faculty runs a four (4) years Degree programmes in Economics and Business Administration on full and part time bases, with specialisations in Economics, Accounting and Management and Banking and Finance. There are plans to introduce options in Marketing and Human Resource Management in the coming years. The Faculty s projected student enrolment is 1,498 (i.e. about 30 increase over Academic year) with an estimated FTE equivalent number of students of 1,498. An amount of GH 1,206,810 has been allocated to the Faculty for the fiscal year ending 30 th June, GH Faculty FTE Cost per Student 1,160 FTE Number of Students 1,498 Optimum Allocation (FTE Cost per Student x FTE number of Student) 1,737,680 Tables 26, 27 and 28 respectively provide the details below; Table 26: EBA Revenue on Tuition Fees 1,944,215 2,432,100 (20) 2,620, Registration & Admission Fees 260, , , ,204,330 2,656,355 (17) 2,872,030 NB: See Appendices 8 and 9 (pages 43 and 44) for details. 100 Table 27: EBA Staff Emoluments & Administrative Expenditure on Staff Emoluments & Allowances 997,441 1,073, ,104, Educational Expenses 47,322 61, , Travelling & Transport Expenses 3,528 1,900 (46) 4, Repairs & Maintenance Expenses 67 2,183 3,158 2, Utilities 1,262 4, , Municipal Expenses 9,204 11, , Other General Expenses 1, , ,060,356 1,155, ,199,260 Table 28: EBA Capital Expenditure 100 on Computer & Accessories - 13, Furniture & Fittings - 5, , Equipment - 5, Software - 10, , , , NB: See Appendix 11 (page 47-49) for detail. GH i) ed Revenue per Student 1,917 ii) ed Standard Cost per Student 1,160 iii) Revenue Surplus/(deficit per Student 757 of surplus on Revenue per Student 39 Strategies to enhance revenue surplus The following recommendations could be considered to enhance the revenue surplus. iii) Increase in intake of Non Ghanaians (International) Students in the Faculty. iv) Running short courses during the Long vacation periods. v) Writing proposals for Funding for research activities. vi) Introduction of an MBA postgraduate degree programme. BUDGET Page 19

27 19.0 FACULTY OF INFORMATION & COMMUNICATION SCIENCE & TECHNOLOGY (ICST): The Faculty currently runs a full and part time four year BSc Degree in Computer Science, Actuarial Science, Mathematics with Finance and Mathematics with Economics. There are plans to introduce degree programmes in Software engineering, Network engineering and Business information system in the coming years. The Faculty currently has a fulltime student population of 195. The Faculties projected fulltime student enrolment is 235 (i.e. about 20 increases over Academic year) with an estimated FTE equivalent number of students of 241. An amount of GH 978,973 has been allocated to the Faculty for the fiscal year ending 30 th June, Tables 29, 30, and 31 below provide a detail description. GH Faculty FTE Cost per Student 4,525 Faculty FTE Number of Students 241 Optimum Allocation (FTE Cost per Student x FTE number of Student) 1,090,525 Table 29: ICST Revenue: on Tuition Fees 311, ,900 (33) 437, Registration & Admission Fees 44,625 42, , , ,855 (30) 477,675 NB: See Appendices 8 and 9 (pages 44 and 45) for details. 100 Table 30: ICST Staff Emoluments & Administrative Expenditure: on Staff Emoluments & Allowances 715, , , Educational Expenses 40,730 46, , Travelling & Transport Expenses 1,998 1,900 (5) 4, Repairs & Maintenance Expenses - 2, , Utilities 665 2, Municipal Expenses 3,746 2,742 (27) 3, Other General Expenses , , , , Table 31: ICST Capital Expenditure: on Computer & Accessories - 1, , Furniture & Fittings - 3, , Equipment - 8, , , NB: See Appendix 11 (page 47-49) for detail. GH i) ed Revenue per Student 2,033 ii) ed Standard Cost per Student 4,525 iii) Revenue Surplus/(deficit) per Student (2,492) of Revenue shortfall per student on Revenue per Student (123) Strategies to lower Revenue shortfall The Revenue shortfall as a percentage of Revenue required per student is 31. The Faculty is therefore advised to take the following strategic measures to narrow the shortfall in revenue. i) Increase in intake of both Ghanaian and International Students ii) Offer special courses during Long vacation period and commercialisation of students project works. iii) Writing of proposals for Funds to finance Capital Investments BUDGET Page 20

28 20.0 FACULTY OF RELIGIOUS STUDIES (RS): The Faculty of Religious Studies runs a full time BA degree programme in Religious Studies. The Faculty plans to introduce specialised options in the coming years. The Faculty currently has a student population of 26. The Faculties projected student enrolment is 35 (i.e about 35 increase over the Academic year) with an estimated FTE equivalent number of students of 34. An amount of GH 445,015 has been allocated to the Faculty for the fiscal year ending 30 th June, Tables 32, 33 and 34 respectively provide the detail below; GH Faculty FTE Cost per Student 12,875 Faculty FTE Number of Students 34 Optimum Allocation (FTE Cost per Student x FTE number of Student) 437,750 Table 32: RS Revenue: on Tuition Fees 45,100 43, , Registration & Admission Fees 5,490 3, , ,590 47, ,225 NB: See Appendices 8 and 9 (pages 44 and 45) for details. 100 Table 33: RS Staff Emoluments & Administrative and Expenditure: on Staff Emoluments & Allowances 268, , , Educational Expenses 19,190 36, , Travelling & Transport Expenses 55 1,900 3,355 2, Repairs & Maintenance Expenses - 2, , Utilities Municipal Expenses 5,081 5, , Other General Expenses (100) 4, , , , Table 34: RS Capital Expenditure: on Computer & Accessories - 3, Furniture & Fittings - 1, Equipment - 8, , , NB: See Appendix 11 (page 47-49) for detail. GH i) ed Revenue per Student 1,949 ii) ed Standard Cost per Student 12,875 iii) Revenue Surplus//(deficit) per Student (10,926) of Revenue shortfall per student on Revenue per Student (561) Strategies to Lower Revenue Shortfall i) Intensification of promotional campaigns by the Faculty and management as a means to increase student intake. ii) Introduction of specialised degree options to attract students potential students. iii) Writing proposals for Funding for the Faculty s research activities. BUDGET Page 21