Tamale Technical University PAC Reward: Surplus Jumps from ₵1.7M to ₵13M in One Year

Explore Tamale Technical University’s remarkable financial recovery, commended by Ghana’s Public Accounts Committee (PAC). This case study highlights effective financial management strategies for public universities.

Introduction

Tamale Technical University (TTU), a leading technical institution in northern Ghana, has set a benchmark in public sector financial accountability. On November 6, 2024, TTU representatives appeared before Ghana’s Public Accounts Committee (PAC) and received high praise for transforming its operating surplus from ₵1.7 million to ₵13 million within one year. This achievement stemmed from prompt implementation of Auditor-General recommendations, showcasing disciplined financial practices amid challenges faced by many Ghanaian universities.

The PAC’s commendation underscores TTU’s role as a model for university financial management in Ghana. Led by Vice-Chancellor Prof. Bashiru Imoro Saeed, the university’s finance team—including the Internal Auditor, Director of Finance, and Registrar—demonstrated transparency and prudence. This event highlights how adherence to fiscal guidelines can lead to sustainable growth in higher education institutions.

Analysis

TTU’s financial turnaround provides a pedagogical blueprint for public institutions navigating fiscal constraints. The university not only rectified audit discrepancies but also amplified its internally generated funds (IGF), covering nearly one-third of government allocations.

Financial Metrics Breakdown

PAC Chairperson Abena Osei-Asare spotlighted TTU’s improved current ratio, rising from 2.6 times to 7.6 times coverage of short-term liabilities. This metric indicates robust liquidity, enabling the university to meet obligations without strain. The surplus surge—from ₵1.7 million to ₵13 million—reflects efficient revenue utilization and cost control.

• Government Funding vs. IGF: With ₵100 million in government subventions, TTU generated nearly ₵30 million internally, demonstrating self-reliance.
• Project Expenditure Discipline: Capex spending aligned precisely with receipts, avoiding overruns.
• Audit Compliance: Full implementation of Auditor-General directives resolved prior irregularities.

Context in Ghana’s Public University Landscape

Ghana’s tertiary sector often grapples with deficits due to rising student numbers and stagnant funding. TTU’s success contrasts this trend, offering insights into PAC accountability processes. The Public Accounts Committee reviews Auditor-General reports under Article 103 of Ghana’s 1992 Constitution, ensuring public funds’ judicious use.

Summary

In summary, Tamale Technical University’s PAC reward celebrates a fiscal leap from ₵1.7 million to ₵13 million surplus, driven by audit compliance and prudent management. PAC Chairperson Abena Osei-Asare urged TTU to sustain these gains, positioning it as a learning model for other Ghanaian universities. This milestone reinforces the importance of financial discipline in public higher education.

Key Points

Practical Advice

TTU’s story offers actionable strategies for financial management in Ghana universities. Institutions can replicate this by prioritizing audit responsiveness and revenue diversification.

Steps for Financial Improvement

1. Implement Audits Swiftly: Address Auditor-General findings within timelines to build PAC trust.
2. Boost IGF Streams: Enhance fees, partnerships, and grants—TTU’s ₵30M model shows feasibility.
3. Monitor Key Ratios: Track current ratio and surplus to ensure liquidity above 2x.
4. Align Expenditures: Match capex to inflows, preventing deficits.
5. Leadership Accountability: Vice-chancellors should spearhead finance teams in oversight committees.

Pedagogically, universities should integrate financial literacy into staff training, fostering a culture of accountability. Tools like zero-based budgeting can further optimize resources.

Points of Caution

While TTU’s progress is commendable, sustainability demands vigilance. Over-reliance on IGF could strain students amid economic pressures. PAC emphasized continuity: “Whatever it is that you need to do to ensure you maintain and improve upon this result… do it well.”

• Avoid complacency—annual audits must evolve with risks.
• Monitor inflation impacts on cedis-denominated surpluses.
• Balance growth with infrastructure needs to prevent future shortfalls.
• Ensure equitable IGF without compromising access for underprivileged students.

Comparison

TTU’s performance stands out against peers. Many Ghanaian universities report persistent deficits in PAC hearings, per Auditor-General reports. For instance, while some institutions struggle with negative surpluses, TTU’s 7.6x current ratio exceeds typical benchmarks (2-3x for healthy public entities).

This comparison, drawn from public PAC records, illustrates TTU’s edge in Ghana university financial discipline.

Legal Implications

TTU’s compliance aligns with Ghana’s legal framework for public finance. The Public Financial Management Act (Act 921, 2016) mandates audit adherence and PAC oversight. Non-compliance risks surcharges under Section 82. TTU’s proactive steps avert such penalties, reinforcing Article 179 of the Constitution on public officer accountability. For universities, this ensures funding continuity and reputational integrity.

No infractions were noted in TTU’s case, but the PAC reward signals exemplary adherence, potentially influencing future allocations via the Internal Generated Funds (IGF) policy.

Conclusion

Tamale Technical University’s PAC reward for surging from a ₵1.7 million to ₵13 million surplus exemplifies transformative financial turnaround in Ghana universities. By embracing Auditor-General guidance and prudent practices, TTU not only stabilized finances but inspired peers. As PAC Chairperson Abena Osei-Asare noted, “Your figures are speaking… Well done.” This case urges sustained effort, promising enhanced educational outcomes through fiscal health. Other institutions should study TTU’s model to foster accountability across Ghana’s tertiary sector.

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