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Below is the complete set of Financial Statements of Take-Home University (THU), a Public University of...

Below is the complete set of Financial Statements of Take-Home University (THU), a Public University of Ghana, issued on 1st May 2020.

Statement of Financial Performance for the Year Ended 31 December, 2018

Revenue

GOG grant

Internally Generated Funds Donations and other income

Expenditure

Compensation for employees Goods and services

Social benefit

Interest

Capital expenditure (CAPEX) Other expenses

Net Operating Result – Deficit

Notes 2

3 4

5 6

1,540,000,000 14,427,492,000 9,278,258,000 25,245,750,000

8,385,270,000 2,238,083,000 1,720,000 1,720,000 25,542,515,000 79,100,000

36,248,408,000 (11,002,658,000)

Statement of Financial Position as at 31 December 2018

Current Assets

Cash and cash equivalent Receivable (468,050 -10,000)

Inventory

Liabilities and Fund

Payable 20% Loan

Accumulated fund

294,233,000 458,050,000

155,254,000

907,537,000

Notes

3

7 696,325,000 8,600,000 704,925,000

8 202,612,000 907,537,000

Cash Flow Statement for the Year ended 31st December 2018 Cash Inflows

GOG grant

Internally Generated Funds Donations and other income

Cash Outflows

Compensation of employees Goods and services

Social benefit

Interest

Capital expenditure (CAPEX) Other expenses

Increase in Cash and Cash Equivalent Cash and Cash Equivalent as 1/1/18 Cash and Cash Equivalent as 31/12/18

NOTES TO THE FINANCIAL STATEMENTS Accounting policy

1,540,000,000 14,427,492,000 9,278,258,000 25,245,750,000

6,385,270,000 1,989,112,000 1,720,000 1,720,000 15,542,500,000 79,100,000 23,999,422,000 1,246,328,000 -952,095,000 294,233,000

a) Basis of accounting

The financial statements are prepared on accrual basis of accounting.

b) Inventory valuation

Inventory is valued at lower of cost and net realisable value.

c) IPSAS

The financial statements are prepared in compliance with the IPSAS and all relevant financial legislations.

Internally Generated Fund

Fees income Consultancy fees Admission forms

1. Employees Compensation

Allowance

Establish post

Non establish post

Books and Research allowance Project work allowance Superannuation

End of service benefits

Books and Research allowance arrears

4,575,622,000 655,600,000

9,196,270,000 14,427,492,000

856,670,000 5,312,430,000 1,253,600,000

150,765,000 48,500,000 278,500,000 298,040,000 186,765,000 8,385,270,000

4

2. Use of Goods and Services

Legal cost Consultancy cost

Seminar cost

Training and Workshop Cost

Utilities

Increase in Provision for doubtful debt Opening inventory

Closing inventory

Capital expenditure

Property, plant and equipment Work in Progress

Other expenses

Trial balance Sponsorship

Payables

Consultancy cost Book & Research All. Interest payable

Tax withholding

3. Accumulated Fund

Balance at start

Net operating result

Required:

25,059,000 800,000,000 500,000,000 104,000,000 560,053,000

5,060,000 399,165,000

(155,254,000) 2,238,083,000

17,292,500,000 8,250,015,000 25,542,515,000

71,000,000 8,100,000 79,100,000

182,840,000 234,500,000 186,765,000

1,720,000 90,500,000 696,325,000

11,205,270,000 (11,002,658,000)

202, 612,000

a) Using the Qualitative Characteristics (QCs) of General-Purpose Financial Report as a Framework, evaluate the information usefulness of the set of financial statements presented by the THU.

b) Based on the relevant IPSASs, explain the significant observations you have made about the financial statements of THU and suggest improvement, if any.

Expert Solution

ekkarill92 answered 2 years ago

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