Generation of IGF and its Effects on Financial Performance of Universities: Evidence from Kumasi Technical University in Ghana
Abstract
The study assessed the generation of Internally Generated Fund( IGF) and its effects on financial performance of Universities, with evidence from Kumasi Technical University in Ghana. The objectives of the research work were to identify the sources of IGF; whether Kumasi Technical University has new strategies in the generation of IGF; and whether IGF of Kumasi Technical University was able to meet its expenditure. The research design was descriptive. Sixty- three out of seventy questionnaires administered were retrieved. Secondary data were extracted from relevant reports/articles, journals, and other documents. Convenience and purposive sampling were used to select respondents. Findings were that the largest contributor to IGF was fees; and actual IGF fell short of actual expenditure. The conclusions were that fees were the major source of funds to Public Tertiary Institutions; Government support was mainly in the form of wages and salaries and capital projects through Ghana Education Trust Fund (GETfund); and wages and salaries were the highest expenditure though directly paid by government. Staff motivation, assigning competent staff to revenue avenues, seeking approval from the Minister of Finance to do investments were some recommendations made on IGF and its effects on financial performance. Others were that the Government of Ghana (GoG) should continue to pay wages and salaries; the Institution should adhere to the tenets of public procurement; sponsor staff locally; and these will help cut down waste and reduce costs.
Keywords: Generation; IGF; Financial Performance; Universities; Kumasi Technical University
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