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Approved Budget 2007/08 The Association's approved Budget for 2007/08 was $5,150,747 for income with total expenditure equal to anticipated income ($5,150,747). FINANCIAL PERFORMANCE REPORT Performance for 2007/2008 Financial Year The major assumptions relating to the 2007-08 Budget were: • The Association would receive at least 80% of subscriptions invoiced from members • Programmed activities would draw fully on grants awarded for expenditure and therefore receive all anticipated support contributions • Excess expenditure would be covered by the provision for contingency • Project income/expenditure was apportioned to match the AAU year AAU ANNUAL REPORT 2007-2008 T his report presents an overview of the financial performance of the Association's in implementation of its activities for reporting year. The year under review saw the appointment of a substantive Head of Finance, the successful migration from the Peachtree Accounting Software to the Pegasus AccPac Accounting Package, the additional implementation of financial controls and procedures and the successful introduction of treasury management procedures at the AAU. An important schedule for the Head of Finance in 2008/09 will be to review and update the AAU's accounting manual to incorporate the new financial controls and the new treasury management procedures that have been introduced. The reporting currency is US dollars ($). Accounts held in the local currency, New Ghana Cedi (GH¢) have been converted at the exchange rate prevailing at the time of transaction. The exchange rate in July 2007 was $1: GH¢ 0.925 and in December 2007 $1: GH¢ 0.964. The current exchange rate from Standard Chartered Bank, the Association's bankers is $1:GH ¢0.98. Introduction This interim report reviews the Association's capital and operational spending performance for the financial period July 2007 June 2008 against the approved budget for the period. The reporting currency is US dollars ($). Accounts held in the local currency, New Ghana Cedi (GH¢) have been converted at the exchange rate prevailing at the time of transaction. The exchange rate in July 2007 was $1: GH¢ 0.925 and in December 2007 $1: GH¢ 0.964. The current exchange rate from Standard Chartered Bank, the Association's bankers is $1:GH ¢0.98. Between the months of July 2007 and March 2008, actual expenditure figures have been used. Projections based on expected income and expenditure trends and programmed activities have been used for the three-month period April-June 2008. Summary Outturn for Period Ending 30th June 2008 st The year's financial performance is based on actual income and expenditure to 31 th March 2008 and projected income/expenditure to 30 June 2008. Income for the period is $3,499,224 and total programme, operational and capital expenditure is $3,184,558. This has resulted in a projected surplus income for the year of $314,666 representing the overall under spends on various budget lines. The summary outturn for the period under review is shown in Table 1 Table 1: Summary Outturn for Period Ending 30 June 2008 (Unaudited) Abridged Operating Statement for Year Actual for 2007/08 US$ Total Income 3,499,224 Expenditure: Research & Programmes 2,139,232 Communication & Services 229,310 Administration 776,180 Capital 39,836 Total Exp 2007/08 3,184,558 Balance 2007/08 314,666 Restricted Grants for Programmes Income from restricted grants is based on programme activities and claims. Income due for 2007/8 was $3,977,457 and what was actually received for the year was $2,828,531. Amounts due and received from respective donors are shown in Table 2. Table 2: Amounts Received from Donors 2007/8 Institution Amt Received US$ ACBF 547,980 SIDA Lusaka 359,279 Ford Foundation 212,785 ADEA 291,230 Partnership for HE & IDRC 149,729 World Bank 477,500 DFID 415,650 SIDA–Research Cooperation 332,378 Govt of Ghana (In kind) 42,000 TOTAL 2,828,531 AAU ANNUAL REPORT 2007-2008 36 37
Table 3below shows grants received from 2001/2-2007/8. This schedule is represented in Fig 4. There has been a 90% rise in the level of grants claimed and received from donors for project activities over the seven-year period. After falling levels of grant income in the period 2001/2 - 2003/4 the period 2004/5-2007/8 saw a rising trend in grants claimed and received. Table 3: Schedule of Restricted Grants Claimed and Received 2001/2 2007/8 MANAGEMENT INFORMATION SYSTEM AAU ANNUAL REPORT 2007-2008 Year Grants Received in Yr US$ 2001/02 1,495,934 2002/03 1,138,637 2003/04 861,543 2004/05 1,589,311 2005/06 1,292,722 2006/07 1,426,564 2007/08 2,828,531 Fig.1: Grants Claimed and Received 2001/2-2007/8 Implementation of the New Management Information System he year under review saw a change in software used by the Association. A move was made from 'Peachtree Accounting Software' to 'Pegasus AccPac'. Work Tcommenced in mid September 2007 and started with agreeing the Chart of Accounts with the Consultants. COREVIP 07 disrupted progress but by January 2008 all opening balances and information had been coded and captured onto the new system. From January 2008, work was commenced using the new system. Initial teething problems are being overcome with assistance from the Consultants. The system is still being streamlined to meet AAU needs. A date is to be arranged for Professional Staff to receive an over view of the new system. AAU ANNUAL REPORT 2007-2008 3,000,000 Grants Received 2001/2-2007/8 A major challenge, which has been discussed, has been the limited manpower in the Finance Department and combining the MIS implementation project with regular activities at the AAU. A proposal to address the manpower issues is yet to be submitted for the Secretary General's consideration. Amount(USD) 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 20 01/02 20 02/03 20 03/04 2004/05 2005/06 20 06/07 20 07/08 The new operational system demands that new financial procedures be written and financial policies reviewed and updated. This will be part of the work plan for the Head of Finance in 2008/9. Financial and Non-financial Controls Financial controls are standards management establishes within a financial process that are intended to ensure the accuracy, timeliness, and completeness of financial data as well as compliance with policies and regulations. In addition, financial controls help to prevent or detect erroneous or inappropriate transactions. The goals of having a strong system of financial controls include to: • Ensure reliable financial data • Safeguard assets and records • Encourage adherence to prescribed policies & regulations In the AAU, the main additional controls, financial and non financial, introduced in the year under review include the following: • A scheduled timetable for the department's financial activities. This was to allow adequate checks on data to be processed and to ensure the accuracy and completeness of transactions • Regular spot checks on petty cash • Confirmation of marriage and birth certificates for the processing of staff benefits • Expenditure payments to be made only on the receipt of original invoices • Regular reviews of vehicle log books • Insistence of VAT receipts and invoices where VAT has been charged 38 39
Page 1 and 2: Association of African Universities
Page 3 and 4: Contents C o n t e n t s AAU ANNUAL
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Page 7 and 8: Professor Olusola Oyewole, former P
Page 9 and 10: The AAU web site was updated with a
Page 11 and 12: successfully. Ten requests were mad
Page 13 and 14: AAU ANNUAL REPORT 2007-2008 Interna
Page 15 and 16: May 4 - 5 - ADEA/WGHE Steering Comm
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Page 19: - Prof. Olusola OYEWOLE, previously

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