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
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.