1. Attached is the 2018 Annual Financial Statements of University of Ghana. For the sake of this assignment , we assume that the financial statements are for the year ended 31 December 2021. Thus the Statement of Financial Performance is for the year ended 31 December 2021; the Statement of Cash Flows is for the year ended 31 December 2021; and the Statement of Financial Position is as at 31 December 2021.

2. The revenue estimates for the University extracted from the Budget Guidelines for the preparation of 2022 Budget are as detailed below:

	Revenue Category	Amount [GHS’000]
1	Government Subvention	480,000
2	Research grants	180,000
3	Bursaries and Financial Aids	6,000
4	Academic Fees	240,000
5	Other students fees	48,000
6	Investment income	24,000
7	Other IGFs	96,000

1. The Government subventions are to be released on quarterly basis in January 2022, April 2022, July 2022 and October2022
2. The Donations and Grants are expected in April 2022
3. 80% of the academic fees are expected to be received in January 2022 and the remaining 20% are expected at the beginning of the second semester in May 2022
4. Other students fees, Investment income and Other IGFs are expected to flow evenly (on monthly basis) throughout the year.

3. The expenditure ceilings extracted from the 2022 Budget preparation guidelines show the following:

	Expenditure Category	Amount [GHS’000]
1	Compensation	384,000
2	Goods and Services	228,000
3	Capital Expenditure	200,000
4	Research costs	180,000
5	Bursaries and financial aids	6,000
6	Finance costs	1,200

1. The Compensation and Goods & Services are expected to accrue evenly on monthly basis.
2. The Procurement Plan of the University indicates the following payments in respect of capex: GHS’000

February 2022 20,000

June 2022 120,000

September 2022 50,000

November 2022 10,000

Iii Research costs, Bursaries, and finance costs are expected to accrue evenly on monthly basis.

4. Based on the existing Property, plant and equipment (including infrastructure) and the additional acquisitions planned for the year 2022, Depreciation and amortization expenses for 2022 are estimated at GHS30,000,000 and GHS120,000 respectively These are assumed to accrue evenly on monthly basis.

5. There will be no addition or disposal of Investment properties. The University adopts fair valuation model in measurement of Investment properties. It is estimated that the fair value of the University’s investment properties as at 31 December 2022 would be about GHS55 million. The fair value changes should be dealt with in line with IPSAS 16

6. The Non-current deposits and Quoted Securities of the University are not expected to experience any movements during 2022. There would be no additional deposits and accrued interests would be withdrawn and utilized as part of the Investment income.

7. The amount due from related parties and Investment in Associate would also not experience any movement in 2022

8. The Current assets items (apart from Cash and Cash equivalents) would not experience any movements in 2022. It is expected that values of inventories purchased and the consumption would coincide,; receivables from exchange and non-exchange transactions would approximate recoveries during 2022.

9. Balances of current and non-current liabilities would not experience any significant movements in 2022.

10. The equity items [apart from the Accumulated fund] would not experience any significant movements in 2022.

Required

1. Prepare Monthly Cash Flow Forecast [in columnar form] for the year ending 31 December 2022
2. Prepare the budgeted statement of financial performance for the year ending 31 December 2022
3. Prepare the budgeted statement of financial position as at 31 December 2022

Answer rating: 100% (QA)

a MONTHLY CASH FLOW STATEMENT FOR 2022 Particulars January February March April May June INFLOWS Government Subvention 120000 120000 Research Grants 1... View the full answer