Losses

Definition of Losses

A loss shall be considered to have occurred when the University is deprived of the use of any University trust moneys, property, stores or any other financial or physical asset otherwise than in the normal course of the University's business.

Duty of the Head of Department

When a loss as in this regulation is discovered, the Head of Department shall investigate the circumstances of the loss;

  1. to ascertain the extent and amount of the loss

  2. to determine whether control or operational arrangements need to be improved in order to prevent the occurrence of similar losses in the Department or in any other department; and

  3. to determine whether any offence or other fault of a public officer has been revealed by the loss.

Disclosure of Offences

The investigation of a loss does not constitute a disciplinary enquiry and if the investigation reveals that an offence has been committed, it shall be dealt with separately by the;

  1. Ghana Police Service, if a criminal offence is involved

  2. Disciplinary Committee, if a breach of discipline is involved.

Duty of the Vice-Chancellor

The Vice-Chancellor shall;

  1. ensure that adequate investigation is made of a loss

  2. direct action to be taken and ensure that action is taken in;

    1. rectification of systems

    2. discipline of staff, and

    3. recovery of a loss

  3. authorise disposal of a case of loss after complying with paragraphs (a) and (b) by;

    1. write-off

    2. allowing transactions to stand charged, or

    3. verifying full recovery, as the case may be.

Categories of Loss

The categories of loss to which this part relates are;

  1. cash deficiency which is a deficiency of cash or other negotiable instrument, whether it arises from a simple cash shortage or from the use of fictitious entries or vouchers to conceal the existence of a deficiency

  2. revenue losses which may arise from;

    1. uncollectable revenue when debts due, the University cannot be collected by reason that the debtor cannot be traced or is insolvent, and

    2. loss of revenue, arising from failure to assess or collect in circumstances which preclude subsequent assessment or collection, and include any loss of interest caused by delay in making payments into the appropriate University funds or from the making of irregular advances.

  3. expenditure losses which may arise from;

    1. irrecoverable overpayments, when an excess payment has been made by error and recovery cannot be effected because the recipient cannot be traced or is otherwise incapable of making repayment

    2. nugatory payments, which arise in circumstances such as, the incurrence of a penalty in which the University has been legally obliged to make payment, but for which no corresponding receipt of goods or services has been derived

    3. excess expenditure, which is a special case of Improper Payment which arises when payments have been made in excess of approved estimates without the prior authority of the University Council, and

    4. fraudulent payments which arise from transactions which involve a breach of the criminal code, by the use of falsified documents or certificates to steal money or other property belonging to the University.

  4. Store and Equipment Losses which may arise from;

    1. deficiencies, including fraudulent issues from stock and issues without proper evidence of use

    2. damage or deterioration of goods in stock.

Occurrence of Losses

  1. The occurrence of any losses, cash and property, through theft, fraud or negligence by a staff shall be reported in writing by the Head of Department/Section/Unit/Centre to the Director of Finance with copies to the Vice-Chancellor, Registrar and the Director of Internal Audit

  2. In discharging this responsibility, it is not sufficient to report the loss or damage; it is the duty of the Head of the Department to endeavour to explain why and how the loss or damage arose, and who was responsible for the loss. It is also the duty of the Head of Department to give his recommendations for avoidance of a similar recurrence

  3. A Head of Department/Section/Unit/Centre who cannot submit a convincing report must be prepared to accept blame for his/her negligence of duty to ensure proper care and custody of University property

  4. Before are commendation is made to the Council, a full investigation shall be conducted into the loss by the Directorate of Internal Audit.

Investigation of Every Case of Loss

  1. A Head of Department shall cause an investigation to be conducted into every reported case of loss, and where the Head of Department is implicated in the loss, the Vice-Chancellor or the University Council shall be the appropriate authority to cause investigation to be conducted

  2. In the case where the Vice-Chancellor is involved, the investigating authority shall be the Minister responsible for Education.

Assistance to the Police

If a loss involves a criminal offence, the investigating authority shall liase with the Police investigators and shall give them such assistance as they require and records taken into custody by the Police may be subject to examination by the investigating authority.

Recommendations

On the basis of the findings of the investigation, the investigating authority is required to make recommendations as to the further disposal of the case by;

  1. initiation of disciplinary proceedings

  2. the development of remedial administrative or accounting action, or

  3. taking any other action as is appropriate considering the circumstances of the case.

Criminal Offence

  1. If the report of an investigating officer shows that a criminal offence, other than the offence already reported has been committed, the facts of the case shall be put before the Police

  2. A disciplinary action or proceedings for recovery of a loss shall not be taken against an officer facing criminal charges until the court has dealt with the case or the Police have formally indicated that they do not intend to proceed against the officer concerned.

Disciplinary Offence

Where an officer has committed an offence which does not involve any criminal offence, disciplinary proceeding shall be instituted by the Vice-Chancellor.

Disciplinary Proceedings to be completed

Disciplinary proceedings arising from a case of loss shall be completed before the investigating authority approves final disposal of the case.

Defective Systems

If the report of the investigating authority indicates that systems currently in operation, including those for the training of staff are defective, the Vice-Chancellor shall consult with the Director of Finance, to consider measures for rectification.

Offer to Repay

If an officer freely accepts financial responsibility for a loss, the officer may offer to pay the amount back into the University's account, in which case the authority responsible for disposal of the loss may;

  1. accept the offer to repay, if the disciplinary offence is not serious enough to necessitate further proceedings against the officer

  2. accept the offer in mitigation of the offence with the repayment being considered as a partial fulfilment of any penalty that may be imposed.

Custody of University Property

  1. Every employee of the University is personally responsible for University property under his/her custody

  2. Every Head of Department/ Section/Unit/ Centre is directly responsible for the general supervision and control of the stores and the store accounts of his/her Department/ Section/Unit/Centre and for the due performance of duties in relations to items by his/her subordinate staff.

Writing off of Losses

  1. Substantial losses and shortages of University cash and property may only be written off on the authority of the Council

  2. Recommendations to the Council to write off any losses shall be made in a report by the Director of Finance to the Finance Committee. Any such report shall be supported by the necessary facts.

Failure to Report Loss

Failure to report a loss within one week of its occurrence may result in disciplinary action being taken against the staff concerned.

Irrecoverable Debts

At the end of every financial year, the Director of Finance shall prepare a schedule of bad and doubtful debts to be submitted to Council for a possible write-off. Such a list shall be verified by the External Auditors before it is submitted.

Debts Owed by Employees Leaving the University

  1. When an employee is leaving the employment of the University (whether on retirement, resignation, dismissal, expiry of contract or termination or otherwise) he/she will complete a Clearance Certificate which must be submitted to the Director of Finance. The Director of Finance shall inform the employee, in writing, of the total sum owed by him/her to the University. Where such debts against an employee arose out of surcharges, the University may take such action as it deems fit to recover them. In the case of normal loans/advances the Director of Finance shall request the officer/employee to state the arrangements he/she proposes to make for the repayment of the amount either within one month or before he/she leaves the services of the University whichever is earlier

  2. If a satisfactory reply is not received from the employee by the stipulated date, the Director of Finance shall recover the debt(s) from the salary and other sums owing to the said employee. If his/her entitlements fall short of his/her total indebtedness and if full repayment of that balance is not made within one month from the date of his/her final departure, the University shall institute legal proceedings against him/her for the recovery of the full amount due.

  3. The Director of Finance shall ensure that no payments, including salary, are made to an employee who is leaving the service of the University until the Director of Finance has marshalled the employee's entitlements against his/her indebtedness.