The audited financial statements by the Auditor-General for Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, for the year ending December 31, 2022, reveal a mixed financial performance.

The University concluded the year with a surplus of GH¢92,580,223, a significant decline of 56.2% compared to the surplus of GH¢211,512,558 recorded in 2021.

Total income for the University increased by 12.4%, reaching GH¢900,534,227 in 2022, up from GH¢801,364,263 in 2021.

This increase was primarily driven by a rise in academic fees, other charges, and miscellaneous income.

However, total expenditure rose by 37.0% to GH¢807,954,004 in 2022 from GH¢589,851,705 in 2021, largely due to an increase in employee compensation.

As of December 31, 2022, the University's financial position shows a 6.6% increase in non-current assets to GH¢2,190,674,039, attributed to additions to property, plant, and equipment.

Current assets also saw a rise of 10.1%, amounting to GH¢455,346,085, up from GH¢413,594,788 in 2021, primarily due to an increase in receivables.

Current liabilities increased by 54.5% to GH¢169,825,178 in 2022, up from GH¢109,889,622 in 2021, mainly due to an increase in payables.

Non-current liabilities rose by 12.3% to GH¢234,734,625 in 2022, up from GH¢209,048,556 in 2021, primarily due to provisions made towards the payment of ex-gratia to the staff.

The University's current ratio declined to 2.7:1 in 2022 from 3.8:1 in 2021, but it still indicates that KNUST is capable of meeting its short-term financial obligations.

A notable issue highlighted in the report is the overdue rental charges from private hostel developers and commercial entities.

The University sub-leased part of its land to three private hostel developers and two commercial entities, but these entities have not paid their rental charges totalling GH¢1,249,800 for five years, despite continuing to operate.

The outstanding rental fees include GH¢226,050 from Suncity Hostel, GH¢328,350 from Anglican Hostel, GH¢561,000 from Ghana Hostel/SSNIT, GH¢109,200 from the Electricity Company of Ghana (ECG) for office accommodation, and GH¢25,200 from UBA Bank Limited.

The Auditor General recommended that the Legal Office and the Estate Organisation of the University issue demand notices to the lessees and negotiate appropriate payment plans to recover the outstanding rental income.

The report also suggested that management design and implement an efficient mechanism to monitor the private developers to ensure compliance with the terms of the agreements.

In response, the University's management stated that negotiations are still ongoing with Ghana Hostels/SSNIT, Electricity Company of Ghana, Suncity Hostel, and Anglican Hostel according to the Legal Division. In the case of UBA, the lease is yet to be executed.

The Legal Division has made efforts to recover the amounts, including threats to proceed to court if necessary.