- Auditor-General’s report claims UG overstated compensation by GH¢59.2 million
- University says flagged payments were legitimate IGF use to support staff
- Prof. Samuel Simpson calls the report misleading and lacking context
The University of Ghana (UG) has refuted claims of irregularities in its payroll system, following findings from the Auditor-General’s latest audit report.
The report had alleged that UG overstated employee compensation by GH¢59.2 million. However, the university, through its Acting Deputy Internal Auditor, Prof. Samuel Simpson, described the claim as misleading and lacking critical context.
In an interview with Myjoyonline, Prof. Simpson clarified that the figures presented in the report do not reflect the full story. “There are important processes and engagements behind these numbers that the Auditor-General’s report fails to consider. The suggestion that the university overstated compensation is simply inaccurate,” he said.
UG maintains that the so-called “overstatements” were actually expenditures made from internally generated funds (IGF) to support staffing needs not fully covered by government allocations.
Prof. Simpson explained with an example: “If the government can only afford to pay two staff, but the university needs five to maintain academic quality, UG uses its IGF to fund the remaining three. That’s not savings or irregular spending—it’s a deliberate effort to uphold educational standards.”
He questioned the basis of labeling such transparent efforts as payroll fraud. “Is it wrong for the university to be open about how it supplements government support using its own resources? These are not hidden transactions—they are well documented and aimed at sustaining quality service delivery.”
Prof. Simpson emphasized that all such expenditures were properly recorded, and the audit report overlooks key background information. “There’s no basis for suggesting payroll fraud or overstatement of compensation,” he reiterated, adding that UG management will soon issue a formal response.
The Auditor-General’s broader report reviewed financial practices across multiple institutions between 2020 and 2023, targeting recoverable funds. Of the GH¢38.9 billion flagged for recovery, only GH¢12.7 billion—roughly 32.6%—has been retrieved as of December 31, 2024.
