Internally generated funds are those funds an institution generates independently, without governmental support, and utilizes for its operations. To enhance revenue generation within government institutions in Ghana, various measures have been implemented. However, there have been numerous complaints about the handling of internally generated funds by government agencies in the country. Citi Newsroom (2022) reported that Ghana lost Gh₵66 million due to irregularities committed by the Metropolitan, Municipal, and District Assemblies in 2021, including misappropriation, misapplication, unaccounted funds, over-payment of contract sums, and unsupported payments.
A study assessing the management of internally generated funds in public institutions, focusing on Diaspora Girls Senior High School, revealed that the majority (43.9%) of participants agreed that public schools generate funds internally through fees and fines, while 22% of the funds come from royalties. Additionally, the study found that internally generated funds are well managed and accounted for in government schools.
However, government schools face challenges in mobilizing funds. The lack of accountability from institution management emerged as the primary challenge. Other obstacles include insufficient financing sources, a lack of trust from potential donors, and inadequate training for fund mobilizers. The study recommends, among other measures, that the management of public schools, particularly Diaspora Girls Senior High School, should increase revenue from royalties and ensure these funds significantly contribute to school performance. It also suggests that public institutions improve accountability and accurately present financial accounts to gain public trust and attract more donors.
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