Effect of Internally Generated Fund and Government Subvention on the Financial Sustainability of Public Universities in Ghana: Evidence From the University of Cape Coast

Abstract

The study examined the effects of the Internally Generated Fund (IGF) and government subvention on financial sustainability at the University of Cape Coast. Specifically, the study assessed the effects of IGF on financial sustainability at the University of Cape Coast, assessed the effects of government subvention on financial sustainability at the University of Cape Coast, and identified identify the challenges associated with IGF and government subvention on financial sustainability at the University of Cape Coast. The study was guided by an explanatory research design. Data was collected from 135 University of Cape Coast staff (stores, audit, procurement and head of departments staffs) through a simple random sampling technique and analysed using partial least square estimation. The main finding of the study was that universities that incorporate IGF initiatives such as residential and academic user facility fees paid by regular students and fees by sandwich students, transcript fees, attestations fees, graduation fees, facility user fees, printing press, and consultancy services into their corporate objectives are more likely to attain and improve their financial sustainability. Also, the study found that universities able to access government subventions are better positioned to sustain themselves financially. Hence, it was recommended that the universities strive to generate funds internally and access government subvention to improve their financial sustainability. Again, the decision-makers in these universities are to note that in order for them to improve financial sustainability, addressing the challenges associated with IGF and government subvention should be a major objective they should thrive to achieve.