INTRODUCTION be an autonomous, international institution of distinction, primarily

INTRODUCTION

AKU was founded in 1983 as
Pakistan’s first private, not-for-profit university. In 2000, it expanded to
East Africa – where Aga Khan educational institutions have been present for
more than a century – followed by the United Kingdom and Afghanistan. Today,
the University has more than 2,300 students across campuses in six countries,
including Tanzania, Kenya and Uganda. Yet its growth over the last 15 years
will pale beside that to come in the decade ahead, as AKU transforms itself
into a comprehensive university offering liberal arts and graduate professional
degrees that prepare students from the developing world to lead their societies
toward a better future.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

OUR VISION

Aga Khan University will be an
autonomous, international institution of distinction, primarily serving the
developing world and Muslim societies in innovative and enduring ways.

OUR MISSION

Aga Khan University is
committed to the development of human capacities through the discovery and
dissemination of knowledge, and application through service.

It seeks to prepare
individuals for constructive and exemplary leadership roles, and shaping public
and private policies, through strength in research and excellence in education,
all dedicated to providing meaningful contributions to society.

To advance this Mission, AKU
will:

·        
Offer programs of
international quality;

·        
Respond to
identified needs in the countries and regions which it serves;

·        
Priorities
teaching and research which will inform and underpin intellectual innovation
and change;

·        
Provide service
to advance its educational and research mandate;

·        
Foster and
develop leadership capacity through its education and research programs

·        
Assess its impact
and effectiveness;

·        
Promote access
and equity by taking positive measures to make the University inclusive of all
socio-economic groups, addressing the particular needs and circumstances of the
disadvantaged; promoting the welfare and advancement of women;

·        
Engage in
knowledge networking and emerging technologies.

·        
Add value by
promoting partnership and networking across the Aga Khan Development Network
(AKDN), and with other national and international institutions.

VALUES

As an international
institution, in achieving its Mission, Aga Khan University operates on the core
principles of quality, relevance, impact and access.

Inspired by Islamic ethics,
humanistic ideals and the philosophy of Aga Khan Development Network (AKDN),
the University is committed to building an environment that fosters
intellectual freedom, distinction in scholarship, pluralism, compassion,
and humanity’s collective responsibility for a sustainable physical,
social and cultural environment.??

 

FINANCIAL
PROBLEM WHICH AKU FACES:

The Agha Khan University
significantly subsidizes the cost of tuition. Tuition fees are set, on average,
at one third of the actual cost. This means that, on average, every student
receives a 67 per cent tuition fee subsidy. In 2014, the aggregate tuition fee
subsidy provided by the University was US$ 21.1 million (2013: US$ 23.3
million). “It is becoming increasingly
challenging to provide high levels of subsidy given devaluating currencies and
rising inflation in the countries where the University operates”.

HOW AGHA KHAN UNIVERISTY MANAGES TO SOLVE THE PROBLEM:

The Aga Khan University is a
private, not-for-profit university that promotes human development through
research, teaching and community service initiatives. AKU’s income and property
are used only for the promotion of its objectives and no payments, directly or
indirectly, are made by way of dividend or profit to any individual or institution.
Independent firms of international repute audit the institution’s financial
statements annually.

On the basis of that AKU
offers a generous financial aid programs, supporting students with a
demonstrated financial need with grant assistance and interest-free loans. To
date, over US$ 26.9 million has been provided. In 2014, US$ 4.7 million was
provided, including US$ 3.3 million in grants and US$ 1.4 million in
interest-free loans. In 2013, US$ 2.6 million was provided, US$ 1.2 million in
grants and US$ 1.4 million in interest-free loans.

The principle of access is
equally important for the University Hospitals. Patients in need of treatment
but unable to pay receive assistance through the Hospitals’ Patient Welfare
Programs. Since 1986, they have assisted over 1.1 million patients, providing
US$ 89.4 million in support, of which US$ 11.4 million was provided in 2014,
and an increase from US$ 9 million in 2013. In spite of challenging economic
environments, the University continues to ensure access to world-class health
services for those who cannot afford it. The University Hospital in Karachi
also provides a significant subsidy on all general ward beds as well as the
clinics at the Community Health Centre. The University Hospital in Nairobi
offers many free clinics to those in need.

Starting of new future
programs by Agha Khan University may help in overcoming the current problems like
inflation and devaluation of currency

FUTURE
PROGRAMMES AND FACILITIES

Graduate Professional
Schools
In Pakistan and East Africa, Schools of Hospitality, Leisure and Tourism;
Leadership and Management; Architecture and Human Settlements; Law; Government,
Public Policy and Civil Society; and Economic Growth and Development will
create competent professionals and leaders in a variety of fields critical for
social and economic development and cultural vitality. The Graduate School of
Media and Communications launched in 2014 in Nairobi with the mission of
contributing to the development of a thriving civil society by educating
innovative and ethical journalists and media leaders.

Institute for
Educational Development
The Institute’s new campus in Dar es Salaam will feature cutting-edge research
and learning facilities and on-site housing for faculty and students. Its
location next to a new Aga Khan Academy will create exceptional opportunities
to link theory and practice.

New Hospitals and
Clinics
New University Hospitals will be established in Arusha and Kampala, and health Centre’s
will be added in Tanzania, Kenya, Uganda, Burundi and Rwanda to meet the vast
demand for quality health care.

Faculties of Arts and
Sciences
Undergraduate liberal arts degree programs on residential campuses in Arusha,
Tanzania, and Karachi will offer an educational experience unlike any other in
their regions, preparing students to succeed in the 21st century knowledge
economy, to lead improvement in the quality of life in their societies and to
increase understanding in a pluralistic world.

Undergraduate Medical
and Nursing Education
In East Africa, plans are underway to offer a four-year Bachelor of Science in
Nursing degree, a six-year medical degree and training in allied health
sciences to develop health professionals capable not only of providing
outstanding care but of transforming health institutions and systems. These programs
will join the University’s existing nursing and postgraduate medical education programs
in East Africa.

Institute for the
Study of Muslim Civilizations, New Campus
Construction is expected to start in 2016 on a Maki and Associates-designed
building that the Institute will share with the Institute of Ismaili Studies
and the Aga Khan Foundation at the King’s Cross Central development in London.
Construction of a new student residence building will finish in early 2016.

EXISTING
PROGRAMMES AND FACILITIES

Faculties of Health
Sciences
we educate midwives, nurses, doctors and specialists who deliver world-class,
life-saving care to the people and places that need it most. And our
researchers create the knowledge required to overcome the developing world’s
most pressing health challenges. 

Aga Khan University
Hospitals
The only hospitals in Pakistan and East Africa
accredited by the US-based Joint Commission International, AKUH in Karachi and
AKUH in Nairobi set the standard of excellence in their regions. Together with
their extensive networks of secondary hospitals, clinics and laboratories, our
hospitals treat people at all income levels and receive 1.75 million patient
visits annually.

East African Institute
Newly launched, EAI looks beyond geographic and disciplinary boundaries in
addressing issues such as regional integration, biodiversity and the creative
economy, aiming to generate novel insights and shape decision-making through
research, evidence-based dialogue, public engagement and partnerships.

Institute for Human
Development
Children’s earliest years shape their life chances to a remarkable extent. The
newly launched IHD is developing the evidence needed to inform policymaking and
create large-scale, cost-effective early childhood interventions tailored to
developing-world contexts, so that all children have the opportunity to fulfill
their potential.

Institutes for
Educational Development
Our Institutes develop agents of change who improve school performance in
challenging environments by introducing context-sensitive teaching and
leadership practices, inspiring their colleagues and partnering with parents,
communities and government.

Institute for the
Study of Muslim Civilizations
ISMC seeks to illuminate the historical and contemporary aspects of Muslim
societies and to create a platform for fresh thinking about their futures
through research, publications, public events and an interdisciplinary master’s
degree that attracts students from around the world to its London campus.

Examination Board
Unique in Pakistan, the Board’s innovative mix of standardized testing, teacher
training and syllabi is transforming teaching and learning at middle and
secondary schools, producing graduates with the knowledge, critical-thinking
and problem-solving skills to enter and succeed in the best universities.

French Medical
Institute for Children 
One of the few children’s hospitals in Afghanistan, FMIC is an 85-bed teaching
hospital managed by AKU in partnership with the governments of Afghanistan and
France and the French NGO La Chaîne de l’Espoir. With the addition of a 66-bed
Women’s Wing, it will be a complete maternal and child health resource,
offering a range of essential services unavailable anywhere else in the
country.

Long term planning of finance
department plays a key role in overcoming the financial problems faced by Agha
Khan University.

FINANCE DEPARTMENT

Aga Khan
University Hospital has huge finance department and all the financial data i.e.
balance sheet, income statement, retained earning etc. are recorded in the PeopleSoft
(software). All the data generates through ancillary/subsidiary system are
transfer to PeopleSoft through interface process. As AKUH is a big organization
therefore they has divided their finance department into 7 units that are:

·        
Cash and  Banking:

Cash and
Banking Department controls all transactions that happen between AKU and Bank i.e.
all transactions that took place from and within AKU and Bank. It records and
reconciles all transaction to achieve fraud free transactions.

·        
Budget and planning:

The Office of Budget and Planning leads the Hospital’s
and University’s annual budget process, designs long-term resource plans and
performs other budget and planning functions. The Office assures the timely
development of academic and non-academic budgets and their alignment to the
University’s and Hospital’s strategic plan. AKU strive to provide first class
services that meet or exceed customer expectations. AKU goal is to become an
industry leader in providing quality, timely and cost effective services.

 

·        
Treasury:

It
compiles all income and expenses to generate cash forecast (short and long-range).
The forecast and all its components are needed to:

ü 
Determine if more cash is needed. If
that is the case, then they can go on to plan for fund inquiry either through
the use of debt or equity.

ü 
Plan for investment purposes,
if the forecast results in surplus and cash excess shows up.

ü 
Plan its hedging operations by using
the information at the individual currency level.

ü 
Combining information in the cash forecast and working capital
management activities, Treasury staff is able to ensure that sufficient cash is available for
operational needs.

ü 
Manage the work related to currency and clearance of cheques.

 

·        
Central processing unit  (CPU):

Central
Processing Unit at AKU holds the lead of cash flow from and within all source
of income that includes patients billing to every other income. It also checks
and reconciles the income and expenses.

 

·        
Payroll:

As
any other organizations, AKU has its Employee Payroll unit who holds the duty
of all employees’ wages, remunerations and salaries. Payroll unit is
responsible for disbursing the payments of employees monthly with direct
coordination of Human Resource department. It is also abide to hold full and
final settlement of any employee who resigns from the organization. 

 

·        
Tax department:

Tax
department is liable to deduct taxes through FBR predefined process. At AKU tax
policies are very strictly followed. For every expenses on which taxes are
applied, tax department is bound to deduct tax. Like on employees’ salaries it
defines boundaries of tax deduction, also there are several other expenses on
which taxes are applied.

·        
Grants department:

As AKU
is one the biggest university in Pakistan, it has its proper grants department
who is responsible for granting and allotting payments for all its operational expenses
that includes all administrative expenses like any events or seminars, patient
welfares, hostel accommodations for faculties etc.

 

CONSOLIDATED
FINANCIAL PERFORMANCE

?2014
(US$ in millions)

?2013
(US$ in millions)

?Income

?

?

?Hospital
Revenues

?291

?248

?Patient
Welfare

?(11)

?(9)

?Tuition
Fees

?10

?8

?Financial
Aid – Grants to Students*

?(3)

?(1)

?Research
Grants

?16

?15

?Programmatic
Grants

?7

?7

Donations

?17

?14

?Endowment
Income

?10

?9

?Other
Income

?37

?31

?Total
Income

?374

?322

?

?

?

?Operating
Expenses

?

?

?Faculty
and Staff

176?

151?

?Medical,
Surgical and Other Supplies

?79

?69

?Other
Operating Expenses

?77

?68

?Total
Operating Expenses

?332

?288

?Investment
in Capital Equipment

?16

20?

?Investment
in Facilities

?29

29?

?Total Expenditure

377?

337?

?Shortfall of Income over Expenditure

?(3)

?(15)

?Funding from the Chancellor, His Highness the Aga Khan

9?

10?

?Increase / (Decrease) in Reserve

?6

(5)?

 

CONCLUSION

All in
all, Aga Khan University hospital is one of the reputable organizations and is
highly competitive and globally known organization which has several strengths
which leads it towards good performance and competitive advantage. AKU utilized
excellent strategies to keep top talents, and let them contribute to the
organization maximum. It works for human development through research,
teaching and community service initiatives.

Aga Khan
University Hospital implements the policies of financial and accounting
information system and achieves its target accordingly. All the duties that are
perform by finance department shows the excellent position of the organization.