The Governance Dashboard requires that you specify non-UNC root folders as it cannot resolve the folder contents directly for a UNC root. (see http://community.qlik.com/message/283388#283388)
You can do as you have done by pointing to specific subfolders within that UNC root path.
Or you could share one folder up from that UNC root folder so that it is no longer a UNC root. In other words, you could share the “PROD” folder in your example.
Ex: \\<Server name>\i$\Qlikview\PROD\Projects
If it is the case that you are already sharing the PROD folder, could you try placing an empty text file in that folder?
Also, is it possible that the PROD folder itself has security permissions? Perhaps the subfolders have more open permissions?