Asumbi Principal scrutinized by the Auditor General regarding an Unauthorized Bank Loan for the Acquisition of LPG Gas

 


The Auditor General has highlighted issues of mismanagement and financial irregularities at Asumbi Girls High School. In a report for the fiscal year ending June 30, 2024, it uncovers several malpractices that may have resulted in the loss of public funds.

Stakeholders are now urging the Ethics and Anti-Corruption Commission to further investigate Principal Mrs. Sati Linet Pino, under whose leadership these illegal activities occurred.

The report indicates that the audit found the school management secured a loan for the purchase and installation of LPG gas without the Cabinet Secretary's approval.

This action contravenes Circular MOE.HQS/3/101181(112) dated November 15, 2022, which stipulates that schools are prohibited from entering into financial contracts, such as hire purchases or bank loans, without the explicit written consent of the Cabinet Secretary, in accordance with Section 18 of the 4th Schedule of the Basic Education Act, 2013.

Consequently, the management violated the Ministry of Education's directive. An examination of records showed that during the reviewed year, the school transferred Kshs.1,247,220 to the Kenya Secondary School Heads Association (KESSHA).

However, KESSHA is a welfare organization comprised solely of school principals. The organization is not recognized within the government funding framework, and there is no guarantee that it has effectively implemented its objectives.

The statements of receipts and payments indicate expenditures for boarding and school funds totaling Kshs.224,028,585, which, as detailed in Note 9 of the financial statements, includes Kshs.122,694,203 and Kshs.22,289,514 allocated for boarding equipment and stores, and administrative costs respectively, amounting to Kshs.144,983,717.

A review of payment records revealed that these payments were processed through imprests.

Asumbi Girls' High School procured an accounting software known as SCHACCS School Accounting software in July 2022, at a contract value of Kshs.350,000, along with an annual maintenance fee of Kshs.100 for each newly admitted form one student.

However, the audit indicated that the proprietor of the system also served as the School's system administrator. There was a lack of evidence showing that regular internal system back-ups were conducted, which put the School at risk of data loss in the event of disasters.

Additionally, the system's server was not located in a secure environment. The School utilized only the accounting and admissions modules, despite the availability of other active modules such as payroll, procurement, invoicing and receipting, SMS communication, and pocket money management, all of which could be accessed without incurring additional costs.

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