AUDIT REPORTS UNMASKS THE ROT AT ST.ANNES MUTHALE GIRLS IN KITUI COUNTY




UN-APPROVED INCREASE OF SCHOOL FEES

According to Audit 2024 report ,the statements of receipts and payments reflects miscellaneous incomes amount of Kshs.21 ,393,436.


 As disclosed in the financial statements, the miscellaneous income includes an amount of Kshs.13,042,474 in respect of development fund fees charged on parents for development.


However, the approved amount to be charged as per the letter no MOE.HQS/3[7I2023 dated 8 September, 2023 was Kshs.1 ,000 per student in the financial year translating to a total amount of Kshs.1,473,000 resulting to unapproved amount of fees of Kshs.1 1,569,474.


In the circumstances, Management was in breach of the Ministry directive.


UNDERFUNDING OF CAPITATION GRANTS


Review of documents provided for audit revealed that there were discrepancies between the data in National Education Management lnformation System (NEMIS) and the school records relating to the enrolment of students which led to the underfunding of students by Kshs.1 ,231 ,299


UNSUPPORTED CASH AND CASH EQUIVALENTS


The statement of assets and liabilities reflects cash and cash equivalents balance of Kshs.31 ,536,466 as disclosed in the financial statements.


However, included in the cash and cash equivalents balance are savings account and a KCB account with balances of Kshs.295,428 and Kshs.7,545,883 respectively which were not supported with cash books.


Further, all the bank accounts balances operated by the School were not supported by bank confirmation certificates and bank reconciliations statements.


In the circumstances, the accuracy and completeness of the cash and cash equivalents balance of Kshs.31,536,466 could not be confirmed


IRREGULAR TRANSFER OF FUNDS TO KENYA SECONDARY SCHOOLS HEADS ASSOCIATION


The statement of receipts and payments reflects boarding and school fund payments amount of Kshs.132,819,142.


Included in the amount is transfer to co-curricular funds of Kshs.668,000 to the Kenya Secondary School Heads Association (KESSHA).


However, KESSHA is a welfare organization that draws its membership from School Principals only.


UNSUPPORTED LONG OUTSTANDING RECEIVABLES


The statement of financial assets and financial liabilities reflects accounts receivables balance of Kshs.37,610,120 as disclosed in Note '13 of the financial statements.


Included in the balance is an amount of Kshs.14,611,964 being fees arrears for over three (3) years.


Further, Management did not provide detailed schedules to support the amount.


In the circumstances, the accuracy, completeness and recoverability of the outstanding receivables could not be confirmed.


2022 REPORT


Failure to Maintain Separate Account for Other Receipts


According to the 2022 report, the statement of receipts and payments reflects School fund income-other receipts amount of Kshs.23,783,732 from own generating income as disclosed in Note 4 to the financial statements.


However, Management did not maintain a separate bank account for other receipts as receipts were commingled with the School's Fund Parents Contribution Account.


RE-ALLOCATION OF OPERATIONS ACCOUNT MONIES WITHOUT REQUISITE APPROVAL


During the year under review, Management transferred Kshs.9,650,000 from the operation account to the School Fund account without authority from the County Education Board (CEB) on diverse dates.

FAILURE TO OPEN A SEPARATE BANK ACCOUNT

According to 2021 audit report,the statement of receipts and payments reflects School funds income-other receipts amount of Kshs.3,526,892 from own generated income as disclosed in the statement of receipts and payments. 

However, Management did not maintain a separate bank account for other receipts. Other receipts funds were commingled with the School fund parents' contribution account. 

This was in contravention to the Ministry of Education Circular Ref. No. MOE.HQS/3/13/3 dated 16 June, 2021 on guidelines on implementation of Free Day Secondary Education (FDSE) which required Schools with income generating activities to open separate bank accounts for the same.

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