Auditor General has revealed significant financial mismanagement at Barazani Girls' High School and has recommended that the Ethics and Anti-Corruption Commission investigate Principal Joy Muriuki

 

The latest Auditor General's report for the fiscal year ending June 30, 2024, suggests that the Ethics and Anti-Corruption Commission conduct a comprehensive investigation aimed at prosecuting those found responsible for the mismanagement.

The report indicates that public funds may have been misappropriated through a school fees cartel that has manipulated financial records, resulting in fictitious fee arrears totaling tens of millions of shillings.

It is particularly concerning that Principal Joy Muriuki has enforced a “ZERO BALANCE” policy, requiring students to settle all fees before returning to school. This raises questions about how the school has accrued millions in fee arrears.

This situation necessitates a thorough investigation. Stakeholders are urging the Teachers Service Commission to facilitate the transfer of the principal and appoint a new principal by January.

Teachers have also expressed grievances regarding her management style, which they describe as coercive, intimidating, and threatening, with those holding differing opinions facing victimization.

Stakeholders assert that due to her authoritarian approach, the school's academic performance has declined, and there have been no significant infrastructure developments since she assumed leadership in July 2022.

Failure to Collect and Account for lnternally Generated Revenue

The receipts and payments statement shows an amount of Kshs.897,600 related to miscellaneous incomes, as detailed in Note 5 of the financial statements.

However, upon audit verification, it was found that the School participates in various income-generating activities, such as renting out School facilities for private events and leasing staff housing units.

Nevertheless, a review of the records revealed that no fees were charged or collected for these services, and there was no established revenue framework in existence.

Given these circumstances, the accuracy and completeness of the miscellaneous income could not be verified.

Co-Mingling of Own Generated Revenue with School Fund lncome

Receipts and payments indicate a total of Kshs.897,600 pertaining to miscellaneous incomes.

However, an audit review uncovered that the School's Management was improperly combining the income from bus hire with other School fund income within the KCB School Fund account, which is in violation of the MOE Circular guidelines that mandate the maintenance of separate bank accounts for revenue generated from own sources.

Additionally, it was noted that the income generated from bus hires was not deposited in full. Instead, related expenses were deducted from the cash received, with only the remaining balance being deposited.

Under these circumstances, Management was found to be in violation of the law.

Failure to Transfer lnfrastructure Funds from the Operations Bank Account

The statement of receipts and payments indicates that the operations received capitation grants totaling Kshs.7,854,885 from the Ministry of Education, which have been credited to the operations bank account.

Included in this total is Kshs.2,111,950 designated for infrastructure grants, intended for transfer to the infrastructure bank account to facilitate the maintenance and enhancement of the School's facilities.

However, only Kshs.1,154,000 was actually transferred to the infrastructure account, resulting in a remaining balance of Kshs.957,950 as of 30 June 2024.

This situation is in violation of the Ministry of Education Circular dated 16 June 2021, which mandated that infrastructure grants, along with maintenance and improvement funds, should be transferred to the School's infrastructure account within fifteen (15) days of receiving the funds in the operations account. Consequently, Management has failed to comply with the legal requirements.

Non-Compliance with Waste Management Requirement

A physical examination of the School indicated that waste had gathered at a dump site located next to the laboratories and dormitory.

Additionally, the School lacked an incinerator on the premises and was instead utilizing a burning chamber, which is in violation of Section 26(1) and (2) of the National Environment Management Authority (NEMA) Waste Management Regulations, 2006.

This section stipulates that

 (1) Every individual who produces toxic or hazardous waste must treat or ensure the treatment of such hazardous waste using the types of incinerators specified in the Third Schedule of these Regulations or any other suitable technology approved by the Authority.

(2) Any leachate or other by-products resulting from the treatment of such waste must be disposed of or treated in accordance with the conditions set forth in the license or in line with guidelines provided by the Authority in collaboration with the relevant lead agency.

In light of these circumstances, the Management was found to be in violation of the law.