The Auditor General's report for Pangani Girls indicates mismanagement, revealing that fees arrears owed by former students have reached Sh24,877,399

The latest report from the Auditor General for the fiscal year ending June 30, 2024, concerning Pangani Girls High School, under the leadership of Principal Ms. Florenc Ngarari, who has been in charge since March 22, 2022, has disclosed that the institution is owed Sh24,877,399 in fees arrears by students who have departed and collected their certificates.

As per the report, the financial assets and liabilities statement shows an accounts receivables balance of Kshs.24,877,399 related to fees arrears, as detailed in Note 10 of the financial statements.

This balance includes receivables totaling Kshs.5,910,215 that have been outstanding for over two years. No recoveries were achieved during the reviewed year, raising concerns about their collectability.

Additionally, there was an absence of a policy regarding the impairment of long-standing fees arrears, which casts doubt on the fair representation of the accounts receivables balance.

Consequently, the accuracy and completeness of the receivables balance of Kshs.24,877,399 could not be verified. The school, through letter of allotment reference number 71435/00 dated July 1, 1998, was allocated plan number 421151981, encompassing an area of 0.25 hectares with a term of 99 years by the Commissioner of Lands.

However, the school lacks a title deed, thus preventing confirmation of full ownership of the land. Furthermore, a licensed surveyor's verification to confirm the land's boundaries was not provided for audit review. Therefore, the ownership and valuation of the land parcel could not be substantiated.

The Statement of receipts and payments as of 30 June 2024 indicates total receipts amounting to Ksh.246,574,802. This figure includes Ksh.73,373,796 attributed to miscellaneous or other incomes, which further encompasses Ksh.16,718,282 and Ksh.39,727,752 from the Hire of Ground by the KNEC marking centre and EGF, totaling Ksh.56,446,034.

An examination of income invoices, receipts, and income files has shown that both income streams were duly receipted and deposited into the Parent's School Fund accounts designated for the banking of funds contributed by parents for boarding-related expenses.

 

However, the Management of Pangani High School has neglected to establish and maintain separate bank accounts for these two sources of income, as mandated by section 3.0 of the Ministry of Education circular reference no. MOE.HQSl3l10l18l (112) dated 15 November 2022, which provides guidelines for the implementation of FSDE.

 

This circular stipulates that schools engaged in income-generating activities must open distinct bank accounts for such income. Consequently, the Management is in violation of the law. An analysis of the payments made has revealed that the Accounting Officer did not appoint the inspection and acceptance committee as required by Section 48 (1) of PPADA, 2015. As a result, there was no inspection and acceptance report for the goods and services that were paid for during the financial year.

 

Under these circumstances, it is possible that the goods and services were not delivered in accordance with the correct quantity, quality, and specifications.