By PSCU
Worth Noting:
- Further, KSh920,013,000 cash and cash equivalents captured in the consolidated statement of financial position, revealed that KSh7,727,190 collected at the university’s Nairobi campus had not been captured while cheques payable to Moi University had been irregularly banked in the Moi University Staff Welfare account.
- The Committee noted that failure to provide the supporting documentation, had hampered the auditors’ ability to verify the accuracy, completeness, and authenticity of cash and cash equivalents figure of KSh920,013,000.
- Moreover, a lack of documentation suggested that a potential fraud had been committed by the university.
- The Committee further noted that a number of records contained discrepancies and were without justification, reflecting errors, omissions, manipulations and mismanagement.
The Jack Wamboka-led Public Investment Committee on Governance and Education yesterday put university Vice Chancellors on notice on the account of their non-compliance with the law.
This was after the Committee reviewed a report from the Office of the Auditor General which revealed a number of audit queries including non-compliance with the Public Procurement and Asset Disposal (PPAD) Act, 2015, regarding irregular procurements and use of non-competitive procurement practices.
Others were in relation to stalled/incomplete projects and failure to provide contract and tender documents for audit review.
The reports also revealed a number of unauthorized allowances including Irregular payment of sitting allowance and irregular payment of salaries.
According to the report, the institutions displayed ineffective internal audit functions and audit committees, as well as non-compliance with regional distribution in employment, among others.
A summary review of Moi University for instance, showed an irregular banking of student fees into a Welfare Account.
Further, KSh920,013,000 cash and cash equivalents captured in the consolidated statement of financial position, revealed that KSh7,727,190 collected at the university’s Nairobi campus had not been captured while cheques payable to Moi University had been irregularly banked in the Moi University Staff Welfare account.
The Committee noted that failure to provide the supporting documentation, had hampered the auditors’ ability to verify the accuracy, completeness, and authenticity of cash and cash equivalents figure of KSh920,013,000.
Moreover, a lack of documentation suggested that a potential fraud had been committed by the university.
The Committee further noted that a number of records contained discrepancies and were without justification, reflecting errors, omissions, manipulations and mismanagement.
The members pointed out that this was a red flag for fraudulent activities, and called for the accounting officer to be held accountable.
The Vice Chancellor for Mount Kenya University, Prof. Deogratius Jaganyi was tasked to explain the placement of 27,164 students by KUCCPS over a seven-year period,out of which 24,075 students enrolled.
This had resulted to a variance of 3,089 students from the university which had the highest recorded placement of all private universities.
Further, the university had failed to provide evidence of the capacity declarations made to KUCCPS for the students placed in these universities.
Additionally, records showed that forty-one (41) students in the disbursement records had not been placed by KUCCPS, but had been declared as government-sponsored students.
Further, an amount of Ksh1,675,263 had been disbursed to the university for the students who are not under the Government- Sponsored Students (GSS) program.
The Special Audit established that a total of Kshs.12,080,950 had been disbursed on account of two hundred and ninety-one (291) students who had graduated from the university for the period under review.
In addition, a total of KSh7,810,917 had been granted to 200 students in the university, who had either deferred or were on long academic leave.
Prof. Deogratius in his response gave insights to a number of concerns including the payment of students who had graduated, stating that while most universities run on a two-term semester, MKU runs a trimester hence the continuation of payment after graduation.
Later, ZETECH University led by VC Prof. Njenga Munene were put on the spot over the placement of 9,621 students by KUCCPS, out of which 7,372 students had enrolled, resulting in a variance of 2,249 students.
The lawmakers inquired why the vice chancellor had declared its capacity before receiving a placement from KUCCPS. The MPs sought to know if the institution had declared capacity aligned with the actual placement, and the basis used to make the placement.
Members also inquired if the university had received funds for the students who had not been enrolled.
The meeting established that a sum of Ksh967,532 had been granted to 19 students who had been with the university for periods longer than their expected durations of the programs undertaken.
Committee Members flagged this as an indication of lack of control measures to track the students’ progress.
Turning to Kenya Methodist University, the Committee heard that a Special Audit had revealed a variance of 1,305 students that had been funded. The Audit further revealed that forty-two (42) students in the disbursement records had not been placed by KUCCPS, but had been declared as GSS.
Resultantly, an amount of KSh3,087,704 had been disbursed to the university for the students who were not under GSS program.
The Committee also heard that the Special Audit had also revealed that the capitation disbursement schedules had a duplication of seventy-six (76) students resulting to over payments totaling to Ksh3,433,388.
Records also revealed that 255 students who were funded to the tune of Ksh18,250,890 had been with the university for periods longer than their expected durations of the programs undertaken. A total of Ksh497,835 was also granted to eleven students in the university who had either deferred or were on long academic leave.
Members called for the immediate refund of the amount of Ksh3,433,388 spent on students whose names were duplicated in the payment schedules by the University.
In conclusion, the Members tasked the VCs in private universities to familiarise themselves with the audit process and provide auditors with timely documents for audit.
They were also directed to come up with a mechanism for the university to ensure that students are eligible to payment only within their stipulated duration of program undertaken.