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Hardly a week before schools re-open for the first term in January, Auditor General Nancy Gathungu has raised concerns over the misappropriation of funds in various schools at a time when parents are struggling to pay school fees.

Various audit reports for the financial years 2021, 2022 and 2023, have revealed how some schools irregularly increased fees without authorisation from the Ministry of Education. Others were overfunded due to wrong entry of their details into the National Education Management Information System (Nemis) while in other cases the schools procured goods and services without following the right procedures.

 The audit reports further show how the schools had inconsistencies in Nemis, were involved in irregular and unaccounted-for cash withdrawals from the School’s Boarding/Fund Account and irregularly transferred funds to Kenya Secondary Schools Heads Association (Kessha).

For instance, in Moi Amalo Secondary School in Nakuru County, the report shows that there was an irregular increase in school fees.

A comparison of the total annual fees charged against the fees as per the Ministry of Education (MoE) guidelines on category B extra county schools revealed variances in fees paid. The schools in question increased fees by Sh2,500 for Form Two, Form Three and Form Four from Sh40,585 recommended by the Ministry to Sh43,085.

Reads the report: “In the circumstances, Management was in breach of the law.”

 The school has also been flagged for irregular and unrecorded encashment of cheques on the School’s Operation and infrastructure Bank Accounts amounting to Sh1.4 million, irregular cash withdrawals from the School’s Boarding/Fund Account amounting to Sh3.93 million.

Reads the report: “ln the circumstances, the accuracy and completeness of the cash withdrawals and funds inter-account transfers of Sh6,137,585 could not be confirmed and the School Management was in breach of the law.”

 In the case of Baringo Boys in Baringo county, the report raises concerns over unsupported boarding and school fund payments as well as unsupported tuition payments amounting to Sh738,636 whose payment vouchers and schedules were not provided for audit.

The school has also been fingered over irregular remuneration of Members of the Board of Management and irregular Transfer of Funds to Kessha amounting to Sh541,350.

Kessha, the report says is a private entity that is a welfare organisation that draws its membership from school principals only and is not subject to Public Finance Management Act, 2012 or any other public finance regulations.

  With regards to Hola Boys in Tana River County, the report says there were inaccuracies of capitation grants.

A review of the Nemis capitation disbursements made to the school against the amount received revealed an amount of Sh1.3 million whereas the Nemis capitation reflects Sh1.34 million resulting in an unexplained variance of Sh42,000.

In Chavakali High School in Vihiga County, the report shows that there was unexplained variance in student numbers between Nemis and School registers resulting in overall under-disbursement of tuition fees on both capitation grants for tuition and operation fees.

The management explained that the difference was due to the failure by the school to fully register all students on Nemis especially Form Ones who at the time of admission did not have all the required particulars for uploading to the system. However, the report says this was contrary to the Ministry of Education Circular on the implementation of Free Day Secondary Education (FDSE) which requires all learners to be registered in the system.

  In the case of St Mary’s Lwak Girls High School in Siaya County, the report shows that there were unexplained variances in student numbers between Nemis and school registers resulting in fees under disbursements on both capitation grants for tuition and operation fees of Sh4,202,160.

 The management explained that the difference was due to the failure of the school to fully register all students on Nemis due to a lack of birth certificates.

The report has also raised concerns over the irregular transfer of Sh213,000 to Kessha.

  Reads the report: “ln the circumstances, the existence of effective internal controls and governance mechanisms could not be confirmed.”

With regards to Moi Girls Secondary in Mandera county, records revealed unexplained variance in student numbers between Nemis and school registers resulting in tuition fees under-disbursement.

The school is also on the spot over the irregular transfer of funds to KESSHA amounting to Sh695,600, failure to transfer infrastructure funds from the operation account and preparing a school improvement plan.

For Maseno School in Kisumu county, the report fingers the school over an unsupported bank loan of Sh12.6 million to buy a school bus, unconfirmed student enrolment data, excess supply of books and irregular procurement on cash payment.

With regards to Asumbi Girls High School, the report raises concerns over the irregular transfer of funds to Kessha amounting to Sh595,180, an unauthorised loan to buy LPG gas as well as failure to reconcile student enrolment data.

Nakuru Girls’ High School, is on the spot over inaccuracies in the student’s data uploaded in NEMIS, irregular transfer of funds to Kessha, failure to prequalify suppliers and irregular procurement of infrastructure projects.

In the case of Ole Tipis Girls School in Narok County, the report raises concerns over irregularities in accounting for receipt books, procurement of tuition supplies, and procurement of the construction of a double-storey twin laboratory and classrooms block.