Nairobi streamlines bursary fund after Maryland error
What you need to know:
- Currently, the two signatories for the Bursary Fund Account are the chief finance officer and the head of treasury (accounting), not the education chief officer.
- There was uproar in May 2018 after City Hall erroneously transferred Sh357 million meant for bursaries to an account in Maryland.
- The minister has also been told to put in place stringent measures to improve invoicing, validation and examination of all payments to prevent such errors.
Nairobi County's finance minister has a week to designate the education chief officer as the administrator of City Hall’s Bursary Fund.
Currently, the two signatories for the Bursary Fund Account are the chief finance officer and the head of treasury (accounting), not the education chief officer.
Budget and Appropriation’s Committee chair Robert Mbatia said the move will see the finance department seized of matters concerning the bursary fund, following complaints of lack of control by the education team.
There was uproar in May 2018 after City Hall erroneously transferred Sh357 million meant for bursaries to a wrong county account.
The fund was transferred to the Nairobi City County/ University of Maryland Health Services account (number 011412323966111) instead of the Nairobi City County Bursary Fund account (number 011412323966112).
STRICT MEASURES
The minister has also been told to put in place stringent measures to improve invoicing, validation and examination of all payments to ensure the acts of omission or commission that led to the erroneous payment do not recur.
Mr Mbatia explained that going forward, the county shall not engage external entities in the writing of cheques for issuance as bursaries.
He spoke on Thursday while tabling the committee's report on the irregular transfer of bursary funds to the Maryland account
Last year, the county paid Cooperative Bank more than Sh3 million for writing bursary cheques at a cost of Sh50 per cheque.
DONATIONS
At the same time, all grants and donations received for and on behalf of the county government must be paid into the County Revenue Fund.
“Pursuant to provisions of Section 139 of the PFM Act, 2012 and regulation 70 of the PFM (County Government) Regulations 2015, the county finance executive must immediately submit to the county assembly draft regulations on the administration, control and management of grants for review and approval,” Mr Mbatia said.
The executive will also be required to present before the assembly all grants and donations received for and on behalf of Nairobi.
This will be for adoption before commencement of any disbursements.
