Rongo University on spot over ‘missing millions’ - Daily Nation

Rongo University on spot over ‘missing millions’

Sunday March 24 2019

public funds

Auditor-General Edward Ouko in a past function. PHOTO | FILE | NATION MEDIA GROUP 

By OUMA WANZALA
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Rongo University is on the spot over misappropriation of millions of shillings, a report tabled in Parliament by Auditor-General Edward Ouko shows.

In the report Mr Ouko says the university’s budget and expenditure did not tally.

“The sum of purchase of non-current asset, development expenses and retention fees paid is Sh160 million which differs with the addition of Sh189 million resulting in unexplained difference of Sh28 million,” reads the report.

Mr Ouko says the net cash flow from operating activities indicated as Sh10.5 million and differed with amount of Sh21 million which was provided in the financial statement.

Mr Ouko also says financial statement indicates that student’s debtors as at June 2016 totalled Sh200 million, however, the aged analysis of the debtors provided to support the amount had credit balance of Sh28 million.

Further, a provision of doubtful debts of Sh4.5million was not supported by working based on the University’s debt policy as the ledger amounts also indicates that the student debtors as totalling to Sh131million resulting in unexplained variance of Sh68 million.

“Consequently, the accuracy of the student debtors brought forward figure of Sh200 million could not be confirmed,” says Mr Ouko.

The university also failed to provide details on Sh5 million caution money owed to students.

The university was also unable to explain academic costing of Sh101 million as documents provided only indicated Sh89 million resulting in an unexplained variance of Sh12 million.

The University also deposited Sh7.4 million grant from McKnight Foundation into its Rongo University PSSP KCB account instead of opening a new account.