Eldoret varsity put on the spot over Sh856m assets and financial flaws

Auditor General Edward Ouko has questioned the validity of assets worth about Sh856 million at the University of Eldoret and flagged a series of financial flaws.

Ouko said in his latest audit report that the institution's financial statements indicated the transfer of assets from Moi University, but no valuation report was given to support the transfer.

The university explained that the valuation work had been given to a consultant, but Ouko said no evidence was given by the time of the audit. The university was initially a campus then constituent university college of Moi University under the name Chepkoilel. 

“The validity and accuracy of the property, plant and equipment net value of Sh856.3 million as at June 30, 2016, could not be confirmed,” he said.

Ouko queried an extra expenditure of Sh14.6 million on the School of Education complex. No evidence was provided to show the expenditure had been approved. The project was to cost Sh159 million but the contractor was paid Sh173 million.

Another Sh13 million was spent on the procurement of an Integrated Resource Planning Software. The project was not fully implemented by the consultant awarded the tender.

The report further questioned why the university had been unable to collect outstanding Sh11.6 million imprest from staff. He also highlighted unsupported expenditures on support services.  The university used Sh193 million, Sh42 million more than the budget allocation of Sh151 million.

The institution has also failed to remit Sh115 million statutory deductions. 

"The university did not explain why the statutory deductions had not been remitted and, hence, it was acting in breach of the law,” the report reads.

In staffing, the university had nine members of the council, eight senior management staff, and another 931 employees. More than 51 per cent of employees are from one ethnic group, contrary to the law.

Vice-chancellor Teresia Akenga, in her report, said the student enrolment at the university at the time of the audit stood at 15,244. She said the university had received from the exchequer Sh1.1 billion for recurrent expenditure and another Sh1 billion revenue was internally generated, especially through student fees.

Sh685.9 billion was generated from students in the privately sponsored student programmes, Sh47 million from accommodation fees and another Sh270 million from other student levies. The university had a total income of Sh2.1 billion.