MoE Circular On Financial Management Of Schools. New financial management guidelines have been made available to educational institutions across the country by the Ministry of Education.
Several memos from county directors to school heads regarding this information that the Education Board could see state that the Board of Management (BoM) ought to have approved budget estimates of revenue and expenditure for the institutions, along with a procurement strategy based on the approved budget.
One of the directors notes in a memo to school heads that “a Board of Management of a public institution of basic education is required to prepare annual estimates of revenue and expenditure for the institution under its charge, in such form and at such times as the Cabinet Secretary shall prescribe, as per Section 16(1) of Part 1 of the Fourth Schedule of Basic Education Act, 2013.”
In addition, during each quarter of the fiscal year, the heads of the schools are directed to compose a report within 15 days following the end of the allotted time. In addition, the memo stipulates that “no later than 15 days after the end of each quarter, your institution must ensure that it prepares monthly trial balances and submits them to the County Director of Education (CDE) through respective Sub-County Directors of Education.”
MoE Circular On Financial Management Of Schools
The Ministry has directed the principals to ensure that any cash survey to ascertain the accuracy and completeness of cash on hand is conducted and documented, and that the monthly bank reconciliations are finished as soon as feasible at the end of each month.
They must also submit the accounts for the revenue received and collected during each fiscal year for audit no later than three months after the end of that fiscal year. In addition, the principals are directed to follow the instructions found in the circulars dated January 30, 2019, February 12, 2020, and any upcoming circulars concerning the approval processes for Transitional Infrastructure Grants (TIG) and Maintenance and Improvement Funds (MIF).
The directive was sent out only a few days after CS Machogu revealed that school principals will soon be testifying before parliamentary committees to address questions about the finance of their individual establishments.
Speaking at the KESSHA conference closing in Mombasa, Machogu said that schools are now considered an entity under government oversight, reporting to Parliament. “My friends, we live in a developing world.
And Machogu would no longer be answering questions on your behalf because secondary schools are now audit units, he said. Rather than having the Education CS or Principal Secretary answer questions on their behalf as is the case now, he said, legislative committees will invite principals to respond.
If the head teachers continued to enforce levies that were not approved, the CS threatened to call them before the parliamentary committee. This was a serious warning from the CS.
MoE Circular On Financial Management Of Schools