19 April 2017

Tanzania: Schools Get Only 72% of Money

Dar es Salaam — Only Sh5.184 billion out of Sh7.218 billion, which was set aside as capitation grant, was released, the Controller and Auditor General (CAG) shows.

The amount, according to the 2015/16 CAG Report, is the equivalent of 72 per cent.

The CAG says an audit conducted in 22 district and municipal councils failed to find documentary evidence to show whether the money was spent as had been intended. The CAG also reveals that most of the 22 district and municipal councils did not have qualified accountants.

According to the report, a review on the implementation of free education policy and management of capitation funds in the local authorities have been conducted in order to determine its progress and check whether there was a proper administration and accountability of capitation funds at the council level and those transferred directly to the schools.

The government had in 2015 introduced a free education policy with Sh137 billion disbursed every month.

But the report shows that despite the successes achieved under the new arrangement, there were still weaknesses that needed attention for improvement, such as lack of adequate follow up by authorities on funds utilisation and inadequate funds released when compared to pre-determined rates per students in both primary and secondary schools. "Also arrange for a notification mechanism to the LGAs when funds are transferred to schools to facilitate follow up of disbursed funds as well as audit of the funds by both internal and external auditors.

"And institute effective follow up and monitoring strategy on the utilisation of capitation grants transferred to schools including allocating accountants to schools and provision of training to the available accountants," showed the report.

Meanwhile, the report indicates that despite efforts by the Higher Learning Students' Loans Board (HESLB) to track beneficiaries to service their loans, the review of sample 73 LGA's audited did not identify and notify HESLB about employees who benefited from loans issued by the board nor were deductions made on their salaries and remitted.

The report shows that under Section 20 (1) and (2) of the HESLB Act No.9 of 2004 requires the employer of any loan beneficiary, in this case LGAs, to notify the board on the employment of the beneficiary within the period as may be prescribed, and arrange with loan beneficiaries for a monthly deductions and remittance of loan repayment instalments to the board among others.


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