Millions in CDF bursaries unaccounted for- Auditor's report

Auditor General Nancy Gathungu has once again raised concerns over the expenditure of bursary funds amounting to millions of shillings across several constituencies.

In her report for the financial year ending June 2024, Gathungu noted that these constituencies failed to submit key supporting documents for payments made to secondary schools and tertiary institutions.

A review of over 50 payments made through the National Government-Constituencies Development Fund (NG-CDF) revealed that bursaries were disbursed without providing essential documentation to auditors.

Missing records included beneficiary lists for secondary schools, cheque dispatch registers, and acknowledgement letters from the recipient institutions.

Among the constituencies cited are Mbeere South, represented by Bernard Muriuki; Balambala (Shurie Abdi); Baringo North (Joseph Makilap); Bomachoge Chache (Alfah Miruka); Rongai (Paul Kibet) and Samburu West (Naisula Lesuuda).

Others are Lafey (Abdirahman Mohamed); Mandera West (Adan Haji); Mandera South (Haro Abdul); Nyakach (Aduma Owuor); Emurua Dikirr (Johana Ngeno); and Baringo Central (Joshua Kandie).

In Mbeere South, for example, a report has raised questions about the expenditure of over Sh56.7 million on bursaries—approximately Sh35 million allocated to secondary schools and Sh21.7 million directed toward tertiary institutions.

The audit report notes that the list of bursary applicants, along with acknowledgment letters and receipts, were not submitted for review.

This contravenes Regulation 104(1) of the Public Finance Management (National Government) Regulations, 2015.

“As a result, the accuracy, completeness, and value for money of the bursary disbursement totaling Sh56,771,223 could not be verified,” the report states.

In Baringo Central, the report highlights concerns over bursary expenditures amounting to Sh61.8 million—of which Sh36.5 million was allocated to secondary schools and Sh25.3 million to tertiary institutions.

The report indicates that the bursary disbursements lacked supporting acknowledgment receipts to verify whether the funds were credited to the respective school or college fee accounts of the intended beneficiaries.

“As such, it was not possible to ascertain whether the bursary funds were used for their intended purpose,” the report states.

Consequently, the legitimacy of the bursary payments—Sh36,537,302 for secondary schools and Sh25,329,679 for tertiary institutions—could not be confirmed.

“Additionally, the management was found to be in breach of the law,” the report concludes.

In Balambala, the report raises concerns over unsupported grants totaling Sh4.5 million.

The disbursements lacked acknowledgment receipts and student fee statements from the institutions that received the bursaries.

Similarly, in Baringo North, secondary school bursaries amounting to Sh40.3 million could not be verified due to the absence of ward vetting committee minutes, acknowledgment letters from schools, and student application forms, all of which were not made available for audit.

In Bomachoge Chache, the report highlights a discrepancy in bursary allocations. Of the Sh85 million disbursed under grants and other transfers, Sh56.1 million was reportedly allocated to secondary schools.

However, the list of secondary school beneficiaries accounted for only Sh39.8 million, leaving an unreconciled variance of Sh16.3 million.

The report further notes that the list of individual bursary beneficiaries in tertiary institutions, amounting to Sh19.3 million, was not availed for audit.

In addition, acknowledgment letters from both secondary schools and tertiary institutions that received the funds were missing.

“As a result, the accuracy, completeness, and authenticity of the bursary disbursements totaling Sh85,041,749 could not be verified,” the report states.