Auditor General Nancy Gathungu appears before the Senate Committee on County Public Investments and Special Funds /HANDOUT
Auditor General Nancy Gathungu has told school heads to respond to audit queries and stop shifting attention to the integrity of auditors as Parliament intensifies scrutiny of the management of public funds in schools.
The Office of the Auditor General said it had flagged a range of issues in schools since it began auditing them in the 2022/2023 financial year, including weaknesses in financial record-keeping, funding, enrolment records, expenditure management, risk management and compliance with laws and regulations.
The statement came as the National Assembly Public Investments Committee on Governance and Education continues questioning school heads over audit reports covering the 2020/2021 to 2024/2025 financial years.
The committee has in recent weeks questioned heads of several schools over financial decisions, including millions of shillings paid to the Kenya Secondary School Heads Association (KESSHA) for co-curricular activities and funds raised from parents through support programmes.
The school heads appearing before the committee have maintained that some of the decisions were made with the consent and approval of parents and boards of management.
The committee, however, has maintained that approval by parents or boards does not replace the statutory requirement for authorisation by the Ministry of Education where such approval is required.
MPs have also questioned schools over additional charges imposed on learners without prior ministry approval.
The committee has warned that such collections may amount to unauthorised fees under the Basic Education Regulations, 2015.
The parliamentary scrutiny follows audit findings that have brought the financial management of public secondary schools under closer examination.
The committee is mandated to examine Auditor General reports relating to public investments and their management.
In its statement, Gathungu said no public entity was exempt from accountability, transparency and good governance in the use and management of public resources.
“We, therefore, urge the School Heads to respond to the audit findings in our reports, as other public entities have been doing, and desist from deflecting attention from the audit issues raised.”
The office said resolving the issues would help schools improve their management and support the education needs of learners.
The statement followed reports carried by a section of the media that cast aspersions on the integrity of auditors involved in the scrutiny of school finances.
The Auditor General said her office treated allegations concerning the conduct of its staff seriously, maintaining that it had internal mechanisms for addressing complaints when raised.
She urged anyone with concerns about the conduct of auditors to use the available channels, including reporting alleged misconduct to relevant investigative agencies such as the Ethics and Anti-Corruption Commission.
The Office of the Auditor General said its constitutional responsibility was to audit the use and management of public resources and report its findings and recommendations to Parliament and county assemblies, and ultimately to citizens.
It cited a 2022 High Court judgment which affirmed that public funds transferred to private entities remain subject to audit by the Auditor General because they retain their public character.
The office said it also provides advisory audit services to public entities to strengthen internal controls, improve compliance with laws and regulations, maintain financial records and address weaknesses affecting service delivery.
The parliamentary scrutiny of schools has already exposed questions over payments to KESSHA, with MPs seeking explanations over the legal basis for the transfers and how the money is accounted for.
The committee has also questioned principals over additional levies collected from parents, with lawmakers insisting that schools must obtain the required government approval before imposing charges outside the authorised fees.
The Auditor General said the audit process was intended not only to identify weaknesses but also to help public entities improve their financial management and service delivery.
The office urged school heads to engage with the findings and recommendations contained in the audit reports as the parliamentary examination continues.
