Murang’a Teachers Training College has defended its financial records before MPs, outlining steps taken to resolve audit concerns raised by the Office of the Auditor-General for the year ending June 30, 2025.
Appearing before the National Assembly Public Investments Committee on Education and Governance, the institution detailed actions taken to address queries ranging from asset valuation gaps and budget absorption challenges to payroll and compliance issues, while assuring lawmakers that corrective measures are already in motion.
The audit flagged the absence of proper valuation reports for key assets, noting that land valued at Sh300 million and biological assets worth Sh962,000 were not backed by documentation, casting doubt on the accuracy of the figures.
The report stated, “The value of the land is not supported by a valuation report, and in the circumstances, the accuracy and completeness of the value of land estimated at Sh.300,000,000 and biological assets amounting to Sh962,000 could not be confirmed.”
In response, principal Purity Ngure linked the delay to ongoing land subdivision involving a primary school situated on the institution’s land. She told MPs that the valuation process has already begun.
“Currently, the Management has started the process and has sent and received communication from the government valuer,” Ngure told the lawmakers.
Management further confirmed that a formal request had been made to the County Land Valuation Office to complete the exercise.
On budget performance, the audit highlighted an under-absorption of Sh37.6 million, equivalent to 27 percent of funds received, warning that this could have affected planned activities and service delivery.
“The under absorption may have affected the planning activities for the year and may have impacted negatively on service delivery to the public.”
Ngure attributed the unspent funds to delays in ongoing infrastructure works, including classrooms and a dining hall.
“The under-utilised amount of Sh37,654,213 was meant to complete 12 classrooms and a dining hall, which have been delayed due to technical reasons.”
She assured the committee that the institution has taken note of the issue and will improve budget execution.
The audit also raised concerns about the legality of certain expenditures, particularly increased allowances for members of the Board of Management that were approved without a clear legal basis.
According to the report, “Review of the Board of Management (BoM) minutes of the full board dated 09 December, 2022 under Min. BOM. 08/12/2022 on compensation for travel to attend BoM Meetings concluded with Members approving the review of allowances upwards so that Members of the Board be paid allowances from Sh7,000 to Sh9,000 while the Chair of the Board from Sh9,000 to Sh11,000.”
However, the Auditor-General questioned the legality of the payments, stating, “The allowances were paid based on the recommendations of the Committees; however, the rates were not supported by any law, and in the circumstances, regularity and value for money on the payments made could not be confirmed.”
Further scrutiny revealed gaps in financial reporting, with the institution failing to comply with International Public Sector Accounting Standards in the disclosure of biological assets.
“Management did not disclose the methods and significant assumptions applied in determining the fair value of each group of biological assets as required under Paragraphs 38 to 51 of the International Public Sector Accounting Standards (IPSAS),” OAG noted.
Lawmakers raised concerns over transparency and adherence to accepted reporting standards, pressing the institution for clarity.
The audit also exposed payroll irregularities, where six temporary teaching staff were paid outside the official payroll system, with a total of Sh2,234,000 processed without statutory deductions.
“The payments were paid as gross amounts without deducting statutory deductions such as PAYE, NSSF, SHIF and Housing Levy contrary to the existing laws on deductions and remittances of statutory deductions.”
The college’s submission is now under parliamentary review as part of ongoing oversight into the management of public funds by state institutions.