Government schools ordered to return term two funds

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The Ministry of Finance has directed all accounting officers and local governments to refund money that was transferred to government-aided schools as capitation grant for the second term.

A July 22 circular from the ministry’s Permanent Secretary, Mr Keith Muhakanizi, indicates that the funds that were released for the second term of 2020/2021 academic year were part of the last release of the 2019/2020 Financial Year and were to be spent by schools for the second term.

Mr Muhakanizi said since schools are still closed by the government following the outbreak of Covid-19 and students did not study the second term, all the money must be refunded.

“You were instructed to use the funds only when the government instructs the schools to open for second term. Considering that the schools did not open for second term and the financial year came to an end on June 30, you are instructed to return the funds intact,” he said.

“Submit the documentation confirming the remittance of funds to the Consolidated Fund in Bank of Uganda for all the schools under your votes to this ministry for attention of Director Budget within two weeks in any case not later than August 6,” Mr Muhakanizi directed.

The Ministry of Education spokesperson, Mr Patrick Muinda, said government-aided secondary school get Shs88,000 for each A-level student and Shs55,000 for O-Level student as capitation grant per term. He did not give the total enrolment number of students in government secondary schools, so we were unable to calculate the total amount of money they are required to return to the treasury.

Source: Daily Monitor

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