Makerere University Officials Grilled Over Non-disclosure of Taxes

Makerere University Staff were on Wednesday tasked to explain why they did not disclose receivables from uncollected tax revenues especially unpaid fees from students.

 

Appearing before the Public Accounts Committee, the officials led by the University Secretary David Kahundha Muhwezi failed to clearly explain why some of the students’ payments were not being paid in accordance with the reporting system.

 

According to the Auditor General’s report 2010/2011 the statement of financial performance is supposed to be prepared in accrual basis with regard to non-tax revenue which was not followed. This is provided for in sections 4(a), (d) and (e) of part 11 of the financial management guidelines for public Universities issued in December 2009 by the Ministry of Finance.

 

The PAC lead counsel Kwizera Eddie MP Bufumbira East noted that it portrays a wrong picture for them not to make full disclosure of the receivables.

 

The University Bursar Joshua Karamagi explained that the accounting policy they have been following on revenue has been cash based and they only recognize money received in the bank as revenue. Currently the only way to follow up which students have paid and not paid is to print statements.

//Cue in: “Tell us why…

Cue out:…stand-alone system.”//

According to the Auditor General’s report, Makerere University has assets and cash equivalents of 13.7 billion while receivables are 3.7 billion shillings. Kwizera wondered if these were the actual disclosure of the monies, but Karamagi had no documents to show proof.

 

//Cue in: “Why don’t you…

Cue out:…cannot help you.”//

 

Meanwhile the Makerere officials were also grilled over outstanding administrative advances worth 3.7 billion shillings which remain unretired by the close of the year. This amount included 3 billion that was outstanding at the end of the previous year.

 

In response Karamagi stated that they had followed up and out of the balance of 3.2 million has been accounted for and they were making follow ups to recover the 419million shillings. However, this can only be done on direction of the University secretary.

 

//Cue in: “We realized that…

Cue out:…the latest correspondence.’//

 

Muhwezi then read out a letter that he wrote to the bursars’ office directing him to follow up on all individuals who owe them money.