Government schools ordered to return term two funds

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.

He said in government-aided primary schools, each pupil gets Shs17,000 per year and there are eight million pupils, which translates into Shs136b for pupils in all public primary schools.

“We are going to do the coordination to ensure all schools and local governments comply and have the money refunded…,” Mr Muinda said.

Capitation grants are used on instructional materials, co-curricular activities, school maintenance, and payment for utilities such as electricity and water, among others.

However, the Uganda National Teachers’ Union (Unatu), said schools will not return all the capitation money because they are spending the money on a number of things.

Unatu secretary general Filbert Baguma said schools have to be maintained even if they are closed. He said they have to spend on electricity, clean school compounds and pay security guards to protect the premises among others.
Head-teachers have also protested the government decision to refund capitation grants.

“The head teachers are protesting the letter from the PS Finance. They have said it is a sign that there are people in this country who don’t appreciate and understand how schools are run. Even when schools are closed, there are overhead costs,” Mr Martine Okiria Obore, the chairperson of the Association of Secondary School Headteachers, said yesterday.

Background
All schools across the country were closed in March to minimise the spread of coronavirus. To date, schools have not yet been opened.
President Museveni in his latest address, last week, said the government will make a final decision on the reopening of schools before September.
The Ministry of Health has also come up with a list of Standard Operating Procedures with a proposal that may include each class having not more than 15 learners when schools reopen.