Educational Institutions linked to SACCOs urged not to bow to borrowing pressure

Kampala Uganda: Educational Institutions that are members to particular SACCO groups should desist from being wooed to borrow by the School Board Members, a Certified Public Accounts (CPA) expert and educationist has advised.

Speaking during the Institute of Certified Public Accountants of Uganda (ICPAU) Educational Institutions seminar held at Hotel Africana on Wednesday, CPA Denis Tuyramureeba said headteachers of schools that are members of SACCO groups should be very careful when deciding to borrow.

Turyamureeba the Headteacher, Sacred Heart Mushanga Secondary School in Sheema Municipality said: “Some of the members of the board may be a member of some SACCO Group near a school and may influence you (school) to borrow. But when they call you to PAC, they will not be next to you to defend you, so stand your ground as a Headteacher because as one, your role is to guide the board not to be bowed by their pressure.”

He advised the participants that included head teachers, school bursars, and accountants to be prepared to pay any loan before they venture into borrowing.

“Before you borrow be prepared to pay. Regulations running schools indicate that a school should not have two loans running at the same time. Have one loan at a time (avoid multiple borrowing),” said Turyamureeba who also doubles as the CPA chairperson for Western Uganda.

He advised the school heads to have contracts and supply agreements with suppliers

“Don’t over committee yourself that in one day you will pay. Develop effective management of debtors by promising to pay them at a shorter time. If you have promised suppliers money in one months’ time, give parents shorter grace periods so that the money coming in is faster than the money going out,” he said. Turyamureeba was giving a keynote presentation on Debt Management in Educational Institutions.

Earlier the participants who also included Auditors of education institutions; Principals, Head Teachers/ School and other Higher Education Institution Administrators; Board Chairpersons; PTA Chairpersons and Treasurers; Finance Committee Chairpersons & Secretaries; Administrators in Charge of Finance/School and other Education Institution Bursars; Finance Staff; Procurement officers; Consultants; Accountancy Trainers; Academicians and Students were also tipped on budgeting and budgetary control in Educational Institutions by CPA Benson Barigye. The Chief Internal Auditor, Makerere University.

Barigye gave the participants importance’s of budgeting and the value of sticking to the budget made.

“A budget is important to an educational institution in that it ensures that actions are carried out according to a budget plan. When an institution uses a budget, its programs are implemented according to plans and objectives,” said Barigye.

He noted that If institutions don’t budget, they won’t have control of their  expenditure (controlling income and expenditure)

“It is very important to establish priorities and set targets. Budgeting should always be done way ahead of time so as to plan accordingly,” said Barigye.

He said the attributes of a good budget includes addressing the Enterprise Goals, having a motivating Tool and should be supported by the management.

“A good budget must be flexible, realistic and clear,” he said

He urged school accountants and owners to always determine the objectives, policies and plan way in advance.

“Keep proper book of accounts- weakness in accounting and record keeping will lead to budget control failures. Develop and maintain an effective communication system and feedback mechanism between levels and segments of the institution

Keep a constant watch over expenditure as a means of budgetary control,” he said.

Barigye warned that lack of cooperation and the failure to involve the participation of all members and executive leads to failure.

CPA Timothy Basiimampora Tirwomwe, a Partner at Goldgate presented a paper on “Compliance with Tax and NSSF Laws and other statutory requirements”.

Related Articles

Leave a Reply

Back to top button