UB enrollments drop 23%, revenues face south
Baboki Kayawe | Thursday June 29, 2017 16:22
The recently released report, covering the financial year to March 31, 2016 indicates enrollments at the institution fell from 18,176 in 2014 to 14,040 in 2016, leading the UB to deficits.
According to the report, during the year under review, the University recorded a deficit of P624.76 million, compared to P1.95 million in the previous year. Though the deficit is mainly attributed to an increase in staff costs due to introduction of housing and travel allowances, the Auditor General noted that the decline in enrolments was also a major driver.
“The University has, for the fourth year running, recorded a deficit which led to negative accumulated retained earnings. Revenue from tuition and other students fees has, over the last three years declined as the student numbers dropped by 23 percent,” the Auditor General, Pulane Letebele said.
Even as the UB has reached out for government assistance, a recent Public Accounts Committee found that the Ministry of Tertiary Education, Research, Science and Technology owed the institution P500 million in tuition fees. Legislators have accused government of neglecting the UB and instead channeling funding to private tertiary education providers. Government on the other hand, says the UB has had poor administration, which has contributed to lower enrollments as the institution has lost its allure.
Letebele identified instances where the prevailing students application fee structure was not applied, which led to inaccurate recognition of income.
Moreover, the auditors noted that some self-sponsored students only registered and paid for a sufficient number of modules that enabled them to register and be unblocked. Later, these students registered for additional modules at their faculties without paying for them.
“This may result in the University losing income,” Letebele said.
Responding in the Auditor General’s report, UB management said going forward all prospective students will be required to produce their national identity cards to establish the appropriate fee when paying for application fees.
“In addition, a new system is being tested that will block students from registering for more subjects than they paid for,” UB management said. The Auditor General also noted that some persons or tenants were using the university property without fees being collected from them and that monthly rental fees were not clearly spelt in the agreements.
Auditors also noted significant delays of up to two years relating to retirement of imprests and advances by staff. In response management stated that deductions will be initiated against salary for all affected staff.
The auditors also noted long outstanding receivable balances from former employees who had resigned from the University and that some of the balances had been referred to the legal services for collection more than five years ago but without success.
In response management stated that the outstanding balances related to guaranteed loans that the University used to provide to staff and these had been handed over to legal services for appropriate action.