THE Auditor General says Mulungushi University has been operating on losses since 2013.
And Mulungushi University owes ZRA and NAPSA over K20 million in PAYE and other contributions.
According to the Auditor General’s report on parastatal bodies and other statutory institutions for the year ended December 31, 2015, the institution had recorded operation deficits for the past three years due to rising staff costs.
“As can be seen from the financial statements, the University recorded operating deficits of K2,705,508 in 2013, K4,817,800 in 2014 and K4, 076,215 in 2015.The deficits were mostly due to rising staff cost,” the Auditor General stated.
The report also indicated that there had been a sharp increase in part time allowances from K61,640 in 2014 to K1,644,638 in 2015.
The Report further revealed that Mulungushi University recorded an increase in its administrative costs per student ratio.
“A comparison of the average administrative cost per student computed by dividing the total administration cost by the number of students registered in each academic year revealed that although the number of registered students was increasing, the administrative cost per student was also increasing,” read the report in part.
“The average administration cost per student increased from K23, 026 in 2013 to K27, 880 in 2015 representing a percentage increase of 21 per cent. In this regard, despite the increase in the number of students from 3,255 in 2013 to 3,714 in 2015 representing a percentage increase in 14 per cent the University did not manage to cover administration costs per student efficiently.”
And the Auditor General revealed that the university had not paid some of its statutory obligations.
“During the period under review, amounts totaling K21,388,918 were deducted as Pay As You Earn (PAYE) and NAPSA contributions from its employees’ emoluments. However, as of September 2016, the amounts had not been remitted to the respective institutions; ZRA, K16,956,161 and NAPSA, K4,432,757,” read the audit report.