Management of Capitation Grants in Public Schools

This performance audit aimed to assess whether the Prime Minister's Office - Regional Administration and Local Government (PMO–RALG) adequately manages capitation grants provided by the government to cover operational activities and support the acquisition of textbooks, thereby ensuring equal access to quality education.

The audit found inadequate management of capitation grants in public schools. This was evidenced by persistent of budget deficits in the allocation of funds for the acquisition of textbooks relative to student enrolment figures reported in the annual school census; mismatch between the disbursed capitation grants and the number of enrolled students; use of incorrect rates in the calculation of the capitation grants disbursed to public schools; and unrelated expenditures of the allocated capitation grants to cover for operating expenses as well as for the acquisition of textbooks.

The audit recommended that PMO-RALG compute capitation grants using approved rates and official statistics on enrolled students, order textbooks for the intended beneficiaries of capitation grants, and ensure that capitation grant funds are used for their intended purpose at the PMO-RALG and at the school level.