Proposal for URA to collect school fees draws wide range of criticism

Kampala, Uganda | THE INDEPENDENT | A Ministry of Education and Sports’ proposal to transfer the responsibility of collecting school fees in public and government-aided schools to the Uganda Revenue Authority (URA) has been criticised by parents, school administrators, and education experts.

In a new draft policy on Universal Primary Education (UPE) and Universal Secondary Education (USE), the ministry emphasized that while UPE and USE will remain free of charge, any additional charges or fees approved by the ministry will be collected by URA. This approach, the policy states, aims to streamline the collection process and improve financial oversight.

Joseph Ssembuusi, a parent, argues that URA’s involvement could introduce new challenges rather than solve existing ones. Ssembusi argues that schools are likely to be affected as they wait for releases from the government which many times delayed yet some demands need to be fulfilled.

Jackie Nalubega, a resident of Mulago, also noted that the concept might harm public schools, which are already struggling due to insufficient government funding.

“The few public schools that are still operating are supported by the minimal fees collected from parents. Now the government wants to take that away too, and there will be delays in returning it. This will only lead to chaos in schools,” Nalubega said.

However, Nalubega acknowledged that the move could have some positive aspects, such as ensuring that funds are properly allocated to educational purposes. “While there are concerns, this system might help ensure that the money collected is used appropriately for education-related matters,” Nalubega noted.

“There have been instances where some headteachers and school management committees have misused the fees collected.”

The concept of centralized fee collection for primary and secondary schools was initially proposed by the National Planning Authority in early 2023 as part of their submission to the Nuwe Amanya Mushega-led Education Policy Review Commission.

“All fees and charges by any public education and training institution should be remitted to the consolidated fund and never should there be spending at source without an approved budget,” the NPA issues paper on Uganda’s education reforms reads in part.

According to the National Planning Authority’s (NPA) paper, if the proposed centralized fee collection system is implemented, all public education and training institutions would be required to maintain a single official bank account.

The NPA’s suggestion, which emerged amidst growing public concern over rising school fees, also includes a proposal to restrict public education institutions from incurring debt without prior approval from the relevant authorities, as well as to curb unwanted increases in fees and charges.

However, the concept was not entirely new; it was first introduced in universities in 2019 after it was found that some fees were being misused or underreported thus the e decision to channel fees through a single account aimed at minimizing such abuses.

Here are the facts:

– This is still a proposal in the new education policy that haven’t been past yet and therefore its not law.

– payments of fees will only be through the URA System as NTR (Non tax revenue. It doesn’t require one to use a TIN. pic.twitter.com/GQQubJ0Jzp

— Robert Kalumba (@rkalumba1) August 31, 2024

Filbert Baguma, the Uganda National Teachers’ Union General Secretary, said the proposed policy is self-defeating.

He pointed out the contradiction in the government’s stance that Universal Primary Education (UPE) and Universal Secondary Education (USE) are supposed to be free, while simultaneously allowing for fees and charges that would be collected by URA.

“The government needs to clarify this matter,” Baguma stated. “It’s contradictory to claim that education is free and then suggest that URA will collect fees in some schools. What exactly will URA be collecting if there are no fees?” Baguma also questioned the effectiveness of URA’s fee collection system, which is already in place in universities.

“We haven’t been informed about how well this system is working in universities,” he said. “Before implementing this policy, there needs to be a thorough study to determine if collecting fees through URA will be effective in the context of secondary and primary schools, given the diverse issues across the country.”

He raised concerns about potential delays in remitting collected fees to schools and the practical challenges parents might face, such as paying small amounts in installments. “What problem is the government trying to solve by having URA collect school fees?” he asked, emphasizing the need for clear answers and a detailed examination of the policy’s implications.

Geoffrey Birungi, headteacher of Mbarara secondary school, acknowledged that while URA collecting school fees may not pose a problem in itself, the timely release of funds is crucial. He warns that failure to address this issue could severely disrupt educational institutions.

“We’ve seen local governments and universities using this system report delays in fund disbursement,” Geoffrey said. “Such delays can be problematic, especially if funds are needed urgently for essential teaching and learning resources. For instance, some funds collected by the PTA are used for teacher salaries, school feeding programs, and purchasing educational materials.”

He also highlighted that delays could lead to significant issues within schools. “Sometimes, we need immediate funds for seemingly minor expenses, like replacing a burst ball. Delays in addressing these needs can lead to bigger problems, such as student unrest or disruptions like strikes and even school fires,” he added.

Many headteachers interviewed for this story, while choosing to remain anonymous, voiced concerns similar to those expressed by Birungi. They expressed strong reservations about the proposal, fearing it could create additional challenges for educational institutions.

“The government has failed to adequately fund schools and now wants to control the limited funds raised by parents,” one headteacher noted. “Schools will then be left begging for the money that was raised by parents, and we will be at the mercy of central government officials regarding when we receive these funds.”

The Bible says in Proverbs 12:12; The Lord detests lying Lips but he delights in people who are trustworthy! Here is the truth;

– No URA Staff in school bursars’ offices. They’ve never been there and will never be there.

– No URA Staff in supermarkets mbu looking at receipts! pic.twitter.com/7BBxB0xiCQ

— Robert Kalumba (@rkalumba1) September 2, 2024

The concept of centralized fee collection is not new; it was first introduced in universities in 2019 following issues of fee misuse and underreporting. The decision to manage fee collection through a single account held by the Uganda Revenue Authority (URA) was implemented to reduce such abuses and enhance financial oversight.

When the policy proposal was published in one of the newspapers, there was circulating misinformation on social media suggesting that individuals will need a TIN and pay through the Electronic Fiscal Receipting and Invoicing System-EFRIS, which is not accurate.

If the policy is approved, the school fees which will be considered as non-tax revenues will instead be paid using a Payment Reference Number (PRN). At universities, this PRN can be generated through the individual student portal.

Prof. George Ladar Openyjuru, Vice Chancellor of Gulu University, shared his insights on the centralized fee collection system, drawing from his experience with its implementation at the university level. Despite ongoing debates about the system, Prof. Openyjuru believes it has proven beneficial in terms of accountability and financial management.

According to him, the URA system, while often discussed without full understanding, has significantly improved financial oversight. “During its use at universities, the system helped increase fee collection and reduced under-the-table negotiations commonly conducted by some bursars,” he noted.

However, he acknowledged that the impact of the system might differ between universities and primary or secondary schools. One issue he pointed out is that when a school raises more money than originally budgeted, the surplus funds are not refunded to the school. For instance, if a school aims to collect 10 million Shillings but collects 15 million Shillings, the extra 5 million Shillings is not returned. Additionally, Prof. Openyjuru acknowledged that delays in fund disbursement do happen.

*****

URN