FDE demands explanation from colleges over lapse of funds

ISLAMABAD: The Federal Directorate of Education (FDE) has asked the principals of eight colleges to explain why funds were not available before the end of the fiscal year 2020-21.

According to sources, FDE's director of Finance and Audit recently sent a letter to the heads of eight institutions, requesting justification for not using or surrendering funds before the fiscal year's conclusion.

'Upon investigation of educational institution expenses, it was discovered that eight colleges had surrendered over Rs1 million cash,' according to FDE authorities.

Despite repeated warnings to surrender savings or budget usage before the deadline, the message stated: At the end of the previous fiscal year 2020–21, the above-mentioned institutions had expired funds totaling over Rs1 million.

“A precondition for Financial Management is the timely use of funds and surrender of savings. The FDE's letter stated, "It is therefore required to be justified as to why the Directorate's orders were not followed, resulting in available money lapsed that could have been used to decrease other liabilities, particularly on account of rent for residential buildings, which is sky high."

The FDE instructed the principals to submit their responses so that they could be presented to the Director General.

The FDE is a governing organisation that oversees Islamabad's 423 colleges and schools.

Interestingly, school and college presidents frequently complain about a lack of funding. However, in this case, the funds were forfeited to the federal government.