• Service: Advisory
  • Type: KPMG information
  • Date: 12/19/2013

Promoting Transparency and Inclusion in Extra-Budgetary Fund Collection and Expenditure Allocation by Schools in Armenia 

Armenia’s secondary schools regularly collect extra-budgetary funds outside and in addition to the budget allocated to them by the government. Assessments of corruption vulnerabilities at this local level of resource generation encouraged the Partnership & Teaching NGO (P&T) to start the ‘Transparent and Accountable School’ project. P&T piloted good governance guidelines, introduced inclusive policies and built stakeholder coalitions to strengthen the education system’s use of funds.

P&T succeeded in testing, documenting and streamlining the process of extra-budgetary fund collection through stakeholder involvement and better governance procedures and was highly successful in advocating for national adoption of better policies. The Ministry of Education and Science (MoES) approved the proposed guidelines and put forward a plan to adopt the guidelines nation-wide.


Corruption Problem Addressed


Several studies, including a United Nations report from 2007/2008 have identified weaknesses in Armenia’s education system related to the collection and use of extra-budgetary funds considered to provide additional educational value to students. P&T conducted a survey, documenting that 90% of the 30 schools in the Syunik and Vayots Dzor regions did not maintain basic accounting and cash-flow accounts of the fees collected. Funds are typically collected by school directors and teaching staff and purported to be used for items such as school equipment, repairs and extra-curricular activities such as financial assistance to student clubs.