ALOR SETAR: The third series of the 2014 Auditor-General’s Report has revealed the 2012-2014 financial performance of Kolej Universti Insaniah Sdn Bhd (KUIN) was unsatisfactory, based on the trend and financial ratio analysis conducted.
According to the report for 2012 and 2013, the company recorded an after-tax loss of RM1.3 million and RM8.85 million, respectively, while in 2014, the company recorded an after-tax profit of RM1.06 million.
“The profit for 2014 was not obtained from a profitable operation but from various other incomes amounting to RM3.32 million,” it said.
The report also stated the total accumulated losses for the three years from 2012 to 2014 were RM4.13 million, RM12.98 million and RM11.58 million, respectively.
In this regard, an audit review of the Student Debt Report generated by the Insaniah Campus Management System (ICMS) as at Dec 31, 2013 found students owed a total of RM7.25 million in fees.
The highest contributor of the outstanding fees were diploma students who had completed their studies, with RM1.55 million while the second highest were students who failed and had stopped (RM1.3 million).
Meanwhile, KUIN in a reply dated June 22, 2015 said for students who completed their courses, action would be taken via a KUIN legal panel to recover all debts.
The balance of outstanding fees as at Aug 23, 2015 was RM13.36 million, according to the report.
The audit is also of the view that the opening of a Temporary Stargate Campus and its renovation expenditure amounting to RM6.72 million, as well as the building cleaning costs at RM0.81 million would further burden KUIN.
This is because the building will only be used for two years before it moves to its own campus at Kuala Ketil.
An audit review also found advances and loans to six subsidiaries amounting to RM34.14 million were made without the approval of KUIN Sdn Bhd’s board of directors.
“The loans were continuously granted between 2009 and 2013 to pay utilities and rents even though KUIN was aware the subsidiaries were unable to repay the loans,” said the report.
However, KUIN in a reply on June 22, 2015 said it had stopped providing advances and loans to subsidiaries, beginning from May 2013 and succeeded in saving RM7.19 million in 2013 and RM14.67 last year.