Twelve counties had been unable to account for Sh81 billion they acquired from the Nationwide Treasury throughout the 2016/17 monetary 12 months, a report by Auditor-Normal Edward Ouko has revealed.
Mr Ouko didn’t give an opinion on the monetary actions of the 12 counties throughout that 12 months, that means there was little or no paperwork backing the devolved perform’s expenditures. That is technically often called disclaimer opinion.
Based on the report, greater than half of the counties had been in a foul monetary state within the 12 months that ended June 30, a month to the August basic election the place many incumbent governors misplaced their seats.
The report exposes large variances between monetary statements and the Built-in Monetary Administration System studies, ensuing within the auditor expressing an hostile and disclaimer opinion.
The disclaimer opinion issued on monetary statements of the 12 counties could possibly be a sign of both the bookkeeping nightmare that the devolved governments discover themselves in or misappropriation of taxpayers’ cash.
The auditor is often unable to supply an opinion when he encounters quite a few errors and the place info isn’t made accessible to him, making it troublesome for him to complete the audit.
The counties are Nairobi, Nandi, Tana River, Vihiga, West Pokot, Bomet and Homa Bay. Others are Kericho, Kitui, Lamu, Machakos and Migori.
On the similar time, 12 different counties had been issued with an hostile opinion indicating huge inaccuracies within the Sh73 billion they acquired in the identical fiscal 12 months.
Mr Ouko points an hostile opinion, which is the worst report an establishment can get, when he finds so many anomalies that he lacks confidence within the monetary well being of an establishment.
A few of the counties that had been issued with an hostile opinion are Nyamira, Samburu, Kirinyaga, Murang’a, Tharaka Nithi, Kwale and Kisumu. Others are Siaya, Turkana, Garissa, Isiolo and Embu.
Nairobi was discovered to have irregularly spent Sh8 billion out of Sh10 billion it collected as income after the county government didn’t financial institution it as required by regulation.
The report additionally revealed that out of the over a million vehicles parked within the metropolis, solely 402,401 had been compliant, ensuing within the lack of Sh270 million in income.
The county was placed on the spot for releasing clamped autos with out fee of the penalties
The report additionally revealed that the county didn’t disburse Sh281 million to varied hospitals, together with Pumwani and Mbagathi, as reimbursement without cost maternity.
Embu was working 19 important financial institution accounts opposite to the Public Finance and Administration Act. The accounts had Sh521 million.
The county was additionally discovered to be utilizing a number of income assortment techniques regardless of buying a digital platform at a price of Sh18 million.
In Murang’a, Mr Ouko dismissed the funds figures mirrored within the statements as deceptive and inaccurate, faulting the county government for failing to put up the unique doc.
The devolved unit additionally recorded a decline in income after it dropped to Sh535 million from Sh641 million collected within the 2015-2016 monetary 12 months.
In Kiambu, the auditor discovered that 19 workers weren’t taxed whereas 262 had been undertaxed, leading to non-remittance of Sh434,431 and Sh5 million respectively.
On the similar time, the development of a expertise academy and amphitheatre had stalled regardless of fee of Sh18 million to the contractor.
The undertaking estimated to value Sh81 million had been began in 2015 and was estimated to be full in two years.
“ … the monetary statements don’t current pretty the monetary place of the county government of Kirinyaga as at 30 June 2017, and its monetary efficiency and money flows for the 12 months then ended,” the report learn.
In Baringo, the auditor discovered that the county paid Sh1.four million to Kenya Energy for the set up of electrical energy however on the time of the audit in December 2017, the ability was but to be related to the ability grid.
In Bomet, the auditor noticed that the devolved unit had undercharged tea firms land charges at 1.three p.c as a substitute of two.5 p.c.
A minimum of 839 county employees had been discovered to have been irregularly employed throughout that monetary 12 months. They acquired Sh27 million in salaries monthly.
The county additionally spent Sh55 million in printing and promoting towards a funds of Sh45 million, leading to an over expenditure of Sh10 million.
An built-in quick textual content message system acquired by Bungoma at a price of Sh4.9 million was not functioning regardless of having been handed over to the county in 2015.
In the identical county, a hen slaughterhouse that devoured up Sh35 million is mendacity idle regardless of its completion.
Mt Elgon Excessive Altitude Coaching Centre isn’t operational regardless of the county spending Sh33 million on it.
In Busia, the auditor discovered that the digital well being village at Amukura was but to obtain medical gear regardless of fee of Sh9.9 million to a neighborhood agency for the supply.
In Elgeyo-Marakwet, the auditor discovered that the county had made fraudulent wage funds ensuing within the lack of Sh12 million, even because the devolved unit made an try to cover-up.
In Turkana, the auditor couldn’t confirm bills amounting to Sh3 billion incurred within the buy of autos, licensed seeds and different belongings after the county failed to provide supporting schedule.