President Uhuru Kenyatta has on several occasions said he wants his legacy to be that of winning the war on graft.
However, the reality on the ground seems to be different if the audit of expenditure committed by his office is anything to go by.
An examination of records shows the Presidency spent Sh2,729,192,010 on ‘confidential expenditure’ in three financial years.
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The Presidency provided certificates to support the expenditure and said the purpose and particulars of the expenditure cannot be made public.
However, the report by Auditor General Edward Ouko indicates that unsatisfactory matters regarding the confidential expenditure between 2014 and 2016 financial years remain unresolved.
The report revealed weak controls over confidential expenditure as payment vouchers are not supported with necessary documents that can be subjected to audit tests.
Payments for Motor Vehicles
The report indicated available records revealed payments totaling Sh165,587,200 made to companies for supply of motor vehicles were charged to a confidential expenditure account.
The report said verification of the IFMIS ledger showed these payments were not posted, an indication that they could have been unexplained cash withdrawals.
The audit report indicates that examination of the general ledger for 2015-16 revealed confidential expenditure totaling Sh105,000,000 was charged to a general suspense account without verifiable source documents that indicate the approved allocation.
“No satisfactory explanation has been provided for this anomaly,” Ouko said in the report.
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He added, “In this regard, it was not possible to confirm that the confidential expenditure incurred on motor vehicles and other payments or charge to the general suspense account during the financial year under review was lawful and that value for money was obtained.
Payments for Undelivered Items
With regards to the expenditure records, goods worth Sh22,324,851 were requisitioned by various State Houses and Lodges, and were procured and received in Nairobi, then issued to respective stations.
However, the report undertaken during January and February 2017 revealed that these goods were never received and there were no documents on record maintained in the field to support receipt.
“In the circumstances, the propriety of expenditure totaling Sh22,324,851 could not be confirmed,” read part of the report.
The report indicates that bills worth Sh270,980,438 were pending as at June 30, 2016 as disclosed under Note 16 to the financial statements.
However, bills amounting to Sh61,537,194 of the total were not supported by invoices, delivery notes, contract documents and Local Purchase Orders.
Consequently, their validity, legality, and accuracy could not be confirmed.
Ouko said had the bills been paid and charged to the accounts for the financial year 2015-16, the statement of receipts and payments would have reflected a deficit of Sh211,819,430 instead of Sh59,161,008 now shown.
Ouko in the report disclosed that imprest, better known as petty cash, totaling Sh1,197,000 which ought to have been surrendered or otherwise accounted for on or before June 30, 2016 were outstanding.
He said the IFMIS generated imprest register and trial balance reflect instead outstanding imprest of Sh2,033,608 and Sh9,117,357 respectively as of that date.
Ouko said the presidency failed to satisfactorily explain the resulting dirrences among the three records.
Fixed Assets Register
Ouko said although the presidency disclosed a summary of fixed assets acquired in 2014-15 and 2015-16, an assets register has not been maintained, contrary to Regulation 143 of the Public Finance Management (National Government) Regulations, 2015.
Consequently, the existence, value, completeness and legal ownership of all the assets could not be confirmed.
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Originally Authored By: the_star