Economy

Auditor-general blames poor record-keeping for misuse of county funds

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Auditor-General Edward Ouko. FILE PHOTO | NMG

Lack of proper accounting systems at the county level has facilitated misuse of public funds at the devolved units, Auditor-General Edward Ouko has said.

Speaking Thursday in Nairobi during the financial reporting (FiRe award) conference ahead of today’s gala dinner, Mr Ouko said the underlying issue is that records have not been kept well and the devolved units are not meeting the accounting standards.

“We don’t have proper financial systems today in most of the counties. Whatever is there is that they are doing other things which are not within the set standards. That’s why we want them to be brought into such events (FiRe award),” said Mr Ouko.

He said through the event they will shame those who are not doing well, as they encourage and recognise those thriving in their accounting systems.

READ: Broke counties fail to pay workers

Transparency

Mr Ouko said they are concerned about the systems through which these accounts are prepared and are working closely with the Public Sector Accounting Standards Board (PSASB) to ensure that counties and other public entities have systems which can prepare accounts which can be reported in a transparent manner.

Reports from the Auditor-General and Controller of Budget offices have indicted county governments and assemblies for misusing public funds.

READ: Why counties have not received a cent from the Treasury

Integrated reporting

FiRe award is aimed at promoting integrated reporting through enhancing accountability, transparency and integrity in compliance with appropriate financial reporting framework and other disclosures on governance, social and environmental reporting by private and public entities.

The award is promoted by the Institute of Certified Public Accountants of Kenya (ICPAK), PSASB, Capital Markets Authority (CMA) and Nairobi Securities Exchange (NSE).