President Kibaki congratulates the new Auditor General Edward Ouko after he was sworn in at State House, Nairobi September 16, 2011. Mr Ouko, in his first report for 2010/11, said that in the absence of expenditure records for 21 ministries and departments, spending of Sh8.6 billion could not be ascertained. PPS
Auditor-general Edward Ouko has said half the ministries submitted inaccurate accounts for both recurrent and development accounts, with expenditure incurred not supported by relevant documents.
Mr Ouko, in his first report for 2010/11, said that in the absence of expenditure records for 21 ministries and departments, spending of Sh8.6 billion could not be ascertained.
“Expenditure amounting to Sh3 billion incurred against 12 votes was excluded from the appropriation accounts,” Mr Ouko said, adding that consequently, the total expenditure recorded against the votes was understated by an equivalent amount.
The statement of assets and liabilities for the year also reflected substantial balances against a number of items which had not been analysed or cleared from the books of accounts as of June 30, 2011.
“For example, various ministries and departments reflected Exchequer and advance balances of Sh47.7 billion and Sh271.4 billion respectively.”
Mr Ouko is the first occupant of the position under the 2010 constitution. He said government ministries and departments also failed to exercise adequate controls in the management of imprest amounting to Sh441.6 million.
The government recorded a net surplus of Sh37.3 billion at the end of the financial year compared to Sh25.9 billion posted in 2009/10, representing an increase of Sh11.4 billion. Total issues from the Consolidated Fund for both recurrent and development services amounted to Sh831 billion against receipts of Sh828.4 billion, resulting in a deficit of Sh2.6 billion.
According to the report tabled in Parliament by Finance Minister Njeru Githae, the exchequer balance of Sh2.7 billion brought forward in 2009/10 and a bank balance of Sh37.2 billion resulted to a net government cash position of Sh37.3 billion.
Article 229 (4) of the Constitution requires the auditor-general to report to Parliament the accounts of national and county governments, accounts of every commission, national assembly, senate, political parties and any other entity funded by public money. Parliament is required to debate the report and take appropriate action.
A net under-expenditure of Sh26.2 billion was recorded in 2010/11 compared to Sh54.6 billion recorded the previous year. [email protected]
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