The Auditor-General has raised the red flag over Vihiga County's prolonged delay in settling money owed to the Ministry of Health (MoH).
In her latest audit report on the county government's spending, the Auditor-General Nancy Gathungu said the MoH recovered only Sh93.4 million.
Failing to settle bills in the year they are incurred, the report warns, distorts financial statements and undermines budgetary provisions for the subsequent year as they form the first charge.
The Auditor-General has raised the red flag over Vihiga County's prolonged delay in settling money owed to the Ministry of Health (MoH).
The pending bill dates back to the 2013/14 financial year and it is part of the Sh209.3 million that MoH used to pay the salaries of health workers on behalf of the local administration.
In her latest audit report on the county government's spending, the Auditor-General Nancy Gathungu said the MoH recovered only Sh93.4 million.
"Further, available information indicates that MoH paid health workers salaries amounting to Sh209.3 million on behalf of the County Executive in the 2013/14 financial year," the report reads.
"An amount of Sh93.4 million was recovered, leaving a balance of Sh115.9 million. The outstanding amount had not been disclosed as pending bills.”
Ms Gathungu said the county management did not explain why the bills were not settled during the year they occurred and the County Executive risks incurring additional losses in (the) form of interest and penalties arising from continued delay in the settlement.
Failing to settle bills in the year they are incurred, the report warns, distorts financial statements and undermines budgetary provisions for the subsequent year as they form the first charge.
The outstanding debt is part of the Sh1.2 billion in Vihiga’s pending bills cited by the Auditor-General as of June 30, 2020.
That amount includes pending bills amounting to Sh219.7 million that were not adequately supported with delivery notes, invoices and procurement records.
When governor Wilber Ottichilo addressed the county assembly, he said pending bills had been a major obstacle for his administration and were slowing development programmes.
Dr Ottichilo said his administration had inherited Sh2.2 billion in historical pending bills that had since been reduced to Sh318 million.
"We made provisions in the 2020/21 financial budget intended to continue servicing [the county government’s] debt burden. This amount was sourced from the Sh1 billion annual development budget, leaving only Sh480 million for development," he said.
