ICPAK raises alarm over sluggish audit of county assets

What you need to know:

ICPAK chairman expressed concerns, five years since the process began and closer to the August 8 polls, the process yet to be completed.
Kenyans have not known how many assets the government own, their carrying amounts and the depreciation charges and impairment loses relating to them.
Concerns over the decline in allocation of development expenditure for 2017/2018 financial year.

Accountants have expressed concern over the delay in finalising registers on assets and liabilities belonging to Kenya's 47 counties ahead of a June 20 deadline.

The Institute of Certified Public Accountants of Kenya (ICPAK) chairman Fernandes Barasa says that though it has been five years since the process began, it is yet to be completed as the country nears the August 8 polls.

“The situation has created loopholes which could be capitalised by exiting elected officials to pilfer public assets during the election period and beyond,” he warned.

He noted that there were a number of initiatives established by the defunct Transition Authority (TA) to address the issue, including issuance of an order barring all public entities from transferring assets and liabilities before March 2016.

Mr Barasa said there was also the establishment of an Integrated National and County Assets Register Centre to prepare an interim register of assets and liabilities of the 47 counties in collaboration with the Auditor General.

“For a long time, Kenyans have not known how many assets the government owns, their carrying amounts and the depreciation charges and impairment losses relating to them,” Mr Barasa said.

All devolved units had until June to verify and transfer all assets owned by the defunct local authorities.

The process was to be overseen by the TA, whose functions were taken over by the Intergovernmental Relations Technical Committee (IGRTC).

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Many local authorities had incurred liabilities running into billions of shillings before the onset of devolution under the 2010 Constitution.

“We call for an urgent update of the status of asset audit and inventory. We also call for proper accounting in the management of public assets,” Mr Barasa said, noting that an extensive audit was necessary to inform future acquisitions and ensure prudent management of county assets.