The Ministry of Land and Urban Development cannot account for revenue amounting to Sh96.6 million due to missing receipt books, Auditor-General Edward Ouko says in a new report.
Mr Ouko said receipt books for the eight months to April 2016 were not availed for audit.
“The statement of financial performance reflects total revenue of Sh96,639,911. However, receipt numbers MR 6654401 to 6654450 dated September 2015 to March 2016 and receipt numbers 6654400 dated April 2016 were not made available for audit review,” Mr Ouko said in an audit of the financial statements of Stores and Services Fund, which is domiciled at the Ministry of Lands.
The Stores Services Fund, formally known as the Supplies Branch, ensures that the government realises economies of scale in procurement of commonly used items through bulk purchase.
Mr Ouko said the fund management has not explained whether the revenue collected from May to June 2016 was receipted using official documents.
“In the circumstances, the total revenue balance of Sh96,639,911 included in the statement of financial performance for the year ended June 30, 2016 could not be confirmed,” Mr Ouko said in a disclaimer audit opinion of the Fund dated March 13, 2017 and tabled in Parliament.
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A disclaimer audit opinion means that the auditor did not get sufficient evidence to form an audit opinion.
“Because of the significance of the matters described in the basis for disclaimer opinion paragraph, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion,” Mr Ouko said.
He queried the bulk purchases of stores and fuel saying the statement reflected payments of Sh120 million while the statement of cash flow showed a Sh76 million balance.