Auditor-General Edward Ouko wants the government payments platform Integrated Financial Management Information System (IFMIS) to be linked with others such as the Kenya Revenue Authority’s (KRA) CS-DRMS and eProMIS to mitigate the risk of error and fraud.
In a special audit report of the effectiveness of the IFMIS, Mr Ouko said the team at the Treasury should control supplier creation process in the system.
He said supplier master records should be reviewed and reconciled as a matter of urgency.
Mr Ouko’s audit comes in the backdrop of theft of millions of shillings paid out through the IFMIS at the National Youth Service (NYS) and in Kilifi County to fictitious companies.
The NYS lost Sh791 million to firms which purported to have supplied goods and services in a scandal that is currently under investigations by the parliamentary Public Accounts Committee (PAC).
The Ethics and Anti-Corruption Commission has since quizzed Kilifi governor Amason Kingi over the loss of Sh51 million that was paid out of IFMIS to fictitious firms.
Mr Ouko has recommended that the functionalities that have not been configured in the IFMIS system be effected in order of priority.
“An example include automation of the exchequer release process and bank reconciliation process,” he said.
Mr Ouko wants the IFMIS team to use contract document templates pre-vetted by a legal team or the Attorney General office to minimise the risk of legal exposure with the vendors.
“It is essential that the IFMIS department establishes a comprehensive security policy, standards and procedures covering various aspects of security control which are essential for IFMIS system to operate and government financial data to be stored in a secure and controlled environment,” Mr Ouko said in a report that was tabled in Parliament Thursday evening.
He said a complex project like IFMIS requires expertise in acquiring and managing technology projects.