• In Tinderet, there were no document to support use of Sh39.6 million for schools, health centres
• Mosop had a Sh164.9 million budget but only Sh101 million was absorbed
Auditor General Edward Ouko has rejected CDF financial statements totalling Sh858 million for six constituencies in Nandi county.
He said the National Government Constituency Development Fund management committees failed to comply with the CDF Act of 2015-16.
The constituencies are Nandi Hills, Aldai, Tinderet, Mosop, Chesumei and Emgwen. Out of the money, the constituencies claim they used Sh578 million but failed to absorb Sh280 million.
In Tinderet, Ouko’s report indicates that Sh39.6 million was disbursed to schools, health centres and other projects but there were no documents to support the expenditure.
“It’s not possible to confirm if the money was used for the intended projects," Ouko said.
He also questioned the use of Sh17.6 million on bursaries in Tinderet. The list of the beneficiaries and approval minutes were not provided for audit. The list of bursary subcommittee members was also not available.
In the circumstances the management breached the law, the audit report said.
Ouko said the CDF team could not explain a variance of Sh67.8 million in its cash flow.
“The financial statements do not fairly present the financial position of the National Government CDF of Tinderet constituency as at June 30, 2016," Ouko said.
Out of the Sh147.7 million budget for the year, only Sh89.2 million was used, leading to under-expenditure of Sh58.3 million.
The Auditor General said Sh50.8 million were disbursed for 74 projects, but at the time of the audit, the projects had not been completed despite full funding.
In Nandi Hills, the report indicates that Sh28.1 million was allocated for schools, health centres and other projects but there were no documents to support the expenditure.
Another expenditure of Sh21.3 million for bursaries could not also be confirmed. Ouko also questioned pending payment of Sh49.3 million which could not be confirmed due to lack of documents.
He said Sh67.7 million was disbursed for 82 projects, but Sh31 million meant for 41 projects had not been disbursed though it had been received in full.
In Aldai, statements of accounts reflect bank balances of Sh34.5 million as of June 30, 2016, but an audit of the statements showed unpresented cheques of Sh17.2 million.
Ouko said Sh17 million could not be explained by the CDF management. The constituency received Sh151.8 million but absorbed Sh117 million, resulting in Sh34 million being underutilised.
Similar problems were experienced in Mosop constituency which had a Sh164.9 million budget but only absorbed Sh101 million, leaving an under-expenditure of Sh67.9 million.
Ouko said he did not get sufficient and appropriate audit evidence to provide the basis for an audit opinion in Chesumei and Emgwen constituencies. He said they also faced serious challenges in managing CDF funds.
Chesumei had Sh134 million but only absorbed Sh100 million, leaving Sh34 million unspent.
In Emugwen, the CDF fund budgeted Sh115.2 million but used Sh87.6 million, therefore, failing to use Sh27.6 million.