• Ouko found variances in several accounts under the Housing department.
• Some Sh9.9 billion under cash in transit was not supported by any documentation.
The State Department of Housing has been put on the spot following an adverse audit report tainting the unit’s accounts.
Auditor General Edward Ouko reported that the department could not account for Sh1.3 billion shillings in respect of monies allocated to it during the financial year ending June 2018.
The situation casts a shadow on the state unit tasked with delivering President Uhuru Kenyatta’s affordable housing agenda.
The housing plan is among four key development pillars the President is using as part of his legacy plan which includes universal health, food security and manufacturing.
Ouko queried an unexplained variance of Sh690 million and Sh783 million in the trial balance for the department’s current and development accounts respectively.
Another Sh121 million was not accounted for in the entity’s deposit account while only Sh627 million of the Sh10 billion was disclosed under cash in hand.
Also flagged is some Sh9.9 billion under cash in transit that was not supported by any documentation and also omitted from the financial statements.
“In the circumstances, it has not been possible to ascertain the completeness and accuracy of the cash and cash equivalents balance of Sh307 million,” Ouko said.
The auditor further reprimanded the state department over a variance of Sh511 million in respect of funds transferred to the Civil Servants Housing Scheme.
“The variance has been reflected under the same note as transfer to others and no further details have been provided for audit verification,” Ouko said.
The auditor at the same time cited a significant drop in rent collection from Sh250 million to Sh156 million while the trial balance reflects nil. “No satisfactory explanation was given for the huge reduction,” Ouko said.
“Following a variance of Sh326 million in respect to receipts from the Exchequer, it was impossible to ascertain the completeness and accuracy of the Sh10.4 billion in the statement of receipts and payments,” he says.
The auditor further reprimanded the department over unresolved audit question in respect of Sh16 million imprest outstanding for over five years.
“This is contrary to the PFM Regulations which require a holder of temporary imprest account to surrender the same within seven days of returning to duty station,” Ouko noted.
Also cast in doubt is Sh1.3 billion pending bills which had not been settled by June 2017. “Had the pending bills been settled, the surplus of the year would have reduced by the same amount.”
Ouko also poked holes on a variance of Sh161 million being part of Sh3.8 billion reported as direct payment to the Nairobi Metropolitan Service.
“However, the audited financial statements for the program reflected Sh3.7 billion resulting in the variance which has not been explained or reconciled,” the report states.
(Edited by O. Owino)