The Tharaka Nithi government cannot properly explain how the money it received in 2016-17 was spent.
A report by the Auditor General says financial statements “do not present fairly the financial position of the county executive” as at June 2017.
The auditor concluded that the financial systems and operations are not in accordance with International Public Sector Accounting Standards and do not comply with the Public Finance Management Act, 2012.
“I can confirm public money has not been applied lawfully and in an effective way,” the report says.
In the financial statements presented, the report indicates Sh1.7 billion had been paid to employees by June 30, 2017. However, the expenditure ledgers provided reflect Sh897.4 million. This leaves Sh842.9 million unaccounted for.
The Auditor General has said financial statements cite Sh100.3 million for domestic travel and subsistence. However, the expenditure ledgers reflect Sh37.7 million — Sh63 million is not supported.
The county could also not explain use of Sh20 million under social security benefits. The government was unable to say why the cash increased from Sh5 million used the previous year to Sh20 million.
The report shows Sh39 million received for the Road Maintenance Fuel Levy and a Sh14 million World Bank loan had been omitted from the statements presented.
The county, the auditor says, could not justify the huge increase in the routine maintenance budget from Sh3 million to Sh109 million in 2015-16. During the year, the executive reflected a nil balance on purchase of computers, printers and other ICT equipment. Ledgers reflected expenditure of Sh11 million. No reconciliation was made available for audit.
The county’s bank account records could not be audited as they had variance, the report says.
The Auditor General questioned the manner in which the county has been handling surrendered imprests. Events organisers in the office of the governor procured goods and services worth Sh6 million through direct cash using imprests. “No competitive procurement was done,” the report says
It further says it is in the public domain that a generator was allegedly stolen and later found at Sammerton Hotel. No documents were availed for audit scrutiny. The generator had been donated by USAID’s AHADI.
Agile and Harmonised Assistance for Devolved Institutions is a five-year USAID/DFID funded programme for devolution that started in 2014. The total support is $50 million (about Sh5 billion).
Also questioned is Sh2 million paid to the chief of staff trip a Copenhagen, Denmark, conference. The cash was wired to private accounts but listed as purchases.
The report says the invitation letter showed the conference was to be held for four days only but the county paid her per diem for 10 days. “Copies of passport extracts attached had no evidence the governor’s wife actually attended the conference,” it says.
Also in question is money spent by county officers to attend Tharaka Nithi County Knowledge exchange programme in Oxford, UK; in Brazil, Kigali and Kampala.