Kisumu County is on the spot over millions of shillings reportedly lost through unclear transactions, according to the latest 2018 financial year audit report.
Auditor General Edward Ouko's report established that some contractors were paid millions for services not rendered or work not done.
According to the findings, some of the county-funded projects were only complete on paper but not physically on the ground.
And statements of financial assets and liabilities as at June 30, 2017, receipts, payment vouchers and bank statements for the period under review did not match the cash allocated.
The audit released in Kisumu by Ouko's office, revealed county officers were not keen to follow up on projects hence reportedly paid for works not done.
The auditor noted physical verification of the projects on the ground and bank statements detailing assets and liabilities did not reconcile in line with the Public Audit Act, 2015.
For instance, as at June 30, 2017, the county's book balance reflected only Sh1, 359,986,921, yet from the audit review, recording supporting this was not presented.
Similarly, the auditor notes bank reconciliation statements for six bank accounts with balances amounting to Sh19, 887,952, were not presented for audit.
A report by the National Treasury dated November 13, 2017, also indicated that Kisumu County operated 112 accounts in different banks.
''The county executive operated 112 bank accounts some of which were not disclosed in the financial statements,'' the audit revealed.
They were Central Bank, (two), KCB, (93), Cooperative Bank (10), Equity (3), Family (3), and Diamond Trust Bank (1).
Audit analysis showed the county executive did not carry out bank reconciliation statements in the Integrated Financial Management Information System (Ifmis) for all the bank accounts.
Instead, bank reconciliations were done out of Ifmis, according to the auditor's report that also queried the financial prudence of the county which was attributed to careless spending.
''So the accuracy and completeness of the KCB balances of Sh1.359, 986, 921 billion as at June 30, 2017 could not be confirmed as fairly stated,'' the auditor notes disclosed
Statements of financial assets and liabilities reflected a balance of Sh92, 916,431 relating to deposits and retention had no documents to support the book balance.
Further, the Public Sector Accounting Standards Board reporting templates require that assets and liabilities be disclosed in financial statements.
But no outstanding deposits and retention balances of Sh93, 910,431 million as at June 30 , 2017 could be verified.
On research and design, statements of receipts and payments show acquisition of assets amounting to Sh95, 326,615 for the period under review.
Out of the total sum, Sh15 million were not supported by evidence adduced to the audit team.
In addition a contract awarded to provide youth enterprise skills training was awarded to a firm at a cost of Sh4, 868, 448 on June 2016.
Four suppliers had bid for the contract, but three were later unresponsive.
But after one bidder remained, the tender should have been cancelled and re-advertised - yet it wasn't done so as per the Auditor report.
A contract for preparation of GIS based valuation roll at a sum of Sh99, 040,800 was signed on March 2017 during the peak of elections.
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