Discrepancies put ministry in Auditor General’s crosshairs

Auditor General Edward Ouko when he appeared before the Senate County Public and Investment Committee at County Hall, Nairobi on Wednesday 24/04/19. [Boniface Okendo,Standard]

The State Department of Transport and Housing is on the spot over discrepancies in its financial records.

According to the Auditor General Edward Ouko’s latest report for the year ending June 2018, the ministry’s financial statements read Sh77 million while the Integrated Financial Management Information System (Ifmis) report shows Sh43.881 billion, resulting in a variance of Sh43.804 billion.

Mr Ouko further notes that under the financial liabilities, the ministry’s financial records show that liabilities stood at Sh52.54 million during the period under review, while the Ifmis report puts the same at Sh35.528 billion.

This would mean variance of Sh35.475 billion.

“The above difference between these two sets of records were not explained,” read in part the report that was recently tabled in the National Assembly.

The audit report further shows that the comparison between the financial statements and the supporting trial balance revealed positive variance of Sh40.895 billion and a negative variance totalling Sh9.755 billion all of which were not explained or reconciled.

“In the circumstances, the accuracy and correctness of the departments’ financial statements for the year ended June 30, 2018, could not, therefore be confirmed,” says the report.

In addition, the department also failed to offer a satisfactory explanation on a summary of the appropriation - recurrent and development combined - which reflects an expenditure of Sh100 billion against the budget of Sh112 billion thus resulting in under-expenditure of Sh12 billion.

Mr Ouko has also questioned the accuracy of the amount released by the Exchequer as stated in the statement of receipts and payments.