State Department of Public Service and Youth is on the spot over unauthorised, unreported and unaccounted for expenditure amounting to more than Sh25 billion.
In his latest report, Auditor General Edward Ouko disclosed that the Department of Public Service and Youth could not properly account for payments amounting to Sh21 billion.
In addition, the report says the department failed to disclose cash and cash equivalents worth Sh1.3 billion.
The statements of cash flow reflect cash and cash equivalents account balance of Sh1, 348,139,907 exclude unquantified transactions and account balance for bank account at Kenya Commercial Bank.
“In view of the foregoing, the accuracy and completeness of the cash and cash equivalents balance of Sh1, 348,139,907 as at June 30, 2018, could not be ascertained,” reads part of the report.
The report states that the statements of receipts and payments reflects total payments totaling to Sh21 billion, which include payments amounting to Sh182.7 million, whose payment vouchers were not made available for audit verification since they were being held by various investigating agencies.
“Under the circumstances, the payments as reflected on the statement of receipts and payments could not be confirmed to the extent of Sh182.7 million represented by missing payment vouchers,” the report reads.
According to Ouko, the financial statements reflects a balance of Sh967, 434,265 disclosed as outstanding pending bills as at June 30, 2018.
However, field verification at sampled stations inspected during the month of April 2019 relating to outstanding pending bills as at June 30, 2018, revealed that bills totalling to Sh1,586,208,155 are held at seven stations as compared to the reported balance in the financial statements of Sh384,682494 relating to NYS resulting to an unexplained variance of Sh1,201,525,661.
“Consequently, the accuracy and completeness of the pending bills payables of Sh967,434,265 as at June 30, 2018, could not be confirmed,” reads part of the report.
The report further reveals analysis of the various transactions as recorded in the ledgers reveal that the State Department charged expenditure items to other account codes other than the codes as per the approved budget contrary to the requirements of section 43 (2) (c) of the Public Finance Management Act.
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