Request for cash to be automated as State seeks to stem wasteful expenditure

[Photo: Courtesy]

County officials will no longer have to travel to Nairobi to present their requests for release of cash to the Controller of Budget (CoB)’s office as the process will be automated by July 1.

This means the frequent trips by county officials to Nairobi to present their requests for travel financing will be history since the officers will place their requests through an online portal.

Controller of Budget Agnes Odhiambo made the revelation during her presentation at the just concluded Fifth Devolution Conference in Kakamega County.

“We will automate all county transactions to the Integrated Financial Management Information System (IFMIS) by July 2018. This process is important in managing pending Bills in counties, now amounting to Sh99 billion,” said Odhiambo.

“This will save counties thousands of shillings in fare and accommodation, which has been subject of discussion in audit queries since devolution.”

Counties are required to place their request through Odhiambo to authorise disbursement by the National Treasury.

Last year, when the issue featured at the plenary of the Fourth Devolution Conference in Naivasha, Nakuru County, Odhiambo advised counties to only send one officer.

Supplementary budgets

She said it does not make sense to send two, three or four officers with a document that can be signed by the rest and have one deliver it to her office. Some county officers were taking up to five days, claiming to be waiting for her authority but were in fact running their errands, the budget controller said.

She also took issue with delay by counties to pass their supplementary budgets, which affects procurement timelines, hence contributing to the growing pending bills

“The Auditor General has been issuing qualified audit reports because the financial statements were incomplete. Some transactions are done outside the procurement and financial laws,” Odhiambo said.

During a plenary session on the roles and responsibilities of government institutions, Odhiambo emphasised the need to get things right by resolving teething problems.

“We are advising counties to ensure supplementary budgets are passed on time. Overstating of local revenue targets also contributes to this issue of pending bills and COB has continuously been advising counties to set realistic revenue targets,” urged Odhiambo.

Falling revenues

A Treasury official raised concern over revenue collection shortfall in counties every year.

“We are aware of less revenue collection in counties and we are helping them to collect more through a programme with World Bank,” the official said.

He disclosed that only 18 counties managed to collect more revenue last year compared to the previous year while 29 counties collected less.

Deputy President William Ruto also touched on local revenue collection, saying many counties collect less than 60 per cent. President Uhuru Kenyatta warned that the revenue basket is shrinking and every government entity must make prudent use of funds.