Auditor questions anomalies in Lamu financial records

An assessment of the Lamu County Assembly's financial records by the Auditor-General has revealed anomalies for the 2014/2015 financial year.

According to a report by Edward Ouko, officers did not follow due process in conducting government business in all the eleven key expenditure issues that were assessed.

The county assembly had a total budget of Sh394.6 million for the financial year 2014/2015 with Sh169.6 million allocated for development and Sh225 million for recurrent expenditure. This was an increase of 47 per cent compared to Sh268.5 million in 2013/2014 financial year.

Of the Sh161 million budgeted in development vote for the construction of the County Assembly Chamber, the report said, only Sh28 million (17 per cent) had been spent. This implies the County Assembly will take longer to complete the project.

The audit report further reveals that the County Assembly spent Sh24.9 million on sitting allowances against the budget of Sh23 million representing an absorption rate of 108 per cent which increased by Sh6.69 million as compared to previous financial year.

NO EVIDENCE

Similarly, the County Assembly spent Sh34.58 million on domestic and foreign travel against the budget of Sh34.23 million representing absorption of 101 per cent or Sh350,000 over expenditure.

“These excess expenditures required approval through a supplementary budget as per section 135 of the Public Finance Management Act, 2012 but no evidence was availed to confirm this was done. Evidently, the County Assembly was in breach of the law,” stated the report.

During the same period, the Assembly paid Sh5.8 million to a firm for the renovation of the County Assembly Chambers.

However, the audit revealed that the work was not included in the 2014/2015 procurement plan.

It was therefore not clear how the project for the renovation of the County Assembly Chambers was identified and budgeted for.

But perhaps, the mega unexplained issue is that of the awarding of a tender for the construction of Phase 1 of the County Assembly Chamber.

Information availed for audit indicated that during the financial year 2014/2015, the County Assembly paid Sh5.8 million for construction of the Phase 1 of the County Assembly office.

NOT CONFIRMED

However, the Auditor-General questioned why the work was not included in the procurement plan for 2014/2015 which is contrary to Section 26 (3) of the Public Procurement and Disposal Act, 2005.

The report says the County Assembly is likely to have committed the amount on a non-priority area at the expense of more deserving ones.

Dr Ouko further questioned why the propriety and regularity of the advance payment of Sh21.43 could not be confirmed and therefore doubted the tendering process.

According to the County Assembly expenditure report availed for audit, a total of Sh1.1 million was spent on various repairs of motor vehicles during the period under audit.

However, the audit revealed that service logbooks which record details of the repairs were not maintained.

“In addition, there was no fuel register for the consumption of bulk fuel and lubricants which cost Sh1.04 million. In the circumstances, the total expenditure of Sh2.14 million on motor vehicle expenditure could not be accounted for,” said the report.

Further, the reports indicates that the Assembly spent a total of Sh1.46 million on the purchase of airtime for MCAs and staff on cash yet the law allows a maximum of Sh30,000 per item.

In addition, the payments were supported with cash sale receipts which had no pre-printed details of the supplier, location and contracts.

“This casts doubt on the validity of the cash purchases amounting to Sh1.46 million,” says the Auditor-General’s report.

Dr Ouko also revealed that the expenditure of more than Sh3.89 million on procurement of air tickets could not be ascertained.

The report questions the circumstances, propriety and legality of the expenditure on medical insurance amounting to Sh10.4 million since it could not be confirmed for the year ended 30 June, 2015.

“The Lamu County Assembly should address the anomalies noted in order to ensure effective delivery of services to the people of Lamu,” Dr Ouko said.