- The audit report shows that millions cannot be properly accounted for.
- Most of the money is reflected in the financial statements but no adequate documentation has been adduced to confirm usage.
Image: FILE
The Auditor General has put the management of Chuka/Igamba Ng’ombe under focus for irregular use of CDF funds.
In its 2020-21 report, the auditor has also flagged the management of the funds for unprocedural reallocation of budgeted monies as well as inability to account for the cash.
The audit report shows that millions cannot be properly accounted for. Most of the money is reflected in the financial statements but no adequate documentation has been adduced to confirm usage.
For example, the report says the constituency books show that Sh14,580,600 and Sh18,391,751 totalling to Sh32,972,350 were used for bursaries for secondary schools and tertiary institutions respectively.
However, only Sh27,927,000 was accounted for by way of supportive documents, leaving some Sh9,045,350 unaccounted for.
Also flagged is Sh2,125,000 expenditure for environmental projects, with the auditor saying it cannot be accounted for.
“In the circumstances, the accuracy of the expenditure of Sh32,972,350 and Sh2,125,000 in bursaries and environmental projects both totalling Sh35,097,350 could not be confirmed,” the report reads.
Further, the auditor says the constituency books showed unutilised balance of Sh160,629,806 but detailed scrutiny of annexes only reflects Sh106,755786 resulting in unreconciled variance of Sh53,874,020.
Also, the report says the historical balance is given in the books as Sh37,107,703. But a recast of the assets register balance showed Sh2,661,500, leaving unexplained balance of Sh34,446,203.
“In the circumstances, the accuracy of the annextures on financial statements cannot be confirmed.”
Some documents on expenditures were also not availed for the audit process, making it difficult to ascertain whether the claimed projects were delivered.
For example, the books show that Sh61,484,640 were expended in grants and payments, including Sh6,479,000 for social security programmes. However, the supporting ledger or schedules were not provided for audit.
The report also complains that the constituency management reallocated the budgetary allocation for projects but without proper documentation and evidence.
Sh3 million was set for construction of an ICT hub in Mugwe and Kaawa but which were reallocated to construction of social halls.
“However, the supporting documents, including the expenditure returns and bill of quantities were not provided for audit.”
The report also flags the bank balances of the project management committee indicated in the books as Sh567,029 without any evidence of the same.
It says the balance claims did not have support of the “cash books, bank statements, bank reconciliation statements, certificate of bank balances and quarterly reports to the constituency committee on the status of the committee’s accounts.”
“In the circumstances, the accuracy and existence of PMC account balances cannot be confirmed.”
Also, the statement supplied to the auditors showed Sh4,062,758 spent in acquiring some assets such as office furniture and general equipment. However this could not stand scrutiny.
“Scrutiny of documents provided revealed the amount related to furniture for primary schools and security projects” and not as shown.
“In the circumstances, the completeness and accuracy of acquisition of assets expenditure of Sh4,062,758 could not be confirmed.”