Samburu County is on the spot for failing to account for about Sh6 billion it was allocated for the 2019/2020 financial year.
In her latest audit report, Auditor-General Nancy Gathungu issued an adverse opinion against Samburu for failing to provide proper records on its spending for that year.
The negative opinion raises the red flag that huge amounts could have been lost due to serious public finance management breaches, including loopholes in revenue and procurement systems and huge pending bills.
"The financial statements do not present fairly the financial position of the County Executive of Samburu as at 30 June 2020, and of its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards (Cash Basis) and do not comply with the Public Finance Management Act, 2012 and the County Governments Act, 2012," the report says.
Ms Gathungu outlined her basis for the adverse opinion, including discrepancies in the management report and financial statements, inaccuracies and mismanagement.
But according to Ms Gathungu’s report, the balance differs from the revenue budget balance totalling Sh6 billion reflected in the account in the statement of appropriation – recurrent and development – resulting in an unexplained variance of Sh430 million.
The foreword from the executive also highlights a cash and cash equivalents balance of Sh485 million as of June 30, 2020 whereas, the statement of financial assets and liabilities reflects a balance of Sh1.5 billion, resulting in an unexplained variance of Sh1.06 billion.
The statement of receipts and payments reflects payments totalling Sh5.1 billion whereas the statement of appropriation – recurrent and development combined – reflects Sh4.6 billion, resulting in an unexplained variance of Sh490 million.
The report also cites Samburu County for making illegal payments totalling Sh630 million to other government entities.
Ms Gathungu said some transfers were not supported by any legal framework or provision and there were no records of activities or expected outputs identified before the transfers were made.
“The statement of receipts and payments reflects transfers to other government entities totalling Sh630 million as disclosed in Note 14 to the financial statements. The balance includes other capital transfers to wildlife conservancies totalling Sh93 million," the report says.
The auditor-general also said expenditure returns indicating the use of grants were not provided for audit review.
"In view of these anomalies, the accuracy, completeness and validity of transfers to other government entities totalling Sh630 million made in the year under review could not be confirmed, " the report read.
Samburu County also made irregular payments of Sh3.3 million to the Council of Governors (CoG)to help defray the council’s expenses during the year under review.
The auditor-general termed this irregular as Section 37 of the Inter-Governmental Relations Act of 2012 provides that all operational expenses of (CoG) be paid for by the national government.
Other irregular payments cited by the auditor include Sh46 million to the Samburu Water and Sanitation Company (Sawasco), which was then led by Governor Moses Lenolkulal's brother, Mark Lenolkulal.
