An audit report has revealed that Sh200 milliom advanced to Kenya by partners for the Global Fund HIV/Aids program was not utilised.
The report tabled for the financial year that ended June 2022 tabled in parliament last week indicated that Sh2.1 billion was given to Kenya for 2021/2024 financial year, the budget for the year that ended June 2022, the budget was Sh506 million and cumulatively, the program spent a Sh306,416,211 leaving Sh200 million unutilised.
The absorption rate as per the Auditor General report released last week revealed that the country was only able to spend 61 per cent of the budget.
“In circumstances, projects may not absorb the entire amount of Sh2.1 billion thereby not achieving the objective of reducing new HIV/Aids and sexually transmitted diseases and viral hepatitis infection, reducing morbidity and mortality due to HIV, scaling up treatment and increasing access to antiretroviral drugs,” says the report.
Even though the report says that Kenya could not spend the whole amount of money given by the Global Fund, that is the time that the country was recording an acute shortage of condoms and antiretroviral drugs.
Mostly the commodities are given to Kenya for free under a programme funded by the Global Fund and the United Nations Population Fund (UNFPA).
The report also pointed out that there was an unsupported bank balance of Sh 158.3 million, however, the bank reconciliation statement for the month of June reflects payment in a bank statement not yet recorded in cash sh612, 500 which were not supported by payment vouchers.
In the circumstances, the accuracy and completeness of Sh158.3 million could not be confirmed.
The report also disclosed pending accounts payable of Sh7.4 million. The amount includes the opening balance of Sh29.8 million being payable from the closed grant.
However, from the records obtained by the Auditor General, Nancy Gathungu, there was no evidence of negotiation to include this amount in the budgeting and programmatic planning grant being the next grant as required in the Funds guidelines in grant budgeting in 2019.
“In the circumstance, the management was in the bridge of the law,” says the report
The project with the official name, Global Fund HIV/AIDS program KEN-H-TNT 2065 started in July 2021 with an end date of June 2024 and was managed by Dr Andrew Mulwa supervised by the Ministry of Health.
The Principal Secretary for the Ministry of Health and the project coordinator for the global fund, HIV/Aids are responsible for the preparation and presentation of the project financial statements which gives a true and fair view of the state of affairs of the project for and as the end of the financial year that ended on June 30, 2022.
The two are also responsible for the project's financial statements which have been repaired for financial reporting using the appropriate accounting policies in accordance with the International Public Sector Accounting Standards.
Ms Gathungu's report concluded that during the year under review, management did not provide a fixed asset register but presented an asset verification report which did not include details of the date of the purchase and prices of the assets.
In addition, the report indicated that the fixed assets were aggregated without giving details of the individual asset name, tag number and location.
“In the circumstances, the effectiveness of the fixed assets internal could not be confirmed,”
From the records presented by Ms Mochache and Dr Mulwa, the financial assets as of June 30, 2022, the bank balance was Sh158.3 million with a cash balance of Sh3.1 million, the imprest and advances at Sh330,000 with total financial assets of Sh161.779.494.
Ms Gathungu, “The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAI). I have full filled other ethical responsibilities per the ISSAI and other ethical requirements applicable to performing audit financing statements in Kenya.
“I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. Key audit matters are those matters in my professional judgement that are of most significance in the audit of the financial statement. There were no other key audit matters to report in the year under review,” Ms Gathingu said.