Gathungu: Gender docket can't account for Sh48m GBV grants

Auditor General Nancy Gathungu

Auditor General Nancy Gathungu. Her report says the Gender department cannot account for Sh48 million grant money.

Photo credit: File | Nation Media Group

What you need to know:

  • The Auditor General has once again queried the department’s accuracy and completeness of financial statements of the year ended June 30, 2022. Key among queries is the use of donor money.
  • The report says the statement of receipts and payments reflects proceeds from domestic and foreign grants amounting to Sh48,125,120, being a grant from the Finnish government.

The State Department of Gender has been put on the spot for the third year in a row over questionable use of funds.

Auditor General Nancy Gathungu has once again queried the department’s accuracy and completeness of financial statements of the year ended June 30, 2022. Key among queries is the use of donor money.

The report says the statement of receipts and payments reflects proceeds from domestic and foreign grants amounting to Sh48,125,120, being a grant from the Finnish government.

Ms Gathungu, however, says the management did not provide the supporting documents for an audit review. Further, she says the statement reflects the use of goods and services amounting to Sh231.9 million, which includes hospitality supplies and services expenditure of Sh49.9 as disclosed in the financial statements.

No evidence

Of the amount, expenditure relating to grants totalling Sh22.1 was not supported with payment vouchers and other supporting documents. In addition, the use of goods and services includes expenditure on training of Sh13.8 million, out of which expenditure on the Finland programme through AIA of Sh2 million was not supported by any document.

“In the circumstances, the accuracy and completeness of proceeds from foreign grants, hospitality supplies and services and training expenses of Sh48,125,120, Sh22,142,473 and Sh2 million respectively could not be confirmed.”

Kenya and Finland, in October 2021, launched a bilateral gender-based violence (GBV) programme to strengthen prevention and response. The three-year initiative saw Finland and Kenya inject €5 million (Sh695 million) and €1 million (Sh140 million) respectively, to finance the project being implemented in Bungoma, Kilifi, and Samburu counties.

The project seeks to complement and strengthen duty-bearers’ capacity to provide GBV first-response services and accountability. Key interventions of the plan include supporting the government in conducting a functional review of GBV service delivery and using the findings to develop and implement a coordinated capacity development plan.

It will also assist in case management data reviews and provide targeted technical assistance to ensure rights holders access the services they need along the referral pathway.

Ms Gathungu has also taken the department to task for failing to update the fixed assets register for assets amounting to Sh88 million during the financial year as required by the Public Finance Management Act, 2015.

The money includes purchase of office furniture and general equipment amounting to Sh7.5 million as disclosed in the financial statements. The amount includes expenditure on purchase of fixed assets of Sh955,840 incurred at the county offices.

The Auditor General has also questioned why the department has not cleared pending bills amounting Sh3.6 million, despite running the risk of incurring significant interest costs and penalties with their continued delay in payment.

“Failure to settle bills during the year in which they relate distorts the financial statements and adversely affects the budgetary provisions for the subsequent year as they form a first charge,” Ms Gathungu says in the Audit report.

Lack of an approved IT policy for governance and management of its ICT resources is also among the queries raised by the Auditor General. She has also questioned the failure to put the ICT Steering Committee in place to assist in the development of ICT policy framework to enable the Department to realise long-term ICT strategic goals.

Lack of policy

The auditor general opines that lack of an approved IT policy may result in an unclear direction regarding maintenance of information security across the organization and safeguarding the Department`s ICT assets.

The 2020/21 audit report put the gender department on the spot for a number of expenditures including the payment of foreign travel expenditure totaling Sh2.2 million. It noted irregularities amounting to Sh2,220,486 in respect of foreign travel and subsistence.

Ms Gathungu said examination of payment vouchers supporting the expenditure on foreign travel and subsistence had revealed unrelated amounts totalling Sh361,200, which was incurred on domestic travel and subsistence.

However, no adjustments were made to correct the misclassification. The Auditor General also queried the non-payment of Sh18.9 million pending bills of the 2020/21 but which were carried forward to 2021/22 financial year.

In the 2019/20 financial year, the auditor general put the gender department on the spot for a number of expenditures, including Sh104 million paid for sanitary towels for public schools.

Ms Gathungu, in her 2019/20 report, noted irregularities, saying no document was provided to support payment pending bills brought forward from the previous fiscal period. The department runs the free sanitary towels programme that supports more than 3.5 million learners in public primary, special, and secondary schools.

The report also flagged irregular procurement by the department worth Sh12.9 million during the 12th Commonwealth Women Affairs Ministers Meeting held in Nairobi from September 16 to 20, 2019.

The department was further accused of procuring conference facilities at Sh7.5 million using the request for quotations method, contrary to Section 106 of the Public Procurement and Asset Disposal Act, 2015, and the Public Procurement and Disposal Regulations, 2013, that provide a threshold of Sh2 million for the use of the method.