Gender docket on the spot yet again over funds use

The State Department of Gender has been put on the spot by the Auditor General for the second year in a row over questionable utilisation of funds.

Auditor General Nancy Gathungu has once again queried the accuracy and completeness of the financial statements of the year ended June 30, 2021.

The report says statement of assets and liabilities reflects Sh2,462,503 in respect of accounts receivables, outstanding imprest and 547 clearance accounts. However, she indicates supporting documents and detailed schedules for the amount were not provided for audit review.

“Consequently, the accuracy and completeness of accounts receivables - outstanding imprest and clearance accounts amounting to Sh2,462,503 as at June 30, 2021, could not be confirmed.”

Ms Gathungu has also queried the payment of foreign travel expenditure totalling Sh2.2 million.

The auditor general indicates the statement of receipts includes an amount of Sh2,220,486 in respect of foreign travel and subsistence.

However, Gathungu notes, examination of payment vouchers supporting the expenditure on foreign travel and subsistence 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 has 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.

“Failure to settle bills in the year for which they relate will adversely affect the budgetary provisions for the subsequent year as they form a first charge to that year’s budget provision,” says Gathungu.

Law violations

She has also highlighted the department’s internal control weaknesses on payments processing, with details showing some payment vouchers were not being signed by relevant authorising officers as required by the Public Finance Management (PFM) Act.

This, she noted, is contrary to the PFM Act, which provides that all receipts and payment vouchers of public money be properly supported by pre-numbered receipt and payment vouchers and appropriate authority and documentation.

The department has also been taken to task over lack of an approved risk management policy and a risk register to document risks emanating from users and mitigation factors in place to minimise the risks.

This, the auditor noted, is contrary to Regulation 165(1) of the PFM (National Government) Regulations, 2015, which requires the accounting officer to ensure that the national government entity develops risk management strategies, including fraud prevention mechanism and a system of risk management and internal control that builds robust business operations.

“In view of the above weaknesses, it was not confirmed whether the internal controls in place at the state department were adequate and effective during the year under review,” the report report.

The auditor also faults the department’s audit committee for weaknesses in performance of its mandate. The shortcomings of the committee include failing to convene any meeting during the year contrary to the law, which requires it to meet at least once every three months.

The audit committee has also been indicted for noting having a duly elected chairperson, contrary to the law that requires that the chairperson be independent of the national government entities.

Gathungu has also raised issues with lack of any committee member trained in governance. This is contrary to the Gazette Notice Number 2690 Vol CXVIII on Capacity Building Framework, which requires serving audit committee members to train in emerging trends on audit committees, internal audit, external audit, governance, risk and internal controls.

Previous queries

The fresh audit queries come hot on heels of the 2019/20 audit report, which put the gender department on the spot for a number of expenditures, including Sh104 million paid for sanitary towels for public schools.

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 procurements 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.

Also questioned was the unsupported expenditure of Sh3.4 million for printing, advertising and information supplies and services; communication supplies and services; and domestic travel and subsistence.

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