Listen to This Article Enhance your reading experience by listening to this article.

Auditor General Nancy Gathungu has questioned the transfer of Sh188.8 million to the Principal Secretary in State department for Technical, Vocational Education and Training.

In her latest report for the financial year 2023/2024, Gathungu regretted that documents to confirm utilization of the funds were not provided for audit review.

Reads the report: “included in the transfers to other Government units amount of Sh12,486,008,764 is Sh188,774,600 indicated as a transfer to the Principal Secretary of the State Department and whose support documents to confirm utilization were not provided for audit review. In the circumstances, the accuracy and completeness of transfers to other government units of Sh12,486,008,764 could not be confirmed.”

In the report tabled in the National Assembly, Gathungu also fingered the state department over various questionable expenditures in the department.

The queries include unreconciled transfers from the exchequer, unconfirmed transfers to other Government units, transfer of funds to various colleges and institutes, unsupported compensation of employees, undisclosed Pending bills and non-compliance with record Keeping Requirements.

Others are non-adherence to one third basic salary rule failure to report on procurement activities, long outstanding unresolved contract variations, irregularities in implementation of Mentorship Programme and Construction of New Technical and Vocational Colleges.

With regards to the transfers of funds to 245 to colleges and institutes, the report raises concerns over the transfer of funds to 182 institutions totaling to Sh3 billion as inconsistencies were noted.

Out of the amount transferred of Sh1.4 billion indicated as disbursed to 39 colleges and institutes, the report further regrets that only Sh1.2 billion was recorded in the financial statements of the receiving institutions resulting to a variance of Sh196.5 million which has not been reconciled nor explained.

Further, the report raises concerns over Sh582.7 million disbursed to other 46 colleges and institutes which acknowledged receipt of Sh929.4 million resulting in unreconciled disbursements of Sh346.7 million.

Reads the report: “ln addition, the disbursements include transfers to eighty-seven (87) technical and vocational colleges amounting to Sh492,626,314 which did not provide expenditure returns to the state department despite not being self-reporting. It was therefore not possible to confirm if the funds were received and used for the intended purpose.”

On implementation of mentorship Programme and Construction of new Technical and Vocational Colleges, the report raises concerns that there were irregularities in the tender issued by the State Department for the construction of 30 new technical and vocational colleges (TVC’s) across the country.

The project was initiated to enhance technical training capacity where a number of existing institutions were appointed to mentor the new ones. The report raises concerns that a review of the financial and contractual records as well as physical verification of the projects revealed various questions in how the project was implemented in the various facilities.

The institutions with questions include the construction of Ngeria Technical and Vocational College, construction of Mt. Elgon Technical and Vocational College, construction of Saku Technical and Vocational College as well as the collapse of Chepareria Technical Training institute.

On pending bills, the report has fingered the state department for failing to disclose the pending bills balance as at 30 June last year as prescribed in the international Public Sector Accounting Standards (Cash Basis) reporting framework.

Reads the report: “ln the circumstances, the pending bills amount could not be established and the financial statements presented for audit were not in accordance with the financial reporting template issued by the Public Sector Accounting Standards Board.”

The report has accused the management of being in breach of the law for failing to have proper records in place. The report regrets that the management did not provide a copy of the report on non-financial performance for the year under review, contrary to Regulation 136(3) of the Public Finance Management (National Government) Regulations, 2015 which provides that an Accounting Officer shall put in place efficient and effective systems to monitor and report on non-financial performance for his or her national government entity’s individual programmes and project.