Train staff to curb audit breaches, MPs tell Treasury in report

The National Assembly’s Public Accounts Committee (PAC) has directed the National Treasury to conduct regular sensitisation and capacity-building initiatives for all government officials working in the accounts, finance and procurement departments.

The committee said that such programmes should focus on the role the officers should play during the audit cycle to ensure that they adhere to the International Public Sector Accounting Standards (IPSAS).

Enforce adherence

The committee has also advised the Institute of Certified Public Accountants of Kenya (ICPAK) and other professional bodies to enforce adherence to standards and impose sanctions on officers who fail to fulfil their duties wilfully.

These recommendations are contained in the committee report on the financial statements of National Government Ministries, Departments, and Agencies for the Financial Year 2020/2021, which was adopted by the House last Thursday.

In his submissions before the house, PAC chairperson and nominated MP John Mbadi, highlighted findings indicating such accounting practices and a lack of capacity are rampant in certain accounting units across various ministries, state departments and agencies.

He said: “The Committee found that despite all accounting units being staffed by qualified accountants and procurement officers, non-compliance with the various provisions of the various laws pointed to incompetence or resistance.”

He added: “You find the laws are there, you have competent staff based on their academic qualifications, professional background and even experience in terms of the number of years, but still the violation of laws is common.”

The various breaches include inaccuracies in the financial statements. Mbadi wondered why a state department could have inaccuracy in the financial statement and yet, they have qualified accountants preparing account books.

He emphasised the fundamental nature of reconciling accounts, stating, “Failure to reconcile accounts, which is very basic if you are an accountant… You would understand that reconciliation of accounts is one of the basic, actually the first unit in accounting class.”

Expressing disappointment, he noted the recurrence of unresolved audit and accounting issues despite previous calls for action or intervention by the House.

He lamented, “By the time we get to the next cycle, the same is repeated again and again, without any action.”

Furthermore, he highlighted the challenges cited by accounting officers regarding the Integrated Financial Management Information System (IFMIS), stating,

The Committee report has recommended specific follow up actions including further investigations by the investigative authorities, mostly by Ethics and Anti-Corruption Commission (EACC) as a number of issues raised in the report economic crimes.