The senate committee on County Public Investment and special funds has issued Nakuru governor, Susan Kihika a 30-day ultimatum to shed more light on the missing Ksh6,048,700.
Legislators raised concerns over Nakuru County funds during a grilling session on March 12, 2024.
“The committee has demanded a satisfactory explanation within 30 days, failing which the governor will be required to initiate a recovery process for the irregular payment totaling Ksh6,048,700,” read the statement in part.
As per the committee, the funds were allocated as allowances from the Emergency funds in the 2019/2020 financial year.
Additionally, Governor Kihika is required to clarify expenditure related to gift vouchers and food packs which were also sourced from the Emergency funds during the 2020 to 2021 financial year.
Susan Kihika on County’s Funds
The senate session sought to review the auditor general’s assessments regarding the Nakuru county Emergency and bursary funds for 2020/2021 financial year.
The report highlighted notable shortcomings in the county’s financial management and control systems.
Despite addressing the concerns raised, the Auditor General expressed dissatisfaction with the explanations given for the significant gaps highlighting that the county is deficient in internal audit capabilities.
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Kihika acknowledged the discrepancies and vowed to address them in the next audit.
How to Improve Financial Transparency
The committee further highlighted the measures to improve transparency and financial governance within Nakuru.
“The County Executive Committee Member (CECM) for Finance has 60 days to establish effective internal control systems and policies that align with legal requirements. Evidence of implementation must be submitted to the Auditor General for verification,” the statement highlighted.
“Additionally, the Governor, through the CECM for Finance, is responsible for ensuring accurate financial record-keeping by fund administrators in accordance with the Public Finance Management Act, 2012.”
The Committee has issued a directive to ensure strict adherence to the guidelines set by the Public Sector Accounting Standards Board (PSASB) when compiling annual reports and financial statements.
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It underscored the significance of promptly allocating funds to avoid interruptions in planned initiatives and underscored the necessity of tailoring accounting templates to suit specific needs before deployment.
Additionally, it examined the credentials of personnel within the Accounts and Finance divisions, emphasizing the importance of continuous training and development in these areas.