According to the most recent audit report for Mandera County (2017), the following is a summary of the findings made by the Office of the Auditor General:
- Mandera County executive received a qualified opinion for its management of finances
- The Office of the Auditor General was not able to determine the validity and accuracy if the Fixed Asset Register with a value of Ksh. 19.6 billion; the register lacked details such as serial numbers, description of assets, acquisition dates, location and cost;
- As at 30th June 2018, pending Bills totalled Ksh. 310 million and the auditor noted that crucial information such as names of suppliers, purchase order numbers, date of invoicing and amount paid was lacking;
- Mandera County had budgeted to collect Ksh. 141 million from own sources of revenues during the year 2017/2018 however, the county reported a collection of Ksh. 61 million which was a huge under-performance;
- A total of Ksh. 6.4 billion was budgeted for during the year under review, however, only Ksh. 5.3 billion was spent leading to an under expenditure of Ksh. 1.1 billion;
- The leading under expenditure was by the Mandera County Assembly with Ksh. 311 million remaining unspent followed by health Services which has Ksh. 234 million unspent by the end of FY 2017/2018;
- This is a clear sign that sometimes the problem is not lack of resources but lack of capacity to utilize the available resources;
Development Expenditure
- During FY 2017/2018, Mandera County allocated Ksh. 4 billion for development expenditure
- Mandera County Assembly was allocated Ksh 123 million for development but only Ksh. 15.2 million was spent translating to 87.6% under absorption of allocated resources;
- 50% of resources allocated to the Health Services sector remained unspent by the end of the financial year in Mandera County with a similar amount remaining unspent under the Lands, Housing and Physical planning department;
- It is surprising that 100% of resources allocated towards development under Livestock department remained unspent during the financial year 2017/2018!
Stalled Projects in Mandera County
- The Office of the Auditor General revealed that projects valued at Ksh. 484.4 million started in the previous years was stalled and contractors had abandoned the sites as at 24 Oct 2018;
- As a result of these stalled projects, the residents of Mandera County have not received value for their money;
- Construction of Governor’s House at a cost of Ksh. 107.4 million which was 70% complete as at the time of the audit;
- Construction of Mandera County Assembly (MCG/137/13-14) by Bayan Construction Co at a cost of Ksh. 185 million. By the time of audit it was 70% complete and stalled;
- Regional Livestock Market in Mandera has stalled since 2016 and it is 40% complete;
- Rhamu Water Supply has stalled since 2016 and it is 65% complete. The contract cost was Ksh. 21.5 million;
Comments on the recruitment processes
- The Office of the Auditor General observed that due diligence was not taken when employing new workers at the county considering that a sample of 10 personal employee files revealed that most of the academic certificates were not certified and “there was no evidence indicating that hiring of employees was competitively done;
Conclusion
The most recent audit report for Mandera County shows that that internal audit department was not active as at the time of the auditing. This is a legal requirement which has not been obeyed by the county government. The auditor concluded that “in the absence of a functional internal audit department, the management can easily override controls … cases of fraud and errors may not be detected and corrected in a timely manner.”
Read More:
