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{
"id": 1238822,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1238822/?format=api",
"text_counter": 126,
"type": "speech",
"speaker_name": "Mwingi Central, WDM",
"speaker_title": "Hon. Gideon Mulyungi",
"speaker": null,
"content": "This Report highlights what was previously examined and tabled before the House by the SFAC in the 12th Parliament. The Committee reviewed the audit queries, observations, and recommendations for each constituency proposing cause of action in response to matters raised by the Office of the Auditor-General. The SFAC, in its 11th Report, subsequently adopted by the DFAC, made specific observations and recommendations arising from audit queries regarding 11 constituencies, namely, Likoni, Kisauni, Nyali, Jomvu, Bura, Lamu West, Taveta, Mwatate, Ganze, Kilifi North and Malindi. It recommended the investigations of some issues by competent investigative agencies against specific officers of the NG-CDF. In addition, the NG-CDF Board was tasked to follow up on some issues mentioned in the Report. In 15 constituencies, namely, Mvita, Changamwe, Msambweni, Lunga Lunga, Matuga, Kinango, Garsen, Galole, Lamu East, Wundanyi, Voi, Kaloleni, Kilifi South, Magarini and Rabai, the Committee made observations and recommendations that relate to policy issues, non-compliance with existing laws and non-adherence to the International Public Sector Accounting Standards (IPSAS) framework. The section on general observations and recommendations captures issues regarding bookkeeping, preparation and accuracy of financial statements, compliance with reporting standards, accuracy of financial statements, standardisation of projects and late disbursement of funds, compliance with audit cycle timelines, non-remittance of statutory deductions, compliance on the use of emergency funds and reallocation of funds without approval. The Report makes recommendations to address the issues raised, some of which I beg to highlight. Having considered the audited financial statements, the Committee made general observations and recommendations that cut across the 26 constituencies. On the first observation, which is on late disbursement and under-utilisation of funds, the Committee observed that there was underutilisation of funds in different constituencies due to late disbursement of funds by the Board and the National Treasury, hence rollover of funds from subsequent years due to late receipts. That is similar to what is happening now. Two months before the end of the financial year, the National Treasury is yet to release over 60 per cent of NG-CDF funds. On this observation, the Committee recommends that the National Treasury should ensure timely disbursement of funds to the Board for immediate release to constituencies. Secondly, the Committee recommends that the Cabinet Secretary for the National Treasury and Economic Planning should submit to the National Assembly constituencies’ quarterly exchequer disbursements schedule not later than the 15th day of the end of each quarter. On bookkeeping and preparation and accuracy of financial statements, the Committee observed that bookkeeping and preparation of financial statements is a big challenge in almost all the constituencies’ offices. The Committee recommends that the Board strengthens the constituency offices by establishing treasury units to serve the constituencies. Currently, constituencies are served by sub-county treasury units. On compliance to reporting standards and accuracy of financial statements, the Committee observed that Fund Account Managers (FAMs) experience challenges in adapting to IPSAS reporting framework in preparation of financial statements. Therefore, the Committee recommends that the Board should conduct continuous capacity building on financial reporting standards for constituency committees and PMCs to improve quality of reporting and enhance compliance. Secondly, he Committee recommends that the Board considers employing qualified accountants for constituency offices beginning in the Financial Year 2022/2023 within the 5 per cent administrative allocation to the Board. This will strengthen maintenance The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}