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{
    "id": 1550043,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1550043/?format=api",
    "text_counter": 322,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "There were issues of violation of the International Public Sector Accounting Standards (IPSAS), which require that financial statements must be reliable, comparable and free from material misstatement. What gets measured gets managed. However, when those particular reasons are not measured, it becomes difficult to manage them. Without proper accounting and reconciliation, mismanagement will definitely be inevitable. Financial transparency requires that we have real-time record-keeping and timely submission of documents for audit. However, as noted in the Committee Report, some State Departments, for example, the State Department for Early Learning and Basic Education, failed to submit procurement documentation for the construction of classrooms for the Competency Based Curriculum (CBC). This raises serious concerns about financial capacity in the education sector. Section 68 of the Public Finance Management (PFM) Act mandates that there must be timely reports, yet those institutions ignored that requirement. The late submission of those financial statements led to unnecessary delays. That is something that needs attention. The Public Procurement and Asset Disposal Act of 2015 provides clear guidelines on competitive bidding and value for money. However, we still see very many entities like the State Department for Public Works, which single-handedly contracted Prosoya Kenya Limited thus bypassing a competitive procurement process. There must be strict adherence to the Public Procurement and Asset Disposal Act. Again, we have professionals who work in those areas and they understand the law. They know what they need to do but they do not do it. For Government spending to be effective, it must be subject to strict financial discipline or else it becomes a source of waste and corruption. There must be strict adherence to procurement controls; otherwise the Government risks huge financial haemorrhage and reduced service delivery to the people when those protocols are not adhered to. A matter that occurs every year is unresolved prior-year audit issues. We had a discussion with the Auditor-General a few weeks ago and she would say: “As per my other reports or as per my earlier reports.” Matters debated in this House and those raised by this Committee end up recurring in subsequent financial years. Therefore, I urge all accounting officers to ensure that matters that are unresolved in a given audit report are resolved before the next financial year. What are the Committee recommendations? There is need to strengthen financial management systems to ensure compliance with IPSAS and International Financial Reporting Standards (IFRS). I love the recommendation made by the PAC, one of them being mandatory continuous professional development for Government accountants that must be enforced by the Institute of Certified Public Accountants (ICPA). There must be implementation of real- time financial reporting systems so that we enhance accuracy and reduce end-year reconciliations. Strong financial controls are not just about compliance but also about ensuring that there is fiscal sustainability. The Committee also recommends enforcing timely submission of audit documentation. All accounting officers must adhere to audit timelines because delayed reports undermine accountability and also delay remedial actions. The PAC recommends that there must be penalties imposed on officers who fail to timely submit audit documentation as contained in the PFM Act. They must also enhance procurement oversight with the need to have e-Procurement across all Government entities. This will ensure that there is more compliance and transparency 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."
}