KYENJOJO district accounting officers have failed to account for over sh3b in Central Government grants and local revenue received between the years 2001 and 2005. At a cost of sh350m, the amount could have build nine well-equipped secondary schools, complete with science laboratories or at least 10
KYENJOJO district accounting officers have failed to account for over sh3b in Central Government grants and local revenue received between the years 2001 and 2005. At a cost of sh350m, the amount could have build nine well-equipped secondary schools, complete with science laboratories or at least 100 health centre IIs.
The Auditor General (AG) in his latest report to Parliament says advances amounting to sh83m were not accounted for in the financial year 2001/02.
â€œThe management of advances was poor during the year.
Officials who had not settled previous balances were granted more advances,â€ the report read.
But appearing before the Parliamentary Committee on Local Government Accounts, Albert Mutungwire, the Chief Administrative Officer (CAO) disputed some of the figures in the report. He said sh60 advanced to the staff had been accounted for and documents provided to the effect. However, committee members were not impressed with the documents.
â€œYou have to recover all advances in the year they are advanced,â€ committee chairman Geoffrey Ekanya said.
Kyenjojo CAO is Abert Masiko Mutungwire.
Kyenjojo was carved out of Kabarole district in 2000. The district, like many other rural areas, faces many challenges including poor roads, education and health facilities. It is thus ironic that with such challenges, the district cannot account for billions of shillings.
2001/02 financial year According to the AG report, the district also had contrasts in projected revenue collections and the actual amounts realised.
In the 2001/02, the district had estimated to raise sh1.2b from Graduated Tax, but only sh514m was collected, creating a shortfall of about sh773m. The district had projected to collect over sh1.66b in local revenue, but only sh770m was realised, creating a shortfall of about sh891m.
The report indicated that the district had excess expenditure amounting to over sh625m. The money was spent on administration, finance and planning.
Other queries included doubtful expenditure of sh11.5m and non-reduction of 4% withholding tax totalling sh1.2m.
Mutungwire attributed the big shortfall in revenue collections to taxpayersâ€™ apathy and political statements.
â€œPronouncements in respect to Graduated Tax, which was the biggest source of revenue to local governments, continued through the year until its subsequent suspension in 2005,â€ he said.
Mutungwire also said the AGâ€™s report indicated excess expenditure because some of the relevant documents to back up the expenditures were not included during the audit period.
2002/03 financial year The AG queried the manner in which the closing bank balance of this year was handled.
â€œThe Bank reconciliation statement for the three bank accounts with a closing balance of sh18m were not prepared, while certificates of bank balances for six bank accounts with a closing balance of sh289m, were not availed for audit,â€ the report show.
â€œI am, therefore, unable to confirm the correctness of the balances of over sh1b appearing in the balance sheet,â€ the report states.
According to the report, the district had unrecovered staff advances amounting to over sh93m that financial year.
Revenue performance was lower than estimated, with a shortfal of about sh618m, yet no sound reason was given by the accounting officers for the shortfall.
The AG recorded unaccounted for funds amounting to sh105m, unvouched expenditure amounting to sh42m and doubtful expenditure amounting to sh9m.
According to the report, the district accounting officers claimed they had used the sh9m to purchase desks for schools, but investigations showed no desks were purchased.
â€œThe desks purportedly purchased were not supplied as evidence of delivery and the list of benefiting schools were not availed for audit,â€ the report reads.
According to the report, sh213m for the Poverty Alleviation Fund was also unaccounted for.
Responding to the queries, Mutungwire said as far as Bank reconciliation, was concerned, some documents were not included during audit time and he presented them to the committee.
On the issue of advances, he said of the sh93m advances, sh12m had been recovered and the process was ongoing although it was being hampered by the death of some of the beneficiaries. However, the committee noted it was wrong for advances given out in 2003, not to have been recovered by 2008.
2004/05 financial year According to the report, ledger books for advances amounting to sh415m were badly handled. The report says it is likely the advances had turned into bad debts.
In the same financial year, a total of sh1.04b was spent in excess of the approved budget on education, sports and community-based services. This expenditure was, therefore, unauthorised.
Not satisfied, the Parliament Local Government Accounts Committee ordered Mutungwire to report back with proper accountability.
Kyenjojo fails to account for over sh3b