By Daily Nation

According to the report, the county government was also put on the spot for paying Sh2,375,996 to purchase various items that had not been recorded so as to show they were received and issued out for use.

The items could not be traced in stores, as no ledger cards were made available, though the items were received using S13 cards.

PROCUREMENT PROCEDURES
Procurement procedures require that while receiving purchases, goods and services are recorded through S13 and subsequently entered in S3 cards then stored in the stores for further issuance to departments for subsequent use.

The report states that the defunct councils continued operating the accounts, some of them to date in total disregard of the County Governments Public Finance Management Transition Act, 2013, which required that the bank accounts be closed and reconciliations done within three months.

The creditors’ balances amounting to Sh23,156,332 handed over to the county government by the defunct County Council of Migori were not supported by creditor’s registers, original contract agreements, invoices, delivery notes, statements, schedules and payrolls.

According to the Auditor General’s office, records provided indicate debtors’ balances amounting to Sh7,187,942 were handed over to the county government by the defunct County Council of Migori.

“Outstanding debtors’ balances were not supported by listings, debtors’ registers, copies of invoices and demand notices. The outstanding debtors’ balances have not been incorporated in the books of the county government,” reads the report.

RECEIPT BOOKS
“A stock take of unused receipt books held by the defunct local authorities at the time of changeover to the new series of receipt books by the county government was not done. This omission is likely to have opened room for possible misappropriation of receipts from debtors,” it goes on.

The County Council of Migori, the report adds, also irregularly recruited 22 personnel without the authority of the then Ministry of Local Government and approval from the finance committee.

Due to this irregular recruitment, the Migori County government paid Sh2,059,330 between the months of April to June 2013.

“The 22 new employees were taken over by the County Government of Migori and subsequently added into the payroll. Later on (July 2013), the county government stopped salaries of 17 employees when it discovered that they were irregularly employed.”

LAPTOPS
Three laptops purchased by the defunct Municipal Council of Kehancha could not be physically verified as it was explained that they were issued to former staff, who upon transfer never surrendered them.

Mr Ouko said from their observations, it was clear that the process of the taking over of assets and liabilities, including the staff of the former councils, was not properly handled due to apparent lack of leadership by officials of the Transition Authority who had the responsibility to ensure a smooth and seamless transition process.

“The county government should however ensure full control of functions, including revenue collection, recording and proper accounting for the same while awaiting guidance from the national Treasury based on the accounting and reporting systems to be developed by the Public Sector Accounting Standards Board,” he said.