In a Narrative Report on Appropriation Accounts, Miscellaneous Funds and Donor Funded Projects compiled by her office for the financial year ended December 31 2010 released yesterday, Chiri said the bulk of transactions for the greater part of 2010 were processed outside the Public Finance Management system through which all financial transactions should be processed.
Chiri said: “In my report for the financial year ended December 31 2009, I reported the constant breakdown of this system. The breakdown continued for the greater part of the 2010 financial year leading to the bulk of the transactions being processed outside the system… As a result, I was not able to ascertain whether all the transactions relating to revenue, expenditure and assets processed manually by ministries were fully captured in their respective year and accounts. Consequently I could not express an opinion on the accounts. I have issued a disclaimer of opinion for 2010.”
The report also accused ministries of failing to follow proper tender procedures when procuring assets and services.
The office of the president and cabinet is reported to have failed to submit accounts on time and this affected the progress of audits. The president’s office also failed to account for about US$750 468, a difference noted after the Sub Paymaster-General’s account reflected payments totalling US$82 979 436 while the appropriation account expenditure was listed as US$83 729 904.
The prime minister’s office was reported to have an unreliable accounting system and Chiri could not determine the correctness of the total expenditure incurred by that office.
It had three different figures within the range of US$9,3 million and US$9,9 million which it failed to reconcile.
Parliament also had an unreliable accounting system with Chiri noting that 10 vehicles worth US$326 802 were purchased by the legislature without following tender procedures in contravention of Treasury Instruction 1005 (1).
Payment vouchers showing details of the acquisition of vehicles were not produced and Chiri said she could not assess the legality and accuracy of the purchases.
Chiri said that it was difficult to reconcile expenditure figures from the Defence ministry due to the absence of reliable accounting records, accurate and complete financial information.