Auditor General uncovers Sh15.5bn revenue inaccuracies in eCitizen report
By Hanifa Adan |
The report highlights that revenue statements totalling over Sh600 million do not fairly represent the financial position and performance of the eCitizen revenue accountability statement.
Auditor General Nancy Gathungu has questioned the accuracy of revenue receipts amounting to Sh15.5 billion in the eCitizen Revenue Accountability Statement for the fiscal year ending June 30, 2023.
This revelation was included in a report presented to the National Assembly's Finance and Planning Committee.
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The report highlights that revenue statements totalling over Sh600 million do not fairly represent the financial position and performance of the eCitizen revenue accountability statement for the reviewed period.
Specifically, discrepancies were found at the registrar of motor vehicles, where there was a Sh12 million variance between revenue statements and e-portal system receipts, a Sh35 million variance between revenue statements and ledger balances, and a Sh22 million variance between e-portal system receipts and ledger balances.
"In the circumstances, the completeness and accuracy of the receivers of revenue receipts of Sh15.5 billion could not be confirmed," the Auditor General's report stated, flagging these inconsistencies.
Cash and Cash Equivalents Balance
The report also pointed out issues with the Cash and Cash Equivalents Balance on the eCitizen platform, noting a financial statement that showed a balance of Sh611 million, including Sh436 million maintained in six accounts at two local banks.
However, cash books and bank reconciliation statements for these six accounts were not provided for the audit.
Instead, a combined bank reconciliation statement for three dollar accounts was prepared, which is against the Public Finance Management regulations of 2015 that require separate reconciliations for each bank account.
"The completeness and accuracy of the bank balances of Sh611 million could not be confirmed," the report concluded.
Additionally, the Auditor General raised concerns about unsupported prior year balances of Sh146 million related to revenue that had not been transferred to the respective collecting agencies.
The report noted that the details of the bank accounts containing these prior year balances and the reasons for the delay in transferring the funds were not provided.
"The completeness and accuracy of the prior year's balances of Ksh.146 million could not be confirmed," the report adds.
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