The Accountant-Jan-Feb 2017


Public Policy


Reforming Financial Management

In The Public Sector

By CPA Nelson,

Strengthening office of the

Auditor General

We have noticed significant attention

being given to security apparatus of the

country in the past in order to secure

our borders and maintain law and order

internally including shutting out oversight

agencies from policing them- national

assembly not spared in the guise of

confidentiality. Under 2010 constitution,

the office of the Auditor general has

been given mandate to audit all public

institutions. In order to discharge this role

in an effective way, sufficient funds should

be allocated to protect public interest.

Eurobond saga is still fresh in our minds

with over sh215billion still shrouded in

mystery. The other mega scandal of 1990’s

was Goldenberg ksh5. 8billion.The funds

sought will be used to strengthen system

infrastructure including partnering with

forensic accountants to deal with mega

crimes of the magnitude the country is

witnessing. Kenya’s spending budget has

grown over the years and now stands at

ksh2.2 trillion

Reforming financial

management system at

national treasury

We are all aware National Treasury has

been undergoing reforms over the years

in order to deliver a master piece to the

nation in terms of financial management

relying in what was put in place by

colonial treasury and financial orders that

were put in place by past office holders

Michuki, Mule, Nganga, Kibinge. There

was sterling performance during their

tenure resonating to district treasury and

agencies. Remember there was no financial

management act or IAS/IPSAS.

It is reported that IFMIS was acquired

and installed at ksh5bllion.It is now time

we review the effectiveness of the system

through systems audit as provided for in

Public Audit Law 2015. Funds should be

set aside for this mega project to assist

National Treasury perform its oversight

role to its agencies.

Reports from OAG indicates auditees

are not taking seriously audit reports.,

viewing auditors as enemies putting

under check their high appetite for

wasteful spending. Governments need

to invest in developing their people; the

most appreciable assets, to protect state


They should be open forums to

discuss the output of auditor reports

initiated by principal Auditee-National

Treasury; targeting all heads of public

institutions and county governments as

a demonstration of buy in of challenges

encountered in the use of public resources.

This is an avenue with high payoff and the

government should embrace and allocate

resources for sustainability of momentum

of change.

Opening balances in financial


We were made aware that the government

has no opening balances in their financial

statements, as echoed by AOG during

ICPAK Annual seminar this year. No

lightning will strike in order for this

to be realized. We have watched this

glaring omission since 1963.Government

must invest in modernizing its financial

reporting system. National Treasury should

spearhead this exercise beginning 2017-

2018 fiscal year. This is a mega project

but it is being suggested at a time when

Kenya’s resource of accountants stand at

over 20,000 at hand to help government

manage change. The government should

be exhorted to provide funds to manage


Strengthening Public

Procurement Oversight

Authority (PPOA)

This is an institution that was established

following the enactment of the Public

Procurement Act 2005 Rules 2005 to


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