PSASB Calls on Counties to Bolster Audit Systems in Fight Against Corruption

Naivasha, Kenya – The Public Sector Accounting Standard Board (PSASB) has issued a directive to County Audit Committees, urging them to strengthen their internal audit systems to combat misappropriation of public funds. This move is in alignment with the government’s “zero-fault audit” directive, which mandates the clearance of all pending audit queries by June of the following year.

According to a news release by the Kenya News Agency, the board has implemented policies and audit manuals designed to guide County Audit Committees in resolving all audit queries related to the utilization of public funds. Over the years, since the inception of devolved units, the Auditor General’s Office has consistently raised audit queries amounting to billions of shillings, stemming from unsupported use of public funds in both recurrent and development expenditures.

Some of the key audit queries raised by the Auditor General include expenditures made without proper documentation, such as invoices and vouchers, discrepancies related to ghost workers, and violations of procurement laws, among others.

Nduati has tasked County Audit teams with exploring strategies to improve governance within their audit systems, aligning them with international best practices to enhance transparency and accountability in the management of financial resources. He emphasized the critical role of efficient internal audit systems in ensuring the prudent management of financial resources in both national and county governments.

Nduati further called on County Audit departments to implement preventive measures, including the adoption of technology, to ensure timely resolution of all audit queries.

Fredrick Riaga, CEO of PSASB, stressed the importance of transitioning from cash accounting systems to accrual accounting within the next three years to enhance accountability in the use of public resources. Riaga made these remarks during a sensitization workshop for county audit teams in Naivasha.

Andrew Musungu, the Head of Audit at the Council of Governors, emphasized the need for continuous training of audit committee members on emerging trends and best practices to ensure proper use of funds. Musungu also highlighted the Council of Governors’ partnership with the Ethics and Anti-Corruption Commission (EACC) to strengthen governance systems in county governments and eliminate corruption loopholes. He noted that EACC’s assistance in conducting corruption risk assessments and developing anti-corruption, whistleblower, and conflict of interest policies had enhanced governance structures.

Efficient audit systems, as stressed by Musungu, play a pivotal role in ensuring the prudent utilization of public resources in county governments, ultimately leading to effective service delivery for Kenyan citizens.