Summary of Audit findings for the Ministry of Health (National level)
Summary of Audit findings for the Ministry of Health (National level)
| Post date: Fri, Jun 8, 2018 | | Category: Health | |
Article 229(6) of the constitution of Kenya requires accounting officers at the ministry to ensure effectiveness and lawfulness in the expenditure of public finances. These principles of finance are critical in enhancing efficiency, economic and effectiveness which guarantees value for money to the tax payer (the rights holders).
An examination of the financial findings by the auditor general reveals various audit queries in the ministry of health, as summarized in the table below:-
Source: Authors’ compilation – various sources
The actual expenditure for the ministry of health has been on the upward trend, having increased from Ksh 27.8 billion in 2103/14 to Ksh 42.3 billion in 2015/16.
In terms of overall audit opinion, in 2013/14 the ministry was awarded an adverse opinion; this is an opinion that is expressed when audit matters on the financial statements are so material and pervasive that renders the financial statements to be misleading. In 2014/15 and 2015/16 the ministry received a qualified opinion; this is expressed when the misstatement or limitation on the audit is not as material and pervasive as to require an adverse opinion or a disclaimer of opinion.
A total of 46 issues were raised in 2013/14, this decreased to 20 but later increased to 35 in 2015/16.
Majority of the queries raised relate to poor book keeping and include: failure to reconcile books of account and lack of verification documents. These queries undermine PFM regulations on enhancing transparency and accountability.
It is also noted that most audit queries are largely within the control of the accounting officers since they entail book keeping.
Across the findings, there are cases of high opportunity costs incurred due to poor management of funds for instance, the case of the Stalled Project: The Proposed Upgrading of Othaya District Hospital Phase I
Audit findings reveal that the cost for the upgrading of Othaya District Hospital was revised from the initial contract value of Kshs.436 million to Kshs.578 million resulting in a variation of Kshs.142 million. Further revelations show that the above variation excludes a 10% reduction in scope of work which if considered will give variation of up to 43% at the close of FY 2015/16. Despite cumulative payment of Ksh 502 million, the project has since stalled. No project progress reports have been availed for audit review. The completion of the outstanding works is evaluated at Ksh 272 million implying no value for money for the Ksh 230 million. Nyeri county experiences high reported cases of respiratory diseases; a medical condition that encompasses pathological conditions affecting the organs and tissues of the respiratory system. A common drug for such disease is Amoxicillin for bacteriologic eradication. Ksh 230 million would have been adequate to stock the county hospitals with approximately 4.6 million units of 500mg Amoxilicillin dosage for adults.
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