Auditor General raises concerns over Ksh.15.5B eCitizen revenue statements

Auditor General Nancy Gathungu has flagged the eCitizen Revenue Accountability Statement for the Year Ended June 30, 2023, questioning the accuracy of revenue receipts amounting to Ksh.15.5 billion which she says cannot be confirmed.

According to the report which was tabled before the National Assembly’s Finance and Planning Committee, revenue statements amounting to over Ksh.600 million do not present fairly the financial position of the eCitizen revenue accountability statement and performance for the period under review.

At the registrar of motor vehicles, the variance between revenue statements and e-portal system receipts amount to Ksh.12 million, the variance between revenue statements and ledger balances was Ksh.35 million, while the variance between e-portal system receipts and ledger balances amounts to Ksh.22 million.

In flagging the inconsistencies in the eCitizen revenue accountability, the office of the Auditor General states in the report; “In the circumstances, the completeness and accuracy of the receivers of revenue receipts of Ksh.15.5 billion could not be confirmed.”

The office further highlights anomalies in the Cash and Cash Equivalents Balance in the eCitizen revenue accountability platform, in which a statement of financial assets reflects a balance of Ksh.611 million in respect of bank balances, including Ksh.436 million maintained in six accounts at two local banks.

The Office of the Auditor General noted that; “Cash books and bank reconciliation statements for the six bank accounts were not provided for audit. Management prepared a combined bank reconciliation statement for 3 dollar accounts, contrary to Public Finance Management regulations 2015, which require accounting officers to ensure that bank accounts reconciliations are completed for each bank account held.”

“The Completeness and accuracy of the bank balances of Ksh.611 million could not be confirmed.”

The Auditor General also raised a red flag on “Unsupported Prior Year Balances of Ksh.146 million relating to revenue received that had not been transferred to the respective collecting agencies.”

The report indicates that “details of bank accounts containing the prior year balances and reasons for the long delay in transferring the funds were not provided.”

It hence noted that the completeness and accuracy of the prior year's balances of Ksh.146 million could not be confirmed.