Auditor general pokes hole in Lamu revenue collection system citing loss of...

Auditor general pokes hole in Lamu revenue collection system citing loss of funds

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Lamu county assembly at a previous session. PHOTO/FILE.

Lamu, KENYA: The Revenue Collection systems applied and used in Lamu County are questionable and filled with numerous discrepancies, the auditor general has revealed.

In a report on the financial statements of Lamu county for the year ended 2015,the auditor general details information of how statements of receipts and payments disclose a balance of a whooping Sh.51,403,506.05 in respect of other receipts for the year ended 30 June 2015.

The audit verification revealed that the county government relies on a manual system for recording revenue.

However,as at the time of audit in January 2016,there was no revenue ledger and the revenue cashbook had not been updated for several months.

The balance of the Sh.51,403,506.05 had merely been based on revenue bank account statements.

This is contrary to section 165(1) of the Public Finance Management Act that the receiver of revenue for county government to prepare an account in respect to the revenue collected,received and recovered during a financial year.

The auditor general revealed that as a result of such flaws,it was impossible to determine how much revenue was due for collection,actual collections,the amounts banked and a reconciliation for any variance.