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Report of the Auditor-General on the Accounts of the Government of Kenya for the Year Ended 30 June 2013

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Report of the Auditor-General on the Accounts of the Government of Kenya for the Year Ended 30 June 2013 REPORT OF THE AUDITOR - GENERAL ON THE APPROPRIATION ACCOUNTS, OTHER PUBLIC ACCOUNTS AND THE ACCOUNTS OF THE FUNDS OF THE REPUBLIC OF KENYA FOR THE YEAR 2012/2013 Table of Contents Vote Ministry/Commission/Agency Page 107. Ministry of Finance ....................................................................................................... 1 101. Ministry of State for Provincial Adminstration and Internal Security ....................... 45 102. State House ................................................................................................................. 80 103. Ministry of State for Public Service ........................................................................... 82 104. Ministry of Foreign Affairs ........................................................................................ 85 105. Office of the Vice-President and Ministry of Home Affairs ...................................... 90 106. Ministry of Planning, National Development and Vision 2030 ............................... 109 108. Ministry of State for Defence ................................................................................... 241 109. Ministry of Regional Development Authorities ....................................................... 247 110. Ministry of Agriculture ............................................................................................ 255 111. Ministry of Medical Services ................................................................................... 270 112. Ministry of Local Government ................................................................................. 283 113. Ministry of Roads ..................................................................................................... 291 114. Ministry of Transport ............................................................................................... 305 115. Ministry of Labour ................................................................................................... 310 116. Ministry of Trade...................................................................................................... 317 117. Ministry of Justice, National Cohesion and Constitutional Affairs ......................... 325 118. Ministry of Gender, Children and Social Development ........................................... 328 119. Ministry of Livestock Development......................................................................... 336 120. Ministry of Water and Irrigation .............................................................................. 347 121. Ministry of Environment and Mineral Resources .................................................... 358 122. Ministry of Co-operative Development and Marketing ........................................... 364 123. Cabinet Office .......................................................................................................... 371 124. Ministry of East African Community ....................................................................... 376 125. State Law Office ....................................................................................................... 381 126. The Judiciary ............................................................................................................ 382 130. Ministry of Energy .................................................................................................. 396 131. Ministry of Education ............................................................................................... 401 132. Ministry of Information and Communications ........................................................ 411 134. Ethics and Anti-Corruption Commission ................................................................. 415 135. Ministry of State for Special Programmes ............................................................... 416 136. Ministry of Lands ..................................................................................................... 427 140. Ministry of State for Immigration and Registration of Persons ............................... 432 141. Ministry of State for National Heritage and Culture ................................................ 441 142. Ministry of State for Youth Affairs and Sports ........................................................ 447 143. Ministry of Higher Education, Science and Technology ........................................ 461 144. Ministry of Housing ................................................................................................. 470 145. National Intelligence Service ................................................................................... 480 146. Ministry of Tourism ................................................................................................. 483 148. Office of the Prime Minister .................................................................................... 488 149. Ministry of Public Health and Sanitation ................................................................. 491 155. Ministry of Forestry and Wildlife ............................................................................ 496 156. Ministry of Fisheries Development .......................................................................... 502 157. Ministry of Nairobi Metropolitan Development ...................................................... 507 158. Ministry of State for Development of Northern Kenya ........................................... 512 159. Ministry of Public Works ......................................................................................... 517 160. Ministry of Industrialization ..................................................................................... 531 163. Director of Public Prosecutions ................................................................................ 539 165. Commission for the Implementation of the Constitution ......................................... 540 168. Office of the Registrar of Political Parties .............................................................. 541 169. Witness Protection Agency ...................................................................................... 542 201. Kenya National Commission on Human Rights ...................................................... 543 203. Independent Electoral and Boundaries Commission (IEBC) ................................... 544 204. Parliamentary Service Commission ......................................................................... 550 206. Commission on Revenue Allocation ........................................................................ 553 207. Public Service Commission...................................................................................... 554 208. Salaries and Remuneration Commission .................................................................. 556 209. Teachers Service Commission ................................................................................. 557 210. National Police Service Commission ....................................................................... 558 212. Controller of Budget ................................................................................................. 561 213. Commission on Administrative Justice .................................................................... 562 214. National Gender and Equality Commission ............................................................. 563 Audit Opinions on Financial Statements .................................................................. 565 Appendices ............................................................................................................... 573 ii MINISTRY OF FINANCE RECURRENT APPROPRIATION ACCOUNT- VOTE R.107 Basis for Disclaimer of Opinion 1. Negative Expenditure The Appropriation Account for Vote R.107 for the year ended 30 June 2013 reflects a negative expenditure of Kshs.30,000.00 under Head 107002100, Item 2211000 – Specialized Materials and Supplies. Apart from failure to explain how the negative expenditure of Kshs.30,000.00 arose, the accuracy of the Net Surplus to be Surrendered to Exchequer of Kshs.703,653,672.90 is also doubtful as it is overstated by the same amount of Kshs.30,000.00. No explanation has been given for the anomaly. 2. Grants to Government Agencies and Other Levels of Government The Appropriation Account further shows under various Heads expenditure totalling Kshs.14,449,125,257.00 under Item 2630100 – Current Grants to Government Agencies and Other Levels of Government which differ by Kshs.1,689,666,257.00 from the figure of Kshs.12,759,459,000.00 reflected as grants during the year in the financial statements of the following Government Agencies: Grants as Grants per per Appropriation Statement of Account the Agency Difference Kshs. Kshs. Kshs. Kenya Revenue Authority 13,701,230,407.00 12,059,459,000.00 1,641,771,407.00 Public Procurement Oversight Authority 348,799,680.00 305,000,000.00 43,799,680.00 Kenya Trade Network 199,935,500.00 200,000,000.00 (64,500.00) Privatization Commission 199,159,670.00 195,000,000.00 4,159,670.00 Total 14,449,125,257.00 12,759,459,000.00 1,689,666,257.00 The difference of Kshs.1,689,666,257.00 between the two sets of records was not clarified as at the time of the audit. Pending Bills Examination of records maintained at the Ministry of Finance Headquarters revealed that bills totalling Kshs.14,507,419.00 chargeable to the Recurrent Vote were not settled during the year, but were instead carried forward to
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