The Auditor-General's authority stems from Article 229 of the Kenyan Constitution and the Public Audit Act, 2015, which mandates oversight of public resource management across 1,600 entities. Despite auditing over 1,600 financial statements annually, the office faces persistent underfunding that limits audit scope and depth.
Gathungu emphasized ongoing efforts to maintain timely reporting, noting that audit reports for the 2020/2021 financial year are current. A proposed amendment to the Public Finance Management Act, 2012, seeks to grant additional time for report submissions, with hopes of reaching consensus with Parliament and stakeholders.
Parliament and county assemblies play a critical role in financial oversight, as outlined in constitutional articles 95, 96, and 185. These bodies appropriate funds, legislate financial management frameworks, and ensure accountability through audit reports that validate public resource utilization.
Internal audit functions, now legally mandated for public entities, face challenges including inadequate resources and weak implementation of recommendations. Gathungu urged accounting officers to strengthen internal audits, ensure independence, and act on findings to reduce external audit findings.
Performance audit reports on sectors like mental health and road management remain unaddressed in Parliament, prompting calls for structured engagement and committee assignments to facilitate deliberations. A lack of follow-up mechanisms has led to recurring audit issues, with Gathungu developing a tracking framework to monitor implementation of recommendations.
The Kenya Integrity Plan 2019-2023 includes establishing ethics units in all ministries, a goal Gathungu continues to advocate. She also highlighted efforts to improve public access through localized reports, including a Kiswahili version for national government audits.
Audit committees at the county level provide oversight of financial reporting and implementation of audit recommendations. Gathungu stressed their importance in fostering dialogue between auditors and accounting officers.
Regarding the National Government Constituency Development Fund (NG-CDF), Gathungu clarified that MPs' role is limited to financial appropriation and legislation, though they should monitor fund utilization for constituent development.
