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The National Treasury said counties failed to use the Integrated Financial Management Information System (IFMIS) correctly as required by law, hence the audit confusion.
This statement comes in the wake of questions on how counties such as Kiambu had allocated money to projects funded by the National government.
However, the statement by the Principal Secretary of National Treasury Kamau Thugge vindicated governors on the ‘abnormal expenditures’ in the counties.
The Treasury said there might have been a mix-up in the budget, revenue and expenditure reporting.
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Principal Secretary of National Treasury Kamau Thugge
Procedure to use
PS Thugge statement said in part: “The county financial statements by votes and economic items in IFMIS reflect the correct information as budgeted by counties."
It further added: "However, we note that a number of counties do not pay attention to the budget by programmes as required by the law."
Treasury said that counties were supposed to fill in their budgets and expenditures on the ‘GOK IFMIS budget execution by programmes and sub-programmes -County’ tab.
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National Treasury Cabinet Secretary Henry Rotich (left) and Principal Secretary Kamau Thugge
Directions from PS
The affected counties are said to have used ‘wrong templates’ to report in the Ifmis.
Ifmis system is designed with budget codes which create a standard chart of accounts for both national and county governments, according to officials from the Council of Governors (GoG).
PS Thugge directed counties to capture all revenues and expenditure transactions in the Ifmis.