Government domestic arrears have continued to escalate with the newly released Auditor Generals report putting the figure at 2.25 trillion Shillings up from 1.32 trillion reported in a June 2015 report. Auditor General John Muwanga today presented his June 2016 audit report to Speaker of Parliament Rebecca Kadaga.
Auditor General John Muwanga today presented his June 2016 audit report to Speaker of Parliament Rebecca Kadaga. Muwanga noted that the report entails a total of 1,417 audits including financial audits, forensic investigations, value for money audits and specialised audits.
The report indicates that pension arrears currently stand at 561 billion Shillings while other domestic arrears are 1.6 trillion Shillings. This is an increment from the June 2015 reported figures of 216 billion Shillings and 1.1 trillion Shillings respectively.
Muwanga says that government's outstanding commitments have continued to escalate for the past three years.
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Meanwhile, the audit report also indicated that Shillings 446 billion in domestic arrears was unaccounted for by June 30, 2016.
The report indicates that the consolidated financial statements put the figure of domestic arrears at 2.25 trillion Shillings but the audited position of the Internal Auditor General puts the figure at 2.7 trillion Shillings leading to a variance of 446 billion Shillings.
"I note that in a number of entities, accounting officers are paying for domestic arrears which previously were not disclosed nor budgeted for, and some entities did not fully disclose their arrears position as per Secretary to Treasury guidance," reads part of the report.
The auditor general says that weaknesses in the commitment control system continue to enable accounting officers to incur domestic arrears. He also blames the absence of a clear policy to entities regarding the treatment of arrears that do not meet the criteria set in the guidance.
Muwanga recommended government to review current policies on commitment control with the aim of enhancing its effectiveness.