At least $10 million dollars was spent in 2018 by state institutions without adequate support documents to account for even as all institutions including the Presidency, Office of the Prime Minister and Accountant General failed to submit their accounts for auditing.
The Consolidated Compliance Audit covering the non-security sector released this past week indicates state institutions comprising the Executive and both Houses of Parliament spent at least $10,157,303.8 but could not adequately account for since there were no adequate support documents.
According to the Financial and Accounting Procedure of the State Act 1960, every officer or agent managing public finances of the State is required to render accounts and submit to the Accountant General as stipulated in Article 39.
NO ONE COMPLIED
But the report released Wednesday which is considered the first and most comprehensive audit of public finance, indicates none of the institutions, from the Ministry of Finance to the Office of the Accountant General submitted their accounts for audit.
Annual accounts include statements of receipts and payments, statement of comparison of Budget and Actual Amounts and statement of cash flows. Others are statements of financial assets and liabilities and comprehensive accounting policies and detailed explanatory and disclosure notes.
Somali Prison Forces led the pack in institutions spending $3,079,914 but with no adequate documents to explain the expenditures.
The Ministry of Foreign Affairs spent a total of $1,045,762.6 but could not satisfactorily account for since it did not present adequate documents.
Out of this amount, were payments to 40 Somali embassies amounting to $852,450. Next was the Lower House which could not adequately explain how it spent $ 608,751, with $ 366,351 covering travel costs.
The Somali Civil Aviation and Meteorology Authority came third with a spending of $544,272 with no adequate support documents. Total payments amounting to US $532,276 were made to NAC Hotel, for security guards and to cleaning staff were not adequately supported, the report says.
The Office of the Prime Minister paid $403,333.37 paid between January and November in 2018 as travel costs without adequate supporting documents. Other top spenders which could not adequately account for their expenses are Ministry of Health ($301,816), Lower House ($242,400) and Transport ($157,551.10).
UNAUTHORIZED INTERNAL RE-ALLOCATION
The report also takes issue with unauthorised internal re-allocation of funds and use of funds outside the respective budget areas. The Lower House topped the list here with $362,000 unauthorised internal re-allocation. The Lower House entered into contracts worth $2 million which were not registered with the Office of the Auditor-General.
Banaadir administration spent $442,734 to buy vehicles without following the procurement process, the report says. It adds, “Those vehicles were purchased for individuals outside from BRA and other institutions.”
The report does not capture any spending in the office of the President but states it too, did not submit its accounts for auditing.