ICPAK pushes for greater accountability in national gov’t spending

The Institute of Certified Public Accountants of Kenya (ICPAK) has called for stronger accountability in the management of public funds, flagging persistent weaknesses in financial reporting and fiscal discipline across national government ministries, departments, and agencies (MDAs).

In its latest Public Audit Review, released on Tuesday, ICPAK examined the audited financial statements of MDAs for the 2020/21, 2021/22, and 2022/23 financial years.

The review assessed compliance, internal controls, and governance practices in line with Article 229 of the Constitution and the Public Audit Act, 2015.

According to ICPAK Chairperson Prof. Elizabeth Kalunda, the review seeks to promote value for money and enhance oversight by Parliament, regulatory agencies, and civil society.

“By weaving credibility, professionalism, and accountability into every strand of governance, Kenya can nurture a public finance system rooted in integrity,” she said.

The report revealed a mixed picture of progress and recurring weaknesses. While the number of unmodified audit opinions rose from 22 in FY 2020/21 to 28 in 2022/23, ICPAK noted that a majority of public entities continue to face recurrent audit queries, including unsupported expenditures, irregular procurements, and weak internal controls.

It also observed a sharp rise in pending bills, from Ksh.72.3 billion in 2020/21 to Ksh.130.8 billion in 2022/23, signalling growing fiscal strain and inefficiencies in budget execution.

Under-expenditure widened from 5 percent to 11 percent over the same period, despite gross expenditure increasing from Ksh.3.21 trillion to Ksh.3.61 trillion.

The report raised concern that several individuals signing off on financial statements were not in good standing with ICPAK, in violation of the Accountants Act and professional ethics.

“There was a decline in members in good standing from 34 in FY 2020/21 to 30 in FY 2022/23, indicating the need to strengthen professional accountability frameworks,” the institute said.

ICPAK urged the Office of the Auditor-General, Parliament, and the National Treasury to enforce the requirement that preparers and signatories of public financial statements must be ICPAK members in good standing.

It also called on Parliament to strengthen oversight by ensuring audit recommendations are acted upon and tracked.