Members of Parliament’s Public Accounts (PAC) yesterday put Rwamagana District officials to task to explain why Rwf5 billion generated through Non-Budget Agencies (NBAs) in the district in the fiscal year 2012/13 was not accounted for.

The local officials, who included the district mayor Nehemie Uwimana, executive secretary Henry Kakooza, and advisory council chairperson Alphonse Murenzi, were among the officials who appeared before PAC as it began a series of public hearings related to cases of mismanagement of misappropriation raised in the 2012/13.Auditor General’s report.

"Where is this money?” MP Médiatrice Izabiriza asked the officials.

Théoneste Karenzi, PAC vice-chairperson, wondered why the district finances NBAs’ annual budgets yet the latter were not bringing revenue directly into the district coffers.

However, the district officials said the money was used appropriately by, especially the same agencies that generated it (NBAs).

Kakooza said they have since decided to consolidate NBA revenue and incorporate it into the district budget.

"We have undertaken new measures to see how we can consolidate financial statements and revenue from NBAs in the district,” he said, adding that the problem was not with Rwamagana alone but other districts as well.

"We will take your advice to make sure that we address this issue appropriately.”

According to the Auditor General’s report, a total of Rwf175.85 billion, amounting to 12 per cent of the 2012/13 national budget, generated by non budgeted agencies was not accounted for in the financial statements of districts.

This revenue stream includes funds collected from secondary schools, tertiary institutions and hospitals.

The AG’s report indicated that the said the unaccounted for revenue was spent outside the treasury framework and not included in state consolidated statements.

Murenzi acknowledged that there could have been poor financial reporting with regard to the funds generated by NBAs, which affected reconciliation of district financial statements.

"We had a meeting with the heads of these agencies and advised them to make sure that they report regularly to the district so that we can implement the recommendations from the Auditor General,” he said.

Rwamagana officials were also grilled over another Rwf6 million which was spent on hotel reservation for a district council meeting that never took place.

But the officials could not provide a plausible explanation, only suggesting that they have since taken measures to improve on their reporting system.

"We acknowledge that there could have been a few mistakes in financial reporting, however, we have come up with resolutions to curb poor financial reporting and management,” said the mayor, Uwimana.