MPs applaud public funds management

Lawmakers have applauded the “significant improvement” in management of public finances as highlighted by the Auditor-General. Presenting the report for the fiscal year ended June 30, 2012, Auditor General Obadiah Biraro told a joint parliamentary session that overall, there is a significant improvement in financial management in public entities. “Notably, the number of entities that obtained reports with unqualified (clean) audit opinion increased from 11 (9 per cent), last year, to 37 reports (28 per cent),” Biraro said. “This improvement is attributed to positive changes in the audit environment such as: continued commitment by many Chief Budget managers to implement audit recommendations, Government follow up of Auditor General’s recommendations through Imihigo, continued oversight by PAC, among other measures. Biraro particularly lauded seven ministries for having clean audit reports, which he said was a great achievement. The ministries are; finance, agriculture, natural resources, EAC affairs, trade and industry, public service and labour, and that of youth and ICT. He said the sum of money used without sufficient supporting documents declined by Rwf7b from Rwf10b “because of a changing mindset.” Biraro said wasteful expenditure, among others, also decreased from Rwf1.6 billion to Rwf850 million. Lawmakers take on achievement MP Francis Kaboneka said: “I am happy the OAG has now covered 75 per cent (of Budget agencies) and this is an indication that in the very near future we shall audit 100 per cent of institutions but I also appreciate the manner in which things are progressively getting sorted out. Secondly, the mindset change by Budget agencies, that is evident in all this, is worth thanking.” The Deputy Chairperson of the Public Accounts Committee (PAC), Evode Kalima, said: “There are, clearly, very many good things in this new report compared to previous ones. The worry that public finances and property are mismanaged is diminishing. I am saying this largely because the Office of the Auditor General’s capacity has been increasing and it knows what to do.” Entities audited In terms of entities audited, the number covered by the audits represents 39 per cent of all entities included in the State consolidated financial statements. This is an increase of 7 per cent from what was covered last year. There is continued focus on audit of districts to support decentralisation strategy and on ministries and provinces since they are the overall supervisors of government programmes. There was also focus on government boards (agencies) since most had not been audited since their creation in the last one to three years. Some government projects, especially those funded by the World Bank, were also given attention. The total number of entities and projects audited during this reporting period is 129 out of the 334 entities and projects consolidated. Compared to the previous year, there was an increase in coverage for government boards, central government entities and projects. Coverage for provinces, ministries and districts remained at 100 per cent like it was in the previous year.

National

MPs applaud public funds management