A MINISTRY of Health audit of accounts for the financial year ended December 31, 2020 has revealed that the ministry spent amounts totaling K6,809,496.34 on activities that were not related to health services such as allowances for accompanying auditors on COVID-19 fieldwork as well as living allowances for health attaches.

According to an interim management letter on the audit of accounts for the Ministry of Health for the financial year ended December 31, 2020 and seen by News Diggers, the ministry spent K6,809,496,34 on activities not related to health services although the Secretary to the Treasury requested the Ministry to ensure that the funds were utilized on the delivery of health services to the public.

“The Secretary to Treasury in his letter of Authority for the Ministry to collect and retain a total of K10,000,000 for student placement fees in 2020 requested the Ministry to ensure that the funds were utilized on the delivery of health services to the members of the general public. However, the ministry spent amounts totaling K6,809,496,34 on activities that were not related to health services such as allowances for accompanying auditors on Covid-19 field work, living allowances for health attaches, verification of payroll audits, tuition fees and living allowances, hold human resource development etc. Risk, the intended users of funds may have been denied of a service. Recommendation, management must justify the failure to adhere to the Secretary to the Treasury’s request,” read the letter.

Auditor General Dick Sichembe, who signed off the letter, also revealed that the ministry paid amounts totaling K5,065,104,50 involving 40 transactions to 18 officers as imprest to cater for payment of daily subsistence allowance and fuel allowances for various activities, contrary to a circular.

“Ministry of Finance Treasury and Finance Management circular No. 1 of 2020 guided controlling officers that no cash shall be withdrawn for payment of subsistence allowances, allowances, fuel refunds and any other allowances as these shall be paid directly into the beneficiary’s account. Contrary to the circular, the Ministry of Health paid amounts totaling K5,065,104,50 involving 40 transactions to 18 officers as imprest to cater for payment of daily subsistence allowance (DSA) and fuel allowances for various activities. Risk, the cash may not have been paid to the intended beneficiaries. Recommendation, management must provide justification for the failure to comply with the circular,” the Auditor General stated.

The Auditor General also stated that the ministry borrowed over K9 million from Third Party Account to undertake various activities which had not been funded.

“Amounts totaling K9,794,419,57 were borrowed from Third Party Account by various departments of the Ministry of Health in order for them to undertake various activities which had not been funded. However, as of April 2021, there was no evidence that the funds had been refunded to the Third-Party Account. Risk, the activities for which the funds were originally sourced may not have been implemented. Recommendation, the funds must be refunded to the account,” read the letter.

The letter also stated that four payment vouchers in amounts totaling K1,116,557.92 processed during the period under review had not been availed for audit scrutiny.

“Contrary to the Public Finance Management (General) Regulations No.72 (1) which states that a payment voucher with supporting documents and any other forms which support a charge entered in the accounts, shall be filed, secured against loss and be readily available for audit,” four payments vouchers in amounts totaling K1,116,557.92 processed during the period under review have not been availed for audit scrutiny. Risk, the ministry may have paid for ineligible or fraudulent transactions. Recommendation, the missing vouchers must be availed for audit,” the letter stated.

The Auditor General further stated that amounts totaling K1,449,256,57 issued to nine officers and involving nine transactions remained unretired as of May 2021.

“Financial Regulation No. 96 (1) requires that special and accountable imprest should be retired immediately the purpose for which it was issued has been fulfilled. Contrary to the regulations, accountable imprest in amounts totaling K1,449,256,57 issued to nine officers and involving nine transactions remained unretired as of May 2021. Risk, the funds may not have been used for the intended purpose. Recommendation, retirements must be availed for audit without further delay,” stated the Auditor General.