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The National Assembly has appointed a private audit firm – M/s PKF Kenya LLP – to scrutinise the financial accounts of the Office of the Auditor-General (OAG) for three financial years at a cost of Sh25.5 million.
PKF Kenya LLP secured the contract after beating its sole challenger – Nelson and Francis LLP – to conduct the OAG’s financial audits for 2022/23, 2023/24 and 2024/25, as well as the OAG’s staff mortgage and car loan scheme for the period ending June 30, 2023.
The cost of the audit includes Sh22 million for auditing services for the OAG’s financial accounts and Sh2.9 million for the mortgage and car loan scheme for the period.
PKF LLP was awarded the contract after scoring 84 percent, well above the 75 per cent pass mark. Nelson and Francis LLP was knocked out for not having a tax compliance certificate.
The private audit firm lost out to M/s Ronalds Limited Liability Partnership (LLP) in 2021 to audit the OAG for 2018/19 and 2019/20, and the organisation’s mortgage and car loan scheme for the 2015/16 financial year.
PKF LLP was appointed in August 2019 to audit the OAG’s finances for four financial years – 2014/15, 2015/16, 2016/17 and 2017/18.
Moving the motion on the report on the appointment of the private audit firm, Public Accounts Committee (PAC) deputy chairperson Tindi Mwale (Butere) said the appointment of the private audit firm was in line with the Constitution.
“The committee, having satisfied itself that due process was followed, resolved to recommend to the National Assembly that the appointment of PKF Kenya Limited Liability Partnership (LLP) be approved,” said Mr Mwale.
The Constitution mandates the OAG to audit the financial accounts of entities under the national and county governments and any other entity that receives funds from the Treasury.
The national and county legislatures are major users of the Auditor-General’s reports, which include financial audits, special or forensic audits and performance audits.
The financial audits, for example, are crucial in guiding the allocation of resources to county governments.
One of the key functions of the National Assembly is to ensure that the OAG is adequately funded to enable it to carry out its constitutional mandate independently, including determining whether public funds have been used effectively and legally.
Over the past five years, for example, the OAG’s annual allocation has increased from Sh5.88 billion in the 2019/20 financial year to Sh8.12 billion in the current 2024/25 financial period.
“This growth enables the office to fulfil its mandate as enshrined in Article 229 of the Constitution,” said Aldai MP Maryanne Keitany.
According to Ms Keitany, “it has become clear that the office has effectively utilised the resources provided by the National Treasury.”
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