STATUS OF BUDGET IMPLEMENTATION IN BOMET COUNTY FY 2015/2016
This article will focus on Bomet County executive audit reports for financial year 2015/2016. This is a commentary on reports produced by the office of the Auditor General (OAG).
Bomet County is made up of the following Sub-Counties: Bomet Central, Konoin, Bomet East, Chepalungu and Sotik. There are 25 wards in these five sub-counties.
During financial year 2015/2016, Bomet County had a budget of Ksh. 5.17 billion but actual revenue received was Ksh. 5.05 billion. This shortfall was occasioned by an under-performance in revenue collection during the year under review. Bomet County had budgeted to raise Ksh. 446.44 million but the actual collection was Ksh. 328.08 million during the year 2015/2017. This is a clear sign that during the year under review Bomet County relied on the equitable share received from the national government. Embomos Team Farm nearly tied with parking fees both having raised slightly over 12 million each.
Markets and slaughter performed beyond expectation. It was budgeted to contribute Ksh. 3.67 million but ended up raising Ksh. 11.66 million during the period under review. This local revenue stream exceeded the budget by Ksh. 7.99 million. This is a classic example of poor county planning. It means that the planning department did not use accurate data in making their projections. They need to do better next time.
In Bomet County Cess Collections under-performed by a large margin. The county had initially planned to collect Ksh. 18.10 million but ended up collecting Ksh. 4.24 million. It missed the target by Ksh. 13.86 million.
Longisa Hospital was the leading source of revenue for Bomet County having raised Ksh. 31.58 million in local revenues. It was followed closely by fees from Business Permits which raised Ksh. 27.35 million.
In Bomet County there are a number of Tea Farms such as Unilever Tea (land rates 11.52 million); Williamson Tea (Ksh. 2.59 million); James Finlay (land rates Ksh. 8.64 million); Sotik Tea Farm (Ksh. 3.57 million) and Emboros Tea Farm which has been covered above.
Unilever Tea occupies 12,007.52 acres of land in Bomet County where they conduct their businesses. Bomet County collects 2.5% of the total value of land leased out to the tea firms according to the Finance Act. This rate was not used instead the county applied 1.2% hence under-charging the tea farms.
In Bomet County hospitals have proved to be a huge source of local revenue. The following list will give you a picture of what we are talking about:
- Cheptalal Hospital – Ksh. 720,133
- Sigor Hospital – Ksh. 3.93 million
- Longisa Hospital – Ksh. 31.58 million
During the year under review, the county officials contributed to an increased in amount spent on domestic travel. The amount increased from Ksh. 67 million in FY 2014/2015 to Ksh. 115.8 million in 2015/2016. There was no adequate supporting documents for this expenditure. The auditors would not confirm on detailed such as: who travelled, destinations and cost of the trips.
Bomet County spent Ksh. 32.26 million on foreign travel during the year under review but there were schedules to support this expenditure. Therefore, it was not possible to confirm the costs, foreign countries visited and cadres of officers who traveled from Bomet County.
On training of county offers, Bomet County spent Ksh. 66.85 million in FY 2015/2016 which is more than Ksh. 40.24 million which was spent the previous on the same item. There was no information provided on the people trained, venues and benefits thereof.
Just like many other counties in Kenya, Bomet County had pending bills to clear. As at 30 June 2016, pending bills amounted to Ksh. 188.4 million. The auditors pointed out that these pending bills were not supported by Local Purchase Orders (LPOs), contracts and LSOs to confirm their expenditure. The auditors would not confirm their authenticity.
Bomet County transferred Ksh. 119.4 million to Bomet Water Company in financial year 2015/2016. A look at the Water Company financial statements revealed that the company received Ksh. 112.46 million from Bomet County. There was unreconciled variance of Ksh. 6.93 million.
Payments to Persons with Disability
During the year under review, Persons Living with Disability were each paid Ksh. 2,000 per month. This was a violations of the regulations which directs that PlWD should be paid Ksh. 2,000 per month through a caretaker.
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