Embu only spent Sh642m on projects out of Sh1.5bn – Ouko
‘Out of the total budget, only Sh3.9 billion was realised, resulting in a revenue shortfall of Sh1 billion. Only Sh390m was collected, resulting in a revenue shortfall of Sh357m’
Embu’s Sh4.9 million budget for the financial year 2014-15 was unrealistic, the Auditor General has said.
The county spent very little on development and missed revenue targets, he said. The county allocated Sh1.5 billion to development and Sh3.4 billion to recurrent expenditure.
The annual report and financial statement for the year ended June 30, 2015, notes that out of the total budget, only Sh3.9 billion was realised. This resulted in a revenue shortfall of Sh1 billion.
It attributes this deficit to the county government’s inability to meet the budgeted revenue target of Sh748 million.
The report, signed by Auditor General Edward Ouko, reveals that only Sh390 million was collected, resulting in a revenue shortfall of Sh357 million.
This translates to a 52 per cent shortfall in projected revenue. The auditor says the underperformance by the revenue department is yet to be explained.
Further, out of the Sh1.5 billion development budget, only Sh642 million ( 40.5 per cent ) was utilised, resulting in under-expenditure of Sh941 mil- lion. The revenue shortfall and development under-expenditure render the entire budget unrealistic, Ouko stated.
“In the circumstances, the development under-expenditure of more than Sh900 million denied the residents of Embu county expected services during the year under review,” reads the report.
The Auditor General says this in effect pours cold water on the purpose of budgeting for Embu’s projects as it fails to utilise money set aside for them in a largely underdeveloped county.
The audit report has also queried the spending of Sh6.6 million on repairs and maintenance of vehicles during the year under review.
Embu town, headquarters of Embu county. The Auditor General says the county underutilised funds in 201415