Report on the second Supplementary budget, FY 2019/2020 ~ Bungoma

In summary:

• • Attached doc; Report on the second Supplementary budget, FY 2019/2020
  • Attached doc; Ward based realigned projects FY 2019-2020
  • Attached doc; Committees recommended departmental increases and decreases FY 2019-2020
  • #iKUWEiKUWE highlights from the Reports

BUDGET AND APPROPRIATIONS COMMITTEE

REPORT ON THE SECOND SUPPLEMENTARY BUDGET, FY 2019/2020

4.1 COMMITTEE OBSERVATIONS

Mr. Speaker Sir, the committee observed as follows;

1. 1. The 2nd Supplementary was brought to the County Assembly on 8th June and tabled on 9th June 2020 together with the annual budget. Whereas supplementary budget has no timeline, the timing of submission of the supplementary budget is suspect that it has been submitted towards the end of FY and also at the time we are supposed to be handling the Annual budget.

1. 2. Ministries are totally disregarding approved budget and implementing programs beyond what was approved by the County Assembly.

Re-allocations are not being done as per the law. Most of the reallocation are not getting the approval of the County Assembly as required by law.

1. 3. Ward based allocations and pending bills are the most vulnerable votes having been affected by the reallocation in implementation of the 1st supplementary budget.

1. 4. Health Services Act is being implemented without regulations to

operationalize it.

4.2 COMMITTEE RECOMMENDATIONS:

Mr. Speaker Sir, upon scrutiny of the second supplementary budget 2019/2020, the committee recommends as follows:

1. 1. The County Treasury should endeavour to submit statutory documents within the timelines in law and for the sake of the supplementary budgets should be at reasonable time and also it should not be submitted alongside any other statutory document.

1. 2. The county treasury has such powers to carry out its functions and responsibilities under the PFMA including-

PFMA 105 (1a) with prior notice, access any system of public financial management used by any of the County Government entities and the internal controls used to monitor the system.

1(b) Taking appropriate measures, including the stoppage of funds to deal with any failure of a county government entity to comply with this Act.

In view of the above caption of the law, the county treasury should pull up their socks in as far as Public Finance Management is concerned.Controls should be put in to curb misappropriation of public resources.

Related; https://ikuweikuwe.com/2020/06/25/cec-makanda-lies-through-the-teeth/

1. 3. The county treasury should draft a policy on the ward based projects to give guidelines on how projects will be implemented in our respective wards.

1. 4. The department of Health to fast track formulation of the Health regulations and onward submission to the County Assembly in order to operationalize the Health Services Act.

1. 5. Sector Committees should step up their oversight mandate and ensure sectors draw work plans that will guarantee release of development funds and implementation of projects within the approved legislations.

4.3 COMMITTEE’S PROPOSED DEPARTMENTAL INCREASES AND DECREASES

Mr. Speaker Sir, attached herein are the committee’s proposed departmental

increases and decreases.

Thank you.

Document 1; REPORT ON THE SECOND SUPPLEMENTARY BUDGET FY 2019-2020

Document 2; WARD BASED REALIGNED PROJECTS FY 2019-2020

Document 3; COMMITTEES RECOMMENDED DEPARTMENTAL INCREASES AND DECREASES FY 2019-2020

NAME                                     DESIGNATION
1. Hon. Jack Wambulwa –           Chairperson
2. Hon. Erick Wapang’ana –         Vice Chairperson
3. Hon. Joseph Juma –               Member
4. Hon. Jane Chebet –               Member
5. Hon. Meshack Simiyu –          Member
6. Hon. Martin Pepela –              Member
7. Hon. Paul Wamalwa –             Member
8. Hon. Grace Sundukwa –         Member
9. Hon. Joan Kirong –                Member
10. Hon. Sospeter Nyongesa –   Member
11. Hon. Violet Makhanu –        Member

…………………………………………………………………………………………………………

#iKUWEiKUWE pick;

• CASUALS; The committee invited the CPSB and County Secretary in order to provide a list of the casual workers warranting the additional allocation. The Chief Officer in the County Secretary’s office appeared on behalf and in his submission indicated that the list is not ready as it is still undergoing verification.

The county Government will be putting in an appeal in order to be given more time to implement the court ruling since the verification exercise is ongoing.

• AGRICULTURE; dept request for 45.4 million for fertilizer turned down, #iKUWEiKUWE gathers that the assembly previously allocated 93 millions which was supposed to FULLY pay the supply of fertilizer but the County govt opted to pay 63 million…
• ROADS; The CO found to be notorious in diversion of funds
• EDUCATION AND VOCATIONAL TRAINING; 
  • The second supplementary budget has proposed to reduce its recurrent budget by
    Kshs. 87,825,190.
  • Scholarships and Bursaries reduced by Kshs. 73,726,800. The Budget
    committee however in consideration of the petition from the department
    declined the reduction since vetting of beneficiaries at ward level had
    already been done
• LANDS, URBAN AND PHYSICAL PLANNING; 
  • On acquisition of land for Chepkube traders, submission from the CECM gives the
    Contract sum at Kshs 80 million for the 1 acre land in town as per the
    recommendations of the county Valuer. The approved 1st Supplementary budget
    2019/20 was Kshs 29,601,550 yet the department made initial payment of Kshs
    40,910,000.
  • On the source of the additional Kshs 11,308,450 as pointed out in the IFMIS vote
    book the CECM was unable to clarify on the source of the extra amount.
  • The committee directed the CEC to fast-track the completion of the taskforce report on public land and subsequent submission the County Assembly in order to avoid further encroachment on public land.

• HEALTH;
  • • Diversion of funds meant for Sirisia hospital declined
    • BUNGOMA COUNTY REFERRAL HOSPITAL
      The department has a net increase of Kshs 21.1 million on its allocation.
    • The major changes in the department include;
       Reduction of Kshs 5.1 million on utilities supplies and services
       Increase of Kshs 8.2million on domestic travels and subsistence allowance
       Increase of Kshs 3.9 million on training expenses
       Increase of Kshs 6.9 million on hospitality supplies and services
       Reduction of Kshs 27.2 million on specialized material and supplies
      (medical drugs, dressing and non-pharms, laboratory material, purchase of
      uniforms, linen, purchase of x-ray).
       Maintenance of buildings and stations increase of Kshs 13.2 million. The
      renovations done include renovation of the mortuary at Kshs
      486,680,Renovation of private wing B into ICU Kshs8.4 million,
      Renovations of maternity and inpatients wards Kshs 2,041,477, plumbing
      items Kshs 1,813,143 and storage tank Kshs 458,700
       Purchase of medical and dental Equipment at Kshs 17.5 million .The
      purchases were done from the AIA collected by the department and a list of
      the equipment have been attached for the sector committee to do fact finding
      exercise.
    • WEBUYE SUB-COUNTY HOSPITAL
      The Hospital has a net increase of Kshs 20.3 million.
      The major changes include:
       Increased utilities supplies and services Kshs 3.8 million
       Increase of Kshs 11.8 milion on specialized material and supplies
       Increase of Kshs 3.6 million on office and general supplies
• HOUSING; The department has a reduction of Ksh 1,003,664 on the recurrent with no change under development, the amount has been reduced to cater for revenue shortfall.
• TRADE, ENERGY AND INDUSTRIALIZATION; … the department will come up with special purpose vehicle to run the industrial park independent from the county government in order to shield the County Government from any financial risk.
  The committee notes that project execution is being done at a very low pace
  this being the 3rd FY the Assembly is voting in money on the industrial park.
• YOUTH AND SPORTS; The Kanduyi Stadium being a flagship project and a devolved function the committee allocated Kshs. 50 million to clear the negative created on the vote by the proposed reduction and accelerate completion of the project.
• TOURISM AND ENVIRONMENT; The development vote has a reduction of Kshs 4,120,539 that has affected dumpsite project by Kshs 1.4 million, Mt. Elgon entrance(gate) Kshs 1.3 million and Kshs 1.2 million worth of WBP realigned.
• WATER AND NATURAL RESOURCES; The ward based projects with an allocation of Kshs 126,846,763 has projects worth Kshs 9,237, 672 realigned to other departments
  • An inquiry from department indicate the rig was supplied at Kshs 77.8m. With
    such a contract sum it is not clear why the department has made reduction to Kshs
    34million and also misapplied of funds made for pending bills.
• FINANCE AND ECONOMIC PLANNING; 
  • In the proposed second supplementary budget, there is a proposal to increase the
    recurrent budget by a total of Kshs. 95,333,786.
  • There is a proposed increase on salaries by Kshs. 65,333,786 in addition to the
    already appropriated Kshs. 337,765,794 during the processing of the annual
    budget. There are no specific notes to justify the increase.
  • A further allocation of Kshs 20,000,000 has been proposed towards revenue
    automation system that has been allocated Kshs.17,460,959 in this financial Year’s
    approved budget
  • With dwindling revenue figures, the committee declined to approve the allocation.
• PUBLIC ADMINISTRATION; 
• OFFICE OF THE COUNTY SECRETARY;
  The Office of the County Secretaryhas a reduction of Kshs 12,432,419 on recurrent
  and no change on development
  Legal dues/fees, arbitration has an additional Kshs 3.5million on top of the
  approved Kshs 10million which in consideration of sector views this committee
  declined to grant the additional allocation since the department did not provide
  details of how the Kshs 10 million allocated was expended and also did not explain
  why they needed an additional Kshs 3.5 million.
• ICT; has a reduction of Kshs 1.9million on recurrent and no change on
  development, changes which the committee adopted
• CPSB; The department has a reduction of Kshs 6.5 million on recurrent budget with
  salaries reduced by Kshs 3.4 million due to failure to recruit additional secretariat.
• GOVERNOR’S OFFICE; The total allocation in the 1st supplementary was Kshs 405,081,527 has a proposed increase of Kshs 24.2 million. Kshs 15 million is on boards and conference while Kshs 9.2 million is on salaries

The committee in consideration of Sectoral views declined both allocations because the Chief Officer did not clarify the need of additional funding yet there was budget for chief officers who have not been employed yet

• COUNTY ASSEMBLY;
  • The Assembly is currently having a pending certificate of Kshs 71 million which is
    overdue yet the balance on the vote is Kshs 40 million.
  • The committee awarded Kshs 30 million towards completion of the administration block
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