APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA based auditing for GOK’s internal audit. The IAD has also introduced IT supported audits and roll out of The Audit Management Systems (TEAMMATE). 323. Despite the significant achievements, the IAD faces a number of challenges. The new systems have not been uniformly introduced or supported by the various public entities, the financial and performance reports by government entities are not adequately accessible and understandable, and the audit reports are difficult to understand and do not prioritize recommendations. While the government has managed to control and record its indebtedness well, it has yet to link the debt to IFMIS. 324. Internal Audit in the government still faces both human and physical constraints that have affected its effectiveness. The office has inadequate qualified and well-motivated personnel to carry out the task of auditing technical government investments. Financial resources are inadequate to train personnel and to carry out its mandate effectively. Institutions like the IMF and the World Bank and other development partners, do conduct periodic audits of accounts of different government agencies, especially those agencies with projects and programmes they support. 325. Progress towards International Public Sector Accounting Standards (IPSAS) adoption in Kenya has been slow. A full set of consolidated annual financial statements is not prepared, only appropriation accounts are submitted for audit. The current parliament has an opportunity to make use of the provisions of the Constitution of Kenya 2010 and the PFM Act to ensure audit reports inform the decisions of the budget, as the parliamentary budget committee is fully and legally entrenched in the budget process. The PAC could also be more active in the review of the auditor general’s report. Consultations and Predictability of Economic Policies 326. The Constitution of Kenya 2010 requires public participation in county public finances. There is the specific requirement that every county set up a County Budget and Economic Forum (CBEF). The CBEF is mandated by the Public Finance Management (PFM) Act 2012 to provide a means for consultation by the county governments’ budget and other related matters. 327. In implementing this constitutional requirement, the government consults various stakeholders, including neighbourhood associations, specifically the Nairobi Central Business Organization on development issues of policy that affect the private sector within the Central Business Districts (CBDs). A Public Private Partnership (PPP) unit was created in the National Treasury dedicated to formulating policies on how the interest of the private sector can be incorporated into the affairs of the country’s development. | 153 |