REPUBLIC OF KENYA

KENYA NATIONAL AUDIT OFRCE

REPORT

OF

THE AUDITOR-GENERAL

ON

THE FINANCIAL STATEMENTS OF THE JUDICIAL PERFORMANCE

IMPROVEMENT PROJECT

FOR THE YEAR ENDED 30JUNE 2014

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Telephone: +254-20-342330 Fax: +254-20-311482 \-Mail: oag@oagkenya.go.ke

Website: www.kenao.go.ke

REPUBLIC OF KENYA

P.O. Box 30084-00100 NAIROBI

KENYA NATIONAL AUDIT OFFICE

REPORT OF THE AUDITOR-GENERAL ON JUDICIAL PERFORMANCE IMPROVEMENT PROJECT FOR THE YEAR ENDED 30 JUNE 2014

REPORT ON THE FINANCIAL STATEMENTS

I have audited the accompanying financial statements of Judicial Performance Improvement Project (IDA Credit No.5181-KE) set out on pages 1 to 12 which comprise statement of Assets and liabilities as at 30 June 2014, the statement of receipts and payments, the statement of comparison of budget and actual amounts, the special account statement and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya, Section 8 of the Public Audit Act, 2003 and Section II B. (3) of the Financing Agreement No.5181-KE dated 5 December 2012 between the International Development Association (IDA) and the Government of Kenya. I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of the audit.

Management's Responsibility for the Financial Statements

The National Treasury, the Accounting Officer-Judiciary and the Project Coordinator are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash Basis) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 7 of the Public Audit Act, 2003.

Auditor-General's Responsibility

My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 9 of the Public Audit Act, 2003. The audit was conducted in accordance with International Standards on Auditing. Those standards require compliance with ethical requirements and that the audit be planned and performed with a view to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the Project's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my qualified audit opinion.

Basis for Qualified Opinion

1. Unreconciled Difference

The statement of receipts and payments for the year 2013/2014 reflects total payments of Kshs.316, 781,916.00 while the cashbook reflects total payments of Kshs.317, 296,046.00. The resultant difference of Kshs.514, 130.00 has not been explained or reconciled.

2. Overstatement of Non-Financial Assets

The financial statements under note 8.9 reflects acquisition of non-financial assets totalling Kshs.73,559,961.00 which includes Kshs.69,589,460.00 for civil works and Kshs.14,639,900.00 in respect of architectural consultancy services but erroneously included as part of non-financial assets. As a result, the non financial assets have been overstated by Kshs.14, 639,900.00 while expenditure on consultancy services is similarly understated. In addition, the consultancies did not relate to the respective Law Courts charged. No satisfactory explanation has been given for charging the wrong account.

3 Rehabilitation of Kangema Law Courts

A site visit on 7 November, 2014, to the project which was handed over in May 2014 revealed that the project was not properly supervised and numerous defects, omissions were observed:-

Works worth Kshs.339, 215.00 were not done as detailed in the Bills of Quantities (BoQs) and approved designs despite issuance of completion certificate and full payment to the contractors. Further, un approved works valued Kshs 261,750.00 for archives and Kshs 1,247,253.00 for criminal registry was changed to substructure for phase two and were paid for yet they were not in the plan for the project.

4 Pending Bills

Records maintained in respect of the Project indicate that various suppliers of goods and services had pending bills amounting to Kshs.16, 015,606.00 which were not settled as at 30 June 2014. However, Kshs.14, 342,946.00 or 89% of the bills had been paid as at 27 November 2014 leaving a balance of Kshs.1,672,660.00 outstanding. The failure to settle the bills affects the budget for the following financial year.

2

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' Qualified Opinion

In my opinion, except for the effect of the matters described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Judicial Performance Improvement Project (IDA Credit No.5181-KE) as at 30 June 2014, and of its financial performance and its cash flows for the year then ended, in accordance with the International Public Sector Accounting (Cash Basis) Standards and comply with the terms of the Financing Agreement No.5181-KE, 2012.

In addition, the Special Account Statement presents fairly, the Special Account transactions and the ending balance has been reconciled with the books of account.

Edward R. 0. Ouko, CBS AUDITOR-GENERAL

Nairobi

18 December 2014

3

,, •

CHIEF REGISTRAR OF . THE JUDICIARY .

3-0 SEP 2014

RECEIVED ~I (1-N; ,,,, ,,,,,, .. ,, .. _, c•t•uu•u t r•ot•n , ,,,_ , , , ,, ·

Project Name: Judicial Performance Improvement Project

Implementing Entity: The Judiciary

PROJECT CREDIT NUMBER: 51810KE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED JUNE 30, 2014

Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS)

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~ Reports and Financial Statements Forthejlnam:lalyearended June 30, 2014

CONTENTS PAGE

1. PROJECT INFORMATION AND OVERALL PERFORMANCE ................................................................ i

2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES ........................................................ v

3. REPORT OF THE INDEPENDENT AUDITORS ON THE JPIP PROJECT .............................................. vi

4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2014 .......... 1

5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2014 .......................... 2

6. STATEMENT OF CASH FLOW ...................................................................................... 3

7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS ............................................. 4

8. NOTES TO THE ·FINANCIAL STATEMENTS ............................................................................................ 5

9. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS .................................................. 10

1

Reports and Financial Statements For tlu[mancialyear ended June 30, 2014

1. PROJECT INFORMATION AND OVERALL PERFORMANCE

1.1 Name and registered office

Name: The project's office is in Nairobi Law Courts, Supreme Court of Kenya, Supreme Court Building

Objective: The key objective of the project is to improve the performance of the Judiciary to provide services in the project areas in a more effective and accountable manner

Address: The project headquarters offices are Nairobi (city), Nairobi County, Kenya.

The address of its registered office is: P.O Box 30041 -00100 Nairobi

Contacts: The following are the project contacts

Telephone: (254) 2221221 E-mail: jpipproject@gmail.com Website: www.go.ke

1.2 Project Information

Project Start Date: The proiect start date is 30.04.2013

Project End Date: The proiect end date is 31.12.2018

Proiect Manager: The proiect Coordinator is Ms Nancy Kanyago

Project Sponsor: The proiect sponsor is World Bank

1.3 Project Overview

Line Ministry/State The project is under the supervision of the Judiciary. Department of the project

Project number 51810KE

Strategic goals of the The strategic goals of the project are as follows: project (i) To improve the performance of the Judiciary to enable it provide

services in a more effective, efficient and accountable

(ii) To support and achieve the priority areas of the Judiciary Transformation

(iii) To contribute to Kenya's vision 2030 development strategy for

i

transforming Kenya into a middle income country

Achievement of The project management aims to achieve the goals through the following strategic goals means:

(i) Court administration and case management

(ii) Judicial training and staff development

(iii) Court infrastructure

(iv) Project management

Current situation that The project was formed to intervene in the following areas: the project was (i) Court administration and case management formed to intervene (ii) Judicial training and staff development

(iii) Court infrastructure

Project duration The project started on 30th April 2013 and is expected to run until 31st December 2018

1.4 Bankers

The following are the bankers for the current year:

(i) Equity Bank

P.O Box 75104- 00200 Nairobi

(ii) Central Bank of Kenya

P.O Box 60000-00200 Nairobi

1.5 Auditors

The project is audited by the Auditor General, Kenya National Audit Office, Anniversary Towers P.0.Box 30084-00100 Nairobi

1.6 Roles and Responsibilities

List the different people who will be working on tpe project. This list would include the project manager and all the key stakeholders who will be involved with the project. Also, record their role, their positions, and their contact information.

Names Title desie:nation Anne Amadi Accounting Officer Nancy Kanyago Project Coordinator Wellirnrton Masakari IFA Team Leader

11

1.7 Funding summary

The Project is for a duration of six years from 2013 to 2018 with an approved budget of US$ 120M equivalent to Kshs 10.5B as highlighted in the table below:

Below is the funding summary:

Source of funds Donor Amount received to Undrawn balance to date Commitment- date - (30.06.2014) (30.06.2014)

Donor Kshs Donor Kshs Donor Kshs currency currency currency USO (A) (A') (B) (B') (A)-(B) (A')-(B')

i Loan ~mational

Development Association

120,000,000 10.5B 6,500,000 568,163,253 113,500,000 9,931,836,747

Total 120,000,000 10.5B 6,500,000 568,163,253 113,500,000 9,931 836,747

1.8 Summary of Overall Project Performance:

Budget Performance The Project had 73.5%ofutilization variance (Annex I-Comparative Budget and Actual amounts) to the final budget and this was mainly due to delay in the start of the project activities.

Implementation progress

(i) Rehabilitation (upgrading) of phase 1 of the K.angema court completed.

(ii) Rehabilitation ofK.itui Court 85% complete.

(iii) Designs for rehabilitation (upgrading) of 9 other courts completed. Tender documents for

actual work being prepared.

(iv) Advertisement for designing 17 other courts for rehabilitation done.

(v) Training on Work planning and budgeting for court stations done.

(vi) Development of the Court of Appeal rules completed.

(vii) Training of 137 of external agency partners on court procedures and CUC guidelines.

(viii) Training of 224 CUC members trained on collective responsibility, interdependence, quality

service delivery, constitutionalism and mutual accountability.

lll

(ix) Training of 90 Judiciary Officers on customer care.

(x) Conducting of the nationwide case audit and an Impact Evaluation Diagnostic study.

(xi) Development of training curriculum on change management.

(xii) Seven (7) State Counsels trained in specialized areas and other relevant identified areas.

(xiii) Draft strategic plan for the Judiciary prepared.

Challenges

1. Lengthy procurement processes including;

- Lengthy time taken to process contracts

-Delays for no objection from the Banlc.

2. Slow internal processes including delays in submission of requests/ TORs from the implementing

units

4. Inadequate capacity by the Implementing Units especially on planning, budgeting and reporting.

5. IFMIS payment challenges

iv

2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES

The Judiciary and the Project Coordinator for Judicial Performance Improvement Project are responsible for the preparation and presentation of the Project's financial statements, which give a true and fair view of the state of affairs of the Project for and as at the end of the financial year (period) ended on June 30, 2014. 1bis responsibility includes: (i) maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Project; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the Project; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances.

The Judiciary and the Project Coordinator for Judicial Performance Improvement Project accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards.

The Judiciary and the Project Coordinator for Judicial Performance Improvement Project are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the financial year/period ended June 30, 2014, and of the Project's financial position as at that date. The Judiciary and the Project Coordinator for Judicial Performance Improvement Project further confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control.

The Judiciary and the Project Coordinator for Judicial Performance Improvement Project confirm that the Project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that Project funds received during the financial year/period under audit were used for the eligible purposes for which they were intended and were properly accounted for.

Approval of the Project financial statements

The Project financial statements were approved by the Ju~iary and the Project Coordinator for Judicial Performance Improvement Project on °2:>0 ~et't 2014 and signed by them.

v

3. REPORT OF THE INDEPENDENT AUDITORS ON THE JUDICIAL PERFORMANCE IMPROVEMENT PROJECT

REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Judicial Performance Improvement project, set out on pages 1 to 12 which comprise the statement of receipts and payments for the financial year/period ended June 30, 2014, and a summary of significant accounting policies and other explanatory notes.

Responsibility for the Financial Statements

The Judiciary and the Project Coordinator for Judicial Performance Improvement project are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depended on our professional judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In ma.king those risk assessments, we considered the internal controls relevant to the company's preparation and fair presentation of the financial statements in order to design· audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the company's internal controls. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion the accompanying financial statements give a true and fair view of the state of financial affairs of the Judicial Performance Improvement project for the financial year/period ended June 30, 2014 in accordance with International Public Sector Accounting Standards (IPSAS).

Vl

REPORT ON PROJECT PERFORMANCE AND VALUE FOR MONEY ACHIEVEMENT

Based on our audit, we report that nothing came to our attention to indicate substantial non­achievement of value for money objectives. However, we identified a few minor cases of non­achievement of value for money objectives, which have been included in our separate Management Letter to the Judiciary and the Project Coordinator.

REPORT ON COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

Based on our audit, we report that nothing came to our attention to indicate substantial non­compliance with applicable laws and regulations, as well as essential external financing covenants. However, we identified a few minor cases of non-compliance, which have been included in our separate Management Letter to the Judiciary and the Project Coordinator.

REPORT ON CONTRACTS WITH DEBARRED FIRMS

Based on our audit, we report that nothing came to our attention to indicate that debarred fimis, both by the government and external financiers, were awarded any contracts under the Project during the financial year/period under review.

Auditor General, KENYA Date

vii

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Reports and Financial Statements FortlNfmanclalyearended June 30, 2014

4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2014

RECEIPTS

Loan from external development partners

Total receipts

PAYMENTS

Purchase of goods and services Acquisition of non-financial assets

TOT AL PAYMENTS

SURPLUS FOR THE YEAR

Note

8.4

8.7 8.9

1

2013 Kshs

2014 Kshs

Cumulative to-date

Kshs

568,163,253 568,163,253

568,163,253 568,163,253

243,221,955 73,559,961

243,221,955 73,559,961

316,781,916 316,781,916

251,381,337 251,381,337 -------

5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2014

FINANCIAL ASSETS

Cash and Cash Equivalents Bank Balances Imprests and Advances

TOT AL FINANCIAL ASSETS

REPRESENTED BY:

Cash and cash equivalents b/fwd Surplus for the year

NET FINANCIAL POSITION

Note

8.12A 8.12D

2014 2013 Kshs Kshs

248, 778, 797 2,602,540

251,381,337

251,381,337

251,381,337

The accounting policies and explanatory notes to these financial statements form an integral part of. the financial statements. The financial statements were approved on 2014 and signed by:

Chief Registrar

Date

2

6. STATEMENT OF CASHFLOW FOR THE PERIOD ENDED 30TH JUNE 2014 2014 2013

Payments for operating expenses

Purchase of goods and services (243,221,95 5)

Net cash flow from operating activities (243,221,955) --CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets (73,559,961)

Net cash flows from Investing Activities (73,559,961) --CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Foreign Borrowings 568.163,253 --Net cash flow from financing activities 568,163,253

NET INCREASE IN CASH AND CASH 251,381,337 EQUIVALENT Cash and cash equivalent at BEGINNING of the year Cash and cash equivalent at END of the year 251,381,337 --

3

-.

7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS

Actual on ~eipts/Payments Comparable %of

..... ~m Oril!inal Budeet Adjustments Final Bud2et Basis Variance Variance

a b c=a+b d e=d-c f=e/c %

Receipts

Proceeds from 2,601,688,502 (1,405,390,602) 1, 196,297 ,900 568,163,253 (628,134,647) -52.5%

borrowings

Total Receipts 2,601,688,502 (1,405,390,602) 1,196,297,900 568,163,253 (628,134,647) -52.5%

Payments

Purchase of goods 1,201,001,002 (799,655, 102) 401,345,900 243,221,955.30

(158,123,944.70 -39.4%

ar ~rvices ) - -

Acquisition of non-1,400,687 ,500 ( 605, 735,500) 794,952,000 73,559,961.15

(721,392,03 8.85 -90.7%

financial assets )

Other payments

Total Payments 2,601,688,502 1,405,390,602 1,196,297,900 316,781,916.45 879,515,983.55

Note: The significant budget utilisation/performance differences in the last column are explained in Annex 1 to these financial statements.

4

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8. NOTES TO THE FINANCIAL STATEMENTS

The principal accounting policies adopted in the preparation of these financial statements are set out below:

8.1 Statement of compliance and basis of preparation

The financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting. The financial statements comply with and conform to the form of presentation prescribed by the Accounting Standards Board of Kenya.

The financial statements are presented in Kenya Shillings, which is the functional and reporting currency of the Project and all values are rounded to the nearest one Shilling. The accounting policies adopted have been consistently applied to all of the years presented.

The financial statements have been prepared on the cash basis following the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events only when cash is received or paid out by the Project.

i. Recognition of revenue and expenses

The Project recognises all revenues from the various sources when the event occurs and the related cash has actually been received by the Project. In addition, the Project recognises all expenses when the event occurs and the related cash has actually been paid out by the Project.

ii. In-kind donations

In-kind donations are contributions made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value of in-kind donations can be reliably determined, the Project includes such value in the statement of receipts and payments both as revenue and as an expense in equal and opposite amounts; otherwise, the donation is not recorded.

,lu. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, . which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year/period. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which had not been surrendered or accounted for at the end of the financial year/period.

5

SIGNIFICANT ACCOUNTING POLICIES (Continued)

iv. Pending bills

Pending bills consist of unpaid liabilities at the end of the financial year arising from contracted goods or services during the year or in past years. As pending bills do not involve the payment of cash in the reporting period, they are simply disclosed as an Annex to the · financial statements. When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made.

v. Budget

The budget is developed on the same accounting basis (cash basis), the same accounts classification basis, and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. A high-level assessment of the Project's actual performance against the comparable budget for the financial year under review has been included in an annex to these financial statements.

vi. Exchange rate differences

The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of receipts and payments.

vii. Comparative figures

Where necessary comparative figures for the previous financial year have been amended or reconfigured to conform to the required changes in financial statement presentation.

vm. Subsequent events

There have been no events subsequent to the financial year end with a significant impact on the financial statements for the year ended June 30, 2014.

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8.4 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS

During the 12 months to 30 June 2014 we received funding from development partners in form ofloans negotiated by the National Treasury donors as detailed in the table below:

Name of Donor

Loans Received from Multilateral Donors (International Or anisations

Date • received

Amount in loan

currency

Loans Loans received in received

cash as direct payment*

< Kshs Kshs

International Develo rnent Association 11.09.2013 6,500,000 568, 163,253

Total 6,500 000 568163,253

NOTES TO THE FINANCIAL STATEMENTS (Continued)

8.7 PURCHASE OF GOODS AND SERVICES

2012/13 2013/14

Kshs Kshs Utilities, supplies and services 1,378,466 Domestic travel and subsistence 2,110,836 Printing, advertising and

- information supplies & services 6,237,195 Rentals of produced assets 17,719,367 Training expenses 139,086,086 Technical assistance 76,690,006

243,221,955 ------- ----·-

7

Total amount in Kshs

FY 2013/14 FY 2012/13 Kshs Kshs

568,163,253

568,163 53

Cumulative

1,378,466 2,110,836

6,237,195 17,719,367

139,086,086 76,690,006

243,221,955 ===

8.9 ACQUISITION OF NON-FINANCIAL ASSETS 2012/13

Kshs

Construction of civil works -

Purchase of office furniture & general equipment -

-

8.12 CASH AND CASH EQUIVALENTS C/FWD

Bank accounts (Note 12A) Outstanding imprests and advances (Note 120)

8.12A Bank Accounts

Foreign Currency Accounts Equity Bank (Ale No.0810260885749)

Total Foreign Currency balances

Local Currency Accounts Central Bank of Kenya [Ale No 1000187441]

Total local currency balances

Total bank account balances

8

2013/14 Kshs

69,589,460

3,970,501

73,559,961 ----

2013/14 Kshs

248, 778, 797 2,602,540

251,381,337

2013/14 Kshs

6,993

6,993

248,771,804

248,771,804

248, 778, 797

Cumulative to-date

69,589,460

3,970,501

73,559,960 ---

2012/13 Kshs

---

2012/13 Kshs

--

8.12D Outstanding Imprests and Advances

Amount Name of Officer or Institution

Taken

Solomon Leiro Letangule 661,000 LukaKimaru 860,085 AbdulGadir Lorot 802,862 Milton Stephen Makhandia 748,325 Leonard Audi Apiyo 345,000 Janette Lunyolo Watila 331,705 Edna Wambui Kuria 331,705 Patricia Nyawira Ndegwa 320,000 Barbara Ojoo 694,800 Erick Obiero Odiwor 175,879 Joseph Kioko Wambua 161,000 Erick Manyange Ondiek 105,000 Abdul Omar Mahmood 90,000 Fredrick Otieno Abungo 84,000 Beth Wariara Gitau 50,000 Kiarie Waweru Kiarie 802,862

13 PENDING BILLS (Annex 2A)

Construction of buildings Construction of civil works Supply of goods Supply of services

Due Date of

Surrender

.:·:/,..,. \~

9

Amount Balance Balance Surrendered 2014 2013

285,308 375,692 786,404 73,681 747,999 54,863 740,116 8,209

29,250 315,750 0 331,705 0 331,705 0 320,000

447,371 247,429 0 175,879

34,650 126,340 0 105,000 0 90,000

49,000 35,000 49,912 3,088

794,663 8,199

2,602,540

2013/14 Kshs

2012/13 Kshs

16,015,606

16,015,606 = ===

9. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS

The following is the summary of issues raised by the external auditor, and management comments that were provided to the auditor. All the issues have been resolved.

J/JPIP/2012/ 13

Support Documents on Consultancy item

Differences on reconciliation not ex lained

-Evidence/Documents were provided

-Procurement system has been streamlined

-Explanation was given

10

Resolved

Resolved

•

Judicial Pelformance Improvement Proj

Statement of Budget Peef ormance For th year ended JlllU JO, 2014

ANNEX 1 - VARIANCE EXPLANATIONS - COMPARATIVE BUDGET AND ACTUAL AMOUNTS

RECEIPTS;D.l:HUNG !rHE,. -.~..: ·~ .. YEARIP'ER:ro:D·(~~ .. :-_: '. ;: '. .: -, l(,,

External financing

Total receipts

:PA~~~''-P~G:;~:'~,'.'',~·· YEAR/PERIOD -.. i, .' ... :. . ;·

Purchase of goods and services

Acquisition of non-financial assets

Total payments

Actual on Comparable

Final Bude:et Basis

a b

1, 196,297 ,900 568,163,253

1,196,297 ,900 568,163,253

401,345,900 243,221,955.30

794,952,000 73,559,961.15

1,196,297 ,900 316, 781,916.45

Budget Utilisation Variance

c=a-b

628,134,647

628,134,647

158, 123,944.70

721,392,038.85

879,515,983.55

%of Utilisation Variance to

Final Bud2et

d=c/a %

52.5%

52.5%

39.4%

90.7%

73.5%

Comments on Variance

Delay in the start of project activities

Delay in the start of project activities

I

•

ANNEX 2A - ANALYSIS OF PENDING BILLS

Supplier of Goods or Services

Supply ofsernces . - . -·' '>' -,.: ''·· ,Y;;_1:· :,.· ; "" · ,

Original Amount

A

1. Consultancy. l ,810,000.00

2. Windsor Golf and Country Club 3,945, 175.00

3. African Touch Safaris 373,815.00 4. Shian Travel 503,011.00 5. Silver Bird Travel 7,754,605.00 6. Speed Bird Travel 1,629,000.00

Sub-Total 16,015,606.00 Grand Total

Date Contracted

b

12

•

Amount Outstanding Outstanding Paid Balance Balance Comments

To-Date 2013 2012 c d=a-c

· . .; ·,. " "'' ~ .