There is a significant increase in irregular expenditure of state finances from Rwf5.6billion in previous year, to Rwf8.6billion in year ended June 30, 2019, Rwanda’s Auditor General, Obadia Biraro said Friday in a report.
The irregular expenditure is in form of unsupported expenditure, partially supported expenditure, wasteful expenditure, unauthorized expenditure and funds diverted or fraudulently utilized, Biraro said.
He was presenting the audit report of state finances for the year ended June 30, 2019 to a joint plenary session of Parliament in the capital Kigali.
The latest audits covered 165 public entities and projects, which represent 80 percent of state finances for the year ended June 30, 2019.
Biraro attributed lower audit coverage recorded the year ending June 30, 2019 to the COVID-19 pandemic that disrupted the availability of staff to be audited.
The audited expenditure incurred by 137 budget agencies and projects represents 80 percent down from 86.6 percent in 2018, he said.
Some cross-cutting findings identified during audits include cases of delayed and abandoned contracts, continuing cases of idle assets, and stalled projects, Biraro added.
The number of adverse opinions reduced by 2% compared to the last year.
This indicates that public entities are improving towards a better audit opinions as qualified audit opinions increased by 3% compared to the last year.
This year, the unqualified opinion makes 33% of opinion on the audit of compliance with laws and regulations and realization of value for money while 55% of opinions are unqualified on Financial Statements.
Biraro noted in his report that the level of implementation of his recommendations has deteriorated by 5% in the current audit.
At least 44 % of recommendations were fully implemented compared to 49% implemented in the previous year 2018.
Unqualified audit opinions make up 53%, Qualified opinions make up 31% whilst Adverse opinions made up 15% compared to 19% of the last year.