The Auditor-General has unveiled a qualified opinion audit report for Nairobi County Revenue Funds for the 2023/2024 financial year, marking a significant step forward in public financial management practices within the county.
Covering the financial year that ended on June 30, 2024, the report points out key issues related to financial management, governance, and internal controls within the Nairobi County Revenue Fund. Despite identifying certain material misstatements, it recognizes that the financial statements were largely accurate.
“Except for the effect of the matters described in the Basis for Qualified Opinion section of my report, the financial statements present fairly, in all material respects, the financial position of the County Revenue Fund – County Government of Nairobi City as of June 30, 2024, and of its financial performance and cash flows for the year then ended,” the report states.
The Auditor-General praised the county for making substantial improvements in public financial management. The report is structured into three key sections: the evaluation of financial statements, the lawful and effective use of public resources, and the adequacy of internal controls.
Additionally, the findings highlight critical governance challenges, including compliance with financial reporting frameworks and legal requirements. While the qualified opinion indicates some discrepancies, the overall assessment confirms notable progress in Nairobi County’s financial practices.
Stakeholders have been urged to address the identified gaps to further enhance financial accountability and governance in Nairobi City.
Notably, between 2013 and 2017, the Auditor-General issued a disclaimer opinion, followed by an adverse opinion from 2017 to 2022. This year’s qualified opinion reflects an encouraging shift in the county’s financial oversight.
