REPUBLIC OF KENYA
k -AGtl
OFFICE OF THE AUDITOR-GENERAL
Enhancing Accountability
REPORT
OF
THE AUDITOR-GENERAL
ON
KENYA INFORMAL SETTLEMENT
IMPROVEMENT PROJECT NO. P113542
FOR THE YEAR ENDED
30 JUNE, 2021
STATE DEPARTMENT FOR HOUSING
AND URBAN DEVELOPMENT
OFFIC OFE AUDTO jjkjjz0B1
084-W10 IARB
PROJECT NAME: KENYA INFORMAL SETTLEMENT IMPROVEMENT PROJECT
IMPLEMENTING ENTITY: STATE DEPARTMENT FOR HOUSING AND URBAN
DEVELOPMENT
PROJECT ID: P113542
CREDIT NUMBER: 4873
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED
JUNE 30, 2021
Prepared in accordance with the Cash Basis of Accounting Method under the International
Public Sector Accounting Standards (IPSAS)
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
TABLE CONTENTS
1. PROJECT INFORMATION AND OVERALL PERFORMANCE ..........R..ORMANCE...............................il
2. STATEMENT OF PERFORMANCE AGAINST PROJECT'S PREDETRMINED OBJECTIVES .... xii
3. CORPORATE SOCIAL RESPONSIBILITY STATEMENT/SUSTAINABILITY REPORTING .......xiv
4. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES ................SPNIBLTIS......................xvi
5. REPORT OF THE INDENDENT AUDITOR ON KENYA INFORMAL SETTLEMENT
IMPROVEMENT PROJJECT.....----------------
6. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30TH JUNE
7. STATEMENT OF FINANCIAL ASSETS AS AT 30TH JNE 2.......... .....3
8. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2021..............0.2...................4
9. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS ............................5
10. SIGNIFICANT ACCOUNTING POLICIESOICIES.6............................... 6
11. NOTES TO THE FINANCIAL STATEMENTS.................TEMEN-TS....-13
12. OTHER IMPORTANT DISCLOSURES ................SCLOSURE-S.-2.-...... 28
13. PROGRESS ON FOLLOW UP OF PRIOR YEAR AUDITOR'S RECOMMENDATIONS ............33
14. ANN EX ES.................EXES. . . . . . . . . . . . . . . . . . . ..34. . . . . . .
1
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
1. PROJECT INFORMATION AND OVERALL PERFORMANCE
1.1 Name and registered office
Name: The project's official name is Kenya Informal Settlement Improvement Project.
Objective: The key objective of the project is to improve living conditions of informal
settlements in selected Counties in Kenya.
Address: The project headquarters office is located in Nairobi County, Kenya.
The address of its registered office is:
Ardhi House,
1st Ngong Avenue,
Nairobi
Contacts:
The following are the project contacts:
P. 0. Box 30119, 00100
Nairobi
11
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
PROJECT INFORMATION AND OVERALL PERFORMANCE (Continued)
1.2 Project Information
Project Start Date: The project start date is 01.07.2011
Project End Date: The project end date is 30 12 2020
Project Manager: The project manager is Mrs Peris Mang'ira.
Project Sponsor: The project sponsor is IDA, AFD, SIDA and GoK.
1.3 Project Overview
Line Ministry/State The project is under the supervision of the State
De artment of the project De artment for Housing and Urban Develo ment.
Project number P113542,TF:18327
Strategic goals of the project The strategic goals of the project are as follows:
(i) Strengthening institutions and programme
management
(ii) Enhancing tenure security
(iii) Investing in infrastructure and service delivery
(iv) Planning for urban growth
Achievement of strategic The project management aims to achieve the goals
goals through the following means:
(i) Strengthening institutions and programme
management;
(ii) Enhanced land tenure;
(iii) Building of roads, floodlights, water and
sewerage, and waste management;
(iv) Extensive studies and planning on preventing
informal settlements in future
Other important background The project completed its eighth year of implementation.
information of the roject
Current situation that the The project was formed to intervene in the following
project was formed to areas:
intervene (i) lack of security of tenure
(ii) lack of physical infrastructure e.g. roads, foot
aths, lighting, water, sewer and waste dis osal
Project duration The project started on 1st July 2011 and is expected to
run until 30 June 2016. The time was extended to
December 2020
111
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For thefi"nancial year ended June 30, 2021
PROJECT INFORMATION AND OVERALL PERFORMANCE (Continued)
1.4 Bankers
The following are the bankers for the current year:
Designated account: Equity Bank Limited
Head Office, Equity Centre Branch
Account No. 0810295112857
Central Bank of Kenya
Account No. 1000339888
Project Account: Cooperative Bank of Kenya
Upper Hill Branch
Account No. 01141161460400
1.5 Auditors
The project is audited by the Auditor General
Auditor General
Office of the Auditor General
Anniversary Towers, University Way
P.O. Box 30084
Nairobi
1.6 Roles and Responsibilities
Peis Mang'ira Project Coordinator M.A.Planning, Registered Overall programme
SDS Physical Planner; Member AAK , coordination.
Planning KIP
Stella Gitimu Head of Component 1 MBA, BA Land Manage component 1
DD Slum Upgradmng Economics ISK activities
Gere ra ed fCopnet2 A Environmental Manage component 2
DD Survey Management Bsc Land activities
Survey BA Urban
Planning ISK, AAK
Julius Mugwika Head of Component 3 Msc Civil Engineering Manage component 3
SPSE (S) MIEK activities
Wagura Theuri Project Accountant MA, BA (Econ), CPA(K) Financial Management
PHO Member ICPAK
Iv
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
1.7 Funding summary
The Project duration is live years (from 2011 to 2017) with a further extension to December 2020. The
financing budget of US$ 157.3 Million equivalent to KES 15 Billion as highlighted in the table below:
Below is the funding summary:
A. Source of Funds
IDA $0,000,000 8V 9,246,591,028 9582,60 9,591,0
AFD 35,000,000/ 3,977,196,321 38,987,556 3,977,196,321 0 0
(ii) Counterpart
funds
Gvrmnof $10,000,000 1,010,000,000 14,144,988 1,014,058,301 0
Kenya 1,1,0,0
NHP (Kazi Mtaami) 1,1,0,0
Total 158,300,000 15,080,966,803 157,325,219 28,501,025,103 0 0
Kenya Informal Sett&ment Improvement É4oject
Reports and Financial Statements
For the financial year ended June 30, 2021
PROJECT INFORMATION AND OVERALL PERFORMANCE (Continued)
B. Application of Funds
(Ø) Grant
SIDA 8,300,00o 847,179,45484,7,4
(Hi) Loan ______________________ ____
IDA 95,8s92,675 9,246,591,0289,45902
-----9 246465991028
AFD 977,196,321
Counterpart
funds
G vm n-t r 1414988,083~ --
of Kenya 98,4418 044,6
cNHP (Kazi 93641803,1,6
Mtaani) 13,416,000,000 13,407,355,283 8,644,717
Total 158,300,000 28,501,025,103 28,461,966,2403,5,8
vi
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
PROJECT INFORMATION AND OVERALL PERFORMANCE (Continued)
1.8 Summary of Overall Project Performance:
i) Budget performance against actual amounts for current year and for cumulative to-date,
During the year under review, the Project received KShs 13,000,000,000 and incurred expenditure of
KShs 13,652,475,370. The cumulative receipts and expenditures are Kshs. 28,706,877,907 and Kshs.
28,665,269,028 respectively.
Receipts & Payments Utilization
Revenue Utilisation Bar Graph ___---__-_----
14,000,000,000 Receipts in I , u0p,1 000,000
12,000,000,000
10,000,000,000 Final
Budget
8,000,000,000
6,000,000,000 Actuaton
Comparable
4,000,000,000 Basis
2,000,000,000 541,534,25l
Proceeds from Receipts from Loan from External Miscellaneous receipts
Domestic and Foreign Government of Kenya Development Partners
Grants
Payment Utilization Bar Graph _ _-_
16,000,000,000 Payments 13,T
14,000,000,000 in Kshs Million
12,000,000,000
10,000,000,000
8,000,000,000
6,000,000,000
4,000,000,000 57,742,134
2,000,000,000 580000000--
Compensation Use of goods Transfers to Other Grants Social Security Acquisitionof
of employees and services Other and Other Benefits Non-financial
Government Payments Assets
Entities
vii
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
ii) Physical progress based on outputs, outcomes and impacts since project commencemer
The period 2020-2021 was a year of enhanced actualization of various infrastructure investment menu and
tenure regularization interventions targeted under KISIP. Eleven (11) urban areas - Mombasa, Nairobi,
Machakos Naluru/Naivasha, Eldoret Phase I and II, Kitui, Embu, Malindi (Kilifi), Kisumu, Kericho
benefitting from infrastructure and the remaining four (4), Garissa, Nyeri, Kiambu and Kakamega benefitting
from planning and survey. Socio-economic surveys for Kakamega and Kisumu phase 11 were completed and
prioritized for infrastructure under KISIP Phase II.
Contracts for civil works and consultancies for tenure regularization which commenced in 2014 continued to
realize the fruits in 2020-2021 financial year with 5,400 titles prepared and delivered to Nyeri, Mombasa,
Kilifi, Nakuru, Kisumu and Uasin Gishu Counties, 7,600 leases were prepared for Garrisa and will be issued
during the FY 2021-2022. 80 informal settlements were planned and surveyed in this component. 25,440
beneficiaries are expected; 80 socioeconomic reports, 80 LPDPs were prepared and approved while 78 RIMs
successfully amended cumulatively.
Infrastructure projects are complete in most of the urban areas, while others like Kisumu, Naivasha,
Machakos and Kericho are under Defects Liability Period. The scope consists of settlement access roads and
footpaths; drainage canals, water and sanitation projects; and high mast floodlighting projects.
Completed infrastructure projects include: 98.289km of roads constructed to bitumen standards; 63.0481m of
sewer pipeline and 4,788 sewer connections done; 21 number ablution blocks; 9,312 number piped water
connections; 112.494 km of water pipeline constructed; 109.812 km of drainage canals constructed 134
number 30-meter-high mast constructed; 120.078m of footpaths have been constructed.
Direct and indirect beneficiaries continue to be determined as projects get completed and reported on
accordingly.
People benefiting from improved tenure security (number); Under KISIP 80 settlements are at various stages
of tenure regularization under Lots 1, 2, 3 & 4 contracts which will have 127,200 people as direct project
beneficiaries from tenure. This has been realized because 25,440 titles have been earmarked for issuance,
with each title beniefitting an average of 5 persons.
Direct project beneficiaries (number); A total of 1,389,980 people are benefitting from tenure and
infrastructure components of KISIP. This is because some infrastructure services target similar audiences -
water connections, sewer connections, high mast lighting and roads.
Female beneficiaries (percentage, core supplement); The project has endeavoured in its infrastructure and
tenure options to ensure gender parity in projects. Currently, 694,990 number of females, translating to 50%
of females are benefitting from KISIP projects; this has been validated by socioeconomic surveys by various
components.
People in informal settlements provided with access to improved drainage infrastructure under KISIP
(Number). Access to drainage facilities were prioritised by communities in all Counties owing to constant
flooding and need for storm water management; storm water drainage canals were constructed in Mombasa,
Embu, Kericho, Kitui, Kisumu, Eldoret, Nakuru, Machakos, Naivasha and Nairobi. This has benefitted
approximately 1,000,000 people in these urban areas.
viii
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
Number of People in urban areas provided with access to all-season roads within a 500-meter range under
KISIP (number). Investments in access road network consist of settlement main access roads connecting the
settlements and trunk roads, settlement roads providing access within the settlements, walkways and
footpaths. A total of 98.289 km of settlement access roads and 120.078 km of footpaths have been
constructed through KISIP benefitting 1,000,000 people.
Number of people in urban areas provided with access to improved water sources under KISIP (number).
Construction of 112.494 km of water pipeline has been completed with 9,312 water connections done to date;
11 Water Kiosks have been constructed in providing additional access to water. This has enabled 262,780
people to have access to water sources which are safe and clean. 21 ablution blocks have been completed
under the project.
Kazi Mtaani (figures cumulative)
Bush cl e ared (sqm) 55,493,455
Drainage undlogged (Km) 177,632
Garba e collection and disposal (Tons) 142,362
Access path/street cleaned Km 143,634
Public offices u lifted/u raded No. 842.00
Trees lanted No. 4,334,114.00
Trees in nurseries (No.) 18,996,518.00
Pottin for seedlin s
Roads re aired (Km) 4,822.05
Cobblestone roads constructed Km 2.90
Draina e works undertaken Km 9,124,884.38
Low-cost buildings constructed No. 42.00
Non-motorized trans ort NMT constructed Km 10.00
Street furniture constructed No. 86.00
Desilting of dams (Tons)
ix
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
iii) Value-for-money achievements
NHJP Phase 11, so far, has delivered over KES 12.7 Bn in wages to participating workers and supported
economic activity within the over 1,000 informal settlements. This represents an injection of KES 12.7 Bn in
local economies that have experienced disruption due to the economic slowdown. The provision of a daily
wage has supported households and allowed them to meet their basic needs. In addition, the youth workers
continue to receive training that will be useful after the program ends. Many have formed groups that will
access funds form the Youth Fund and other government programs. Many have received training from
collaborators on financial planning and prudence with their earnings. Testimonials from participants indicate
that they have saved money, set up businesses by co-investing in their groups, as well as other made other
important strides financially. Lastly, the youth have participated in making their communities and environs
better. This connection with their communities is bound to increase their sense of civic duty and make them
better citizens overall.
iv) Absorption rate for each year since the commencement of the project.
The project has had a normally distributed absorption rate over the implementation period.
v) Implementation challenges and recommended way forward
Issue/challenge Lesson Recommendation
1. Complex tenure security Interpretation of legislation KISIP national team is taking a
arrangements and on roles and responsibilities more active role in supervision
operational delays of key actors in land e
occasioned by changes in management continue to Inolveme n of the irelevn
land surveying information negatively affect delivery of and verification of list of
results.an veiiaino lst f
beneficiaries.
2. lack of timely funding for There is need to anticipate The projected budget and
kazi mtaani; The and plan for unforeseen implementation period need to
unavailability of budget program extensions be known and precise
affected our cash flow
management therefore
limiting the ability to make
timely payment to the
workers.
1.9 Summary of Project Compliance:
The Program has ensured that all its activities carried out are within the laws of the Republic of
Kenya and that all regulations and procedures have been followed. Among the regulations include
x
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
the Environmental and Social Impact Assessment (ESIA) for which authority was issued for the
implementation of the project. In cases of inconsistency between the GOK Regulations and those
of the donors, the latter have been applied.
x1
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
2. STATEMENT OF PERFORMANCE AGAINST PROJECT'S PREDETRMINED
OBJECTIVES
Introduction
Section 81 (2) (f) of the Public Finance Management Act, 2012 requires that, at the end of each
financial year, the Accounting Officer when preparing financial statements of each National
Government entity in accordance with the standards and formats prescribed by the Public Sector
Accounting Standards Board includes a statement of the national government entity's performance
against predetermined objectives.
The key development objectives of the project are to:
a) To complete tenure regularization for settlements under the project;
b) To benefit persons living in selected settlements through both infrastructure and tenure options
under KISIP
c) To benefit females and males under the KISIP interventions;
d) To provide people with access to improved drainage infrastructure under the project;
e) To provide people living in urban informal settlements with access to all season roads within a
500-meter radius under KISIP;
f) To provide people in urban areas with access to improved water sources under KISIP;
Progress on attainment of Strategic development objectives
Project Objective Outcome Indicator Performance
Tenure security To enhance tenure Enhanced Enhanced security Tenure security
enhancement regularization under ownership of land of tenure improved in 80
the project to pave way for informal settlements
infrastructure and
housing
develo ment
Project To benefit females Females and Gender parity in 50% of males and
beneficiaries by and males under the males benefitted project females benefitted
gender KISIP interventions from KISIP beneficiaries from the project
interventions alike
People with To provide people Improved access Number of people 1,000,000 people with
access to with access to to drainage with improved improved drainage
improved improved drainage infrastructure drainage infrastructure resulting
drainage infrastructure under within settlements infrastructure from drainage canals
infrastructure the project under the project constructed under the
roject
People with To provide people Improved access Number of people 1,000,000 people with
access to all living in urban to all season roads with improved access to im roved all
xii
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For theafinancialyear ended June 30, 2021
informal settlements within 500 meter access to all season road within a
within a 500 with access to all radius season 500 meter
meter radius season roads within a within 500 meter
500-meter radius radius
under KISIP
People within To provide people in Improved access Number of people 262,780 persons
urban areas with urban areas with within urba aeasthmprovess wtoeefiroed wter
access to access to improved to improvewar imoed wterimrovred wae rba
improved water water sources under sources surces ares withe rban
sources KISIP ubnarsmber of people u r te p er
Total project To benefit persons I redsliving Nbef it pom hav persons
beneficiaries - living in selecte citin of enfith icto oh benefitted from
tenure and settlements through people living in e projed inbothturean
infrastructure both infrastructure slums and tnrre catn r infrstrutrote
and tenure options informal prjsecrcte in .st in rth
under KISIP settlements rojet
through tenure
security and
installation of
infrastructure and
service delivery
xiii
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
3. CORPORATE SOCIAL RESPONSIBILITY STATEMENT/SUSTAINABILITY REPORTIY-
KISIP exists to transform lives. This is our purpose; the driving force behind everything we do. It's
what guides us to deliver our strategy, which is founded on three pillars: putting the customer/Citizen
first, delivering relevant goods and services, and improving operational excellence. Below is a brief
highlight of our achievements in each pillar:
1. Sustainability strategy and profile
KISIP is being implemented in the fastest growing urban areas in Kenya which have witnessed
increased number of people living and working in informal settlements. The five major urban areas per
population and contribution to the GDP are: Nairobi, Mombasa, Kisumu, Eldoret and Nakuru.
Mombasa works were completed and handed over by H.E President on 5th January 2017. Works in the
Counties of Nairobi, Nakuru, Kericho, Kisumu, Machakos, Embu, Kitui have been completed. As a
result of KISIP, 1,389,980 people are currently benefitting from KISIP interventions, of which 694,990
are females. The urban transition is well under way in Kenya and urbanization is projected to continue
to grow at a rapid pace. Devolution will further speed up the rate of urbanization for the country. Due to
the growth and entrenchment of devolution, the urban areas of Nakuru and Eldoret are currently being
prepared to assume city status, which will increase Kenyan cities from three to five: Nairobi, Mombasa,
Kisumu, Nakuru and Eldoret. KISIP has intervened in all the major five urban areas and hence
supporting efforts aimed at sustainable urbanization. The urban transition in Kenya will play an
important role in determining the country 's growth prospects and social stability. KISIP was
formulated to bridge and contribute to improving the living conditions of people living in informal
settlements in Kenya and make urban areas more liveable.
2. Environmental performance
The project developed and implements an effective Environmental and Social Management
Framework. This has facilitated resettlement of project affected persons including resettlement of
structures and businesses. Compliance with the environmental policies and concerns are addressed
through environmental impact assessments (EIAs), which further have the provisions for an effective
Environmental Management Plans (EMP) to ensure sustainability of the KISIP projects. Additionally,
under the National Hygiene Programme (1A), further safeguard protocols were developed for the
implementation of the Kazi Mtaani programme. These have continued to be used even under the GoK
financing of the second phase of the programme.
3. Employee welfare
Projects implemented adhered to the provisions of the Occupational Safety and Health Act of 2007,
(OSHA) and have enforced the same in construction and office environments in collaboration with the
relevant agencies. Contractors are instructed to adhere to its provisions and also show evidence of
compliance with the same.
The Public Service Commission (PSC) is in charge of hiring staff on behalf of MDA's. All staff are
appraised on a yearly basis. Training is given especially for courses required for promotion or career
progression.
xiv
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
The State Department conducted training projections at the beginning of every financial year to guide
the Human resource department in nominating and selecting officers for training. Additionally, due to
the dynamic nature of the economy the department undertook steps to proactively engage staff in
training to ensure their skills conforms to the current needs. Staff performance appraisal is done
annually to ensure that productivity meets the required standards upon which employee with exemplary
performance are given priority for promotions.
Market place practices-
The organisation should outline its efforts to:
a) Responsible competition practice.
The State department ensured fair competition among the bidders while issuing the tenders. The
bidders are evaluated on set guidelines and given equal opportunity
The State Department for Housing and Urban Development has a Corruption Prevention Committee
in place whose functions amongst others include:
" Setting priorities in the prevention of corruption within the State Department
* Planning and coordinating corruption prevention strategies
* Integrating all corruption prevention initiatives in the State Department
" Receiving and reviewing reports on corruption reports made by staff and other stakeholder.
Evidence of concrete measures taken must be made available and referrals to other agencies
well documented.
* Spearheading corruption prevention campaigns within the State Departments
" Monitoring and evaluating the impact of corruption prevention campaigns within the State
Department
b) Responsible Supply chain and supplier relations-
The State Department proactively engaged stakeholders to ensure vital flow of information regarding
payments. This ensures that accountability and transparency in procurement of goods and services is
maintained between the involved parties. Upon completion of a project, the department ensures timely
issuance of the completion certificate.
c) Responsible marketing and advertisement-
Open advertisement is done in forums easily accessible to the public like newspapers, websites and
government notices.
d) Product stewardship-
The State Department ensures the customers have the right to quality and prompt services, accurate and
balanced information, respect and courteous treatment by the staff, timely payments for goods delivered
and services rendered and access to our offices and officers within the official working hours.
4. Community Engagements
The communities were greatly involved throughout the year through the Settlement Executive
Committees (SECs) in resolving various issues pertaining to operationalization of bio digesters in
Nairobi and Naivasha; participation in planning and survey activities of RAP implementation and
infrastructure development.
xv
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
4. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES
The Principal Secretary for the State Department for Housing and Urban Development and the Project
Coordinator for Kenya Informal Settlement 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 ended on June 30, 2021.
This 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 (v)Making accounting estimates that are reasonable in the circumstances.
The Principal Secretary for the State Department for Housing and Urban Development and the Project
Coordinator for Kenya Informal Settlement 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 Principal Secretary for the State Department for Housing and Urban Development and the Project
Coordinator for Kenya Informal Settlement 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, 2021, and of the Project's financial position as at that date. The Principal Secretary for the State
Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement
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 Principal Secretary for the State Department for Housing and Urban Development and the Project
Coordinator for Kenya Informal Settlement Improvement Project has complied fully with applicable
Government Regulations and the terms of external financing covenants, and that Project fuinds 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 Principal Secretary for the State Department for Housing
and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project on
______0-hn__b_C4__ 2021 and signed by them.
Principal Secretary Pinect CoordinatorPrjcAconat
Name: Charles M. Hinga CBS Na e: Peris Mang'ira Name: Wagura Theuri
ICPAK Member Number: 13047
xvi
REPUBLIC OF KENYA
Telephone: +254-(20) 3214000 HEADQUARTERS
E-mail: info@oagkenya.go.ke Anniversary Towers
Website: www.oagkenya.go.ke Poo Solo
OFFICE OF THE AUDITOR-GENERAL P.O. Box 3o84-00100
Enhancing Accountability
REPORT OF THE AUDITOR-GENERAL ON KENYA INFORMAL SETTLEMENT
IMPROVEMENT PROJECT NO. P113542 FOR THE YEAR ENDED 30 JUNE, 2021 -
STATE DEPARTMENT FOR HOUSING AND URBAN DEVELOPMENT
PREAMBLE
I draw your attention to the contents of my report which is in three parts:
A. Report on the Financial Statements that considers whether the financial statements
are fairly presented in accordance with the applicable financial reporting framework,
accounting standards and the relevant laws and regulations that have a direct effect
on the financial statements.
B. Report on Lawfulness and Effectiveness in Use of Public Resources which considers
compliance with applicable laws, regulations, policies, gazetted notices, circulars,
guidelines and manuals and whether public resources are applied in a prudent,
efficient, economic, transparent and accountable manner to ensure government
achieves value for money and that such funds are applied for intended purpose.
C. Report on Effectiveness of Internal Controls, Risk Management and Governance
which considers how the entity has instituted checks and balances to guide internal
operations. This responds to the effectiveness of the governance structure, the risk
management environment, and the internal controls developed and implemented by
those charged with governance for orderly, efficient and effective operations of the
entity.
An unmodified opinion does not necessarily mean that an entity has complied with all
relevant laws and regulations, and that its internal control, risk management and
governance systems are properly designed and were working effectively in the financial
year under review.
The three parts of the report are aimed at addressing the statutory roles and
responsibilities of the Auditor-General as provided by Article 229 of the Constitution and
the Public Audit Act, 2015. The three parts of the report, when read together constitute
the report of the Auditor-General.
REPORT ON THE FINANCIAL STATEMENTS
Opinion
I have audited the accompanying financial statements of Kenya Informal Settlement
Improvement Project No.P1 13542 set out on pages 1 to 33, which comprise the statement
of financial assets as at 30 June, 2021 and the statement of receipts and payments,
Report of the Auditor-General on Kenya Informal Settlement Improvement Project No. P113542 for the
year ended 30 June, 2021- State Department for Housing and Urban Development
statement of cash flows and statement of comparative budget and actual amounts 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
and Section 35 of the Public Audit Act, 2015. have obtained all the information and
explanations which, to the best of my knowledge and belief, were necessary for the
purpose of the audit.
In my opinion, the financial statements present fairly, in all material respects, the financial
position of the Kenya Informal Settlement Improvement Project as at 30 June, 2021, and
of its financial performance and its cash flows for the year then ended, in accordance with
International Public Sector Accounting Standards (Cash Basis) and comply with
Financing Agreements between the Republic of Kenya and International Development
Association (IDA)- No.4873-KE and Agency Francaise De development (AFD)-CKE 1055
01 J and Grant Agreement with Swedish International Agency (SIDA)-TF:018327 dated
23 May, 2011, 17 December, 2015 and 7 July, 2015 respectively.
In addition, the special account statement presents fairly, the special account transactions
and the closing balance has been reconciled with the books of account.
Basis for Opinion
The audit was conducted in accordance with International Standards of Supreme Audit
Institutions (ISSAls). I am independent of Kenya Informal Settlement Improvement
Project Management in accordance with ISSAI 130 on Code of Ethics. I have fulfilled
other ethical responsibilities in accordance with the ISSAI and in accordance with other
ethical requirements applicable to performing audits of financial statements in Kenya. I
believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my opinion.
Emphasis of Matter
Special Account Reconciliation
The statement of receipts and payments reflects nil proceeds from domestic and foreign
grants as disclosed under Note 2 to the financial statements. However, and as previously
reported, this excludes amounts withdrawn but yet claimed of USD12,609,173 equivalent
to Kshs.1,295,554,554 as at 30 June, 2021 reflected in the Projects special account
statement. The amount represents cumulative funds transfers to the Project bank
account, but whose expenditure returns had not been submitted to The National Treasury
by the close of the financial year.
My opinion is however not modified on the effects of the above matter.
Key Audit Matters
Key audit matters are those matters that, in my professional judgment, are of most
significance in the audit of the financial statements. There were no key audit matters to
report in the year under review.
Report of the Auditor-General on Kenya Informal Settlement Improvement Project, No. P 13542 for the
year ended 30 June, 2021-State Department for Housing and Urban Development
2
REPORT ON LAWFULNESS AND EFFECTIVENESS IN USE OF PUBLIC
RESOURCES
Conclusion
As required by Article 229(6) of the Constitution, based on the audit procedures
performed, I confirm that, nothing has come to my attention to cause me to believe that
public resources have not been applied lawfully and in an effective way.
Basis for Conclusion
The audit was conducted in accordance with ISSAI 4000. The standard requires that I
comply with ethical requirements and plan and perform the audit to obtain assurance
about whether the activities, financial transactions and information reflected in the
financial statements are in compliance, in all material respects, with the authorities that
govern them. I believe that the audit evidence I have obtained is sufficient and appropriate
to provide a basis for my conclusion.
REPORT ON EFFECTIVENESS OF INTERNAL CONTROLS, RISK MANAGEMENT
AND GOVERNANCE
Conclusion
As required by Section 7(l)(a) of the Public Audit Act, 2015, based on the audit
procedures performed, I confirm that, nothing has come to my attention to cause me to
believe that internal controls, risk management and governance were not effective.
Basis for Conclusion
The audit was conducted in accordance with ISSAI 2315 and ISSAI 2330. The standards
require that I plan and perform the audit to obtain assurance about whether effective
processes and systems of internal control, risk management and overall governance were
operating effectively, in all material respects. I believe that the audit evidence I have
obtained is sufficient and appropriate to provide a basis for my conclusion.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the International Development Association (IDA), except for the matter
under emphasis of matter, I report based on my audit that: -
i. 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;
ii. In my opinion, adequate accounting records have been kept by the Project, so far as
appears from the examination of those records; and,
iii. The Project's financial statements are in agreement with the accounting records and
returns.
Report of the Auditor-General on Kenya Informal Settlement Improvement Project, No. P 113542 for the
year ended 30 June, 2021-State Department for Housing and Urban Development
3
Responsibilities of Management and those charged with Governance
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with International Public Sector Accounting Standards (Gash
Basis) and for maintaining effective 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 and for its assessment of the effectiveness
of internal control, risk management and governance.
In preparing the financial statements, Management is responsible for assessing the
Project's ability to continue to sustain services, disclosing, as applicable, matters related
to sustainability of services and using the applicable basis of accounting unless
Management is aware of the intention to terminate the Project or to cease operations.
Management is also responsible for the submission of the financial statements to the
Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act,
2015.
In addition to the responsibility for the preparation and presentation of the financial
statements described above, Management is also responsible for ensuring that the
activities, financial transactions and information reflected in the financial statements are
in compliance with the authorities which govern them, and that public resources are
applied in an effective way.
Those charged with governance are responsible for overseeing the Project's financial
reporting process, reviewing the effectiveness of how the Project monitors compliance
with relevant legislative and regulatory requirements, ensuring that effective processes
and systems are in place to address key roles and responsibilities in relation to
governance and risk management, and ensuring the adequacy and effectiveness of the
control environment.
Auditor-General's Responsibilities for the Audit
The audit objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor's report that includes my opinion in accordance with the provisions
of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with
Article 229(7) of the Constitution. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted in accordance with ISSAIs will always detect
a material misstatement and weakness when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis
of these financial statements.
In addition to the audit of the financial statements, a compliance audit is planned and
performed to express a conclusion about whether, in all material respects, the activities,
financial transactions and information reflected in the financial statements are in
compliance with the authorities that govern them and that public resources are applied in
Report of the Auditor-General on Kenya Informal Settlement Improvement Project, No. P 13542 for the
year ended 30 June, 2021I-State Department for Housing and Urban Development
4
an effective way, in accordance with the provisions of Article 229(6) of the Constitution
and submit the audit report in compliance with Article 229(7) of the Constitution.
Further, in planning and performing the audit of the financial statements and audit of
compliance, I consider internal control in order to give an assurance on the effectiveness
of internal controls, risk management and governance processes and systems in
accordance with the provisions of Section 7(1)(a) of the Public Audit Act, 2015 and submit
the audit report in compliance with Article 229(7) of the Constitution. My consideration of
the internal control would not necessarily disclose all matters in the internal control that
might be material weaknesses under the ISSAls. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions.
Because of its inherent limitations, internal control may not prevent or detect
misstatements and instances of non-compliance. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the
Project's policies and procedures may deteriorate.
As part of an audit conducted in accordance with ISSAs, I exercise professional
judgement and maintain professional skepticism throughout the audit. I also:
a Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for my opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management.
* Conclude on the appropriateness of the Management's use of the applicable basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Project
ability to continue to sustain its services. If I conclude that a material uncertainty exists,
I am required to draw attention in the auditor's report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of my audit
report. However, future events or conditions may cause the Project to cease to
continue to sustain its services.
* Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Report of the Auditor-General on Kenya Informal Settlement Improvement Project, No. P1 13542 for the
year ended 30 June, 2021-State Department for Housing and Urban Development
5
Obtain sufficient appropriate audit evidence regarding the financial information and
business activities of the Project to express an opinion on the financial statements.
* Perform such other procedures as I consider necessary in the circumstances.
I communicate with the Management regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that are identified during the audit.
I also provide Management with a statement that I have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on my independence, and
where applicable, related safeguards.
CPA , CBS
AUDITOR-GENERAL
Nairobi
21 December, 2021
Report of/the Auditor-General on Kenya Informal Settlement Improvement Project, No. P113542for the
year ended 30 June, 2021-St ate Department/or Housing and Urban Development
6
,, :+
�t ib ,л
1 � � � i� '
� и � д� � О ® м со О �
I ь ,� О и М �� �у l� 0
,С' г� r? � м м N
� � � � N � �р ,.� l�
�+ и � рр `^ � р О � N
^ � р ,..., � СО Од
':,. С3 Г И � � N I�
:С �' О � � N О ®
� ��" � д- СО N N i;� l� � м
� �ь '� �' � N N
� "� • "�
_ � � � � � � t �
i �
Ор � � � д�
О � � � д'
О � � •--� Q;,
О
� � �
i r+ � о0
CG N tП ® •--� О�
р и .-+ р i �-'
�
о i i i i i i
� и � � � � �
G'� � .�� и �
`"" н w �
� "� �'
С�1 � � вS •^ �у
N Сч � +✓ С�г
�у. ' I � � � � 1
� � "_"i
� � О � � � д,.
р,а � г/� О
р� и � � w�a р � � �О V
hЧ +� О О ® .�-� О�
� G. �+ б"7 � О м � �
м �^ .� г+ о0 � ~
� . • V .г� n „' "". м N И q� .-� °�
� � г.�с � й � а �' � е� '_"
� р i i � о ' м � � � �
;� о ® .-. с�
О
Гт� о ® �.j �м
Fs,r р ® l^ l �
� О
{ р ® И б�
�ч 1Е �.., р ® �^ �
и-Ч �
Wti ^, I М Р� М
� ,--'
[,.,� FF
Г� в�t � � 1 1 1 1 1 � � � �
в, � � и
�`вq � U '� t�"' у � �
Г О � r' '� .
�`" � � л CCj у„ ."`.ь
� ° сс � а, cs
� .^•. л .:
� __, � � 1
и О � � � ® � м �
,� О ® рр� И
� �у � � р ® � N
V Q' � � � р� О ® �G
С$ "2J р ® t� l �
�у А �� сг ,., о о о .-,
� � _�, � '� � р ® И �
� г�у � а� � � � � м
`°` G� � Л С CJ м � ""
� � � � GC
� ,.�, � ж
®� �д г�_1 t� � и�^1 tV Q'� �' И � I� O�J � ®
� � � 1��' � у
�1 � "�i
o�i � � ®
�_ у
� °N � � и "' � � 4=' N
� � � � � ц�р � • � �'" й � � � , N �
�1 �' w �l �у ' � � � � "�'°� � � � � и ,� � 'б сб
� � � � Gг� 11 '~" `а°-' � � и U i02 ^ b°Л р N О � �
� `� 8' � f � ° �' ь°. � � ш � �,.e � с�б и ° � О сб � а�.� � сб
® �- 1 � ы, у Ч-. пS � � р�+ � и � V _ и
� � � iO1 � � � �о •у � � � � � ш � � � и • и ' U �н � � �н
� 'w й � � й � N N � � ° U Е'� � � � v � U � б сб и ° � �
„r� N и у,, >� U с°ci > ��
� ® "" �� � � о о о � о � ® � ° � � � ° " � �. ° О ;
��м �ч �__1___ �' С7 а-а '" �-д � Е� R� U ш а. и и<С 4=. Е-�
ーーーーーーーーーーーーーーーー
ペ％ーザビ
,
..
,.
,,. „
� N �
�� ® �
..+ � ® �
''`��` � N �g ®
'.r � CS � r1 М
-. � � \С д' �
.� r-�М .� �
� „�„ �ai :� GO G�"j
? ,: � � N ,� �
1 �ь� "ьi .r �
� �
N � � Н z
�
�ri о � � г`�, .С
° о ��� о � �
оо _, � � � а�
ci � �I
м о v д'' м
а N �� � � �
� �
° � � � ° е� U
1�.. � а z �
и
;`
� �
�, у „� и �
'_ � �
_ �� �« �
'� �' г' • :� а�
р� � ... а. �
и
� � `�
и � •�
с�
i` о �
N �
j; � �- ,� �л �
� о о г,_,
а" ^ ° с� - � ооо^ ш
�I ' � � � � � .� � � �
С ?-� С О <+'
.,^�..� CS �.^.. V.С Сэ N О
�
�
® �
о
М М � '�,
bA �
�
N � � `+�, � �'`
� � Г � t�
и
�
а`'G.+ �,tj �D Ф �"'i
О � а3 СЛ
О �
�
� � � ��
� м� � � � � 'б и
� сц й j сг i и OJ � О�i,
О F� ��-.�г � � о а�
t�i � м_ ..+ '." й U R�1
jT уΡ.�
� о Р.С• 1ьв 1у.� „тi' � а--�
� .r . гА ..� '� . С) �``х� � "-i �
� '� о с�
`� _ ��
� ® ® � у �
,v .'>> М М N
� � � � �
О � +и,1`. � г�,д = д• � +-'
�. С., с, : С +•, й eV о
ру Н ,�� � � � � � ш
н О � i� С:.� М +�
су G ^ �
� � �^�.. сг ч:-� �
� ° � �'
о
о .� � � �
� °' '� �' G Q. Ра
� � � � �
� w � { �б b�A
� v1 у � �
у � � v � . � �
LZ "° , , `� �' ,�
�.., � ,� ¢• , . r,�, и
�,' ^' � bp ? � �,�„ ,�
� � � � �. .� � ° y�j с�б
и �
� сrл 0� I k �� � U о � ��
� � � � � � � � ��� � �
�, О
N ..�^.
��� ®�`�°'А � ц � а, �
� �
�
Ken,va Informal Settlement Improvement Project
Reports and Financial Statements
For the./mancialyear ended June 30, 2021
7. STATEMENT OF FINANCIAL ASSETS AS AT 30TH JUNE 2021
Note 2020-2021
KS h S KShs
FINANCIAL ASSETS
Cash and C--h -u--valents
Bank Balances ILA 41,608,880 694,084,250
Cash Balances 11. B -
Cash Equivalents (short-term deposits) H.C - -
Total Cash and Cash Equivalents 41,608,880 694,084,250
Accounts Receivables 12 - -
TOTAL FINANCIAL ASSETS 41,608,880 694,084,250
FINANCIAL LIABILITIES
Payables- Deposits and Retentions 13
NET ASSETS - -
REPRESENTED BY
Fund balance b/fwd 14 694,084,250 706,884,466
Prior year adjustments 15 -
Surplus/(Deficit) for the year (652,475,370) (12,800,216)
NET FINANCIAL POSITION 41,608,880 694,
The accounting policies and explanatory notes to these financial statements form an integral part of the
financial statements. The financial statements were approved on 2021 and signed by:
Principal Secretary (Ject Coordinator Project Accountant
Date ljaite Date
ICPAK Member No.13047
3
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
8. STATEMENT OF CASUFLOW FOR THE PERIOD 30TH JUNE 2021
Recei ts from o eratin activities
Transfer from Government entities 13,000,000,000 521,000,000
Proceeds from domestic and foreign grants 2
Miscellaneous receipts 4
Pa ments from o eratin activities
Compensation of employees 5
Purchase of goods and services 6 (50,712,803) (110,160,709)
Social security benefits 7
Transfers to other government entities 9
Other grants and transfers 10
Ad*ustments durin the ear
Prior Year Adjustments -
Decrease/(Increase) in Accounts Receivable 16
Increase/ Decrease) in Accounts Pa able: 17
Net cash flow from o eratin activities 12,949,287,197 410,839,292
CASHFLOW FROM INVESTING
ACTIVITIES
Ac uisition of Assets 8 13,601,762,567) (1,981,944,417)
Net cash flows from Investing Activities 13 601,762,567 1,981,944,417
CASHFLOW FROM BORROWING
ACTIVITIES
Proceeds from Foreign Borrowings 3 1,558,304,909
Net cash flow from financing activities 1,800,216
NET INCREASE IN CASH AND CASH (652,475,370) (12,800,216)
E UIVALENTS
Cash and cash equivalent at BEGINNING 11
of the ear 694,084,250 706,884,466
Cash and cash equivalent at END of the 11
ear 41,608,880 694,084,250
The accounting policies and explanatory notes to these financial statements form an integral part of the
financial staternellts. The entity financial statements were approved on Thef C7 2021 and signed by:
Principal Secretary P ject Coordinator Project Accountant
Date Date Date
ICPAK Member No: 13047
4
一－－一―一一一一一
斗；〕
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For thefinancial year ended June 30, 2021
10. SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out
below:
10.1 Basis of Preparation
10.2 Statement of compliance and basis of preparation
The financial statements have been prepared in accordance with Cash-basis IPSAS financial reporting
under the cash basis of accounting, as prescribed by the PSASB and set out in the accounting policy
note below. This cash basis of accounting has been supplemented with accounting for; a) receivables
that include imprests and salary advances and b) payables that include deposits and retentions. The
financial statements comply with and confonn to the form of presentation prescribed by the PSASB.
The accounting policies adopted have been consistently applied to all the years presented.
10.3 Reporting entity
The financial statements are for the Kenya Informal Settlement Improvement Project under National
Government of Kenya. The financial statements encompass the reporting entity as specified in the
relevant legislation PFM Act 2012.
10.31.1 Reporting currency
The financial statements are presented in Kenya Shillings (1 ' Shs), which is the functional and reporting
currency of the Project and all values are rounded to the nearest Kenya Shilling.
6
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
10.4 Significant Accounting Policies
a) Recognition of receipts
The Project recognises all receipts from the various sources when the event occurs, and the related cash
has actually been received by the Government.
i) Transfers from the Exchequer
Transfer from Exchequer is be recognized in the books of accounts when cash is received. Cash is
considered as received when payment instruction is issued to the bank and notified to the receiving
entity.
ii) External Assistance
External assistance is received through grants and loans from multilateral and bilateral development
partners.
iii) Other receipts
These include Appropriation-in-Aid and relates to receipts such as proceeds from disposal of assets
and sale of tender documents. These are recognized in the financial statements the time associated
cash is received.
b) Donations and grants
Grants and donations shall be recognized in the books of accounts when cash is received. Cash is
considered as received when a payment advice is received by the recipient entity or by the beneficiary.
In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon
determination of the value. The date of the transaction is the value date indicated on the payment
advice.
7
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
Significant Accounting Policies (Continued)
c) Proceeds from borrowing
Borrowing includes Treasury bill, treasury bonds, corporate bonds, sovereign bonds and external loans
acquired by the Project or any other debt the Project may take on will be treated on cash basis and
recognized as a receipt during the year they were received.
d) Undrawn external assistance
These are loans and grants at reporting date as specified in a binding agreement and relate to funding
for the Project currently under development where conditions have been satisfied or their ongoing
satisfaction is highly likely and the project is anticipated to continue to completion. An analysis of the
Project's undrawn external assistance is shown in the funding summary
e) Recognition of payments
The Project recognises all payments when the event occurs, and the related cash has actually been paid
out by the Project.
i) Compensation of employees
Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period
when the compensation is paid.
ii) Use of goods and services
Goods and services are recognized as payments in the period when the goods/services are consumed
and paid for. If not paid for during the period where goods/services are consumed, they shall be
disclosed as pending bills.
8
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30,2021
Significant Accounting Policies (Continued)
iii) Interest on borrowing
Borrowing costs that include interest are recognized as payment in the period in which they incurred
and paid for.
iv) Repayment of borrowing (principal amount)
The repayment of principal amount of borrowing is recognized as payment in the period in which the
repayment is made. The stock of debt is disclosed as an annexure to the consolidated financial
statements.
v) Acquisition of fixed assets
The payment on acquisition of property plant and equipment items is not capitalized. The cost of
acquisition and proceeds from disposal of these items are treated as payments and receipts items
respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration
and the fair value of the asset can be reliably established, a contra transaction is recorded as receipt and
as a payment.
A fixed asset register is maintained by each public entity and a summary provided for purposes of
consolidation. This summary is disclosed as an annexure to the consolidated financial statements.
f) In-kind donations
In-kind contributions are donations that are 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 received for in-kind contributions can be reliably
determined, the Project includes such value in the statement of receipts and payments both as receipts
and as payments in equal and opposite amounts; otherwise, the contribution is not recorded.
Significant Accounting Policies (Continued)
g) 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. 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 were not surrendered or accounted for at the end of the financial year.
Restriction on cash
9
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
Restricted cash represents amounts that are limited/restricted from being used to settle a liability for at
least twelve months after the reporting period. This cash is limited for direct use as required by
stipulation. Amounts maintained in deposit bank accounts are restricted for use in refunding third part
deposits.
h) Accounts receivable
For the purposes of these financial statements, imprests and advances to authorised public officers
and/or institutions which were not surrendered or accounted for at the end of the financial year is
treated as receivables. This is in recognition of the government practice where the imprest payments are
recognized as payments when fully accounted for by the imprest or AlE holders. This is an
enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial
statements.
10
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
Significant Accounting Policies (Continued)
i)Contingent Liabilities
A contingent liability is:
a) A possible obligation that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity; or
b) A present obligation that arises from past events but is not recognised because:
i) It is not probable that an outflow of resources embodying economic benefits or service
potential will be required to settle the obligation; or
ii) The amount of the obligation cannot be measured with sufficient reliability.
Some of contingent liabilities may arise from: litigation in progress, guarantees, indemnities. Letters of
comfort/ support, insurance, Public Private Partnerships,
The Entity does not recognize a contingent liability but discloses details of any contingencies in the
notes to the financial statements unless the possibility of an outflow of resources embodying economic
benefits or service potential is remote. Annex 5 of this financial statement is a register of the contingent
liabilities in the year.
Section 89 (2) (i) of the PFM Act requires the National Government to report on the payments made,
or losses incurred, by the county government to meet contingent liabilities as a result of loans during
the financial year, including payments made in respect of loan write-offs or waiver of interest on loans
j) Contingent Assets
The Entity does not recognize a contingent asset, but discloses details of a possible asset whose
existence is contingent on the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Entity in the notes to the financial statements. Contingent assets are
assessed continually to ensure that developments are appropriately reflected in the financial statements.
If it has become virtually certain that an inflow of economic benefits or service potential will arise and
the asset's value can be measured reliably, the asset and the related revenue are recognized in the
financial statements of the period in which the change occurs.
k) 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 recorded as 'memorandum' or 'off-balance' items to provide a sense of the
overall net cash position of the Project at the end of the year. 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.
I)Budget
The budget is developed on a comparable accounting basis (cash basis), the same accounts
classification basis (except for accounts receivable - outstanding imprest and clearance accounts and
11
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30,2021
accounts payable - deposits, which are accounted for on an accrual 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. The Development Projects are budgeted for under the
MDAs but receive budgeted funds as transfers and account for them separately. These transfers are
recognised as inter-entity transfers and are eliminated upon consolidation.
A high-level assessment of the Project's actual performance against the comparable budget for the
financial year/period under review has been included in an annex to these financial statements.
m) Third party payments
Included in the receipts and payments, are payments made on its behalf by to third parties in form of
loans and grants. These payments do not constitute cash receipts and payments and are disclosed in the
payment to third parties column in the statement of receipts and payments.
During the year Kshs NIL being loan disbursements were received in form of direct payments from
third parties.
n) 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/period 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.
o) Comparative figures
Where necessary comparative figures for the previous financial year/period have been amended or
reconfigured to conform to the required changes in financial statement presentation.
p) Subsequent events
There have been no events subsequent to the financial year/period end with a significant impact on the
financial statements for the year ended June 30, 2021.
q) Errors
Material prior period errors shall be corrected retrospectively in the first set of financial statements
authorized for issue after their discovery by: i. Restating the comparative amounts for prior period(s)
presented in which the error occurred; or ii. If the error occurred before the earliest prior period
presented, restating the opening balances of assets, liabilities and net assets/equity for the earliest prior
period presented.
12
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
11. NOTES TO THE FINANCIAL STATEMENTS
1. RECEIPTS FROM GOVERNMENT OF KENYA
These represent counterpart funding and other receipts from government as follows:
inception)
Counterpart funding through State Department for
Housing and Urban Development
Counterpart funds Quarter 1 - 145,000,000
Counterpart funds Quarter 2 - 235,000,000
Counterpart funds Quarter 3 - 70,000,000 191,569,780
Counterpart funds Quarter 4 - 35,000,000 442,488,521
Counterpart funds NHP 13,000,000,000 416,000,000 13,416,000,000
Total (See Annex 2) 13,000.000,000 521.0000 14,430.581
Other transfers from government entities
Appropriations-in-Aid _ _ _
Total _0 000 521,000,000 14,430,05
13
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. PROCEEDS FROM DOMESTIC AND FOREIGN GRANTS
During the 12 months to 3 0th June 2021, we received grants from donors as detailed in the table below:
Name of Donor Date Amount Grants Grants Grants Total amount in
receiv received received in received received KShs
ed in donor cash as direct in kind
currency payment
Grants Received from
Bilateral Donors (Foreign
Governments)
Grants Received from
Multilateral Donors
(International
Organizations)
SIDA
Grants Received from
Local Individuals and
organizations
Total - - - -_-_-
14
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
3. LOAN FROM EXTERNAL DEVELOPMENT PARTNERS
During the 12 months to 30th June 2021 we received funding from development partners in form of loans
negotiated by the National Treasury donors as detailed in the table below:
Namneof Donor Date Amount Loans Loans -Total amnount in KShs
received in loan received received
curreney in cash as direct
pa_ymfent*
KShs KSs 2021' 20192
Loans Received from
Bilateral Donors (Foreign
Governments)
Loans Received from
Multilateral Donors
(International Organisations)
International Development 12,754,58
Association (IDA)
French Development Agency 1,545,550,32
(AFD)
Total . 1,558,304,9(
15
4 .
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
4. MISCELLANEOUS RECEIPTS
2O2 WO21
F Receipts Receipts
,controlled by controlled Cumulative to-
the entity in by third Total Total dlate (from
Cash parties Receipts Receipts ineption)
KShs KShs KShs KShs KShs
Property income
Sales of goods and
services
Administrative fees and
charges
Fines, penalties and
forfeitures
Voluntary transfers other-
than grants-
Other receipts not 205,852,804
classified elsewhere
Total - 205,852,804
16
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
5. COMPENSATION OF EMPLOYEES
by the Entit in nuade by third Total Paymte [Cumubative
Cash parties Pavnments nts to dlate
KShs KShs KShs KShs KShs
Basic salaries of
permanent employees
Basic wages of temporary
employees
Personal allowances paid
as part of salary
Personal allowances paid
as reimbursements
Personal allowances
provided in kind
Pension and other social
security contributions
Compulsory national
social security schemes
Compulsory national
health insurance schemes
Social benefit schemes
outside government
Other personnel
payments
Total
17
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
6. PURCHASE OF GOODS AND SERVICES
Payments Payments
made by the made by third Total Total Cumulative
Entitv in Cash arties Paments Payments to- date
KShs KShs KShs KShs KShs
Utilities, supplies and
services 9,946,050 9,946,050 15,058,476 103,713,121
Communication, supplies 442,980,000
and services 2,980,000 4,650,076 44,193,464
Domestic travel and
subsistence 29,663,460 29,663,460 55,592,591 351,157,160
Foreign travel and - -
subsistence 5,976,662
Printing, advertising and 651,844 651,844
information supplies 3,923,520 41,386,555
Rentals of produced assets
44,313 - 44,313
Training payments 18,529,890 142,360,178
Hospitality supplies and -
services 4,443,430
Insurance costs 881,909 881,909 168,796 2,533,707
Specialized materials and
services
Other operating payments -
Routine maintenance -
vehicles and other transport 6,545,227 70,318,962
e uipment 6,545,227 12,237,360
Routine maintenance- other
assets
Exchange rate losses/gains
(net)
Total 50,712 3 -50712803 110,10,709 766,083.239
18
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. SOCIAL SECURITY BENEFITS
made by the made by
i Entity inx third Total Total Cumulativ
Cash parties paymnents Payments to- date
KShs KShs KShs KShs KShs
Government pension and
retirement benefits -
Social security benefits in
cash and in kind -
Employer social benefits
in cash and in kind -
Total - -
There were no payments for social security benefits
19
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. ACQUISITION OF NON-FINANCIAL ASSETS
2020/21 2019/20
Payments Payenents
Made by the made by Total Total Cumulative to-
Eniyi ah third parties 'Pavments Payments date
KShs KShs KShs KShs KShs
Purchase of buildings
Construction of buildings
Refurbishment of buildings
Construction of roads
Construction of civil works 443,165,630 443,165,630 819,096,612 9,931,701,235
Overhaul & refurbishment of - - - -
construction and civil works -
Purchase of vehicles & other - - - -
transport equipment 82,478,360
Overhaul of vehicles & other - - - -
transport equipment -
Purchase of household furniture & - - - -
institutional equipment -
Purchase of office furniture & - - -
general equipment 5,504,593 247,517,757
Purchase of specialised plant, - - - - -
equipment and machinery
Rehabilitation & renovation of - -- --
plant, equipment & machinery
Purchase of certified seeds, - - - -
breeding stock and live animals
Research, studies, project
preparation, design & supervision 161,409,330 161,409,330 441,343,212 3,551,028,827
Rehabilitation of civil works 12,997,187,607 12,997,187,607 716,000,000 13,713,187,607
Acquisition of strategic stocks
Acquisition of land
Acquisition of other intangible - -
assets
Total 13.601,762.567 13,601.762.567 1981.44,417 27,525,913.787
20
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
9. TRANSFERS TO OTHER GOVERNMENT ENTITIES
During the 12 months to 30 June 2021, we transferred funds to reporting government entities as shown
below:
2020/21 2019/20
Pawnents
Payvmeats made by made by Total Total Cumulative to-
the Entity in Cash' third parties PiaNments Pavments date
KShs KShs KShs KShs KShs
Transfers to National
Government entities
Athi Water Services Board
- - - 203,237,099
Coast Water Services
Board 71,200,000
Lake Victoria North Water
Services Board 98,834,903
- - ~T372,2 -
Transfers to County
Governments
TOTAL - : 373 272 002
We have confirmed that the beneficiary institutions have received the funds and have recorded these as inter-
entity receipts. We have attached these duly signed confirmations as an Appendix to the financial statements.
21
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. OTHER GRANTS AND TRANSFERS AND PAYMENTS
Payments made
by the Entity'in Payments made' Total Total' Cumulative
Cash by third parties Paymients Payments to-date
KShs KShs KShs KShs KShs
Grants for
scholarships
Transfers to lower
levels of government
e.g schools
Miscellaneous
payments
Total
22
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
11. CASH AND CASH EQUIVALENTS
2020/21 ! - 2019/20
KShs KShs
Bank accounts (Note 8.13A) 41,608,880 694,084,250
Cash in hand (Note 8. 13B) - -
Cash equivalents (short-term deposits) (Note 8.13C) -
Total 41,608,880 694.084.250
The project has 1 number of project accounts spread within the project implementation area and two
number of foreign currency designated accounts managed by the National Treasury as listed below:
11. A Bank Accounts
Project Bank Accounts
Foreign Currency Accounts
Central Bank of Kenya [A/c No:] -_-
Equity Bank [A/c No......] _-
Total Foreign Currency balances
Local Currency Accounts
Co-operative Bank of Kenya [A/c No. 01141161460400] 39,058,880 691,534,250
Others (amount held by Bank as collateral) 2,550,000 2,550,000
Total local currency balances 41,608,880 694084.250
Total bank account balances 41,608.880 694.084,250
23
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Special Deposit Accounts
The balances in the Project's Special Deposit Account(s) as at 3 oth June 20xx are not included in the Statement
of Financial Assets since they are below the line items and are yet to be drawn into the Exchequer Account as a
voted provision.
Below is the Special Deposit Account (SDA) movement schedule which shows the flow of funds that were
voted in the year. These funds have been reported as loans/grants received in the year under the Statement of
Receipts and Payments.
Special Deposit Accounts vSchedule
(i) Equity Bank Limited [A/c NO:0810295112857 12,754,5
Opening balance
Total amount deposited in the account
Total amount withdrawn (as per Statement of Receipts & 12,754,589
Payments)
Closing balance (as per SDA bank account reconciliation
attache
(ii) KISIP-CKE 1055 01 J [Alc No 10003398881
Opening balance (as per the SDA reconciliation) - 165,164,750
Total amount deposited in the account 1,380,385,571
Total amount withdrawn (as per Statement of Receipts & 1
Payments)
Closing balance (as per SDA bank account reconciliation
attached
The Special Deposit Account(s) reconciliation statement(s) has (have) been attached as Appendix v
support these closing balances.
24
Kenya Informal Settlement fmprovement Project
Reports and Financial Statements
For the.financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
11 B Cash In Hand
2020/21 2019/20
Location s
Location 3
Location 3
Other locations (specif)
Total cash balances
11 C Cash equivalents (short-term deposits)
LKeny Commrcia Bank[A/CNo ..... Shs IKh
Key Commercial Bank t[A/C No.
Co-Operative Bank of Kenya [A/C No..
Others (Speci)
Total
12. ACCOUNTS RECEIVABLES
Description 2020-2021 2019-2020
Kshs Kslhs
Govrmiet Imprests
Salary advances
Total
25
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
12B: BREAKDOWN OF IMPRESTS AND ADVANCES
Name of Officer or Amount Due Date of Amwant dBIalance Balance
Institution Taeurrendea Sredd 2012-
Total
13. ACCOUNTS PAVABLES
Description 2002021 2019-2020
Retention
De osits
Total
14. FUND BALANCE BROUGHT FORWARD
- -2020-2021 2019-2020
KShs KShs
Bank accounts 41,608,880 694,084,250
Cash in hand
Cash equivalents (short-term deposits)
Outstanding imprests and advances 4 6
Total 41,608,880 694,084,250
26
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
15. PRIOR YEAR ADJUSTMENT
Bankalnc accun Baane
Bia nce' bAdjustments Adjusted
~2019/2020 as per Balance b/f
Cash in hand
Accounts Payables
Receivables
Others (specify)
Total
(Explain whether the prior year relates to errors noted in prior year, changes in estimates or accounting
policy.)
16. CHANGES IN RECEIVABLE
Descrip io rrr-
O ening Receivables as at I20 Jul 2021
Closing account receivables as at 30th June 2021
Change in Receivables
17. CHANGES IN ACCOUNTS PAYABLE
Description of the error -0202 2019-2020
- - - -Ksht Kshs
Deposit and Retentions as at 1" July 2021
Closing accounts payables as at 30"' June 2021
Change in payables
27
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
12. OTHER IMPORTANT DISCLOSURES
1. PENDING ACCOUNTS PAYABLE (See Annex 3A)
Balance 1b/fFY Addlitions for Paid dpring the Balance c/f
2019/2020 the period Iyear F 0022
escription KshsKshs Kshs Kshs
Construction of buildings
Construction of civil
works
Su ly of goods
Su ly of services
Total
2. PENDING STAFF PAYABLES (See Annex 3B)
Balance h/f FY Additions Paid during Balance c/f
2019/2020 or the period the er FY 2020/2021
DescriptionKssKhKhsss
Senior management
Middle management
Unionisable em loyees
Others
Total
28
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
OTHER IMPORTANT DISCLOSURES (Continued)
3. OTHER PENDING PAYABLES (See Annex 3C)
Amounts due to National
Government entities
Amounts due to County
Government entities
Amounts due to third
arties
Total
4. EXTERNAL ASSISTANCE
External assistance received as grants
External assistance received as loans
External assistance received in kind- as payment by
third arties -
Total
29
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30,22
OTHER IMPORTANT DISCLOSURES (Continued)
a). External assistance relating loans and grants
FY202701,2021 F 0922
Description khs Kshs
External assistance received as loans
External assistance received as grants
Total
b) Undrawn external assistance
Purpose for which
the undrawn
external assistance
may be used FY 2020/2021 FY 2019/2020
Description - ssKh
Undrawn external assistance - loans
Undrawn external assistance - grants
Total
c) classes of providers of external assistance
- - - - - -FY 2020/202 FY 2019/2020
Description Ksus Kh
Multilateral donors -
Bilateral donors e
International assistance organization3
NGOs -
National Assistance Organization
Total dvlpeto efr betv,mrec
Provide details of the reasons for external assistance e,g. Economicdelomnorwfaebjci,Eegny
relief Trading activities etc
30
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
OTHER IMPORTANT DISCLOSURES (Continued)
d. non-monetary external assistance
Good=s=
Services
Total
This may occur when goods such as vehicles, computers, medical equipment, food aid etc are contributed to a county by donors,
NGO etc N/B : Disclose the basis on which the value of goods and services were determined ( This may be by : depreciated
historical cost of physical assets, price attached on the goods, an assessment of value by the management of transferor, recipient
on Third Party, Fair value measurement.
e Purpose and use of external assistance
Compensation of Employees
Use of goods and services
Subsidies
Transfers to Other Government Units
Other grants and transfers
Social Security Benefits
Acquisition of Assets
Finance Costs, including Loan Interest
Repayment of principal on Domestic and Foreign borrowing
Other Payments
TOTAL
N/B The above sub-classification will be adopted based on the purpose of the external assistance and how
the external assistance was used.
31
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
OTHER IMPORTANT DISCLOSURES (Continued)
f. External Assistance paid by Third Parties on behalf of the Entity by Source
This relates to external assistance paid directly by third parties to settle obligations on behalf of the entity
F?Y202012021 F 0922
Description -ssKh
National overnment
Multilateral donors
Bilateral donors
International assistance organization
NGOs
National Assistance Organization
Total
32
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For the financial year ended June 30, 2021
13. PROGRESS ON FOLLOW UP OF PRIOR YEAR AUDITOR'S RECOMMENDATIONS
The following is the summary of issues raised by the external auditor, and management comments that
were provided to the auditor. We have nominated focal persons to resolve the various issues as shown
below with the associated time frame within which we expect the issues to be resolved.
Reference
Timieframe:
NThe aeetorStatus:
extenal Issue /Observations from NIanagement (Resolved (Pta de
eAudrtor When -you
pAymtsi commentsr p eat
discoe uexpect the issue
Report.Resolvedwe
ephas 1to be reso!ved
Special Account Reconciliation
The statement of receipts and
epyentus reflects proceeds from
domestitc and foreign grants of
Kshs. 1,558,304,909 and as
disclosed under Note 10.5 to the
financial statements. However,
this excludes amounts withdrawn The returns have
but unclaimed of USD been submitted
Emphasis 12,998,243.20 equivalent to to the National Rsle
of Matter Kshs. 1,335,530,325 as at 30 Treasury and all Rsle
June, 2020 reflected in the expenditure
Project Special account documented.
statement. The amount represents
cumulative funds transfers to the
Project bank account, but whose
expenditure returns had not been
. submitted to the National
Treasury by the close of the
financial year
Prmncipal Secretary Pr oordinator
Date Date
33
！〕方
－一→一一一一一一一－
―〕仰－
�
.�,
�
�
�
_ н
о
t�
а
с_v
�� °�
n
га �
� v
�
� �
� �
� �
,б �
�
�
nL °
с, � �
= c�t пt
G: у 1I
,r„ U 'б
, �
`r' Г
+^' .�
_ С„
С% С�
�s
.�
,
А.
w� �
с' � �
<� 'r.�
�= О
<С` �-±
�
М
'С7
�
U
�
ы
G
С� �
С.)
G
,и
GK
�
�
� �
•� �
1®1
О Д� .4 +,,
�, � � � � � �
,�м� О �СЕ О
� О � G� 4� I
М
О .� � �
W
� � ti �
� �, � ® �
и
� w � � �� �
� tл � г� с� � о
� �" � ✓'1у � ;.� "�
v., '� �' р�
� � �' � т .Q �с� ы
� � � � � о о ,� �.
� � � �
� � � � � я я °о а,
о о �
`N � � М � " . � " . .� с � с `'�� Е�
'� и о� ✓С � s�. � c�i о� го, м д= о �гi �о о � со °,в
� � � � �tг. й F; й �i � �i ^ �, G
� c�i О � J� U г%1 V V1 г% С% V2 С% L�
�а �i �ч � ----
� _
�
а�
�
� i
G
(.,3
.Е
У
�
� t3 О
r` t`ц
w,�,�, С С�
., гС :..
О�°
ас
�
� `�
н
й г' ~
.;,. _.. с
C,q�i
с �
G r"
°
° � I 9
� �+: в..в
6У
�ь.� 3
� � 7
� �
� � �
� �' о у м
� � � � j
�
� !
...
°
� � �
� � _
� ----- -
�G
� � �
� �
.»� � ., с
� � � J �
N
� N � '.
� о д .�,
� "`' � v
® .w � �
� � � � �
� �� � � �
� �, "� ® � �
� �� � � О
� � � � �
� � � и и и
� � � � � �
•�, �
� � � � ° ° °
� N � _"
� �" � � �: � Г� W � '�, �
® "�' Ct � +- -г.+ ,«.� т ,�
�,,, � с� е�, ��`, � � � � � � � � °
� � � Гад G сс '-' cv � � cn d- �о о й �сi � и � со � �
� � о � � а � а � � � � � �
��� �'__- �------ А'° и р� гл Е� гл О rn С7
-.［汕
� �, � � о � � � � � � , , �
� � � И �
� � т М l� �
�
r.ц.г ч .:: 1 f` � �
�..� t ; � И ®1
гr
c�t �
U "':.i � � ец �
6� � � ��'�
.� `�'7
° �! .
U с�ц
�
�/~ I 1 1 1 1 1 1 1 1 1 1 1
�
tii
и �
у'гG.г у . ^ �.
Lf; .� ..N� .
_ •�" `.°i г/• �,' . .
L, \ GГ �
С-�� . �г r�q (`F � .
I.' .. 1 л• 1 1 1 1 1 1 1 1 1 1 1 1
I V �: `г
в в
I'. •73 ц
lвыt
I М 4/
а i�
� � v N
и. � � I
С
� ° N 1
� � �} I
��. �'1. 1 1 1 1 1 1 1 1 1 1 1 1
fiJ
I � � �i
�
Л �
` м 1
I ' f. •и. . ' �
"" „ц„• 1
_ 1'.'{
G � � � � �
� Д, � г.�г ц р �
�'к��"�, r'� ч�� N i
I-- - �--
^. { 1 1 1 1 1 1 1 1 1 1 1 1
� I •° � ���i I
� � ::+ С ", �-I
kw � N
� � �_��
� � � �
а s���
� � Ё : ..� rr i
ы � �
'� � I .-, i � 0 � � i i i � i � �
У � � И �
� � � М � �
v'и � � I �О � �
� �v � � � и �
� �о' � � �у � �
Оа tц� � � N
? � ':� I N М
� Ч � � � a �I,
� у л�' � ^ � �`
� � _1
+., �
й" tY "� ® � � ��
� � �
�� � � I �
v
й
� . � � '� и � й с�б
� � � пi О
� � �
� �' а � +� � � t,
� �v �, *' � 4. � � и
�'�" ;� •� р� � р ,ь,; сб � N
�' kTy �' С/� . . и � QJ �'' N � N сиб �"' Ш
� � �` I � 'Г3 � � N � U й у й :"
�у � � � ;л, с°б а> • D" и � .� "� сб � о
ш д:,
� � � � � и .У � ° � � � '�
п3 U
� s � Г�1 v , ° о а� •� � � � а� ° � :я а
� О �'i г`�„з -р 'г7 � c.pi 4.: w ' _ � о й � , �
'�ч сб Я • � т
� � �г � � сд � � � � � � � р • � � � �'' о Е�+ �I
-� � � �о � �оw х а�� � � �
у AF `�
.я �У �а
;? "
� в
и
� v
о fi
й °i
о v
� ..,,
г "`_
G
� ад
� �
у �
., ш
� `
� �
�
�, °
� �
о о
"G � s
�
о> й �
ш и �
С .�`� t�"`
и � о
Сг й '
v �1 С
С '�
� v гr
е� � О
� S С
N
Ср С
� � \
у � п
N °
ы ` �
"р И
� в �
о �
� ° �
� й °
= ' '�
С'1 с`Ti
°' ° ; о
° � �
�i о а-
а � ?.
�
s �, _
о ° �°.
� ;
� � о �
° � �
ы � �
� � Т'' С
б �
0. д О О
N
'ZS �, у an
р U G '
� ° �' `о
r _
а. О са
U � " у
ш у Ор
� й �
о � �
� ы � U
� v �
.о � � о �
у � - а.
"у � ` и
� G
� N и ° � �
� о � �
0> N r'� v �
� О ° � � ,о�,
4i • � �
а м' � � . �
4 и С' у = ° �
� '`� � �° � в
� � � � � � �
� �°�' � �
v~N., w� �w� с'л fi � �
ai � аТ ° U' Ci �
�? � S: й й � _�
�,j�' � ° �д
v � й .� �
д1 �.j й� � �
` � С� 4� ш ш К �
г�
ш tr
� �v' �, � ° � �
'�е�н �`V' .� �л fi � :?
�ду V о о 'п� �
р � � � � т а.
� G3 � у р � с
�
д
vi у и у � е�
О' Z у" г'ts й�
�, о � ; �, -- �
� '
��� �" � � �
� � U
.�. ,, .. .> ,,
�
:�
ц
1�
�.
�
����L
�-
��
Ip
�
�
�
�
� � ::
� V
CG �
I С' �
«., >;
I�: �
I
�-
гп;
с^.+ .��+
:3
ч.+
� ; ,--�
� � �
`: �
�
S� -с�`
�
� 1
�
�
� �
� G�
�, �_
� � ...
� �
•� � �' CG
'� �г Бт1 j �.
� � � i
� N � i л
� � � �
® .kг�„ � � I �;
� � � � �
�
� � � � с�
v � � � ' �� �
� � � � I�
� v � '�4 �
� �� � �
� �•� ® '�
� � � �
�� � i �
`�° � � и �
� �� �
� �� � � N м �i- и �U t� оа сТ О
�, ~
� � � � ,
Kenya Informal Settlement Improvement Project
Reports and Financial Statements
For thefinancial year ended June 30, 2021
APPPENDICES
i. Signed confirmations from beneficiaries in Transfers to Other Government Entities
ii. Bank Reconciliations statement as at 3 01h June 2021
iii. Board of Survey Report
iv. Special Deposit Account(s) reconciliation statement(s)
v. GOK IFMIS comparison Trial Balance
42
r
.4