Office of HOPS meets PFMSCs to advance Transformative Push Towards Zero Fault Audit Status in Kenya's Public Service

Report on the Address by the Chief of Staff and Head of the Public Service at the Consultative Meeting with Public Finance Management Standing Committees (PFMSCs)

On Friday, 14th June 2024, the Chief of Staff and Head of the Public Service delivered a keynote address at a consultative meeting with the Public Finance Management Standing Committees (PFMSCs) of State Departments held at the Bomas of Kenya, Nairobi.

The Chief of Staff emphasised the collective goal of achieving a 100% zero fault audit status for all public entities in the financial year 2023/2024. He highlighted the day's discussions on the transformative potential of the Internal Audit Function to revolutionise the quality and efficiency of public services.

He noted that the event was a significant milestone in ongoing engagements orchestrated by his office to delineate the Administration’s expectations and fortify performance standards in Ministries, Departments, and Agencies. These efforts aim to foster optimal performance in the public service, with tangible improvements already seen in the quality of services provided to citizens.

He pointed out that the Internal Audit Function had been neglected and emerged as a weak link hindering the Government's endeavours to deliver premier services. Despite having forward-thinking audit laws, the problem lies in ignorance and deliberate avoidance of the law, perpetuating inefficiencies.

The Chief of Staff referenced the Constitution, 2010, the Public Finance Management Act, 2012, and the Public Finance Management Regulations, 2015, which envisioned a functioning government with vibrant and robust oversight mechanisms. These mechanisms are expected to ensure prudent and responsible use of public funds.

Drawing from his experience as Chair of the Audit Committee at the Judicial Service Commission, he stressed the pivotal role of the Internal Audit Function in upholding good governance, transparency, and accountability. He described it as a vigilant guardian against fraud and corruption and a catalyst for continuous improvement and organisational excellence.

The Chief of Staff underscored the need to elevate the prominence, effectiveness, and efficiency of the Internal Audit Function through established Public Finance Management Committees. He called for robust internal control mechanisms to prevent corruption and timely identification of audit queries.

He expressed satisfaction with the theme of the event: “Leading the final push towards 100% achievement of Zero Fault Audit Status by All Public Entities in the Financial Year 2023/2024.” He reminded all Ministries, Departments, and Agencies of the directive to avoid new audit queries in the financial year 2023/2024, and the requirement for Principal Secretaries to establish and operationalise Public Finance Management Standing Committees as per the PFM Regulations of 2015.

He noted the initial reports submitted by the Public Finance Management Standing Committees, commending their quality and detailed plans of action to achieve zero fault audit status. He expressed confidence that no State Department or Agency would have an unanticipated audit query in the financial year 2023/2024.

The Chief of Staff urged all spending units to use the remaining window of opportunity to rectify any issues raised by internal audits before submitting financial statements to the Office of the Auditor General. He stressed the importance of achieving 100% compliance with the Zero Fault Audit directive.

He called for a concerted effort to cultivate trust and credibility in all public entities, ensuring accountability and the responsible use of public resources. He urged members of the Public Finance Management Standing Committees to champion a culture of accountability, compliance, and continuous improvement within their departments, ensuring audit readiness and fostering collaboration across departments and agencies.

The Chief of Staff encouraged immediate action and unwavering diligence in the final push towards achieving zero fault audit status within the financial year 2023/2024. He advised the implementation of detailed plans of action, developing comprehensive checklists to identify risks, and documenting any anticipated audit queries beyond their control.

He closed by urging the civil servants to embrace the challenge with determination, recognising that their collective efforts are key to unlocking a future of prosperity and opportunity based on good governance, transparency, and accountability.