Complex IFMIS hierarchy aiding State in dismantling corruption cartels

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By Christine Muchira/Muchira

The Integrated Financial Management Information System, IFMIS, has made it possible for audit trails of transactions in both the National and County Governments, a factor saving the taxpayer money.

The complex structure deliberately designed to safeguard financial malpractice, makes it impossible for any procuring entity to approve a transaction through IFMIS and CBK’s Internet Banking unnoticed.

“IFMIS approval hierarchy ensures security, accountability, checks and balances and leaves audit trail at each point of action. The system provides audit trails of all financial transactions including details of persons who logged in, the time, the computer used and the action performed for each transaction,” said Jerome Ochieng, IFMIS Director.

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In the Counties, procurement of goods and services must be done according to a procurement plan loaded in the IFMIS system. On the basis of an approved and loaded procurement plan, a requisition is raised in the system by a requester, approved by an Authority to Incur Expenditure (AIE) holder.

This is followed by the Procurement officer’s auto creation of a Local Purchase/Service Order and its submission to the Chief Finance Officer (CFO) who approves and submits it to Head of Procurement.

Upon satisfaction, the head of procurement issues LSO or LPO to the supplier of goods or services who was sourced through competitive bidding.

Upon delivery of goods and services by the supplier, the inspection committee (where applicable) inspects goods which the procurement officer also receives physically and in the system.

At this point,  the approval hierarchy moves to Accounts section beginning with the invoicer who enters the invoice into the system and matches it with the purchase order, receipt and inspection/acceptance certificate.

The invoicer submits to Validator who confirms that matching was done correctly.

The validator then submits to 1st Approver (CFO) who approves and submits to 2nd Approver (Head of County Treasury) to make final approval and submit to Cashier who initiates payment and pushes it to Central Bank of Kenya’s ( CBK)  Internet Banking (IB) system.

Upon requisite IB approval at CBK, money is wired to the beneficiary’s bank account.

In the IFMIS and CBK’s IB system, the officer designated to validate or approve a transaction has three options whenever an approval request is submitted to them in the system.

The options are Approve, Reject or Ask for more information.

All the set protocols therefore mean that for a transaction to have gone through all the way to payment, respective designated officers made requisite approval/validation of the transaction for it to have moved to the next level.

“The system also retains information on the identities of all the officers involved in processing and approving the transactions from the point of requisition, validation, approval and payment including the beneficiary bank accounts into which the funds were paid,” said Mr Ochieng.

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