Section 43 (1) of the Public Finance Management Act, 2012 requires that an Accounting Officer may reallocate funds from authorised use but may not reallocate funds where – (a) the funds are appropriated for transfer to another government entity or person; (b) the funds are appropriated for capital expenditure except to defray other capital expenditure; (c) the reallocation of funds is from wages to non-wages expenditure; or (d) the transfer of funds may result in contravention of fiscal responsibility principles.
The special audit, established that KUTRRH had utilized Kshs. 177,029,923.20 out of the Kshs. 526,500,000 received as GoK Covid Grant for Development. KUTRRH also had commitments of Kshs. 99,920,436.69. Review of the related payment vouchers revealed that the institution had reallocated Kshs. 12,388,797 to previous commitments made before COVID-19 Pandemic was declared in Kenya.