Ouko said the audit is also looking into the debts of the national government and those that were owned by defunct local authorities which were abolished on March 4.
The office of the Auditor-General began undertaking audit of counties on July 15 to ensure proper use of public funds.
Ouko said his office would demand for accountability and sound management of public resources both at the national and county levels.
“By reporting the results of audits to the County Assemblies, we shall hold the county governments to account for the way they use public resources, thereby safeguarding the interest of taxpayers,” he said.
This after governors complained they were facing challenges in balancing their county budgets because they were now being made to settle debts which had been incurred by the municipal councils.
The elected county heads want the national government to absorb the debts just like they took over machines and other assets which belonged to the defunct authorities.
Ouko also said that the audit would assist the County Governments to improve on performance and service delivery, as the audit reports would be the basis applied by the national government in disbursement of future funds.
“Let us look at the recommendations, in the positive sense of trying to move forward and trying to help where necessary in terms of capacity building for them to be able to access the funds in a more accountable manner,” the Auditor-General said.
The Transition Authority had in March indicated that all County Governments will inherit both the assets and liabilities of previous local authorities.
TA chairman Kinuthia Wamwangi said that all local authority workers will be absorbed by county governments once they begin operations.
Wamwangi explained that local government accounts would soon be closed and funds transferred to county units
The Auditor-General said the audit is part of an initiative by his office to be practical in the monitoring and use of public funds.
“We need to look at the Auditor-General in another context, it’s not just in the context of just assuring that there is fiscal accountability but there would also be managerial accountability throughout the year and that the resources are making a difference throughout the year to the ordinary person,” Ouko stated.